The battle between business and democracy

Jill Lepore writes: “I, Governor of California, and How I Ended Poverty,” by Upton Sinclair, is probably the most thrilling piece of campaign literature ever written. Instead of the usual flummery, Sinclair, the author of forty-seven books, including, most famously, “The Jungle,” wrote a work of fiction. “I, Governor of California,” published in 1933, announced Sinclair’s gubernatorial bid in the form of a history of the future, in which Sinclair is elected governor in 1934, and by 1938 has eradicated poverty. “So far as I know,” the author remarked, “this is the first time an historian has set out to make his history true.”

It was only sixty-four pages, but it sold a hundred and fifty thousand copies in four months. Chapter 1: “On an evening in August, 1933, there took place a conference attended by five members of the County Central Committee of the Democratic party, Sixtieth Assembly District of the State of California.” That might not sound like a page-turner, unless you remember that at the time California was a one-party state: in 1931, almost all of the hundred and twenty seats in the state legislature were held by Republicans; not a single Democrat held a statewide office. Also useful to recall: the unemployment rate in the state was twenty-nine per cent. Back to that meeting in August, 1933: “The purpose was to consider with Upton Sinclair the possibility of his registering as a Democrat and becoming the candidate of the party for Governor of California.” What if Sinclair, a lifelong socialist, ran as a Democrat? That’s one nifty plot twist.

The pace really picks up after Sinclair adopts an acronymic campaign slogan, “END POVERTY IN CALIFORNIA” (“It was pointed out that the initials of these words spell ‘EPIC’ ”); picks a campaign emblem, passing over the eagle and the hawk (“I personally can get up no enthusiasm for any kind of bird of prey,” the candidate says) in favor of the busy bee (“she not only works hard but has means to defend herself”); explains a program of coöperative factories and farms that would implement his philosophy of “production for use” rather than for profit; proposes killing the sales tax while levying something like a thirty-per-cent income tax on anyone earning more than fifty thousand dollars a year; and promises not only to raise hell but also, preposterously, to win.

All the same, it was a shock to pretty much everyone that, in August of 1934, Sinclair won the Democratic nomination, with more votes than any primary candidate in California had ever won before. That happens in the novel, too, which is what made reading it so thrilling (or, for many people, so terrifying): watching what Sinclair imagined coming to pass. Chapter 4: “The news that the Democratic voters of California had committed their party to the EPIC plan caused a sensation throughout the country.” True! “It resulted in wide discussion of the plan in the magazines, and the formation of an EPIC Committee for the Nation.” Sort of! “A statement endorsing Sinclair for Governor was signed by a hundred leading writers, and college groups were formed everywhere throughout the country to recommend the plan for their cities and states. A group of forward-looking economists endorsed the plan, and letters of support were received from a score of United States senators and some fifty congressmen.” O.K., that part never happened.

In 1934, Sinclair explained what did happen that election year, in a nonfiction sequel called “I, Candidate for Governor, and How I Got Licked.” “When I was a boy, the President of Harvard University wrote about ‘the scholar in politics,’ ” Sinclair began. “Here is set forth how a scholar went into politics, and what happened to him.” “How I Got Licked” was published in daily installments in fifty newspapers. In it, Sinclair described how, immediately after the Democratic Convention, the Los Angeles Times began running on its front page a box with an Upton Sinclair quotation in it, a practice that the paper continued, every day, for six weeks, until the opening of the polls. “Reading these boxes day after day,” Sinclair wrote, “I made up my mind that the election was lost.”

Sinclair got licked, he said, because the opposition ran what he called a Lie Factory. “I was told they had a dozen men searching the libraries and reading every word I had ever published.” They’d find lines he’d written, speeches of fictional characters in novels, and stick them in the paper, as if Sinclair had said them. “They had a staff of political chemists at work, preparing poisons to be let loose in the California atmosphere on every one of a hundred mornings.” Actually, they had, at the time, a staff of only two, and the company wasn’t called the Lie Factory. It was called Campaigns, Inc.

Campaigns, Inc., the first political-consulting firm in the history of the world, was founded, in 1933, by Clem Whitaker and Leone Baxter. Whitaker, thirty-four, had started out as a newspaperman, or, really, a newspaper boy; he was working as a reporter at the age of thirteen. By nineteen, he was city editor for the Sacramento Union and, a couple of years later, a political writer for the San Francisco Examiner. He was friendly and gangly, and had big ears, and smoked, and never stopped talking, and typed with two fingers. He started a newspaper wire service, the Capitol News Bureau, distributing stories to eighty papers. In 1930, he sold that business to the United Press. Three years later, he was, for his political ingenuity, hired by, among others, Sheridan Downey, a prominent Democrat, to help defeat a referendum sponsored by Pacific Gas and Electric. Downey also hired Baxter, a twenty-six-year-old widow who had been a writer for the Portland Oregonian, and suggested that she and Whitaker join forces.

Baxter was small, fine-featured, red-headed, and elegant. “Oh, he was such a dear,” she would say, about someone she liked. Whitaker’s suits never looked like they fit him; Baxter’s looked like they’d fit Audrey Hepburn. Whitaker and Baxter started doing business as Campaigns, Inc. The referendum was defeated. Whitaker separated from his wife. In 1938, he and Baxter married. They lived in Marin County, in a house with a heated swimming pool. They began every day with a two-hour breakfast to plan the day. She sometimes called him Clem; he only ever called her Baxter.

In 1934, when Sinclair won the Democratic nomination, he chose Downey as his running mate. (“Uppie and Downey,” the ticket was called.) Working for Downey had been an aberration for Whitaker and Baxter, people who, it was said, “work the Right side of the street.” Campaigns, Inc., specialized in running political campaigns for businesses, especially monopolies like Standard Oil and Pacific Telephone and Telegraph. Pacific Gas and Electric was so impressed that it put Campaigns, Inc., on retainer.

Political consulting is often thought of as an offshoot of the advertising industry, but closer to the truth is that the advertising industry began as a form of political consulting. As the political scientist Stanley Kelley once explained, when modern advertising began, the big clients were just as interested in advancing a political agenda as a commercial one. Monopolies like Standard Oil and DuPont looked bad: they looked greedy and ruthless and, in the case of DuPont, which made munitions, sinister. They therefore hired advertising firms to sell the public on the idea of the large corporation, and, not incidentally, to advance pro-business legislation. It’s this kind of thing that Sinclair was talking about when he said that American history was a battle between business and democracy, and, “So far,” he wrote, “Big Business has won every skirmish.” [Continue reading…]

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One thought on “The battle between business and democracy

  1. BillVZ

    “In this profession of leading men’s minds, this is the reason I feel it must be in the hands of the most ethical, principled people—people with real concern for the world around them, for people around them—or else it will erode into the hands of people who have no regard for the world around them. It could be a very, very destructive thing.”

    The profession of leading men’s minds- religion and politics certainly fit that definition. Perhaps with a nod to the ‘world’s oldest one’ as well. At present most certainly and for decades it has indeed eroded into the hands of who have no regard for the world around them. (Karl Rove near the top of the list.)

    Thanks Paul for presenting this article by Jill Lepore from the New Yorker Magazine. Born in the middle years of the thirties and a resident of The Golden State through the seventies it was a rare historical feast of the times and principle characters for me. The most of the early works of Sinclair somehow eluded my education I relished having them filled by this article.

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