stimulated industry。 Exports of raw material and food products
stimulated mining； grazing； and farming。 European capital sought
investments in American railroads； mines； and industrial under…
takings。 In the decade following the war the output of pig iron
doubled； that of coal multiplied by five； and that of steel by
one hundred。 Superior iron and copper； Pennsylvania coal and oil；
Nevada and California gold and silver； all yielded their enormous
values to this new call of enterprise。 Inventions and
manufactures of all kinds flourished。 During 1850…60
manufacturing establishments had increased by fourteen per cent。
During 1860…70 they increased seventy…nine per cent。
The Homestead Act of May 20； 1862； opened vast areas of public
lands to a new immigration。 The flow of population was westward；
and the West called for communication with the East。 The Union
Pacific and Central Pacific railways； the pioneer
transcontinental lines； fostered on generous grants of land； were
the tokens of the new transportation movement。 Railroads were
pushing forward everywhere with unheard…of rapidity。 Short lines
were being merged into far…reaching systems。 In the early
seventies the Pennsylvania system was organized and the
Vanderbilts acquired control of lines as far west as Chicago。
Soon the Baltimore and Ohio system extended its empire of trade
to the Mississippi。 Half a dozen ambitious trans…Mississippi
systems； connecting with four new transcontinental projects； were
put into operation。
Prosperity is always the opportunity of the politician。 What is
of greatest significance to the student of politics is that
prosperity at this time was organized on a new basis。 Before the
war business had been conducted largely by individuals or
partnerships。 The unit was small； the amount of capital needed
was limited。 But now the unit was expanding so rapidly； the need
for capital was so lavish； the empire of trade so extensive； that
a new mechanism of ownership was necessary。 This device； of
course； was the corporation。 It had； indeed； existed as a trading
unit for many years。 But the corporation before 1860 was
comparatively small and was generally based upon charters granted
by special act of the legislature。
No other event has had so practical a bearing on our politics and
our economic and social life as the advent of the corporate
device for owning and manipulating private business。 For it links
the omnipotence of the State to the limitations of private
ownership； it thrusts the interests of private business into
every legislature that grants charters or passes regulating acts；
it diminishes； on the other hand； that stimulus to honesty and
correct dealing which a private individual discerns to be his
greatest asset in trade； for it replaces individual
responsibility with group responsibility and scatters ownership
among so large a number of persons that sinister manipulation is
possible。
But if the private corporation； through its interest in broad
charter privileges and liberal corporation laws and its devotion
to the tariff and to conservative financial policies； found it
convenient to do business with the politician and his
organization； the quasi…public corporations； especially the steam
railroads and street railways； found it almost essential to their
existence。 They received not only their franchises but frequently
large bonuses from the public treasury。 The Pacific roads alone
were endowed with an empire of 145；000；000 acres of public land。
States； counties； and cities freely loaned their credit and gave
ample charters to new railway lines which were to stimulate
prosperity。
City councils； legislatures； mayors； governors； Congress； and
presidents were drawn into the maelstrom of commercialism。 It is
not surprising that side by side with the new business
organization there grew up a new political organization； and that
the new business magnate was accompanied by a new political
magnate。 The party machine and the party boss were the natural
product of the time； which was a time of gain and greed。 It was a
sordid reaction； indeed； from the high principles that sought
victory on the field of battle and that found their noblest
embodiment in the character of Abraham Lincoln。
The dominant and domineering party chose the leading soldier of
the North as its candidate for President。 General Grant； elected
as a popular idol because of his military genius； possessed
neither the experience nor the skill to countermove the
machinations of designing politicians and their business allies。
On the other hand； he soon displayed an admiration for business
success that placed him at once in accord with the spirit of the
hour。 He exalted men who could make money rather than men who
could command ideas。 He chose Alexander T。 Stewart； the New York
merchant prince； one of the three richest men of his day； for
Secretary of the Treasury。 The law； however； forbade the
appointment to this office of any one who should 〃directly or
indirectly be concerned or interested in carrying on the business
of trade or commerce；〃 and Stewart was disqualified。 Adolph E。
Borie of Philadelphia； whose qualifications were the possession
of great wealth and the friendship of the President； was named
Secretary of the Navy。 Another personal friend； John A。 Rawlins；
was named Secretary of War。 A third friend； Elihu B。 Washburne of
Illinois； was made Secretary of State。 Washburne soon resigned；
and Hamilton Fish of New York was appointed in his place。 Fish；
together with General Jacob D。 Cox of Ohio； Secretary of the
Interior； and Judge E。 Rockwood Hoar of Massachusetts；
Attorney…General； formed a strong triumvirate of ability and
character in the Cabinet。 But； while Grant displayed pleasure in
the companionship of these eminent men； they never possessed his
complete confidence。 When the machinations for place and favor
began； Hoar and Cox were in the way。 Hoar had offended the Senate
in his recommendations for federal circuit judges （the circuit
court was then newly established）； and when the President named
him for Justice of the Supreme Court； Hoar was rejected。 Senator
Cameron； one of the chief spoils politicians of the time； told
Hoar frankly why： 〃What could you expect for a man who had
snubbed seventy Senators！〃 A few months later （June； 1870）； the
President bluntly asked for Hoar's resignation； a sacrifice to
the gods of the Senate； to purchase their favor for the Santo
Domingo treaty。
Cox resigned in the autumn。 As Secretary of the Interior he had
charge of the Patent Office； Census Bureau； and Indian Service；
all of them requiring many appointments。 He had attempted to
introduce a sort of civil service examination for applicants and
had vehemently protested against political assessments levied on
clerks in his department。 He especially offended Senators Cameron
and Chandler； party chieftains who had the ear of the President。
General Cox stated the matter plainly： 〃My views of the necessity
of reform in the civil service had brought me more or less into
collision with the plans of our active political managers and my
sense of duty has obliged me to oppose some of their methods of
action。〃 These instances reveal how the party chieftains insisted
inexorably upon their demands。 To them the public service was
principally a means to satisfy party ends； and the chief duty of
the President and his Cabinet was to satisfy the claims of party
necessity。 General Cox said that distributing offices occupied
〃the larger part of the time of the President and all his
Cabinet。〃 General Garfield wrote （1877）： 〃One…third of the
working hours of Senators and Representatives is hardly
sufficient to meet the demands made upon them in reference to
appointments to office。〃
By the side of the partizan motives stalked the desire for gain。
There were those to whom parties meant but the opportunity for
sudden wealth。 The President's admiration for commercial success
and his inability to read the motives of sycophants multiplied
their opportunities； and in the eight years of his administration
there was consummated the baneful union of business and politics。
During the second Grant campaign （1872）； when Horace Greeley was
making his astounding run for President； the New York Sun hinted
at gross and wholesale briberies of Congressmen by Oakes Ames and
his associates who had built the Union Pacific Railroad； an
enterprise which the United States had generously aided with
loans and gifts。
Three committees of Congress； two in the House and one in the
Senate （the Poland Committee； the Wilson Committee； and the
Senate Committee）； subsequently investigated the charges。 Their
investigations disclosed the fact that Ames； then a member of the
House of Representatives； the principal stockholder in the Union
Pacific； and the soul of the enterprise； had organized； under an
existing Pennsylvania charter； a construction company called the
Credit Mobilier； whose shares were issued to Ames and his
associates。 To the Credit Mobilier were issued the bonds and
stock of the Union Pacific； which had been paid for 〃at not more
than thirty cents on the dollar in road…making。〃* As the United
States； in addition to princely gifts of land； had in effect
guaranteed the cost of construction by authorizing the issue of
Government bonds； dollar for dollar and side by side with the
bonds of the road； the motive of the magnificent shuffle； which
gave the road into the hands of a construction company； was
clear。 Now it was alleged that stock of the Credit Mobilier；
paying dividends of three hundred and forty per cent； had been
distributed by Ames among many of his fellow…Congressmen； in
order to forestall a threatened investigation。 It was disclosed
that some of the members had refused point blank to have anything
to do with the stock； others had refused after deliberation；
others had purchased some of it outright； others； alas！； had
〃purchased〃 it； to be paid for out of its own dividends。
* Testimony before the Wilson Committee。
The majority of the members involved in the nasty affair were
absolved by the Poland Committee from 〃any corrupt motive or
purpose。〃 But Oakes Ame