The line occurs in a fairly early conversation with Andrei. Kira says to him, in the 1936 version, concerning sacrificing millions for the sake of the few:
You can! You must. When those few are the best. Deny the best its right to the top—and you have no best left. What are your masses but mud to be ground under foot, fuel to be burned for those who deserve it? What is the people but millions of puny, shriveled, helpless souls that have no thoughts of their own, no dreams of their own, no will of their own, who eat and sleep and chew helplessly the words others put into their mildewed brains? And for those you would sacrifice the few who know life, who are life? I loathe your ideals because I know no worse injustice than justice for all. Because men are not born equal and I don’t see why one should want to make them equal. And because I loathe most of them.
That excerpt, which was greatly altered in the 1959 edition, appears in a contribution of Robert Mayhew’s to Essays on Ayn Rand’s We the Living on page 211. His sensible remarks on the passage and its alteration are on that page and the following one.
My own bet of her meaning in 1936, which later she would deplore, is that at the time she wrote the novel she accepted the idea that its either-or, sacrifice of the few best to the mindless masses or sacrifice of the latter to the former. True, she may have thought that applied really only in the context of what the communists had made of social relations in Russia, but I don’t think so. The sentiment is consonant with salient passages in Nietzsche, with whom she had some sympathy early on and who had not been writing in the context of post-revolutionary Russia. The idea later in the paragraph, an idea Rand would also later come to reject four-square, that equal justice for all is a mistaken ideal is also in accord with Nietzsche. Rand did not yet have her later idea that sacrifice is unnecessary where general independence is possible—and it is possible—nor her later idea that every individual has the same fundamental rights because every individual is an end in himself, I would suggest.
By the time she had completed The Fountainhead, Rand had rejected the bogus (and perhaps ambivalent) ideas she struck from the 1959 edition of that paragraph in We the Living.
Tidbits
The image of workers throwing themselves to work at office or factory as if into a burning furnace is repeated, though now in a purely wholesome and equalitarian way, in two places in Fountainhead: at Roark’s firm and Wynand’s newpaper plant. Notice that image of chewing words in the 1936 (and 1959) paragraph? Ever heard of chewing on ideas? That too is in Nietzsche, and with the positive meaning Rand would give it in the years of her mature philosophy.
From my own work under the heading Nietzsche v. Rand:
–– Rand 1929–38 [A](http://www.objectivistliving.com/forums/index.php?showtopic=8121&view=findpost&p=92145), [B](http://www.objectivistliving.com/forums/index.php?showtopic=8121&view=findpost&p=93470), [C](http://www.objectivistliving.com/forums/index.php?showtopic=8121&view=findpost&p=94210)
–– Rand 1938–46 [A](http://www.objectivistliving.com/forums/index.php?showtopic=8121&view=findpost&p=95850), [B](http://www.objectivistliving.com/forums/index.php?showtopic=8121&view=findpost&p=97310), [C](http://www.objectivistliving.com/forums/index.php?showtopic=8121&view=findpost&p=98676), [D](http://www.objectivistliving.com/forums/index.php?showtopic=8121&view=findpost&p=99930), [E](http://www.objectivistliving.com/forums/index.php?showtopic=8121&view=findpost&p=100829)