Industrial Revolution

Conditions were not satisfactory at the beginning of the industrial revolution. The social system was not set up to accommodate the massive influx of immigrants. Many who could not find work were forced with the decision to join the military or turn to begging and prostitution. or instance! in the "even #ears$ %ar! &!'&( )ritish sailors were killed in battle while &**!+,- died of disease or were missing. "adler Report &-*( . anti/capitalist 0anti/free market1! politically motivated Michael "adler! a radical Tory of the )ritish parliament! wanted to shorten the workday to ten hours. 2e was sent to investigate the working conditions on factories. 2is accounts consisted of 3children beaten into deformity! and other conditions of brutality! degradation! and oppression4 which reduced the worker to virtual slavery. 5overty in &-th century was widespread and horrendous. It6s the main reason that so many people fled 7urope to come to 8merica 0the 9ew %orld1. In &+th century 7ngland almost half the entire population subsisted below the poverty level: in other words they earned less than what it cost to buy bread or some other food to feed themselves. The reasons for much of this poverty can be attributed to ;uilds! slavery! Corn <aws! 8lcohol! Taxes. Corn laws were in juxtaposition to the sale of grain which was on land owned predominantly by wealthy aristocrats.

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In the feudal system! serfs owed military service to their lord and were legally tied to the land owned by a lord who was judge! jury! and executioner. 9ot unlike today where people are legally tied to their land by mortgages and government that is increasingly centrali=ing power.

8 tax on windows in &>?> caused many windows to be boarded up which restricted the flow of fresh air and sunlight. 5erhaps the worst indicator was the death rate of the Irish! most of whom lived in slums! in the mid &-th century. The average life expectancy was &? years . whereas the average life expectancy of an 8merican slave was *> years. uel and clothing were in short supply. Many people starved to death or died from malnutrition. 8ccording to a report in rance in&>>( 3 amine this year has put an end to over ten thousand families and forced a third of the inhabitants to eat wild plants! some people ate human flesh.4 The famine of &>?>/?+ in inland killed a third of the population. The ree Market 07conomic Individualism1 Men form government to protect themselves from private criminals and they formulate a Constitution to protect themselves from government. ree market Capitalism re@uires a universal ban on the initiation of force. This includes government. If freedom is to be protected! government must be severely limited.

Aoseph 8ddison 07nglish playwright and politician1 3There are not more useful members in a commonwealth than merchants because they create wealth! provide productive employment! and engage in the peaceful trade which knits mankind together in a mutual intercourse of good offices.4 Boltaire . 37nter the <ondon stock exchange and you witness a place more respectable than many a court! for men here of all races and religions harmoniously and without bigotry engaged in mutually beneficial trade.4 2e also praised the reasonableness of business which raised the general standard of living but also but awarded men offices based on merit! not on birth or religion! and whose voluntary commercial relations promoted peace. 3%ho is more useful! an aristocrat or government official! whose accomplishments consisted primarily of mastering all the intricacies of courtly ritual or the merchant who sends ships across the seas and enriches his countryC4 )ritish writer 8rthur #oung 37verything is well done in 7ngland! except when it is done with public money4 The thinkers of the day! the 5hilosophes! were committed to rationalism which involved confidence in the reasoning mind and confidence in private judgment as distinguished from reliance on the dogmatic authority of others. Deism! theory that ;od created the world to run in accordance with natural laws that re@uired no further intervention! was widely held by the 5hilosophes.

The 7nlightenment! and the free market! above all stressed the mind! not just physical labor.

"cottish 7nlightenment . precursor to the Industrial Revolution Boltaire 3It is to "cotland that we look for our ideas of civili=ation4 It was this ideal that man has the capacity to improve his condition that resulted in improvements in factories and working conditions. Aames %att . commissioned by the Masonic <odge of ;lasgow to make a pipe organ. 2e was neither a musician! nor had any formal training in organs! pipe making or music. 2owever! he researched pipes! organs! and designed the plans and built an organ for chemist Aoseph )lack then a larger one for the lodge! entirely by himself. )lack was a professor of chemistry! medicine! and anatomy at the Eniversity of ;lasgow. 2e had been studying the properties of latent heat for years. %att finally hit upon the idea of harnessing steam. %att6s partner! Aohn Roebuck! was practicing physician! chemist! and inventor who created the lead/chamber process for manufacturing sulphuric acid! and also owned coal mines and iron works.

Aames 2utton! a "cottish scientist who was a pioneer of geology! originated the theory of the evolution of the 7arth6s crust! and that the 7arth was much older than previously believed. Aohn Mc8dam used small stones and gravel to make travel easier. Gver time wagon wheels and horses hoofs crushed the small stones to make a hard smooth surface! or what is commonly known as macadam. Mc8dam later added tar to make tarmacadam or tarmac. The 7nlightenment and the subse@uent Industrial Revolution completely changed transportation in the &-th century and afterward. Roads in 7ngland and "cotland were horrendous! they were often so muddy when it rained that carriages sank up their axles and horses up to their stomachs.

Aohn Rennie . "cottish engineer: constructed the %aterloo )ridge! 9ew <ondon )ridge! among many other projects. 8lso provided material for the Encyclopedia Britannica. Aohn Robison also invented the siren! contributed to the )ritannica Thomas Telford . "cottish engineer: 3 ather of Civil 7ngineering: noted bridge and canal builder! which made travel and commerce much more widespread and increased population! constructed the 7llesmere Canal. Aames )rinley . built the ;rand Trunk Canal

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Aosiah %edgewood . created high @uality earthenware pottery that was inexpensive so that the poor could afford it. <unar "ociety of )irmingham Aoseph 5riestley . chemist: isolated and described oxygen! ammonia! nitrous oxide! sulfur dioxide! and carbon monoxide and also wrote the groundbreaking 2istory of 7lectricity. Aohn %ilkinson . pioneered the use of cast iron built iron ships and bridges and had a foundry that built iron machine parts for many uses. %illiam 2unter made advancements in obstetrics: Aohn 2unter pioneered dentistry including the names of teeth incisor! bicuspid! molar! etc. The Eniversity of 7dinburgh particularly its medical school became a fountainhead of the "cottish 7nlightenment! paved the way for the Industrial Revolution all by using 9ewtonian "cience. Richard Trevithick early pioneer of the locomotive ;eorge "tephenson 3 ather of the Railroad4 born poor and had no formal education. 2owever! he was a brilliant mechanic and had an aptitude for repairing things. 2e invented the miner6s safety lamp! and in the &-(,6s built a series of locomotives designed for pulling material such as coal up from mines. This made work far easier for miners. "tephenson sent his son Robert to school &, miles away with no public transportation and no carriages. %hen Robert would return home from school he would teach his father to

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read and write and together they studied science and technology. They also designed do=ens of advanced steam engines which revolutioni=ed transportation in the &-(,s. 7ventually ;eorge sent Robert to the Eniversity of 7dinbergh where he studied philosophy! mineralogy! and chemistry. 8 group of businessmen seeking to connect the cities of Manchester and <iverpool set up a contest called the 3Rainhill Trials4. "tephenson6s locomotive! which weighed less and consumed less coal! beat out F other competitor6s to win the pri=e. Gn "eptember &'th &-*, the Manchester <iverpool Railway opened. Robert "tephenson oversaw the construction of more than &-,, miles of railway in his lifetime. Industrial Revolution Thomas 9ewcomen . built a steam powered water pump used for pumping water out of mines in &+&( Aohn Hay in &+** invented the flying shuttle which improves looms and enabled weavers to weave faster Aames 2argreaves created the spinning jenny in the &+>,s by which a worker could spin multiple threads . eventually up to -, . at once In &+>' ',,!,,, pounds of cotton had been spun by hand in all of 7ngland/ by &+-F more than &( million pounds of cotton were spun by machine. )y the early &->,s the price of cotton cloth was less than one percent of what it cost in &+-F which meant that hundreds of millions of people could dress warmly and comfortably and cleanly

The law of supply and demand dictates that as the supply of a good increase relative to the demand! the price for something usually decreases.

;uildsI Mercantilism! paternalism! and restrictionism "pecial licenses were needed to perform certain labor . licenses were controlled by the guilds which did not want competition ;uild labor 0and even family labor1 . much time was needed to complete these tasks . skill was needed . therefore the prices of these goods were high and could not be afforded by most actories cut down the time and skill needed to produce goods . more people could now afford even the most basic of necessities such as shoes <eisure time! a concept which was completely unheard of outside of the class of only the wealthiest individuals! could now be enjoyed by many. In the late &?th century the first college football game took place Rutgers vs 5rinceton 9ovember >th &->?. irst pro football game took place in &-?(. )aseball in various forms dates back at least to &-F'. In 8merica and )ritain! wages in manufacturing increased ',J between &->, and &-?, while at the same time! prices fell.

There were improvements in sanitation! education! transportation! parks! swimming pools! paid holidays! leisure activities 0existed for the first time in history for people other than the wealthy1

"ome examples of the industrial eraI

The steamship industry 7dward H Collins was provided K* million to construct a small fleet of steam ships to compete with 7ngland6s Cunard line. In addition! he was provided with K*-'!,,, a year subsidy. This was later increased to more than K-,,!,,,. Instead of five small ships as he had agreed! he built F large ships intended to accommodate wealthy tastes. %hen Cornelius Banderbilt asked Congress for money to build a line of steamships he was turned down. Endeterred! he found private investors and began his own line of ships that were faster! more efficient! and catered more to the public. 2e offered a cheaper fare to passengers who didn6t mind staying below deck. 5oorer passengers had no such choice on the Collins line. "enator Audah )enjamin of <ouisiana 3I believe the Collins line has been our most miserably managed.4 "enator Robert 2unter of Birginia 3The whole system was wrong. It should have been left like any other trade to competition.4

"enator Aohn Thompson of Hentucky 3;ive neither this line nor any other line a subsidy. <et the Collins line die. I want a tabula rasa! a new beginning.4 Collins had his subsidy taken away! and within a year the line went bankrupt.

The railroad industry The Enion 5acific and the 9orthern 5acific were both subsidi=ed by the government for K>& million total both went bankrupt. Aohn A 2ill6s ;reat 9orthern did not receive federal funding 0although it did receive state funding1 rom &--, /&?,, the cost of making rails fell from K(- to K&&.', per ton while profits went from K( million in &--- to KF, million by &?,,.

Gil industry Rockefeller6s "tandard Gil has been the target of much criticism and is often held up as the epitome of a trust and he was the epitome of the 3robber baron4. Ida Tarbell! of the first investigative journalists and one of the most famous 3muckrakers4 wrote The History of Standard Oil in which she painted a picture of a corrupt corporation run by an unscrupulous owner who made backroom deals with the rail industry to run competitors out of business. 2owever! it should be noted that Tarbell6s brother %illiam Tarbell! was the treasurer for the 5ure Gil Company! one of "tandard Gil6s biggest competitors. The fact that she never wrote anything critical of 5ure Gil! or of many of "tandard6s competitors! is suspect.

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Rockefeller was the first businessman to recycle and conserve. To create the most efficient business he used every part of the oil6s byproduct creating new uses such as soaps! candle wax! petroleum jelly! and kerosene.

)ecause of "tandard Gil$s superior efficiency 0and lower prices1! the company$s share of the refined petroleum market rose from F percent in &-+, to (' percent in &-+F and to about -' percent in &--,.08rmentano 8nti/Trust L Monopoly1 8s "tandard Gil garnered more and more business! it became even more efficient through Meconomies of scaleM N the tendency of per/unit costs to decline as the volume of output increases. This is typical of industries in which there is a large initial Mfixed costM N such as the expense involved in building an oil refinery. Gnce the refinery is built! the costs of maintaining the refinery are more or less fixed! so as more and more customers are added! the cost per customer declines. 8s a result! the company cut its cost of refining a gallon of oil from * cents in &->? to less than half a cent by &--'. "ignificantly! Rockefeller passed these savings along to the consumer! as the price of refined oil plummeted from more than *, cents per gallon in &->? to &, cents in &-+F and - cents in &--'.

)efore &-+, only the rich could afford whale oil and candles: the poor went to bed early: 8fter &-+, the price of oil 0and kerosene1 was so low that the poor could afford to stay up after dark. It was only after reading became an after dark activity that poor people had the chance to do well in school.

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Trust busting began at the state level before the "herman 8ntitrust 8ct was passed that affected trusts at a national level in &-?,. The appearance of new technologies offered new ways of doing things and made business more efficient. This caused the disappearance of some other trades and businesses much like the appearance of the fist automobiles at the turn of the (,th century saw the decline of the buggy whip and travel on horseback. 5rime exampleI the use of refrigeration brought about the emergence of slaughterhouses in one central location like Chicago! which could then put the beef on refrigerated rail cars and ship them out. This displaced the local butchers who did the slaughtering and preparing themselves. This consolidation and centrali=ation of some of the processes in industry gave the appearance of monopoly. Monopoly was defined as the collusion of one or more companies to deny entry into a certain marketplace at the detriment to the public. Two symptoms of monopoly wereI restricted output of goods or access to services by the public! and higher prices than they would normally have to pay. 2owever! neither were true until the state intervened with the "herman 8nti/trust 8ct of &-?,.

The anti/trust mentality is based on a few erroneous assumptions. irst! that the public needs to be protected from greedy industrialists by the benevolent public servants.

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"econd! that the anti/trust laws will actually make things better for the public by 3protecting competition4.

Enfortunately for the public! the "herman 8ct and other anti/trust laws were never intended to protect competition. Instead! it was a protectionist policy designed to safeguard less efficient and usually smaller companies! who the public servants usually had a vested financial interest in protecting! from competition.

arming armers from ;eorgia! Mississippi! and Tennessee formed an alliance and lobbied their representatives to protect their cotton industry from jute and twine used to bind cotton bales. 0jute is a plant fiber that can be spun into thread1 These alliances proposed using cotton to tie cotton bales and insisted that the emergence of the use of jute was damaging their industry.

The '&st Congress 0&--?/&-?&1 received >F different petitions calling for actions against combinations 0trusts1 It also compiled a list of industries that were being monopoli=ed by trusts. These industries included castor oil! cotton seed! coal! iron nuts and washers! lead! li@uor! steel rails! sugar! jute! =inc! steel! oil! petroleum! and matches. In all the industries except castor oil and matches output increased! meaning prices dropped.

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rom &->' to &?,, farm prices were falling but at a slower rate than the general price level. This translated into income gains for farmers in general. rom &-F, to &?,, the ratio of the division of income between labor and property owners 0those who provided capital and resources1 remained +, to *,. 2owever! who made up that +, percent and who made up that *, percent changed regularly in those >, years.

"ome people were losing their wealth because they were invested in industries that were disappearing or who were subsidi=ing industries that were inefficient and were losing profits. The push for anti/trust was an attempt to improve their financial and economic status.

%hat cannot be overlooked is that the Enited "tates was rapidly changing from a predominantly agrarian society to a predominantly industrial society.

Real ;95 0gross national product1 increased almost (' percent from &--, to &-?,. In the allegedly monopoli=ed industries! ;95 rose on average &+' percent. "howing increases in output were sugar 0+' percent1 petroleum 0+? percent1 steel rails 0&F( percent1 coal 0&'* percent1 =inc 0&'> percent1 and steel 0('- percent1.

rom &-?, to &?,, the trend continued as real ;95 in these industries rose ?? percent as opposed to the national average which rose by F* percent.

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5rices fell as wellI In &--, steel rails went from K>- per ton to K*( per ton in &-?,. The price of sugar was cut in half from &--, 0? cents per pound1 to &?,, 0F.' cents per pound1

Congressman %illiam Mason 3Trusts have made products cheaper! have reduced prices4 "enator 7dwards 3The sugar trust has reduced the price of sugar and the oil trust has certainly reduced the price of oil immensely! that does not alter the wrong of the principle of any trust.4

%agesI In comparison to wages in &-,,! average per capita income had already increased ',J by &-*, 0R.M. 2artwell The Industrial Revolution and Economic Growth 0<ondonI Methuen and Company! &?+&1 pp*&F/*&>

ood prices decreased significantly due in large part to the repeal of the Corn <aws in &-F> 0The 8nti/Corn <aw <eague put pressure on the government to stop subsidi=ing companies and corporations who were politically connected. <ook up The 8nti/Corn <aw <eague! as well as Richard Cobden! and Manchester Capitalism1 02artwell pp*(-/**+! *'>/*>,1

8ccording to historian A.2. Clapham! 3 or every class of urban or industrial labor about which information is available wages had risen markedly between the years &+?, and

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&-',.4 or <ondon bricklayers or compositors! wages had risen well over F,J! and for urban and industrial workers! perhaps about F,J. 0A.2. Clapham An Economic History of Britain Vol The Early Railway A!e pp'F-/'>&1

Gverall improvement for the period stretching from &+-&/&-'& show an average real gain in excess of >,J for farm workers! over ->J for blue collar workers and more than &F,J for all workers! including white collar workers. 05eter <indert and Aeffrey %illiamson 3The 7nglish %orkers <iving "tandard During the Industrial RevolutionI 8 9ew <ook4 pp&/(! (*/(F1

38fter a prolonged stagnation! blue/collar workers wages doubled between &-&, and &-',. This is a far larger increase than even past optimists had announcedO Enless new errors are discovered! the debate over wages in the early nineteenth century is overI the average worker was much better off in any decade from the &-*,s on than in any decade before &-(,. The same is true of any class of worker.4 Aeffrey %illiamson "id British #apitalism Breed Ine$uality 0)ostonI 8llen and Enwin! &?-'1 pp+/**: Clark 9ardinelli #hild %a&or and the Industrial Revolution 0)loomington!I9I Indiana Eniversity 5ress! &??,1 p&'>

8fter the establishment of savings banks in &-&+! deposits increased to &F.* million 0pounds sterling1 by &-(?! and to almost *, million by &-',. These savings were largely the accumulation of wage earners. There were &F!?*+ depositors of the Manchester and "alford "avings )ank &-F(: *,>* were domestic servants: *,** were children whose

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parents saved for them: (*+( were tradesmen! clerks! warehousemen! porters! artists! and teachers: and >F>? were laborers and industrial workers. 02artwell pp*(F/*('1

3)lack Innovators and 7ntrepreneurs Ender Capitalism4 by 8ndrew )ernstein httpIPPwww.fee.orgPtheQfreemanPdetailPblack/innovators/and/entrepreneurs/under/ capitalismRax==(M%8#7psD

The real motive behind anti/trust

In the late &?th century tariffs were a major source of government revenue as well as a source of trade restraint. 8ccording to "enator "herman himself 3Trusts subverted the tariff system: they undermined the policy of government to protect 8merican industries by levying duties on imported goods.4 9# Times Gctober & &-?, 3The Campaign Contributor6s Tariff )ill now goes to the president for his signature which will speedily be affixed to it and the favored manufacturers many of whom proposed and made the tariff rates which affect their products will begin to enjoy the profits of this legislation.4 "herman6s speech "eptember (?th &-?,/ 9# Times notes 3%e direct attention to those passages 0of "herman6s speech1 relating to combinations of protected manufacturers designed to take full advantage of high tariff duties by exacting from consumers prices fixed by agreement after competition has been suppressed.4

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The entire purpose of tariff protection was to allow manufacturers to raise prices without fear of foreign competition. Tariff protection is monopoli=ation by government.

The "herman 8nti/Trust 8ct won votes for legislators and brought in cash from campaign contributions who believed that antitrust legislation would protect them from more efficient competitors.

8lthough industry as a whole was becoming more concentrated there was still plenty of competition as rapidly rising output and the massive decline in prices show.

5rotectionism . public servants will often put their own self/interest over the interest of the common good. Republicans controlled the government and especially Congress in the latter half of the &?th century. Republicans favored protectionism and high tariffs. In the mid &--,s strong political movements emerged at the state level of government in favor of anti/trust legislation that eventually took the form of anti/trust law. It is relevant to note that state senators directly elected E.". senators and that the "herman 8ct was introduced in the "enate and not the 2ouse. %ith the exception of Maine! all states that enacted state anti/trust laws in &--? were located on or near the Mississippi valley. The armer6s 8lliance was the most powerful political coalition in Missouri at that time.

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They created a pledge that they would not vote for anyone who would not support their demands of protection! irrespective of party affiliation. &F, out of &+F state senators and representatives signed the pledge.

The main reason they wanted an antitrust law was that larger corporations were able to produce goods cheaper! thus smaller companies were unable to compete. 8t a &--? meeting of the armer6s 8lliance in "t. <ouis a declaration was issued to suppress all unhealthy competition. They complained that the price of grain is below the cost of production.4 2istorian David D. March wrote in 2istory of Missouri 3Aust as the price of raw cotton spurred expansion of the "outhern 8lliance! so low grain prices in the late &--,s caused thousands of farmers to join the national armers 8lliance.

Bolume rose in addition to prices of farm inputs and outputs falling! which is consistent with what one would expect in an open market.

Gne of the charges leveled against monopolist 3robber barons4 is that they colluded with the railroad industry to fix rates for their own benefit. 2owever! railroad rates fell dramatically in the latter half of the century after the Civil %ar. In fact average railroad rates which charge freight by the ton! fell by a whopping +- percent from &->' to &--'. The output of cattle! hogs! and wheat all fell precipitously in the decades following the Civil %ar! all the while prices were declining.

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urthermore! farm input prices! in other words what farmers would pay for machinery! decreased significantly. arm machinery was two and a half times more expensive in &-+, than it was in &-?,. Consumer welfare is increased when the price of goods fall and the @uality increases! which is what was happening. The advent of the railroad industry coupled with the widespread use of refrigeration was increasing the @uality. The Best Committee of Missouri which investigated the alleged monopoli=ation of the cattle industry in that area found no evidence of collusion by the Chicago meat packing industry. Thus! the political impetus for anti/trust law came from the farm lobbies of mostly Midwestern and agricultural states. The local farmers could not compete with larger industries and lobbied the government to help protect them from competition.

To sum it all upI in late &?th century 8merica! most industries were expanding output while prices declined. The "herman 8nti/Trust 8ct was used to thwart competition for the less efficient but more politically influential companies. The 8ct was also used to shield the policy of protectionism which was the real motive behind 8nti/Trust laws.

7vidence of ;overnment "ubsidies in the &?th century

9# Times &/&?/&->? p& 8 9ew inancial "cheme Introduced in the "enate

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The 2ouse Gpposed to Railroad "ubsided and <and ;rants

9# Times %ar %ith Indians '/(/&-+, p& 3The Enion 5acific Railroad Company! 7astern Division! was originally incorporated in &-''! by the legislature of the Territory of Hansas! as the <eavenworth! 5awnee! and %estern Railroad Company! with authority to construct a road from the west bank of the Missouri to the western boundary of the Territory.4 %as given the authority 3to unite or consolidate with any other company4 3In &->( the Enion 5acific Railroad Company was incorporated by Congress with power to construct a railroad and telegraph westward through the territory of the Enited "tatesO4 %as supposed to join with other railroads 3O and to all these roads large grants of land were made and large subsidies engaged on the security of a second mortgage O4 3Rendering certain services to the government in the transmission of messages and in the transportation of mails! troops! munitions and other property at reasonable rates of compensation.4 The corporation was 3entitled to certain benefits4 Erging congressional legislation in aid of the railway 8t issue was the @uestion of whether the road should be exempt from taxation as it was an instrument of the ;overnment. It was decided that the road should be taxed.

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3Congress may make or authori=e contracts with individuals or corporations for service to the ;overnment: may grant aid by money or land Ofurthermore these individuals or corporations would be exempt from any "tate taxation4

The ;overnment has advanced large sums to aid in the construction of a road

9# Times (/&'/&-+& p' "ubsidy of the ;ulf "teamship line ;ulf <ine line of steamers / subsidy of K&,,!,,, annually 0K&!+?-!,-'.'& in (,&, dollars1 8ustralian <ine / K*+'!,,, annually 0K>!+F(! -(,.>' in (,&, dollars1

9# Times &/(/&-+' pF The "ubsidy "ystem 8dmission that subsidy system does not work well . mentions Enion 5acific )ribery Moral standard of Congress was 3lamentably low4 5acific Mail "teamship Company

9# Times +/&*/&-++ pF 7ffects of the "ubsidy "ystem on 5ublic Credit

9# Times &,/&/&-++ pF

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Democrats and "ubsidies . talks about how large the subsidy system is and how politicians interested in re/election are clamorous for subsidies

The "pectacle at %ashington (/(,/&-+? pF Calls appropriations bill 3Oone of the rankest subsidy jobs4 that was 3disgraceful to both parties4 3Republican majorities in the "outh4

9# Times March (*/&--, p& 5acific Rail Monopoly Consolidated companies 3shall be entitled to all the benefits and immunities of the individual company4

9# Times "teamship "ubsidies (/(,/&--& pF 3The "enate has several subsidy schemes before itO4 3The subsidy! to be effective! would have to be at least e@ual to the difference in the cost of construction and maintenance of 8merican and foreign steamers as compared to the gross earnings. )ut who is to make this calculation and howC Is it probable or possible that a committee of Congress can determine the difference in cost caused by lower rates of interest! cheaper material! cheaper labor! greater experience! lower and different taxation.4

9# Times */(,/&--& p& Railway %orks and 5lans

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"peaking of a railway system it is said that 3Othe Mexican government has granted very liberal subsidies to the projectors of the enterprise4 The company receiving the subsidy may transfer ownership 0to another company through a deal or trade1 3Oany company receiving such transfer must have capital stock of no less than K&,,!,,,! &, percent of which must be paid inOEnder the subsidy proper! the ;overnment gives the company K&&!(>' per mile of road constructed on the line from Mexico City to the 5acific! and K&,!F>, per mile of road on the line to the northern frontier.4

9# Times 2ow "hipping is Discouraged F/?/&--( p3The moneyO must come from the pockets of the tax/payers! whose force in the business of which they were engaged would be lessened by so much! and even by more! for the machinery of collection by the ;overnment is necessarily defective and costly! and for every dollar that went to the ship owner! considerably more than a dollar would be withdrawn from useful employment in some other direction.4

9# Times '/>/&--( pF 3Obill for the relief of 8merican shipping4

"ourcesI )ork! Robert < &?>>. 3<egislative Intent and the 5olicy of the "herman 8ct4 'ournal of %aw and Economics 0Gctober1 &'/'>

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Clemens! Rudolf 8. &?(*. The American %ivestoc( and )eat Industry. 9ew #orkI The Ronald 5ress. Clevenger! 2omer. &?F,. A!rarian *olitics in )issouri+ ,,-. ,/0. Eniversity of Missouri. Di<oren=o! Thomas A. &?-'. 3The Grigins of 8ntitrustI 8n Interest ;roup 5erspective4 International Review of %aw and Economics ' no. >I +*/?, 'ournal of the House of )issouri. &--? *'th ;eneral 8ssembly. Aefferson City! Missouri. 'ournal of the Senate of )issouri. &--?. *'th ;eneral 8ssembly! Aefferson City! Missouri. Mac8voy! 5aul %. &?>'. The Economic Effects of Re!ulation. CambridgeI MIT 5ress "tigler! george A. &?-'. 3The Grigin of the "herman 8ct4. 'ournal of %e!al Studies &F 0Aanuary1 &/&&. American Economic Review &?-F Southern Economic 'ournal 0Auly &?>*1 &'9# Times Gctober & &-?,

"ocialism In his work! A History of European Socialism! 8lbert " <indemann defined "ocialism as the opposite of individualism. Man was not merely self/sufficient! but rather a part of an interconnected community. Thus! he had a responsibility to help those less fortunate. If man must help those less fortunate! then by logical extension! the "tate must play a central and necessary role in helping the poor. Thus! the "tate is redistributing wealth from the middle class and wealthy to the poorer members of society. It can only do this by coercion 0force1 There is no check on the government after it takes from the

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productive members of society to see that it redistributes the wealth to the 3protected classes4. 3 rom each according to his ability to each according to his needs4 / Marx

In the Stren!th and 1ea(ness of Socialism! Richard T 7ly makes the claim that modern socialism was brought about by the industrial revolution in the forms of various inventions that made a select few very wealthy! thereby separating them from the rest of society. The goal of "ocialism is a just society.

Harl Marx outlined six commandments of his vision of "ocialism! the last of which called for the violent overthrow of the existing order. In his &-', work! A *lan of Action A!ainst "emocracy! Marx himself advocated the assassination of government leaders and the destruction of public property. Marx was for the complete abolition of private property.

Thomas Malthus . authored the work The *rinciple of *opulation put forth the idea that the population expands exponentially and that the food production cannot keep up with this growth. 2e proposed a solution of checking human behavior which included abstinence and postponement of marriage. This is the first instance of a suggestion of planned living for humans.

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