The headquarters of the American plutocracy is, of course, New York City. Here are the three central banks, and here the hundred and twelve corporations have their offices, and the interlocking directors roll about in their padded limousines and collect their gold eagles and half-eagles with the minimum of trouble and delay. According to the Pujo Committee, the banks and trust companies of New York, all interlocked with the House of Morgan, had over five billion dollars’ worth of resources, which was nearly one-fourth of the bank resources of the country. This did not include the House of Morgan itself, which was, and is, a private institution. These figures, of course, seem puny since the world war; in that war the House of Morgan alone is reputed to have made a billion dollars from its war purchases for the British government, and if the Pujo Committee were to inquire at the present time it would find the banking resources of New York City somewhere between fifteen and twenty-five billions of dollars.
It is inevitable that this headquarters of our plutocratic empire should be also the headquarters of our plutocratic education. The interlocking directors could not discommode themselves by taking long journeys; therefore they selected themselves a spacious site on Morningside Heights, and there stands the palatial University of the House of Morgan, which sets the standard for the higher education of America. Other universities, we shall find, vary from the ideal; there are some which have old traditions, there are others which permit modern eccentricities; but in Columbia you have plutocracy, perfect, complete and final, and as I shall presently show, the rest of America’s educational system comes more and more to be 24modeled upon it. Columbia’s educational experts take charge of the school and college systems of the country, and the production of plutocratic ideas becomes an industry as thoroughly established, as completely systematized and standardized as the production of automobiles or sausages.
Needless to say, the University of the House of Morgan is completely provided with funds; its resources are estimated at over seventy-five million dollars and its annual income is over seven million. A considerable part of its endowment is invested in stocks and bonds, under the supervision of the interlocking directors. I have a typewritten list of these holdings, which occupies more than twenty pages, and includes practically all the important railroads and industrial corporations in the United States. Whoever you are, and wherever you live in America, you cannot spend a day, you can hardly spend an hour of your life, without paying tribute to Columbia University. In order to collect the material for this book I took a journey of seven thousand miles, and traveled on fourteen railroads. I observe that every one of these railroads is included in the lists, so on every mile of my journey I was helping to build up the Columbia machine. I helped to build it up when I lit the gas in my lodging-house room in New York; for Columbia University owns $58,000 worth of New York Gas and Electric Light, Heat and Power Company’s 4 per cent bonds; I helped to build it up when I telephoned my friends to make engagements, for Columbia University owns $50,000 worth of the New York Telephone Company’s 4½ per cent bonds; I helped to build it up when I took a spoonful of sugar with my breakfast, for Columbia University owns some shares in the American Sugar Refining Company, and also in the Cuba Cane Sugar Corporation.
The great university stops at nothing, however small: “five and ten cent stores,” and the Park and Tilford Grocery Company, and the Liggett and Myers Tobacco Company. I have on my desk a letter from a woman, telling me how the Standard Oil Company has been dispossessing homesteaders from the oil lands of California; Columbia University is profiting by these robberies, because it owns $25,000 worth of the gold debenture bonds of the Standard Oil Company of California. Recently 25I met a pitiful human wreck who had given all but his life to the Bethlehem Steel Company; Columbia University took a part of this man’s health and happiness. Crossing the desert on my way home, in the baking heat of summer I saw far out in the barren mountains a huge copper smelter, vomiting clouds of yellow smoke into the air. We in the Pullman sat in our shirt-sleeves, with electric fans playing and white-clad waiters bringing us cool drinks, but even so, we suffered from the heat; yet, out there in those lonely wastes men toil in front of furnace fires, and when they drop they are turned to mummies in the baking sand and their names are not recorded. Not a thought of them came into the minds of the passengers in the transcontinental train; and, needless to say, no thought of them troubles the minds of the thirty thousand seekers of the higher learning who flock to Columbia University every year. With serene consciences these young people cultivate the graces of life, upon the income of $49,000 worth of stock in the American Smelters Securities Company.
This University of the House of Morgan is run by a board of trustees. Under the law these trustees are the absolute sovereign, the administrators of the property, responsible to no one. They cannot be removed, no matter what they do, and they are self-perpetuating, they appoint their own successors. Their charter, be it noted, is a contract with the state, and can never be altered or revised. Such was the decision of the United States Supreme Court in the Dartmouth case, way back in 1819.
Who are the members of this board? The first thing to be noted about them is that there is only one educator, and that is the president of the university, an ex-officio member. Not one of them is a scholar, nor familiar with the life of the intellect. There is one engineer, one physician, and one bishop; there are ten corporation lawyers, and eight classified as bankers, railroad owners, real estate owners, merchants and manufacturers. Without exception they are the interlocking directors of the Pujo charts. The chairman of the board is William Barclay Parsons, engineer of the subway, and director in numerous corporations. The youngest member of the board is Marcellus Hartley Dodge, who was elected when he was 26 years old, and was a director of the Equitable 26Life while still an undergraduate at Columbia; he is a son-in-law of William Rockefeller, and is chairman of the Remington Arms Company and Union Metallic Cartridge Company. He is said to have cleaned up twenty-four million in one deal in Midvale Steel, and in October, 1916, he is credited with making two million by cornering the market in munitions machinery. Frederick R. Coudert is one of the most prominent attorneys of the plutocracy, a director in the National Surety and Equitable Trust. Herbert L. Satterlee is a Morgan attorney and a Morgan son-in-law. Robert S. Lovett is chairman of the Union Pacific Railroad, and director of a dozen other roads. Newcomb Carlton, president of the Western Union Telegraph Company, guides the affairs of a great university in spite of the fact that he is not a college man. Reverend William T. Manning is an ex-officio member, one might say, being the bishop of the church of J. P. Morgan and Company. You must understand that Columbia is descended from Kings College, an Episcopal institution, and the bishop, and three vestrymen of Old Trinity are on its board. Pierpont Morgan, the elder, was on all his life, and Stephen Baker, president of the Bank of Manhattan and the Bank of the Metropolis, is still on. A study of those who have held office on the board of Columbia, from 1900 to 1922, shows fifty-nine persons classified as follows: bankers, railroad owners, real estate owners, merchants and manufacturers, 20; lawyers, 21; ministers, 8; physicians, 6; educators, 1; engineers, 3. The six physicians were on because of their connection with the College of Physicians and Surgeons, a branch of Columbia.
How rich in their own right are the particular Money Trust lords who run this great University it is not possible to determine, because these gentlemen, for the most part, keep their affairs secret. But in the list of those who have died during twenty-two years we have means for an estimate, for the property of many of these was listed in the probate courts of New York and appraised by the transfer tax appraisers. A study of these records has been made by Henry R. Linville, president of the Teachers’ Union, and he has courteously placed the manuscript at my disposal. There are twenty-one trustees who have died and been appraised, and the list of their stocks and 27bonds fills a total of twenty-three typewritten pages, and shows that the total wealth on which they paid an inheritance tax amounted to one hundred and seventy-three million dollars, an average of over eight million each. I note among the list five members of the clergy of Jesus Christ, and I am sure that if He had visited their parishes He would have been delighted at their state of affluence—He could hardly have told it from His heavenly courts with their streets of gold. The poorest of these clergy was Bishop Burch, who left $37,840; second came the Reverend Coe, who left $80,683; next came the Reverend Greer, who left $172,619; next came the Reverend Dix, rector of Trinity, who left $269,637; and finally, Bishop Potter, my own bishop, whose train I carried when I was a little boy, in the solemn ceremonials of the church. I was dully awe-stricken, but not so much as I would have been if I had realized that I was carrying the train of $380,568. Such sums loom big in the imagination of a little boy; but they don’t amount to so much on the board of a university where you associate with the elder Morgan, who left seventy-eight millions, and with John S. Kennedy, banker of the Gould interests, who left sixty-five millions.
You might possibly think that our interlocking directors would be so busy with the task of managing our industries and our government that they would not have time to superintend our education; but that would be underestimating their diligence and foresight. They do the job and they do it personally, not trusting it to subordinates. In the office of the Teachers’ Union of New York I inspected a chart, dealing with the interlocking directorates of Columbia University; and except by the label, you could not tell it from the charts in the three volumes of the Pujo Reports. It is the same thing, and the men shown are the same men. They serve J. P Morgan and Company as directors in the coal trust, the steel trust, the railroad trust; they serve also on the boards of schools, colleges, and universities through the United States. You could not tell a chart of the Columbia trustees from a chart of the New York Central Railroad, or the Remington Arms Company. You could not tell a chart of Harvard University from a chart of Lee, Higginson and Company, the banking house of Boston. 28You could not tell a chart of the University of Pennsylvania from a chart of the United Gas Improvement Company. You could not tell a chart of the University of Pittsburgh from a chart of the United States Steel Corporation. You could not tell a chart of the University of California from one of the Hydro-Electric Power Trust, one of Denver University from the Colorado Fuel and Iron Company, one of the University of Montana from the Anaconda Copper Company, one of the University of Minnesota from the Ore Trust. These corporations are one, their interests are one, and their purposes are one.
Evans Clark, a preceptor in Princeton University—until he made this survey—collected the facts as to the financial interests of governing boards of the largest American universities—seven of which were privately controlled and twenty-two state controlled. He found that the plutocratic class, or those intimately connected therewith—bankers, manufacturers, merchants, public utility officers, financiers, great publishers and lawyers—composed 56 per cent of the membership of the privately controlled boards, and 68 per cent of the publicly controlled boards. Says Mr. Clark: “Of the other two great economic groups in society there is little or no representation. The farmers total between 6 per cent in private and 4 per cent in public boards, while no representative of labor has a place on any board, public or private. And finally, no college professor is a trustee of the college in which he serves, while only fourteen out of 649 are professors in other institutions. Of these, six are Harvard professors on the Radcliffe board (the women’s college connected with Harvard). We have allowed the education of our youth to fall into the absolute control of a group of men who represent not only a minority of the total population but have, at the same time, enormous economic and business stakes in what kind of an education it shall be.”
And this condition prevails right through the list of our colleges, regardless of size, or where they are located or how financed. This was shown by Scott Nearing in an exhaustive study, reported in “School and Society” for September 8, 1917. He wrote to the governing bodies of all colleges and universities in the United States having 29more than five hundred students. There are 189 such institutions, and 143 of these supplied the lists of trustees with their occupations. The total number of trustees was 2,470. There were 208 merchants, 196 manufacturers, 112 capitalists, 6 contractors, 32 real estate men, 26 insurance men, 115 corporation officials, 202 bankers, 15 brokers, and 18 publishers, making for the plutocratic group a total of 930. There were 111 doctors, 514 lawyers, 125 educators, 353 ministers, 8 authors, 43 editors, 70 scientists, 13 social workers and 32 judges, making a total for the professional group of 1,269. For the miscellaneous group there were 94 retired business men, 3 salesmen, 123 farmers, 46 home-keepers, 3 mechanics, and 2 librarians, making a total of 271. For the purpose of this inquiry the lawyers belong, not with the professional class, but with the commercial and financial class, whose retainers they are. That makes a total of 1,444 of that class, or 58 per cent. In the state universities the commercial class had a total of 477 out of 776, or 61 per cent. And this, you will note, without counting the retired business men, who are certainly no less plutocratic in their mentality than the active ones; without counting the many doctors, ministers, editors, and educators who are just as plutocratic as the bankers. How plutocratic an educator can be when he is well paid for it is the next proposition we have to prove to you.
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