Part 26 (1/2)
Rent values, like land values and market values, are exponents of social organization. Human lives, enter into the equation of these values. The absence of people diminishes these values, the presence of people increases them. For this reason, rents are highest in great cities, lowest in the spa.r.s.ely settled country, touching zero on lands occupied by nomads. Land values, are affected in the same way. This will give us a clue, to the transitory character of wealth composed of values. It will give us another reason, for the shrinkage in value of farm lands, and the increased wealth of cities; which follows the migration of people from country to city.
”We may now consider another important factor, which affects rent values in great cities. It is the spur of a sharp want, of the urgent necessity of helplessness, which must drive and control the actions of a large majority of the inhabitants. The presence of these elements is necessary, in order to create the highest markets for rents. The larger the throng and the keener the necessities of the crowd of bidders competing, the higher the prices they will pay for rent. Under the reign of the compet.i.tive system, this is a conclusive demonstration of the truth of the saying, 'That the necessities of the poor, are the opportunities of the rich.' Is anything further needed, to prove that the compet.i.tive system is the essence of a cruel barbarism, which blots the civilization and shames the humanity of the republic? Why not change it for the co-operative system?
”Under the progressive and beneficent reign of co-operation, there would be homes for the homeless, land for the landless, work for the unemployed and independence for all. This would mean, a total absence of want; that imperative spur, which is so necessary to the life of compet.i.tion.
”Transportation and taxation, are two factors yet unnoticed, which materially affect rent values in great cities.
”Taking up the question of transportation; we soon discover its importance. The great manufacturing city, is the center of a complete network of railroads. The inhabitants of the city, are at the mercy of these railroads. Nominally, they are supposed to be competing lines. As a matter of fact, by means of traffic a.s.sociation, they become one huge, consolidated monopoly. A monopoly so dangerous, so powerful, so unscrupulous, and so voracious, that it does not hesitate in fixing and maintaining rates so exorbitant, as to be actually prohibitory, at least so far as two-thirds of the city dwellers are concerned. Meanwhile the monopoly arbitrarily depresses rents and land values in the country, while it increases them in the city.
”Let me give you an ill.u.s.tration of the methods, by which these results are accomplished. Take if you please, the case of an average city, factory-worker; receiving an average wage of one dollar and fifty cents per day. On this wage, he has a family to support. In the country, thirty miles away, he can have a comfortable house, with a nice large garden, for the moderate rent of five dollars per month. A most desirable home! But, here comes the opportunity for the railroad! A ten cent fare each way, six days in the week, would pay the railroad a handsome profit. But, a handsome profit does not satisfy a monopoly! The handsome profit must be doubled six times, before it will consent to serve the public! As a result, this workman, not having the ready cash with which to purchase a monthly commutation ticket, must pay to the monopoly, at its lowest rate (two cents per mile) the gross amount of one dollar and twenty cents per day for transportation. Subtract this sum from the workman's daily wage; there will remain the scant trifle of thirty cents, with which to pay bills for food, fuel, clothing, medicine and other family expenses. Utterly impossible! Even if the owner of the country house and lot, should consent to reduce its price and its rent one-half, the workman would still be prohibited by the railroad, from taking advantage of the reduction. He would gladly pay the ten cent fare, for then he would be able to pay ten dollars per month rent, for the luxury of occupying such a desirable country home.
This would be a blessing to all interested parties; still, it cannot be, because the monopoly says no! Being a monopoly under the protection of the compet.i.tive system, its dictates may not be questioned.
”Although, the case cited, may be duplicated a thousand times, every day in the week, in every large city of the republic; yet, everywhere, on all possible occasions, the common sense of the people is outraged, and their ears offended, by the loud shouts of the compet.i.tive leaders, who praise without stint the great usefulness of the monopolistic trust.
Solemn as owls, with an air of great learning, they a.s.sure the people that these beneficent trusts, are the natural outgrowth of high-grade business methods, which must be let alone. Do the poor people, the farmers, the country land owners, and the working men, join in these shoutings? Obviously and most a.s.suredly, they do not!
”Let us now follow our factory workman back to the city, for the purpose of noting the effect of this monopolized transportation, on city rents.
Baffled in his desire to live in the country, he seeks to make the best of a bad situation. As a consequence, he is obliged to pay to the owner of some tenement house, a rental of fifteen dollars per month for three small rooms; poorly ventilated, unfurnished and unheated. These rooms are so undesirable on account of difficult access, bad location, unsavory smells, and the immediate presence of other tenants in the house, who are quarrelsome, drunken, filthy and generally disreputable; that but for the prohibitory tariff maintained by the railroads they would remain unoccupied, even if the rent should be reduced to seven dollars and fifty cents per month. However, poor workmen receiving scant wages, may not expect to be choosers. They with their wives and children, must ever bravely strive to adjust themselves to their environments, which more often than otherwise, prove cruelly bitter and oppressive.
”In the case of our artisan, who is a brave, industrious, hopeful fellow; after paying his rent, he will have left from his monthly wages, the small sum of twenty-one dollars. Providing of course, that throughout the month, he has been so fortunate as to remain well and to lose no time. With this amount, (seventy cents per day) he must manage as best he can, under such adverse circ.u.mstances, to feed, warm, clothe, shoe, and protect his family. With such a meagre sum to supply so many wants, it is impossible for him, even under the most favorable circ.u.mstances, to make petty savings with which to meet emergencies.
When the misfortune of sickness overtakes him, the situation becomes appalling!
”From this ill.u.s.tration, we may judge how much the city is indebted to the railroad monopoly for its high rents. To great cities, high rent is a matter of the utmost importance. Take all rent advantages from them, and the entire list of their manufacturing industries, could be carried on in country villages with equal profit. It is quite evident then, that these cities are alive to the fact that rent is a measure of the value of locations.”
”Before going farther, Fillmore, allow me to inquire! Why could not these working men and their families, who are confined to the city by the high rates of the railroad monopoly, find cheap country homes near the city; say within a radius of from five to ten miles?”
”Thank you George, for such an opportune question! Its answer leads directly to a discussion of the question of taxation.
”A land monopoly, is more to be feared, more harmful to the poor and more disastrous to the interests of the general public, than any other kind. The worst form of land monopoly, may be found in full force, along the outskirts of large cities. These monopolies are made possible, by the unjust application of a faulty system of taxation.
”As a preliminary step, a hungry host of individual capitalists and land syndicates, proceed to purchase large tracts of adjacent lands at farm prices. These lands are then sub-divided into villa sites, and into a variety of sizes of town lots. Prices are placed on these lots, which would about equal the value of the ground, when in course of time, at the edge of the city, they should be covered by dwellings or business houses. This accomplished, the holders like cormorants, sit and wait for the growth of the city and the efforts and capital of other people, to so increase the value of their holdings, that they can realize their prices and take their profits. These periods of waiting, may cover a long time, often, from one to twenty years. Meanwhile, these monopolized lands are kept out of use, because on account of high price, they cannot be used for agricultural purposes.
”Why can these land monopolists afford to wait so long? Because an inequitable system of taxation, discriminates in their favor; offering aid and encouragement for them to do so. Without this aid, it would be impossible to keep these lands out of use.
”How can this happen? In the first place, these sub-divided lands, as a whole in large tracts, are a.s.sessed at the rural rates applied to unused and unoccupied lands. These a.s.sessed values, may be so low, as to be less than one per cent of the asking price of the lots. As time pa.s.ses, they are liable to be slowly increased. Under such a discriminating system of a.s.sessment, the taxes that may be collected, are merely nominal. This unequal system of taxation, is applied, in a proportionate degree, to all unoccupied lands inside the city limits, which are held out of use by the land speculators.
”How does this state of affairs affect city rents, and at the same time, a.s.sist in preventing the poorer cla.s.ses from enjoying the advantage of country homes? First, it establishes a broad zone of monopolized land around the city. This zone continues to increase in width with the growth of the city. Scattered through this zone, are many tracts of farming lands in active use. For this reason, they have to bear an extra burden of taxes, in order to equalize the low rates on such large tracts of idle land. These heavy taxes are patiently borne by the resident farmers, with the hope of reimburs.e.m.e.nt in the near future, by being able to sell their farms for extraordinary prices. In this way, abnormal prices become firmly established throughout the zone; which like some great barrier most effectively confines the working man and his family, to the narrow limits of a city tenement, with its high rents.
”If a builder with some idle capital, should wish to erect a considerable number of modest cottages, within the limits of this monopolized zone; with the purpose of renting them to working men; he would find it impossible, or at least impracticable to do so. Why?
Because he would have to pay almost city prices for the ground; then, having covered the lots with houses, he would be obliged to pay a heavy penalty for this outlay of capital, by the grievous burden of taxation, which would fall upon him. Houses built under these circ.u.mstances, could not be let at a rent low enough to be within the means of the working man.
”The number of people who are confined to city life by the causes named, is very large. Just how large, I have no means of ascertaining.
Families, who are subsisting on incomes of ten dollars per week and less, furnish a large proportion of this number.
”We have seen that the disastrous crowding, the alarming density of our large city populations, is mainly due to two causes. High transportation, caused by the railroad combine; and an outrageous land monopoly, made possible by a bad system of taxation. We have seen, that this dense ma.s.s of needy humanity, constantly creates such a fierce compet.i.tion, that rents must grow higher and wages must grow lower. We have seen, that the causes named, are steadily diminis.h.i.+ng the wealth of rural sections, by transferring it to the great city. We have seen that this whole movement, which tends to transform the great majority of the independent citizens of a republic, into the financial slaves of an oligarchy, is the natural outgrowth of the compet.i.tive system. Taught by history, we know, that as the oligarchy rises and reigns, the republic dies.
”Knowing the causes which have produced these conditions, we are prepared to discover, and to apply the most efficient remedies. It is only by a.s.sociated effort, that rural populations can successfully oppose the concentration of wealth in cities. The well organized ma.s.s, becomes a great power. The new century demands a new industrial organization. The co-operative system, answers the demand. It is in harmony with the idea, that life is the most precious of all things.