“Yet you have not learned their lesson. Here are you, a century and a half later, trying to break machines. By your own confession the trust machines do the work more efficiently and more cheaply than you can. That is why you cannot compete with them. And yet you would break those machines. You are even more stupid than the stupid workmen of England. And while you maunder about restoring competition, the trusts go on destroying you.
“One and all you tell the same story,—the passing away of competition and the coming on of combination. You, Mr. Owen, destroyed competition here in Berkeley when your branch store drove the three small groceries out of business. Your combination was more effective. Yet you feel the pressure of other combinations on you, the trust combinations, and you cry out. It is because you are not a trust. If you were a grocery trust for the whole United States, you would be singing another song. And the song would be, ‘Blessed are the trusts.’ And yet again, not only is your small combination not a trust, but you are aware yourself of its lack of strength. You are beginning to divine your own end. You feel yourself and your branch stores a pawn in the game. You see the powerful interests rising and growing more powerful day by day; you feel their mailed hands descending upon your profits and taking a pinch here and a pinch there—the railroad trust, the oil trust, the steel trust, the coal trust; and you know that in the end they will destroy you, take away from you the last per cent of your little profits.
“You, sir, are a poor gamester. When you squeezed out the three small groceries here in Berkeley by virtue of your superior combination, you swelled out your chest, talked about efficiency and enterprise, and sent your wife to Europe on the profits you had gained by eating up the three small groceries. It is dog eat dog, and you ate them up. But, on the other hand, you are being eaten up in turn by the bigger dogs, wherefore you squeal. And what I say to you is true of all of you at this table. You are all squealing. You are all playing the losing game, and you are all squealing about it.
“But when you squeal you don’t state the situation flatly, as I have stated it. You don’t say that you like to squeeze profits out of others, and that you are making all the row because others are squeezing your profits out of you. No, you are too cunning for that. You say something else. You make small-capitalist political speeches such as Mr. Calvin made. What did he say? Here are a few of his phrases I caught: ‘Our original principles are all right,’ ‘What this country requires is a return to fundamental American methods—free opportunity for all,’ ‘The spirit of liberty in which this nation was born,’ ‘Let us return to the principles of our forefathers.’
“When he says ‘free opportunity for all,’ he means free opportunity to squeeze profits, which freedom of opportunity is now denied him by the great trusts. And the absurd thing about it is that you have repeated these phrases so often that you believe them. You want opportunity to plunder your fellow-men in your own small way, but you hypnotize yourselves into thinking you want freedom. You are piggish and acquisitive, but the magic of your phrases leads you to believe that you are patriotic. Your desire for profits, which is sheer selfishness, you metamorphose into altruistic solicitude for suffering humanity. Come on now, right here amongst ourselves, and be honest for once. Look the matter in the face and state it in direct terms.”
There were flushed and angry faces at the table, and withal a measure of awe. They were a little frightened at this smooth-faced young fellow, and the swing and smash of his words, and his dreadful trait of calling a spade a spade. Mr. Calvin promptly replied.
“And why not?” he demanded. “Why can we not return to ways of our fathers when this republic was founded? You have spoken much truth, Mr. Everhard, unpalatable though it has been. But here amongst ourselves let us speak out. Let us throw off all disguise and accept the truth as Mr. Everhard has flatly stated it. It is true that we smaller capitalists are after profits, and that the trusts are taking our profits away from us. It is true that we want to destroy the trusts in order that our profits may remain to us. And why can we not do it? Why not? I say, why not?”
“Ah, now we come to the gist of the matter,” Ernest said with a pleased expression. “I’ll try to tell you why not, though the telling will be rather hard. You see, you fellows have studied business, in a small way, but you have not studied social evolution at all. You are in the midst of a transition stage now in economic evolution, but you do not understand it, and that’s what causes all the confusion. Why cannot you return? Because you can’t. You can no more make water run up hill than can you cause the tide of economic evolution to flow back in its channel along the way it came. Joshua made the sun stand still upon Gibeon, but you would outdo Joshua. You would make the sun go backward in the sky. You would have time retrace its steps from noon to morning.
“In the face of labor-saving machinery, of organized production, of the increased efficiency of combination, you would set the economic sun back a whole generation or so to the time when there were no great capitalists, no great machinery, no railroads—a time when a host of little capitalists warred with each other in economic anarchy, and when production was primitive, wasteful, unorganized, and costly. Believe me, Joshua’s task was easier, and he had Jehovah to help him. But God has forsaken you small capitalists. The sun of the small capitalists is setting. It will never rise again. Nor is it in your power even to make it stand still. You are perishing, and you are doomed to perish utterly from the face of society.
“This is the fiat of evolution. It is the word of God. Combination is stronger than competition. Primitive man was a puny creature hiding in the crevices of the rocks. He combined and made war upon his carnivorous enemies. They were competitive beasts. Primitive man was a combinative beast, and because of it he rose to primacy over all the animals. And man has been achieving greater and greater combinations ever since. It is combination versus competition, a thousand centuries long struggle, in which competition has always been worsted. Whoso enlists on the side of competition perishes.”
“But the trusts themselves arose out of competition,” Mr. Calvin interrupted.
“Very true,” Ernest answered. “And the trusts themselves destroyed competition. That, by your own word, is why you are no longer in the dairy business.”
The first laughter of the evening went around the table, and even Mr. Calvin joined in the laugh against himself.
“And now, while we are on the trusts,” Ernest went on, “let us settle a few things. I shall make certain statements, and if you disagree with them, speak up. Silence will mean agreement. Is it not true that a machine-loom will weave more cloth and weave more cheaply than a hand-loom?” He paused, but nobody spoke up. “Is it not then highly irrational to break the machine-loom and go back to the clumsy and more costly hand-loom method of weaving?” Heads nodded in acquiescence. “Is it not true that that known as a trust produces more efficiently and cheaply than can a thousand competing small concerns?” Still no one objected. “Then is it not irrational to destroy that cheap and efficient combination?”
No one answered for a long time. Then Mr. Kowalt spoke.
“What are we to do, then?” he demanded. “To destroy the trusts is the only way we can see to escape their domination.”
Ernest was all fire and aliveness on the instant.
“I’ll show you another way!” he cried. “Let us not destroy those wonderful machines that produce efficiently and cheaply. Let us control them. Let us profit by their efficiency and cheapness. Let us run them for ourselves. Let us oust the present owners of the wonderful machines, and let us own the wonderful machines ourselves. That, gentlemen, is socialism, a greater combination than the trusts, a greater economic and social combination than any that has as yet appeared on the planet. It is in line with evolution. We meet combination with greater combination. It is the winning side. Come on over with us socialists and play on the winning side.”
Here arose dissent. There was a shaking of heads, and mutterings arose.
“All right, then, you prefer to be anachronisms,” Ernest laughed. “You prefer to play atavistic roles. You are doomed to perish as all atavisms perish. Have you ever asked what will happen to you when greater combinations than even the present trusts arise? Have you ever considered where you will stand when