The Letters of Franklin K. Lane, Personal and Political
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