The early pioneers who first settled on the Atlantic Coast and then continued their journey across the Continent were all business men, but they were not capitalists. From the eastern States they sought in Europe capital to build up the industries of their locations, and, by the use of this capital and labor rendered the East prosperous; and when these sturdy pioneers opened up the wealth of resources in the West they, in turn, drew upon the East for capital, and by paying for its use and uniting labor with it developed this great country. The descendants of these pioneer business men are the representative business men of today. They are not in an economic sense capitalists. Whilst the capitalist may be a business man, the vast majority of business men are not capitalists. The business man is the one who obtains capital from one source and labor from another source and unites them in an anticipated prosperous undertaking. (Applause)
The material prosperity of the United States is due to our natural resources and the genius of the business man united with the capital of the few and the toil of the millions; but the creative genius, the organizing ability, the spirit which animates the partnership, is the contribution of the business man—by his brains, energy, force of character, and toil he has created here in the United States a commercial system of enterprise and a degree of business prosperity unparalleled in history.
If we give the credit of this achievement to the business man, he should also bear the responsibility of the evils which have been engendered (applause). The gravest evils which have developed out of our commercial prosperity are the uncontrolled power of great wealth, the growth of monopolies, and their sinister influence on our political institutions. (Applause)
Industrial efficiency may justify the union of many smaller corporations into one big one, but if it leads to industrial despotism this efficiency is obtained at the sacrifice of industrial freedom (applause). No one nowadays, on the ground of efficiency, believes in a political despotism; surely it is equally difficult to believe that any degree of efficiency could justify industrial despotism. (Applause)
As early as 1888 so conservative a man as Grover Cleveland expressed himself as follows: "Communism of combined wealth and capital, the outgrowth of overweening cupidity and selfishness, which assiduously undermines the justice and integrity of free institutions is not less dangerous than the communism of oppressed poverty and toil which, exasperated by injustice and discontent, attacks with wild disorder the citadel of misrule." So far as communism of capital is concerned, did not Cleveland's graphic statement adumbrate the conditions as they exist today? Since that time how tremendous has been the growth in the combinations of capital and industry.
But of more importance than the size of the corporations and the combinations of capital is the activity in our political arena of the agents and members of these corporations (applause); they are not there to advocate measures for the welfare of the community, but to obtain for themselves special privileges, to gain some advantage in disregard of the public welfare and merely for private gain. These conditions are precipitating an economic and political crisis, in which the issues are not to be between the two great political parties, but between ranks which are being formed to give battle on these new issues regardless of party lines. (Applause)
To my mind great encouragement lies in the fact that there is rapidly developing a segregation in the ranks of business men. Already many of them, freed from a false sense of class loyalty, or a fear of injury to business, are unwilling to assist by their public support or private esteem that man, however successful or powerful he may be, who by himself or by his agents practices methods which are unfair and opposed to the common good (applause). They no longer respect the citizen who in any way indicates a reluctance to take part in the crusade against bribery and graft, or the one who, by silence, hopes to conceal his public attitude when public sentiment seeks to fasten responsibility where responsibility belongs (applause). This sort of man must come out into the open and declare himself—he must be either with us or against us. (Applause and cries of "Good!")
Even though the advocacy of the control of industrial combinations and the enactment of measures for their regulation temporarily affect business interests, they should not for this reason excite the opposition of the mercantile world. Those business men who have become convinced of the wisdom of regulation should be willing to follow the example of the intelligent patient who goes through with a necessary operation that in the end he may obtain permanent health and strength. (Applause)
During the last five years there is apparent among business men a larger recognition of their obligations to the community, and there is noticeable among the directors of many of our corporations a stricter sense of trusteeship. An anti-toxin to corruption has entered the very veins of the business world (applause). The phagocytes of health are overcoming the macrophags of decay. This is not a sudden revival, a temporary wave of reform, but a gradual evolution of the moral sense, a permanent advance in the idea of social justice (applause). This moral awakening may show itself politically in an effort toward municipal reform, in legislative and municipal voters' leagues, in a determined resistance to monopoly, or for a larger control and a larger share in the profits of public franchise corporations. But in whatever form it seeks its expression, it is the manifestation of an actively constructive principle which will soon become so effective that the merchant and the man of affairs will overlook the near and personal view which appears on the stock ticker and take the larger view, the view that ultimately provides for the greatest good of the greatest number (applause). This awakened sense of social justice is the new and deeper significance of the Conservation movement. (Applause)
Two years ago the Conference of Governors adopted a declaration of principles which the President said should hang on the wall of every school-house for the education of every citizen who is to become a voter in the next generation.