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THE POPULAR SCIENCE MONTHLY. 



When, in 1873, Adolph Wagner read before the German Verein 

 fiir Socialpolitik an elaborate paper on joint-stock companies, he 

 made many suggestions as to the reform of corporation law. But 

 he concluded by defending the thesis that, while the reform of 

 corporation law was indispensable, this alone, however perfectly 

 accomplished, could not suffice to eliminate the evils of corporate 

 management of property ; he contended that corporations must 

 continue to be mischievous until they are restricted to a narrower 

 field of activity than that now occupied by them ; that the state, 

 in its various branches, must assume control of those enterprises 

 that are of necessity monopolies. 



To the interminable discussion recalled by the name of Wag- 

 ner and the mention of his thesis it is here desired to contribute 

 but a single suggestion. Spencer and others dwell always upon 

 the distinction between " compulsory co-operation " through the 

 state, which is said to be characteristic of a " militant regime" 

 and " voluntary co-operation " through private associations, which 

 is said to be the proper thing under an " industrial regime." ISTow, 

 is it not true that the distinction between these two kinds of " co- 

 operation " is fading out ? Co-operation can be wholly " volun- 

 tary " only when isolation is a possible alternative. Is not indus- 

 trial isolation becoming almost as impossible as political isola- 

 tion ? Co-operation through the state is becoming less and less 

 " compulsory " in the old significance of the term, because it is 

 becoming more and more possible to choose what government we 

 will live under. This comes from increased facilities, both physi- 

 cal and legal, for moving from one state to another. Formerly, 

 a man must obey the state under which he was born ; his " co- 

 operation " with it was, indeed, compulsory. Now, expatriation 

 is a comparatively simple and pleasant alternative to obedience. 

 States and nations are coming to compete with each other for 

 desirable citizens, as producers of services or commodities for- 

 merly competed with each other for purchasers. There can be 

 no doubt that Bismarck's hand was less heavy upon Germany 

 because so many of her citizens emigrated, and so many more 

 of them might have emigrated to this or other countries. Within 

 the States and cities of our own republic we see our Legislatures 

 and town councils continually coerced by considerations of at- 

 tracting or retaining desirable classes of citizens. It is easier to 

 escape from the power of the Legislature of Pennsylvania than 

 from the influence of the Pennsylvania Railroad ; it is easier to 

 get beyond the reach of the tax-gatherers of all our States than 

 to cease to pay tribute to the Standard Oil Company or to the 

 anthracite coal pool. The point may be restated thus: The 

 ^coming servitude" to which we are advancing through the 

 increasing dominance of the state will be modified by the power 



