Complete Works. Henry Cabot Lodge
Life strongly urged the passage of a Limitation Bill, and, because of the popular feeling developed by the exposure of the improper practices of the companies, this bill was generally approved. Governor Hughes adopted the suggestion, such a bill was passed by the Legislature, and Governor Hughes signed it. This bill caused the three great New York companies to reduce markedly the volume of business they were doing; it threw a great many agents out of employment, and materially curtailed the foreign business of the companies—which business was bringing annually a considerable sum of money to this country for investment. In short, the experiment worked so badly that before Governor Hughes went out of office one of the very last bills he signed was one that permitted the life insurance companies to increase their business each year by an amount representing a certain percentage of the business they had previously done. This in practice, within a few years, practically annulled the Limitation Bill that had been previously passed. The experiment of limiting the size of business, of legislating against it merely because it was big, had been tried, and had failed so completely that the authors of the bill had themselves in effect repealed it. My action in refusing to try the experiment had been completely justified.
As a sequel to this incident I got Mr. Perkins to serve on the Palisade Park Commission. At the time I was taking active part in the effort to save the Palisades from vandalism and destruction by getting the States of New York and New Jersey jointly to include them in a public park. It is not easy to get a responsible and capable man of business to undertake such a task, which is unpaid, which calls on his part for an immense expenditure of time, money, and energy, which offers no reward of any kind, and which entails the certainty of abuse and misrepresentation. Mr. Perkins accepted the position, and has filled it for the last thirteen years, doing as disinterested, efficient, and useful a bit of public service as any man in the State has done throughout these thirteen years.
The case of most importance in which I clashed with Senator Platt related to a matter of fundamental governmental policy, and was the first step I ever took toward bringing big corporations under effective governmental control. In this case I had to fight the Democratic machine as well as the Republican machine, for Senator Hill and Senator Platt were equally opposed to my action, and the big corporation men, the big business men back of both of them, took precisely the same view of these matters without regard to their party feelings on other points. What I did convulsed people at that time, and marked the beginning of the effort, at least in the Eastern states, to make the great corporations really responsible to popular wish and governmental command. But we have gone so far past the stage in which we then were that now it seems well-nigh incredible that there should have been any opposition at all to what I at that time proposed.
The substitution of electric power for horse power in the street car lines of New York offered a fruitful chance for the most noxious type of dealing between business men and politicians. The franchises granted by New York were granted without any attempt to secure from the grantees returns, in the way of taxation or otherwise, for the value received. The fact that they were thus granted by improper favoritism, a favoritism which in many cases was unquestionably secured by downright bribery, led to all kinds of trouble. In return for the continuance of these improper favors to the corporations the politicians expected improper favors in the way of excessive campaign contributions, often contributed by the same corporation at the same time to two opposing parties. Before I became Governor a bill had been introduced into the New York Legislature to tax the franchises of these street railways. It affected a large number of corporations, but particularly those in New York and Buffalo. It had been suffered to slumber undisturbed, as none of the people in power dreamed of taking it seriously, and both the Republican and Democratic machines were hostile to it. Under the rules of the New York Legislature a bill could always be taken up out of its turn and passed if the Governor sent in a special emergency message on its behalf.
After I was elected Governor I had my attention directed to the franchise tax matter, looked into the subject, and came to the conclusion that it was a matter of plain decency and honesty that these companies should pay a tax on their franchises, inasmuch as they did nothing that could be considered as service rendered the public in lieu of a tax. This seemed to me so evidently the common-sense and decent thing to do that I was hardly prepared for the storm of protest and anger which my proposal aroused. Senator Platt and the other machine leaders did everything to get me to abandon my intention. As usual, I saw them, talked the matter all over with them, and did my best to convert them to my way of thinking. Senator Platt, I believe, was quite sincere in his opposition. He did not believe in popular rule, and he did believe that the big business men were entitled to have things their way. He profoundly distrusted the people—naturally enough, for the kind of human nature with which a boss comes in contact is not of an exalted type. He felt that anarchy would come if there was any interference with a system by which the people in mass were, under various necessary cloaks, controlled by the leaders in the political and business worlds. He wrote me a very strong letter of protest against my attitude, expressed in dignified, friendly, and temperate language, but using one word in a curious way. This was the word "altruistic." He stated in his letter that he had not objected to my being independent in politics, because he had been sure that I had the good of the party at heart, and meant to act fairly and honorably; but that he had been warned, before I became a candidate, by a number of his business friends that I was a dangerous man because I was "altruistic," and that he now feared that my conduct would justify the alarm thus expressed. I was interested in this, not only because Senator Platt was obviously sincere, but because of the way in which he used "altruistic" as a term of reproach, as if it was Communistic or Socialistic—the last being a word he did use to me when, as now and then happened, he thought that my proposals warranted fairly reckless vituperation.
Senator Platt's letter ran in part as follows:
"When the subject of your nomination was under consideration, there was one matter that gave me real anxiety. I think you will have no trouble in appreciating the fact that it was not the matter of your independence. I think we have got far enough along in our political acquaintance for you to see that my support in a convention does not imply subsequent 'demands,' nor any other relation that may not reasonably exist for the welfare of the party. . . . The thing that did bother me was this: I had heard from a good many sources that you were a little loose on the relations of capital and labor, on trusts and combinations, and, indeed, on those numerous questions which have recently arisen in politics affecting the security of earnings and the right of a man to run his own business in his own way, with due respect of course to the Ten Commandments and the Penal Code. Or, to get at it even more clearly, I understood from a number of business men, and among them many of your own personal friends, that you entertained various altruistic ideas, all very well in their way, but which before they could safely be put into law needed very profound consideration. . . . You have just adjourned a Legislature which created a good opinion throughout the State. I congratulate you heartily upon this fact because I sincerely believe, as everybody else does, that this good impression exists very largely as a result of your personal influence in the Legislative chambers. But at the last moment, and to my very great surprise, you did a thing which has caused the business community of New York to wonder how far the notions of Populism, as laid down in Kansas and Nebraska, have taken hold upon the Republican party of the State of New York."
In my answer I pointed out to the Senator that I had as Governor unhesitatingly acted, at Buffalo and elsewhere, to put down mobs, without regard to the fact that the professed leaders of labor furiously denounced me for so doing; but that I could no more tolerate wrong committed in the name of property than wrong committed against property. My letter ran in part as follows:
"I knew that you had just the feelings that you describe; that is, apart from my 'impulsiveness,' you felt that there was a justifiable anxiety among men of means, and especially men representing large corporate interests, lest I might feel too strongly on what you term the 'altruistic' side in matters of labor and capital and as regards the relations of the State to great corporations. . . . I know that when parties divide on such issues [as Bryanism] the tendency is to force everybody into one of two camps, and to throw out entirely men like myself, who are as strongly opposed to Populism in every stage as the greatest representative of corporate wealth, but who also feel strongly that many of these representatives of enormous corporate wealth have themselves been responsible for a portion of the conditions