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The Letters of Franklin K. Lane, Personal and Political

Franklin K. Lane

No one knows to this day where that water came from, but it was there! They shut off the stream. 'It will take three engines to pump it to that blaze,' said the fireman. He, Lane, and Anderson scattered in opposite directions looking for engines. When twenty minutes later, Lane returned with an engine and company two others had already arrived. But they had not yet coupled the hose up. The companies were quarreling as to which, under the rules of the department, should have the position of honor close to the hydrant! Lane settled that question of etiquette with speed and force. They got a stream on the incipient fire, and the water held out. The other side of Van Ness Avenue gradually burned out and settled down into red coals. The Western Addition was saved, and the San Francisco disaster was over." A few days later Lane started to Washington in an attempt to raise money for the rebuilding of San Francisco. When he found that Congress would not act in this matter, he, with Senator Newlands, of Nevada, and some others, went to the President and the Secretary of the Treasury to see if Federal help could be secured for the ruined city. To William R. Wheeler New York, June 23, [1906] MY DEAR WILL,--I have just returned from Washington, where I hope we have accomplished some good for San Francisco, although it was mighty hard to move anyone except the President and the Secretary of the Treasury. But I did not intend to write of anything but your personal affairs. Yesterday, on the train, I discovered that you had met with another fire. This is rubbing it in, hitting a man when he is down. The Gods don't fight fair. The decent rules of the Marquis of Queensberry seem to have no recognition on Olympus, or wherever the Gods live. I can quite appreciate the strain you are under and the monumental difficulties of your situation, dealing as you are with dispirited old men and indifferent young ones, I hope this last blow will have some benefit which I cannot now perceive, else it must come like almost a knock-out to the concern. Brave, strong, bully old boy, no one knows better than I do what a fight you have been making these last few years and how many unkindnesses fortune has done you. There is not much use either in preaching to one's self or to another, the advantages of adversity. I don't believe that men are made by fighting relentless Fate, the stuff they have is sometimes proved by struggle,--that is the best that can be said for such philosophy. More power to you my dear fellow! I took occasion to give M ... a warm dose of Bill Wheeler. He is an old sour-ball who thinks he is alive but evidently has been in the cemetery a long time. He talked all right about you, but all wrong about San Francisco ... Give my regards to the dear wife whose heart is stout enough to meet any calamity, and remember me most warmly to the Boy. Sincerely and affectionately yours, FRANKLIN K. LANE The Hepburn Bill provided for seven men on the Interstate Commerce Commission, instead of five. Roosevelt intimated that he would appoint two Republicans. All opposition to Lane was then withdrawn. To John H. Wigmore New York, June 27, [1906] MY DEAR WIGMORE,--Thanks, and again thanks, for your letter to Senator Cullom and yours to me. It looks now as if with a seven man Commission the objection to my Democracy would cease. Senator Cullom's letter is very reassuring, and I wish that I had met him when in Washington. ... Before another week this business of mine will have come to a head, and I hope soon after to start West, via Chicago. If the report to-day is true that Harlan of Chicago is to go on the Commission, you will have two friends on the body. I personally think most highly of Harlan and would be mighty proud to sit beside him. His political fortune seems to have been akin to mine, and we have one dear and cherished enemy in common. Remember me most kindly to your wife and believe me, faithfully yours, FRANKLIN K. LANE Telegram. To John H. Wigmore New York, June 30, [1906] Confirmation has to-day arrived thanks to a friend or two like Wigmore. LANE To William R. Wheeler Washington, July 2, [1906] MY DEAR BILL,--I have waited until this minute to write you, that I might send you the first greeting from the new office. I have just been sworn in and signed the oath, and to you I turn first to express gratitude, appreciation, and affection. My hope is to leave here tomorrow and go to Chicago at once on your affair, and then West. Remember me most affectionately to your wife, and believe me always most faithfully yours, FRANKLIN K. LANE At the same time an affectionate letter of appreciation went to Benjamin Ide Wheeler. IV RAILROAD AND NATIONAL POLICIES 1906-1912 Increased powers of Interstate Commerce Commission--Harriman Inquiry--Railroad Regulation--Letters to Roosevelt During the late summer of 1906, Lane was in Washington or traveling through the South and West to attend the hearings of the Interstate Commerce Commission. The Hepburn Act of 1906, among other extensions of power to the Commission, brought the express companies of the United States under its jurisdiction, and the Commission began the close investigation into the rates, rules, and practises, that finally resulted in a complete reorganization and zoning of the companies. The new powers given the Commission, by this Act, inspired fresh hope of righting old abuses, associated with railroad finance, over-capitalization and stock- jobbing. The Commission set itself to finding a way out of the ancient quarrel between shippers and railroads in the matters of rebating and demurrage charges. In the latter part of the year, President Roosevelt called an important meeting at the White House, for the purpose of deciding whether an inquiry should not be made into the merging of the Western railroads, then under the control of E. H. Harriman. Elihu Root, then Secretary of State; William H. Taft, Secretary of War; Charles Bonaparte, Attorney General, were present; Chairman Martin A. Knapp and Franklin K. Lane of the Interstate Commerce Commission, and the special Counsel for the Commission--Frank B. Kellogg. The matter of the proposed inquiry was discussed, each man being asked, in turn, to express his opinion. Root and Knapp were not in favor of beginning an investigation of the railroad merger, Bonaparte, Kellogg, and Lane favored an immediate inquiry. Lane declared that, in a few weeks, when the report of the Interstate Commerce Commission was published, it would be impossible to avoid making the inquiry. At this point, President Roosevelt turned to William H. Taft, who as yet had expressed no opinion, saying, "Will, what do you think of this?" Mr. Taft said quietly, "It's right, isn't it? Well, damn it, do it then." And the plans for the famous Harriman Inquiry, the first real step taken toward curbing the power of public utilities, were then taken under consideration. During the inquiry, when E. H. Harriman was on the stand for hours, the Commissioners trying to extract, by round-about questioning, the admission from him that he would like to extend his control over the railroads of the country, Lane, who had been silent for some time, suddenly turned and asked Harriman the direct question. What would he do with all the roads in the country, if he had the power? With equal candor and simplicity, Harriman replied that he would consolidate them under his own management. This answer rang through the country. TO EDWARD F. ADAMS Washington, February 16, 1907 MY DEAR ADAMS,-- ... I think the standpoint taken by our railroad friends in 1882 is that which possesses their souls to-day. I am conscious each time I ask a question that there is deep resentment in the heart of the railroad official at being compelled to answer, but that he is compelled to, he recognizes. The operating and traffic officials of the railroads are having a very hard time these days with the law departments. They can not understand why the law department advises them to give the information we demand, and I have heard of some most lively conferences in which the counsel of the companies were blackguarded heartily for being cowards, in not fighting the Commission. You certainly took advanced ground in 1882, ... --there can be no such thing as a business secret in a quasi-public corporation. ... Very truly yours, FRANKLIN K. LANE TO BENJAMIN IDE WHEELER PRESIDENT, UNIVERSITY OF CALIFORNIA Washington, March 31,1907 MY DEAR MR. WHEELER,-- ... I have taken the liberty of giving Mr. Aladyin, leader of the Group of Toil in the Russian Duma, a note of introduction. He's an immensely interesting young man, a fine speaker and comes from plain, peasant stock. He will talk to your boys if you ask him. During these days of panic in Wall Street the President [Roosevelt] has called me in often and shown in many ways that he in no way regrets the appointment you urged. I have been much interested in studying him in time of stress. He is one of the most resolute of men and at the same time entirely and altogether reasonable. No man I know is more willing to take suggestion. No one leads him, not even Root, but no one need fear to give suggestion. He lives up to his legend, so far as I can discover, and that's a big order. The railroad men who are wise will rush to the support of the policies he will urge before the next Congress, or they will have national ownership to face as an immediate issue, or a character of regulation that they will regard as intolerable. You will be here again soon and I hope that you will come directly to our house and give us the pleasure of a genuine visit. ... Sincerely yours, FRANKLIN K. LANE TO ELIHU ROOT Washington, February 14, 1908 My DEAR MR. SECRETARY,--I have lately been engaged in writing an opinion upon the jurisdiction of the Interstate Commerce Commission over ocean carriers engaged in foreign commerce, and it has occurred to me that an extensive American merchant marine might be developed by some legislation which would permit American ships to enjoy preferential through routes in conjunction with our railroad systems. The present Interstate Commerce Law, as I interpret it, gives to the Commission jurisdiction over carriers to the seaboard. It is the assumption of the law that rates will be made to and from the American ports and that at such ports all ships may equally compete for foreign cargo. Might it not be possible to extend the jurisdiction of the Commission over all American vessels engaged in foreign trade, and with such ships alone--they alone being fully amenable to our law --permit the railroad which carries to the port to make through joint rates to the foreign point of destination? There is so vast a volume of this through traffic that the preference which could thus be given to the American ship would act as a most substantial subsidy. There may be objections to this suggestion arising either out of national or international policy which render it unworthy of further consideration. It has appealed to me, however, as possibly containing the germ of what Mr. Webster would have termed a "respectable idea." Faithfully yours, FRANKLIN K. LANE TO E. B. BEARD Washington, December 19, 1908 MY DEAR MR. BEARD,--I have not seen the article in the CALL, to which you refer, but have heard of it from a couple of Californians, much to my distress. Of course I appreciate that at a time of strain such as that which you shippers and business men of California are now undergoing, it is to be expected that the most conservative language will not be used. ... The trouble is