Ohio History Journal




TOM L

TOM L. JOHNSON*

 

by ROBERT H. BREMNER

Instructor in History, Ohio State University

In 1901 the voters of Cleveland, Ohio, chose as their mayor

a resourceful and unconventional man, newly retired from a suc-

cessful business career, who was the best known American fol-

lower of Henry George. Tom L. Johnson remained in office for

eight exciting and enlightening years. Born in 1854 into an aristo-

cratic southern family which was impoverished during the Civil

War, Johnson had to go to work while still a child. At twenty-two

he was the successful inventor of the first coin fare box in use in

the United States, and at twenty-five he was already a business

rival of Mark Hanna. Converted to the single tax philosophy of

Henry George at thirty, he was a steel manufacturer at thirty-

five and had twice been elected to congress by the time he was

forty. At fifty he had been hailed by Lincoln Steffens as the best

mayor of the best governed city in America.1

Throughout his political career Johnson struck many as a

mysterious and enigmatic figure. The reason for this was not that

his political views were obscure, for he never straddled or

avoided an issue, but that they seemed to contradict his business

interests. The president of street railways, he advocated munici-

pal ownership of public utilities. A steel manufacturer, he

nevertheless favored free trade. In politics a vigorous opponent

of monopoly, as a businessman Johnson used monopolistic prac-

tices to amass a large fortune. Such a quixotic figure, his enemies

claimed, was surely a demagog. Johnson was never able to con-

vince these critics of what his friends called his "larger moral-

ity." As a matter of fact, Johnson was not troubled by, nor in-

* This article is a condensation of material relating to Johnson in Robert H.

Bremner, The Civic Revival in Ohio, a dissertation presented in partial fulfillment

of the degree of doctor of philosophy at Ohio State University in 1943.

1 Lincoln Steffens, "Ohio: A Tale of Two Cities," McClure's Magazine,

XXV (1905), 293-311.

1



2 Ohio State Archaeological and Historical Quarterly

2 Ohio State Archaeological and Historical Quarterly

terested in, questions of personal goodness or badness, and he

felt no compulsion to make excuses for the manner in which he

made his money. What he was primarily concerned with was the

advancement of his political and social program. While a mem-

ber of congress, Johnson expressed his attitude in a speech to

the house of representatives: "As far as I am personally con-

cerned I am a thorough-going monopolist, and would be willing,

outside of this Hall, to take advantage of any of the bad laws

that you put upon the statute books; but I will not defend them

here."2 The matter of Johnson's sincerity, however, ever remained

a doubtful point to many of his contemporaries. They were simply

unable to understand a man so emancipated that he did not feel

obliged to defend his business practices.

But if Johnson and his views were inexplicable to some

people, the charm of his personality was irresistible to others.

Brand Whitlock, the literary mayor of Toledo, once wrote a

short story about the crusading mayor of a large city. "Is there

anything better in life than to know you have done a good thing

and done it well?" someone asked the hero of Whitlock's story.

"Yes, just one," the mayor replied, "To have a few friends who

understand."3 Johnson was fortunate in having a great many

friends of that kind. As mayor he attracted a group of talented

young men into the public service and communicated to them

his own enthusiasm for civic activity. Several members of the

group, notably Newton D. Baker, W. B. Colver, and Frederic C.

Howe, subsequently held important posts in the Wilson admin-

istration.4 In later years nearly all of Johnson's associates recalled

their service with him as the most significant experience of their

lives. "The crusade of my youth," wrote Frederic C. Howe in

Confessions of a Reformer, "the greatest adventure of my life,

as great a training school as a man could pass through--this the

decade of struggle in Cleveland from 1901 to 1910 was to me."5

 

2 Congressional Record, 53 cong., 2 sess., 641, January 10, 1894.

3 Brand Whitlock, "The Gold Brick," American Magazine, LXVII (1908-9),

42-51.

4  Baker was secretary of war, Colver was chairman of the federal trade com-

mission, and Howe was commissioner of immigration for the port of New York.

5  Frederic C. Howe, Confessions of a Reformer (New York, 1925), 115.



Tom L

Tom L. Johnson                      3

Discovering Henry George was the crucial event in John-

son's life. One day in 1883 a news vendor on a train sold the

young businessman a copy of George's Social Problems. After

reading it, Johnson bought a copy of Progress and Poverty. Dis-

turbed by what he read and hoping that there were fallacies in

George's reasoning which he had not been able to discover, John-

son gave Progress and Poverty to his lawyer and asked him to point

out the errors in the author's logic. Unconvinced by the attorney's

objections, Johnson declared himself a convert to the Georgian

economics. Johnson may not have been an original thinker, but,

as one of his admirers pointed out many years later, he accepted

new ideas as readily as most men hold on to old ones.6

At his earliest opportunity Johnson went to Brooklyn to meet

George. It was George's influence which induced Johnson to

accept the Democratic nomination for congressman from a Cleve-

land district in 1888. Up to this time Johnson had been so pre-

occupied with business that he had never bothered to vote. De-

feated in his first attempt, he was elected on the Democratic ticket

in 1890 and again in 1892. Shortly after leaving the house of

representatives in 1895, Johnson began gradually to divest him-

self of both his transportation and steel interests. By 1901 his re-

tirement from business was complete. From then until his death

ten years later he devoted his energies almost exclusively to poli-

tics.

The major part of Johnson's four terms as mayor were con-

sumed in an almost epic struggle with the street railway com-

panies of Cleveland. Some aspects of the conflict are still very

pertinent, for the basic issue involved was a constant in American

history: the delicate adjustment between public rights and private

economic interests. Johnson's slogan in his campaigns was "Three

Cent Fares and Universal Tranfers," but both his supporters and

opponents realized that the dispute involved something deeper

than rates of fare or conditions of service on streetcars. The stake

was public control of utilities. If Johnson succeeded in bringing

street railways under public control, it was a foregone conclusion

 

6 Ibid., 129.



4 Ohio State Archaeological and Historical Quarterly

4     Ohio State Archaeological and Historical Quarterly

that gas and electric and telephone companies would be attacked

next. If Cleveland were successful, other cities would be en-

couraged to take up the fight. And if Cleveland were defeated,

the cause of public control of utilities would be discredited in

other cities throughout the nation.

"You are going to settle our street railway problems for all

of us," was the word of encouragement sent to Johnson by the chief

executive of a neighboring city.7 But the outcome of the struggle

was still undecided when Johnson left office in 1909. Not until a

year later, and then against Johnson's opposition, was a compro-

mise settlement adopted. From the beginning, Johnson contended

that municipal ownership was the only ultimate solution to the

street railway problem.8 He looked forward to the day when

streetcars would run free of charge, "like elevators in buildings,"

with the cost of operation derived from taxation. He insisted that

he was not an enemy of private property but that his fight was

waged to help the public regain public property which had been

appropriated by private individuals.

When Johnson took office, street railway franchises granted

to private companies about twenty-five years earlier were be-

ginning to expire. The laws of Ohio prohibited municipalities from

owning utilities such as street railways, and state courts had in-

validated attempts by city councils to regulate rates by ordinances.

Unable to induce the existing companies voluntarily to accept

lower fares and the degree of municipal supervision they be-

lieved essential, Johnson and the city council refused to renew

the expiring franchises. Instead they issued new grants to com-

peting companies which were pledged by the terms of their fran-

chises to provide transportation at low fares and to accept regu-

lation of service by the city.9

In an attempt to prevent these new franchises from going

into effect, the mayor's opponents secured almost sixty injunc-

tions against the city. Early in the fight they secured a court order

 

7 Brand Whitlock to Johnson, November 19, 1907, in The Letters and Journal

of Brand Whitlock, ed. by Allan Nevins (2 vols., New York, 1936), I, 84.

8 Tom L. Johnson, My Story (New York, 1911), 25-27.

9 For details of the street railway controversy in Cleveland see Bremner,

Civic Revival in Ohio, 167-209.



Tom L

Tom L. Johnson      5

revoking the charter of Cleveland. Once Johnson was arraigned

for contempt of court. Yet despite all the obstacles put in their

way, the new lines steadily increased. Fear that all of its fran-

chises would eventually pass to these three-cent lines, at last led

the old company (the several old lines having consolidated in

order to present a united front against Johnson) to seek a settle-

ment with the city. This was in 1907, six years after the con-

test had begun.

The agreement Johnson and representatives of the old com-

pany negotiated in the winter of 1907-8, provided for the merg-

ing of all street railway companies in the city into a new concern

known as the Cleveland Railway Company, to which the city

awarded a rather liberal franchise. All of the property and equip-

ment of the Cleveland Railway Company was then immediately

leased to another company, which was to operate the street rail-

way system of the city and pay the stockholders of the Cleveland

Railway Company six percent interest on the agreed valuation of

the system. The lessor consisted only of a six-man board of di-

rectors which owned all of the $10,000 worth of stock of the con-

cern. The directors received salaries and were self-perpetuating

but had no financial interest in the Cleveland Railway Company.

They were supposed to use any surplus which might accrue, after

operating costs and interest charges had been met, for extending

and improving the street railway system. Johnson regarded the

board of directors of the lessor company as unofficial public

trustees. Their interest, he said, was not profit, but good service,

economical operations, and low fares. He believed that through

them the city could enjoy the substance of municipal ownership

until the time when state laws made public ownership legally

possible.

Unfortunately, from Johnson's point of view, this settlement

was very short-lived. In October 1908, in a bitterly contested

referendum, the voters of the city rejected the franchise which

underlay the whole structure. Two years later, against Johnson's

opposition and after he had been defeated for reelection to his

fifth term, the city and the street railway company agreed upon a



6 Ohio State Archaeological and Historical Quarterly

6    Ohio State Archaeological and Historical Quarterly

new settlement known as the Tayler plan. With several later

amendments this agreement remained in effect until the city pur-

chased the street railway system about thirty years later.

For its day, the Tayler plan was an enlightened proposal,

assuring streetcar riders service at cost, with cost to include a six

percent return to the stockholders on their investment. The chief

difference between it and Johnson's plan of several years earlier

was that the Tayler plan abolished the lessor company and re-

turned control of operations to the Cleveland Railway Company.

Johnson succeeded in having a number of important provisions

written into the Tayler plan, but he regarded it as a defeat for

the cause of public control of utilities. He and the supporters of

the Tayler plan had radically different ideas regarding what

constituted a legitimate private interest. The latter thought of the

money made by a streetcar company primarily as a return on

the private capital invested in the company. They believed that

this private interest must be protected and that the best way to

accomplish that end was to leave the management of the company

to the investors and their officers. Johnson, on the other hand,

believed that the profits obtained from street railway operation

were fundamentally publicly created, for their source was the

social necessity of transportation. Consequently he insisted that

the emphasis in any utility settlement should be on the assertion

of public rights, not on the protection of the private privilege of

exploiting socially created wealth. He could have no attitude

other than outspoken opposition to a plan, which, as he saw it,

left control of the policies of the utility company to men whose

chief interest was private profit.

Another phase of what Johnson called his fight against privi-

lege was his attempt to equalize the burden of taxation in Cleve-

land. He always insisted that taxation was a human, rather than

a purely fiscal, problem. "Farms, buildings, personal property,

land pay no taxes," he wrote. "It is men and women who are

taxed and not things."10 In his autobiography he defined taxation

as "the rule by which burdens are distributed among individuals

10 Johnson, My Story, 131.



Tom L

Tom L. Johnson                      7

and corporations" and asserted that the control of the machinery

charged with assigning the distribution was a powerful agency of

class rule.11 One of his favorite observations was that there is no

privilege equal to that of having somebody else pay your taxes.

As a follower of Henry George, Johnson looked upon tax-

ation as a weapon of social readjustment. He sincerely believed

that George had pointed the way to the destruction of monopoly

and the revival of economic opportunity. But since Ohio's tax

laws made it impossible to apply the single-tax remedy, Johnson

never had an opportunity to put his theories of taxation into full

operation. In practice, his work in this field was directed toward

two ends: the taxation of railroad and public utility property on

the same basis as other urban real estate; and the reappraisal of

all property at its market value.12

The constitution of Ohio provided that all property should

be assessed at its "true value in money." Actually, when Johnson

took office in 1901, ordinary real estate was usually appraised

for tax purposes at about sixty percent of its current value. The

railroad and utility companies, however, had won the privilege of

having their properties assessed at a much lower figure, ordinarily

only about twenty percent of value. Franchises, the largest item in

the valuation of a public utility, were not taxed at all. In July

1901, Johnson's appointees to the local board charged with cor-

recting those inequalities in assessments which came to light be-

tween the decennial appraisements, startled the city by increas-

ing the tax valuation of the Cleveland gas, electricity, and street

railway companies by twenty million dollars. Meanwhile John-

son was appearing before the county auditors who were making

their regular yearly assessment of railroad property. Although

Johnson presented evidence of the striking under-appraisement

of some railroad lands, the county auditors disregarded his testi-

mony, accepted the returns filed with them by the railroad com-

panies, and set the properties down on the tax books at the usual

low figures.

 

11 Ibid., 130-131.

12 For details of Johnson's work in the field of taxation see Bremner, Civic

Revival in Ohio, 210-234.



8 Ohio State Archaeological and Historical Quarterly

8     Ohio State Archaeological and Historical Quarterly

Johnson then took his case to the state tax review board. Not

entirely to his surprise, he received no assistance from this

quarter: the state board of equalization refused to act on the rail-

road case; the state supreme court declined to issue a writ com-

pelling the board to review the railroad assessments; and the state

legislature rejected proposals for corrective legislation. But at

the same time that these agencies were refusing to help the city

increase the assessments of the railroads, they were proving them-

selves willing allies of the public utility corporations whose valu-

ations had been raised by the Cleveland board. First, a board of

tax revision, consisting of high state officials, remitted the entire

twenty million dollars of increased assessments. Then, as if to

prevent a recurrence of such an impertinent increase in appraisal

in the future, the state legislature passed an act supplanting the

local boards, whose members were appointed by the mayor, with

county boards, paid from county funds, but composed of ap-

pointees of state officials.

Johnson's first efforts to obtain revenue by taxing utilities

and railroads at the same rate as homes and ordinary business

property thus failed because of the hostility of men who con-

trolled the state tax machinery. Further tax reform had to wait

until the friends of the Johnson movement were more powerful

in the government of Ohio. To hasten the coming of that day

Johnson early branched out into state politics. Though never

himself elected to state office, he was in control of the state Demo-

cratic party organization for several years and dominated the

Cuyahoga County party organization throughout his four terms

as mayor. As a kind of political boss, he was in a position to

foster the candidacy of men who shared his approach to public

problems. The growing number of his followers who eventually

obtained seats in the state legislature provided the leadership of

that body when it at last passed under the control of the Demo-

crats.

The first fruits of Johnson's agitation for tax reform came

in 1909 with the passage of an act partially carrying out the

recommendations of a special tax commission which had been ap-



Tom L

Tom L. Johnson                     9

pointed several years earlier to study and suggest improvements

in Ohio's system of taxation. The act reduced the interval between

the periodic appraisals from ten to four years. It provided for the

election of the board of appraisers on nonpartisan ballots and

authorized them to publicize and distribute their findings to the

taxpayers of the community.

At the November elections in 1909 Johnson was himself

defeated for reelection, but the majority of tax appraisers

selected to undertake the first assessment under the new system

were men known to support his tax policy. They conducted their

appraisal on the principle that all property should be assessed

at its full market value and that, in determining value, more atten-

tion should be paid to the worth of the land site than to the im-

provements on the property. When they completed their work,

they had raised the total assessment of all property in the city

from less than 200 million dollars to 500 million. They increased

the valuation on some parcels from three to ten times. The re-

sults of the appraisement were published in pamphlets showing

the tax valuation of each piece of land in the city by street and

number. Evidently the public was satisfied that a fair appraisal

had been made, for there were fewer appeals from the assessment

of this board than there had been following earlier appraise-

ments.

A stirring and daring campaigner, Johnson brought many

innovations to Ohio politics. One of the first candidates for office

ever to appear in a newsreel, he was also a pioneer in campaigning

by automobile. Many of his political appearances were made in

a circus tent. He liked the informal atmosphere engendered by

the big top and found the tent a convenient and portable audito-

rium for carrying his ideas to the people. In an age of flowery

political oratory, Johnson adhered to a conversational manner and

was most effective in the question and answer periods which

concluded all of his tent meetings. Though a hard and resource-

ful fighter and himself subjected to unbelievably bitter personal

abuse, Johnson avoided personal attacks on his opponents, for



10 Ohio State Archaeological and Historical Quarterly

10   Ohio State Archaeological and Historical Quarterly

it was his conviction that his enemy was bad conditions, not bad

men.

A Democrat, and even something of a local boss, Johnson

was not a strict party man. He ranked loyalty to issues far more

important than allegiance to party. He put a number of nominal

Republicans in important positions in his administration and once

undertook a purge of some Democratic members of the state

legislature whom he considered reactionary. One of his most

salutary influences on local politics was his insistence that the

election of municipal officials turn upon bona fide local issues.

He never allowed his city to become a mere adjunct of a state

or national political machine, and he stirred up so much interest

in home-town transportation and tax problems that, during his

four terms, it was impossible for candidates to wage a successful

local campaign on extraneous issues like the tariff, free silver, or

imperialism.13

There is evidence that in attempting to defeat Johnson's

program the groups which were opposed to him occasionally em-

ployed violence and bribery. Much more frequently they relied

on ruses calculated to confuse or distract the voters, such as ap-

peals to party loyalty, agitation of the moral issue, or threats of

the dire consequences which would inevitably follow the dis-

turbance of "business confidence." No method, however, was more

frequently used to impede the progress of the Johnson movement

than litigation. Some of Johnson's followers were of the opinion

that the conservatism of the legal profession, combined with the

fact that many judges owed their elevation to the bench to busi-

ness groups, gave the railroads and utility interests a definite

advantage in court battles. A study of the history of liberal or

radical movements such as the one Johnson headed leads to the

conclusion, however, that winning lawsuits may not be the only,

or even the principal objective contemplated by those who appeal

to the courts. Even though the final court decision may be un-

favorable, litigation brings delay, uncertainty, and expense--all

 

13 For a discussion of Johnson's campaign methods see Bremner, Civic

Revival in Ohio, 310-334.



Tom L

Tom L. Johnson                      11

factors of benefit to those who seek to prevent public interference

with a private monopoly.

A lawsuit growing out of Cleveland's efforts to oust several

railroad companies from some valuable lakefront land illustrates

the value of the law's delays. In 1840 city officials sold a number

of railroad companies a strip of land about one hundred and fifty

feet wide on the lakeshore. In 1893 the city began a suit to oust

the railroads (i.e., to claim title for itself) from several hundred

feet of "made" land, the accretions to the strip the companies

had purchased. The railroads had appropriated this land, and

their yards and station had been built upon it. Johnson estimated

that by 1900 the land in dispute was worth from fifteen to twenty

million dollars. His first service to Cleveland, as mayor, was to

prevent the execution of an out-of-court settlement by which the

city would have conveyed the land to the railroad companies

without compensation. After years of delay, during which one

judge held the case before him, without decision, for twelve years,

the case finally was appealed to the United States Supreme Court.

In November 1914, twenty-one years after the suit was begun, the

court ruled in favor of the city.14 The decision represented a

victory for the city, to be sure, but during all the years of delay

in settling the question the railroads had been enabled to use the

land without having to pay rent.

In the street railway controversy the injunction was the legal

device most often used to combat Johnson's program. The old com-

pany appears to have followed a policy of dividing each of its

causes of action into the smallest possible fraction and then of

beginning a suit on each technicality. In this way, fifty-eight

delay-producing injunctions were issued against the city and the

low-fare companies. No matter what the final disposition of a

case, the streetcar company's attorneys could usually wangle a

temporary restraining order from the lower courts. This continual

litigation was expensive to the company of course, but it was

 

14 Cleveland and Pittsburgh Railroad Company v. City of Cleveland, Ohio,

235 U. S. 50. For a history of the case see Cleveland Plain Dealer, November

17, 1914.



12 Ohio State Archaeological and Historical Quarterly

12   Ohio State Archaeological and Historical Quarterly

less expensive than surrendering its monopoly without a fight. The

injunctions delayed the building of the three-cent line, thus pro-

longing the time when the old company could charge high fares.

If one of the purposes of the litigation was to wear down the

public enthusiasm for a municipally controlled street railway

system, it was partly successful. After nine years of struggle the

people were more willing to accept a compromise leaving the

management of the streetcar system in the hands of the old com-

pany than to continue a fight which threatened to go on indefi-

nitely.

Johnson was active in Cleveland at approximately the same

time that leaders in a number of other American cities were

striving to purify municipal politics and to improve the admin-

istration of local affairs. Johnson, however, was not a typical

municipal reformer. His aim was not primarily to expose graf-

ters and bribetakers, and he had only a subordinate interest in

revising his city's charter. Actually what he was attempting was

to effect far-reaching changes in the economic bases of urban

society. He and his supporters proposed to accomplish their ob-

jective by the destruction of a condition they called "privilege."

As a follower of Henry George, Johnson used the word priv-

ilege to indicate a method of obtaining wealth either through the

control of resources and facilities whose values were socially

derived or by the private enjoyment of law-made economic ad-

vantages. He identified privilege both with monopolies fostered

by private ownership or control of land, mineral deposits, trans-

portation systems, communication lines, and electric power serv-

ices and also with the type of monopolies sheltered by such po-

litical spoils as franchises, protective tariffs, and tax exemptions.

He felt impelled to destroy privilege because he was convinced

that the monopolistic control of the basic material requirements

of everyday life by private interests was bound to produce dis-

astrous economic and political consequences. He believed that

the struggle for private monopolies tended to corrupt politics and

also had the effect of removing actual political sovereignty from

the mass of men and of vesting it in the hands of a small group of



Tom L

Tom L. Johnson                     13

privilege holders or seekers. He believed that the existence of priv-

ilege constituted a burden on the economic life of the nation be-

cause the private control of natural resources and essential serv-

ices curtailed opportunities for economic expansion, thus pro-

ducing unemployment and poverty.

The movement which Johnson led was one of those local

experiments in a democratic revolt against plutocracy which,

taken together, comprise the larger whole we call the Progressive

movement. Johnson's fight against urban utility interests may be

likened somewhat to the battle against the trusts which was oc-

curring simultaneously on the national scene. Many of the ideas

he espoused had found earlier expression in such manifestations

of economic radicalism as the Greenback, Granger, and Populist

movements. But Johnson owes his significance less to his con-

nection with the past than to his import for the future. Leaders

like Johnson shifted the center of radical activity from the

agrarian to the urban frontier. Previously the city had been re-

garded almost universally as the problem of American democracy.

Johnson and some of his contemporaries like Golden Rule Jones,

Brand Whitlock, and Frederic C. Howe showed that the city might

well be, not the problem, but the hope of democracy. His career

furnishes evidence of the American liberal's growing interest in

social instead of strictly individual rights. He was a harbinger

of the liberals who were to demand the expansion of governmental

activity into new fields, in contrast to earlier radicals' insistence

upon curbing the power of the state. Johnson accompanied his

emphasis on the extension of governmental activities with a vig-

orous agitation for the adoption of measures to strengthen popular

control of government. Thus Johnson illustrates the growing tend-

ency of Americans to supplant their traditional fear of govern-

ment with the belief that the state is the common man's best friend.

As plainly as any other American political leader of the last half

century Johnson voiced an economic interpretation of politics.

And, especially in these days, it is worth emphasizing that this

economic interpretation was a home-grown variety, arising from

observation and study of American conditions, not from adherence

to Marxian theory.