"Prince Ching, for the first time since the passing away of

their majesties, appeared officially as the head of the

foreign board. The heads of the various governmental

departments were present, with the members of the imperial

clan, and, in addition, several thousand minor officials, all

in white, had assembled at imperial command. At the conclusion

of the functions, in honor of the dead, the diplomats paid

homage to Prince Chun, the regent."

On the 2d of December the strict mourning observed at Peking

was suspended briefly, to permit the ceremonies attending the

ascension of the dragon throne by the child-Emperor, Pu-Yi,

who, as Emperor, took the name of Hsuan-Tung. The ceremonies,

described to the Associated Press, lasted but half an hour.

"The function began by the princes of the imperial family and

the high officials of the empire kowtowing to the memorial

tablets of their late majesties. After this they all kowtowed

in turn to Pu-Yi: Pu-Yi then offered a sacrifice before the

tablets of the Emperor and the Dowager Empress. After this he

was relieved of his dress of mourning and clad with much care

in a diminutive imperial garment, embroidered with the

imperial dragon. His nurses performed this duty with great

attention and care. Thus arrayed, the toddling Emperor

ascended the throne amid a fanfare of drums, bells and

firecrackers. He made his way alone and showed no need of the

assistance which willing hands would have given him had his

little feet faltered. From the throne Pu-Yi kowtowed to his

stepmother, the Dowager Empress Yiahonala. He then received

the kowtows, while still on the throne, of all the princes and

officials present. This over, he descended from the throne and

was again clad in his little dress of mourning.

"The ceremony took place in the throne hall of the Forbidden

City. The officials present were selected with great care and

were the highest men in the empire. According to an old

established custom, a number of humble coolies, men from the

lowest walks of life, were brought into the sacred precincts

of the Forbidden City to act as witnesses. The soldiery played

but an inconspicuous part in the proceedings."

Following the ceremony, an imperial edict proclaiming the

ascension was issued. This edict grants amnesty for certain

specified offences; rewards all the imperial princes,

princesses, and dukes; promotes all officials by one degree

and bestows honors on their parents; erases the demerits

entered against minor officials; advances the degree of

scholars; dismisses all pending petty criminal cases; excuses

certain liabilities, and grants bounties to the soldiers in

the service of the empire.

CHINA: A. D. 1908 (December).

Decree reaffirming the Constitutional Programme of the late

Empress Dowager.

An imperial edict reaffirming the determination of the new

government of China to carry out in its entirety the

Constitutional programme laid down by the late Empress Dowager

of China in August, 1908, was promulgated on the 4th of

December. A literal translation was made public at Washington

in January as follows:

"On the first day of the 8th moon (August 27, 1908), the late

Emperor reverently received the excellent decree of the late

great Empress Dowager strictly ordering the officials and

people of Peking and of the provinces to carry out completely

by the ninth year all the preparatory work, so that at the

appointed time the Constitution may be proclaimed. Also

proclamations for the members of Parliament to assemble, and

other decrees brightly manifested the sacred instructions, and

all between the seas applauded.

{100}

From ourselves down to the officials and people high and low

all must sincerely obey the excellent decree previously

issued. The eighth year of Hsuan T’ung [whose first year dates

from January 22, 1909] is the limit of time. Let there be no

‘reabsorption of sweat’ in this matter. Our hope is that this

will certainly be carried out. Let the officials of Peking and

the provinces on no account look idly on, and procrastinate,

delaying the opportune time. Let patriotism be shone forth.

Exert yourselves that constitutional government may be

established. And court and ‘wilds’ (people) may have peace;

and so we may comfort the spirits of the late great Empress

Dowager and the late Emperor in heaven, and make firm the

foundations of countless years of peaceful government."

CHINA: A. D. 1909.

Progress in the opium reform.

See (in this Volume)

OPIUM PROBLEM.

CHINA: A. D. 1909.

Progress in technical education.

See (in this Volume)

EDUCATION: CHINA: A. D. 1909.

CHINA: A. D. 1909.

Existing treaties with United States and existing laws in the

latter country relative to the admission of Chinamen.

The question of their consistency with each other.

Present status of the question.

See (in this Volume)

RACE PROBLEMS: IN THE UNITED STATES.

CHINA: A. D. 1909 (January).

Abrupt dismissal of Viceroy Yuan Shih-kai from his offices.

Much disturbance of feeling and apprehension of a troublesome

reaction in Chinese policy was excited among the foreign

representatives in China, on the 2d of January, 1909, by the

sudden dismissal of the able and powerful Viceroy of Chi-li,

Yuan Shih-kai, from all his offices. He had been looked upon

as the great leader of progress in China,—the statesman to be

counted on for the most and best influence in the government

of the Empire for some years to come. He had the confidence of

foreign powers, and was supposed to have acquired a sure

footing in the councils at Peking. Latterly, however, it is

said to have become known in Peking that "a powerful Manchu

cabal was working for his downfall, led by Tieh-liang, the

Minister of War, and supported by the aged doctrinaire and

Chinese ex-Viceroy, Chang Chih-tung," and the stroke which

overthrew him at the beginning of the new year was ascribed to

that source. "The cabal has been successful," was the wired

message of the Peking correspondent of the London _Times_

to his paper; and he summarized the merits of the fallen

statesman thus: "No man in China deserved better of his

country. He has been in the forefront of progress, and is the

best administrator China has produced in this generation. When

Governor of Shantung in 1900 his action in resisting the Boxer

insurrection and in safeguarding foreigners really saved the

Empire from disruption. He created China’s modern army and was

the leader of the modern educational movement in China, and

his famous memorial of September 2, 1905, urging the summary

abolition of the antiquated system of literary examination was

epoch-making. Under his Viceroyalty the Metropolitan province

became the most advanced in the Empire. With Tang Shao-yi he

led the anti-opium movement. Since he entered the Ministry for

Foreign Affairs China has attained a measure of respect among

the Powers which was unknown before."

Some weeks after the blow had fallen, and when the peculiarly

Oriental manner of its infliction had been learned, a letter

from Peking to the New York _Evening Post_ told of it as

follows:

"At 11 a. m. on Saturday, January 2, the grand councillors

were summoned by the regent. Prince Ching had evidently heard

a whisper of what was to come, and he pleaded illness. The

other grand councillors answered the summons promptly, but

when Yuan reached the door of the council chamber he was told

that he was not wanted. Three grand councillors therefore went

in and found the regent awaiting them with the edict

dismissing Yuan Shih-kai already drawn up. ‘I want no

discussion. Sign this edict!’ said the regent. Chang Chih-tung

turned to reply. The regent repeated his words impressively,

and the edict was signed without further demur.

"Within the next hour, while Yuan Shih-kai was hastily making

plans for his personal safety, the news flew around Peking and

the city throbbed with excitement. Every one but his immediate

councillors was astounded at Prince Chun’s temerity. Never in

the history of China had such a man as Yuan been thrown out of

office at such short notice. To the Western mind, however,

there was nothing very harsh in the edict; it said simply:

"‘Yuan Shih-kai, a member of the Grand Council and president

of the Waiwupu, formerly received repeated offices and

advancement under the late Emperor. After our enthronement we

gave him great honors, because we considered that his talent

certainly was one that could be made use of, if he exerted

himself in the public service. Unexpectedly Yuan Shih-kai has

now contracted rheumatism in the foot, which makes it hard for

him to walk and difficult for him to attend to the duties of

his offices. Yuan Shih-kai, therefore, is ordered to vacate

his posts and return to his native place to nurse his

disorder. Thus is our great mercy to him manifested.’"

Yuan Shih-kai left Peking in haste, evidently in fear of his

life, and it was expected that his whole following of friends

and supporters would be swept out of their offices and

employments. But no such result followed, and credit began to

be given to the assurances of the Imperial Government that the

dismissal of Yuan meant no reversal of policy or reaction

whatever. He was distrusted, it was intimated, because he had

been disloyal to the late Emperor in 1898, when the latter

attempted great reforms.

See, in Volume VI. of this work,

CHINA: A. D. 1898 (JUNE-SEPTEMBER), and after.

Yuan Shih-kai was then the chief agent and instrument of the

Dowager-Empress in overcoming the well-meaning but weak

sovereign and annulling his reformative work. Hence, it was

claimed, the present Government’s distrust of him.

The Ministers of Great Britain and the United States had

ventured some questions as to the significance of the act, but

their colleagues did not join them, and no further discussion

of the matter diplomatically took place.

CHINA: A. D. 1909 (February).

Meeting of the International Opium Commission at Shanghai.

See (in this Volume)

OPIUM PROBLEM.

CHINA: A. D. 1909 (May).

New Russo-Chinese Agreement concerning the

Chinese Eastern Railway.

Municipalities on the Line.

The Kharbin question.

The Chinese Eastern Railway, so named, is the line which

Russia, by Convention with China in August, 1896, obtained

permission to construct, from a point on her Trans-Siberian

Railway, through Northern Manchuria, to Vladivostok.

{101}

Under that agreement the Russian authorities claimed a right

to institute certain organizations of municipal administration

at Kharbin and other towns of rising importance on the line.

This right was challenged in 1908 by the American Consul at

Kharbin (sometimes written Harbin), Mr. Fisher, who refused to

recognize some ordinances of the Russian administration, on

the ground that he was accredited to China, only, and could

know no other sovereignty in Manchuria than the Chinese. This

led to a new Russo-Chinese Agreement, signed at Peking on the

10th of May, 1909, distinctly authorizing the "organization of

municipalities on the lands" of the Chinese Eastern Railway.

The "sovereign rights of China" are "not to be prejudiced in

any way," says the new Agreement; but "municipal bodies are to

be established in the commercial centres of a certain

importance situated on the lands of the railway. The

inhabitants of these commercial centres, according to the

importance of the localities and the number of the residents,

shall elect delegates by vote, who shall choose an Executive

Committee; or else the residents themselves shall take part in

the business of the municipality and a representative shall be

elected from amongst them who will take upon himself to carry

out the resolutions decided upon by meeting of all the

residents.

"No difference shall be made on the lands of the railway

between the Chinese population and that of other

nationalities; all residents shall enjoy the same rights and

be subject to the same obligations.

"The right to vote shall belong to every member of the

community who owns real estate of a fixed value or who pays a

fixed annual rental and taxes."

Reading no farther in the Agreement than this, imperial Russia

and China would seem to have jointly planted a seed of

democratic municipalities in Manchuria; but that impression is

destroyed by qualifying provisions, such as this:

"The President of the Chiao-She-Chu [a Mixed Russo-Chinese

Court, formerly created] and the director of the railway,

occupying a position superior to the Presidents of the

assemblies of delegates and of committees, have a right of

control and personal revision, which they may exercise

whenever they think fit. … in the event of decisions by the

assembly of delegates not being approved by the President of

the Chiao-She-Chu or the director of the railway, these

decisions shall be returned to the assembly for further

consideration. If the original decision is adopted by a

majority of three-quarters of the members present, it becomes

binding."

The effect of the whole agreement would undoubtedly be to give

the Russian railway officials supreme authority in the

so-called municipalities. Remonstrances against it by the

Government of the United States have been supported by Great

Britain, Germany, and Austria. The question remains open and

troublesome. Dr. Morrison, of _The Times_, wrote of the

situation in November as follows:

"The situation in Manchuria is receiving close attention from

the Legations because of the increasing difficulty of the

problems created by Russian and Japanese claims to territorial

and administrative jurisdiction in connexion with their

respective railways, claims which conflict with China’s

unimpaired sovereignty and with the treaty rights of other

nations. A tentative proposal was recently submitted to the

consideration of the Diplomatic Body, with the approval of the

Wai-wu-pu and M. Korostovetz, to create an international

settlement at Kharbin on a separate site adjoining the railway

settlement. The proposal was unacceptable to the Powers

interested because it implied a fundamental discrimination in

favour of the railway company, leaving it to exercise, in an

important trade centre, powers which are incompatible with

treaties and which are not conferred by its charter. …

"The Chinese Government entirely fails to avail itself of its

opportunities at this juncture. The local authorities are

unable, and the Peking Government is unwilling, to take any

initiative. The Wai-wu-pu adheres to its policy of shifting

opportunism, as shown by its proposal to the Russian Minister

to cancel, in deference to the protests of the Powers, the

agreement with regard to the Kharbin municipal regulations

concluded on May 10, a proposal unaccompanied by any practical

alternative whereby political requirements might be reconciled

with the undeniable vested interests of the railway. In this

connexion it is interesting to note that, whereas England,

America, France, Germany, Italy, and Austria-Hungary refused

an unqualified assent to the Kharbin agreement, yet no

exception has been taken to the regulations of the Japanese

railway settlements, although, without any reference to China,

they confer the widest powers on the Japanese authorities,

including the right of arbitrary taxation and forcible

expulsion."

The Russian side of the question was presented in a

semi-official statement, made public in October, 1909, as

follows:

"The representatives of certain Powers which have trade

interests in China have, both in Peking and St. Petersburg,

expressed doubts as to the rights of authority exercised by

the Kharbin municipality. These representatives have

endeavoured, in notes presented to the Chinese and Russian

Governments on the matter, and in verbal communications, to

prove that certain paragraphs of the treaty which was signed

at Peking on May 10, 1909, violated the extra-territorial

rights granted to their nationals by treaty with China, and

further that some of the measures taken by the Kharbin

authorities were opposed to the regulations of the

international concession which, in their opinion, has been

recently established at Kharbin.

"It is easy to demonstrate that such a point of view is based

on a misunderstanding. Extra-territorial rights, so far as

they are secured by treaty, comprise exclusively the right of

every foreigner to be judged by his own Consul. They do not,

however, in any way exempt him from the obligation to pay town

and other taxes, or to submit to established regulations. The

difference between the pure Chinese open ports where there are

no foreign concessions and places which lie in the territorial

zone of the Chinese Eastern Railway, and are open to foreign

trade, consists solely in the fact that in the former the

Chinese authorities have the power to make administration

rules at their own discretion, while in places in the

territorial zone of the Eastern Railway the Chinese Government

has, by the concession agreement signed on August 28, 1896,

and the convention of May 10, 1909, transferred the rights of

administration to the Chinese Eastern Railway Company, as a

private concession, so that the company acts as the agent of

the Chinese Government in supervising the administration of

Kharbin and other places.

{102}

"Another misunderstanding has evidently given rise to the

statement that Kharbin has recently been converted into an

international concession. The contracting parties never had

any such intentions. By reason of legal acts, as well as of

traditions and conditions of a local character, under which

Kharbin originated, it is clear that this is a special kind of

concession, which is distinguished from other concessions by

its exceptionally liberal and exceedingly hospitable

regulations in regard to foreigners."

CHINA: A. D. 1909 (October).

Naval plans.

See (in this Volume)

WAR, THE PREPARATIONS FOR: NAVAL: CHINESE.

CHINA: A. D. 1909 (October).

Opening of the Peking-Kalgan Line of Railway.

A purely Chinese undertaking.

See (in this Volume)

RAILWAYS: CHINA.

CHINA: A. D. 1909 (October).

Death of Chang Chih-Tung.

Chang Chih-Tung, Grand Councillor of the Empire of China, died

on the 4th of October, 1909, and Tai Hung-tze, President of

the Board of Justice, was appointed his successor in office.

CHINA: A. D. 1909 (October-November).

Election and opening of Provincial Assemblies.

Beginnings of the institution of Constitutional and

Representative Government.

The following, from the Peking reports to _The Times_,

London, narrates the actual beginning of the series of

proceedings planned and promised for the gradual institution

of representative constitutional government. The first is of

the date of October 14, 1909:

"To-day marks an era in the establishment of constitutional

government in China. In obedience to the Imperial decrees of

October 19, 1907, and of July 22, 1908, ordering the

establishment, within one year of the latter date, in each of

the 22 provinces of China proper and in Manchuria and the New

Dominion of provincial deliberative assemblies, elections have

been in progress for some time past, and the assemblies meet

in accordance with the regulations for the first time to-day,

the first day of the ninth moon. …

"The elections have taken place according to the regulations,

and halls have been erected for the assemblies to sit wherever

a Viceroy or a Governor has his seat. The number of members

varies from 140 in Chih-li, 114 in Che-kiang, to 30 each in

Kirin, Lchlun-chiang, and Hsin-kiang. The incomplete returns

which have been published show nearly 1,000 voters for each

representative.

"For weeks past reports have been coming in from provincial

authorities asking for instructions and information concerning

this new departure. An edict issued last night renews the

Imperial admonitions to members of the assemblies as to their

deliberations, and to Viceroys and Governors as to their

supervision of the deliberations, and exhorts all to display a

loyal patriotism so that the country may attain strength and

prosperity. The event may be one of great historical

importance."

The next was sent from Peking on the 6th of the following

November:

"Already, in the opening debates of these Provincial

Assemblies, one apprehends the coming chaos, one hears the

first whispering of the approaching storm. Peking, panoplied

in ignorance and petrified in medieval statecraft, trifles

with Demos at its doors, evidently hoping that the Assemblies

will consume their own smoke, and that the Mandarin may be

preserved by the time-honoured device of holding the balance

between contending classes. But the spirits which the

Vermilion Pencil has called from the Celestial deep, though

elected with all possible precautions of ‘silkcoated’

franchise, and under the close direction of Viceroys and

Governors, show signs of scant respect for the Central

Government and of little sympathy for its difficulties.

Already, within a fortnight of their birth, many of the

Assemblies have passed resolutions denouncing several of the

Government’s pet proposals—e. g., the opium monopoly, the

stamp tax, and the foreign loan for the Hankau-Canton and

Hankau-Szechuan Railways. In the case of the stamp tax, 15

provinces have expressed the opinion, and have induced the

local officials in many cases to endorse it, that the proposed

levy is impracticable, so that, in the words of the native

Press, 'its imposition is deferred and the Ministry of Finance

is at its wits’ end.’ Concerning the vexed question of the

railway loan, the Hupei Assembly is reported to have endorsed,

without a dissentient, their chairman’s declaration that the

Government’s scheme should be resisted ‘to the death.’

"The spirit which animates these Assemblies is evidently very

similar to that which speaks through the vernacular Press;

iconoclastic, patriotic—in the sense that it denounces

everything foreign—but lacking, so far, in intelligent

leadership and constructive policy. Their attitude towards the

Central Government is generally one of scarcely veiled

contempt. I cannot illustrate better its general tendency than

in the words of a native journalist who, in a recent criticism

of the Grand Council, congratulated these rulers of China on

their remarkable longevity, but observed that ‘there is little

hope of longevity for an Empire that is governed by such

incompetent survivals.’"

A few weeks later, after the forty days’ session of the new

Provincial Assemblies had ended, this writer had changed his

view. Writing on the 22d of December, he said: "A study of the

reports of the proceedings so far available of the first

session of the Provincial Assemblies supports the contention

that the Throne has been justified in granting the subjects of

the Empire a limited right of speech through their chosen

representatives. The programmes of debate have been strictly

in accordance with the Imperial edict, and the proceedings

have been marked with dignity and decorum. The net result

justifies the declaration made by a high authority, who has

been given special opportunity of forming a judgment, that the

‘members have fulfilled their appointed task of working in

harmony with the executive authorities in the interests of

their respective provinces.’"

CHINA: A. D. 1909-1910.

Proposal of the United States for the neutralization of

Manchurian Railways.

Proposed Chinchow-Aigun Railway.

Late in December, 1909, the United States Government submitted

to that of China, and to the interested Powers, a proposition

which contemplated the neutralization of the railways in

Manchuria, now partly under Russian and partly under Japanese

control, and which looked, also, to an international

undertaking of the construction of a Chinchow-Aigun line, to

tap the Russian Trans-Siberian road at Tsitshar.

{103}

In a published statement subsequently, the American Secretary

of State, Mr. Knox, explained that his Government, during the

recent railway loan negotiations, had pointed out to the

interested Powers that the greatest danger to the policy of

the open door in China and the development of her foreign

trade arose from disagreements among the great Western

nations, and had expressed the opinion that nothing would

afford so impressive an object-lesson to China and the world

as the spectacle of the four great capitalist nations—Great

Britain, Germany, France, and the United States—standing

together for equality of commercial opportunity. The American

Government believed that one of the most effective steps to

this end in order to secure for China the enjoyment of all

political rights in Manchuria and to promote the normal

development of the Eastern provinces was to take the

Manchurian railroads out of Eastern politics and to place them

under an economic and impartial administration by vesting in

China herself the ownership of the railways. Such a policy

would require the cooperation, not only of China, but of

Russia and Japan, both of whom it would enable to shift their

onerous responsibilities in connexion with those railways on

to the shoulders of the combined Powers, including themselves,

and would effect a complete commercial neutralization of

Manchuria.

The proposal of a neutralization of the existing Manchurian

railways was not received with favor in either Japan or

Russia, and the other Powers concerned have manifested a

disposition to defer to the view taken by those two

Governments, which are most immediately touched by it. The

position of the Japanese Government on the question was stated

publicly in an address to the Diet on the 27th of January by

Baron Komura, Minister for Foreign Affairs, who said:

"The United States government recently proposed a plan

regarding the neutralization of Manchurian railways. The

Imperial government, in view of the important Japanese

interests involved, and considering that the proposal came

from a friendly Power with which the empire was on terms of

close intimacy, submitted the question to the most careful

examination. While determined to adhere scrupulously to the

policy of the open door and equal opportunity, it should be

recognized that the realization of the proposed plan would

involve radical changes in the condition of affairs in

Manchuria which were established by the treaties of Portsmouth

and Peking. The change must be attended by serious

consequences. In the region affected by the South Manchurian

Railway numerous undertakings have been promoted in the belief

that the railway would remain in our possession. As a

consequence, the Imperial government, with regret, was obliged

to announce its inability to consent to the proposal. I trust

that the United States will appreciate our position and that

the other Powers will equally recognize the justice of Japan’s

attitude."

The Russian Government is understood to have taken

substantially the same ground, on the general question of a

neutralization of Manchurian railways. There and elsewhere,

however, there is said to be a readiness to consider the

incidental proposition of an internationally financed

Chinchow-Aigun road.

----------CHINA: End--------

CHINA EMERGENCY APPEAL COMMITTEE.

See (in this Volume)

EDUCATION: CHINA: A. D. 1909.

CHINCHOW-AIGUN RAILWAY, Proposed.

See (in this Volume)

CHINA: A. D. 1909-1910.

CHINESE HIGHBINDER ASSOCIATIONS:

Their dangerous character.

See (in this Volume)

SAN FRANCISCO: A. D. 1902.

CHINESE IMMIGRATION:

The Resistance to it in America, Australia, and South Africa.

See (in this Volume)

RACE PROBLEMS.

CH’ING, Prince of.

See (in this Volume)

CHINA: A. D. 1901-1908.

CHOATE, Joseph H.:

Commissioner Plenipotentiary to the Second Peace Conference.

See (in this Volume)

WAR, THE REVOLT AGAINST: A. D. 1907.

CHRISTENSEN, Jens Christian.

See (in this Volume)

DENMARK: A. D. 1901, and 1905-1909.

CHRISTIAN IX., King of Denmark:

Death.

See (in this Volume)

DENMARK: A. D. 1906.

CHRISTIAN MISSIONS.

See (in this Volume)

MISSIONS, CHRISTIAN.

CHUN, Prince:

Regent of China.

See (in this Volume)

CHINA: A. D. 1908 (NOVEMBER).

CHURCH OF SCOTLAND:

Act of Parliament authorizing change of the Formula of

Subscription required from its ministers.

See (in this Volume and Volume 4.)

SCOTLAND: A. D. 1904-1905.

CHURCH, Roman Catholic.

See (in this Volume and Volume 4.)

PAPACY.

CHURCH AND STATE:

The French Separation Law and its execution.

See (in this Volume)

FRANCE: A. D. 1905-1906, 1906, and 1907;

also, PAPACY.

CHURCH AND STATE:

Russia: Emancipation of the Church urged by M. Witte.

See (in this Volume)

RUSSIA: A. D. 1905 (APRIL-AUGUST).

CHURCH SCHOOL CONTROVERSIES.

See (in this Volume)

FRANCE: A. D. 1903;

ENGLAND: A. D. 1902, and 1906;

CANADA: A. D. 1905.

CHURCHILL, Winston L.:

Under Secretary for the Colonies.

See (in this Volume)

ENGLAND: A. D. 1905-1906.

CHURCHILL, Winston L.:

President of the Board of Trade.

See ENGLAND: A. D. 1908 (April).

CHURCHILL, Winston L.:

To the British Suffragettes.

See (in this Volume)

ELECTIVE FRANCHISE: WOMAN SUFFRAGE.

CHURCHILL, Winston L.:

On the Budget of 1909 and the House of Lords.

See ENGLAND: A. D. 1909 (APRIL-DECEMBER).

CITIZENSHIP, American:

Principles of Naturalization defined.

The New Law.

See (in this Volume)

NATURALIZATION.

CITY GOVERNMENT.

See (in this Volume)

MUNICIPAL GOVERNMENT.

CITY PLANNING.

See (in this Volume)

SOCIAL BETTERMENT;

also, CHICAGO: A. D. 1909.

CIVIC FEDERATION, The National.

See (in this Volume)

SOCIAL BETTERMENT: UNITED STATES;

also, NATIONAL CIVIC FEDERATION.

{104}

CIVIL SERVICE REFORM: CANADA: A. D. 1908.

Introduction of Competitive Examinations and the Merit

System of appointment and promotion.

An "Act to Amend the Civil Service Act," which came into force

September 1, 1908, divides the Civil Service of the Dominion

into the Inside Service and the Outside Service, the former

embracing "that part of the public service in or under the

several departments of the Executive Government of Canada and

in the offices of the Auditor General, the Clerk of the Privy

Council, and the Governor-General’s Secretary, employed at the

City of Ottawa, or at the Experimental Farm Station or the

Dominion Astronomical Observatory near Ottawa." The employés

of this Inside Service are required to be classified according

to their salaries, in three divisions, and all appointments to

positions in it are (except as otherwise provided in the Act)

to "be by competitive examination, which shall be of such a

nature as will determine the qualifications of candidates for

the particular positions to which they are to be appointed,

and shall be held by the Commission from time to time in

accordance with the regulations made by it and approved by the

Governor in Council."

For the administration of the Act a Civil Service Commission

is created, consisting of two members appointed by the

Governor in Council, who are to have no other office or

employment, and who may employ necessary assistance for the

examinations they conduct. The following are provisions of the

Act:

"No person shall be admitted to such an examination unless he

is a natural-born or naturalized British subject, and has been

a resident of Canada for at least three years, and is, at the

time of the examination, of the full age of eighteen years and

not more than thirty-five years, and presents the required

certificates as to health, character and habits.

"Before holding any such examination the Commission shall

require each head of a department to furnish it with the

number of additional permanent officers or clerks likely to be

required in his department within the next six months.

"On this basis, and having regard also to the requirement of

the several departments for temporary services, a computation

shall be made by the Commission of the number of competitors

to be selected at the next ensuing examination.

"If there remain from a previous examination successful

competitors who have not received appointments, their number

shall be deducted in making the computation, and their names,

in the order of merit, shall be placed at [the top of the

list] to be prepared in accordance with section 17 of this

Act.

"Thereupon due notice of the examination shall be given by the

Commission, stating the character and number of the positions

to be competed for.

"Immediately after the examination the Commission shall make

out a list of the successful competitors thereat for each

position, in the order of merit, up to the number computed in

accordance with Section 15.

"From the said list the Commission, on the application of the

deputy head, with the approval of the head, of any department,

shall supply the required clerks, whether for permanent or

temporary duty. …

"The selections shall be, so far as practicable, in the order

of the names on the list, but the Commission may select any

person who in his examination shows special qualifications for

any particular subject. …

"The cause of the rejection shall be reported by the deputy

head to the Commission, who shall thereupon select another

person to take the place of the one rejected, and decide

whether the latter shall be struck off the list or allowed a

trial in another department.

"After a person so selected has served a probationary term of

six months, [he shall be deemed] to be permanently accepted

for the service. …

"The head of the department, on the report in writing of the

deputy head, may, at any time after two months from the date

of assignment, and before the expiration of six months, reject

any person assigned to his department. …

"Promotion, other than from the third to the second division,

shall be made for merit by the Governor in Council upon the

recommendation of the head of the department, based on the

report in writing of the deputy head and accompanied by a

certificate of qualification by the Commission to be given

with or without examination, as is determined by the

regulations of the Commission.

"Except as herein otherwise provided, vacancies in the first

division shall be filled by promotions from the second

division."

Regulations prepared by the Civil Service Commission appointed

under the Act require fees, ranging from $2 to $10 to be paid

by the candidates for examination.

CIVIL SERVICE REFORM: United States: A. D. 1901-1909.

Progress of reform under President Roosevelt.

At the close of the administration of President Roosevelt, the

journal published by the National Civil Service Reform League,

entitled _Good Government_, bore the following testimony

to the fidelity with which the principles of the reform had

been upheld and promoted by the retiring executive:

"One of the first acts of President Roosevelt was the

reorganization of the civil service commission, which, under

the administration of President McKinley, had become lax and

ineffective. Since then the enforcement of the law and rules

by the commission has been sincere, vigorous and impartial.

Particularly strict has been the enforcement of the

prohibition against political assessments. Twice in the midst

of political campaigns has the President ordered the removal

of prominent officials for levying assessments on their

subordinates.

"During his administration President Roosevelt has extended

the scope of competition to many new and important offices.

Notable among these extensions have been the restoration of

the field service of the War Department (withdrawn by

President McKinley) and the classification of the rural free

delivery service (now numbering some 40,000), the forestry

service, deputy collectors of internal revenue, deputy

collectors of customs, deputy naval officers, and cashiers and

finance clerks in post offices. Prevented by the civil service

law from ‘classifying’ unskilled laborers, President

Roosevelt, under general executive authority, has prescribed a

system of examination for laborers in Washington and the

principal cities. By executive order of June 27, 1906, he

provided a system of examination and promotion for the

consular service which has done away with the more flagrant

evils of that service. His latest and most striking extension

has been the classification of over 15,000 fourth-class

postmasters, thereby taking them out of politics.

{105}

"He has prohibited the participation of competitive officials

in politics further than to vote as they please and to express

privately their opinions, and has made this prohibition

effective by incorporating it in the civil service rules, thus

giving to the commission the power to investigate. He has by

vetoing the Crumpacker census bill defeated the attempt by

Congress to obtain as spoils some 4,000 clerkships for the

next census.

"This is a brief record of President Roosevelt’s service to

civil service reform during his administration. In considering

the criticisms of his course which have been made from time to

time by the League and the press, this service should be kept

in mind and carefully weighed. For instance, against this

record of constant advancement, the suspension of the rules in

individual cases—in all about 370—although in our opinion

arbitrary and dangerous as precedents, are of comparatively

minor importance. A few have been made for political reasons;

the far greater number, however, were acts of charity or

personal impulse, and President Roosevelt himself realized the

danger in this practice and took steps to curtail it.

"In passing on the justice of the other criticisms of

President Roosevelt’s course regarding the civil service one

should keep in mind the distinction which he has so sharply

drawn between the classified and the unclassified service.

This is clearly set forth in a reply to a letter from the

civil service commission calling his attention to the omission

from the postal regulations of President Cleveland’s

‘pernicious activity’ order, and quoting a passage from the

11th report of the commission. President Roosevelt said:

‘I personally drew the paragraph which you quote. The

paragraph was drawn with a view to making a sharp line between

the activity allowed to public servants within the classified

service and those without the classified service—the latter

under our system are as a rule chosen largely with reference

to political considerations, and as a rule are, and expect to

be, changed with the change of parties. … It seemed to me at

the time, and I still think, that the line thus drawn was wise

and proper.’

"In considering such appointments to positions in the

unclassified service as that of James C. Clarkson as surveyor

of the Port of New York for instance, a just analysis must

take into account these frankly expressed views. President

Roosevelt drew a line between the classified and unclassified

service, and as to the latter recognized and availed himself

to some extent of existing conditions. He believed that so

long as positions remained in the unclassified service it was

impractical to eliminate political considerations and that any

attempt to do so led to hypocrisy. His remedy was to place the

positions in the classified service, wherever practicable. And

he has extended the line of the classified service higher than

ever before. The League does not believe this theory is ideal,

but in carrying it out the President has certainly not set the

reform back. Criticism based only on the fact that one who has

rendered great service to a cause has not accomplished all

that its ardent supporters wish to accomplish can be properly

set down as captious.

"In performing its duty to the public, the League has at

various times during his administration frankly criticised

certain acts of President Roosevelt, which in its opinion were

not in line with the best interests of the service. But this

does not prevent us from recognizing that during his entire

administration President Roosevelt has been loyal to the

reform with which he has been so prominently identified. We do

not believe that any act of his was intended to injure the

reform. Wherever he has thought it practicable to extend the

reform he has done so. A President less devoted to the reform

would not have been criticised for what President Roosevelt

has failed to do."

_Good Government,

March, 1909._

The following exhibit of the whole progress in civil service

reform, from its beginning to the end of 1908, was made in the

annual report of the Council of the National Civil Service

Reform League, presented at the meeting of the League, on the

17th of December in that year:

"The whole United States civil service, in 1883, consisted of

110,000 persons, and of these 14,000 were put under the civil

service law. Now the federal civil service has grown to

352,000 positions, and, including the last extension, those

under the competitive system have increased from 14,000 to

about 222,000. Not only in numbers but in proportion to the

total has the competitive service increased from 12.7% in 1883

to 63% now."

CIVIL SERVICE REFORM: A. D. 1902-1903.

Extension of classification to the Rural Free Delivery Service.

Order concerning unclassified laborers.

"During the year ended June 30 [1903], 25,566 persons were

appointed through competitive examinations under the

civil-service rules. This was 12,672 more than during the

preceding year, and 40 per cent of those who passed the

examinations. This abnormal growth was largely occasioned by

the extension of classification to the rural free-delivery

service and the appointment last year of over 9,000 rural

carriers. A revision of the civil-service rules took effect on

April 15 last, which has greatly improved their operation. …

Executive orders of July 3, 1902; March 26, 1903, and July 8,

1903, require that appointments of all unclassified laborers,

both in the Departments at Washington and in the field

service, shall be made with the assistance of the United

States Civil Service Commission, under a system of

registration to test the relative fitness of applicants for

appointment or employment. This system is competitive, and is

open to all citizens of the United States qualified in respect

to age, physical ability, moral character, industry, and

adaptability for manual labor: except that in case of veterans

of the civil war the element of age is omitted. This system of

appointment is distinct from the classified service and does

not classify positions of mere laborer under the civil-service

act and rules. Regulations in aid thereof have been put in

operation in several of the Departments and are being

gradually extended in other parts of the service. The results

have been very satisfactory, as extravagance has been checked

by decreasing the number of unnecessary positions and by

increasing the efficiency of the employees remaining."

_President’s Message,

December 7, 1903._

{106}

CIVIL SERVICE REFORM: A. D. 1906.

Excellent legislation in Pennsylvania.

See (in this Volume)

PENNSYLVANIA.

CIVIL SERVICE REFORM: A. D. 1906-1909.

The Reform of the Consular Service.

A great and greatly needed reformation of the consular service

of the United States was begun in 1906, by the passage of an

Act of Congress, approved April 5, which provided for the

reorganization of the service, primarily by the classifying

and grading of the consuls-general and the consuls, and the

fixing of salaries in each class. Consuls-general were placed

by the Act in seven classes, with salaries as follows:

Class one, twelve thousand dollars.

London, Paris.

Class two, eight thousand dollars.

Berlin, Habana, Hongkong, Hamburg, Rio de Janeiro, Shanghai.

Class three, six thousand dollars.

Calcutta, Cape Town, Constantinople, Mexico City,

Montreal, Ottawa, Vienna, Yokohama.

Class four, five thousand five hundred dollars.

Antwerp, Barcelona, Brussels, Canton, Frankfort, Marseilles,

Melbourne, Panama, Saint Petersburg, Seoul, Tientsin.

Class five, four thousand five hundred dollars.

Auckland, Beirut, Buenos Ayres, Callao, Chefoo, Coburg,

Dresden, Guayaquil, Halifax, Hankau, Mukden, Munich,

Niuchwang, Rome, Rotterdam, Saint Gall, Singapore.

Class six, three thousand five hundred dollars.

Adis Ababa, Bogota, Budapest, Guatemala, Lisbon, Monterey,

San Salvador, Stockholm, Tangier.

Class seven, three thousand dollars.

Athens, Christiania, Copenhagen.

Consuls were divided among nine classes, receiving salaries

that range from $8000 in the first class and $6000 in the

second, down to $2000 in the ninth. The first and second

classes hold but one incumbent each, at Liverpool and

Manchester, respectively. There are eight places in the third

class, twelve in the fourth, and then the numbers mount

rapidly, up to the sixty-nine included in the ninth class.

All fees allowed to be collected for services rendered in

connection with the duties of the consular office (which the

President may prescribe) are directed by the Act to be

accounted for thereafter and paid into the Treasury of the

United States. All consular officers whose salaries exceed

$1000 are forbidden to be interested in or to transact any

business as a merchant, factor, broker, or other trader, or a

clerk or other agent of one, or to practice as a lawyer for

compensation, or to be interested in the fees or compensation

of any lawyer. The whole service is placed under inspection by

five inspectors, to be appointed from the members of the

consular service; and each consular office must be inspected

at least once in every two years.

In June following this important enactment, the Secretary of

State, Mr. Root, submitted to President Roosevelt the draft of

a recommended executive order, which prescribed new rules to

be followed in filling the consular offices, as classified by

the recent Act. In doing so, the Secretary made this

explanation: "The main features of the order were embodied in

the early forms of the Consular Reorganization Bill passed at

this session of Congress, but they were dropped out, largely

for the reason that their enactment by Congress would appear

to be an infringement upon the President’s constitutional

power to appoint consuls. Your adoption of these rules by

executive order will be free from that objection, and judging

from the very positive commendation which many members of both

Houses have expressed for the proposed change in the method of

appointing consuls, I do not doubt that the new system will

receive the hearty approval of the Senate and of Congress

whenever occasion may arise for an expression upon the

subject."

The recommended order was approved and issued by the

President. "Subject to the advice and consent of the Senate,"

it declared in substance as follows:

(1) Vacancies in the office of Consul-General and in the

office of Consul above class 8 (salary, $2500) shall be filled

by promotion from the lower grades of the service, based upon

"ability and efficiency, as shown in the service";

(2) vacancies in the office of Consul of these two remaining

classes, 8 and 9, are to be filled

(a) by promotion, "on the basis of ability and efficiency, as

shown in the service," of consular clerks, vice-consuls, and

consular agents, and

(b) by new appointments from candidates who have passed an

examination;

(3) officials in the service of the Department of State, with

salaries of $2000 or upward, shall be eligible for promotion,

always on the basis of ability and efficiency, as shown in the

service, to any grade of the consular service above the eighth

class;

(4) the board of examiners for admission to the service shall

consist of the Secretary of State (or such other officer of

the department as the President shall designate), the chief of

the Consular Bureau, and the chief examiner of the Civil

Service Commission (or such other officer, as this commission

shall designate);

(5) this board of examiners shall formulate the rules for

examinations;

(6) among the compulsory subjects shall be at least one modern

language other than English, the natural industrial and

commercial resources and commerce of the United States,

political economy, and the elements of international,

commercial, and maritime law;

(7) 80 per cent. shall be necessary for eligibility;

(8) candidates must be over twenty-one and under fifty years

of age, citizens of the United States, and of good character

and physique. They must also have been specially designated by

the President for examination.

Other significant provisions of the order are to the effect

that no promotion shall be made except for efficiency and

conduct, that "neither in the designation for examination or

certification or appointment will the political affiliations

of the candidate be considered"; and that "due regard should

be had to the rule that, as between candidates of equal merit,

appointments should be made so as to secure in the service

proportional representation of all the States and

Territories."

The first examination of candidates for appointment under this

order was held on the 14th and 15th of March, 1907, since

which time no one has entered the consular service of the

United States without satisfying that test.

In June, 1908, Secretary Root announced the promotion or

transfer of nearly sixty consular offices, setting in motion

the desirable advancement of these officials from post to

post, to make the best use of their proved capacity and

acquired experience. About a year later, Mr. Root’s successor,

Secretary Knox, made public the promotion of twenty-seven

incumbents of consular office, and the appointment of

twenty-three new recruits to the service from his eligible

list. So the long striven-for reform of the American consular

service may safely be said to have arrived.

{107}

A bill introduced in the Senate, providing for a permanent

consular service, based on competitive examinations, was

decided by the Committee on Foreign Relations to be

unconstitutional, for the reason that the Constitution itself

confers the power of appointment of consular officers upon the

President, and that Congress has no right to limit this power

in any way. President Taft, by an executive order, has

practically put the scope of the proposed bill into effect,

thereby, in part, limiting the power conferred upon himself.

This, in the opinion of the Senators, is all that can be done

legally.

CIVIL SERVICE REFORM: A. D. 1908.

Extension of the Merit System to nearly one-third of the

Fourth Class Postmasters of the country.

In the Annual Report of the Council of the National Civil

Service Reform League, presented at the annual meeting of the

League in December, 1908, it was said:

"The great event of the year, which so aptly commemorates the

25th anniversary of the passage of the Pendleton bill, is the

extension of the competitive system to all fourth class

postmasters in the part of the country north of the Ohio and

east of the Mississippi, that is, in the New England States,

New York, New Jersey, Pennsylvania, Ohio, Indiana, Illinois,

Wisconsin, and Michigan. This is an extension covering more

positions than suggested by the civil service commission. It

is an extension large enough to be of present advantage, is

made in the more thickly settled portions of the country,

where it is easiest to carry it out, and yet it is not on so

large a scale as to invite mistakes or perhaps partial

failure. This extension covers about 15,000 positions. The

order of President Cleveland of May 26, 1896, covered about

31,000 places; and yet, from the point of political

significance, this present extension is the most important, we

believe, in the history of civil service reform since January

16, 1883, and when its purpose is fully carried out it will

include some 53,000 places."

_See, in Volume VI. of this work,

Civil Service Reform: United States._

The report then reviewed the efforts that had been in progress

since 1889, with the support of Presidents Cleveland and

Roosevelt, to bring about the inclusion of this class of

postmasters, at the least, under the rule of appointment

subject to competitive examination. President Roosevelt, in

his annual Message of 1907, had said:

"The fourth-class postmasters’ convention has passed a very

strong resolution in favor of placing the fourth-class

postmasters under the civil-service law. The Administration

has already put into effect the policy of refusing to remove

any fourth-class postmasters save for reasons connected with

the good of the service; and it is endeavoring so far as

possible to remove them from the domain of partisan politics.

It would be a most desirable thing to put the fourth-class

postmasters in the classified service. It is possible that

this might be done without Congressional action, but, as the

matter is debatable, I earnestly recommend that the Congress

enact a law providing that they be included under the

civil-service law and put in the classified service."

Congress refused the desired legislation. The law committee of

the League was unanimous in the opinion that the President

held authority already to make the change by Executive Order,

and Mr. Roosevelt gave a hearing on the subject to Messrs.

McIlhenny and Greene, of the National Civil Service

Commission, and the Honorable Richard Henry Dana, Chairman of

the Council of the League. Evidently he became persuaded that

his authority was sufficient, and was prepared to act

accordingly. About the middle of November, 1908, the National

League of Postmasters of the United States, which had been

organized in 1905, sent a Committee, with its President, Mr.

A. K. Hoag, of Orchard Park, New York, to present to the

authorities at Washington their claim to a footing of

non-political appointment under civil service rules. By good

fortune they met at Washington Mr. Dana and Mr. Goodrich, of

the National C. S. R. League, who were visiting the Capital on

the same errand, and the doubled appeal had quick success. In

an interview with President Roosevelt, the Committee of the

Postmasters’ League received assurances that he would issue an

order on the subject, provided that the President-elect, Mr.

Taft, would approve his taking that step. The Committee went

at once to the Hot Springs in Virginia, where the

President-elect was then sojourning, received his ready

endorsement of the plan, and conveyed it to the President in

power. A fortnight later, on the 1st day of December, the

memorable order was proclaimed. On the 1st of the following

February a plan of filling vacancies was put into effect.

It was wise, no doubt, to apply the extension of the reform in

post-office appointments to one large and important section of

the country, and obtain a showing of practical results, before

attempting to overturn the old system as a whole. That more

will follow in due time is reasonably sure. Mr. Hoag, the

President of the National League of Postmasters, in a private

note, remarks:

"It is already evident that the change is to redound to a

better service. Scores of new buildings, new quarters and new

equipments are being installed by the emancipated postmasters;

which shows that postmasters of this class dare, for the first

time, to invest their money in better equipment, feeling that

they are likely to remain postmasters long enough to make the

investment a paying one, now that their tenure of office does

not depend upon their relations to a political faction or

boss."

CIVIL SERVICE REFORM: A. D. 1909.

The Census Bill.

Inveteracy of Spoils-seeking in Congress.

Veto of the bill in its first form by the President.

The Amended Bill which became law.

The greatness of the advance of civil service reform in the

United States, within the quarter century since its beginning,

is one of the most hopefully inspiring facts in recent

American history. But, by the side of it stands the warning

and shaming fact, that it has been achieved, from first to

last, by forces outside of Congress, and outside of all other

legislative bodies which supposedly represent the political

will of the people. Every measure of legislation that has

promoted it has been wrung from unwilling majorities in those

bodies,—yielded only when they feared to refuse. That

Congress, in both Houses, would wreck with eagerness, to-day,

if it dared, the bettered public service of the nation, to

recover for its members and their party henchmen the old

"spoils" of office and place, was shown unmistakably, within

the last year of this record, by its action on the bill to

provide for the taking of the Census of 1910.

{108}

The President, and every responsible official connected with

the Census Bureau, had borne testimony to the inefficiency and

wasteful costliness of previous census-taking under the old

system of appointment, and had besought Congress to provide in

the bill for an effective test of qualification for the

employment by competitive examination. Considerable majorities

in both House and Senate turned an equally deaf ear to all

considerations of public interest in the matter, and passed a

bill which enabled Senators and Representatives to parcel out

between themselves the large number of appointments to be

made.

President Roosevelt did not hesitate to veto the bill, and

gave it a thorough dissection in the Message which explained

his disapproval. In part, his comments on the Act offered to

him were as follows:

"Section 7 of the act provides in effect that appointments to

the census shall be under the spoils system, for this is the

real meaning of the provision that they shall be subject only

to non-competitive examination. The proviso is added that they

shall be selected without regard to political party

affiliations. But there is only one way to guarantee that they

shall be selected without regard to politics and on merit, and

that is by choosing them after competitive examination from

the lists of eligibles provided by the Civil Service

Commission. The present Director of the Census in his last

report states the exact fact about these non-competitive

examinations when he says:

‘A non-competitive examination means that every one of the

many thousands who will pass the examinations will have an

equal right to appointment, and that personal and political

pressure must in the end, as always before, become the

determining factor with regard to the great body of these

temporary employments. I cannot too earnestly urge that the

Director of the Census be relieved from this unfortunate

situation.’

"To provide that the clerks and other employés shall be

appointed after non-competitive examination, and yet to

provide that they shall be selected without regard to

political party affiliations, means merely that the

appointments shall be treated as the perquisites of the

politicians of both parties, instead of as the perquisites of

the politicians of one party. I do not believe in the doctrine

that to the victor belongs the spoils; but I think even less

of the doctrine that the spoils shall be divided without a

fight by the professional politicians on both sides; and this

would be the result of permitting the bill in its present

shape to become a law. Both of the last censuses, the eleventh

and the twelfth, were taken under a provision of law excluding

competition; that is, necessitating the appointments being

made under the spoils system. Every man competent to speak

with authority because of his knowledge of and familiarity

with the work of those censuses has stated that the result was

to produce extravagance and demoralization."

The veto went to Congress on the 5th of February, 1909, one

month before the expiration of President Roosevelt’s term of

office. His successor-to-be was well known to be in sympathy

with his views of the public service, and no attempt was made

either to pass the bill over the veto, or to proffer its

spoils-seeking provisions to the new occupant of the

Presidency when he came in. Congress was compelled, in this

case, as in many before, to surrender its cherished spoils of

salaried public employment to civil service reform, simply

because public interests and public sentiment are better

represented, as a rule, in the White House than in the

Capitol, which is not a pleasing fact.

During the extra session that was called by President Taft, in

March, an amended bill was passed which came near to

satisfying the demands of reform. It kept a little opening for

political favoritism, in a proviso, that the director of the

Census may, "when the exigencies of the service require," make

his selections from the list of eligibles, not by the

candidates’ rating, but on the ground of "immediate

availability" or previous experience in census work; but this

was so small a loophole that the President’s signing of the

bill was generally approved. "The act empowers the director of

the census to appoint special agents to whom will be assigned

principally the work of obtaining statistics from

manufacturing establishments, mines and quarries. While no

qualifying test is required by law for the appointment of

these agents, Director Durand has nevertheless provided for

their selection subject to a carefully worked out scheme of

_competitive_ examinations, to be conducted by the United

States civil service commission. In rating the candidates the

experience declaration and practical test are to be given

equal credit. All candidates who receive a combined rating of

70 will be placed on an eligible list, from which selection

will be made as the needs of the service require. Eligibility,

according to the instructions, ‘is not of itself a guarantee

of appointment, but selection will be made solely with

reference to equipment and availability for appointment.’"

_Good Government,

October, 1909._

CIVIL VETO, in Papal Elections.

See (in this Volume)

PAPACY: A. D. 1904.

CIVILISTAS, The.

See (in this Volume).

PERU.

CLANRICARDE ESTATE, Evicted tenants of the.

See (in this Volume)

IRELAND: A. D. 1907.

CLARION FELLOWSHIP.

See (in this Volume)

SOCIALISM: ENGLAND: A. D. 1909.

CLARK, Edgar E.:

On the Anthracite Coal Strike Arbitration Commission.

See (in this Volume)

LABOR ORGANIZATION: UNITED STATES: A. D. 1902-1903.

CLEMENCEAU, Eugene:

In the Sarrien-Clemenceau Ministry, and as Prime Minister.

See (in this Volume)

FRANCE: A. D. 1906, and after.

CLEMENCEAU, Eugene:

Disclaims for France the desire to revenge the German

conquest of Alsace.

See (in this Volume)

WAR, THE REVOLT AGAINST: A. D. 1907-1908.

CLEMENCEAU, Eugene:

Triumph in the senatorial elections of 1909.

See FRANCE: A. D. 1909 (JANUARY).

CLEMENCEAU, Eugene:

His downfall from Premiership produced by an

intemperate speech.

See (in this Volume)

FRANCE. A. D. 1909 (JULY).

CLERICAL PARTY.

See (in this Volume)

FRANCE: A. D. 1903;

BELGIUM: A. D. 1904;

GERMANY: A. D. 1906-1907.

CLEVELAND, Grover:

Trustee of stock controlling the

Equitable Life Assurance Society.

See (in this Volume)

INSURANCE, LIFE.

{109}

CLEVELAND, Ohio: A. D. 1901-1908.

The Farm Colony Experiment.

See (in this Volume)

CRIME AND CRIMINOLOGY, PROBLEMS OF.

COAL, Wasteful mining and use of.

See (in this Volume)

Conservation of Natural Resources.

COAL AND COKE CARTELS.

See (in this Volume)

COMBINATIONS, INDUSTRIAL (IN GERMANY).

COAL COMBINATION, Alleged Anthracite:

Proceedings of Government against it.

See (in this Volume)

COMBINATIONS, INDUSTRIAL: UNITED STATES: A. D. 1907-1909,

AND RAILWAYS: UNITED STATES: A. D. 1906-1909.

COAL MINES EIGHT HOURS ACT.

See (in this Volume)

LABOR PROTECTION: HOURS OF LABOR: ENGLAND.

COAL MINING STRIKES.

See (in this Volume)

LABOR ORGANIZATION.

COBALT SILVER MINES.

See (in this Volume)

CANADA: A. D. 1903, and 1906-1907.

COLLECTIVISM.

See (in this Volume)

SOCIALISM.

COLLEGES.

See (in this Volume)

EDUCATION.

COLOGNE:

Insurance against unemployment.

See (in this Volume)

POVERTY, PROBLEMS OF: UNEMPLOYMENT.

COLOMBIA: A. D. 1898-1902.

Castro, of Venezuela, and the Liberals (Yellows) of Colombia.

How they helped one another.

The following passages are from an article in the _American

Review of Reviews_ on "South American War Issues," by Edwin

Emerson, Jr., who spent some time with the Colombian

insurgents in 1902 and acquired a good knowledge of the

troubled political conditions in that republic and its near

neighbors. It adds something to what is told in Volume VI. of

this work concerning the revolt started in 1899 by Rafael

Uribe-Uribe, and about its relation to the beginnings of the

career of Cipriano Castro, in Venezuela

See, in Volume VI,

COLOMBIA, and VENEZUELA).

"At the time when Spain was losing Cuba, the last Congress of

Colombia sat in Bogota. The Liberal party had but one

spokesman in the Congress—to wit, Rafael Uribe-Uribe. The

government majority championed the cause of Spain. Many of the

more ardent Liberals were fighting in the field for ‘Cuba

Libre.’ Uribe-Uribe was the only man in the Congress who spoke

for America as against Spain. He was hissed down. Next, the

Panama Canal question came up. The French concession was to be

extended for ten years. Again Uribe-Uribe spoke for America as

against France. The project was voted down. The Congress was

dissolved. President San Clemente, on his own motion, extended

the French concession. For this he is said to have received one

million dollars, cash. Then the revolution broke out, and

Uribe-Uribe took the field, in Santander, the richest

coffee-growing state of Colombia. He fell upon the town of

Cúcuta and took it, only to be driven out again after a

disastrous rout at Palo Negro. To make things worse for the

rebels, the Bishop of Santander ordered the excommunication of

those who would not renounce liberalism or all connection with

Liberals. It was a crushing blow, aimed at the wives and

daughters of the fighting insurgents.

"While affairs were thus disturbed in Santander, Cipriano

Castro, a Venezuelan exile living in Cúcuta, profited by the

occasion to lead a small band of Colombian Liberals into

Venezuela. They dashed across the border by night, and fell

into Castro’s native town, Capachio Viejo. Castro’s father and

five brothers, with other townsfolk, joined his standard and

helped him win his first battle over a small detachment of

Venezuelan government troops. Now the number of his adherents

grew, especially as he won battle after battle or bought over

his rival leaders. After a crushing defeat at Valencia,

President Andrade fled the country, and Castro entered Caracas

in triumph. His early Colombian adherents got Venezuelan

government jobs.

"All went well for a while, especially after the prompt

suppression of a counter-revolution, until Castro’s sympathies

with the Colombian Liberals in the field began to tell on his

foreign policy. Uribe-Uribe had been badly beaten in Colombia.

He was made welcome by Castro in Venezuela, and was intrusted

with the command of a division on the Colombian frontier. The

command was recruited from Colombians across the border. At

the same time, Castro arbitrarily stopped all navigation on

the Zulia and Catacumbo rivers, running from Colombian

Cordillera to the Lake of Maracaibo, in Venezuela. This was a

death-blow to the coffee industry of the Colombian state of

Santander, which has no other outlet to the sea. Cúcuta was

ruined. A German house failed for half a million dollars, an

American hacienda lost $200,000, and other foreign merchants

suffered in proportion. All commerce in Cúcuta and Maracaibo

coffee almost came to a standstill. Then it was that the

government forces in Santander, to bring relief to the

stricken district, tried to open the closed rivers by a sudden

armed invasion into that region. For the sake of appearances,

they were led by Ranjel Garbiras, a Venezuelan revolutionist.

They made for the prosperous town of San Cristobal, but

Uribe-Uribe had managed to gather his corps of insurgents, and

beat off the attack in a three days’ battle. Some two thousand

men fell on both sides. Uribe-Uribe promptly prepared a

counter invasion. He was aided in this by Castro, who

practically put all Venezuelan forces in the Cordillera at his

disposal.

"President Castro, who was furious at so overt an act of war

on the part of his old enemies, the Colombian Clericals,

furthermore sent another expedition across the Goajira desert

to aid his Colombian insurgent friends in that peninsula to

take the Colombian port of Rio Hacha. Venezuelan gunboats

appeared before Rio Hacha to do their part in the capture.

Unfortunately for the Liberal cause, the Venezuelan army in

the Goajira was taken unawares while on the march, and was all

but annihilated. The gunboats chose to retire without firing a

shot. Castro never recovered from this reverse. The expenses

of his various armed expeditions ate up all his ready

finances. When he could no longer maintain Uribe-Uribe’s

troops, Uribe cut loose and recrossed the border, to join

forces with other insurgent leaders in the interior of

Colombia. Uribe’s cousin proceeded to Panama, and the civil

war there broke out with fresh vigor. By their recent

brilliant stroke in the harbor of Panama, the Colombian

Liberals have won the command of the sea on the Pacific side.

To assist them in doing the same on the Atlantic side, Castro

has now supplied them with a torpedo-boat and a small

gunboat."

{110}

These last mentioned successes of Uribe-Uribe had no permanent

effectiveness, for his surrender, with 1300 men and 10 pieces

of artillery, was announced presently as having occurred on

the 25th of October, 1902. It seemed unfortunate that he did

not succeed in overthrowing the Conservatives, or "Blues," who

held the government, since most accounts of their rule

represented it as hopelessly bad; but a change for the better

came without revolution after no long time.

The state of civil war was closed by a treaty of peace, signed

on board the United States battleship Wisconsin, November 21.

COLUMBIA: A. D. 1901-1906.

Participation in Second and Third International Conferences

of American Republics, at Rio de Janeiro.

See (in this Volume)

AMERICAN REPUBLICS.

COLUMBIA: A. D. 1903.

Rejection of Treaty with the United States for the

building of the Panama Canal.

Revolt and independence of Panama.

See (in this Volume )

PANAMA CANAL.

COLUMBIA: A. D. 1903-1906.

Feeling toward the United States.

Of the feeling in Colombia toward the United States,

consequent on what occurred in Panama, Mr. Barrett, American

Minister at Bogota, reported in 1906 as follows:

"The question is continually asked me: What is the attitude of

the Colombian Government and people toward Americans and

American interests on account of the Panama affair? Without

entering upon any political discussion, I wish, in answering

this pertinent inquiry, to take advantage of the opportunity

to pay a just and frank tribute to Colombia. Speaking in the

first place for myself as minister, I can truthfully say that,

ever since my arrival here seven months ago, I have been

treated with a generous kindness and sincere hospitality that

have made a deep impression on me and increased my respect for

Colombians in particular and Latin Americans in general. The

United States minister has been extended invitations official

and personal, and the United States legation in turn has been

continually frequented by leading men of all parties, as if

nothing had ever happened to mar the _entente cordiale_

of the two countries.

"In the granting of concessions and in the hearing of claims

the Government has treated Americans with as much

consideration as Europeans. During my stay here, and up to

this writing, there has not been one complaint lodged by

Americans in this legation of unkind treatment by Colombians

due to any political anti-American feeling. In my own travels

in various parts of the country, officials and peons alike

have everywhere accorded me polite and even gracious

attention. To let it be known that I was United States

minister has always led to extra courtesies rather than to any

lack of them.

"I could not, however, have it understood abroad that there is

not still strong feeling against the United States. It does

exist, but the passing of years, and generous, fair treatment

of Colombia and Colombians by the United States and its

citizens, in international relations and friendly social and

commercial intercourse, can effect its gradual disappearance.

Such feeling does not take the attitude of personal enmity

toward Americans. The Colombians, high and low, are too polite

and sensible for that. It is a feeling in the minds and

hearts, based on high political and patriotic grounds, which,

however, with commendable philosophy, recognizes the

inevitable and now turns to the future to bring blessings that

will counterbalance the losses and sorrows of the past. The

very courage and nobility of this attitude of Colombia is one

of the chief reasons why I predict for her a magnificent

future. Already this policy—if I may call it a policy—is

bearing fruit in the development of a greater and more

friendly and sympathetic interest throughout the United States

in Colombia, which is destined to lead to a mutually favorable

understanding and settlement of all differences in the near

future."

COLUMBIA: A. D. 1904.

Arbitration of boundary dispute with Equador.

A treaty for the arbitration of boundary questions with

Equador was concluded November 4, 1904 .

COLUMBIA: A. D. 1905.

Arbitration Treaties with Peru.

See (in this Volume)

PERU: A. D. 1905.

COLUMBIA: A. D. 1905-1906.

A New Era, under President Reyes.

"The New Era in Colombia" is the title of an article in the

_American Review of Reviews_, May, 1906, by Francis P.

Savinien, writing from the country in question.

"By judicious, if not generous, action," says the writer,

"President Rafael Reyes [who became President in the previous

year] has succeeded in harmonizing nearly all elements of the

population. His administration is neither Liberal nor

Conservative. It is Nationalist. Placed in power by

Conservatives and sustained by Liberals, his favors to the

former preserve order in the center of the country, and his

implicit trust in the latter insures peace on the frontiers.

He has made General Uribe-Uribe minister to Chile, Argentina,

and Brazil, and General Herrera commander along the Venezuelan

border, thus bestowing the highest diplomatic and military

honors on Liberals. From Conservatives he chose all his

ministers (except Dr. Modesto Garees, of the Department of

Public Works), the governor of the capital district, and other

high officials for the center of government. His government is

like that of Panama, the secession of which made a policy of

reconciliation predominant in both countries. … The Colombian

army has become a body of laborers. Troops are converted into

sappers and employed in building or improving ways of

communication. Idleness, as well as agitation, is beginning to

receive general condemnation. It is true that there is little

liberty. There is, however, less persecution than formerly.

Journals are abject and individuals mute. There is no free

speech or press. But there are few persons in prison or exile

for political reasons. The policy of the government has become

that of abstention rather than restraint."

General Reyes had represented Colombia at the Pan-American

Conference in the City of Mexico, in 1902, and had made a most

favorable impression on the delegates from the United States.

Referring to the occasion long afterwards, Mr. Sylvester

Baxter said of him: "It is notable that in that Conference

Colombia was represented by General Rafael Reyes, a high type

of man—gentleman by birth and education, of scientific

attainments, a natural leader, one of the strong characters of

Spanish America; a man whose existence makes things seem

hopeful when else they might look hopeless; a

soldier-statesman in whom many see the potentialities of a

second Diaz."

{111}

A similar expression of admiration appears in an interesting

special report, entitled "Colombia, a Land of Great

Possibilities," made in June, 1906, by the Honorable John

Barrett, then American Minister to Colombia, more recently the

Director of the International Bureau of American Republics.

"Great credit," wrote Mr. Barrett, "is due to General Rafael

Reyes, President of this Republic, for his untiring efforts to

restore the prosperity of his country to the position it

occupied before the last civil war and the loss of Panama. If

he succeeds, he will deserve a place in history like that of

President Diaz in Mexico. He has so far effectually stopped

revolutions, and, if his life and health are spared, Colombia

would seem to be assured of peace at least during his

administration."

COLUMBIA: A. D. 1905-1909.

Troubles with Venezuela over the navigation of rivers flowing

through both countries.

The arbitrary action begun by the ill-tempered and arrogant

Castro, of Venezuela, in 1902, when he stopped navigation on

the rivers which flow from Colombia to Lake Maracaibo, in

Venezuela, and thus open communication to the sea (see above),

was continued or resumed in subsequent years, and was a

distressing trouble to his Colombian neighbors.

In July, 1905, the Colombian Government appealed to that of

the United States for its good offices in maintaining the

principle of free navigation on rivers that are common to

neighboring countries. "From the time of the award which

decided the boundary dispute between the two countries," said

the Colombian Minister to the United States, in a

communication to the American Secretary of State, "the policy

of Venezuela in matters relating to the transit trade of

Colombia and the navigation of the common rivers, has been

marked by a conspicuous spirit of hostility. … Neither logical

arguments nor historic precedents, such as those submitted by

the Colombian chancellery to the Government of Venezuela for

the recognition by the latter of the principle of free trade

over the natural waterways placed by God at the disposal of

all nations, have availed."

The writer then reviewed at considerable length the arguments

with which the Government of the United States had contended

in the past with Spain and Great Britain for the free

navigation of the Mississippi and the St. Lawrence, and said

in conclusion: "It would be desirable, and I would ask that it

be done if this note were favorably received by the Government

of the United States, that the American minister at Caracas be

appropriately instructed in the sense of declaring on behalf

of the commercial interests of the citizens of the United

States his desire that the Government of Venezuela make the

navigation of the Zulia and Orinoco rivers free, and urging,

by persuasion, that the principle be solemnly consecrated in

its public treaties. My Government will join in such an

action, which comes within its traditional policy in the

matter, and will interpose no obstacle or delay to the meeting

of an international mixed commission for the framing of

regulations concerning the use of the above-named rivers

without detriment to the legitimate interests of the countries

through which they flow."

To this request the then Acting Secretary of State, Mr. Adee,

made a favorable reply, August 5, saying:

"The principle of the free navigation of rivers has been

advocated by the United States and maintained in its relations

with its neighbors for many years. This government is ready,

therefore, to use its good offices in the sense requested, and

Mr. Russell has been instructed upon arriving at his new post

in Venezuela to take advantage of fitting occasion to express

to the minister for foreign affairs the great satisfaction

with which the United States would view the adoption and

proclamation by Venezuela of the general principle of the free

navigation of rivers and fluvial arteries of communication

common to neighboring countries.

"It is of course to be understood that in touching upon this

matter this government does not seek to intervene or mediate

in any way in the relations between Colombia and Venezuela,

but is merely interested in the universal recognition of a

policy beneficial to the commerce of the world."

In the following December, the endeavor seemed promising; for

the American Minister to Colombia was able to report the

signing, at Bogota, of a protocol, preparatory to a new treaty

of amity, commerce, and navigation, to be concluded at

Caracas. Four months later, on the 27th of April, 1906,

Minister Russell, at Caracas, announced the arrival there of

the Colombian plenipotentiary, General Benjamin Herrera,

appointed for the negotiation of the treaty agreed upon, but

reported further that the Venezuelan Government had refused to

receive him, demanding that somebody else be sent. No

settlement of the matter could be obtained while Castro

controlled Venezuela. Since his elimination it has been

reported that President Gomez, his successor, has annulled his

decrees of hostility to Colombian commerce.

COLUMBIA: A. D. 1906-1909.

Efficient but arbitrary Government produces discontent.

Opposition to treaty with Panama and the United States.

Vacation of President Reyes which ends in resignation.

Revolt.

Elections.

While the Government organized under President Reyes was

undoubtedly efficient and effective in restoring order and

prosperity to the country, it was not satisfactory to the

people; and perhaps it speaks well for them that they showed

discontent. It was not a representative government, the

existing Congress not being an elective body, but a

provisional legislature made up by appointment. As admitted in

the quotation above from a friendly Colombian writer, the

citizens under it were tongue-tied subjects, having no free

speech or Press. The political situation and the differing

states of feeling produced by it were discussed in April,

1909, by a special correspondent of the New York Evening Post,

who wrote from Bogotá:

"It seems to be confessed by the great majority of the people

here that the country has not entered on that stage of

political development in which the people can govern

themselves by parliamentary methods. The history of their

nearly one hundred years of independent national life has been

that of almost continual civil strife, and of frequent civil

wars, which have interrupted and almost destroyed all efforts

at self-government; so that the present system of government

by executive decrees, to be ratified by an appointed

‘Constitutional and Legislative Assembly,’ is about the only

one that can preserve the peace and direct the country into

the line of prosperity and progress.

{112}

"Under this system of government the country has enjoyed

almost perfect internal peace during the year. This is the

political theory that is most widely accepted at the present

time in Colombia. Of course, there are those who do not agree

with this theory, which they consider as the natural action of

men who are more anxious to preserve order than they are to

establish truth and justice, and there are not lacking those

who say that in the long run it will be found to be a foolish

system.

"It is pointed out that the idea that grievances can be done

away with by forbidding men to complain, or that the

criticisms can be met by excommunicating the critics, or that

changes can be prevented by putting the troublers to silence,

is contradicted by the experience of the rest of the world.

The kind of effort that is being made in Colombia to prevent

the liberty of the press, of public speech, and of personal

opinion, is like the effort to prevent the escape of steam by

the safety valve, and is very likely to result in an

explosion."

The state of public feeling in Colombia became further

complicated, no doubt, when, early in January, 1909, a

tripartite treaty was negotiated, with Panama and the United

States, for the settlement of questions connected with the

secession of Panama in 1903. Panama, in this treaty, agreed to

pay Colombia the sum of $3,500,000, as her share of the

Colombian public debt, receiving recognition of her

independence in return. The treaty was submitted to the

Colombian Congress by President Reyes on the 24th of February,

with a special message of recommendation; but public feeling

was said to be bitterly against it, for the reasons that no

wrongfulness in the transaction was recognized and the

indemnity was insufficient. Disturbances which broke out at

Bogota and in the provinces about the middle of March were

attributed mostly to this cause of discontent. For some reason

of discouragement or disgust, the President was reported to

have resigned his office on the 13th, but was persuaded to

resume it next day.

It was now decided to suspend consideration of the tripartite

treaty, until it could be submitted to an elected National

Congress, the election for which would be held on the 20th of

the coming July. In June, a few weeks before the appointed

election, President Reyes made a sudden departure for Europe.

Rumors that he had gone because tired of political strife and

would not return were contradicted by the Colombian Consul at

New York, in a published note which said: "His departure, the

causes of which are well known throughout Colombia, was due to

the fact that after five years’ strenuous labor he desired a

rest, and last March to the National Assembly expressed his

desire to retire temporarily from the Presidency, but, owing

to the opposition of public sentiment and the strong desire of

the people to have him remain, he determined not to leave the

Presidency until elections to the coming Congress had been

made. To this Congress, about to be convened, and in which all

parties are represented, President Reyes confides many of the

cares of government, left by law under his jurisdiction until

Congress should assemble, and withdraws, temporarily only,

from the discharge of his Presidential duties, leaving in his

stead General Jorge Holguin, his most intimate friend and

former minister of war, who will continue to pursue in all

matters the same policy as that adopted by his predecessor.

General Reyes during his stay in Europe, whence he has gone,

will perfect plans for developing railroad and other

industries in Colombia. There is absolute peace and

tranquillity in all parts of the country."

But the "absolute peace and tranquillity" of the country was

shaken in the first week of July by a revolutionary outbreak

at Barranquilla, soon suppressed, and the resignation of

President Reyes was received soon thereafter, from abroad. The

election of his successor now devolved on the new National

Congress, elected by the people on the 20th of July. It gave

the office, for the remainder of the unfinished term (which

expires August 7, 1910) to Señor Gonzales Valencia, who had

been proclaimed by the Barranquilla revolutionists the month

before, though he disavowed their movement.

COLONIAL CONFERENCES, British.

See (in this Volume)

BRITISH EMPIRE.

COLONIAL DOMINION, The passing of the age of.

See (in this Volume)

WORLD MOVEMENTS.

COLONIZATION: The colonizable regions of Africa.

See (in this Volume)

AFRICA.

COLORADOS.

See (in this Volume)

PARAGUAY: A. D. 1902.

COLUMBIA UNIVERSITY:

Interchange of Professors with German and Scandinavian

universities.

See (in this Volume)

EDUCATION: INTERNATIONAL INTERCHANGES.

COMBES, Justin Louis Émile:

Head of French Ministry.

See (in this Volume)

FRANCE: A. D. 1902 (April-October;

also 1903, and 1905-1906.

COMBES, Justin Louis Émile:

Vindication under scandalous charges.

See (in this Volume)

FRANCE: A. D. 1904 (JUNE-JULY).

--------COMBINATIONS, INDUSTRIAL AND COMMERCIAL: Start------

COMBINATIONS: AUSTRALIA: A. D. 1909.

Decision of the Federal High Court on the Anti-Trust Law.

Prosecutions by the Government.

"The first case brought under the Federal Anti-Trust Law ended

in June last in a decision of the High Court to the effect

that two important sections of the Act were ultra vires, as

the Constitution only empowered the Commonwealth to regulate

foreign and inter-State trade and gave it no authority to

interfere with trade within a State. The Federal Government is

now instituting proceedings against 27 firms which are alleged

to belong to a coal combine trading with other countries and

among the States of the Commonwealth. Each firm has been

called upon to answer certain questions under the Act in

question."

_Reuter Telegram,

Melbourne, September 27, 1909._

{113}

COMBINATIONS: Canada: A. D. 1909.

Merger of Dominion Iron, Steel, and Coal Companies.

Cement Combination.

The following is a Press despatch from Halifax, Nova Scotia,

November 13, 1909:

"The formation of the Canada Steel Corporation, the proposed

$70,000,000 merger of the Dominion Iron and Steel Company and

the Dominion Coal Company, was made possible by the agreement

of James Ross of Montreal, president of the Dominion Coal

Company, to transfer to a syndicate of Toronto capitalists a

portion of his holdings of the coal company stock. Final

arrangements regarding the stock transfer will be made here

to-day. President Ross owns coal company stock of a par value

of $5,000,000, and, although he does not dispose of all this,

he is to transfer enough to give control of the coal company

to the Toronto capitalists, who have already acquired a

controlling interest in the steel company. The plants of the

Dominion Iron and Steel Company and the Dominion Coal Company

are in Cape Breton, where they give employment to thousands of

men, and where they have caused little fishing villages to

spring up into flourishing cities."

Announcement of the completion of the merger was made in

December.

COMBINATIONS: CANADA: A. D. 1910.

Anti-Trust Bill in the Dominion Parliament.

A strongly constructed measure for controlling and regulating

commercial and industrial combinations, to check restraints of

trade and undue enhancement of prices, was brought into the

Dominion House of Commons on the 18th of January, 1910, by the

Minister of Labor, Mr. Mackenzie King, and its passage was

said to be assured. Mr King’s explanation of the Bill, as

summarized for the Associated Press, was as follows:

"The Bill, Mr. King stated, was not designed to interfere with

trade, but to protect the public from the operation of

monopolies. The bill provides that if six or more persons show

prima facie evidence to a superior court judge that a combine

exists, which has unduly enhanced the price of a manufactured

article, unduly limited the production of any commodity, or

unduly restricted trade in any way, the judge shall order the

minister of labor to have an investigation made. This shall be

done by a board of three, one member to be appointed by those

who complain, one by those complained against, and a chairman

by the first two, and if they fail to select the judge who has

heard the complaint shall act.

"This board has the full powers of a court to compel the

attendance of witnesses and the production of evidence. The

board must report to the minister and he must give the report

the fullest publicity.

"Two remedies are provided where a combination is reported to

exist. The government may withdraw the tariff protection from

the articles produced by the combine and bring the

manufacturers into competition with the world.

"The other remedy is a provision that if the combine persists

in its course after ten days there shall be a fine of $1,000 a

day imposed until the abuse is remedied. There is also

provision that when a patentee makes use of the protection of

the patent act to restrict trade or unduly enhance prices his

patent may be revoked.

"The act provides for its expeditious and thorough

enforcement, and all expenses of investigation are to be borne

by the government.

"Where question is raised as to the scope of the

investigation, the board shall make it as thorough and

complete as public interest requires. Boards are to conduct

their investigations in public and the decision of two members

shall be the decision of the board. Whenever the minister of

labor believes that counsel should aid the investigation, the

board may retain the services of a lawyer upon the consent of

the minister of justice. Witnesses are to be allowed the same

fees and traveling expenses allowed at the present in civil

suits. With the consent of the minister of labor a board may

employ experts to examine books and to report upon technical

questions."

COMBINATIONS: GERMANY:

Corporation Reform as the Germans have handled it.

"Thirty years ago the German people went through corporation

experiences much like our own. There, as here, the

corporation, as originally designed, was a mere shell. There,

as here, under the shelter of that shell, the property of the

country was being transferred from the German people at large,

even the little they had, to the few. There, thirty years ago,

as here now, great corporate scandals were exposed. And there,

as here, the human nature that is everywhere behind

civilization eventually began to recoil. It began there before

it began here, only because conditions reached a climax there

earlier than here, and because we as a people were too

prosperous and too busy to look even a little way beneath the

surface of things.

"But when the work of reform did come there, it was a genuine

reform. It did not content itself with indiscriminate

denunciation, or with mere lawsuits. Nor did it die out,

leaving the door still open to every character of corporation

the cunning of men might conceive. Before a corporation can be

organized in that country, it must prove, as in a court

proceeding, its rightful title to a corporate existence. In

the same way it must establish the amount and the character of

the capitalization it is allowed to put out. When property is

turned in, its value must be judicially ascertained. Upon

officers and directors is not conferred supreme power; in the

German corporation the shareholders’ meeting is the

counterpart of our New England town meetings—a genuine

assembly intended to do something more than pass resolutions

of approval. And every violation of trust, not merely to the

public, but to the shareholder as well, is quickly punished

with punishment that smarts. There is in the German

corporation no room for one to do, with impunity, in his

capacity as a corporation officer or promoter, what if done

individually would land him in the penitentiary."

_Judge Peter S. Grosscup,

The Corporation and the People

(The Outlook, January 12, 1907)._

COMBINATIONS: The Cartels.

Industrial combinations, quite as effective as the Trusts of

the United States, have been created in Germany on a wholly

different plan. The constituent organizations in them, of

capital and industry, are simply knitted or tied together by

hard and fast agreements, instead of being fused into huge

corporations, as the Trusts are. For the kind of covenant

which unites them a military term has been borrowed, and they

are called Cartels. The difference between the Cartel and

the Trust is described by a Scottish writer, D. H. Macgregor,

in his work on Industrial Combinations, as follows:

{114}

"The Cartel is an agreement for a time, the Trust is a

permanent structure; the former is therefore a factor in

industry full of speculative possibilities, both as regards

its actual operation, and because the 'residual' competition

of parties who break away at the end of the period is

considerably to be feared. … The principle of the pure Cartel

is compensatory action. It is an organization in which certain

producers deal with themselves, and exist for that purpose in

a double relation; they are producers of goods, and purchasers

of their own produce. What they stand to lose in one aspect

they stand to gain in the other. …

"The operation is broadly as follows. The members of the

Cartel, meeting as producers in general assembly, determine a

price for their product which covers cost of production, being

in fact practically a competitive price. This is the base or

normal price (_Richtpreis_). Thus they assure themselves, in

this capacity, of adequate remuneration. They then sell to the

Syndicate, that is to themselves as members of the Syndicate,

for what is called the ‘taking over’ or ‘accounting’ price

(_Verrechnungspreis_) which is usually on the average higher

than the base price, so that they have now created for

themselves as producers a ‘Cartel advantage.’ The Syndicate

then resells to the consumer, for a price which will be as

high as it can get, but which varies with the competition to

be met in different parts of the market; this price

(_Verkaufspreis_) may not in some cases be so high as the

taking-over price, or may not exceed it by more than the

margin necessary to cover the Syndicate’s expenses of

management. … It is the Syndicate which figures in the public

eye; and while it itself offers no sign of monopoly profit it

shelters the companies which gain by its handling of their

goods. It conceals monopoly dividends."

_D. H. Macgregor,

Industrial Combination

(G. Bell & Sons, London, 1906)._

COMBINATIONS: The Coal and Coke Cartels.

Their influence.

An elaborate history and description of the "Monopolistic

Combinations in the German Coal Industry," by Francis Walker,

was published for the American Economic Association in 1904.

These are treated as representative, because, says Mr. Walker,

"the most important and fundamental of all German castellated

industries" are those in mining and metallurgy. He traces

their development from a beginning in 1858, when an

association of the mining interests of the mining district of

Dormund was founded. In part, his conclusions as to the effect

of the coal cartels are as follows:

"The German coal cartels have not had an injurious influence,

in general, on the production of coal. More particularly they

cannot be accused, justly, of unduly limiting production among

themselves. Nor have they attempted to accomplish the same end

by crushing outside competition, by unfair methods. It would

be preposterous to say that they have hindered technical

progress. The cost of production, on the other hand, probably

has been somewhat increased by the preservation of weak and

costly mines through participation in the cartels. In regard

to prices, the policy of the coal cartels, on the whole, has

been moderate, taking circumstances into consideration, while

the policy of the coke cartel may be fairly pronounced

extortionate. The prices of coal have been more stable than

they would have been under free competition; during the

_hausse_ they were not screwed up so high as they might

easily have been, but, on the other hand, they have not

declined so quickly with the _baisse_. The like may be said of

the coke prices, but, at the same time, they were exorbitant

considered from the point of view of costs and profits. … The

_déroute_ of the iron industry was not due to the coal or

coke cartels in any important degree, i. e., even with low

prices, disaster to the iron industry would have been

inevitable. No other industry was affected so much as iron,

and it is at least very questionable whether the cartels in

general (excluding the coal cartels in particular) are to be

blamed for the crisis. … That they are to be blamed for the

ill-judged over-development of certain industries, which was

apparently the real cause of the crisis, does not seem to be a

just conclusion. On the other hand, the cartels may be

accused, with more probability of truth, of retarding the

convalescence of German industry by not reducing prices, and

if this is true, the coal and coke cartels are specially to

blame."

F. Walker,

Monopolistic Combinations in the German Coal Industry

(American Economic Association), 1904.

COMBINATIONS: Growing magnitude of companies.

Industrial concentration.

"The tendency to industrial concentration is shown by the

returns of public companies, which point to the growing

domination of large undertakings. Of 4,749 registered public

companies in 1895, 13.6 per cent. had a share capital not

exceeding £5,000, but in 1906, of 5,000 such companies, only

9.6 per cent. had a capital of that amount; the companies with

a capital of from £5,000 to £12,500 decreased from 14.0 to

10.4 per cent., and those with a capital of from £12,500 to

£25,000 decreased from 16.9 to 14.2 per cent. On the other

hand the companies with a capital of from £25,000 to £50,000

increased from 20.7 to 21.3 percent.; those with a capital of

from £50,000 to £250,000 increased from 28.5 to 35.0 per

cent.; those with a capital of from £250,000 to £500,000

increased from 3.4 to 5.4 per cent., and those with a capital

exceeding £500,000 increased from 2.9 to 4.1 per cent. In 1896

there were only two companies with a capital exceeding five

millions; in 1906 there were nine such companies, and their

combined capital was over seventy millions, having been more

than doubled since 1896. In spite of this tendency towards the

concentration of capital and the multiplication of large

undertakings, however, Germany is still an interesting

illustration of an industrial country which has not yet

entirely gone over to the factory system of production. The

handicrafts, the characteristic feature of which is the small,

independent master-workman, surrounded by his handful of

journeymen and apprentices, contend tenaciously, yet

unfortunately with only partial success, against the on-coming

tide of ‘great capitalism’ (private joint stock, and

cooperative), and the house industries continue to afford

employment to a multitude of workers of both sexes, estimated

at half a million."

_William H. Dawson,

The Evolution of Modern Germany,

pages 59-60 (Unwin, London; Scribner's, New York, 1909)._

{115}

"Among the home interests of the country nothing loomed up so

large last year [1904] as the subject of industrial

combinations. The process of consolidating industries and

banks into powerful organizations again made gigantic strides;

and the public mind, dazed and disquieted, is wondering what

will be its final outcome. All the largest steel manufacturers

have united in an association that shall have complete control

of the steel and iron products of the country; and it is

already effecting agreements with manufacturers of other

countries for parceling out the world’s markets. At the same

time the Coal Syndicate was reorganized to include all the

independent producers of the West; and in connection with it,

a great shipping and selling company was formed for the

purpose of controlling the retail trade and eliminating

recalcitrant dealers. These steel and coal combinations are

working in complete harmony, and no independent manufacturer

can exist against their will.

"In that great industrial region many large iron companies had

come into possession of coal mines. In order to induce these

to put their mines into the Syndicate, they were given the

right to produce, over and above their allotments, all the

coal that they might need for their own furnaces. A new

impetus was thus given to the process of consolidation. Strong

coal companies hastened to absorb iron establishments, in

order to earn larger profits by consuming their own coal in

indefinite quantities. Furthermore, as the allotments were

fixed absolutely for a long period, the strongest companies

proceeded to buy weaker, less economically worked collieries,

in order to shut them down and produce their allotments

elsewhere at lower cost. This movement assumed large

proportions. Miners by the thousand had to betake themselves

to other parts of the country, and entire communities were

threatened with depopulation. Industrial towns held

indignation meetings, to protest, and to demand the

nationalization of the mines; and excited operatives are still

holding conferences to discuss a general strike. The

Government has sent a commission to inquire into the movement;

and the Minister of Commerce has urged the coal magnates to

proceed as mildly as possible.

"This powerful concentric movement of industries has taken a

strong hold upon the thoughts of people and Government alike.

The public is deeply concerned at the growth of private

monopolies, and many persons who had hitherto favored letting

economic development take its own course now call for drastic

measures of prevention and repression. Country squires of the

most conservative type advocate the nationalization of all

coal deposits; and it is already asserted that a majority of

the Prussian Diet would vote for such a measure. This

convergence of the views of extreme Conservatism and radical

Socialism is certainly one of the oddest results of the

movement under discussion,—and one of the most instructive.

The natural trend of events is unquestionably in the direction

of some form of socialism. The Social Democracy clearly

perceives this, and so hails every industrial consolidation as

but another milestone on the way to state collectivism."

_W. C. Dreher,

Recent Events in Germany

(Atlantic Monthly, March, 1905)._

COMBINATIONS: International:

Of Transatlantic Shipping Companies.

Agreements with the British Government.

Announcement was made in October, 1902, of the incorporation

on the 1st of that month, under a New Jersey charter, of the

International Mercantile Marine Company, with a capital of

$120,000,000, and an issue of 4½ per cent. bonds to the amount

of $75,000,000. The combination included the American, the Red

Star, the White, the Atlantic Transport, the Leyland and the

Dominion lines. Both American and British capitalists were

represented in the board of directors, the former in the

majority. Several partners in the firm of J. Pierpont Morgan &

Company were included, and Mr. Morgan was understood to be the

architect of the combination; but he did not appear personally

in its organization.

The first step towards such a shipping combination had been

taken sixteen years before, when the British Inman steamship

line was taken over by the International Navigation Company,

made up of Americans, at the head of whom was Mr. Clement A.

Griscom, of Philadelphia. "The British Government promptly

withdrew the liberal subsidy which it had been paying to the

Inman liners; but Mr. Griscom and his comrades brought the

_New York_ and _Paris_ beneath the Stars and

Stripes, built the St. Louis and _St. Paul_, secured a

subsidy from the United States and gave the first-class

British lines a most formidable competitor. Indeed, commercial

rivalry in high grade ships on the North Atlantic soon became

too keen to permit of reasonable dividends and Mr. Griscom

found British ship-owners in a responsive mood when he

broached anew the great idea of an international combination.

"This union was made all the easier by the fact that meanwhile

another important British steamship concern, the Leyland line,

had been acquired by Mr. J. Pierpont Morgan in the spring of

1901. This line, itself the fruit of several consolidations,

controlled the largest British tonnage in the North Atlantic

trade. It owned no fast mail ships, no greyhounds. But it did

possess forty or fifty good, useful steamships of moderate

speed, many of them of large tonnage, and fit for passengers

as well as freight. The main Leyland service lay between

Boston or New York on this side, and Liverpool or London on

the other, and the business of the company had been so

profitable for a long term of years that its shares were

quoted at a handsome premium. Mr. Morgan paid a generous price

for his maritime investment. It is said that he gave £14 10s.

for each £10 share, or a bonus of 45 per cent. But amazement

at Mr. Morgan’s ‘liberality’ ceased when the next stage in the

great, far-sighted negotiation was unfolded.

"This was the dramatic uniting of the Leyland line with the

American and Red Star lines of the International Navigation

Company, and the Atlantic Transport line, another British

steam fleet owned by American capital. Later still it

transpired that the famous White Star line of fast mail,

passenger, and freight ships and the smaller but excellent

Dominion line were embraced in the huge consolidation. The

White Star was one of the two lines—the Cunard was the

other—which performed the British mail service between

Queenstown and New York. Its fleet included the great liners

_Oceanic_ and _Celtic_, the swift _Teutonic_

and _Majestic_, and the favorite _Britannic_ and

_Germanic_ which had held ocean records in their day,

together with a considerable number of large and efficient

freighters. The American purchase of the White Star line was

long disputed, and when it was finally confirmed, something

like consternation seized the British press and people, for

the White Star fleet had been regarded as distinctively a

British institution as the Bank of England. Its fast ships

received not only the mail pay of the post-office, but the

subventions of the Admiralty, and were enrolled on the

‘merchant cruiser’ list."

Winthrop L. Marvin,

The Great Ship "Combine"

(American Review of Reviews, December, 1902).

{116}

The anxieties with which the combination was regarded at first

in Great Britain were allayed materially by Mr. G. Balfour,

President of the Board of Trade, who made public, in a speech

at Sheffield, the terms of an arrangement that had been made

by the Government with the Cunard Company, on one hand, and

the Combination on the other. The Cunard Company, he said,

"pledged themselves to remain in every respect a British

company, managed by British directors—the shares not to be

transferred to any but British subjects. Their ships were to

be officered by British officers. They also engaged to

construct two vessels of twenty-four to twenty-five knots

which, as well as the entire Cunard fleet, the Admiralty would

have the right to charter or purchase at any time on terms

fixed in the agreement. The money for the construction of the

fast steamers would be advanced to the company at the rate of

2¾ per cent. interest, while in lieu of the present Admiralty

subvention—£28,000 a year for the contingent use of three

ships—the company would receive £150,000 a year. With Mr.

Pierpont Morgan, the head of the Shipping Combination, who had

shown the utmost readiness to meet the wishes of His Majesty’s

Government, it had been agreed that the British companies in

the Combination should remain British, not merely in name but

in reality. The majority of their directors were to be British

subjects. All their ships now flying the British flag were to

continue to fly it, and at least one-half of those hereafter

to be built for the Combination would likewise fly British

colours, be commanded by British officers, and manned in

reasonable proportion by British sailors. On the other hand,

the combined companies would continue to be treated, as

heretofore, on a footing of equality with other British

companies in respect of any services, whether postal, or

military, or naval, which His Majesty’s Government might

require from the British mercantile marine. It had been

further stipulated that in the event of the Combination

pursuing a policy hostile to our mercantile marine or to

British trade, the King’s Government should have the right to

terminate the agreement."

COMBINATIONS: United States: A. D. 1900.

Definition of the term Industrial Combination formulated

at the Census Bureau.

Statistics as collected in 1900.

"The officials of the Census Office, in order to prevent

misconceptions and insure consistency in the plan and system

of tabulation, formulated the following definition of the term

‘industrial combination’:

"‘For the purpose of the Census, the rule has been adopted to

consider no aggregation of mills an industrial combination,

unless it consists of a number of formerly independent mills

which have been brought together into one company under a

charter obtained for that purpose. We therefore exclude from

this category many large establishments comprising a number of

mills, which have grown up, not by combination with other

mills, but by the erection of new plants or the purchase of

old ones.’ …

"So far as can be ascertained from the data in the Census

Office, the number of these industrial consolidations is 183.

They control 2203 separate plants, scattered throughout the

United States, 2029 being active and 174 idle during the

census year. For 56 of the idle plants no returns could be

obtained, making the total number of reporting plants 2147.

The 183 combinations extend to almost all lines of industry,

producing articles of luxury, materials essential to the

upbuilding and growth of the country, and even the very

necessities of life. Fully 50 per cent. of these combinations

were chartered just prior to or during the census year; and it

is noteworthy that the epidemic of industrial consolidation,

as far as the so-called monopolies are concerned, has been

practically confined to the past four years. It is evident,

therefore, that the disease—if it be regarded as such—has

spread very rapidly.

"Naturally enough, iron and steel, with 69 combinations, heads

the list. The number of reporting plants engaged in this

industry is 469, and the capital invested, consisting of land,

buildings, machinery, tools and implements, and cash and

sundries, is valued at $348,000,000."

_W. R. Merriam,

"Trusts" in the Light of Census Returns

(Atlantic Monthly, March, 1902)._

COMBINATIONS: A. D. 1901-1903.

The question of Federal Control and Regulation.

Urgency of President Roosevelt for effective legislation.

In his first Message to Congress, three months after his

succession to the Presidency, President Roosevelt expressed

his mind frankly and clearly on the then increasing demand in

the country for more stringent measures of government, to

control and regulate the exercise of the power which great

aggregations of incorporated capital have created in recent

times. In part, he then said:

History for ready reference, Volume 7 · 第 7 / 50 章