Senator La Follette's followers are in the overwhelming majority farmers; the Wisconsin "Social-Democrats," as they call themselves, have secured little more than one per cent of the vote of the State outside of Milwaukee and a few other towns, and even less in the country. On the other hand, the majority of the workingmen of Milwaukee and several other towns vote for the Socialists, while those who do not are usually not followers of Senator La Follette, but Catholics and Democrats. The Wisconsin "Insurgents" have as yet by no means taken the usual capitalist position in the struggle between employers and labor unions, but they have shown repeatedly that they are conscious that they represent primarily the small property holders and the business community generally, including the small shareholders of the "trusts."

_La Follette's Weekly_, in an important article defending direct legislation and the recall, says that the reason "we, the people," do not give enough attention to public measures is that "we are so busy with our private affairs," and continues: "Indeed, our success in our private enterprises, nay even equality of opportunity to engage in private enterprises, is coming more and more to depend upon the measure of protection which we may receive through our government from the unjust encroachments of the power of centralized Big Business." These "State Socialist" radicals represent primarily small business men and independent farmers, who are often employers, and their friendship to employees will necessarily have to be subordinated whenever the two interests come into conflict.

Mr. Berger and the Wisconsin Social-Democrats on the other hand represent primarily the workingmen of the cities, especially those who are so fortunate as to be members of labor unions. The "Social Democrats" appeal, however, for the votes of the farmers, of "the small business man," and of "the large business men who are decent employers"; they announce that the rights of corporations will be protected under their administrations, declare that they who "take the risks of business" are ent.i.tled "to a fair return"; and have convinced many that they are not for the present anti-capitalistic in their policy, though they have not as yet succeeded in getting very much capitalistic support.

For many years, indeed, the struggle between employers and unions has been less acute in Milwaukee than in many other large cities, while wages and conditions are on the whole no better. The Milwaukee Socialists have repeatedly called the attention of employers to this relative industrial peace and have attributed it to their influence, much to the disgust of the more militant Socialists, who claim that strikes are the only indication of a fighting spirit on the part of the workers. Mr. Berger, for example, has explained "the rare occurrence of strikes in Milwaukee" as being due largely to the Social-Democrats of that city who, he says, "have opposed almost every strike that has been declared here."[154]

Certainly the att.i.tude of the Socialists towards the employers in one of the largest industries, brewing, has on the whole been exceptionally friendly, as evidenced among other things by the Socialists' appointment of one of a leading brewery manager (who was not even a Socialist) as debt commissioner of the city, and their active campaign for the brewing interests, including a denunciation of county option, though this measure has already been indorsed by both of the capitalistic parties even in the liquor-producing State of Kentucky, as well as elsewhere, and is favored by very many Socialists, not as a means of advancing prohibition, but as the fairest present way of settling the controversy.

But even relative peace between capital and labor is not lasting in our present society and it will scarcely last in Milwaukee. Already there are signs of what is likely to happen, and the business-men admirers of Milwaukee Socialism are beginning to drop away. A few more strikes, and Berger and his a.s.sociates may be forced to abandon completely their claim that it is to the interest of employers, with some exceptions, to elect Socialists to office.

The situation after a recent strike in Milwaukee is thus summed up by the _New York Volkszeitung_, a great admirer, on the whole, of the Milwaukee movement:--

"The new measures which are taken for the betterment of the city transportation system, for the preparation of better residence conditions and parks for the poorer cla.s.ses of the people," says the _Volkszeitung_, "did not much disturb Milwaukee's 'Best Society.' Rather the opposite. For all these things did not at the bottom harm their interests, but were, on the contrary, quite to their taste, in so far as they rather increased than injured the pleasure of their own lives.

"But at last what had to happen, did happen. The moment a great conflict between capital and labor broke out in the great community of Milwaukee, the caliber of the city administration was bound to show itself....

"The prohibition which Mayor Seidel issued to the police, not to interfere for either side, his grounds and those of the city council's presiding officer, Comrade Melms, their instructions to the striking 'garment workers' how they should conduct the strike in order to win a victory, the admonition that they might safely call a scab a scab without official interference--all this is of decisive importance, not only for its momentary effect on the Milwaukee strike, but especially for the Socialist propaganda, for the demonstration of the tremendous advantage the working people can get even at the present moment by the election of Socialist candidates....

"And now it is all over with the half well-disposed att.i.tude that had been a.s.sumed towards our comrades in the city administration.

With burning words the capitalistic and commercial authorities protest against these official expressions, as being likely to disturb 'law and order' and as having the object of stirring up the cla.s.s struggle and of undermining respect for the law.

"That came about which must come about, if our Milwaukee comrades did their duty. And they have done it, at the right moment, and without hesitation. And this must never be forgotten. But the real battle between them and their capitalist opponent _begins now for the first time_."

Here is the keynote of the situation. Only as more and more serious strikes occur will the Milwaukee movement be forced to emphasize its labor unionism rather than its reforms. It will then, in all probability, be forced to take up an aggressive labor-union att.i.tude like that of the non-Socialist Labor Party in San Francisco. One action at least of Mayor McCarthy in the latter city was decidedly more threatening to the local employing interests than any taken in Milwaukee, which after all had met the approval of one of the capitalistic papers (_i.e._ the _Free Press_). The Bulletin of the United Garment Workers, though grateful for the att.i.tude of the mayor in their Milwaukee strike, uses language just as laudatory concerning this action of the anti-Socialist Labor mayor of San Francisco.[155]

The "reformist" Socialists lay much stress upon their loyalty to existing labor unions. Some even favor the creation of a non-Socialist Labor Party, more or less like those of San Francisco or Australia or Great Britain. Indeed, the reformists have often acknowledged their close kinship with the semi-Socialist wing of the British Labour Party, and this relationship is recognized by the latter. All Socialists will agree that even the reformists, as a rule, represent the interests of the labor-union movement better than other parties; but the Socialist Party is vastly more than a mere reformist trade-union party, and most Socialists feel that to reduce it to this role would be to deprive it of the larger part of its power even to help the unions.

In the statement of Mr. Debs already quoted in part in this chapter, he also expresses the opposition of the Socialist majority to converting the organization into a mere trade-union Party:--

"There is a disposition on the part of some to join hands with reactionary trade unionists in local emergencies and in certain temporary situations to effect some specific purpose, which may or may not be in harmony with our revolutionary program. No possible good can come of any kind of a political alliance, expressed or implied, with trade unions or the leaders of trade unions who are opposed to Socialism and only turn to it for use in some extremity, the fruit of their own reactionary policy.

"Of course we want the support of trade unionists, but only of those who believe in Socialism and are ready to vote and work with us for the overthrow of capitalism."

It would seem from the expressions of Milwaukee Socialists that they, in direct opposition to the policy of Mr. Debs, are working by opportunist methods towards a trade union party, and that form of collectivism advocated by the Labor Parties of Great Britain and Australia. But they have been in power now in Milwaukee for nearly two years and have had a strong contingent in the Wisconsin legislature, while their representative in Congress has had time to define his att.i.tude in a series of bills and resolutions. We are in a position, then, to judge their policy not by their words alone, but also by their acts.

Let us first examine their munic.i.p.al policy. This a.s.sumes special importance since the installation of Socialist officials in Berkeley (California), b.u.t.te (Montana), Flint (Michigan), several smaller towns in Kansas, Illinois, and other States, as a result of the elections of April, 1911. To these victories have recently been added others (in November, 1911) in Schenectady (New York), Lima and Lorain (Ohio), Newcastle (Pennsylvania), besides very large votes or the election of minor officials in many places in Pennsylvania, Ohio, Ma.s.sachusetts, Connecticut, Rhode Island, New York, New Jersey, Kansas, Illinois, Minnesota, Missouri, Wisconsin, Oregon, Washington, Utah, California, and other States.

While the officials elected received in nearly every case only a plurality (this is true also of most of those elected in Milwaukee), and local or temporary issues existed in many instances, which caused the Socialist Party to be used largely for purposes of protest, a part of the vote was undoubtedly cast for a type of munic.i.p.al reform somewhat more radical than other parties have, as a rule, been ready to offer in this country; up to the present time, at least, a considerable part of the vote is undoubtedly to be accredited to convinced Socialists.

Milwaukee being as yet the only important example of an important American munic.i.p.ality that has rested in Socialist hands for any considerable period, I shall confine myself largely to the discussion of the movement in that city. Some of those already in office in other places have, moreover, taken the Milwaukee policy as their model and announced their intention to follow it. Mayor Seidel's statement after a year in office, and the explanations of the Rev. Carl Thompson (the city clerk) made about the same time, cover the essential points for the present discussion.

Both the statement of the mayor and that of the city clerk are concerned with matters that interest primarily the business man and taxpayer. Mr.

Thompson disclaims that there is anything essentially new even in the Socialists' plans, to say nothing of their performances. He says of the most discussed munic.i.p.al projects under consideration by the Socialist administration that all were advocated either by former administrations, by one or both of the older parties or by some of their leading members.

He mentions the proposed river park, railway terminal station, and electric lighting plans, as well as home rule for Milwaukee, as being all strictly conservative projects (as they are). Other plans mentioned by Mayor Seidel--harbor improvements, playgrounds, a sterilization plant, and isolation hospital--are approved, if not by the conservatives of Milwaukee, at least by those of many other cities. Some minor and less expensive proposals, a child welfare commission, a board of recreation, and munic.i.p.al dances are somewhat more novel. These are all the social reforms mentioned by the mayor, as planned or accomplished, with the exception of those that have to do primarily with efficiency or economy in munic.i.p.al administration, such as improvement in street cleaning, sanitary inspection and inspection of weights and measures, which all conservative reform administration seek to bring about; many cities, especially abroad, having been eminently successful in this direction.

To secure the political support of taxpayers and business men, further evidence was required to show that the administration is neither doing nor likely to do anything unprecedented. They want a safe and sane business policy, and a.s.surances that new sources of income will, if possible, be secured and applied to the reduction of taxation; or that, in case taxes are raised, munic.i.p.al reforms will so improve business and rental values, as to bring into their pockets more than the increased taxation has cost them.

Mayor Seidel and City Clerk Thompson presented entirely satisfactory evidences on all these points. Business methods have been introduced, a "complete inventory" of the property of the city is being made, "blanket appropriations" are done away with, "a new system of voucher bills has been installed," all the departments are being brought on "a uniform accounting basis." Finally, taxable property is being listed that was formerly overlooked, and the city is more careful in settling financial claims against it. Mayor Seidel and City Clerk Thompson both promise that taxes will not be increased; the former points to the new resources from property that had escaped taxation and to the future rise in value of land the city intends to purchase, the latter refers to "revenue-producing enterprises which will relieve the burden of taxation rather than increase it." Neither goes so far as to suggest any plan, like the present law of Great Britain, introduced by a capitalist government, according to which not only are the taxes of the wealthy raised, but one fifth of the future increase of value of city lands, as being due to the community, accrues to the public treasury. It is true that such measures would have to be approved by the State of Wisconsin, but this would not prevent them being made the one prominent issue in the city campaign, and insistently demanded until they are obtained. The mayor's att.i.tude on this tax question, which underlies all others, far from being Socialistic, is not even radical.

The tendency seems to have been widespread in the munic.i.p.al campaigns undertaken by the Socialists in the fall of 1911, to abandon even radical, though capitalistic, munic.i.p.al reformers'

policy of raising new taxes to pay for reforms that bring modest benefits to the workers, but chiefly raise realty values and promote the interests of "business," and to subst.i.tute for this the conservative policy of reducing taxes. Thus the _Bridgeport Socialist_ advised the voters:--

"Munic.i.p.al ownership means cheaper water, cheaper light, cheaper gas, cheaper electricity, and a steady revenue into the city treasury _which would reduce taxes_." (Italics mine.)[156]

One might infer that the ma.s.ses of Bridgeport were already sufficiently supplied with schools, parks, and all the free services a munic.i.p.ality can give.

Of course it is true that a considerable part of the wage earners in our small cities own their own homes (subject often to heavy mortgages) and, _other things remaining as they are_, would like to have taxes reduced. But two facts are indisputable: the average taxes paid by the wage earners are insignificant compared with those of the wealthier cla.s.ses, and the wage earner gets, at first at least, an equal share in the benefits of most munic.i.p.al expenditures. The Socialists know that most of the economic benefits are later absorbed by increasing rents; and that capitalist judges and State governments will see to it that only such expenditures are allowed as have this result, or such as have the effect, through improving efficiency, of increasing profits faster than wages. Socialists recognize, however, that at least munic.i.p.al collectivism is in the line of capitalist progress, with some incidental benefits to labor, while the policy of decreasing taxes on the unearned increment of land is nothing less than reaction.

The only popular ground on which such a policy could be defended is the fallacy that landlords transmit to tenants the fluctuations in taxes, in the form of increased or diminished rents. Even if this were true, the tenants would be as likely as not to profit by enlarged munic.i.p.al expenditures (_i.e._ in spite of paying for a _minor_ part of their cost). But in the large cities, as a matter of fact, 90 per cent of the wage earners, who are tenants, and not home owners, do not feel these fluctuations at all. Increased land taxes do not as a rule cause an increase in average rents.

Increased land taxes force unimproved land upon the market, and compel its improvement, to escape loss in holding it unimproved and idle. The resulting increased compet.i.tion for tenants operates on the average to _reduce_ rents, not to increase them. The taxes are paid at the cost of _reduced profits_ for the landlord--until population begins to increase more rapidly than taxes. The capitalist leaders perceive the truth as regards this plainly enough. Thus, in their anxiety to get both landlord and capitalist support in the last munic.i.p.al campaign in New York City, various allied real estate interests claimed credit for their work in keeping taxes down. Commenting upon the subject, the _New York Times_ said: "Rents do not rise with taxes. If they did, the owner would merely need to pa.s.s the taxes along to the renter and be rid of the subject."[157] The next day Mayor Gaynor in a letter to the _Times_ quoted a message he had sent to the city council in the previous year in which he had said: "Every landlord knows that he cannot add the taxes to rents. If he could, he would not care how high taxes grew. He would simply throw them on his tenants."

It is difficult, therefore, to see why the tenants of New York City or Bridgeport should favor lower taxes, so long as they and their children are in need of further public advantages that increased taxes would enable the munic.i.p.alities to supply. To favor reduced taxes, while private ownership of land prevails, is not Socialism, or even progressive capitalism. It is, as I have said, _reaction_.

The _New York Volkszeitung_ expresses in a few words the correct Socialist att.i.tude on munic.i.p.al expenditures. After showing the need of more money for schools, hygienic measures, etc., it concludes:--

"These increased expenditures of munic.i.p.alities are thus absolutely necessary if a Socialist city government is to fulfill its tasks.

Since the munic.i.p.al expenditures must be raised through taxation, it is evident that a good Socialist city government must raise the taxes if it is up to the level of its duties. Provided that--as just remarked--the raising of the taxes is so managed that the possessing cla.s.ses are hit by it and not the poor and the workingmen.

"Most of the Socialist munic.i.p.al administrations have been shattered hitherto by the tax question; that has been especially evident in France, where the Socialists lost the towns captured by them because their administration appeared to be more costly than those of their capitalist predecessors. That has happened especially wherever the small capitalist element played a role in the Socialist movement.

"We shall undoubtedly have this experience in America, also, if we do not make it clear to the ma.s.ses of workingmen that good city government for them means a more expensive city government, and that they are interested in this increase of the cost of the city administration."[158]

If the Socialists promise much and perform comparatively little, they have as a valid reason the fact that the city does not have the authority. But opponents can also say, as does the Milwaukee _Journal_, that "the administration would not dare to carry out its promises to engage in munic.i.p.al Socialism if it had the authority." For while munic.i.p.al "Socialism" or public ownership is perfectly good capitalism, it is not always good politics in a community where the small taxpayers dominate.

While the plans for munic.i.p.al wood and coal yards and plumbing shops were doubtless abandoned in Milwaukee by reason of legal limitations, and not merely to please the small traders, as some have contended, no Socialist reason can be given for the practical abandonment years ago of the proposed plan for munic.i.p.al ownership of street railways. If the charter prohibited such an important measure as this, all efforts should have been concentrated on changing the charter. Socialists do not usually allow their world-wide policy, or even their present demands to be shaped by a city charter.

If Mr. Berger had announced earlier and more clearly, and if he had repeated with sufficient frequency, his recent declaration that _Milwaukee is administered by Socialists but does not have a Socialist administration_, he would have avoided a world of misunderstanding. In fact, if he had enunciated this principle with sufficient emphasis before the munic.i.p.al election of 1910, it is highly probable that the Socialists would not yet have won the city, and would never have felt obligated to claim, as they often do now, that Socialists, who must direct part of their energies towards future results, are more efficient as practical reformers than non-Socialists, who are ready to sacrifice every ultimate principle, if they have any, for immediate achievements.

The whole question between reformists and revolutionaries refers not so much to the policy of Socialists in control of munic.i.p.alities, which is often beyond criticism, as to the value of munic.i.p.al activity generally for Socialist purposes. None deny that it has value, but reformists and revolutionaries ascribe to it different roles.

There are two reasons why Socialism _cannot_ yet be applied on a munic.i.p.al scale--one economic and one political. I do not refer here, of course, to munic.i.p.al ownership, often called "munic.i.p.al Socialism," a typical manifestation of "State Socialism," but to a policy that attempts to make use of the munic.i.p.ality against the capitalist cla.s.s.

Such a policy is economically impossible to-day because it would gradually drive capital to other cities and so indirectly injure the whole population including the non-capitalists. Indeed, Mayor Seidel especially denies that he will allow any "hardship on capital," and City Clerk Thompson gives nearly a newspaper column of statistics to show that "the business of Milwaukee has continued to expand" since the Socialists came into power, remarking that "there have been no serious strikes or labor troubles in Milwaukee for years"--surely a condition which employers will appreciate. Nothing could prove more finally than such statements, how munic.i.p.al governments at present feel bound to serve the business interests.

The political limitations of the situation are similar. Prof. Anton Menger says of Socialism as applied to munic.i.p.alities, that "it is necessarily deferred to the time when the Socialist party will be strong enough to take into its hands the political power in the whole state or the larger part of it." It is obviously impossible to force the hands of an intelligent ruling majority merely by capturing one branch or one local division of the government. As such branches are captured they will be prevented from doing anything of importance, or forced to act only within the limits fixed by the ruling cla.s.s.

This is especially true in the United States. We have elaborate forms and external symbols of local self-government, and it may really exist--as long as the munic.i.p.alities are used for capitalistic purposes.

When it is proposed to use local self-government for Socialist ends, however, it instantly disappears. Not only do the States interfere, with the national government ready behind them, but the centralized judiciary, state and national, is always at hand to intervene. _This is potential centralization, and for the purposes of preventing radical or Socialist measures the government of the United States is as centralized as that of any civilized nation on earth._

Moreover, the semblance of local power given by munic.i.p.al victories brings a second difficulty to the Socialists--it means the election of administrators and judges. Now even under the system of potential centralization through the courts, _legislators_ are useful, for they cannot be forced to serve capitalism. But government must be carried on and mayors and judges are practically under the control of higher authorities--in the new commission plan of government, they even do the legislating. In the words of the _New York Daily Call_:--