There are two reasons why Socialism cannot yet be applied on a municipal scale—one economic and one political. I do not refer here, of course, to municipal ownership, often called "municipal Socialism," a typical manifestation of "State Socialism," but to a policy that attempts to make use of the municipality against the capitalist class.
Such a policy is economically impossible to-day because it would gradually drive capital to other cities and so indirectly injure the whole population including the non-capitalists. Indeed, Mayor Seidel especially denies that he will allow any "hardship on capital," and City Clerk Thompson gives nearly a newspaper column of statistics to show that "the business of Milwaukee has continued to expand" since the Socialists came into power, remarking that "there have been no serious strikes or labor troubles in Milwaukee for years"—surely a condition which employers will appreciate. Nothing could prove more finally than such statements, how municipal governments at present feel bound to serve the business interests.
The political limitations of the situation are similar. Prof. Anton Menger says of Socialism as applied to municipalities, that "it is necessarily deferred to the time when the Socialist party will be strong enough to take into its hands the political power in the whole state or the larger part of it." It is obviously impossible to force the hands of an intelligent ruling majority merely by capturing one branch or one local division of the government. As such branches are captured they will be prevented from doing anything of importance, or forced to act only within the limits fixed by the ruling class.
This is especially true in the United States. We have elaborate forms and external symbols of local self-government, and it may really exist—as long as the municipalities are used for capitalistic purposes. When it is proposed to use local self-government for Socialist ends, however, it instantly disappears. Not only do the States interfere, with the national government ready behind them, but the centralized judiciary, state and national, is always at hand to intervene. This is potential centralization, and for the purposes of preventing radical or Socialist measures the government of the United States is as centralized as that of any civilized nation on earth.
Moreover, the semblance of local power given by municipal victories brings a second difficulty to the Socialists—it means the election of administrators and judges. Now even under the system of potential centralization through the courts, legislators are useful, for they cannot be forced to serve capitalism. But government must be carried on and mayors and judges are practically under the control of higher authorities—in the new commission plan of government, they even do the legislating. In the words of the New York Daily Call:—
"The Socialist Legislator finds his task a comparatively easy and simple one. He proposes or supports every measure of advantage to the working class in particular and to the great majority of the people in general, barring such as are of a reactionary character. But the Socialist executive and the Socialist judge find themselves in no such simple situation. Their activities are circumscribed by superior and hostile powers, and by written constitutions adopted at the dictation of the capitalist class. How to harmonize their activities with the just demands of the working class for the immediate betterment of its conditions, as well as with the Socialist program which has for its goal the ultimate overthrow of the capitalist social order, and yet not come into such conflict with the superior and hostile powers as would result in their own removal from office—this question is bound to assume a gravity not yet perhaps dreamed of by the majority of American Socialists.
"And yet even now, while our political power is still small, the charge of opportunism, or the neglect of principle in pursuit of some practical advantage, is continually being raised, sometimes justly, sometimes unjustly."
The following from the New York Evening Post, illustrates both the political and the economic difficulty of enacting Socialistic or even radical measures in municipalities. It is taken from a special article on the situation in Schenectady, where a Socialist, Dr. George R. Lunn had just been elected mayor:—
"Schenectady is trying hard to take its dose of Socialism philosophically. Its most staid and respectable citizens, who have been staid and respectable Republicans and Democrats all their life, console themselves with the thought that, after all, Old Dorp is Old Dorp—Old Dorp being the affectionate way of referring to Schenectady—and that her best citizens are still her best citizens, and that Rev. George R. Lunn and all his Socialist crew can't do a great amount of harm in two years to a city that possesses such an ironclad charter as that with which Horace White, when he was a Senator, endowed every city of the second class in the Empire State. The conservative element in town back that charter against all the reforms that the minister who is to be mayor and his following of machinists, plumbers, coachmen, and armature winders from the General Electric Works, who are going to be common councillors and other things, can hope to introduce....
"The General Electric works—as everybody agrees—'made' Schenectady. Census figures show it and statistics of one sort or another show it. The concern employs more than 16,000 men and women—as many persons as there are voters in the whole town. It owns 275 acres of land, and of this about 60 acres are occupied with shops and buildings. Its capital stock is valued at $80,000,000. The General Electric, or as it is called up here, the 'G. E.,' has given work to thousands, has brought a lot of business into town, has made real estate in hitherto deserted districts valuable. On the tax assessors' books its property is assessed at $4,500,000. It is safe to say that this is less than 25 per cent of its true value.
"If Dr. Lunn should attempt to meddle with the 'G. E.'s' assessment, Schenectady knows very well what would happen. The General Electric Company would pack up and move away to some other town that is pining for a nice big factory and does not care much how small taxes it pays. That is the situation. Of course everybody agrees that the company ought to be paying more, but when it comes to a question of leaving well enough alone or losing the company entirely, Schenectady says leave well enough alone, by all means. The loss of the 'G. E.' works would be a disaster, from which the Old Dorp would never recover. Why, even now the company has just opened a brand new plant in Erie, Philadelphia, and if Schenectady does not behave, what is to prevent the 'G. E.' from moving all its belongings to Erie?
"Dr. Lunn has not had much to say regarding this phase of his taxation reforms. The day after his election he issued a statement, however, which showed that he did not intend to do anything extremely radical:—
"'In the matter of taxation we have had something to say during the campaign, but we Socialists are too good economists not to know that the burdening of our local industries in the way of taxation above that placed upon them in other cities would be foolhardy. Under the present system, to which we are opposed, manufacturing concerns have their rights, and any special burden placed upon them by one community above that which is placed upon them in other communities would inevitably and of necessity, from the standpoint of economics, hinder their progress. We are not in favor of hindering their progress. We stand for the greatest progress along every line. We will not only encourage industries in every way consistent with our principles, but will endeavor to bring new industries to Schenectady, and furthermore, we will succeed in doing it.'"[159]
The newly elected mayor is quoted by Collier's Weekly, as saying: "We are only trying to conduct the city's business in the same honest way we should run our own business." Collier's says that the Socialists generally "make their impression by mere business honesty and efficiency," distinguishes this from what it calls the "harmful kind of Socialism," and concludes that, "watching the actual performances of those who choose to call themselves Socialists, we are thus far unable to be filled with terror."[160]
Nearly all the comment at the time of the Socialist municipal victories in the fall of 1911 pointed out, in similar terms, the contrast between the very restricted opportunities they offer for the revolutionary program of Socialism. The editorial in the Saturday Evening Post is typical:—