CHAPTER X

THE ADMINISTRATIONS OF THEODORE ROOSEVELT

The administrations of Mr. Roosevelt cannot be characterized by a

general phrase, although they will doubtless be regarded by historians

as marking an epoch in the political history of the United States. If we

search for great and significant social and economic legislation during

that period, we shall hardly find it, nor can we discover in his

numerous and voluminous messages much that is concrete in spite of their

immense suggestiveness. The adoption of the income tax amendment, the

passage of the amendment for popular election of Senators, the

establishment of parcel post and postal savings banks, and the

successful prosecution of trusts and combinations,--all these

achievements belong in time to the administration of Mr. Taft, although

it will be claimed by some that they were but a fruition of plans laid

or policies advocated by Mr. Roosevelt.

One who attempts to estimate and evaluate those eight years of

multifarious activity will find it difficult to separate the transient

and spectacular from the permanent and fundamental. In the foreground

stand the interference in the coal strike, the acquisition of the Panama

Canal strip, voluminous messages discussing every aspect of our complex

social and political life, vigorous and spirited interference with state

elections, as in the case of Mr. Hearst's campaign in New York, and in

city politics, as in the case of Mr. Burton's contest in Cleveland,

Ohio, the pressing of the idea of conserving natural resources upon the

public mind, acrimonious disputes with private citizens like Mr.

Harriman, and, finally, the closing days of bitter hostilities with

Congress over the Tennessee Coal and Iron affair and appropriations for

special detectives to be at executive disposal.

_Mr. Roosevelt's Doctrines_

During those years the country was much torn with the scandals arising

from investigations, such as the life insurance inquest in New York,

which revealed grave lapses from the paths of rectitude on the part of

men high in public esteem, and gross and vulgar use of money in

campaigns. No little of the discredit connected with these affairs fell

upon the Republican party, not because its methods were shown to be

worse in general than those of the Democrats, but because it happened to

be in power. The great task of counteracting this discontent fell upon

Mr. Roosevelt, who smote with many a message the money changers in the

temple of his own party, and convinced a large portion of the country

that he had not only driven them out but had refused all association

with them.

Mr. Roosevelt was thus quick to catch the prevailing public temper. "It

makes not a particle of difference," he said in 1907, "whether these

crimes are committed by a capitalist or by a laborer, by a leading

banker or manufacturer or railroad man, or by a leading representative

of a labor union. Swindling in stocks, corrupting legislatures, making

fortunes by the inflation of securities, by wrecking railroads, by

destroying competitors through rebates,--these forms of wrongdoing in

the capitalist are far more infamous than any ordinary form of

embezzlement or forgery.... The business man who condones such conduct

stands on a level with the labor man who deliberately supports a corrupt

demagogue and agitator."

* * * * *

Any one who takes the trouble to examine with care Mr. Roosevelt's

messages and other public utterances during the period of his

administration will discover the elements of many of his policies which

later took more precise form.

In his first message to Congress, on December 3, 1901, Mr. Roosevelt

gave considerable attention to trusts and collateral economic problems.

He refused to concede the oft-repeated claim that great fortunes were

the product of special legal privileges. "The creation of these great

corporate fortunes," he said, "has not been due to the tariff nor to any

other governmental action, but to natural causes in the business world,

operating in other countries as they operate in our own. The process has

aroused much antagonism, a great part of which is wholly without

warrant. It is not true that as the rich have grown richer, the poor

have grown poorer. On the contrary, never before has the average man,

the wage worker, the farmer, the small trader, been so well off as in

this country at the present time. There have been abuses connected with

the accumulation of wealth; yet it remains true that a fortune

accumulated in legitimate business can be accumulated by the person

specially benefitted only on condition of conferring immense incidental

benefits upon others."

While thus contending that large fortunes in the main were the product

of "natural economic forces," Mr. Roosevelt admitted that some grave

evils had arisen in connection with combinations and trusts, and

foreshadowed in his proposed remedial legislation the policy of

regulation and new nationalism. "When the Constitution was adopted, at

the end of the eighteenth century, no human wisdom could foretell the

sweeping changes, alike in industrial and political conditions, which

were to take place by the beginning of the twentieth century. At that

time it was accepted as a matter of course that the several states were

the proper authorities to regulate ... the comparatively insignificant

and strictly localized corporate bodies of the day. The conditions are

now wholly different, and a wholly different action is called for." The

remedy he proposed was publicity for corporate affairs, the regulation,

not the prohibition, of great combinations, the elimination of specific

abuses such as overcapitalization, and government supervision. If the

powers of Congress, under the Constitution, were inadequate, then a

constitutional amendment should be submitted conferring the proper

power. The Interstate Commerce Act should likewise be amended. "The

railway is a public servant. Its rates should be just to and open to all

shippers alike. The Government should see to it that within its

jurisdiction this is so." Conservation of natural resources, irrigation

plans, the creation of a department of Commerce and Labor, army and navy

reform, and the construction of the Panama Canal were also recommended

at the same time (1901).

In this message, nearly all of Mr. Roosevelt's later policies as

President are presaged, and in it also are marked the spirit and

phraseology which have done so much to make him the idol of the American

middle class, and particularly of the social reformer. There are, for

instance, many little aphorisms which appeal to the moral sentiments.

"When all is said and done," he says, "the rule of brotherhood remains

as the indispensable prerequisite to success in the kind of national

life for which we are to strive. Each man must work for himself, and

unless he so works no outside help can avail him; but each man must

remember also that he is indeed his brother's keeper, and that, while no

man who refuses to walk can be carried with advantage to himself or any

one else, yet each at times stumbles or halts, each at times needs to

have the helping hand outstretched to him." The "reckless agitator" and

anarchist are dealt with in a summary fashion, and emphasis is laid on

the primitive virtues of honesty, sobriety, industry, and

self-restraint. The new phrases of the social reformer also appear side

by side with the exclamations of virtuous indignation: "social

betterment," "sociological law," "rule of brotherhood," "high aims,"

"foolish visionary," "equity between man and man"--in fact the whole

range of the terminology of social "uplift."

None of Mr. Roosevelt's later messages added anything new by way of

economic doctrine or moral principle. The same notions recurred again

and again, often in almost identical language and frequently in the form

of long quotations from previous messages. But there appeared from time

to time different concrete proposals, elaborating those already

suggested to Congress. The tariff he occasionally touched upon, but

never at great length or with much emphasis. He frequently reiterated

the doctrine that the country was committed to protection, that the

tariff was not responsible for the growth of combinations and trusts,

and that no economic question of moment could be solved by its revision

or abandonment.

As to the trusts, Mr. Roosevelt consistently maintained the position

which he had taken as governor of New York and had stated in his first

message; namely, that most of the legislation against trusts was futile

and that publicity and governmental supervision were the only methods of

approaching the question which the logic of events admitted. In his

message of December, 1907, he said: "The anti-trust law should not be

repealed; but it should be made more efficient and more in harmony with

actual conditions. It should be so amended as to forbid only the kind of

combination which does harm to the general public, such amendment to be

accompanied by, or to be an incident of, a grant of supervisory power to

the Government over these big concerns engaged in interstate business.

This should be accompanied by provision for the compulsory publication

of accounts and the subjection of books and papers to the inspection of

the Government officials.... The Congress has the power to charter

corporations to engage in interstate and foreign commerce, and a general

law can be enacted under the provisions of which existing corporations

could take out federal charters and new federal corporations could be

created. An essential provision of such a law should be a method of

predetermining by some federal board or commission whether the applicant

for a federal charter was an association or combination within the

restrictions of the federal law. Provision should also be made for

complete publicity in all matters affecting the public, and complete

protection to the investing public and the shareholders in the matter of

issuing corporate securities. If an incorporation law is not deemed

advisable, a license act for big interstate corporations might be

enacted; or a combination of the two might be tried. The supervision

established might be analogous to that now exercised over national

banks. At least, the anti-trust act should be supplemented by specific

prohibitions of the methods which experience has shown have been of most

service in enabling monopolistic combinations to crush out competition.

The real owners of a corporation should be compelled to do business in

their own name. The right to hold stock in other corporations should be

denied to interstate corporations, unless on approval by the proper

Government officials, and a prerequisite to such approval should be the

listing with the Government of all owners and stockholders, both by the

corporation owning such stock and by the corporation in which such stock

is owned."

With that prescience which characterized his political career from his

entrance into politics, Mr. Roosevelt foresaw that it was impossible

for capitalists in the United States to postpone those milder reforms,

such as employers' liability, which had been accepted in the enlightened

countries of Europe long before the close of the nineteenth century. In

his message of December 3, 1907, he pointed out that "the number of

accidents to wage-workers, including those that are preventable and

those that are not, has become appalling in the mechanical,

manufacturing and transportation operations of the day. It works grim

hardship to the ordinary wage-worker and his family to have the effect

of such an accident fall solely upon him." Mr. Roosevelt thereupon

recommended the strengthening of the employers' liability law which had

been recently passed by Congress, and urged upon that body "the

enactment of a law which will ... bring federal legislation up to the

standard already established by all European countries, and which will

serve as a stimulus to the various states to perfect their legislation

in this regard."

As has been pointed out above, Mr. Roosevelt, in all of his

recommendations, took the ground that the prevailing system of

production and distribution of wealth was essentially sound, that

substantial justice was now being worked out between man and man, and

that only a few painful excrescences needed to be lopped off. Only on

one occasion, it seems, did he advise the adoption of any measures

affecting directly the distribution of acquired wealth. In his message

of December 3, 1907, he declared that when our tax laws were revised,

the question of inheritance and income taxes should be carefully

considered. He spoke with diffidence of the latter because of the

difficulties of evasion involved, and the decision of the Supreme Court

in 1895. "Nevertheless," he said, "a graduated income tax of the proper

type would be a desirable feature of federal taxation, and it is to be

hoped that one may be devised which the Supreme Court will declare

constitutional." The inheritance tax was, in his opinion, however,

preferable; such a tax had been upheld by the Court and was "far more

important for the purpose of having the fortunes of the country bear in

proportion to their increase in size a corresponding increase and burden

of taxation." He accordingly approved the principle of a progressive

inheritance tax, increasing to perhaps 25 per cent in the case of

distant relatives.

While advocating social reforms and castigating wrong-doers at home, Mr.

Roosevelt was equally severe in dealing with Latin-American states which

failed to discharge their obligations to other countries faithfully. In

his message of December, 1905, he said: "We must make it evident that we

do not intend to permit the Monroe doctrine to be used by any nation on

this continent as a shield to protect it from the consequences of its

own misdeeds against foreign nations. If a republic to the south of us

commits a tort against a foreign nation, such as an outrage against a

citizen of that nation, then the Monroe doctrine does not force us to

interfere to prevent the punishment of the tort, save to see that the

punishment does not assume the form of territorial occupation in any

shape. The case is more difficult when it refers to a contractual

obligation.... The country would certainly decline to go to war to

prevent a foreign government from collecting a just debt; on the other

hand it is very inadvisable to permit any foreign power to take

possession, even temporarily, of the custom houses of an American

republic in order to enforce the payment of its obligations; for such a

temporary occupation might turn into a permanent occupation. The only

escape from these alternatives may at any time be that we must ourselves

undertake to bring about some arrangement by which so much as possible

of a just obligation shall be paid."

* * * * *

Mr. Roosevelt's messages and various activities while he was serving the

unexpired term of President McKinley upset all of the conservative

traditions of the executive office. He intervened, without power, in the

anthracite coal strike of 1902, and had the satisfaction of seeing the

miners make substantial gains at the hands of a commission appointed by

himself, to which the contestants had agreed to submit the issues. He

began a prosecution of the Northern Securities Company at a time when

such actions against great combinations of capital were unfashionable.

He forced an investigation of the post-office administration in 1903,

which revealed frauds of huge dimensions; and he gave the administration

of public lands a turning over which led to the successful criminal

prosecution of two United States Senators. Citizens acquired the habit

of looking to the headlines of the morning paper for some new and

startling activity on the part of the President. Politicians of the old

school in both parties, who had been used to settling difficulties by

quiet conferences within the "organization," stood aghast. They did not

like Mr. Roosevelt's methods which they characterized as "erratic"; but

the death of Mr. Hanna in February, 1904, took away the only forceful

leader who might have consolidated the opposition within Republican

ranks.

_The Campaign of 1904_

Nevertheless the rumor was vigorously circulated that Mr. Roosevelt was

violently opposed by "Wall Street and the Trusts." Whatever may have

been the source of this rumor it only enhanced the President's

popularity. In December, 1903, Senator O. H. Platt wrote: "I do not know

how much importance to attach to the current opposition to Roosevelt by

what are called the 'corporate and money influences' in New York....

There is a great deal said about it, as if it were widespread and

violent. I know that it does not include the whole of that class of

people, because I know many bankers and capitalists, railroad and

business men who are his strong, good friends, and they are not among

the smaller and weaker parties, either.... Now it is a great mistake for

capitalistic interests to oppose Roosevelt.... I think he will be

nominated by acclamation, so what is to be gained by the Wall Street

contingent and the railroad interests in this seeming opposition to

him?... There is no Republican in the United States who can be elected

except Roosevelt.... He is going to be the people's candidate, not the

candidate of the trusts or of the hoodlums, but of the conservative

elements."

The Republican convention in 1904 was uneventful beyond measure. Though

Mr. Roosevelt was disliked by many members of his party, his nomination

was unavoidable, and even his opponents abstained from any word or deed

that might have disturbed the concord of the occasion. The management of

the convention was principally in the hands of the men from whom Mr.

Roosevelt afterward broke and stigmatized as "reactionary." Mr. Elihu

Root was temporary chairman, Mr. Joseph G. Cannon was permanent

chairman, Mr. Henry Cabot Lodge was chairman of the committee on

resolutions which reported the platform, Mr. W. M. Crane and Mr. Boies

Penrose were selected as members of the national committee from their

respective states, and Mr. Frank S. Black, of New York, made the speech

nominating Mr. Roosevelt. Throughout, the proceedings were harmonious;

the platform and the nomination were accepted vociferously without a

dissenting vote.

The Republican platform of 1904 gave no recognition of any of the newer

social and economic problems which were soon to rend that party in

twain. After the fashion of announcements made by parties already in

power, it laid great emphasis upon Republican achievements since the

great victory of 1896. A protective tariff under which all industries

had revived and prospered had been enacted; public credit was now

restored, Cuban independence established, peace, freedom, order, and

prosperity given to Porto Rico, the Philippine Islands endowed with the

largest civil liberty ever enjoyed there, the laws against unjust

discriminations by vast aggregations of capital fearlessly enforced,

and the gold standard upheld. The program of positive action included

nothing new: extension of foreign markets, encouragement of American

shipping, enforcement of the Fourteenth Amendment wherever the suffrage

had been curtailed, and indorsement of civil service, international

arbitration, and liberal pensions. The trust plank was noncommittal as

to concrete policy: "Combinations of capital and of labor are the

results of the economic movement of the age, but neither must be

permitted to infringe the rights and interests of the people. Such

combinations, when lawfully formed for lawful purposes, are alike

entitled to the protection of the laws, but both are subject to the laws

and neither can be permitted to break them."

In their campaign book for 1904, the Republican leaders exhibited Mr.

Roosevelt as the ideal American in a superlative degree. "Theodore

Roosevelt's character," runs the eulogy, "is no topic for difference

of opinion or for party controversy. It is without mystery or

concealment. It has the primary qualities that in all ages have been

admired and respected: physical prowess, great energy and vitality,

straightforwardness and moral courage, promptness in action, talent for

leadership.... Theodore Roosevelt, as a typical personality, has won the

hearty confidence of the American people; and he has not shrunk from

recognizing and using his influence as an advocate of the best standards

of personal, domestic, and civic life in the country. He has made these

things relating to life and conduct a favorite theme in speech and essay

and he has diligently practiced what he preached. Thus he has become a

power for wholesomeness in every department of our life as a people."

* * * * *

The Democratic nominee, Mr. Alton B. Parker, failed to elicit any

enthusiasm in the rank and file of the party. He had supported the

Democratic candidate at a time when many of his conservative friends had

repudiated Mr. Bryan altogether, and thus he could not be branded as a

"bolter." But Mr. Parker's long term of service as judge of the highest

court of New York, his remoteness from actual partisan controversies,

his refusal to plunge into a whirlwind stumping campaign, and his

dignified reserve, all combined to prevent his getting a grip upon the

popular imagination. His weakness was further increased by the

half-hearted support given by Mr. Bryan who openly declared the party to

be under the control of the "Wall Street element," but confessed that he

intended to give his vote to Mr. Parker, although the latter, in a

telegram to the nominating convention at St. Louis, had announced his

unflinching adherence to the gold standard.

The Democratic platform, except in its denunciation of the Republican

administration, was as indefinite as the occasion demanded. Independence

should be promised to the Filipinos at the proper time and under proper

circumstances; there should be a revision and gradual reduction of the

tariff by "the friends of the masses"; United States Senators should be

elected by popular vote; combinations and trusts which restrict

competition, control production, or fix prices and wages should be

forbidden and punished by law. The administration of Mr. Roosevelt was

denounced as "spasmodic, erratic, sensational, spectacular, and

arbitrary," and the proposal of the Republican platform to enforce the

Fourteenth Amendment was condemned as "Bourbon-like, selfish, and

narrow," and designed to kindle anew the embers of racial and sectional

strife. Constitutional, simple, and orderly government was promised,

affording no sensations, offering no organic changes in the political or

economic structure, and making no departures from the government "as

framed and established by the fathers of the Republic."

* * * * *

The only extraordinary incident in the campaign of 1904 occurred toward

the closing days, when Mr. Parker repeatedly charged that the Republican

party was being financed by contributions from corporations and trust

magnates. The Democratic candidate also declared that Mr. Cortelyou, as

Secretary of Commerce and Labor, had acquired through the use of

official inquisitorial powers inside information as to the practices of

trusts, and that as chairman of the Republican national committee, he

had used his special knowledge to extort contributions from

corporations. These corrupt and debasing methods had, in the opinion of

Mr. Parker, threatened the integrity of the republic and transformed the

government of the people into "a government whose officers are

practically chosen by a handful of corporate managers, who levy upon the

assets of the stockholders whom they represent such sums of money as

they deem requisite to place the conduct of the Government in such

hands as they consider best for their private interests."

These grave charges were made as early as October 24, and it was

expected that Mr. Cortelyou would reply immediately, particularly as Mr.

Parker was repeating and amplifying them. However, no formal answer came

until November 5, three days before the election, when a countercharge

was impossible. On that date Mr. Roosevelt issued a signed statement,

analyzing the charges of his opponent, and closing with the positive

declaration that "the statements made by Mr. Parker are unqualifiedly

and atrociously false."

No doubt it would have been difficult for Mr. Parker to have

substantiated many of the details in his charges, but the general truth

of his contention that the Republican campaign was financed by railway

and trust magnates was later established by the life insurance

investigation in New York in 1905, by the exposures of trust methods by

Mr. Hearst in the publication of Standard Oil Letters, and by the

revelations made before the Clapp committee of the Senate in 1912. It is

true, Mr. Roosevelt asserted that he knew nothing personally about the

corporation contributions, particularly the Standard Oil gifts, and

although he convinced his friends of his entire innocence in the matter,

seasoned politicians could hardly understand a naivete so far outside

the range of their experience.

The Democratic candidate and his friends took open pleasure in the

discomfiture produced in Republican ranks by these unpleasant

revelations, but no little bitterness was added to their cup of joy by

the other side of the story. During the life insurance investigation

one of the life insurance officers declared: "My life was made weary by

the Democratic candidates chasing for money in that campaign. Some of

the very men who to-day are being interviewed in the papers as

denouncing the men who contribute to campaigns,--their shadows were

crossing my path every step I took." Later, before the Clapp committee

in 1912, Mr. August Belmont and Mr. T. F. Ryan, corporation magnates

with wide-reaching financial interests,--the latter particularly famous

for his Tobacco Trust affiliations,--testified that they had

underwritten Mr. Parker's campaign to the amount of several hundred

thousand dollars. Independent newspapers remarked that it seemed to be

another case of the kettle and the pot.

That the conservative interests looked to the Republican party, if not

to Mr. Roosevelt, for the preservation of good order in politics and the

prevention of radical legislation, is shown by the campaign

contributions on the part of those who had earlier financed Mr. Hanna.

In 1907 a letter from the railroad magnate, Mr. E. H. Harriman, was made

public, in which the writer declared that Mr. Roosevelt had invited him

to Washington in the autumn of 1904, just before the election, that at

the President's request he had raised $250,000 to help carry New York

state, and that he had paid the money over to the Republican treasurer,

Mr. Bliss. Mr. Roosevelt indignantly denied that he had requested Mr.

Harriman to raise a dollar for "the Presidential campaign of 1904." It

will be noted that Mr. Roosevelt here made a distinction between the

state and national campaign. This distinction he again drew during the

United States Senate investigation in 1912, when it became apparent that

the Standard Oil Trust had made a large contribution to the Republican

politicians in 1904. From his testimony, it would appear that Mr.

Roosevelt was unaware of the economic forces which carried him to

victory in 1904. Indeed, from the election returns, he was justified in

regarding his victory as a foregone conclusion, even if the financiers

of the party had not taken such extensive precautions.

The election returns in 1904 showed that the Democratic candidate had

failed to engage the enthusiasm of his party, for the vote cast for him

was more than a million and a quarter short of that cast for Mr. Bryan

in 1900. The personal popularity of Mr. Roosevelt was fully evidenced in

the electoral and popular votes. Of the former he secured 336 against

140 cast for his opponent, and of the latter he polled nearly 400,000

more than Mr. McKinley. Nevertheless the total vote throughout the

country was nearly half a million under that of 1900, showing an

undoubted apathy or a dissatisfaction with the two old parties. This

dissatisfaction was further demonstrated in a startling way by the heavy

increase in the socialist ranks, a jump from about 95,000 in 1900 to

more than 400,000.

_The Achievements of Mr. Roosevelt's Administrations_

Doubtless the most significant of all the laws enacted during Mr.

Roosevelt's administrations was the Hepburn Act passed in 1906. This law

increased the number of the Interstate Commerce Commission[62] to

seven, extended the law to cover pipe lines, express companies, and

sleeping car companies, and bridges, ferries, and railway terminals. It

gave the Interstate Commerce Commission the power to reduce a rate found

to be unreasonable or discriminatory in cases in which complaints were

filed by shippers adversely affected; it abolished "midnight tariffs"

under which favored shippers had been given special rates, by requiring

proper notice of all changes in schedules; and it forbade common

carriers to engage in the transportation of commodities owned by

themselves, except for their own proper uses.

The Hepburn bill, however, did not confer upon the Interstate Commerce

Commission that power over rates which the Commission had long been

urging as necessary to give shippers the relief they expected. Senator

La Follette, fresh from a fight with the railways in Wisconsin, proposed

several radical amendments in the Senate, and endeavored without avail

to secure the open support of President Roosevelt.[63] The Senator

insisted that it would be possible under the Hepburn bill "for the

commission to determine whether rates were _relatively reasonable_, but

not that they were _reasonable per se_; that one rate could be compared

with another, but that the Commission had no means of determining

whether either rate so compared was itself a reasonable rate." No one

can tell, urged the Senator, whether a rate is reasonable until the

railway in question has been evaluated. This point he pressed with great

insistence, and though defeated at the time, he had the consolation of

having the principle of physical valuation enacted into law in

1913.[64] At all events, the railways found little or no fault with the

Hepburn law, and shortly afterward began to raise their rates in the

face of strong opposition from shippers.

Two laws relative to foodstuffs, the meat inspection act and the pure

food act, were passed in 1906 in response to the popular demand for

protection against diseased meats and deleterious foods and drugs--a

demand created largely by the revelation of shocking conditions in the

Chicago stockyards and of nefarious practices on the part of a large

number of manufacturers. The first of the measures was intended to

guarantee that the meat shipped in interstate commerce should be derived

from animals which were sound at the time of slaughter, prepared under

sanitary conditions in the packing houses, and adequately inspected by

Federal employees. The second measure covered foods and drugs, and

provided that such articles "must not contain any injurious or

deleterious drug, chemical or preservative, and that the label on each

package must state the exact facts and not be misleading or false in any

particular." The effect of the last of these measures was felt in the

extinction of a large number of patent medicine and other

quasi-fraudulent concerns engaged in interstate trade.

The social legislation enacted during Mr. Roosevelt's administrations is

not very extensive, although it was accompanied by much discussion at

the time. The most significant piece of labor legislation was the

employers' liability law enacted in 1906, which imposed a liability upon

common carriers engaged in interstate commerce for injuries sustained by

employees in their service. On January 6, 1908, the Supreme Court

declared the act unconstitutional on the ground that it interblended the

exercise of legitimate powers over interstate commerce and interference

with matters outside the scope of such commerce. The act was again taken

up in Congress, and in April of that year a second law, omitting the

objectionable features pointed out by the Court, was enacted.

A second piece of Federal legislation which is commonly called a labor

measure was the law which went into effect on March 4, 1908, limiting

the hours of railway employees engaged as trainmen or telegraph

operators. As a matter of fact, however, it was not so much the long

hours of trainmen which disturbed Congress as the appalling number of

railway disasters from which the traveling public suffered. At least it

was so stated by the Republican leaders in their campaign of 1908, for

they then declared that "although the great object of the Act is to

promote the safety of travellers upon railroads, by limiting the hours

of service of employees within reasonable bounds, it is none the less

true that in actual operation it enforces humane and considerate

treatment to employees as well as greater safety to the public."[65]

That public policy with which Mr. Roosevelt's administrations will be

most closely associated is unquestionably the conservation of natural

resources. It is true that he did not originate it or secure the

enactment of any significant legislation on the subject. The matter had

been taken up in Congress and out as early as Mr. Cleveland's first

administration, and the first important law on conservation was the act

of March 3, 1891, which authorized the President to reserve permanently

as forest lands such areas as he deemed expedient. Under this law

successive Presidents withdrew from entry enormous areas of forest

lands. This beginning Mr. Roosevelt enlarged, and by his messages and

speeches, he brought before the country in an impressive and enduring

manner the urgent necessity of abandoning the old policy of drift and of

withholding from the clutches of grasping corporations the meager domain

still left to the people. Without inquiring into what may be the wisest

final policy in the matter of our natural resources, all citizens will

doubtless agree that Mr. Roosevelt's service in this cause was valuable

beyond calculation.

Among the proudest achievements of Mr. Roosevelt's administration was

the beginning of the actual construction of the Panama Canal. A short

route between the two oceans had long been considered by the leading

commercial nations of the world. In 1850, by the Clayton-Bulwer treaty,

the United States and Great Britain had agreed upon the construction of

a canal by a private corporation, under the supervision of the two

countries and other states, which might join the combination, on a basis

of neutralization. The complete failure of the French company organized

by De Lesseps, the hero of the Suez Canal, discouraged all practical

attempts for a time, but the naval advantages of such a waterway was

forced upon public attention in a dramatic manner during the Spanish War

when the battleship _Oregon_ made her historical voyage around the

Horn.[66]

After the Spanish War was over, Mr. John Hay, Secretary of State, began

the negotiation of a new treaty with Great Britain, which, after many

hitches in the process of coming to terms, was finally ratified by the

Senate in December, 1901. This agreement, known as the Hay-Pauncefote

treaty, set aside the old Clayton-Bulwer convention, and provided that a

canal might be constructed under the supervision of the United States,

either at its own cost or by private enterprise subject to the

stipulated provisions. The United States agreed to adopt certain rules

as the basis of the neutralization of the canal, and expressly declared

that "the canal shall be free and open to the vessels of commerce and of

war of all nations, observing these Rules, on terms of entire equality,

so that there shall be no discrimination against any such nation, or its

citizens or subjects, in respect of the conditions or charges of traffic

or otherwise."[67] A proposal to forbid the fortification of the canal

was omitted from the final draft, and provision was made for "policing"

the district by the United States. The canal was thus neutralized under

a guarantee of the United States, and certain promises were made in

behalf of that country.

The exact effect of this treaty was a subject of dispute from the

outset. On the one side, it was said by Mr. Latane that "a unilateral

guarantee amounts to nothing; the effect of the Hay-Pauncefote treaty,

therefore, is to place the canal politically as well as commercially

under the absolute control of the United States."[68] On the other hand,

it was contended that this treaty superseded a mutually binding

convention, and that, although it was unilateral in character, the rules

provided in it were solemn obligations binding upon the conscience of

the American nation. Whatever may be the merits of this controversy, it

is certain that the Hay-Pauncefote agreement cleared the way for speedy

and positive action on the part of the United States with regard to the

canal.

The great question then confronting the country was where and how should

the canal be built. One party favored cutting the channel through

Nicaragua, and in fact two national commissions had reported in favor of

this route. Another party advocated taking over the old French concern

and the construction of the waterway through Panama, a district then

forming a part of Colombia. As many influential Americans had become

interested in the rights of the French company, they began a campaign in

the lobbies of Congress to secure the adoption of that route. At length

in June, 1902, the merits of the Panama case or the persistency of the

lobby, or both, carried through a law providing for the purchase of the

French company's claims at a cost of not more than $40,000,000 and the

acquisition of a canal strip from the republic of Colombia--and failing

this arrangement, the selection of the Nicaragua route.

On the basis of this law, which was signed June 28, 1902, negotiations

were begun with Colombia, but they ended in failure because that country

expected to secure better terms than those offered by the United States.

The Americans who were interested in the French concern and expected to

make millions out of the purchase of property that was substantially

worthless, were greatly distressed by the refusal of Colombia to ratify

the treaty which had been negotiated. Residents of Panama were likewise

disturbed at this delay in an enterprise which meant great prosperity

for them, and with the sympathy if not the support of the American

administration, a revolt was instigated at the Isthmus and carried out

under the protection of American arms on November 3, 1903. Three days

later, President Roosevelt recognized the independence of the new

revolutionary government. In his message in December, Mr. Roosevelt

explained the great necessity under which he labored, and convinced his

friends of the wisdom and justice of his course.

By a treaty proclaimed on February 26, 1904, between Panama and the

United States, provision was made for the construction of the canal. The

independence of the former country was guaranteed, and the latter

obtained "in perpetuity the use, occupation, and control" of a canal

zone, and the right to construct, maintain, and operate the canal and

other means of transportation through the strip. Panama was paid

$10,000,000 for her concession and promised $250,000 a year after the

lapse of nine years. The full $40,000,000 was paid over to the French

concern and its American underwriters; the lock type instead of the

sea-level canal was agreed upon in 1906; construction by private

contractors was rejected in favor of public direct employment under

official engineers; and the work was pushed forward with great rapidity

in the hope that it might be completed before 1915.

* * * * *

The country had not settled down after the Panama affair before popular

interest was again engaged in a diplomatic tangle with Santo Domingo.

That petty republic, on account of its many revolutions, had become

deeply involved in debt, and European creditors, through their

diplomatic agents, had practically threatened the use of armed force in

collecting arrears, unless the United States would undertake the

supervision of the Dominican customs and divide the revenues in a

suitable manner. In an agreement signed in February, 1905, between the

United States and Santo Domingo, provisions were made for carrying such

an arrangement into effect. The Senate, having failed to sanction the

treaty, Mr. Roosevelt practically carried out the program unofficially

and gave it substantial support in the form of American battleships.

Against this independent executive action there was a strong protest in

the Senate. The spirit of this opposition was fully expressed by Mr.

Rayner in a speech in that chamber, in which he said: "This policy may

be all right--perhaps the American people are in favor of this new

doctrine; it may be a wonderful accomplishment--Central America may

profit by it; it may be a great benefit to us commercially and it may be

in the interest of civilization, but as a student and follower of the

Constitution, I deprecate the methods that have been adopted, and I

appeal to you to know whether we propose to sit silently by, and by our

indifference or tacit acquiescence submit to a scheme that ignores the

privileges of this body; that is not authorized by statute; that does

not array itself within any of the functions of the Executive; that

vests the treaty-making power exclusively in the President, to whom it

does not belong; that overrides the organic law of the land, and that

virtually proclaims to the country that, while the other branches of the

Government are controlled by the Constitution, the Executive is above

and beyond it, and whenever his own views or policies conflict with it,

he will find some way to effectuate his purposes uncontrolled by its

limitations."

Notwithstanding such attacks on his authority, the President had not in

fact exceeded his constitutional rights, and the boldness and directness

of his policy found plenty of popular support. The Senate was forced to

accept the situation with as good grace as possible, and a compromise

was arranged in a revised treaty in February, 1907, in which Mr.

Roosevelt's action on material points received official sanction from

that authority. The wisdom of the policy of using the American navy to

assist European and other creditors in collecting their debts in

Latin-American countries was thoroughly thrashed out, as well as the

constitutional points; and a new stage in the development of the Monroe

Doctrine was thus reached. Those who opposed the policy pointed to

another solution of the perennial difficulties arising in the countries

to the southward; that is, the submission of pecuniary claims to the

Hague Court or special tribunals for arbitration.[69]

Another very dramatic feature of Mr. Roosevelt's administration was his

action in bringing Russia and Japan together in 1905 and thus helping to

terminate the terrible war between these two powers. Among the

achievements of the Hague conference, called by the Tsar in 1899, was

the adoption of "A Convention for the Peaceful Adjustment of

International Differences" which provided for a permanent Court of

Arbitration, for international commissions of inquiry in disputes

arising from differences of opinion on facts, and for the tendering of

good offices and mediation. "The right to offer good offices or

mediation," runs the convention, "belongs to Powers who are strangers to

the dispute, even during the course of hostilities. The exercise of this

right shall never be considered by one or the other parties to the

contest as an unfriendly act."

It was under this last provision that President Roosevelt dispatched on

June 8, 1905, after making proper inquiries, identical notes to Russia

and Japan, urging them to open direct negotiations for peace with each

other. The fact that the great European financiers had already

substantially agreed that the war must end and that both combatants were

in sore straits for money, clearly facilitated the rapidity with which

the President's invitation was accepted. In his identical note, Mr.

Roosevelt tendered his services "in arranging the preliminaries as to

the time and place of meeting," and after some delay Portsmouth, New

Hampshire, was determined upon. The President's part in the opening

civilities of the conference between the representatives of the two

powers, and the successful outcome of the negotiations, combined to make

the affair, in the popular mind, one of the most brilliant achievements

of his administration.

FOOTNOTES:

[62] See above, p. 133.

[63] La Follette, _Autobiography_, 399 ff.

[64] The law ordered the Interstate Commerce Commission to

ascertain the cost of the construction of all interstate

railways, the cost of their reconstruction at the present

time, and also the amount of land and money contributed to

railways by national, state, and local governments.

[65] _Campaign Textbook, 1908_, p. 45.

[66] See above, p. 209.

[67] Notwithstanding this arrangement, Congress in 1912

enacted a law exempting American coastwise vessels from canal

tolls.

[68] _America as a World Power_, p. 207.

[69] Latane, _America as a World Power_, pp. 282 ff.

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