Chapter 84:
1909
The Taft Administration

Some Inside History Concerning Mr. Roosevelt. - President Taft’s First Message.—Demand for Tariff Revision.—Bank Guarantee Laws.—Important Ruling by Supreme Court in Transportation Regulation.—First Really Successful Flying Machines.—Government Conditions Complied With.—Tour of American Naval Fleet Around the World.—Reasons for the Cruise, and its Results.—Nicaraguan Troubles.

Connected with the elevation of Mr. Roosevelt to the presidency there is a story of unusual interest, the authenticity of which appears to be well established. During Roosevelt’s term of office as governor of New York state he aroused the enmity of the political leaders by his independent attitude and refusal to accept their dictation in the administration of state affairs. They classed him as a dangerous man who, if not curbed, was likely to interfere with their plans and make serious trouble for them. At that time Mr. Roosevelt was very popular with the people and the indications were that no human power could prevent his renomination and reelection as governor. This was something the political managers desired to avoid at all hazards. They wanted to once more get control of state affairs, and to ensure this it was necessary to sidetrack Mr. Roosevelt, the main obstacle in their way.

The vice presidency had long been looked upon as a sort of political burial ground. United States Senator Thomas C. Platt, chief leader of the opposition to Roosevelt, and the undisputed "boss" of the machinery of the Republican party in New York state, is credited with being the prime mover in the manipulation which placed Roosevelt on the national ticket with McKinley in 1900. Mr. Platt and his followers did not desire to honor Mr. Roosevelt in naming him for the vice presidency, but they did most heartily wish to shelve him politically. McKinley and Roosevelt were elected, and the schemers were happy. But Fate took a hand in the game. McKinley was assassinated, and Roosevelt became President, the very position which the arch-plotters did not wish him to attain. He was bad enough, in their estimation, as governor of New York, but would be far more objectionable as President, as he would have more power and opportunity to interfere with their plans. This proved to be the case. Once seated as President it soon became evident that Roosevelt was not to be fettered by the orders or wishes of party "bosses" and the people quickly came to understand that they had a President who recognized no bounds of class, and was animated solely by a desire to ensure an administration of governmental affairs that would be to the best interests of the country.

Almost immediately after his term of office had expired Mr. Roosevelt went to Africa where he remained a little over a year hunting large game in the wildest part of the "Dark Continent." He was accompanied by his son Kermit, Major Edgar A. Means, ornithologist; Edmund Heller, zoologist, and J. Allen Loring, naturalist. The party sailed from New York on the steamer Hamburg, March 23d, 1909, three weeks after Mr. Roosevelt had surrendered the duties of the presidential office to Mr. Taft. They proceeded to Naples, where they took the steamer Admiral for Mombasa, via the Suez Canal, reaching Mombasa April 21st. From there the party went into the jungle region, remaining until the spring of 1910, and securing a large amount of big game, including elephants, lions and tigers.

Following the inauguration of President Taft on March 4th, 1909, the 61st Congress met in extra session on March 15th, at which time the President submitted a message calling for an immediate revision of the tariff in accordance with the pledges made in the party platform on which his campaign was based. In compliance with the request, or rather demand, made by President Taft, as his official message was very plain and outspoken in its insistence that the promises of the party to secure a revision of the tariff should be kept to the letter, the work of revision was taken up on March 17th, and the report of the House committee on ways and means adopted April 6th. The bill was reported to the Senate on April 12th, and debated for nearly three months, being finally passed July 29th, and approved by the President August 5th.

Hides, crude petroleum, and tea were placed on the free list, and the duties on coal, iron, lumber, gloves, print paper, wood pulp, cotton cloth, and some other articles reduced. The administration provisions for a corporation tax, maximum and minimum railway rates, a tariff board to advise with the President, a customs court, and maintenance of the drawback system with certain privileges to be enjoyed by millers importing wheat for the manufacture of flour, were adopted. The final vote in the House on the conference committee’s report was 195 ayes and 183 nays. A great deal of opposition to the measure developed in the Senate, where the fight against the reductions asked for by the President was long and stubborn, and it was not until important compromises had been made that the contest of the Senate to the passage of the bill was obtained.

As a matter of plain truth it must be stated that the measure failed to wholly satisfy either the supporters or the opponents of revision, it being at the best a sort of makeshift. It is well-known that the President was far from being pleased, feeling that the promises of the party made in the campaign by which he was elected had been trifled with, the country getting much less in the way of a reduction in tariff than it had been led to expect. It was the best, however, that could be obtained from Congress as then constituted, and the President finally signed the bill in lieu of something more satisfactory. Republican opponents of revision asserted that the reductions made were too great and virtually abolished the time-honored Republican doctrine of protection. Advocates of revision felt that the measure fell far short of giving the people any adequate relief from onerous taxation, while Democrats derided it as a joke, claiming that most of such fair reductions as were made were on articles but little used and would be of small benefit to consumers, while on articles of general consumption the reductions, with trifling exception, were wholly inadequate.

Just previous to dissolution in March, 1909, the 60th Congress increased the President’s salary to $75,000 a year, made an appropriation of $12,000,000 for two new battleships, awarded gold medals to Orville and Wilbur Wright for exploits in aviation, granted $800,000 for the relief of earthquake sufferers in Italy, and authorized the reenlistment of Companies B, C and D, 25th U. S. Infantry, mustered out of service by order of President Roosevelt for participation in what is known as "the Brownsville affair," the town of Brownsville, Texas, having been raided and "shot up" at night by a band of armed men. It was claimed by citizens of Brownsville that the raid was made by members of the 25th Infantry (colored) but, after a lengthy investigation no legal proof was furnished. At the closing session of the 60th Congress the copyright law was also broadened and revised so as to afford more protection to both authors and publishers.

This year also saw the enactment by the states of Kansas and Nebraska of what are known as "bank guarantee" laws, patterned after that of Oklahoma. This, in brief, is legislation, by the provisions of which the Various banks in these states guarantee the solvency of one another so far as money due depositors is concerned. Under these laws the depositors in state banks are guaranteed the return of their money in case of bank failure no matter how badly the bank may be involved. A guarantee fund for this purpose is raised, under state auspices, by levying an assessment on the average guaranteed deposits, less capital and surplus. In Kansas the assessment is one-twentieth of one percent, collectable not oftener than five times in any one year; in Nebraska one-fourth of one percent three times in 1910, and one-twentieth of one percent semiannually thereafter; in Oklahoma the assessment is one percent of the average deposits, less state funds.

If a bank fails or suspends, or is seriously embarrassed in any way, it is the duty of the bank commissioner of the state to at once take charge of its affairs and administer them for the benefit of the creditors. Depositors take prior rank as creditors and must be paid in full before any other claims are liquidated. If the funds of the bank are insufficient for this purpose the bank commissioner draws on the guarantee fund to make up the deficit. While intended mainly as a protection to the depositors in state institutions provision is made for national banks to voluntarily avail themselves of the privilege of safeguarding their depositors through the guarantee fund.

At first the bankers in the states named did not taken kindly to the guarantee law. They asserted that it was simply a means of making the sound banks stand sponsors for the weaker ones, giving the latter a credit they did not deserve, and penalizing the prosperous concerns with a liability incident to the dishonesty or bad methods of men who were not so honest, careful, or conservative as they might be. There was a lot of force in this argument, but the legislatures of the three states, in response to popular demand, overrode it, and now most of those who were in the beginning opposed to the plan are heartily in favor of it.

It was shown that the loss of deposited funds through the failure of a bank had an influence, direct or indirect, upon nearly all the other banks. People became timid and distrustful; they withdrew such moneys as they might have on deposit, regardless of the soundness of the banks they might be doing business with, or declined to entrust other funds to the keeping of the banks, preferring to hide them away at home. This quickly had a notable effect on the amount of money in circulation, reducing it considerably, and crippling business generally as the banks thus affected did not have the means of extending accommodations in the way of capital. The savings of widows and orphans, entrusted to supposedly honest men on deposit, were often stolen outright, or lost through bad investments. Whenever an incident of this kind occurred, although only one bank, and that an insignificant one, was involved, the entire financial community suffered to greater or lesser extent. Something had to be done to overcome the feeling of distrust that was becoming general all over the country, or the banking business would quickly dwindle into insignificance outside of the principal cities.

The state guarantee back of the banks in Kansas, Nebraska and Oklahoma has served to revive confidence, to make the people certain their money is safe, and in this way to stimulate the business of those particular states, not only in banking circles, but also in many lines of manufacturing and commercial enterprises, in a way this guarantee operates somewhat after the manner of the Federal law which guarantees the face value of national bank notes so long as they are in circulation, regardless of the solvency of the bank by which they were issued. In the three states named the depositors in state banks are guaranteed the return of whatever amount of money they may have deposited no matter how badly crippled, or entirely bankrupt, the bank may be.

"It smacks of socialism," say some of the politicians and agitators who have been opposing the law and endeavoring (vainly) to have it repealed. Well, suppose it does? Call it socialism, or anything you please, so long as it operates to the benefit of the people at large it is worth preserving, and the guarantee law has thus far proven to be all, and even more, than was claimed for it.

Up to May 3d, 1909, it had been the ruling of the interstate Commerce Commission that, under the Hepburn act, a railway could transport any goods which it had itself mined, manufactured or produced. This position was taken by the commission under the "commodities clause" of the Hepburn act, the purpose of which was to prevent the railways from maintaining a monopoly in such goods as they might be interested in producing. Its enactment may be traced to an effort to break up the practice of railways which owned or controlled coal mines or other properties, marketing the products of these properties on their own account, it being claimed that this course effectively stifled competition and tended to concentrate trade in the hands of the railway managers to the detriment of other producers in similar lines. In support of this argument it was contended that, the cost of production being equal, the railways had an unfair advantage in the matter of rates, and that so long as they were allowed to merchandise their own products in the open market it was impossible to compete with them.

On May 3d, the matter having been brought to trial, the United States supreme court, while declaring the "commodities clause" constitutional, decided that the government’s theory that a railroad could be prohibited from moving commodities merely because it had manufactured, mined, or otherwise produced them, was untenable. The court held that, where it could be shown that a railway, having produced goods, had disposed in good faith of such goods to a bona fide purchaser, it could not be stopped or punished for transporting them, and that the "commodities" clause would apply only when the railroad retained an interest in such goods. The sole object of the law, according to the supreme court, is to prevent common carriers being associated in an ownership interest at the time the commodities are transported. At the same time the court ruled that the holding by a railroad of stock in a producing company did not give the railroad what could be construed as an ownership interest.

It will be seen that this ruling does not disturb the legitimate application of the "commodities clause," but merely defines and makes explicit how it may be applied. It was an interpretation of the actual scope and intent of the law which was badly needed. Until it was filed there was a great deal of friction and misunderstanding as to what a railway might or might not do legally in the matter of moving goods in the production of which it had been interested. The decision, which has been generally accepted as a most sensible one, made it clear that it was not the intent of the Hepburn act to bar railways from transporting goods they had produced, but simply to prevent them from building up and maintaining a monopoly in such goods by acting as producer, transporter and owner combined.

To hold to the contention that a railway could not transport the coal it had mined, for instance, would be to arbitrarily injure the earning power of the road. The ruling of the supreme court lays down the law to the effect that, so long as a road does not haul the coal to be sold on its own account, it cannot be interfered with. It may haul the coal for use on its own line, and for its own purposes, or it may haul it for parties to whom it has been bona fidely sold before the actual act of transportation.

The year 1909 saw the beginning of actual mastery of the air with practical flying machines, not balloons, but heavier-than-air apparatus, propelled by their own motors and capable of being guided and driven in any desired direction. In the light of more recent developments the accomplishments of aviators in 1909 now seem weak and insignificant, but at that time they were truly marvellous. Between July 20th and October 9th, the Wright brothers, Orville and Wilbur, made a number of public flights which did much to remove doubt as to the practicability of the modern flying machine, and to establish the fact that the air could be navigated with as much ease and certainty as water.

Up to this time the Wrights had made such progress in the art of aviation as to attract worldwide attention, and on May 4th Congress voted to them gold medals in recognition of their work. These were presented at Dayton, Ohio, June 18th, by General James Allen, chief signal officer of the army. The state of Ohio, and the city of Dayton also rewarded them with gold medals, as did the Aero club of America, the gift of the latter being handed to the Wrights by President Taft. In the meantime Congress had made an appropriation of $25,000, with bonuses, for the best performance of an aeroplane suitable to the use of the army signal corps.

July 20th, 1909, the Wrights began working to secure this latter prize. They started with a record flight at Fort Meyer, near Washington, when Orville Wright, handling an aeroplane of the Wright type, remained in the air one hour and 20 minutes, traveling a distance of about seventy miles. During this trial he reached a height of some 260 feet, the greatest ever reached up to that time in America by a heavier-than-air machine. He also outlined the figure "8" in small circles three times, something never before successfully attempted. While this broke the record at that time it did not entirely comply with the army requirements.

Seven days later, July 27th, Oliver Wright made another flight, this time carrying Lieut. Frank P. Lahm, of the regular army, as a passenger. On this occasion he travelled a distance of 50 miles in one hour, 12 minutes, and 40 seconds. This established another new speed record, but was still short of the official army demand for a speed of forty miles an hour.

July 30th the prize was won. Orville Wright, with Lieut. Benjamin D. Foulois, of the army signal corps, made a ten-mile cross country flight in 14 minutes, 42 seconds, a rate of a little over 42 miles an hour, the machine rising to an altitude of 500 feet. Army experts decided that this met every requirement of the army test and the Wright machine was adopted for use by the signal corps. The Wrights also received the $25,000 prize, with a bonus of $5,000 for exceeding a speed of forty miles an hour.

But this was not the end of flying machines achievements in 1909. The Wrights had won every possible honor and emolument, but they were not satisfied. Taking part in the Hudson-Fulton celebration at New York, September 29th, Wilbur Wright started from Governor’s island, flew around the statute of Liberty, then across the harbor to the New Jersey shore, and from there returning to the starting point. As this was an exhibition solely no official time was kept. October 4th Wilbur Wright, again starting from Governor’s Island, flew up the Hudson river to Grant’s tomb and back, a distance of twenty miles, in 33 1/2 minutes. In some respects this was the most spectacular flight ever made, the machine passing in full view of the great fleets of foreign and American warships assembled in New York harbor at that time, and of thousands of spectators.

October 9th Wilbur Wright again surprised the world by flying at College Park, Md., a distance of nearly one and one-half miles in 58 3-5 seconds, or something like ninety miles an hour.

One of the greatest and most successful voyages ever made by a large naval fleet was brought to a close February 22d, when sixteen American war vessels, accompanied by six torpedo boats, and four auxiliary craft, returned to Hampton Roads after completing a cruise around the world. Starting on December 16th, 1907, from Hampton Roads, the harbor where it anchored at the finish, the fleet sailed a total distance of 42,227 miles, without the loss of a man, or a serious accident of any description. The route taken was from Hampton Roads down the eastern coast of South America to Cape Horn, thence into the Pacific ocean, and up the western coast to San Francisco. From the latter port the fleet made Hawaii, and from there by way of New Zealand, Australia, Japan and China, to the Philippines, returning via the Suez canal.

It was announced that the cruise was one for practice only, and undertaken with the purpose of acquainting the force with actual sea conditions. It is well understood, however, that about the time the vessels started there was strong impression abroad that the American navy was a weak one, and not able to cope with that of any second rate power. This did not conduce to respect for the American flag abroad, and moreover was not to the liking of President Roosevelt who was then completing his last year in office. It is known that he desired to end his term as president with the country at peace with the world, a peace not won by debasing treaties and diplomatic dickerings, but by wholesome respect for American power. Under these conditions it is more than probable that the imposing display was a wise move to dispel any war clouds that might be gathering on the horizon. If so, it succeeded admirably, for it had the effect of silencing talk about the weakness of our navy, and of creating a wholesome respect for it.

At all foreign ports where the ships entered, the people and authorities were astonished, and there was universal praise for the fighting force and completeness of the equipment. The foreign press, begrudgingly it is true in some cases, gave praise to the nation which could spare such a mighty armada from its own shores, and the bloodless fight for peace was won. It was a costly trip, but it was much cheaper than war would have been.

On the return of the fleet President Roosevelt, who had witnessed its departure over a year previously, was on hand to welcome the crews. In addressing them he said: "Over a year has passed since you steamed out of this harbor and over the world’s rim, and this morning the hearts of all who saw you thrilled with pride as the hulls of the mighty warships lifted above the horizon. You have been in the northern and the southern hemispheres; four times you have crossed the line; you have steamed through all the great oceans; you have touched the coast of every continent. Ever your general course has been westward, and now you come back to the port from which you set sail. This is the first battle fleet that has ever circumnavigated the globe. Those who perform the feat again can but travel in your footsteps. You have falsified every prediction of the prophets of failure. In all your long cruise not a accident worthy of mention has happened to a single battle ship, nor to the cruisers or torpedo boats. You left this coast in a high state of battle efficiency, and you return with that efficiency increased; better prepared than when you left, not only in personnel, but even in material."

Significant words of warning, it may be said, to the foreign nations which about that time might possibly have thought that Uncle Sam was without adequate protection in a naval way, and that the coast of this country would be easy to attack and subdue.

The battle ships which took part in this memorable voyage were the Connecticut (flagship), Kansas, Vermont, Louisiana, Georgia, New Jersey, Rhode Island, Virginia, Minnesota, Ohio, Missouri, Maine, Alabama, Illinois, Kearsarge and Kentucky. When the fleet started it was under command of Rear Admiral Robley D. Evans, who was retired May 8th, 1908, being succeeded by Rear Admiral Charles M. Thomas, who served only seven days, when Rear Admiral Charles S. Sperry took command and remained in charge until the end of the cruise.

At the regular session of the 61st Congress in December President Taft submitted a message treating of various national and international affairs. He reported the results of the second peace conference at the Hague, investigation of affairs in Libera, settlement of the boundary dispute between Bolivia and Peru, course of the government in dealing with President Zelaya of Nicaragua, and reported progress on the securing by Americans of a substantial interest in Chinese railway enterprises with the main purpose of making sure of an "open door" policy in that country.

As regards internal affairs President Taft reported the total cost of completing the Panama Canal would be $375,201,000, the increase from the original estimate of $139,705,200 being due to a substantial enlargement of the entire work, and especially to a widening by 100 feet in the Culebra cut. He advocated the establishment of civil pensions for superannuated employees of the government; reported the appointment of a tariff board to investigate the workings of the new tariff laws; reported a decrease of $45,000,000 in the army estimates for 1910, and of $38,000,000 in the navy estimates; advocated changes in our court systems which would insure the speedier administration of justice; urged the speedy establishment of postal savings banks, and the passage of a ship subsidy bill with the purpose of encouraging the establishment of American lines between the Atlantic seaboard and the eastern coast of South America, and from the west coast of the United States to South America, China, Japan and the Philippines.

That part of the President’s message dealing with Nicaraguan affairs is of special interest as disclosing the effect of the Zelayan administration on the progress of the Panama canal. There can be little doubt that Zelaya was disappointed when the United States government adopted the Panama route instead of the one through Nicaragua, as it deprived him of a chance to enrich himself at the expense of this nation. President Taft did not refer to this phase of the matter directly in his message but, by reading between the lines, it is easy to see what he had in mind. He said:

"Since the Washington conventions of 1907 were communicated to the government of the United States as a consulting and advising party, this government has been almost continuously called upon by one or another, and in turn by all of the five central American republics, to exert itself for the maintenance of these conventions. Nearly every complaint has been against the Zelaya government of Nicaragua, which has kept Central America in constant tension or turmoil. The responses made to the representations of Central American republics, as due from the United States on account of its relation to the Washington conventions, have been at all times conservative and have avoided, so far as possible, any semblance of interference, although it is very apparent that the considerations of geographic proximity to the canal zone, and of the very substantial American interests in Central America, give to the United States a special position in the zone of these republics and the Caribbean sea.

"I need not rehearse here the patient efforts of this government to promote peace and welfare among these republics, efforts which are fully appreciated by the majority of them who are loyal to their true interests. It would be no less unnecessary to rehearse here the sad tale of unspeakable barbarities and oppression alleged to have been committed by the Zelaya government. Recently two Americans were put to death by order of President Zelaya himself. They were reported to have been regularly commissioned officers in the organized forces of a revolution which had continued many weeks, and was proceeding in an orderly fashion in control of about half of the republic, and as such, according to the modern, enlightened practice of civilized nations, they would be entitled to be dealt with as prisoners of war.

"At the date when this message is printed this government is proceeding with deliberate circumspection to determine the exact truth in relation to these reports, and upon the course in the premises most consistent with its dignity, its duty to American interests, and its moral obligations to Central America and to civilization.

"The international bureau of American republics has carried on an important and increasing work during the last year. In the exercise of its peculiar functions as an international agency, maintained by all the American republics for the development of pan-American commerce and friendship, it has accomplished a great practical good which could be done in the same way by no individual department or bureau of one government, and is therefore deserving of your liberal support. The fact that it is about to enter a new building, erected through the munificence of an American philanthropist and the contributions of all American nations, where both its efficiency of administration and expense of maintenance will naturally be much augmented, further entitles it to special consideration."

While carefully avoiding any direct reference to President Zelaya’s attitude of obstruction toward the Panama canal it is easy to read in President Taft’s message that Zelaya was a mischief maker, and prone to stir up trouble in the canal zone. What his purpose was can only be guessed at. But it would not be unreasonable to suppose that, angered by the location of the canal in Panama, he was doing everything within his power to obstruct and hinder its progress. Zelaya finally became so obstreperous and unpopular that he was forced to resign, which he did December 16th, 1909, and was succeeded by Dr. Jose Madriz, a dictator of the same stripe. Madriz ruled until the following August, when the people who had become incensed at his unfriendly attitude towards the United States, drove him from office. General Juan J. Estrada was proclaimed President, and since then the relations of Nicaragua and the United States have been much more amicable.

Nicaragua is the largest of the Central American republics in area, being 49,200 square miles in extent, but is one of the smallest in point of population and commercial importance. In 1910 it had 600,000 inhabitants. Its total trade with the United States amounted to $2,360,098, of which $1,004,811 was represented by exports, principally cattle and coffee, and $1,355,287 by imports. These latter consisted largely of flour, wine, beer, barbed wire, cotton goods, sewing machines, kerosene, calico and tallow. The largest city is Leon, population 62,569. Managua, the capital, has a population of 34,872. Owing to its proximity to Panama a hostile government in Nicaragua would be a constant source of annoyance to the United States, especially if it should be headed by a malcontent like Zelaya. Since assuming the presidency in 1910, however, General Estrada has shown a disposition to be friendly with this country, and the embarrassing conditions which existed under his predecessor have been largely abolished.