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 a.s.sumption 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 with the law. ... It is only upon complaint that an order can be made reducing a rate, and I understand that such complaints are at present being drafted in San Francisco and will in time come before us but such matters cannot be brought to issue in a week nor heard in a day, and when I tell you that we have on hand four hundred cases, at the present time, you will appreciate how great the volume of our work is, and that you are not alone in your feeling of indignation or of distress. If you will examine the docket of the Commission, you will find that the cases of the Pacific Coast have been taken care of more promptly within the last two years than the cases in any other part of the United States. I have seen to this myself, because of the long neglect of that part of the country. ...

I want to speak one direct personal word to you. You are now protesting against increased rates. I have outlined to you the only remedy [a change in the law] that I see available against the continuance of just such a policy on the part of the railroads, and I think it might be well for you to see that the Senators and Representatives from California support this legislation. It is not calculated in any way to do injustice or injury to the railroads. ... This is a plan which I have proposed myself, and for which I have secured the endors.e.m.e.nt of the Commission. The San Francisco Chamber of Commerce has endorsed it. The whole Pacific Coast should follow suit enthusiastically.

Please remember that I am not the Commissioner from California; that I am a Commissioner for the United States; and that it is not my business to fight the railroads, but to hear impartially what both sides may have to say and be as entirely fair with the railroads as with the shippers. I am flattered to know that the railroad men of the United States do not regard me as a deadhead on this Commission. My aggressiveness on behalf of the shipping public has brought upon my head much criticism, and it would be the greatest satisfaction for those who have been prosecuted for rebating or discovered in illegal practises to feel that they were able in any degree to raise in the minds of the shippers any question of my loyalty to duty.

I expect to be in California during January, for a few days, and hope that I may see you at that time. Very sincerely yours,

FRANKLIN K. LANE

TO GEORGE W. LANE

Washington, February 13, 1909

MY DEAR GEORGE,--... I suppose you haven't seen my interview on the j.a.panese question. I gave it at the request of the President [Roosevelt], because he said that the Republican Senators and Congressmen would not stand by him if it was going to be a partisan question in California politics. So I said that I would give the value of my name and influence to the support of his policy, so that Flint, Kahn, ET AL., could quote me as against any attack by the Democrats. The President has done great work for the Coast. Congress never would have done anything at this time, and by the time it is willing to do something the problem will practically be solved. I am expecting to be roasted somewhat, in California, but I felt that it was only right to stand by the man who was really making our fight without any real backing from the East, and without many friends on the Pacific--so far as the "pollies" are concerned.

... The Harriman crowd seems to think that they will all be on good terms with Taft, but unless I'm mistaken in the man they will be greatly fooled. ...

Have you noticed that nice point of const.i.tutional law, dug up by a newspaper reporter, which renders Knox ineligible as Secretary of State? He voted for an increase in the salary of the Secretary of State three years ago. They will try to avoid the effect of the const.i.tutional inhibition by repealing the act increasing the salary. Technically this won't do Knox any good, altho' it will probably be upheld by the Courts, if the matter is ever taken into the Courts.

Roosevelt is very nervous these days but as he said to me the other day, "They know that I am President right up to March fourth." I took Ned and Nancy to see him and he treated them most beautifully. Gave Ned a pair of boar tusks from the Philippines and told him a story about the boar ripping up a man's leg just before he was shot, and to them both he gave a personal card.

F. K. L.

With this letter he sent a copy of a verse written by his daughter, not yet seven.

"On through the night as the willows go weeping The daffodils sigh, As the wind sweeps by Right through the sky."

TO CHARLES K. MCCLATCHY SACRAMENTO BEE

Washington, March 20, 1909

My Dear McClatchy,--I am just in receipt of your letter of March 15th, with reference to my running for Governor next year.

There is nothing in this rumor whatever. I have been approached by a good many people on this matter, and perhaps I have not said as definitely as I should that I had no expectation of re-entering California politics. When I was last in California some of my friends pointed out to me the great opening there would be for me if I would become a Republican and lead the Lincoln-Roosevelt people. There does not seem to be any line of demarcation between a Democrat and a Republican these days, so that such a change would not in itself be an act of suicide. My own personal belief is that the organization in California on the Republican side could be rather easily beaten, and we could do with California what La Follette did with Wisconsin. But I am trying not to think of politics, and I told those people who came to me that I thought my line of work for the next few years was fixed.

... No one yet knows from Mr. Taft's line of policy what kind of a President he will make. Everybody is giving him the benefit of the doubt. The thing, I find, that hangs over all Presidents and other public men here to terrify them is the fear of bad times. The greatness of Roosevelt lay, in a sense, in his recklessness. These people undoubtedly have the power to bring on panics whenever they want to and to depress business, and they will exercise that power as against any administration that does not play their game, and the "money power," as we used to call it, allows the President and Congress a certain scope--a field within which it may move but if it goes outside that field and follows policies or demands measures which interfere with the game as played by the high financiers, they do not hesitate to use their "big stick," which is the threat of business depression. ...

There are a lot of things to be done in our State yet before we both pa.s.s out. ... As always, very truly yours,

FRANKLIN K. LANE

TO LAWRENCE F. ABBOTT OUTLOOK

Washington, September 22, 1909

MY DEAR ABBOTT,-- ... President Taft's suggestion of a Commerce Court is a very sensible one. We suggested the inst.i.tution of such a Court some years ago, so that the question of nullifying our order will be brought up before men who have special experience.

... The trouble with the Courts is that they know nothing about the question. Fundamentally it is not ... law but economics that we deal with. The fixing of a rate is a matter of politics. That is the reason why I have always held that the traffic manager is the most potent of our statesmen. So that we should have a Court that will pa.s.s really upon the one question of confiscation--the const.i.tutionality of the rates fixed--and leave experienced men to deal with the economic questions. ...

I have long wanted to see you and have a talk about our work. At times it is rather disheartening. The problem is vast, and we pa.s.s few milestones. The one great accomplishment of the Commission, I think, in the last three years, has been the enforcement of the law as against rebating. We have a small force now that is used in this connection under my personal direction, and I think the greatest contribution that we have made, perhaps, to the railroads has been during the time of panic when they were kept from cutting rates directly or indirectly and throwing each other into the hands of receivers.

The great volume of our complaints comes from the territory west of the Mississippi River and practically all of the larger cities in the inter-mountain country have complaints pending before us attacking the reasonableness of the rates charged them, and it is to give consideration to these that the Commission, as a body, goes West the first of the month. ...

I have just returned from a trip to Europe, and I find that what I said two or three years ago about the United States being the most Conservative of the civilized countries is absolutely true.