People's History of the United States_ 1492 to Present, A - Zinn, Howard [155]
When Cleveland was elected President again in 1892, Andrew Carnegie, in Europe, received a letter from the manager of his steel plants, Henry Clay Frick: “I am very sorry for President Harrison, but I cannot see that our interests are going to be affected one way or the other by the change in administration.” Cleveland, facing the agitation in the country caused by the panic and depression of 1893, used troops to break up “Coxey’s Army,” a demonstration of unemployed men who had come to Washington, and again to break up the national strike on the railroads the following year.
Meanwhile, the Supreme Court, despite its look of somber, black-robed fairness, was doing its bit for the ruling elite. How could it be independent, with its members chosen by the President and ratified by the Senate? How could it be neutral between rich and poor when its members were often former wealthy lawyers, and almost always came from the upper class? Early in the nineteenth century the Court laid the legal basis for a nationally regulated economy by establishing federal control over interstate commerce, and the legal basis for corporate capitalism by making the contract sacred.
In 1895 the Court interpreted the Sherman Act so as to make it harmless. It said a monopoly of sugar refining was a monopoly in manufacturing, not commerce, and so could not be regulated by Congress through the Sherman Act (U.S. v. E. C. Knight Co.). The Court also said the Sherman Act could be used against interstate strikes (the railway strike of 1894) because they were in restraint of trade. It also declared unconstitutional a small attempt by Congress to tax high incomes at a higher rate (Pollock v. Farmers’ Loan & Trust Company). In later years it would refuse to break up the Standard Oil and American Tobacco monopolies, saying the Sherman Act barred only “unreasonable” combinations in restraint of trade.
A New York banker toasted the Supreme Court in 1895: “I give you, gentlemen, the Supreme Court of the United States—guardian of the dollar, defender of private property, enemy of spoliation, sheet anchor of the Republic.”
Very soon after the Fourteenth Amendment became law, the Supreme Court began to demolish it as a protection for blacks, and to develop it as a protection for corporations. However, in 1877, a Supreme Court decision (Munn v. Illinois) approved state laws regulating the prices charged to farmers for the use of grain elevators. The grain elevator company argued it was a person being deprived of property, thus violating the Fourteenth Amendment’s declaration “nor shall any State deprive any person of life, liberty, or property without due process of law.” The Supreme Court disagreed, saying that grain elevators were not simply private property but were invested with “a public interest” and so could be regulated.
One year after that decision, the American Bar Association, organized by lawyers accustomed to serving the wealthy, began a national campaign of education to reverse the Court decision. Its presidents said, at different times: “If trusts are a defensive weapon of property interests against the communistic trend, they are desirable.” And: “Monopoly is often a necessity and an advantage.”
By 1886, they succeeded. State legislatures, under the pressure of aroused farmers, had passed laws to regulate the rates charged farmers by the railroads. The Supreme Court that year (Wabash v. Illinois) said states could not do this, that this was an intrusion on federal power. That year alone, the Court did away with 230 state laws that had been passed to regulate corporations.
By this time the Supreme