A Single Taxer's Journey to the Henry
George Congress |
[Reprinted from Land and Freedom,
March-April 1930]
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ARE you coming to the Henry George Congress, to be held in San
Francisco next September? If so, start early, and make the trip with
me. Come in your own buzwagon or use the auto stage. There is little
satisfaction riding on railroad cars.
A Single Taxer's viewpoint is different from that of the ordinary
mortal. Man and his ways are more interesting to him than tall
buildings, picture shows or any of the commonplace attractions for
multitudes of tourists. You are probably familiar with conditions in
the Mississippi Valley and the Single Taxers of Missouri can "show
you" that State. When you get into Kansas you will find
considerable turmoil over the tax question. That State is the "farthest
East" limit of the territory between there and the Pacific where
the privileged interests are taking advantage of the sleepy Single
Taxers and tightening their tolls upon industry and enterprise.
Now we are in Colorado, the land of privilege, plunder and shotguns.
I have already told the readers of LAND AND FREEDOM something about
the State Land situation in Colorado. Remember, as soon as you get
within the borders of that State, to call on the assessor of every
city, town and county through which you pass, and give him a sworn
statement as to all the property you have in your handbag or suitcase,
and then pay to him the proportion of the annual taxes on that
property, for the five minutes or one hour you may be in the
particular place. Don't fail in this, for under the tax laws of
Colorado, if you should you are likely to be sent to jail. The law
provides also that if the assessor neglects to hunt you up, and make
you pay, he is subject to a fine of fifty dollars. So, don't imagine
it's a highwayman who holds you up on the main road, at the entrance
to any County or town, and demands your money.
A delightful contrast to this statute affecting the common mudsills
of society, is the statute providing for the assessment of the
property of the privileged interests! Colorado's tax laws require all
public utility corporations to file a complete statement of the
property they possess there with the State Tax Commission. The law
further provides that these assessments statements must be kept secret
by the Tax Commission, and makes it a penitentiary offence for any one
to divulge their contents to any person. A singular quirk in the
statutes makes every business corporation doing business in two or
more counties a public utility for tax purposes. Of course, this
secrecy is not designed to promote corruption or to aid privileged
taxpayers in hiding their property and avoiding their just share of
taxation! I imagine some of the boy legislators of Colorado fear that
inquisitive citizens might wish to know if the Rockefeller Colorado
Fuel and Iron Works was fairly assessed, or some of the public
utilities that have such peculiar dealings with Denver and other
cities, pay all their taxes. Of course, such inquiring citizens are "trouble
makers."
One feature of the economic life of Colorado, which I found most
interesting, is mining. There, as in all the western States, you will
hear universal complaint that mining is dead. Of course, the
Government is held responsible for this condition. To tell the truth,
it is so, partly. But before going into that subject you will probably
be interested in knowing that in Colorado they have a State
institution called the Mining Fund, which is controlled by a
Commission, appointed by the Governor, consisting solely of men
representing the largest mining interests in Colorado. It gains its
revenue by a small tax levied upon the output of mines. I called at
the office of this Mining Fund in the State Building, seeking to get
information as to its purposes. Instead of being given information, I
was subjected to a cross examination by the Secretary as to the why
and what and wherefore of my inquiry, ending with the query, Do you
favor the Leasing Bill? At first, I was puzzled, and then it occurred
to me that he meant the Coal and Oil Land Leasing Bill, passed by
Congress in 1920, and I replied, "I am opposed to it; because it
permits one person to take up twenty-five hundred acres of coal and
oil land. " He did not give me time to say that such an area
ofttimes exceeds the boundaries of an oil dome, which might yield
hundreds of millions of dollars in "black gold," but said to
me, with much emphasis, "These conservationists are robbing the
American people of their right to private ownership of land." He
then entered into a tirade against those patriotic American citizens,
who object to a few interests monopolizing the mines, forests and
other lands of the nation.
I never heard a higher compliment paid Gifford Pinchot in my life.
The attitude of this Secretary of the Colorado State Mining Fund
should cause all Single Taxers, and every other good citizen, to get
behind Gifford Pinchot in his patriotic endeavor to save our national
resources from exploiting monopolists. Fortunately, the Geological
Survey Department, in its administration of the Coal and Oil Land
Leasing Bill, construes its terms strictly, and requires proper
development under all leases. This good work has added to the anger
of the land grabbers.
However, the monopolists are indulging their greed to a greater
degree in Colorado than in any of the western states. In the early
days, eighty years ago, when gold was first discovered in California,
it was the custom of the prospectors working on any creek or gulch or
flat to organize a mining district, generally defining its boundaries
by the ridges of the surrounding hills and the streams. They also
provided laws to regulate the size of claims, their holding and the
working of them. In the first districts, in 1848, a California miner
had to get down on his knees, and strike out with his right arm as far
as he could reach, to mark one corner of his claim. Then, pivoting on
his right knee, he would in a similar manner mark the other three
corners of his claim. When not working on his claim, day or night, he
was required to leave his pick and shovel and pan on the ground, as
evidence of possession. Later, the miners' laws provided that a claim
should not exceed ten feet by ten feet, and that, on new diggings,
five days absence, which had to be recorded with the mining district
Recorder, would cause a forfeiture of the claim, and make it "jumpable."
Two years ago I spent my annual vacation along the Mother Lode mining
section of California. I collected more than one hundred and fifty of
these mining district laws, and made studies of the economic condition
and viewpoint of the miners seventy and eighty years ago. The spirit
of all these laws was, No Monopoly. Every American Citizen has an
equal right of access to this natural opportunity for a living which
God has given him. I found a mining district at Table Mountain
organized by five men. The laws which they promulgated enabled them to
file claims on the entire mountain. The files of a newspaper of that
day showed that immediately the miners of the entire region were up in
arms. They called a mass meeting, and organized a Tuolumne County
Gravel Mining District, formulating new laws, limiting a claim to a
reasonable size, and providing, as custom gave them a right, for the
repeal of all the existing gravel mining district laws in that county.
The addresses delivered by mining men at that meeting denounced the
organizers of the Table Mountain District, saying that they would
permit a few men to monopolize the entire Mountain; that it would take
twenty years for a miner to work out the claims of 20 acres each,
which they provided for themselves.
Later, in 1872, the Federal Government provided by statute that a
mining claim might embrace an area six hundred by fifteen hundred
feet, or nearly twenty-one acres. The statute also provided for
certain work to be done on a claim, which I shall treat of later, and
for the patenting of mining claims. That law was the doom of the
mining industry. Today, no matter where you go in the mining states,
from the Rocky Mountains to the Pacific, you will find no
opportunities for mining without paying enormous tribute to
speculators, who secure their claims from the Government for a song,
and make no effort to develop them.
After this explanation, you will better understand the Colorado
situation. Among the many public offices in which I find valuable
historical and economic data is the L T nited States Public Survey
Office, generally situated near at hand to the U. S. Land Office. As
the law requires every applicant for a patent to have his claim
surveyed, I have examined the records in a great many of these public
Survey Offices, in order to ascertain the amount of ground which a
claimant might obtain. As I have already stated, the early miners in
California limited a claim of virgin soil to ten feet by ten feet, and
Congress allowed claims nearly twenty-one acres. Unfortunately, the
liberality of Congress extended further, and permitted the taking up
of any number of claims, and inclusion of any number of contiguous
claims in one survey for patent. In the seventies, rarely would an
application for patent exceed two claims, of twenty acres each. Even
today the vast majority of applications in any state seldom exceed
four claims.
But in Colorado I found a most remarkable situation. The dull spell
in mining, since the war, has caused a great number of miners to
abandon their claims. During the past few years new interests have
filed upon these claims, and I found single applications for survey
for patent including one hundred and fifty claims, or more than three
thousand acres of mining ground! After diligent inquiry about the City
of Denver, I was informed that the Gugenheim interests are taking up
these claims, not only in one application of one hundred and fifty
claims, but many of them.
The Gugenheim interests chiefly control the smelters in the west.
They and other interests have brought about the adoption of so called
High-Grade Laws which prevent storekeepers and others from buying gold
or ore from prospectors, because of the heavy license tax and numerous
restrictions imposed. Thus prospectors are compelled to send gold and
ore long distances, and at a great expense, to the smelters, which
make their own assay, and pay the miner according to their own account
of the values. By this means the smelting interests become familiar
with the richness of the ground in every mining camp. As dull times
have forced the miners to abandon their claims, . these interests are
now taking advantage of their knowledge and this opportunity, to grab
up all the good mining ground in the country. In a few years there
will be no opportunity, even by lease or purchase for any person,
other than these interests, to develop a mine. If Single Taxers are
interested in preserving the "margin of cultivation" in our
country, which enables American workmen to maintain their present high
standard of living, they will immediately urge Congress to repeal the
existing mining laws, and not allow any person a patent for mining
ground ; and further, that every holder of an unpatented claim must
actually work his claim, say with similar regulations to those imposed
by the Geological Survey Office, under the Coal and Oil Land Leasing
Bill. Let use, development and working, be the only title which a man
may have to public mining ground. If those Single Taxers who now
devote their lives to the Wailing Wall, and our Howling Dervishes,
will only come out of the deserts of New York City and Chicago, and
devote their energies to prevailing on Congress the repeal of these
monopolistic mining laws, then some real good may be accomplished to
preserve for future generations these natural opportunities for a
livelihood.
We cannot leave Denver without calling on our good Single Tax friend,
Barney Haughey, and John McGauran. We will find Barney Haughey down at
Larimer and 16th Street, the heart of the workingmen's lodging house
district, in an old time office building. He has a twelve-
dollar-a-month office in which he also lodges. From here
notwithstanding the winters of many years have made his hair and beard
as white as their snows, he keeps Colorado, and especially Denver,
continually thinking about Single Tax. John McGauran is the same
enthusiastic, vigorous and able advocate of Henry George's philosophy
as he has been known universally to Single Taxers for the past forty
years. That the attention of thinking people in Denver has been called
to the Single Tax by these leaders is best evidenced in the Denver
Public Library, where as large an assortment of Single Tax Literature
will be found as exists in almost any library. And there is hardly
anyone in Denver with whom you may discuss Single Tax principles, who
will not immediately ask you, Is not that the Single Tax?
But to return to mining. The Federal Statutes, since '72, have
provided that a person may hold nearly twenty- one acres of mining
ground by filing his claim and delineating its boundaries, with a
County Recorder. One hundred dollars worth of work must be done
annually. In the seventies, the work amounted to about thirty days for
the one hundred dollars. Unfortunately, many technical and unfriendly
constructions of these laws have developed since that time, so that
today the laws are practically worthless. By filing this claim at a
certain date a speculator may hold it for two years almost before he
does any work. A speculator may do one year's assessment work and
never do any more; yet there is no means of proving that he did not do
the work unless he is watched day and night during the entire year;
furthermore, the law provides that if a claimant fails to do his work,
and I, learning of that, take my tools and start out to the claim to
work it, if the old claimant can get there before I do with his tools,
all his rights revive, although he has not worked the claim for two,
five or ten years, or more. I have been told that where parties take
up large groups of claims, like the Gugenheims in Colorado, it is the
practice to contract the assessment work. They tell me that these con-
tractors juggle their statements so that in the end they do an average
of one day's work for each claim, and put in their bill for ten days
on each claim. One of the worst features of the Federal law is that it
allows one person to take up any number of claims five, ten or a
thousand. I know of an instance where parties have held mining ground
for thirty years, until an adjoining owner who was developing a mine
was compelled to buy out the speculator and pay him a high price.
Single Taxers who are puzzled by the query of objectors that there
would be no permanency of tenure under the Single Tax, can point to
Government mining claims as a complete answer to it. Literally, tens
of thousands of valuable mines have been held and worked for years
merely as claims, their sole title being the filing of the original
claim and continual working of it. I was told of one claim in Arizona
which, after having been worked for many years, sold for $1,500,000;
and of another in Nevada that sold for $1,000,000.
The patenting of mining claims, or Government land of any kind,
should be stopped immediately. When a patent is issued the Government
loses title, and has no means of compelling any development work. When
speculators or land grabbers, like the Gugenheims in Colorado, patent
mining or other land, they get absolute control over it, and can keep
it out of use until doomsday. Single Taxers should use these facts,
and others easily learned, to prevail upon Congress to make the
necessary changes in our mining laws. It must be remembered that
Congressmen from mining states cannot be depended upon to bring about
these changes. Their constituents are largely mining speculators, or
their sympathizers.
In Colorado, the State Board Land Commission issue a "Special
Prospector's Permit" to prospect State land for minerals for 120
days free of charge. If the prospector then desires to mine any of
this land, it is leased to him in blocks of ten acres at an annual
cost of seventeen dollars and fifty cents a year for each lease, and a
royalty of not less than ten per cent, of the gross production to be
paid to the State. The person leasing must do at least fifty feet of
underground development work in shafts, drifts, or tunnels upon each
ten acres, every year. Under the Federal Law, a claimant doing fifty
feet of tunnel work would claim that it cost him five hundred dollars,
therefore entitling him to a patent to nearly twenty-one acres, and
perpetual ownership of the land; while in Colorado if he does not do
this fifty feet of work each year he loses his title to the mine.
Before leaving Colorado, it might be well to look at other parts of
the State. Denver is a sleepy conservative town full of old buildings,
even the principal hotel being nearly forty years old. The telephone
building is the only up- to-date structure. The buildings merely
evidence the character of the people; the public service corporations
seem to be in absolute control ; the street railway company even
claims to have a perpetual right to use the streets of Denver. The
Mayor and City Council recently raised carfares to ten cents, and a
few years ago proposed a gas franchise and rates that imposed
extraordinary conditions upon the people; and the press and
politicians got the people to vote for it!
One newpaper, I was told, developed from the peddling of lottery
tickets. The Rocky Mountain News, while Edward Keating was editor, had
a national reputation as a progressive journal. A few years ago it was
purchased by the Scripp-Howard Syndicate and now is nothing more than
one of their stereotyped sheets. It would grieve the late E. W.
Scripps and W. H. Porterfield to see how this paper ignores or injures
the Single Tax movement. Its former individuality is almost lost in
the name The News, except that its brilliant columnist Casey, is
equal, if not superior, to Hearst's Brisbane. I was in Denver last
Fourth of July. I read every line almost of that issue of The News,
but I could not find a single reference in it to George Washington,
Jefferson or any of the Revolutionary Fathers, or anything to indicate
that it was a day AMERICANS celebrate. Instead, there were fully three
columns in the paper of propaganda about the King of England and his
family, as though America were again an English Colony.
But let us go down to Colorado Springs. There we find a new,
up-to-date City, in striking contrast to sleepy Denver. An honest City
Council and City Manager have almost wiped out corporation control
there. The city owns and operates its water, electric light and gas
plants. The street railway is owned and operated by a charitable trust
of the city. The private corporation that operated the electric and
gas plants lost money. The city instituted so many economies and
superior methods of working, that both these utilities now pay their
own way. A Standard oil controlled Company brought natural gas from
Amarillo, Texas, to Denver, charging Denver 40 cents a 1,000 cubic
feet. Supplying also the Rockefeller Fuel and Iron Works at Pueblo at
16 cents per 1,000 cubic feet.
When Colorado Springs sought a connection to this pipe line, passing
by its city, such onerous conditions were sought to be imposed that
the city had to reject the proposal. At the State Public Service
Commission's office in Denver I was told they had no authority to
compel the giving of this service to the city. There, and at the
Denver Mayor's office, I was informed that the pipe line company had
agreed, in its contract with the Denver Public Service Corporation,
not to supply natural gas to any city in Colorado without the consent
of that corporation. Such is the way of monopoly. In the Southern part
of the State there are enormous coal fields, covering hundreds of
thousands of square miles, including portions of New Mexico. The
greater part of this coal land is now held by monopolists. From the
State line to Denver, there are great areas of table land, covered
with green grass, but not a head of stock on it. Near the cities will
be found many dairies, the most of them very dilapidated. The most
successful dairymen seem to be our Single Tax friends, the Sintons.
Their dairy improvements show every sign of prosperity.
From Denver we can take the bus for Cheyenne, the Capitol of Wyoming;
find out before hand the exact hour the bus leaves. My experience
there led me to believe, since the Southern Pacific and other
railroads got control of Pickwick and Yellowway stages, that they are
operated not to accommodate passengers, but to discourage and drive
them back to the railroads for transportation. At Fort Collins natural
gas is being used from the nearby Wellington Fields, which also
supplies Cheyenne.
North of Denver there are hundreds of Russians, renting dairy farms.
In Colorado, Wyoming, Nebraska and all the Mountain States, the farms
have a hard time existing. Their only cash receipts are such as one to
ten or more cows bring them, some even milking the range cattle. The
cream that is brought into the creameries throughout this country is
known as "sour cream." Some of it comes three hundred or
four hundred miles, after standing from a day to a week in the can on
the roadside. Washing soda is commonly used by creameries to
neutralize this sour cream. In one creamery, the operator told me that
when the mix was put in the vat so much gas was generated, that it
frequently blew open the two hundred pound cover. Most of the butter
produced in these Mountain States is sent to Eastern and Pacific Coast
Cities, where it is homoginized, and made into ice cream for the
children. In one State a dairy inspector showed me a photograph of a
cow barn, with the manure piled up on the sides and top. He said that
the summer rains soaked through the manure, ran down the backs of the
cows, and into the milking pails, and that the butter produced from
the cream carried uric acid and formic acid, which our children get
later in their ice cream.
Later I shall have you accompany me into that remarkable State of
Wyoming, and down into the Mormon Economy about the Great Salt Lake in
Utah, thence across Nevada and about California. I am sure that you
will vote the coming Henry George Congress, at San Francisco, next
September, to be one of the greatest events of your life, if you
complete this trip with me.
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