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 Lewis-League Publishing Company 
 
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 This Book Will Be Of Special =|^ 
 Interest To 
 
 Friends of President Roosevelt, 
 
 Friends of Senator La Follett, 
 
 Friends of Colonel Bryan, 
 
 Friends of Mayor Tom. L. Johnson, 
 
 Friends of Hon. Thomas E. Watson, 
 i^The Illinois Manufacturers' Association, 
 5*. The Inter-State Commerce Commission, 
 
 The Board of Railroad Commissioners in every State, 
 
 Single Taxers, 
 
 Stockholders in the Pennsylvania Railroad, 
 
 Stockholders of the New York Central Railroad, 
 * Stockholders of the Standard Oil Company, 
 ;^ Stockholders of the United States Steel Corporation, 
 5' Stockholders of Swift & Company, 
 
 Stockholders of Armour & Company, 
 
 Stockholders of all National Banks, 
 
 All people engaged in mining gold or silver. 
 
 All wholesale and retail liquor dealers, 
 
 Friends and relatives of 140 Senators and Repre- 
 sentatives, 
 
 The Continuous Prosperity League of the United 
 States, 
 
 The Land Currency League of the United States, 
 
 The American Society of Equity of North America. 
 
 Questions analogous to the subject-matter of 
 this book will be discussed on the hustings by orators 
 of not less than six different political parties during 
 the summer and fall. 
 
 S89218
 
 The Curse of the Giants. 
 
 Enonnous Profits of the Steel Trust, the 
 Meat Trust, the Railroads and the 
 Banks, Reduced to Compre- 
 hensible Figures. 
 
 A Dearth of United States Money While the 
 Debts Increase by the Billions. 
 
 Railway Freight Rates and Railway Passen- 
 ger Rates Compared. 
 
 Reported Income and Reported Expenses of 
 
 the Pennsylvania Railroad and the New 
 
 York Central and Hudson River 
 
 Railroad Analyzed With Most 
 
 Astonishing Results. 
 
 Millions and Millions of Extortionate Profits 
 
 Make Billions and Billions 
 
 of Public Debts. 
 
 The Solution of the Saloon Problem in Few 
 
 Words. 
 
 Life Insurance Figures Com.pared With 
 United States Coinage.
 
 Copyrighted, 1908 
 
 by the 
 
 Lewis-League Publishing Company
 
 CONTENTS. 
 
 PAGE 
 
 Chapter I. — In Bondage 7 
 
 Chapter II. — Millions and Millions of 
 
 Profits 11 
 
 Chapter III.— Long Time Credits— 100 
 
 years; 150 years; 475 years and 500 
 
 years 20 
 
 Chapter IV. — Profits Hidden as Expenses 27 
 Chapter V. — Public Keports Intentionally 
 
 Incorrect 38 
 
 Chapter VI.— Get-Rich-Quick Profits ... 43 
 Chapter VII. — United States Money vs. 
 
 Bank Notes 54 
 
 Chapter VIII. — Conclusion 69 
 
 Political Reminiscences 72 
 
 Appendix A 95 
 
 Appendix B 114
 
 To the millions and millions of 
 American Boys and Girls, horn to 
 such conditions of weal or woe as 
 may he or have been bequeathed to 
 them hy their progenitors, this Book 
 is Dedicated.
 
 INTRODUCTORY. 
 
 ''Come let us reason together." It is tlie 
 purpose of the Railway Association to in- 
 crease their income by advancing freight 
 rates to the amount of 100 million to 200 
 million dollars per year. That is equivalent 
 to increasing the public debts from two 
 and one-half to five billions of dollars. The 
 alternative is a general reduction of wages; 
 a widening of the breach between capital and 
 labor, and consequently a general disturbance 
 in every branch of trade and commerce. 
 
 Is such a course necessary or wise? 
 
 At the minimum charge for moving freight 
 (2.95 mills per ton per mile), a single train 
 hauling 1,500 tons of freight from Milwau- 
 kee to New York, will ''earn" $4,710. After 
 paying wages of train crew, cost of fuel, 
 wear and tear of cars and all other trip ex- 
 penses, there still remains a margin of profit 
 sufficient to pay interest for an entire year 
 on one hundred thousand dollars of four per 
 cent railway bonds. Namely, $4,000. 
 
 An intelligent inquiry into the subject will 
 develop the fact that railway freight rates 
 and railway passenger rates should be re- 
 duced, not increased.
 
 The Curse of the Giants, 
 
 CHAPTER I. 
 
 IN BONDAGE. 
 
 Considering that vice, crime and general 
 depravity in high j^laces appear to be on the 
 increase, do the signs of the times indicate 
 that conditions and human environment will 
 grow better or worse during the next twenty- 
 five years? 
 
 Notwithstanding much that seems to war- 
 rant a different conckision, an intelligent 
 comiDrehension of the forces for good and 
 evil justify the expectation that conditions 
 infinitely more just, more equitable, and 
 generally harmonious, will prevail a quar- 
 ter of a century hence. MEANTIME 
 MUCH WILL BE GAINED BY A FULL 
 REALIZATION OF CONDITIONS AS 
 THEY ARE. 
 
 What is the one public question in which 
 all classes and conditions of people have a 
 personal and direct concern!
 
 8 THE CURSE OF THE GIANTS 
 
 The question of money and debt, involv- 
 ing as it necessarily does the subject of 
 taxes, interest, rent and profit. 
 
 Is the volume of money in circulation too 
 large or too small for legitimate purposes, 
 that is to say for the convenience of the 
 people as a medium of exchange? 
 
 Never in all the history of the Govern- 
 ment of the United States has there been 
 a sufficient supply of the medium of ex- 
 change in circulation. (More on this point 
 further on.) 
 
 Define public debts. 
 
 All bonds, national, state, municipal or 
 corporate, and all certificates of indebted- 
 ness on which the public are required to 
 pay interest or dividends, are public debts. 
 To all intents and purposes the capital 
 stock of railways and other corporations 
 are public debts as absolutely as are 
 Government bonds. (More on this point 
 further on.) 
 
 What is the sum total of the public in- 
 debtedness? 
 
 Not less than eighty thousand millions 
 of dollars. How much more no man 
 knoweth or can know. (More on this point 
 further on.)
 
 THE CURSE OF THE GIANTS 9 
 
 How much does this indebtedness cost the 
 people annually! 
 
 At five per cent, four billions of dollars ; 
 a sum larger by hundreds of millions of 
 dollars than the aggregate coin value of 
 all the gold, silver and copper coined at 
 all the mints of the United States since the 
 mints were established at the close of the 
 eighteenth century, 1792 ; a sum more than 
 one billion dollars greater than the bonded 
 debt of the United States at the close of 
 the war of the rebellion. 
 
 Are the public debts gradually being paid 
 off, year by year? 
 
 No. On the contrary the public debts 
 increase in volume rapidly, steadily and 
 relentlessly with each recurring year. 
 
 Are there no statutory or constitutional 
 enactments by virtue of which the public 
 debts can be confined within limits? 
 
 Human laws will not limit or prevent the 
 inevitable increase of the public debts. 
 They are destined to increase unto the end 
 of the age. A limitation of public debts is 
 quite generally written in state constitu- 
 tions it is true; but such limitations are 
 wholly inoperative. For instance, the con- 
 stitution of the State of New York (adopted 
 1894), decreed that the statutory laws of
 
 10 THE CURSE OF THE GIANTS 
 
 that commonwealth should not permit the 
 authorization of the state debt to exceed 
 a certain fixed limit. The state debt very 
 soon outgrew the limitations of the con- 
 stitution and consequently the creditor 
 classes, the bondholders, proposed an 
 amendment to the organic law, which 
 amendment was obligingly ratified by the 
 people at the general election November, 
 1905. Even before the proposed amend- 
 ment was submitted to the people, how- 
 ever, the legislature had authorized an in- 
 crease of the state debt for a single item 
 (the improvement of highways), on which 
 debt the minimum of interest will exceed 
 two hundred and twenty-six millions of 
 dollars. (See Assemblv Document, num- 
 ber 37, N. Y., 1906.) 
 
 Assuming (if such assumption is con- 
 sidered rational), that conditions relating to 
 business, commerce, politics and finances will 
 continue the next ten years as tranquil as 
 during the last decade, about what will be the 
 aggregate of the public debts at the expira- 
 tion of that period? 
 
 Not less than one hundred and thirty-one 
 billion, ninety-four million, five hundred 
 and sixty-eight thousand and three hundred 
 and forty-three dollars. 
 
 How is that conclusion reached?
 
 THE CURSE OF THE GIANTS U 
 
 Very simply. It is the present minimum 
 of indebtedness as above stated, plus in- 
 terest and dividends compounded semi-an- 
 nually at 5%. Any bright school boy or 
 girl can readily make the computation. 
 
 CHAPTER II. 
 
 MILLIONS OF PROFIT. 
 
 "What are the profits of Swift & Company, 
 the great Chicago meat packers? 
 
 Probably more than two hundred thou- 
 sand dollars every day that the sun rises 
 and sets. There are no accurate and reli- 
 able sources of information accessible to 
 the public however which indicate the 
 actual figures. 
 
 In the absence of specific data how is it 
 estimated that the profits of Swift & Com- 
 pany are so large? 
 
 In the absence of specific data, any esti- 
 mate would be mere guess work of course, 
 yet nevertheless, an estimate will at least 
 help to form a more intelligent opinion of 
 the enormous profits which this one arm 
 of the giant meat trust are accumulating 
 every day in the year from the dire neces- 
 sities of the people without loss of time for 
 Sundays and holidays. Swift & Company
 
 12 THE CURSE OF THE GIANTS 
 
 employ a great many men, women and 
 children. How many is not known to the 
 author of this work. Many of them are 
 paid 15 cents an hour, and some less. Esti- 
 mate the wages paid to each man, 
 woman and child during the year at $1,000 
 and the number continuously employed the 
 year round at sixteen thousand. Estimate 
 the amount necessary to keep the plant in 
 repair at one million dollars for the year. 
 All other expenses we will estimate at $30,- 
 000 for each one of the 365 days in the 
 year. If the total yearly expenses are not 
 more than the above estimate; indeed IF 
 THEY ARE NOT MORE THAN 
 DOUBLE THIS ESTIMATE, yet a few 
 millions more mav be added, and if their 
 annual sales ARE NOT LESS than they 
 boasted they were some ten years ago, then 
 there remains a margin exceeding $315,000 
 for every day in the year to be distributed 
 as interest on bonds and dividends on 
 stock, while the weekly profits approxi- 
 mate two and a quarter millions of dol- 
 lars. Any bright ten year old school child 
 can verify the calculation. Some years 
 ago Swift & Company publicly advertised 
 that their annual sales were $175,000,000. 
 It is presumed that their sales are greater 
 at present. They purchase live stock at 
 the lowest market rates. The hair, hide, 
 horns, hoofs, blood, bones and meat are all
 
 THE CURSE OF THE GIANTS 13 
 
 utilized and converted into merchantable 
 products. Ordinarily well equipped manu- 
 facturers without the gTeat modern facil- 
 ities for economic production and the sav- 
 ing of waste enjoyed by Swift & Company 
 frequently make from 75 to 100 per cent 
 profit. 
 
 Engaged in any legitimate business or hon- 
 orable industry, how many years is required 
 for a farmer, a merchant, mechanic or pro- 
 fessional man to accumulate one million dol- 
 lars over and above necessary expenses? 
 
 If he accumulates at the rate of $20,000 
 a year fifty years ; if $50,000 a year twenty 
 years. 
 
 Granting that the profits of Swift & Com- 
 pany may exceed a quarter of a million daily, 
 considering the indisputable fact that the 
 business is honorable and the profits legiti- 
 mate, how do the people of the commonwealth 
 suffer as a conseciuence? 
 
 In the simple fact that under present 
 financial conditions the enormous profit 
 must necessarily be converted into inter- 
 est bearing securities ; public debts. Com- 
 petition has been destroyed and consequent- 
 ly the inevitable trend of society toward a 
 condition of bondholders and bond-serv- 
 ants is thus accelerated. 
 
 -1
 
 14 THE CURSE OF THE GIANTS 
 
 lUustate further how corporate profits are 
 converted into public debts. 
 
 The aggregate yearly profits of six cor- 
 porations, namely, the Pennsylvania Kail- 
 road Company, the New York Central and 
 Hudson River Eailroad Company, the 
 United States Steel Corporation, The 
 Standard Oil Company, Armour & Com- 
 pany and Swift & Company approximate 
 five hundred millions of dollars. These 
 profits are the daily aggregate collections 
 of the circulating medium or medium of 
 exchange. In order to di'aw interest and 
 dividends this aggregation, perhaps a bil- 
 lion dollars in the short space of two years, 
 must be converted into certificates of in- 
 debtedness, namely, stocks, bands and 
 mortgages. 
 
 "What are the profits of the Standard Oil 
 Company? 
 
 One hundred and fourteen thousand, 
 two hundred and sixty-six dollars and 
 thirty-three cents daily, Sundays and holi- 
 days included. In other words, the profits 
 divided among the stockholders of the 
 Standard Oil Company for the seven years 
 beginning with 1900, and ending with 1906, 
 were $292,064,751, being 297 per centum 
 of the capital stock of the Company which 
 is (or was), $98,338,300. The average an- 
 nual dividends were 42.42 per centum of
 
 THE CURSE OF THE GIANTS 15 
 
 the capital. Every sixty seconds of time, 
 night and day, which came and went dur- 
 ing the years above specified, the profits 
 averaged seventy-nine dollars thirty-five 
 cents and two mills. Counting business 
 days only, and allowing ten hours as a busi- 
 ness day, and three hundred business days 
 to the year, the average profit divided 
 among the stockliolders of the Standard 
 Oil Company is 231 dollars seventy-nine 
 and two-third cents a minute. 
 
 What were the profits of the Pennsylvania 
 Railroad Company for 1906? 
 
 Approximately three hundred thousand 
 dollars a day. Exactly $299,699.26 per day, 
 Sundays and holidays included, according 
 to semi-public official reports. Multiply 
 this sum by 365, and you have the amount 
 of the profits for the year, namely, $109,- 
 390,232.82. 
 
 What were the profits of the United States 
 Steel Corporation for 1906? 
 
 Four hundred and twenty-nine thousand, 
 ninety-three dollars and forty-five cents a 
 day. By multiplying these figures by 365 
 the profits for the year are exhibited, name- 
 ly $156,619,111. 
 
 What were the profits of the United States 
 Steel Corporation for the three months end- 
 ing June 30, 1907?
 
 16 THE CURSE OF THE GIANTS 
 
 More than half a million dollars each 
 day. To be exact, $500,040.71. Multiplied 
 by 91, the number of days in the quarter, 
 we find the total amount of profit to be 
 $45,503,704.61. 
 
 What were the profits of the United States 
 Steel Corporation for the quarter ending 
 September 30, 1907? 
 $45,804,285. 
 
 How much of the circulating medium 
 (cash) does the United States Steel Corpo- 
 ration admit as having on hand just prior to 
 the panic of 1907, which panic is said to be 
 the result of ^'a monetary stringency"? 
 On October 1, 1907, the United States 
 Steel Corporation admits that it had on 
 hand ''cash in bank" nearly seventy-six 
 million dollars ($75,973,000.00). 
 
 Are bonds issued by railroad corporations 
 
 public debts'? 
 
 Certainly. In the most absolute, prac- 
 tical and baneful sense of the term. 
 
 Can that assertion be demonstrated in a 
 
 single instance? 
 
 It is demonstrated in the financial his- 
 tory of all railroad corporations. For in- 
 stance, the New York Central and Hudson 
 River Railroad Company was organized
 
 THE CURSE OF THE GIANTS 17 
 
 November 1, 1869. In addition to its cap- 
 ital stock, the corporation started out witli 
 a "bonded debt" of less than fourteen 
 million dollars. During the next succeed- 
 ing thirty years the cash profits divided 
 among the stockholders averaged more 
 than sixteen thousand dollars for every day 
 on which the sun rose and set, every 
 period of 24 hours, aggregating more than 
 175 millions of dollars. The profits divid- 
 ed among the stockholders the first thirty 
 months were more than sufficient to pay 
 off the entire original "bonded debt," so 
 called. 
 
 During this period of thirty years when 
 175 millions were distributed among the 
 stockholders was the bonded debt of less 
 than fourteen millions, or any portion there- 
 of, paid off? 
 
 No. On the contrary, the debt was in- 
 creased as the profits increased, so that 
 during the same period that the stock- 
 holders pocketed 175 millions of dividends 
 they issued about 86 millions more bonds 
 and called their "bonded debt" at the be- 
 ginning of the twentieth century 100 mil- 
 lions. 
 
 Then, from the stockholders' viewpoint, 
 the bonds of this particular corporation, the 
 New York Central and Hudson Eiver Eail-
 
 18 THE CURSE OF THE GIANTS 
 
 road, the bonds of tlie Company are assets 
 rather than liabilities? 
 
 Precisely so. Generally speaking, the 
 stockholders are the bondholders, and the 
 bondholders are the stockholders, and the 
 public, the people, are taxed by excessive 
 rates of freight and fare sufficient to pay 
 the dividends on the stocks and the interest 
 on the bonds at the same time. 
 
 This is the explanation, then, why the so- 
 called "bonded indebtedness" continues to 
 increase, always keeping pace with the 
 profits, be the profits never so great? 
 
 That is the explanation. It is manifest 
 that if the stockholders were paying inter- 
 est on bonds out of their own pockets and 
 into the pockets of other people, they 
 would clear off the debts and save the in- 
 terest money. 
 
 Has the so-called "bonded debt" of the 
 New York Central and Hudson Eiver Eail- 
 road Company been further increased dur- 
 ing the opening years of the twentieth cen- 
 tury'? 
 
 Yes. In their public statement for the 
 fiscal year ending June 30, 1905, the total 
 "bonded debt" is stated to be 230 million, 
 414 thousand and 845 dollars.
 
 THE CURSE OF THE GIANTS 19 
 
 Is the capital stock of this corporation as 
 well as the bonds being constantly increased 
 also? 
 
 Ves. The capital stock was increased 
 nearly 18 million dollars within a year or 
 two prior to the annual meeting in 1906, 
 to-wit, from something over 132 millions 
 to 150 millions, and at the annual meeting 
 of the stockholders April 18, 1906, a still 
 further increase of the capital from 150 
 millions to 250 millions was ordered. 
 
 How much are the annual net profits of 
 this corporation? 
 
 According to their latest official report, 
 more than sufficient to pay eight per cent 
 annually on its combined capital and au- 
 thorized debt of 400 millions of dollars. 
 
 Nevertheless, will not these millions and 
 hundreds of millions of bonds have to be 
 paid at some time? 
 
 It is the intention that they shall be paid 
 MANY TIMES OVER IN ANNUAL 
 INSTALLMENTS OF INTEREST. IT 
 IS NOT THE EXPECTATION, ^VISH 
 OR INTENTION THAT THEY WILL 
 EVER BE PAID IN ANY OTHER 
 MANNER. They are to all intents and 
 purposes a blanket mortgage on the peo- 
 ple, to be paid by the public as above
 
 20 THE CURSE OF THE GIANTS 
 
 Stated, AND NOT OTHERWISE. The 
 original ^'bonded debt" of the New York 
 Central and Hudson River Railroad, 14 
 millions, has already been paid more than 
 twice over in semi-annual interest install- 
 ments since the company was organized 
 nearly 40 years ago, and yet this same 
 ''debt," so-called, forms a portion of the 
 230 millions and more on which it is the 
 expectation of the stockholders and the 
 bondholders that interest shall be collect- 
 ed from the people semi-annually for the 
 next century. As we, and our fathers be- 
 fore us, have been taxed to pay interest on 
 these bonds, so it is the intention and ex- 
 pectation to continue to tax the present 
 generation, our children and our chil- 
 dren's children, perpetually. And to this 
 end the bonds of the New York Central 
 and Hudson River Railroad Company have 
 been "converted" or ''refunded" into 
 bonds not due and payable in less than 
 100 years from date. 
 
 CHAPTER III. 
 
 long credits — 100 yeaes ; 150 years; 475 
 years; 500 years. 
 
 Is it customary for corporations to issue 
 bonds for such long terms as an hundred 
 years?
 
 THE CURSE OF THE GIANTS 21 
 
 Yes. Bonds issued for periods of 100 
 years and longer i^eriods, are listed on the 
 New York Stock Exchange the aggregate 
 value of which exceeds one billion and five 
 hundred millions of dollars. 
 
 Are bonds issued then for longer terms 
 than 100 years? 
 
 Yes, for much longer terms. 
 
 Name one or more corporations which have 
 issued bonds fixing the date of maturity more 
 than 100 years in the future. 
 
 Bonds of the Northern Pacific Eailway 
 Company to the amount of 56 million dol- 
 lars, payable 150 years after date, namely, 
 in the year 2047, bearing S^o interest, are 
 outstanding; the bonds of the West Shore 
 Eailroad (fifty millions) were issued in 
 1886 for a joeriod of 475 years, maturing 
 in the year 2361 ; and the Commercial Cable 
 Company of New York issued bonds in 
 1897 to the amount of several millions of 
 dollars, payable 500 years after date, 
 namely, in the year 2397. 
 
 What was the total income of seven Amer- 
 ican life insurance companies during the year 
 19071 
 
 Over 450 million dollars. ($451,463,232.) 
 
 Does the total annual coinage of United 
 States money at all the mints of the United
 
 22 THE CURSE OF THE GIANTS 
 
 States equal the annual income of all the life 
 insurance companies? 
 
 There has never been a single year (ex- 
 cepting only the year 1904) when the ag- 
 gregate value of all the gold, silver and 
 copper coined at all the mints of the 
 United States was sufficient to pay one-half 
 of the total income of these seven life in- 
 surance companies for the year 1907. The 
 income of these seven life insurance com- 
 panies for the year 1907 was $17,980,695 
 greater than the total face value of all the 
 gold, silver and copper coined at all the 
 mints, from 1792 up to and including the 
 year 1855 (63 years). Since the mints were 
 established in 1792, there has been only six 
 years when the aggregate coinage at the 
 several mints reached the sum of $100,000,- 
 000, and only one year (1904) when the to- 
 tal value reached $200,000,000. 
 
 What were the total disbursements of the 
 seven American life insurance companies 
 above mentioned during the same year, 1907 ? 
 
 About 300 millions. ($300,641,817.) 
 
 And the difference between the total in- 
 come and the total expenditures, namely, 150 
 million dollars, how are the people affected 
 by that? 
 
 The difference of 150 millions j that goes
 
 THE CURSE OF THE GIANTS 23 
 
 to swell the assets. In other words, it is 
 converted into public debts, stocks, bonds, 
 mortgages, etc., and at 57© costs the people 
 seven and one-half millions of dollars and 
 more each year. 
 
 Of the total public debts on which the peo- 
 ple are taxed perpetually to pay interest, 
 dividends, rent and profit, how much have 
 been accumiulated by these same seven life 
 insurance companies? In other words, what 
 was the sum total of their assets at the close 
 of business, December 31, 1907? 
 
 Over two thousand millions of dollars. 
 ($2,154,011,608.) 
 
 Having learned that the sum total of the 
 public debts is ''not less than eighty thou- 
 sand millions of dollars," does this language 
 fully express the tremendous import and sig- 
 nificance of financial conditions that NOAV 
 confront the American people! 
 
 No. The sum total of the public debts 
 is much greater than 80 billions of dollars. 
 The people of the United States are pay- 
 ing interest, dividends and rents on pub- 
 lic debts, various forms of investments, ag- 
 gregating not less than 100 billions of dol- 
 lars. As relentlessly as interest on mort- 
 gages, this quite incomprehensible sum of
 
 24 THE CURSE OF THE GIANTS 
 
 debt grows larger and larger with each 
 recurring year. The minimum of incre- 
 ment is not less than five billions each year. 
 
 Is it a common occurrence for corporations 
 to increase their stock and bonds as illus- 
 trated in the case of the New York Central 
 Company? 
 
 Yes. During the past ten years the 
 Pennsylvania Eailroad more than doubled 
 its capital, having increased the same from 
 $129,301,550 to $307,627,700 besides issuing 
 millions upon millions of additional bonds. 
 March 12, 1907, a still further issue of 100 
 millions of bonds and also 100 millions of 
 stock was voted. 
 
 Can other similar cases be cited? 
 
 A large book indeed would be required 
 to record all the various operations of 
 stock-waiering and other ways of increas- 
 ing public debts for the financial benefit of 
 the creditor classes, the bondholders. In 
 December, '06, the Pullmtin Company in- 
 creased its capital from 74 millions to 100 
 millions by the payment of "a 36% stock 
 dividend." The same month sixty millions 
 of ''new stock" was voted by the Great 
 Northern Company. About the same time 
 the Wabash Company "converted" about 
 136 millions of "funded debt" into "a new 
 issue" of 200 millions of fifty year bonds^
 
 THE CURSE OF THE GIANTS 25 
 
 and voted to increase their certificates of 
 indebtednes of capital stock from 102 mil- 
 lions to an even 200 millions. These cases 
 will serve for purposes of illustration. 
 
 Mention one or two more recent illustra- 
 tions of the increase of the public debts. 
 
 A press dispatch dated May 28, 1908, re- 
 lates the filing of a ''mortgage" for 300 
 million dollars by the Chicago, Burlington 
 and Quincy Railroad Company. The an- 
 nual interest on that sum at 5% will be 
 fifteen million dollars. In the press dis- 
 patch referred to it is stated that 172 mil- 
 lions is to be used in ''refunding indebted- 
 ness" which means indefinitely extending 
 the time on which the public will be re- 
 quired to pay the annual interest charges, 
 and ''the remainder will be spread over a 
 period of fifty years." It has also been 
 recently announced that the Standard Oil 
 Company will increase its capital from $98,- 
 338,300 to half a billion dollars. 
 
 Are there any official records from which 
 
 an accurate knowledge of the volume of public 
 
 debts may be obtained? 
 
 No. For several obvious reasons. The 
 ■ debts increase so rapidly that records must 
 necessarily be incomplete; and, moreover, 
 it is considered indiscreet by the bond- 
 holding classes to furnish information on
 
 26 THE CURSE OF THE GIANTS 
 
 the subject. The aggregation of stocks, 
 bonds, mortgages and ''other certificates 
 of indebtedness" EXCEEDS ONE HUN- 
 DEED THOUSAND MILLIONS OF DOL- 
 LARS AND THE AGGREGATION AC- 
 CELERATES MORE RAPIDLY THAN 
 AT 5% PER ANNUM. 
 
 If it is considered indiscreet to publish the 
 facts relating to the public debts, is it, con- 
 versely, considered discreet to misinform or 
 mislead the people concerning the actual con- 
 dition of affairs ? 
 
 Yes. It is considered shrewd ''business 
 policy" to deceive the people systematical- 
 ly in matters relating to the volume of pub- 
 lic debts and the enormous profits accruing 
 from certain lines of jDublic business such 
 as the railroad business, banking, telegraph 
 business, the telephone business and certain 
 other lines that might be mentioned. As- 
 tounding as the affirmation will appear to 
 many people, it is nevertheless a fact that 
 the people have been burdened with debts 
 which they will never be able to pay and 
 that without either their knowledge or con- 
 sent. 
 
 What incident in the history of American 
 finances may be cited as at least prima facie 
 evidence that the bondholding classes have
 
 THE CURSE OF THE GIANTS 27 
 
 established the doctrine that the public debts 
 must be made perpetual; must never be paid? 
 
 In July, 1865, just at the close of the 
 war of the rebellion, Jay Cook, the great 
 war financier, fiscal agent of the Govern- 
 ment, and general spokesman for the na- 
 tional bank interests, issued a pamphlet in 
 which that doctrine was proclaimed and de- 
 fended. He said: ''We lay down the 
 proposition that our national debt, MADE 
 PEKMANENT, and rightly managed, 
 WILL BE A NATIONAL BLESSING. 
 The funded debt of the United States is 
 the ADDITION OF 3,000 millions of dol- 
 lars to the previously realized wealth of 
 the nation. It is 3,000 millions added to 
 the available actual capital. TO PAY 
 THIS DEBT WOULD BE TO EXTIN- 
 GUISH THIS CAPITAL AND LOSE 
 THIS WEALTH. 
 
 CHAPTER IV. 
 
 PKOFITS HIDDEN" AS EXPENSE. 
 
 How do corporations habitually deceive 
 the people concerning profits? 
 
 By distributing millions of profits dis- 
 guised as expenses. 
 
 Illustrate this last question and answer by 
 citing a single case in point.
 
 28 THE CURSE OF THE GIANTS 
 
 Many years ago, when finances were 
 less * 'frenzied" than in this generation, 
 the Erie Railroad Company paid its pres- 
 ident in one lump sum $150,000 as an 
 advance payment on account of salary at 
 the rate of $15,000 per year for ten years. 
 The balance ($25,000 per year) was paid 
 in the usual manner, namely, in regular 
 equal installments periodically. Thus in 
 one item $150,000 in profit, a sum suffi- 
 cient to pay a considerable dividend on 
 the stock at that time, was distributed as 
 ''operating expenses" and the indisput- 
 able claim set up that operating expenses 
 were heavy and consequently dividends 
 were necessarily small. Other similar 
 transactions might have been and prob- 
 ably were resorted to. In this day and 
 generation similar practices for similar 
 purposes on a much more magnificent 
 scale, however, are common occurrences. 
 For instance, it is a common custom to 
 vote favored stockholders (officials) enor- 
 mous salaries, and, as salaries are charged 
 to operating expenses, the large salaries 
 are hidden in the expense account, and the 
 decreased dividends always furnish a con- 
 venient pretext for increased freight and 
 passenger rates. 
 
 Can the same idea be illustrated by other 
 modern operations similar in principle?
 
 THE CURSE OF THE GIANTS 29 
 
 Yes. In New York state railroad com- 
 panies have been required to make de- 
 tailed annual reports of income and oper- 
 ating expenses in forms prescribed by law 
 for more than half a century. A critical 
 analysis of these annual reports shows as- 
 tonishingly exorbitant expenses for print- 
 ing and stationery, salaries and wages, re- 
 pairs to track and roadbed, engines, cars 
 and various other items. Roads equipped 
 with every facility for keeping their roll- 
 ing stock in good repair with the least ex- 
 penditure of money will report enormous 
 amounts as paid for wages to men em- 
 ployed in roundhouses. In addition to 
 such wages, the same roads will report 
 hundreds of thousands of dollars for re- 
 pairs to engines and cars. Not infrequent- 
 ly the sums reported as paid for repairs 
 to engines average above $2,500 a year for 
 every engine owned or leased over and 
 above wages reported as having been paid 
 to men employed in roundhouses. 
 
 In the early history of railroads, what 
 legal proviso was established that the peo- 
 ple might participate in the profits? 
 
 By the organic law of Illinois, the Illi- 
 nois Central Railroad Company was and 
 now is required to pay 7 per cent of its 
 gross income into the state treasury. In
 
 30 THE CURSE OF THE GIANTS 
 
 those days 10 per cent was considered 
 ample profit, and in New York state the 
 railroad law originally provided that all 
 profit in excess of 10 per cent shonld re- 
 vert to the state treasury. 
 
 Have the people in these two states real- 
 ized any substantial advantage from the 
 legal requirements mentioned? 
 
 It is hard to defeat a plain, specific, con- 
 stitutional mandate, and accordingly the 
 Illinois Central has paid many millions of 
 dollars into the Illinois state treasury 
 pursuant to the state constitution; yet, 
 nevertheless, it is claimed that the state 
 has been defrauded of many millions dur- 
 ing the same time (58 years) by reason of 
 a system of fraudulent accounting. The 
 treasury of the State of New York never 
 realized as much as a single penny from its 
 statutory law, the railroads having had 
 little difficult}^ in distributing many mil- 
 lions of profits disguised as expenses. 
 
 What ratio or proportion does the net in- 
 come of the United States Steel Corporation 
 bear to the total income of the bondholding 
 investing classes from the entire aggregation 
 of public debts? 
 
 As we have learned that the total public 
 debts are an unknown quantity, it is mani- 
 festly impossible to answer that question
 
 THE CUKSE OF THE GIANTS 31 
 
 with precision. The net income of the 
 United States Steel Corporation for 1906 
 was more than sufficient to pay 5 per cent 
 interest on three thousand millions of dol- 
 lars. If the annual payment of interest 
 and dividends on all stocks and bonds of 
 all the railways, all national, state, county, 
 city, town, village and school district 
 bonds, the stocks and bonds of national 
 banks and insurance companies, plus all 
 real estate mortgages, all industrial stocks 
 and bonds and the various other forms of 
 debt paid in interest, rent, profit and 
 taxes, is equal to forty times the net in- 
 come of the United States Steel Corpora- 
 tion for 1906, then it is clear that the 
 people of the United States are paying 
 what is equivalent to the interest on an 
 aggregation of investments (debts) in ex- 
 cess of 125 billions of dollars. 
 
 Does the income from interest and divi- 
 dends on the present debts create more 
 debt? 
 
 Yes. We have learned that a single 
 corporation accumulates a half million 
 dollars daily in net profit. More stocks and 
 more bonds have to be created to reinvest 
 these accumulated millions. The millions 
 and billions accumulate perpetually. Divi- 
 dends on stocks and interest on bonds ne- 
 cessitate a demand for more bonds, hence
 
 32 THE CURSE OF THE GIANTS 
 
 more bonds must be printed to satisfy the 
 endless demand. Ergo, public debts will 
 increase under present conditions many 
 billions of dollars annually. 
 
 "What further evidence may be cited to 
 prove that public debts are increasing at the 
 rate of 5 per cent annually, or even at a 
 greater rate"? 
 
 The Secretary of Internal Affairs of the 
 State of Pennsylvania reports under date 
 of January 15, 1907, that the total capital- 
 ization of railroad companies reporting to 
 that state has increased from 1887 to 1906 
 (19 years) ''nearly three thousand mil- 
 lions of dollars," to-wit, from $1,559,019,- 
 521 in 1887 to $4,304,880,297 in 1906, an 
 increase exceeding 9 per cent annually. 
 
 What may be said concerning the profits 
 accruing from the business of transporting 
 freight and passengers by railway? 
 
 The profits from railway transporta- 
 tion are much greater than is generally 
 known or realized. 
 
 Can railway companies carry passengers 
 at the rate of two cents a mile at a fair 
 profit ? 
 
 Yes; at even a lesser rate. 
 
 Can railway companies carry passengers
 
 THE CURSE OF THE GIANTS 33 
 
 at one cent a mile and still make a fair profi\ 
 at that rate? 
 
 There is not the shadow of a doubt that 
 railways equipped as all first-class railways 
 are equipped, can carry passengers at a 
 rate even less than one cent a mile at a 
 fair rate of profit. 
 
 State in few words what good reason can 
 be advanced justifying that conclusion. 
 
 Railways are moving freight a distance 
 of 1,065 miles at the rate of $3.14 a ton. 
 They will carry 30 tons of flour 1,065 miles 
 for $94.20. Two hundred passengers 
 weighing an average of 300 pounds each, 
 including baggage, equals 30 tons. One 
 passenger, 300 pounds, carried 1,000 miles 
 at one cent a mile, pays the railroad $10 
 and 200 passengers at the same rate, one 
 cent a mile, pays the railroads $2,000, or 
 more than twenty times the rate they 
 charge for moving flour. (More on this 
 point further on.) 
 
 What is the minimum rate for transport- 
 ing freight by rail? 
 
 There is no minimum rate. For special 
 reasons freight is sometimes carried^ for 
 specially influential persons at specially 
 low rates, just as judges and law makers 
 frequently ride in palace cars scott free.
 
 34 THE CURSE OF THE GIANTS 
 
 Can freight be moved from New York to 
 Buffalo at $5 a ton returning to the trans- 
 portation companies a fair profit? 
 
 Yes. Four thousand tons of freight may 
 be moved from New York to Buffalo in one 
 train. At $5 per ton, the charge therefor 
 would be $20,000. The cost for wages of 
 train crew, fuel and other expenses inci- 
 dental to the trip would be considerably 
 less than $1,000, leaving more than $19,000 
 to pay dividends, wear and tear, taxes and 
 salaries of officers. 
 
 How much does the New York Central and 
 Hudson River Railroad Company receive for 
 carrying the United States mails from New 
 York to Buffalo? 
 
 The Government pays the New York 
 Central and Hudson River Railroad Com- 
 pany $31.73 a ton for hauling mail between 
 the cities of Buffalo and New York. The 
 cost of fuel, wages and other trip expenses 
 for hauling a ton of mail or freight be- 
 tween the two cities is less than 25 cents. 
 
 If a ton of freight, which must needs be 
 loaded and unloaded, can be moved a dis- 
 tance of 441 miles for two dollars at a good 
 profit, is the charge less than $2 a ton for 
 carrying passengers the same distance, con-
 
 THE CURSE OF THE GIANTS 35 
 
 sidering that passengers get on and off the 
 cars without trouble or expense to the trans- 
 portation company? 
 
 No. A passenger weighing 150 pounds 
 is charged $9.25 for riding from New York 
 to Buffalo, which is at the rate of $123.33 
 a ton. A passenger weighing only 100 
 pounds is charged the same rate which is 
 at the rate of nine and one-fourth cents 
 a pound or $185 a ton. If the passenger 
 wishes to ride in a palace car the rate is 
 much more per ton. Whether the passen- 
 ger has baggage to carry or not makes no 
 difference except that baggage in excess 
 of 150 pounds is charged extra rates. 
 
 What is the ton rate for carrying passen- 
 gers over the Pennsylvania road between 
 Chicago and Pittsburg! 
 
 One hundred and forty dollars in ordi- 
 nary passenger coaches; more than that 
 for riding in palace cars. 
 
 Wliat is the carload rate for moving flour 
 from Milwaukee to New York? 
 
 Fifteen and seven-tenths cents per hun- 
 dred pounds, or $3.14 per ton. 
 
 If the railroads can carry 100 pounds of 
 flour 1,065 miles for 16 cents, will they carry 
 a passenger weighing 100 pounds who walks
 
 36 THE CURSE OF THE GIANTS 
 
 on and off the cars at no expense to the rail- 
 roads, for the same amount (16 cts.), or less? 
 
 No. The ordinary passenger fare from 
 Milwaukee to New York is $21.70. If the 
 passenger prefers a parlor car, the rate 
 is $27.05. 
 
 If 100 persons weighing 300 pounds each, 
 including baggage (15 tons all told), were to 
 travel from Milwaukee to New York in two 
 cars over the Pennsylvania lines, each pay- 
 ing the full parlor car rate ($27.05), what 
 would be the transportation company's in- 
 come, the trip expenses and the jDrofit? 
 
 The income would be $2,705; expenses 
 for wages of conductors, engineers, brake- 
 men, fuel, and all other incidental trip ex- 
 penses would not exceed $200 leaving $2,- 
 500 to pay dividends, wear and tear, taxes 
 and salaries of officers. 
 
 How much flour will the railroads carry 
 from Milwaukee to New York for the same 
 money they charge for carrying 15 tons of 
 passengers the same distance as above cal- 
 culated? 
 
 Eight hundred and sixty-one tons. 
 
 At the same rate charged for moving grain 
 or grain product, from Milwaukee to New 
 York, namely $3.14 per ton of 2,000 pounds,
 
 THE CURSE OF THE GIANTS 37 
 
 what would be the charge for carrying a pass- 
 enger weighing 200 pounds from New York 
 to San Francisco! 
 
 Eating the distance by rail to be 3,258 
 miles, the charge would be less than 97 
 cents. (96.111 cents.) 
 
 From all the foregoing then, it appears that 
 40 tons of freight is carried a given distance 
 frequently for less money than is charged 
 for carrying a ton of passengers the same 
 distance. Is this conclusion correct? 
 
 Yes; this fact will become more clear to 
 the student the more the subject is studied. 
 Moreover the passenger traffic is enhanced 
 by profits realized from feeding passengers 
 enroute and for other extra charges. 
 
 Can the enormous profits from railway 
 transportation be estimated from any data 
 accessible to the public? 
 
 All data accessible to the public is fur- 
 nished by the transportation companies 
 from force of circumstances (sometimes by 
 legal requirement, and sometimes as a mat- 
 ter of expediency), designed rather to de- 
 ceive than to furnish correct information 
 concerning the enonnous profits actually 
 realized. Public reports being unreliable, 
 estimates may be the more correct, 
 
 389218
 
 38 THE CUKSE OF THE GIAA'TS 
 
 CHAPTER V. 
 
 PUBLIC REPORTS INTENTIONALLY INCORRECT. 
 
 What facts may be cited to sustain the sug- 
 gestion that the semi-public reports of cor- 
 porations are misleading or deceptive'? 
 
 More than fifty years ago the State En- 
 gineer and Surveyor of New York, to 
 whom the railroads of that state were re- 
 quired to make detailed reports annually, 
 reported to the New York Legislature that 
 the said reports were ''notoriously incor- 
 rect, and in many cases made so system- 
 atically, for the purpose of concealing 
 from the public violations of law and want 
 of fidelity to their trusts," and that "no 
 reliance whatever can be placed upon any 
 general conclusions as to the cost or profit 
 of railroad transportation as exhibited by 
 these reports." (See Senate document 
 number 35, N. Y., 1855.) Intelligent peo- 
 ple who have had occasion to look deeply 
 into the matter know that these words 
 were true at that time; and that they are 
 equally true to this day. (See appendix.) 
 
 Can any evidence be cited more conclusive 
 than the mere assertion that the reports of 
 railroad cor^Dorations since 1855 are unre- 
 liable?
 
 THE CURSE OF THE GIANTS 39 
 
 Yes. See report of New York Board of 
 Railroad Commissioners for 1883. Here 
 the public is informed that "many of these 
 reports are made with consummate skill 
 to deceive both the stockholders and the 
 people, while others are so loosely drawn 
 as to excite only ridicule and disgust," 
 
 'What further evidence to the same effect 
 of a still more recent date may be referred 
 to? 
 
 For the fiscal year ending June 30, 1906, 
 the New York Central and Hudson River 
 Railroad Company reported to the Board 
 of Railroad Commissioners of the State 
 of New York that the ' ' average number of 
 persons, including officials, employed dur- 
 ing the year was 49,255, ' ' and ' ' the aggre- 
 gate amount of salaries and wages paid 
 during the year was $33,988,520.69." Ac- 
 cording to the report of the Secretary of 
 Internal Affairs of the State of Penn- 
 sylvania for exactly the same period of 
 time, the year ending June 30, 1906, this 
 item appears, in these words and figures: 
 ''The number of employes this year was 
 54,723, and the total compensation paid 
 them was $37,996,114." Note the discrep- 
 ancy of 5,468 in number of employes dur- 
 ing the year, and $4,007,594 in wages re- 
 ported to have been paid. 
 
 Are there any other discrepancies between
 
 40 THE CURSE OF THE GIANTS 
 
 the New York and Pennsylvania reports of 
 the N. Y. C. & H. R. E. Co. for the same 
 year? 
 
 Yes. While some of the items are iden- 
 tical, others differ by several millions of 
 dollars, and altogether they are so contra- 
 dictory '*as to excite only ridicule and dis- 
 gust." 
 
 Wliat was the gross income of the New 
 York Central and Hndson Eiver Eailroad 
 Company from all sources whatsoever for 
 the fiscal year ending June 30, 1906, accord- 
 ing to their official report as published by the 
 Board of Eailroad Commissioners in 1907! 
 $95,865,078.24. 
 
 What are the various sources of income, 
 and how much income is rei:>orted from each 
 different source? 
 
 Additional to the income from passenger 
 and freight traffic, and the income from 
 "miscellaneous sources," ten other sources 
 of income are reported. The exact amount 
 reported as having been received from 
 each different source is given specifically 
 in the appendix. 
 
 How many tons of freight are reported as 
 having been carried a distance of one mile I 
 More than eight billions and five hundred
 
 THE CURSE OF THE GIANTS 41 
 
 millions. The exact figures are 8,542,- 
 831,75G. 
 
 How many tons does that equal as having 
 been carried a distance of 441 miles, the dis- 
 tance bet^yeen the cities of Buffalo and New 
 York? 
 
 Nineteen millions, three hundred and 
 seventy-one thousand and five hundred 
 tons. 
 
 How many passengers were carried a dis- 
 tance of one mile! 
 
 One billion, five hundred and twenty- 
 three millions, five hundred and seventy- 
 nine thousand, seven hundred and fifty- 
 nine. 
 
 How many passengers does that equal as 
 having been carried 441 miles, the distance 
 between New York and Buffalo? 
 
 Three million, four hundred and fifty- 
 four thousand, eight hundred and twenty- 
 nine. 
 
 Beckoning the income of the Company for 
 passengers carried at the regular rate 
 charged from New York to Buffalo ($9.25), 
 making no allowance for the extra income 
 realized from passengers riding in parlor 
 cars, and estimating the average income of
 
 42 THE CURSE OF THE GIANTS 
 
 the freight moved the distance between New 
 York and Buffalo at $4 a ton, what income 
 would the Company receive from its freight 
 and passenger traffic only, and how does this 
 amount compare with the gross income re- 
 ported from all sources whatsoever, as given 
 in the sworn official report of the Company 
 for the year? 
 
 As computed above the freight and pas- 
 senger traffic only, aside from all other 
 sources of income, would yield an income 
 of $109,443,168.25, or $13,578,090.01 more 
 than the total gross income which the Com- 
 pany reports from all sources, including in- 
 terest and dividends on millions of stocks 
 and bonds in which the surplus profits of 
 the Company have been invested. 
 
 Is there reason to believe that a thorough 
 painstaking investigation of the business 
 methods, the receipts and disbursements of 
 some of the railroad corjDorations, including 
 the Pennsylvania Company and the New 
 York Central, would startle the world even 
 more than the recent investigation of the big 
 three life insurance companies of New York? 
 
 Yes. On general principles there ap- 
 pears to be no reason to conclude that men 
 who conduct the bulk of the life insurance 
 business are less honorable than the men
 
 THE CURSE OF THE GIANTS 43 
 
 who control transportation companies. As 
 a matter of fact the insurance directorate 
 and the transportation directorate are very 
 largely composed of the same individuals. 
 There is evidence on every hand that for 
 sinister purposes the public is systematic- 
 ally deceived and misinformed relating to 
 the profits accruing from the transporta- 
 tion business. 
 
 CHAPTEE VI. 
 
 GET ETCH QUICK PROFITS. 
 
 "What can be said concerning the profits of 
 banks and trust companies? 
 
 The same as may be said of the trans- 
 portation business; the profits are much 
 greater than the "common people" are 
 aware of. 
 
 Does the accumulating profits of banks and 
 trust companies increase the public debts at 
 the rate of 5% per annum? 
 
 Yes. Much more than 5% per annum. 
 
 Give some specific data warranting this af- 
 firmation. 
 
 There are no complete statistics accu- 
 rately exhibiting the profits of banks and 
 trust companies. The author has made a
 
 44 THE CURSE OF THE GIANTS 
 
 compilation from the Manual of Statistics 
 of the profits of 98 banks and trust com- 
 panies for the five years ending with 1906. 
 These 98 institutions represent all sections 
 of the country, being located in 21 different 
 states, including Maine, Oregon, Califor- 
 nia, Texas and Florida. 
 
 "What was the capital of these 98 banks and 
 trust companies on January first, 19021 
 
 Ninety-three millions, three hundred and 
 eighty-three thousand, and one hundred and 
 seventy-five dollars. 
 
 How much cash did they divide in profits 
 during the five years ending December 31, 
 1906? 
 
 One hundred and eleven millions, three 
 hundred and eleven thousand, four hun- 
 dred and eighty-one dollars, or about 24 
 per cent each year of their total capital. 
 
 Does the 24 per cent of annual dividends 
 indicate the sum total of the profits real- 
 ized by these 98 banks and trust companies? 
 
 No. In addition to the 111 millions (24 
 per cent annually) actually distributed in 
 dividends among the stockholders, during 
 the same time a further profit exceeding 
 160 millions ($160,604,098) was accumu- 
 lated and held in reserve as "imdivided
 
 THE CURSE OF THE GIANTS 45 
 
 profits," wliicli profits are yet to be di- 
 vided. 
 
 Do the above figures, the divided and iin- 
 divided profits as above indicated, cover the 
 entire profits of the 98 banks and trust com- 
 panies ? 
 
 No. During the same period they in- 
 creased their capital from $93,383,175 to 
 $122,488,175. In other words, the total 
 profits during these five years approxi- 
 mates 325 per cent of the original capital, 
 which profits were distributed as follows : 
 111 millions plus, divided in cash; 160 
 millions, plus, held in reserve for future 
 distribution, and 29 millions plus, carried 
 to capital account. 
 
 How much, then, were the public debts in- 
 creased by the accumulated 23rofits of these 
 98 institutions during the five years under 
 review ? 
 
 The difference between the present cap- 
 ital and surplus, compared with the cap- 
 ital and surplus five years ago, or about 
 190 millions. 
 
 Leaving the undivided profits out of con- 
 sideration for the present, state the divi- 
 dends actualh^ distributed by some particu- 
 lar banks in the list under consideration.
 
 46 THE CURSE OF THE GIANTS 
 
 The average annual dividends of the 
 First National Bank of Harrisburg, Pa., 
 for the five years under consideration 
 were 28 per cent; Mercantile Trust Com- 
 pany of New York, 30 per cent; Camden 
 Safe Deposit Company, 32 per cent; 
 Fletcher National Bank of Indianapolis, 
 36 per cent; Farmers' Loan & Trust Com- 
 pany, New York, 40 per cent ; Union Trust 
 Company, 48 per cent; United States Trust 
 Company, 50 per cent; Marine National 
 Bank of Buffalo, 52 per cent; New York 
 County National Bank, 75 per cent ; United 
 States Mortgage and Trust Company, 76 
 per cent; Chemical National Bank of New 
 York, 150 per cent; Fifth Avenue Bank 
 of New York, 164 per cent. The div- 
 idend of the First National Bank of Scran- 
 ton, Pa., in one year (1905) was 444 per 
 I cent. In 1901 the dividends of the First 
 National Bank of New York City was 1,960 
 per cent and during the next ensuing five 
 years this bank distributed eleven millions 
 and three hundred thousand dollars among 
 its stockholders. 
 
 An Associated Press dispatch, dated No- 
 vember 9, 1906, says: 
 
 ''The directors of the State Bank, this 
 city (New York), today declared a divi- 
 dend of 900 per cent, payable in cash on 
 the bank's capitalization of $100,000. The
 
 THE CURSE OF THE GIANTS 47 
 
 directors also declared tlie usual semi- 
 annual dividend of 50 per cent (making an 
 even 1,000 per cent for the year). The large 
 surplus the bank amassed became un- 
 wieldly because of its small capitalization 
 and in order to obviate this the directors 
 decided to distribute the surplus in ^ the 
 form of a dividend. It also was decided 
 to increase the capitalization of the bank 
 from $100,000 to $1,000,000. [This is an- 
 other increase of the public debts on which 
 the dividends or interest at 5 per cent will 
 increase the public burden $45,000 per 
 year.] 
 
 Illustrate the profit on an investment for 
 twenty years in the stock of the Chemical 
 National Bank of New York. 
 
 The par value of shares in the Chemical 
 National Bank is $100, and the aggregate 
 dividends for the past twenty years is 
 3,000 per cent. Therefore people who paid 
 not more than face value for their stock 
 and have continuously held the same for 20 
 years, have received in dividends an amount 
 equal to their entire original investment 
 three times in every period of two years. 
 In other words $30,000 for each $1,000 in- 
 vested, and the present market value of ten 
 shares (par value $1,000) is more than 
 $42,000. 
 
 How can the fact that money invested in
 
 48 THE CURSE OF THE GIANTS 
 
 National Banks produces so much more profit 
 than money invested in farming, be ex- 
 plained? 
 
 By aid of an iniquitous, inequitable na- 
 tional banking system, those who establish 
 national banks are enabled to appropriate 
 to themselves the wealth that the farmer 
 and others produce. 
 
 At what period in the history of the nation 
 
 did the present debt creating epoch take root? 
 
 In 1862, when the present iniquitous 
 banking system was established. 
 
 Was this national banking system estab- 
 lished as a climax or culmination of intelli- 
 gent patriotic discussion and inquiry as to 
 the financial policy best calculated to promote 
 the prosperity of all the people? 
 
 No. On the contrary, the American bank- 
 ing system as established in 1862, was es- 
 tablished in the interest of British capital- 
 ists. It was cunningly based on a national 
 debt and designed to perpetuate a system 
 of debt and bondage ; to create a bond-hold- 
 ing, money lending class, privileged to live 
 in idleness and luxury on the labor and 
 products of bond-servants. In operation 
 thus far it has proved all that its orig- 
 inators could have hoped for. 
 
 AVhat evidence can be produced in support
 
 THE CURSE OF THE GIANTS 49 
 
 of the affirmation that British capitalists were 
 instrumental in the enactment of the national 
 bank act of 1862 ? 
 
 The famous Hazzard circular issued in 
 1862, for the full text of which see appendix. 
 
 When the present American banking sys- 
 tem was in its infancy, what other famous 
 circular letter was sent to all money loaning 
 and banking institutions by the associated 
 banks of New York City! 
 
 After the national banking system had 
 been in existence 15 years, and the people 
 were earnestly advocating its repeal, and 
 the repeal of the act demonetizing silver 
 (also enacted at the instigation of English 
 capitalists, in 1873), at a time when the 
 people were calling loudly for more United 
 States money, in October, 1877, the asso- 
 ciated banks of New York City appealed 
 to the money-lending, bond-holding classes 
 generally, by means of what is now known 
 in financial history as ''the Buel circular," 
 a copy of vdiich is reproduced in the 
 appendix. This circular should be read 
 and pondered over by all people who have 
 been taught to believe that the national 
 banking system is a model of excellence 
 altogether indispensable to the welfare of 
 the people.
 
 50 THE CURSE OF THE GIANTS 
 
 At what other period and for what pur- 
 pose did the money trust issue a circular let- 
 ter the effects of which, considered in con- 
 junction with other political events, marks 
 an epoch in American financial history? 
 
 March 12, 1893, was issued the famous 
 panic circular. Its confessed purpose was 
 to counteract (defeat) the will of the peo- 
 ple. 
 
 Why is this circular designated ''the panic 
 circular"? 
 
 It was designed to create a panic; "to 
 make a monetary stringency felt;" de- 
 signed to "at once retire one-third of all 
 bank circulation" and "one-half" of all 
 bank loans. The great panic, "hard- 
 times," of 1893 followed as the inevitable 
 consequence. 
 
 How could such a condition of affairs ben- 
 efit the banks? 
 
 In various ways too numerous to men- 
 tion in "a short catechism." An instance 
 in point: A business man owns a parcel 
 of real estate worth upwards of $75,000, 
 against which property a bank holds a first 
 mortgage for a loan of $25,000 due April 
 first, 1893. Owing to the universal "mone- 
 tary stringency" created by the banks for 
 their own special profit, the owner is un-
 
 THE CURSE OF THE GIANTS 61 
 
 able to raise ready money to satisfy the 
 mortgage. The bank forecloses and as- 
 sumes ownership in fee simple and there- 
 after rents the property at an annual ren- 
 tal of $10,000 and some years later sells 
 the same property for $125,000. 
 
 Why did the banks choose this particular 
 time to create a panic? 
 
 It was a critical period in the history 
 of American monetary affairs. In spite 
 of the sinister influences of Wall Street, 
 silver had been restored to coinage and 
 ''the crime of 1873" had been exposed, 
 which crime consisted in demonetizing sil- 
 ver by an act of Congress without even 
 the knowledge or intent of the Senators 
 and Representatives in Congress whose 
 votes legalized the act. The Bland- Allison 
 silver coinage act of 1878, although serious- 
 ly handicapped by Wall Street influences, 
 had vindicated the claims of its authors; 
 and the Sherman silver bill, enacted in 
 1890, only three years prior, authorized the 
 coinage of about double the quantity of 
 silver dollars that the Bland act had pro- 
 vided for. As very correctly expressed in 
 ''the panic circular," THERE WAS "an 
 increasing sentiment in favor of Govern- 
 ment legal tender notes and silver coin- 
 age." The issue of silver, gold, United 
 States treasury notes, greenbacks — all
 
 52 THE CURSE OF THE GIANTS 
 
 forms of United States money— being an- 
 tagonistic to the selfish interests of the 
 money lenders, it was and is very plain 
 that '4t will not do" (from the bondhold- 
 ers' standpoint) '*to allow greenbacks" 
 (United States money) "to circnlate," for 
 the very reason that they (the bondhold- 
 ers) "cannot control that" — United States 
 money. 
 
 ^\Tiat method of procedure did the panic 
 circular recommend for the purpose of de- 
 feating the will of the people? 
 
 It recommended nothing less than an ex- 
 tra session of Congress for the sole pur- 
 pose of demonetizing silver again, urging 
 "the unconditional repeal" of the Sherman 
 silver bill ; and this notwithstanding its own 
 declaration that THERE WAS AT THAT 
 VERY TIME "AN INCREASING SEN- 
 TIMENT* IN FAVOR OF GOVERN- 
 MENT LEGAL TENDER NOTES AND 
 SILVER COINAGE." At the time "the 
 panic circular" was issued, the people had 
 had the benefit of fifteen years experience 
 since the enactment of the Bland-Allison 
 silver coinage act, and were only fairly 
 beginning to realize the great virtue that 
 would flow from a somewhat more plenti- 
 ful supply of United States money. 
 
 What was the stimulus, inducement or in- 
 centive urged upon the money lenders by th^
 
 THE CURSE OF THE GIANTS 53 
 
 ''panic circular" in order to unite their ener- 
 gies to concerted action for the demonetizing 
 of silver? 
 
 That which always appeals with the 
 greatest effect to the cupidity of "Shy- 
 lock"; namely, that "this will require the 
 authorization of from five hundred million 
 ($500,000,000) to one billion ($1,000,000,- 
 000) of new bonds (therefore more bond- 
 age, more bond-servants) as a basis of cir- 
 culation." The student should never lose 
 sight of the fact that national bank notes 
 are based on a national debt; and that a 
 perpetual national debt, perpetual bond- 
 age of the people, if not the ideal condition 
 of society desired by ALL money lenders, 
 is the logical sequence at least, toward 
 which the present national banking system 
 tends. 
 
 If people were satisfied with silver coinage 
 and United States treasury notes, and public 
 sentiment favorable to the issue of more 
 L^nited States money was on the increase, 
 how could the national banks in the face of 
 these circumstances urge that United States 
 money should be displaced by national bank 
 notes, especially considering the fact that 
 more national bank notes must necessarily 
 increase the public debts by hundreds of mil- 
 lions of dollars?
 
 54 THE CURSE OF THE GIANTS 
 
 By no argument or theory compatible 
 with good law or good morals, YET NEV- 
 ERTHELESS, pursuant to the proclama- 
 tion hv the President of the United States, 
 for that very purpose, CONGRESS WAS 
 CONVENED IN EXTRA SESSION THE 
 FOLLOWING AUGUST, and the purchas- 
 ing clause of the Sherman silver coinage 
 bill was repealed. Never during the en- 
 tire history of the Government of the 
 United States has there been another such 
 a flagrant object lesson of the evil power 
 of concentrated wealth, aided possibly, or 
 probably, by the prince of the power of 
 darkness, to control the destinies of men. 
 
 CHAPTER VII. 
 
 UNITED STATES MONEY VS. BANK NOTES. 
 
 Gold coin is United States money; and the 
 money classes seem to favor Government is- 
 sue of gold coin. How can that fact be ex- 
 plained? 
 
 Conscious as the bondholding money 
 lending classes certainly are of their power 
 to control the money system, they have not 
 yet arrived at the point where they have 
 found it either necessary or expedient open- 
 ly to advocate the closing of the United 
 States mints. The money lending classes,
 
 THE CURSE OF THE GIANTS 66 
 
 however, are as much opposed to one form 
 of United States money as another. In 
 the language of "the panic circular" NA- 
 TIONAL BANK NOTES ON A GOLD 
 BASIS (meaning a bond basis), MUST BE 
 MADE THE ONLY MONEY. Gold coin 
 can be, and frequently is, melted into gold 
 bullion without changing its value; and 
 gold bullion is no part of the medium of 
 exchange; money. Moreover, the bond- 
 holders are sanguine of their ability to con- 
 trol the direction, if not the volume of 
 ' all gold coin minted. Hence the scarcity 
 of gold coin as a medium of exchange. 
 
 Then the animosity of bankers and money 
 lenders generally against silver coin is more 
 because of its being United States money 
 than because of the nature of the metal ; and 
 the reason why they have not dishonored and 
 disparaged gold coin at the same time, is 
 mainly or entirely a consideration of ex- 
 pediency. Is this the correct understanding! 
 
 That is the correct understanding. The 
 further fact also, that silver has heretofore 
 been found in greater abundance than gold, 
 incidentally caused the opposition to con- 
 centrate against the white metal. 
 
 What are the evidences that the supply of 
 United States money as a medium of ex-
 
 56 THE CURSE OF THE GIANTS 
 
 change is inadequate to the needs of the 
 
 people ! 
 
 First, the absence of it; and second, the 
 reports of the director of the United 
 States mint. The aggregate value of the 
 gold, silver and copper coined at all the 
 mints of the United States since the first 
 Government mint was established, in 1792, 
 np to Jamiarv first, 1906, a period of 114 
 years, is $3,637,350,966.28. Much of this, 
 probabl}^ more than one-half, has been lost, 
 destroyed, buried in the earth or melted in- 
 to bullion. The capitalization of the rail- 
 road corporations transacting business in 
 the state of Pennsylvania, stocks and bonds 
 on which the people are taxed to pay in- 
 terest and dividends, is $4,304,880,297, ex- 
 ceeding the value of all coin of every 
 description and denomination issued by the 
 Government from first to last by more than 
 , six hundred millions of dollars. 
 
 What consideration other than the aggre- 
 gate value, is important relating to the me- 
 dium of exchange? 
 
 The denomination. More than half the 
 total value of all the coins minted in the 
 mints of the United States are of a denomi- 
 nation seldom seen by the great majority 
 of tlie common people, nan^ely twenty dol- 
 lar gold pieces. Twenty dollar gold pieces 
 are not designed for general circulation
 
 THE CURSE OF THE GIAJs^TS 57 
 
 among the common people and tlie coin- 
 age of one dollar gold pieces, the gold coin 
 most serviceable as a circulating medium, 
 was discontinued many years ago. The 
 total value of one dollar gold pieces minted 
 from first to last is less than three-fourths 
 of one per centum of the total coinage of 
 gold. 
 
 Silver being unsuitable for coins of a de- 
 nomination greater than one dollar, did 
 this circumstance make that metal still more 
 objectionable to the moneyed classes? 
 
 Yes. Money of small denominations has 
 always been unpopular with the money 
 lending classes and therefore their wealth 
 has been used to secure legislation favor- 
 able to their interests. Many years ago, 
 before the present national banking sys- 
 tem was established, several states, notably 
 New York and Illinois, enacted laws mak- 
 ing the issue of bills of a lesser denomina- 
 tion than five dollars or ten dollars a mis- 
 demeanor punishable by fine or imprison- 
 ment. National banks at present issue no 
 bills of a denomination less than five dol- 
 lars. The only paper money now issued in 
 denominations less than $5 is one dollar 
 and two dollar silver certificates. 
 
 Are national bank bills issued in denomina- 
 tions so large as to practically take them out 
 of circulation?
 
 58 THE CURSE OF THE GIANTS 
 
 Yes. Money of a greater denomination 
 than twenty dollars circulates very little 
 comparatively. The denomination of na- 
 tional bank bills greater than twenty dol- 
 lars are $50 bills; $100 bills; $500 bills; 
 $1,000 bills; $5,000 bills and $10,000 bills. 
 
 It is affirmed that there has never been a 
 sufficient supply of the medium of exchange 
 in circulation. What indications are there 
 that it is true at least of the present genera- 
 tion? 
 
 First, as always, the absence of it ; sec- 
 ond, the recent universal issue of "clear- 
 ing house certificates," and, third, admis- 
 sions as the following quoted from the 
 financial page of the Washington Post, of 
 July 31, 1907, namely: "A well known 
 financier declares drastic financial legis- 
 lation is needed to expand money supply." 
 "Business easing up, a natural sequence 
 to the scarcity of money." "The truth 
 of the matter is there is not sufficient money 
 for legitimate purposes." "Business 
 has grown too fast in comparison with the 
 growth of our money supply." "There is 
 - one thing certain — there will have to be 
 some drastic financial legislation created 
 for the purpose of expanding our money 
 supply before the vast and unlimited re- 
 sources of the country can be developed as 
 they should be developed. 
 
 )>
 
 THE CURSE OF THE GIANTS 59 
 
 What "drastic" financial legislation is now 
 (1908) proposed? 
 
 More national bank money, which means, 
 as always, more debt, more bonds and 
 more human bondage. 
 
 W\io is rejDorted to have said that ''fifty 
 men in these United States have it within 
 their power, by reason of the wealth which 
 they control, to come together within 24 hours 
 and arrive at an imderstanding by which 
 every wheel of trade and commerce may be 
 stopped from revolving, every avenue of 
 trade blocked, and every electric key struck 
 dumb. These fifty men can paralyze the whole 
 country, for they control the circulation of the 
 currency and can create a panic whenever 
 they will"! 
 
 United States Senator Chauncey M. De- 
 pew. See ' ' The Coming Battle, ' ' by M. W. 
 Walbert, 1899, page 357. 
 
 "What "get-rich-quick" scheme was availed 
 
 of by the money lenders in the early sixties? 
 
 The opportunity to buy United States 
 Government bonds. 
 
 How much profit did the bondholders real- 
 ize on the United States bonds they pur-
 
 60 THE CURSE OF THE GIANTS 
 
 chased from 1862 to 1868, inclusive, includ- 
 ing the interest, to 1875? 
 
 More than one billion dollars. 
 
 What authority can be cited in confirma- 
 tion of that statement? 
 
 See page 260, Congressional Record, 45th 
 Congress, January 10th, 1878. There the 
 figures are given in detail year by year and 
 summed up in words and figures as fol- 
 lows: "An account of the bondholders' 
 clear profit arising from NO INVEST- 
 MENT AT ALL may therefore be stated 
 in the following tabular form:" 
 
 1862, $ 28,138,989 
 
 1863, 94,555,713 
 
 1864, 306,551,382 
 
 1865, 110,159,367 
 
 1866, 53,757,183 
 
 1867, 156,915,741 
 
 1868, 153,159,765 
 On account of 5% bonds, 109,297,864 
 
 $1,012,536,004 
 
 Compared with the present debt-creating 
 epoch which began in 1862, with the inaugu- 
 ration of the present national banking sys- 
 tem, what was the financial condition of the 
 people in 1836, 47 years after the Constitu- 
 tion of the United States was adopted?
 
 THE CURSE OF THE GIANTS 61 
 
 After liquidating tlie expenses and debts 
 incurred as the result of two wars, the 
 revolutionary war and the war of 1812, at 
 the close of the year 1836 a cash surplus 
 exceeding 42 millions ($42,468,585) had 
 been accumulated in the national treasury. 
 What disposition was made of this surplus? 
 
 Congress ordered its distribution, all 
 save five million dollars, among the sev- 
 eral states (26 in number at that time), ac- 
 cording to population, as a substantial evi- 
 dence of good cheer, a sort of universal 
 dividend of prosperity. 
 
 "Was this surplus actually distributed 
 among the states as ordered by Congress! 
 
 Three installments amounting in the ag- 
 gregate to $28,101,644 were actually dis- 
 tributed, but the fourth quarterly install- 
 ment was never distributed. Congress in 
 the meantime having rescinded its former 
 order. 
 
 What act is made by statute law an offense 
 as sure (or possibly more sure) to meet with 
 swift and merciless punishment as the crime 
 of taking human life? 
 
 The act of issuing unauthorized money. 
 At the advent of the nineteenth century to 
 counterfeit the bills of credit of the State 
 of New York was punishable by branding
 
 62 THE CURSE OF THE GIAXTS 
 
 the letter ''C" with a hot iron on the cheek 
 of the offender. 
 
 Does the goldsmith who converts twenty- 
 dollar gold pieces or other United States 
 coins into articles of merchandise, such as 
 finger rings, watch cases, etc., violate any 
 law, organic or statutory? 
 
 No. That is a most common practice. 
 Many millions of dollars of United States 
 money is thus taken out of circulation and 
 the medium of exchange, the circulating 
 medium thereby made scarce, and there 
 are no laws on the statute books making 
 the custom a punishable offense. 
 
 What effect on trade and commerce does 
 the practice of contracting the supply of 
 money — the circulating medium, or medium 
 of exchange have? 
 
 To make money scarce is to make money 
 dear; therefore harder to obtain. Hence 
 people are compelled to give more value 
 in labor or the products of labor to obtain 
 a dollar or a given number of dollars. To 
 make money scarce is to make the payment 
 of debts more difficult, or in some cases 
 absolutely impossible. 
 
 Give a demonstration of this last proposi- 
 tion.
 
 THE CURSE OF THE GIANTS 63 
 
 John D. Eoekefeller and Jolin Pierpont 
 Morgan together hold mortgages amount- 
 ing to one hundred millions of dollars on 
 real property valued at say two hundred 
 millions. They quietly issue orders to the 
 banks they own or control (which may be 
 directly or indirectly nearly or quite all the 
 banks of the United States), to *' retire at 
 once one-third of their circulation and call 
 in one-half of their loans" to ''make a 
 monetary stringency felt. ' ' Then they melt 
 perhaps fifty million dollars of United 
 States gold coin into gold bullion and 
 through their influence suspend for a time 
 the operations of the United States mints. 
 People find it not only difficult but in some 
 cases impossible to pay their debts, there 
 being little or no money in circulation. 
 Morgan and Eoekefeller foreclose their 
 mortgages and become owner in fee simple 
 of millions of dollars for which they have 
 rendered no equivalent in labor or the prod- 
 ucts of labor. 
 
 Ethically considered, then, is it a crime to 
 curtail the supply of money, the medium of 
 exchange, whether so defined by human laws 
 or otherwise? 
 
 It certainly is. 
 
 Suppose a goldsmith or any other person 
 were to take gold bullion, gold finger rings,
 
 64 THE CURSE OF THE GIANTS 
 
 watch cases, etc., or even some base or com- 
 mon metal like lead or almniniim, and by 
 chemical process or otlierwise convert tlie 
 same into United States gold coin, the same 
 being exact duplicates in every particular to 
 
 coins issued at the United States mints, so 
 IDerfect that no expert could distinguish the 
 
 authorized money from the unauthorized, 
 
 'vhat would be the result? 
 
 The result would be that the individual 
 so operating would be imprisoned as an of- 
 fender against the laws of the United 
 States. 
 
 "VA^iat man, woman or child could justly 
 claim that they had been injured by such 
 an operation! Or who could possibly be in- 
 jured by the free coinage of silver or gold 
 at the mints of the United States 1 
 
 It might be well for the student to re- 
 peat this question several times to himself 
 and then apply such an answer as to him 
 might seem most proper. 
 Considering that the American people are 
 sober, intelligent, industrious, liberty loving 
 and peaceable, how can the fact be explained 
 that they have become so lioi3elessly over- 
 whelmed with public debts'? 
 
 Only in the one way it has been ex-
 
 THE CURSE OF THE GIANTS 65 
 
 plained, namelv by toleratiag the worst pos- 
 sible monetary system that hmnan ingenu- 
 ity, aided by the prince of the power of 
 darkness, eonld device. 
 
 If the aggregate of pnblic debts is so great 
 that they can never be paid will not the bond- 
 holders be the losers in the end! 
 
 K they get all the products of labor to 
 pay the interest and dividends on their in- 
 vestments, their stocks and bonds, they can- 
 not and do not ask or expect anything more 
 and they will never be satisfied with any- 
 thing less. All they can iwssibly hope for 
 is to reduce the industrial classes to a con- 
 dition of hopeless bond-servants. 
 
 Is it the deliberate intention then of the 
 money lending classes to keep the people in 
 
 perpetual bondage? 
 
 Yes. It is their hoj)e and expectation to 
 establish permanently a government in 
 which the common i>eople, the industrial 
 classes, will be kept in a condition of per- 
 petual servitude. They expect to so con- 
 trol wages, and wage earners, that the 
 money value of all products will be ab- 
 sorbed in the payment of interest, rent, 
 taxes and profits. It would be manifestly 
 impossible to realize more than all, and less 
 than all will not satisfy. Hence the money 
 loaners are never alarmed in the least at
 
 66 THE CURSE OF THE GIANTS 
 
 the amazing and constantly increasing ag- 
 gregation of public debts. It is only when 
 the interest payers begin to enquire what 
 they must do to be saved, that the bond- 
 holders become alarmed. 
 
 Was this proposition illustrated by the op- 
 ponents of free silver coinage? 
 
 Yes. When it was proposed to increase 
 the supply of silver dollars, the money that 
 money lenders cannot completely control, 
 and which, unlike bank notes, are not 
 founded upon a national debt, the bond- 
 holders and moneyed classes generally 
 cried "repudiation." No monetary sys- 
 tem that can be devised which will admit 
 of the slightest possibility of reducing the 
 enormous volume of public debts or even 
 reduce the usury which they expect to wring 
 from the toil of the producers, will ever be 
 satisfactory to the bondholders. 
 
 What did the Chicago Tribune say concern- 
 ing public debts, January 10, 78? 
 
 ''There is no disposition in any quar- 
 ter," said the Tribune, "to deny the enor- 
 mous increase of public debts, the corrupt 
 operations and the organized system of 
 plunder practiced by city rings from 
 Tweed's down, or the startling fact that 
 the cities thus heavily mortgaged can show 
 no substantial equivalent for their debts.
 
 THE CURSE OF THE GIANTS 67 
 
 The money HAS BEEN CRIMINALLY 
 WASTED, squandered upon rings, eaten 
 up in contracts, divided among officials, 
 flung away upon experiments and useless 
 improvements — in plain language, the debts 
 represent public plunder, and what have 
 the cities to show for it? Nothing but bad- 
 ly paved streets; illy constructed public 
 buildings ; vast parks the very shade trees 
 of which have indelibly stamped upon them 
 the word 'steal'; railway adventures that 
 have proved a damage rather than a ben- 
 efit; gas rings whose only objects seem to 
 be plunder; and city officials whose only 
 object seems to be to play into the hands 
 of the bummer element with a view to next 
 spring's election." 
 
 "What did the venerable Peter Cooper write 
 in 1876 when a candidate of the Greenback 
 party for President of the United States? 
 
 Peter Cooper, one of the most wealthy 
 and honored men of New York city in his 
 day, wrote for publication these indisput- 
 able truths: ''An increase in the volume 
 of money," said Mr. Cooper, "is the only 
 remedy for our present grievances. Debts 
 with inconvertible property are every- 
 where, while monopolists and non-produc- 
 ers hold all the money, A debt of one thou- 
 sand dollars will, and often does, take by 
 force from the debtor, a farm, a house, or
 
 68 THE CURSE OF THE C4IANTS 
 
 other property that has cost the owner ten 
 thousand dollars. Debt, debt is every- 
 where and can be paid only in money. It 
 has been incurred by states, cities, coun- 
 ties, towns, villages, corporations and in- 
 dividuals to an amount that is fearful to 
 contemplate. ' ' 
 
 In the forties and the fifties men now the 
 fathers of later generations were taught in 
 the public schools that Americans were free 
 men. Was such teaching true then, or is it 
 true now? 
 
 Let that question be answered in true 
 Yankee style, that is, by asking another 
 question, or several other questions. Can 
 a people burdened by scores of billions of 
 debts claim to be a free people I In theory 
 the American people are supposed to orig- 
 inate and carry into effect the American 
 system of jurisprudence. In fact the Amer- 
 ican mechanic, farmer or ordinary business 
 man has about the same opportunity to 
 originate the laws of the American Repub- 
 lic that he has to assist in framing the laws 
 of the British Empire. 
 
 If the American people are NOT destined 
 to remain in a condition as bond-servants, 
 chattel slaves, how is that consummation to 
 be avoided"?
 
 THE CURSE OF THE GIANTS 69 
 
 It is essential, first of all, to fully com- 
 prehend the extent of the evil. Present 
 conditions are intolerable ; they cannot pos- 
 sibly continue. The fact that "all men are 
 endowed with certain inalienable rights," 
 the "right of life, liberty and the pursuit 
 of happiness," having been instilled into 
 the moral fibre of the nation, the American 
 people will not continue to endure the 
 "yoke of bondage." 
 
 CHAPTER VIII. 
 
 CONCLUSION. 
 
 Name five measures the adoption of which 
 would tend to ameliorate the present intol- 
 erable conditions. 
 
 First. A system of three-cent street car 
 fares in all the large cities similar to the 
 system now established in the city of Cleve- 
 land, Ohio, includmg three-cent aluminum 
 dies, representing coins, which pass cur- 
 rent as a medium of exchange for minor 
 purchases, and save the making of change 
 in paying street car fares. 
 
 Second. A very material increase in the 
 supply of United States money, including 
 the free and unrestricted coinage of silver ; 
 and also, the issue of a medium of ex- 
 change (paper) based on land values, the
 
 70 THE CURSE OF THE GIANTS 
 
 denomination to be not greater .than one 
 dollar. 
 
 Third. Abolish all laws imposing taxes 
 or license fees for the sale of spirituous 
 and malt liquors. 
 
 Fourth. Enact a federal statute impos- 
 ing a tax on the transfer of all real and 
 loersonal property at death, by which a very 
 large share of the public revenues shall be 
 collected and distributed, the state, na- 
 tional and county governments sharing in 
 the distribution. 
 
 Fifth. Abolish all other laws, state and 
 federal, for the collection of taxes and li- 
 cense fees and collect all public revenues 
 from inheritance taxes and a tax on land 
 values until such time as it may appear 
 that all public revenue should be collected 
 exclusively on land values. 
 
 Would not a large increase in the sale of 
 intoxicating drinks follow the repeal of li- 
 cense laws as a natural consequence? 
 
 No ; it would greatly simplify the saloon 
 problem. People are not deterred from 
 engaging in the liquor traffic by the cost of 
 the license. To abolish the saloon license 
 would be to eliminate the saloon as a po- 
 litical factor and greatly purify the entire 
 elective system. 
 
 "What mercantile system might be and prob-
 
 THE CURSE OF THE GIANTS 71 
 
 ably will be established to the great benefit 
 of all classes and conditions of people? 
 
 A system of exchanging commodities 
 (buying and selling merchandise of every 
 description) by which system the full value 
 of the labor of each individual will be per- 
 petuated, and a system of buying and sell- 
 ing real estate known as the twentieth cen- 
 tury system. 
 
 What is the one condition that must neces- 
 sarily be changed before a peaceful and per- 
 manent condition of human society can be 
 set up? 
 
 The condition of human slavery. There 
 is neither wisdom nor justice in the doc- 
 trine of perpetual debts. A national debt 
 is not a national blessing; it is a national 
 curse. Let all the money be issued by the 
 government. Reduce the rates of trans- 
 portation for both freight and passengers 
 to a reasonable return on- money actually 
 invested. To do this it may be necessary 
 for the government to own and operate the 
 railroads.
 
 72 THE CURSE OF THE GIANTS 
 
 Political Reminisences. 
 
 Silver dollars coined at the United States 
 mints were legal tender money from the time 
 the mints were established in 1792, down to 
 1873, when silver was. demonetized by an act 
 of Congress at the instigation of British 
 capitalists without even the knowledge of the 
 Senators and Representatives whose votes 
 consummated the infamy. Five years later, 
 after ''the crime of 1873" had been dis- 
 covered, an irresistible demand for the re- 
 enactment of a law providing for the coinage 
 of silver dollars resulted in the passage of 
 the Bland-Allison silver bill on the 28th of 
 February, 1878. President Hayes, was ex- 
 pected to veto the bill and did so, yielding to 
 the pressure of "those who live by gambling 
 in money and public securities." However, 
 in record breaking time Congress passed the 
 bill over the President's veto. 
 
 Prominent among those who worked zeal- 
 ously for the success of the Bland-Allison law 
 was the late President William McKinley,
 
 THE CURSE OF THE GIANTS 73 
 
 who at that time was a representative from 
 Ohio in the 45th Congress. 
 
 The Bland- Allison silver law was a move 
 in the ri2;ht direction vet it was never as 
 potent for good as it would have been if it 
 could have been passed in its original form. 
 The advocates of "the gold party" succeed- 
 ed in very seriously crippling it. As finally 
 passed, however, it provided at least a limited 
 but steady increase of the circulating medium 
 very much to the benefit of trade and com- 
 merce. It provided for the coinage of not 
 less than two million silver dollars a month. 
 
 THE SHEEMAN SILVER LAW. 
 
 Twelve years later, July 14th, 1890, the 
 Bland bill was superseded by the Sherman 
 silver law. The Sherman silver bill was 
 signed by the late President Benjamin Harri- 
 son, who was not always the willing servant 
 of the Wall street money trust, and who, in 
 consequence, was defeated when a candidate 
 for reelection in 1892. 
 
 The Sherman law of 1890 provided for the 
 coinage of at least 30 million silver dollars 
 annually in excess of the law of 1878. The 
 late President McKinley was still a repre- 
 sentative from Ohio when the Sherman bill
 
 74 THE CURSE OF THE GIANTS 
 
 was pending in Congress. To his credit be it 
 said that Mr. McKinley labored as zealously 
 for the Sherman bill as he had labored for 
 the Bland bill twelve years before. Plead- 
 ing for its passage on the floor of the House 
 of Representatives June 7th, 1890, Mr. Mc- 
 Kinley said: ''It has been made clear by 
 this discussion that it is desirable and neces- 
 sary that the country should have an increase 
 of its circulating medium." He said further 
 (see page 5812 of the Congressional Record, 
 1890), "should this bill fail to become a law, 
 it would deprive my country and my people 
 and the laborers, and the producers, and the 
 industries of my country of $30,000,000 an- 
 nually of the circulating, medium, and that 
 no man should hesitate between the $2,000,000 
 a month that we now have and the $4,500,000 
 a month that we shall have under the pro- 
 posed law." 
 
 After the passage of the Sherman law and 
 while again a candidate for reelection to Con- 
 gress in 1890, Mr. McKinley said : ' ' I am in 
 favor of the use of all the silver product of 
 the United States for money as a circulating 
 medium; I would have silver and gold alike." 
 
 Mr. McKinley delivered an address before 
 the State League of Rei^ublican Clubs at
 
 THE CURSE OF THE GIANTS 75 
 
 Toledo, Ohio, February 12tli, 1891, wlien he 
 took occasion to upbraid President Cleveland 
 for ''his servitude to the gold party." 
 "During all these years at the head of the 
 Government," said Mr. McKinley, ''Mr. 
 Cleveland was dishonoring one of the precious 
 metals, one of our great products, discredit- 
 ing silver and enhancing the price of gold. 
 He even endeavored to stop the coinage of 
 silver dollars before his inauguration to of- 
 fice, and afterwards, and to the end of his ad- 
 ministration, persistently used his power to 
 that end. He determined to contract the cir- 
 culating medium; to demonetize one of the 
 coins of commerce; limit the volume of 
 money among the people ; make it scarce and 
 therefore dear." 
 
 THE SHERMAN SILVER LAW RE- 
 PEALED. 
 
 All that Mr. McKinley had said about Mr. 
 Cleveland discrediting silver and enhancing 
 the price of gold was true. At the very time 
 when Mr. McKinley was protesting to the Re- 
 publican Clubs of Ohio in 1891, against Mr. 
 Cleveland's "servitude to the gold party," 
 the bondholders had already decreed that Mr. 
 Cleveland should again be ' ' their representa-
 
 76 THE CURSE OF THE GIANTS 
 
 live in the "Wliite House." More than that, 
 IT WAS ALREADY DECREED THAT 
 THE COINAGE OF SILVER DOLLARS 
 SHOULD BE STOPPED AGAIN AT ANY 
 AND ALL COSTS. Wall street, that "sys- 
 tem" which ''controls legislation by control- 
 ling the currency, ' ' and by controlling wages 
 controls wage earners (see Hazzard cir- 
 cular), had planned one more desperate and 
 determined effort to demonetize silver for- 
 ever. To that end Grover Cleveland was 
 made President in 1892. March 4th, 1893, 
 he was inaugurated, and three months later 
 his "proclamation" was issued convening 
 Congress in extra session for the expressed 
 purpose of curtailing the circulating medium 
 many millions of dollars by the "unct>ndi- 
 tional repeal" of the Sherman silver bill 
 which had not yet been on the statute books 
 three full vears. The benefits that Mr. Mc- 
 Kinley had labored for so zealously were 
 ruthlessly swept away at the behest of "the 
 gold party." 
 
 The debate in the Senate of the United 
 States on this all important issue continued 
 from August 7th to October 30th, when the 
 infamy was completed. Senator Stewart of 
 Nevada, in his final remarks in opposition to
 
 THE CURSE OF THE GIANTS 77 
 
 the repealing act said : ' ' The die is cast. The 
 surreptitious and fraudulent act of 1873 de- 
 monetizing silver is ratified and confirmed. 
 The gold kings are victorious. The allied 
 power of bonds and national banks has won 
 a gTeat victory. The Trojan horse of the 
 gold kings, bedecked with flaming banners 
 upon which were inscribed * Democracy,' 
 'Bimetalism,' 'Local self-government,' 'Ke- 
 duction of Taxation,' and 'Civil Service Re- 
 form,' to conceal the monometalic guns of 
 concentrated money and bonds, made a 
 triumphant entrance into the national capitol. 
 Jeffersonian and Jacksonian democrats re- 
 tired with shame, while the Hessians, re- 
 cruited for plunder and spoils, feasted and 
 made merry at the national banquet and 
 swore allegiance to the profit of Wall street. 
 The people of the United States must now 
 grapple with the most dangerous, the most 
 insidious, and the most relentless foe with 
 which humanity is compelled to contend — the 
 power of concentrated capital. It is the most 
 dangerous, because its weapons are cunning; 
 the most insidious, because its methods are 
 secret; and the most relentless, because it is 
 soulless and deaf to the groans of its vic- 
 tims. ' '
 
 78 THE CURSE OF THE GIANTS 
 
 One liundred and eight Representatives and 
 thirty-two Senators, however, voted against 
 the repealing act, some of whom are still in 
 public life, notably the Hon. Joseph G. Can- 
 non, of Danville, Illinois. Every principle of 
 justice, liberty and equality, every principle 
 of representative government which the 
 American people hold dear, was inextricably 
 involved in the fate of the Sherman silver 
 coinage law of 1890. But thanks to the money 
 trust of Wall street, aided by their faithful 
 ''representative in the White House," silver 
 was again demonetized, not surreptitiously, 
 as in 1873, but by virtue of an extra session 
 of Congress convened for that very purpose 
 by the President of the United States, at a 
 time when it was admitted that there was 
 "AN INCREASING SENTIMENT IN FA- 
 VOR OF GOVERNMENT LEGAL TEN- 
 DER NOTES AND SILVER COINAGE." 
 
 It was simply a question of more money 
 or more debt, and those who live ''by gam- 
 bling in money and public securities," by 
 virtue of the power of concentrated ill-gained 
 wealth again scored for more debt. The 
 memory of those who voted against the in- 
 iquity for which the 53rd Congress was in 
 extra session convened, are entitled to the
 
 THE CURSE OF THE GIANTS 79 
 
 same meed of veneration as the patriots who 
 bared their breasts to the foes of popular 
 government in the war for the Union, 1861- 
 1865. Their names and post office addresses 
 as they appear in the Congresional Eecord 
 will be found printed in an appendix to this 
 booklet. 
 
 THE PRESIDENTIAL ELECTION OF 
 
 1892. 
 
 The presidential election of 1892 with the 
 single exception of that of 1904, was the most 
 indifferent and apathetic presidential elec- 
 tion known in the history of American pol- 
 itics. In the light of subsequent events, the 
 reason is as plain as a pike-staff. Mr. Cleve- 
 land was elected in 1892 by the "still hunt'* 
 method. Had the republican party in 1892 
 adopted a platform advocating the free coin- 
 age of silver at the legal ratio of 16 to 1, and 
 waged a vigorous campaign for that policy 
 in the Congressional districts, Mr. Harrison 
 would have been triumphantly elected. In 
 all the history of American politics no polit- 
 ical party was ever favored with such a 
 golden or at least such a silver opportunity 
 to appeal with success to the people in be-
 
 80 THE CURSE OF THE GIANTS 
 
 half of a popular and rigliteous cause as that 
 offered to the republicans in 1892. 
 
 THE SAME ISSUE NOW. 
 
 In the last analysis of all political issues 
 the question of more money or less money 
 is involved. The issue paramount to all polit- 
 ical issues at the present time, and it is a 
 moral as well as political issue, is this: 
 SHALL THEEE BE MORE MONEY, 
 MOEE OF THE MEDIUM OF EX- 
 CHANGE, OR SHALL THERE BE MORE 
 PUBLIC DEBTS, MORE BONDS? 
 
 More debt means more bonds and human 
 bondage, more poverty, more degradation, 
 more force, more crime, more lawlessness, 
 more strikes, more police, more war, more in- 
 sanity and more suicides. These conditions 
 abound more at the present time than at any 
 other period of history because the people 
 are driven to the extreme of desperation by 
 overwhelming debt and its concomitant evils. 
 
 The late President McKinley was right 
 when he declared on the floor of the House 
 of Representatives 18 years ago, that a much 
 larger volume of money, the circulating me- 
 dium, should be put in circulation. IN ALL 
 THE HISTORY OF THE GOVERNMENT
 
 THE CURSE OF THE GIANTS 81 
 
 OF THE UNITED STATES THERE HAS 
 NEVER YET BEEN A TIME WHEN 
 THE VOLUME OF MONEY (UNITED 
 STATES MONEY) WAS ADEQUATE TO 
 THE NEEDS OF LEGITIMATE TRADE 
 AND COMMERCE ; THE GENERAL WEL- 
 FARE OF ALL THE PEOPLE. 
 
 THREE INFAMOUS CIRCULARS. 
 
 In July, 1862, the famous or infamous 
 ''Hazzard circular" was judiciously distrib- 
 uted among the aristocratic classes and pro- 
 fessional money lenders in general both in 
 Europe and America. It was written by an 
 agent of London capitalists and couched in 
 language as follows: 
 
 ' ' Slavery is likely to be abolished by the 
 war power, and chattel slaveiy destroyed. 
 This, I and my European friends are in 
 favor of, for slavery is but the owning of 
 labor and carries with it the care of the la- 
 borers, while the European plan led on by 
 England, is that capital shall control labor 
 by controlling wages. THIS CAN BE 
 DONE BY CONTROLLING THE 
 MONEY. THE GREAT DEBT THAT 
 CAPITALISTS WILL SEE TO IT 
 IS MADE OUT OF THE WAR MUST 
 BE USED AS A MEANS TO CONTROL 
 THE VOLUME OF MONEY. To accom-
 
 82 THE CURSE OF THE GIANTS 
 
 plish this, THE BONDS MUST BE USED 
 AS A BANKING BASIS. We are now 
 WAITING FOE THE SECEETARY OF 
 THE TEEASUEY TO MAKE THIS 
 EECOMMENDATION TO CONGEESS. 
 IT WILL NOT DO TO ALLOW THE 
 GEEENBACK, AS IT IS CALLED, TO 
 CIECULATE AS MONEY ANY 
 LENGTH OF TIME, AS WE CANNOT 
 CONTEOL THAT. BUT WE CAN CON- 
 TEOL THE BONDS, AND THEOUGH 
 THEM THE BANK ISSUES." 
 
 Fifteen years later, in October, 1877, a cir- 
 cular letter was issued to national bankers 
 in every state of the Union by the associated 
 bankers of New York, Boston and Philadel- 
 phia, signed by James Buell, Secretary, 247 
 Broadway, N. Y. That circular has since 
 been known in financial history as the ''Buell 
 Circular." It was written in these words: 
 
 "Dear Sir: — It is advisable to do all in 
 your power to sustain such prominent daily 
 and weekly newspapers, especially the ag- 
 ricultural and religious press, AS WILL 
 OPPOSE THE ISSUE OF GEEENBACK 
 PAPEE MONEY, and that you also 
 WITHHOLD PATRONAGE OE FA- 
 VOES FEOM ALL APPLICANTS WHO 
 AEE NOT WILLING TO OPPOSE THE 
 GOVEENMENT ISSUE OF MONEY. 
 Let the Government issue the coin and the
 
 THE CURSE OF THE GIANTS 83 
 
 banks issue the paper money of the coun- 
 try, for THEN WE CAN BETTER PRO- 
 TECT EACH OTHER. To repeal the law 
 creating national bank notes, or to restore 
 to circulation the Government issue of 
 money, WILL BE TO PROVIDE THE 
 PEOPLE WITH MONEY, AND WILL, 
 THEREFORE, SERIOUSLY AFFECT 
 YOUR INDIVIDUAL PROFIT AS 
 BANKERS AND LENDERS. SEE 
 YOUR CONGRESSMAN AT ONCE, AND 
 ENGAGE HIM TO SUPPORT OUR IN- 
 TERESTS THAT WE MAY CONTROL 
 LEGISLATION." 
 
 Wlien legislation cannot be secured by fair 
 and honorable means, by appealing openly 
 and honestly to the people, it can frequently 
 be secured by dishonorable means. There- 
 fore ''the gold party" consistent with their 
 determination to curtail the supply of United 
 States money, and knowing that that could 
 not be accomplished with the knowledge and 
 consent of the people, issued the famous 
 ''panic circular" of 1893. This circular was 
 deliberately designed to create a distress- 
 ing and blighting financial panic, and, of 
 course, it had the desired effect. Doubtless 
 thousands of people, honest but misguided 
 and misinformed, really believed that the
 
 84 THE CURSE OF THE GIANTS 
 
 business depression which was created by the 
 money trust immediately after the presi- 
 dential election of 1892, was caused in some 
 mysterious and unaccountable manner by an 
 oversupply of United States money. ''The 
 panic circular" was issued March 12, 1893, 
 just one week after Mr. Cleveland was in- 
 augurated. It appealed to the bondholding 
 classes generally to ''advocate an extra ses- 
 sion of Congress for the repeal 'uncondition- 
 ally' of the Sherman silver law." It was is- 
 sued directly from the American Bankers As- 
 sociation and addressed to all national banks 
 throughout the United States. It was in the 
 following exact words : 
 
 "Dear Sir: — The interests of national 
 bankers require immediate financial legis- 
 lation by Congress. Silver, silver certif- 
 icates and treasury notes must be retired 
 and national bank notes upon a gold basis 
 made the onlv monev. This will require 
 the authorization of 'from $500,000,01)0 to 
 $1,000,000,000 of new bonds (debts), as a 
 basis of circulation. You will at once re- 
 tire one-third of your circulation and call 
 in one-half of vour loans. BE CAREFUL 
 TO ]\rAKE A MONETARY STRING- 
 ENCY FELT AMONG YOUR PATRONS, 
 ESPECIALLY AMONG INFLUENTIAL 
 BUSINESS MEN. ADVOCATE AN EX-
 
 THE CURSE OF THE GIANTS 85 
 
 TEA SESSION OF CONGRESS TO RE- 
 PEAL THE PURCHASING CLAUSE 
 OF THE SHERMAN LAW, and act with 
 other banks of your city in securing a large 
 petition to Congress for its unconditional 
 repeal per accompanying form. USE 
 PERSONAL INFLUENCE WITH CON- 
 GRESSMEN, AND PARTICULARLY 
 LET YOUR WISHES BE KNOWN TO 
 YOUR SENATORS. The future life of 
 national banks as fixed and safe invest- 
 ments depends upon immediate action, as 
 THERE IS AN INCREASING SENTI- 
 MENT IN FAVOR OF GOVERNMENT 
 LEGAL TENDER NOTES AND SILVER 
 COINAGE." 
 
 Attention is again called to the 'fact that 
 "the gold party" were well aware that they 
 were deliberately engaging in an effort to 
 defeat the will of the people, and admit in the 
 closing sentence of the circular that there 
 was ''AN INCREASING SENTIMENT IN 
 FAVOR OF GOVERNMENT LEGAL TEN- 
 DER NOTES AND SILVER COINAGE." 
 
 SILVER DOLLARS, GREENBACKS AND 
 GOVERNMENT BONDS. 
 
 How to raise money with which to carry on 
 the war of the rebellion was the problem con- 
 fronting President Lincoln's administration
 
 S6 THE CURSE OF THE GIANTS 
 
 in the early sixties. The nation's extremity 
 was the capitalists' opportunity and in its 
 emergency the Government was compelled to 
 issue bonds which the capitalists were eager 
 to purchase paying for them in greenbacks. 
 Under one pretext or another, after the close 
 of the war, the great national debt was re- 
 newed, or ''refunded." That is to say the 
 bonds were exchanged for bonds of which the 
 terms and conditions were made different. 
 Generally speaking, all bonds of the United 
 States referred to in the debates in Congress 
 ]3ertaining to the remonetization of silver, in 
 1877 and 1878, contained the proviso that they 
 were to be paid in ''coin" of the stand- 
 ard value of July 14, 1870. They were word- 
 ed as follows: 
 
 "The United States of America are in- 
 debted to the bearer in the sum of $50. 
 
 "This bond is issued in accordance with 
 the provisions of an act of Congress en- 
 titled 'an act to authorize the refunding 
 of the national debt,' approved July 14, 
 1870, as amended by an act approved Jan- 
 uary 20, 1871, and is redeemable at the 
 pleasure of the United States, after the 
 first day of July, 1907, in coin of the stand- 
 ard value of the United States on said 
 July 14, 1870, with interest in such coin
 
 THE CURSE OF THE GIAXTS 87 
 
 from the day of the date hereof at the rate 
 of four per centum per anmim, payable 
 quarterly, on the first day of October, Jan- 
 uary, April, and July in each year. The 
 principal and interest are exempt from the 
 payment of all taxes or duties of the United 
 States, as well as from taxation^ in any 
 form by or under any state, municipality 
 or local authority." 
 
 The bondholders set up the claim that the 
 word ''coin" as expressed in the bonds was 
 not to be construed in its ordinary meaning 
 but that the bonds were really payable in 
 ''gold coin only." With just as much reason 
 they might have claimed they were to be paid 
 in silver coin only. 
 
 JOHN SHERMAN AEGUES THAT 
 THE GOVERNMENT BONDS SHOULD 
 BE PAID IN THE SAME KIND OP 
 MONEY THE GOVERNMENT RE- 
 CEIVED FOR THEM, NAMELY, 
 GREENBACKS. 
 
 (See Congressional Record, December 14, 
 1877, page 204.) 
 
 In a letter dated United States Senate 
 Chamber, Washington, D. C, March 20th, 
 1868, addressed to Hon. A. Mann, Jr., Brook- 
 lyn Heights, N. Y., John Sherman says: 
 "Dear Sir: — I was pleased to receive 
 your letter. My personal interests are the
 
 88 THE CURSE OF THE GIANTS 
 
 same as yours, but like you, I do not intend 
 to be influenced by them. My construction 
 of the law is the result of careful examina- 
 tion, and I feel quite sure an impartial 
 court would confirm it, if the case could be 
 tried before a court. I send you my views 
 as fully stated in a speech. Your idea 
 is that we purpose to repudiate or violate 
 a promise when we offer to redeem 'the 
 principal' in legal tender. I think the 
 bondholder violates his promise when he 
 refuses to take the same kind of money he 
 paid for the bonds. If the case is to be 
 tested by the law, I am right; if it is to 
 be tested by Jay Cook's advertisements, I 
 am wrong. I hate repudiation or any- 
 thing like it, but we ought not to be de- 
 terred from doing what is right by fear of 
 undeserved epithets. If under the law as 
 it stands, the holders of the five-twenties 
 can be paid in gold, then we are repudiators 
 if we propose to pay otherwise. If the 
 bondholder can legally demand only the 
 kind of money he paid, then HE is a repu- 
 diator and extortioner to demand money 
 more valuable than he gave. 
 
 Truly yours, 
 (Signed) John Sherman." 
 
 The act demonetizing silver was passed in 
 the closing days of the forty-second Con- 
 gress. It was entitled ''An act revising and 
 amending the laws relative to the mints, as-
 
 THE CURSE OF THE GIANTS 89 
 
 say offices and coinage of the United States.'* 
 It was known as House Bill number 2934, 
 and signed by General Grant, tben President 
 of the United States, February 12, 1873. 
 That General Grant did not even suspect that 
 the act he had signed destroyed silver as one 
 of the legal-tender coins is proved by his let- 
 ter to Mr. Cowdrey, dated October 3, 1873, 
 less than eight months after he had signed 
 the demonetizing act. The General writes 
 to Mr. Cowdrey as follows: 
 
 ' ' I wonder that silver is not already com- 
 ing into the market to supply the deficiency 
 in the circulating medium. * * * Ex- 
 perience has proved that it takes about 
 $40,000,000 of fractional currency to make 
 the small change necessary for the trans- 
 action of the business of the country. Sil- 
 ver will gradually take the place of this 
 currency, and, further, will become THE 
 STANDARD OF VALUES, which will be 
 hoarded in a small wav. I estimate that 
 it mil consume from $200,000,000 to $300,- 
 000,000 in time of this species of our cir- 
 culating medium. * * * j confess to a 
 desire to see a limited hoarding of money, 
 but I want to see a hoarding of something 
 THAT IS A STANDARD OF VALUE 
 THE WORLD OVER. SILVER IS 
 THIS. 
 
 ''Our mines are now producing almost
 
 90 THE CURSE OF THE GIANTS 
 
 unlimited amoimts of silver and it is be- 
 coming a question, what shall we do with 
 iU I suggest here a solution which will 
 answer for some years, to put it in circu- 
 lation, keeping it there until it is fixed, and 
 then we will find other markets." 
 
 For evidence that the Senators and Repre- 
 sentatives in Congress whose votes legalized 
 the demonetizing act, like the President who 
 signed the act, were innocent of any intention 
 of destroying silver as a monetary coin, see 
 debates in Congress at the extra session be- 
 ginning October 15, 1877, and extending 
 through the first regular session of the same 
 Congress during the winter of 1877-1878. 
 
 OHIO CALLS FOR RESTORATION. 
 
 Three years after the demonetizing act, at 
 its session in 1876, the General Assembly of 
 the State of Ohio adopted the following reso- 
 lution : 
 
 "Resolved by the General Assembly of 
 the State of Ohio, that common honesty to 
 the taxpayers, the letter and the spirit of 
 the contract under which the great body 
 of its indebtedness was assumed by the 
 United States, as well as true financial 
 wisdom, each and all, demand the restora- 
 tion of the silver dollar to its former rank 
 as lawful money."
 
 THE CURSE OF THE GIANTS 91 
 
 THE SENATE AND HOUSE OF REP- 
 RESENTATIVES REJECT ALL ARGU- 
 MENTS AND APPEALS OF THE GOLD 
 POWER AND DECLxiRE THAT NO 
 VIOLATION OF THE PUBLIC FAITH 
 OR THE RIGHTS OF THE PUBLIC 
 CREDITOR IS INVOLVED IN THE 
 PAYMENT OF GOVERNMENT BONDS 
 IN SILVER DOLLARS. 
 
 December 6, 1877, the following resolution 
 was introduced in the Senate of the United 
 States and passed by nearly two-thirds ma- 
 jority after eight weeks of stubborn opposi- 
 tion by "the gold party." The vote was 
 taken January 25, 1878, three days before 
 the Bland Silver Bill became the law of the 
 land. 
 
 •'Be it resolved by the Senate (the 
 House of Representatives concurring 
 therein) that all the bonds of the United 
 States issued or authorized to be issued un- 
 der the said acts of Congress hereinbefore 
 recited (the acts of July 14, 1870, and Jan- 
 uary 14, 1875) are payable, principal and 
 interest, at the option of the Government 
 of the United States, in silver dollars of 
 the coinage of the United States, contain- 
 ing 4]2Vo grains each of standard silver, 
 and that to restore to its coinage such sil-
 
 92 THE CURSE OF THE GIANTS 
 
 ver coins as a legal tender in payment of 
 said bonds, principal and interest, is not 
 in violation of the public faith, and not in 
 derogation of the rights of the public 
 creditor." 
 
 The same resolution was passed in the 
 House of Representatives three days later, 
 namely, on January 28, 1878. 
 
 The Bland Silver Bill was introduced in 
 the House of Representatives on November 
 5, 1877. Tt is a most notable circumstance 
 that this bill passed the House on the same 
 day it was introduced. It was amended by 
 the Senate and finally passed that body as 
 amended after the most bitter opposition 
 February 28, 1878. All on the same day, the 
 bill was vetoed by the President; again 
 passed both Houses of Congress, thus becom- 
 ing the law of the land February 28, 1878, 
 notwithstanding the executive veto. 
 
 For twelve years the Bland silver law con- 
 tinued in force. During all these years the 
 money power left no stone unturned to make 
 the law unpopular. They had succeeded in 
 rendering the bill less beneficial in its gen- 
 eral effects by the amendments they were 
 able to make while the bill was still pending 
 in Congress, but the baneful effects which 
 they had tried to make the people believe
 
 THE CURSE OF THE GIANTS • 93 
 
 wonld result if the bill was enacted as the 
 law of the land, it was very noticeabie, had 
 not been realized. On the contrary, the peo- 
 l^le realized that the coinage of silver into 
 United States money was beneficial to trade 
 and commerce, and, as expressed in ''the 
 panic circular," it was very evident that 
 ''THEKE WAS AN INCREASING SEN- 
 TIMENT IN FAVOR OF GOVERNMENT 
 LEGAL TENDER NOTES AND SILVER 
 COINAGE." 
 
 As elsewhere stated the Bland law was 
 superseded by the Sherman law in 1890. 
 There is ground for honest difference of opin- 
 ion among the advocates of exclusive United 
 States money as to whether or not the Sher- 
 man law was a better law for the common 
 people than the law of 1878. But the crown- 
 ing act of infamy came in 1893. When the 
 Sherman silver law had been in force barely 
 three years; after fifteen years of compara- 
 tive prosperity, in spite of all efforts to prove 
 that silver coinage was detrimental, and only 
 detrimental, that it would bring nothing but 
 adversity, at a time when the enemies of sil- 
 ver were obliged to admit that ''an increas- 
 ing sentiment" favoring the coinage of more 
 silver prevailed, then loursuant to the bank-
 
 94 THE CURSE OF THE GIANTS 
 
 ers' ''panic circular," the "proclamation" 
 was issued convening Congress in extra ses- 
 sion for the sole purpose of re2:)ealing ' ' uncon- 
 ditionally" the Sherman silver bill. And not- 
 withstanding the heroic efforts of the honest 
 representatives of the people in both Houses 
 of Congress, the bill WAS repealed uncondi- 
 tionally.
 
 THE CURSE OF THE GIANTS 95 
 
 Appendix A. 
 
 ASTONISHING FACTS RELATING TO 
 RAILROAD REPORTS. 
 
 It is very difficult to get accurate and re- 
 liable information concerning the question of 
 profits realized from railway transportation. 
 From the foregoing pages it appears that re- 
 ports of railroads are quite generally *' noto- 
 riously incorrect, and systematically made so 
 in many cases, for the purpose of concealing 
 from the public violations of law and want of 
 fidelity to official trust." ''Many of them 
 are made with consummate skill to deceive 
 both the people and the stockholders, while 
 others are drawn so loosely as to excite only 
 ridicule and disgust," and officials have de- 
 clared that "no reliance whatever can be 
 placed upon any general conclusions as to 
 cost and profit as exhibited by these reports." 
 
 Discarding therefore all conclusions upon 
 which "no reliance whatever can be placed," 
 and reasoning only from well authenticated 
 facts, further study into this practically un- 
 explored field will be well worth while. From
 
 96 THE CURSE OF THE GIANTS 
 
 the annual report of the New York Central 
 and Hudson River Railroad Company for 
 the year ending June 30, 1906, as officially 
 published in 1907, by the New York State 
 Board of Railroad Commissioners, it ap- 
 pears the total income of the company from 
 all sources whatsoever was $95,865,078.24, 
 namely : 
 
 From fi-eight traffic $53,551,121.63 
 
 From passenger traffic 26,624,370.20 
 
 From transportation of U. S. mail 2,993,002.91 
 
 From express traffic 3,018,164.48 
 
 From bag-gage and storage 265,784.83 
 
 From milk 65,973.30 
 
 From parcels 70,459.70 
 
 From newspapers 33,793.52 
 
 From rentals 2,260,811.05 
 
 From telegraph service 15,565.45 
 
 From interest 1,485,796.73 
 
 From dividends 5,'220,104.95 
 
 From all other sources 260,129.49 
 
 $95,865,078.24 
 Operating expenses, exclusive of taxes $63,580,165.71 
 
 Gross income from all sources $32,284,912.53 
 
 The company reports that during the year 
 it carried 1,523,579,759 passengers a distance 
 of one mile, and 8,542,831,756 tons of freight 
 a distance of one mile. Calculating the in- 
 come of freight at 63 hundredths of a cent per 
 ton per mile, and the income from passen- 
 gers at two cents per mile, with no allow- 
 ance for the extra income from passen- 
 gers riding in palace cars, the total in- 
 come from freight and passenger traffic 
 would be $84,291,435.24, or $4,115,943.41 more
 
 THE CURSE OF THE GIANTS 97 
 
 than tlie income as appears by the company's 
 report. On the excellent and level tracks of 
 this road, 3,000 tons of freight can be moved 
 a distance of 150 miles in 60 freight cars. The 
 cost of the trip for wages of train crew and 
 fuel only will not exceed $50. Five hundred 
 passengers can be carried from New York to 
 Albany in less time than four hours at a cost 
 not exceeding $45 for fuel, wages of train 
 crew and all other necessary trip expenses, 
 allowing the distance to be 150 miles. At the 
 same cost per ton per mile and the same cost 
 per jiassenger per mile, all the freight and 
 all the passengers carried by the company 
 during the entire year would cost the com- 
 pany $1,861,900 or $4,354,710.59 less than the 
 company claims to have paid for the single 
 item of fuel. 
 
 The repairs of track all told is reported at 
 nearly $12,000,000 or more than $3,300 for 
 each mile of track covered by the report. 
 The repairs to locomotives average above 
 $2,550 for each locomotive, some of which 
 were bought new during the year. In addi- 
 tion to this generous item of repairs the com- 
 pany claims to have paid to engine and round- 
 house men the enormous sum of $5,882,688.93. 
 According to the report of the same company
 
 98 THE CURSE OF THE GIANTS 
 
 to the State of Pennsylvania for the same 
 period of time as appears by the official re- 
 port of the Secretary of Internal Affairs of 
 that state, the number of employes for the 
 year was 54,723 and the wages paid $37,996,- 
 114. This is 5,468 more men and $4,007,594 
 more wages paid than the same company re- 
 ports to the New York state officials, for the 
 same year, the year ending June 30, 1906, and 
 the lesser amount, the wages claimed to have 
 been paid according to the report to the New 
 York authorities, namely, $33,998,520.69 is 
 $7,364,150.49 more money than the company 
 reports as its entire income from its passen- 
 ger traffic during the year. Considering the 
 foregoing facts, further inquiry is at least 
 permissible. The company reports 8,500,000,- 
 000 of tons of freight moved a distance of 
 one mile. The Pennsylvania Eailroad Com- 
 pany reports more than double that number 
 of tons carried a distance of one mile on their 
 tracks east of Pittsburg, namely, 17,853,455,- 
 006 tons. 
 
 No person of ordinary intelligence riding 
 over the Central lines from New York to Buf- 
 falo can fail to be most profoundly impressed 
 by the sight of ponderous freight trains mov- 
 ing in every direction, north, south, east and
 
 THE CURSE OF THE GIANTS 99 
 
 west. An official time table issued by the 
 Central road, states that "there are on an 
 average 400 regular passenger trains arriv- 
 ing at and departing from the Grand Central 
 depot each business day of the year; fifteen 
 trains to Buffalo and fourteen to Niagara 
 Falls." ''Over these tracks pass a large 
 share of the enormous traffic to and from the 
 great commercial ports of New York and 
 Boston." 
 
 ''The ponderous locomotives haul over a 
 large portion of this system from 80 to 100 
 loaded cars to the train; many of these cars 
 will hold 1,000 bushels of grain or 110,000 
 pounds (55 tons), of coal each, or 60,000 
 pounds of merchandise. During the busy sea- 
 son THERE ARE SEVERAL HUNDRED 
 FREIGHT TRAINS PER DAY PASSING 
 OVER THESE TRACKS, forming an end- 
 less chain of traffic between the great com- 
 mercial and industrial and agricultural cen- 
 ters of the west and New York city and Bos- 
 ton." 
 
 "An average of 100 trains per day, each 
 train composed of 80 cars, and each car load- 
 ed 50 tons to the car, will haul in one year six 
 billion tons more than reported by the Cen-
 
 100 THE CURSE OF THE GIANTS 
 
 tral road, namely 14,600,000,000 tons, a dis- 
 tance of one mile. 
 
 ' ' The Central reports that it costs the com- 
 pany for 'water supply for locomotives' dur- 
 ing the year $383,440.40 or considerably more 
 than $1,000 per day, Sundays and holidays in- 
 cluded. Considering the enormous quantity 
 of water that can be purchased for more than 
 one-third of a million dollars, people of an 
 enquiring turn of mind can hardly help won- 
 dering whether the company did not pay too 
 much, or whether a lesser quantity would not 
 have answered all purposes. 
 
 "The cost for 'oil, tallow and waste for lo- 
 comotives ' is reported at nearly $800 per day, 
 $289,601.43 for the year. 'Other supplies for 
 locomotives' are reported amounting to 
 $388.82 per day, $123,669.75 for the year." 
 "Stationery and printing" is said to have 
 cost more than $1,200 per day, nearly half 
 a million ($440,055.02) for the year. The 
 "other expenses" amount to the insignificant 
 or significant, sum of $2,679.09 per day, or 
 nearly a million ($977,867.84) for the year. 
 
 If, as reported, the amount paid in salaries 
 and wages was $33,988,520.69, the amount 
 might have been divided among the officers 
 and employes as follows :
 
 THE CURSE OF THE GIANTS 101 
 
 25 officers, each $200,000 or four times the 
 
 salary of the President of tlie United 
 
 States $ 5,000,000 
 
 20 others. $10,000 each 200,000 
 
 50 others, 5,000 " 250,000 
 
 100 others, 3,000 " 300,000 
 
 300 others, 2,000 " 600,000 
 
 1000 others, 1,500 " 1,500,000 
 
 1000 others, 1,200 " 1,200,000 
 
 1000 others, 1,000 " 1,000,000 
 
 1000 others, 800 " 800,000 
 
 5000 others, 600 " 3,000,000 
 
 39770 others, 480 " 19,089,600 
 
 Amount saved for benefit of stocli-holders. . . . 1,048,920 
 
 $33,988,520 
 
 For operating its lines east of Pittsburg 
 only, the Pennsylvania Railroad reports as 
 having paid in salaries and wages during the 
 year ending June 30, 1906, more than 70 mil- 
 lions of dollars ($70,562,324). It reports its 
 entire income from passenger traffic over all 
 lines east of Pittsburg to be $28,176,777. 
 
 Excess of tvages reported paid over the 
 entire income from passenger traffic, forty- 
 two millions, three hundred and eighty-five 
 thousand, five hundred and forty-five dollars. 
 
 It reports the number of persons employed 
 as 103,796, which is 2,643 persons for each 
 hundred miles of its lines or about twice the 
 number employed by the New York Central 
 and Hudson River Railroad Company for 
 each hundred miles of track and more than 
 four times the number employed for each 
 hundred miles of track on all lines of the 
 United States, according to the statistical re^
 
 102 THE CURSE OF THE GIANTS 
 
 port of tlie Inter State Commerce Commis- 
 sion for the year ending June 30, 1905. , 
 Allowing every person on the payroll a full 
 year's salary the number of employes might 
 have been paid as follows with a saving of 
 $4,961,324 for the stock-holders. 
 
 20 officers $200,000 each $ 4,000,000 
 
 soothers, 100.000 " 2,000,000 
 
 20 others, 50,000 " 1,000,000 
 
 20 others, 10,000 " 200,000 
 
 100 others, 5,000 " 500,000 
 
 200 others, 3,000 " 600,000 
 
 600 others, 2,000 " 1,200,000 
 
 1500 others, 1,500 " 2,250,000 
 
 1500 others, 1,200 " 1,800,000 
 
 1500 others, 1,000 " 1,500,000 
 
 5000 others, SOO " 4,000,000 
 
 8000 others, 600 " 4,800,000 
 
 40000 others, 500 " 20,000,000 
 
 45316 others, 480 " 21,751,000 
 
 Saved for stock-holders 4,961,324 
 
 103,796 $70,562,324 
 
 KEDUCE THE PASSENGER FARE. 
 
 Can railway companies carry passengers 
 at a rate of one cent a mile with a fair margin 
 of profit? AVlien railway officials affirm that 
 a rate of two cents is unremunerative, why 
 should the affirmation be doubted 1 
 
 During all the liistory of steam railway 
 transportation in America, covering a period 
 of three-(iuarters of a century, no data has 
 been established, or at least made accessible 
 to the public, from which accurate conclu- 
 sions may be deducted. 
 
 So long ago as 1855, it was reported to the
 
 THE CURSE OF THE GIANTS 103 
 
 New York legislature concerning the official 
 reports of steam railway transportation com- 
 panies, that "no reliance whatever can be 
 placed upon any general conclusions as to 
 cost and profit of railway transportation 
 as exhibited by these reports." On the same 
 occasion it was further reported that official 
 railway reports were frequently "notorious- 
 ly incorrect and in many cases systematically 
 made so for the purpose of concealing from 
 the public violations of law and want of 
 fidelity to their trusts." 
 
 See Senate document, number 35, N. Y., 
 1855. 
 
 Twenty-eight years later, 1883, the same 
 body was informed that "many of these re- 
 ports (the official reports of railway offi- 
 cials) are made with consummate skill to de- 
 ceive both the stockholders and the people, 
 while others are so loosely drawn as to ex- 
 cite only ridicule and disgust." See annual 
 report of Railroad Commissioners of the 
 State of New York, 1883. 
 
 The first annual report of the New York 
 Public Service Commission, 1908, states on 
 page 37, that "the railroads themselves have 
 no settled principles derived from the con- 
 sideration of legitimate facts upon which pas-
 
 104 THE CURSE OF THE GIANTS 
 
 senger rates should be cletermiued. Ap- 
 parently tlie method of fixing fares generally 
 adopted by them is mainly arbitrary." 
 
 It is safe to say that no person living will 
 attempt to demonstrate by incontrovertible 
 facts and figures just what passenger rates 
 may be necessary to pay, say ten per cent, on 
 the capital actually invested or the capital 
 necessary to construct and equip a first class 
 modern double track railway. Reasoning, 
 however, from well established data, it seems 
 more than probable that a rate of less than 
 two cents a mile for passenger traffic must 
 be as remunerative to say the least as the 
 minimum rates charged for moving freight, 
 namely, a rate as low and sometimes lower 
 than three-tenths of a cent per ton per mile. 
 
 For instance : a train of fifty freight cars 
 making a trip from Milwaukee to New York, 
 each car loaded with twenty tons of grain or 
 grain products, 1,000 tons, at a rate of less 
 than three-tenths of a cent per ton per mile 
 (2.95 mills per ton per mile) will earn $3,140. 
 A train of eight ordinary passenger coaches 
 and two baggage cars will comfortably carry 
 360 passengers weighing, baggage included, 
 50 tons and making the same trip running 
 over the same tracks from Milwaukee to New
 
 THE CURSE OF THE GIANTS 105 
 
 York, will earn $3,834 at a rate of only one 
 cent a mile. The eight passenger coaches rep- 
 resent an investment of about $8,000 more 
 than the value of the 50 freight cars. Making 
 proper allowance for this difference of invest- 
 ment and also the difference in the cost of fuel 
 for moving 1,000 tons of freight, the earnings 
 of the eight passenger coaches at one cent per 
 passenger per mile, exceed the earnings of the 
 fifty freight cars at the minimum rate, by 
 fully $700. 
 
 According to the annual report of the New 
 York Central and Hudson River Eailroad 
 Company for the year ending June 30, 1906, 
 the entire passenger mileage of that company 
 for the year was equal to 15,235,798 pas- 
 sengers, carried an average distance of 100 
 miles each. Had that company received from 
 each passenger precisely two cents for each 
 mile traveled, no more and no less, their total 
 incomefrom passenger traffic would have been 
 $30,471,596, or just $3,847,225.80 more than 
 the company claims to have received as its 
 total income from passenger traffic. It ap- 
 pears, therefore, that the published report 
 needs to be revised, corrected and explained 
 or otherwise that company actually does 
 carry passengers for a decimal less than one
 
 106 THE CURSE OF THE GIANTS 
 
 and three-fourths cents per passenger per 
 
 mile. 
 
 Had the rate per ton per mile which the 
 company received from its passenger traffic 
 been the same as the rate charged for mov- 
 ing grain or the products of grain from 
 Milwaukee to New York, namely, $3.14 a ton 
 for a distance of 1,065 miles, their income 
 from passenger traffic would have been 
 $561,820.13, allowing the weight of each pas- 
 senger to average 250 pounds, including bag- 
 gage. It cannot be argued that passengers 
 should be carried at the same rate per ton 
 per mile that is charged for moving freight, 
 for very obvious reasons, yet, nevertheless, 
 it will be hard to convince people of a log- 
 ical turn of mind that it is necessary to 
 charge a passenger weigliing only 100 pounds 
 $21.70 (or $27.05 if the passenger rides in a 
 palace car) for riding the same distance that 
 100 pounds of flour is carried for a fraction 
 less than sixteen cents. 
 
 Assuming that each passenger had paid 
 only one cent for each mile traveled, the in- 
 come from 15,235,798 passengers riding 100 
 miles each ($1 a passenger) would be exact- 
 ly $15,235,798. Leaving entirely out of con- 
 sideration for the present all income from
 
 THE CURSE OF THE GIANTS 107 
 
 freight traffic and considering only such 
 trackage, buildings and equipment as appears 
 to be necessary to carry about 46,000 pas- 
 sengers a day, from the meager data acces- 
 sible to the public it will be interesting and 
 profitable to find whether the company would 
 make or lose by its passenger traffic only, 
 charging passengers at the rate of not more 
 than one cent a mile. 
 
 Trains of eight coaches each leaving op- 
 posite directions, opposite points 100 miles 
 distant, every 20 minutes, each train carrying 
 320 passengers, will carry 16,819,200 pas- 
 sengers a distance of 100 miles each during 
 the year, and the revenue or earnings at one 
 cent a mile would be just $16,819,200. A 
 train of eight passenger coaches will carry 
 320 passengers comfortably. The trip ex- 
 pense or cost of moving a train of eight pas- 
 senger coaches a distance of 100 miles, in- 
 cluding only fuel, cost of tickets, wages of 
 train crew and all other necessary trip ex- 
 penses, will not exceed $40. It appears, 
 therefore, that the combined cost of fuel, 
 printing tickets and wages of trainmen dur- 
 ing the year will not exceed $2,102,400. Al- 
 lowing each train of eight passenger coaches 
 to make an average of four 100-mile trips
 
 108 THE CURSE OF THE GIANTS 
 
 each 24 hours, we find it necessary to keep 
 in constant operation not less than 324 
 coaches and baggage cars and 36 locomo- 
 tives. Allowing, also, for a safe margin for 
 contingencies, an equipment of say 400 
 coaches and 75 locomotives would seem to 
 be ample. 
 
 Considering all other expenses, together 
 with the total trip expenses for the year, the 
 result may be estimated about as follows: 
 
 Repairs of engines and cars, including wages 
 
 of men employed in round houses $ 300,000 
 
 Repairs of track 200,000 
 
 Repairs to buildings 30,000 
 
 Injuries to persons 900,000 
 
 Supplies for engines, oil, water, waste and all 
 
 otlier supplies 60,000 
 
 Fuel and lights for depots 6,000 
 
 Fuel, tickets, wages of train crews and other 
 
 expenses as above calculated 2,102,400 
 
 Wages of clerks and ticket sellers 108,000 
 
 Wages of track walkers and switchmen 150,000 
 
 Salaries of officers 250,000 
 
 All other expenses say, $1,000 per day 365,000 
 
 $ 4,471.400 
 Add 20% for possible contingencies 894,280 
 
 Total operating expenses $ 5,365,680 
 
 Excess of income over operating expenses. .. .$11,453,520 
 
 Total income $16,819,200 
 
 It appears then, according to the above es- 
 timate, that the margin of earnings from car- 
 rying passengers at a rate of one cent a mile, 
 over and above operating expenses, is more 
 than 16% on a capital of $70,000,000, or suf- 
 ficient to pay a dividend of 15% on that 
 amount of capital and to carry over a sur- 
 
 c>
 
 THE CURSE OF THE GIANTS 109 
 
 plus of undivided profits of nearly a million 
 of dollars. This estimate of operating ex- 
 penses might be quite materially reduced if 
 the item of expenses for salaries of officers, 
 and possibly some other items, is equally 
 chargeable to both freight and passenger traf- 
 fic. 
 
 It is not claimed that the above expense 
 items are anything more or less than esti- 
 mates. They are estimates made however by 
 a capable statistician who realizes that they 
 will be captiously criticized, or, as Mr. Law- 
 son says, ''pawed over" by the system, and 
 all that concourse of people who have noth- 
 ing but contempt for those who blaze the way 
 for a more perfect and equitable economic 
 order of public affairs. 
 
 Some of the items will not admit of any ma- 
 terial increase, and some of them, no doubt, 
 if the actual figures could be established, will 
 be found overestimates rather than underes- 
 timates. In the absence of any official data 
 however upon which any "reliance whatever 
 can be placed,", the estimated result may be 
 taken as a basis of calculation for more scien- 
 tific research, and, peradventure, if the total 
 estimate of operating expenses might be 
 slightly increased (an unlikely contingency),
 
 110 THE CURSE OF THE GIANTS 
 
 it may be pointed out that at least a reason- 
 able return on capital actually invested would 
 be realized if the actual expenses were found 
 to he double the estimated expenses. 
 
 The largest item in the estimate of ex- 
 penses next to wages and fuel, namely, $900,- 
 000, for injuries to persons, is $6,785.51 more 
 than the actual aggregate expenditure for in- 
 juries reported by the New York Central and 
 Hudson River Railroad Company for the year 
 ending June 30, 1906. If it should be claimed 
 that the sum of $250,000 for salaries of of- 
 ficers, an average of $10,000 per year for 25 
 persons is not a reasonable allowance, it is 
 answered that more capable management 
 could be obtained for less money. Every in- 
 dividual of the 25 or more officers and di- 
 rectors of the New York Central and Hudson 
 River Railroad Company is an officer or di- 
 rector in from 20 to 40 different corporations 
 or financial institutions, and one of them 
 draws a salary of $8,000 per annum for a 
 very few days' service as a Senator of the 
 United States. Probably not one of them de- 
 votes his energies exclusively to the railway 
 businessi "Absentee management" is an 
 evil that stockholders of this corporation have 
 frequent cause to complain of. It has been
 
 THE CURSE OF THE GL\NTS 111 
 
 said that '^the Central system" is ''directed 
 from steam vachts in the Mediterranean, and 
 the race courses of Great Britain and the con- 
 tinent. ' * 
 
 Is seventy million dollars a sufficient 
 amount of capital to construct 300 miles of 
 first class modern double track railway with 
 buildings, properly equipped to carry 46,000 
 passengers daily? The New York Central 
 and Hudson River Railroad Company reports 
 the ''grand total cost of road and equipment" 
 of that road up to June 30, 1906, to be 
 $248,446.51 per mile of road. It may be 
 safely concluded that the actual necessary 
 cost is less rather than more than the sum 
 reported. Included in this grand total with- 
 out question are many extravagant, not to say 
 useless, expenditures. The cost of the equip- 
 ment necessary to move hundreds of thou- 
 sands of tons of freight daily; hundreds of 
 locomotives and scores of thousands of 
 freight cars are also included. Seventy, 
 millions of dollars for 300 miles averages 
 only about $15,000 per mile less than the 
 grand total of roadway buildings and equip- 
 ment claimed to have been expended by the 
 Central system and is doubtless amjDle cap- 
 ital to construct 300 miles of double track
 
 112 THE CURSE OF THE GIANTS 
 
 roadway with the necessary stations and 
 abundantly equip the same with all the roll- 
 ing stock necessary to carry 46,000 passen- 
 gers every day in the year. 
 
 It may be observed that the above method 
 of calculation considers a road 300 miles in 
 length with the traffic assumed to be concen- 
 trated on a trackage of 100 miles. This 
 method was adopted for the purpose of tak- 
 ing a simple and easily comprehended proc- 
 ess of calculation. Moreover, it serves to call 
 attention to the fact that all the travel night 
 and day over the principle lines in the most 
 populous section of the United States, in- 
 cluding all the trains to and from New York 
 City, over the tracks of the Central and Hud- 
 son River Road, commutation and otherwise, 
 the West Shore, the New York and Harlem; 
 all trains to and from Albany and Troy, Buf- 
 falo, Rochester and all the other great cities 
 along the Central-Hudson River lines, all 
 trains on the Rome, Watertown and Ogdens- 
 burg and all trains to and from Boston over 
 the Boston and Albany Road; some 20 odd 
 roads all told, with trains running every hour, 
 night and day, is reported to be not more 
 than could be carried in ordinary trains of 
 eight passenger coaches on a line not more
 
 THE CURSE OF THE GIANTS 113 
 
 than 100 miles in length ; not one of the cars 
 filled to its full capacity, and not less than 
 20 full minutes elapsing between the depart- 
 ure of each train. 
 
 In still more general and comprehensive 
 language the argument might be summed up 
 in these words : 
 
 On a track not more than 300 miles in 
 length an average of 46,000 passengers per 
 day, traveling an average distance of 100 
 miles each, will yield a yearly earning of 
 $16,819,200, at a rate of only one cent a mile. 
 If the operating expenses, including all re- 
 pairs, damages to persons and salaries of 
 officers, does not exceed ten million dollars 
 during the year, the margin of revenue is 
 sufficient to pay six per cent on a capitaliza- 
 tion of seventy million dollars and still leave 
 a surplus of more than two and one-half 
 million dollars from which to pay taxes and 
 accumulate undivided profits.
 
 114 THE CURSE OF THE GIANTS 
 
 Appendix B. 
 
 SENATORS AND REPRESENTATIVES 
 IN CONGRESS WHO VOTED AGAINST 
 THE REPEAL OF THE SHERMAN 
 SILVER BILL 
 
 SENATORS. (Vote taken October 30th, 1893.) 
 
 William v. Allen, Madison, Nebraska. 
 William B. Bate, Nashville, Tennessee. 
 James H. Berry, Bentonville, Arkansas. 
 Joseph C. S. Blackburn, Versailles, Kentucky. 
 Matthew C. Butler, Edgefield, S. C. 
 Wilkinson Call, Jacksonville, P'lorida. 
 J. Donald Cameron, Harrisburg, Pa. 
 Francs M. Cockrell, Warrensburg, Mo. 
 Richard Coke, Waco, Texas. 
 John W. Daniel, Lynchburg, Virginia. 
 Fred T. Dubois, Blackfoot, Idaho. 
 James Z. George, Carrollton, Miss. 
 Isham G. Harris, Memphis, Tenn. 
 John I,. M. Irby, Laurens, S. C. 
 James K. Jones, Washington, Ark. 
 John P. Jones, Gold Hill, Nevada. 
 James H. Kyle, Aberdeen, So. Dak. 
 John Martin, Topeka, Kansas. 
 Samuel Pasco, Monticello, Florida. 
 William Alfred PefCer, Topeka. Kas. 
 George C. Perkins, Oakland, Cal. 
 Richard F. Pettigrew, Sioux Falls, So. Dak. 
 Thomas C. Power, Helena, Montana. 
 James L. Pugh, Eufaula, Alabama. 
 William N. Roach, Larrimore, North Dakota. 
 George L. Shoup, Salmon City, Idaho. 
 William M. Stewart, Carson City, Nevada. 
 Henry M. Teller, Central City. Colorado. 
 Zebulon B. Vance, Charlotte, North Carolina. 
 George Graham Vest, Kansas City, Mo. 
 Edward C. Walthall, Grenada, Miss. 
 Edward O. Wolcott, Denver, Colorado. 
 
 REPRESENTATIVES. (Vote taken AuETUat 28th, 1893.) 
 
 Jo Abbott, Hillsboro, Texas. 
 David D. Aitken, Flint, Michigan. 
 Sydenham B. Alexander, Charlotte, N. C. 
 John M. Allen, Tupelo, Mis.s. 
 Marshall Arnold, Benton, Mo. 
 Joseph W. Bailey, Gainsville, Texas.
 
 THE CURSE OF THE GIANTS 115 
 
 William Baker, Lincoln, Kansas. 
 
 ?-?l„ , • T?^?.**^,'";^^'^' Fayette, Alabama. 
 
 Charles K. Bell, Fort Worth, Texas. 
 
 John C. Bell, Montrose, Colorado. 
 
 Newton C. Blanchard, Shreveport, La 
 
 Richard P. Bland, Lebanon, Mo. 
 
 Ha dor E. Boen, Fergus Falls, Minn. 
 
 William H. Bower, Lenoir, N. C. 
 
 William W. Bowers, San Diego, Cal. 
 
 William A. B. Branch, V/ashington N C 
 
 Case Broderick, Holton, Kansas 
 
 William Jennings Bryan, Lincoln, Nebraska. 
 
 Daniel D. Burnes, St. Joseph, Mo " 
 
 Anthony Caminetti, Jackson, Cal 
 
 Joseph G. Cannon, Danville, Illinola. 
 , Champ Clark, Bowling Green, Mo 
 
 James E. Cobb, Tuskegee, Alabama 
 
 Henry A. Coffeen, Sheridan, Wyoming. 
 
 S. B. Cooper, Woodville, Texas. 
 
 Nicholas N. Cox, Franklin, Tenn. 
 
 ^.'}}'^^ ^ Crawford, Waynesvllle, N. C. 
 
 ^u^'? B. Culberson, Jefferson, Texas. 
 
 Charles Curtis, Topeka. Kansas. 
 
 John Davis, Junction City, Kas 
 
 gayW A. De Armond, Butler, Mo. 
 
 M^jl^^'? ^, Denson, Gadsden, Alabama. 
 
 Hugh A. Dlnsmore, Fayetteville, Ark. 
 
 Alexander MDockery, Gallatin, Mo. 
 
 William R. Ellis, Heppner, Oregon. 
 
 William T. Ellis, Owensboro, Ky. 
 
 Benjamin A. Enlo, Jackson, Tenn. 
 
 James F. Epes, Blackston, Va 
 
 George W. Fithian, Newton, 111. 
 
 Edward H. Funston, lola, Kansas. 
 
 Robert W. Ryan, Marshfleld, Mo. 
 
 Isaac H. Goodnight, Franklin, Ky. 
 
 Benjamin F. Grady, Wallace, N. C. 
 
 A. L. Hager, Greenfield, Iowa. 
 
 Eugene J. Hainer, Aurora, Nebraska. 
 
 Osee Matson Hall, Red Wing, Mo 
 
 William A. Harris, Linwood, Kas. 
 
 Charles S. Hartman, Bozeman, Montana. 
 
 William H. Hatch, Hannibal, Mo. 
 
 John T, Heard, Sedalia. Mo. 
 
 John S. Henderson, Salisbury, N C 
 
 William P Hepburn, Clarinda, Iowa. 
 
 Benjamin Herman, Roseburg, Oregon. 
 
 Samuel G. Hilborn, Oakland, Cal 
 
 Charles E. Hooker, .Jackson, Miss. 
 
 Albert C Hopkins, Lock Haven, Pa. 
 
 T. J. Hudson, Fredonia, Kas. 
 
 Joseph a Hutcheson, Houston, Texas. 
 
 George P Ikert, East Liverpool. Ohio. 
 
 William A. Jones, Warsaw, Va. 
 
 Omer M. Kem, Broken Bow, Nebraska 
 
 Constantine B. Kilgore, Wells Point, Texas. 
 
 John C. Kyle, Sardis, Miss. 
 
 Edward Lane, Hillsboro, 111 
 
 Asbury C. Latimer, Belton S C 
 
 Leonldas F. Livingston, Kings, Georgia.
 
 116 THE CURSE OF THE GIANTS 
 
 Eugene F. Loud, San Francisco, Cal. 
 William V. Lucas, Hot Springs, So. Dak. 
 John W. Maddox, Rome, Ga. 
 James G. Maguire, San Francisco, Cal. 
 Stephen R. Mallory, Pensacola, Fla. 
 Benjamin F. Marsh, Warsaw, 111 . 
 Phillip D. McCulloch, Jr., Marianna, Ark. 
 James C. McDearmon, Trenton, Tenn. 
 John L. McLaurin, Bennettville, S. C. 
 Thomas C. McRea, Prescott, Ark. 
 William A. McKeighan, Red Cloud, Neb. 
 George D. Meiklejohn, Fullerton, Neb. 
 Hermando D. Money, Carrollton, Miss. 
 Charles H. Morgan, Lamar, Mo. 
 Charles L. Moses, Turin, Ga. 
 George W. Murray, Sumpter, S. C. 
 Robert Neill, Batesville, Ark. 
 Francis G. Newlands, Reno, Nevada. 
 Lafe Pence. Denver, Colorado. 
 John A. Picklor, Faulkton, So. Dak. 
 James D. Richardson, Murfreesboro, Tenn. 
 Gaston A. Robbins, Selma, Alabama. 
 Samuel M. Robertson, Baton Rouge, La. 
 Joseph D. Sayers, Bastrop, Texas. 
 Joseph C. Sibley, Franklin, Pa. 
 Jerrv Simpson, Medicine Lodge, Kas. 
 George W. Smith, Murphysboro, ni. 
 Henrv C. Snodgrass, Sparta, Tenn. 
 Jesse' F. Stallings. Greenville. Alabama. 
 Thomas P. Stockdale, Summit, Miss. 
 Thomas J. Strait, Lancaster, S. C. 
 Willis Sweet, Moscow, Idaho. 
 John C. Tarnsney, Kansas City, Mo. 
 Farnish C. Tate, Jasper, Georgia. 
 Alfred A. Tavlor, Johnson City, Tenn. 
 William L. Terry, Little Rock, Ark. 
 Joseph Wheeler, Wheeler. Alabama. 
 James R. Williams, Carmi, 111. 
 John S. Williams, Yazoo City, Miss. 
 John L. Wilson, Spokane, Washington. 
 Fred A. Woodard, Wilson, N. C.
 
 
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