"Senator Kenmore, the Attorney-General, and I have endeavored to answer your question to the best of our ability," Gorham replied, "and I, for one, regret to have failed in my endeavor. We all agree, I am sure, that the Government has a plain duty to perform, but we do not understand that duty to be the prevention of honest and beneficial combination. The Consolidated Companies has led the way in seeking publicity and preserving equality, and in insuring public participation in the benefits accruing from the combinations which it effects. If other trusts do likewise, I have no doubt that they will be as 'immune' as you have been pleased to call the Consolidated Companies."
"Are you prepared to deny that, in spite of this 'benevolent' aspect of which you boast, the profits of your corporation are greater than those of any trust in the world?"
"I have never made the comparative analysis which would be required to answer your question," Gorham replied; "but I do say without fear of contradiction that no organization ever gave back to the people so large a percentage of its earnings. It may interest Senator Hunt if I outline the principles upon which the Consolidated Companies was conceived."
Gorham's voice was a strong asset. Its low, clear tones carried without apparent effort, and there was a firmness and sincerity in every spoken word which always secured attentive hearing.
"The public," he said, "has long since become accustomed to mergers and consolidations, and has naturally associated with them the strangling of competition and the creation and enjoyment, on the part of a few, of the conditions of monopoly. But business exploits such as these are, in a measure, things of the past, and cannot be repeated. Great industries can no longer hem in their rivals, or stifle and cripple them to the extent that fields, which by natural law are free to all, become the field of one. The people have at last risen against this, and consolidations will only be tolerated when confidence is established that the masses will be benefited. When the scheme of the Consolidated Companies first became known, it was bitterly opposed by the public, who saw in it nothing other than a new and more gigantic octopus, to feed upon its very life-blood.
"From the very beginning, both from principle and from what I consider to be sound business sense, I have endeavored by word and act to convince the public that the Consolidated Companies intended to serve its best interests, and our unprecedented success is the best evidence I could offer that I have, at least in part, succeeded. Our stockholders are men in high positions of trust, and they cannot continue to deliver contracts to us unless we make good our promises to execute those concessions to the advantage of the people. To-day, wherever the Consolidated Companies is known, the public looks with approval upon favors shown us by its officials, and this in itself is an asset to our corporation of untold value. Bread, coffee, and other daily necessities are now obtainable cheaper than ever before in the history of the world, because the Consolidated Companies has made them so. Transportation charges, wherever we have obtained the franchises, have been reduced twenty per cent.; lighting costs, both gas and electric, are fifteen per cent. cheaper in those cities which we control; government loans placed through us are from one to two per cent. lower, thus substantially reducing the rate of taxation. We have prevented war in at least two instances, and thus demonstrated the possibilities of our power in preserving universal peace. For the Government to interfere with our work because of a technicality would result in an international calamity."
"Are you now speaking for the Administration, Mr. Gorham?"
"Now, I am speaking as a private citizen."
"If the Attorney-General agrees with me," added the President, joining in the discussion for the first time, "I think I may say that Mr. Gorham's views as a private citizen are shared by the Administration; on the other hand, I agree with the Attorney-General in the position which he takes regarding the conflict between the legal and practical bearing of the Sherman Act. There is only one way to solve the problem, and that is to modify that Act so that a distinction can be made between those consolidations which advance the country's prosperity, and those which are operated solely for personal gain to the detriment of all except the few directly interested. You may report back to your constituents, Senator Hunt, that the Administration will refrain from further action in this matter for the present, and will direct its efforts toward securing amendments to the Sherman Act which shall make it possible to draw a distinction between good and bad trusts, as you call them, without discrimination."
The President rose, signifying that the conference was ended, and Gorham left the White House in company with Senator Kenmore and the Attorney-General. The latter wore a serious expression upon his face.