of McClure's there is an article purporting him and must have him on the ticket and in to be posthumous autobiography by the late the campaign; and they freely pledged themMr. Platt. It tells with much frankness, selves that under any circumstances they though with an incompleteness that might tempt those who know all the facts to round the story out, how Mr. Platt in his own opinion made and unmade Roosevelt as Governor, and how he made him Vice-President. Mr. Platt could never understand that great trend of public opinion which Mr. Roosevelt always knew how to reckon with, and which, also, some of those whom Mr. Platt was wont to designate as Roosevelt's "self-constituted friends," were in a position to understand and to measure with some accuracy. Roosevelt, would make him President in 1904. It was not Mr. Platt's intrigues and his alleged award of the Governorship to Odell that led Roosevelt to sacrifice his own wishes at Philadelphia. It was rather his feeling that he must respond to that larger call from the whole country, which had become irresistible through the lack of any other well-presented candidacy for the second place on the ticket. Mr. Roosevelt has long been in the game of party politics; but he was never in the game in that craven, abject fashion set forth in these Platt reminiscences. Seldom has anything ever been printed in the field of politics which so illustrates the blindness of a certain type of so-called leader. At Albany this winter we have been reaping the aftermath of the sort of political and legislative life that was built up under the boss-ship of Mr. Platt, the gradual disintegration of which dates from the Governorship of Mr. Roosevelt. Public opinion sometimes arouses itself tardily, but in the end it prevails over the intrigues and star-chamber methods of the Reform Mr. Roosevelt was never a puppet in Mr. Platt's hands. Platt had very reluctantly accepted him for Governor, because the State was about to go Democratic, the public was demanding Roosevelt, and the independents had already obtained from him what they regarded as a qualified consent to run at the head of their separate ticket. While it is true that the traction companies,-because Governor Roosevelt had signed the Ford franchise-tax bill,-had ordered the political bosses and spoilsmen. bosses to take Roosevelt out of State politics, he could nevertheless have won his renomination and re-election as Governor, in spite of Mr. Platt. Nothing would have been so easy as an exposure of the origin of the conspiracy against Roosevelt at that time, and a mere setting forth of undisputed facts would have resulted in Mr. Roosevelt's renomination and re-election as Governor. Thus the attempt on Mr. Platt's part to make it appear that Roosevelt was soft clay in the hands of a great boss is not only mistaken but ridiculous. Furthermore, although Platt and Quay started the Roosevelt boom at the Philadelphia convention, their motives were perfectly understood and were not in the least the factor that turned the situation in the end. Go On After all, the awakened forces of a better political life were not dependent upon keeping Mr. Roosevelt for a second term as Governor. Neither are they now dependent upon running Governor Hughes for a third term or keeping him in reserve as a possible future leader and reformer in the practical politics of New York or of the nation. He has done what he believed to be his duty with courage, and he has won even the reluctant respect of his enemies. He will give his best service to the country on the Supreme Bench at a time when his powers have reached their full development. His immediate program at Albany may suffer some setbacks, but if such a program rested only upon the force and conviction of one man its equilibrium would be unstable. There are many other capable and honest men in both parties in the State of New York; and those people of reform sympathies who have been content to read the newspapers and let Governor Hughes do the work will find it good for them to be compelled to take a more active part. That sort of reform which means honesty and decency in legislation and government, regardless of silly talk about party orthodoxy and loyalty, may receive slight checks now and then, but . it cannot be really defeated. The details of a primary-election law admit of many honest differences, but the fundamental object of purifying our political life is more important than details. Direct Primaries in New York The direct-primary bill which represented the views of Governor Hughes was defeated by a close vote in each house of the New York Legislature. The State will not even have the benefit of the restricted use of direct nominations in choosing candidates for the Legislature, an experiment proposed by a group of eminent citizens, including President Butler, President Schurman, the Hon. Joseph H. Choate, and ex-Mayor Seth Low. The Legislature was in no mood to adopt any nominating scheme which eliminated the party convention or caucus. Just what the people of the State think about (Congratulations in New York on the translation of the Legislature's action cannot be fully known until the members begin to canvass their districts for re-election next fall. In certain of the "up-State" counties a very strong sentiment in favor of direct primaries has been manifest before and since the defeat of the Hinman-Green bill. At the same time it should be said that the firmest advocates of this reform are less and less disposed to look upon it as a panacea. It is clear that there are many results admittedly desirable in our political life which direct nomirations will not bring about. "The Ballot " New NUF SED" Governor Hughes to another sphere) From the Herald (Washington) Commissions Last month the New York LegisPublic-Service lature adopted amendments to the Public-Service Commissions law extending the operation of the law to telephone and telegraph companies and giving the commissions jurisdiction over the commutation rates of railroads. Recently the States of New Jersey and Maryland have created public-utilities commissions resembling in some features the commissions of New York and Wisconsin. Maryland adopts the courtreview provision of the Wisconsin law. The It is even questioned whether, New Jersey law covers telephones and all Short in a State like New York, any other public utilities, and makes the granting system of direct nominations of franchises dependent on the approval of would be even moderately successful unless the State Commission. In an early number accompanied by the "short ballot," the of this REVIEW we hope to set forth in some plan under which each voter takes part in detail the more significant things accomchoosing at one time only those officials who plished by the New York and Wisconsin are important enough for him to care about, Commissions, respectively, since their estabfew enough for him to know about, and lishment. These two States were pioneers in powerful enough to be held to account. this method of exercising supervision and conThere was a striking illustration of the trol over corporations chartered by the State value of the "short ballot" in the Rochester for the operation of public utilities. The Congressional election on which we com- New York Legislature voted to adjourn on mented last month. The "regular" Re- May 26. As these pages were closed for the publican candidate, standing alone, could press important business was still pending at not secure the vote of thousands of "straight" Albany. The graft inquiry resolutions caused Republican voters who in an ordinary elec- a great deal of acrimonious discussion, and tion would have simply voted the ticket attempts were made to phrase them in such without making any real choice for Con- a way as to make the promised investigation gressman. Thus in a single day the "short practically valueless. Several excellent measballot" broke a machine that had been ures, on the other hand, seemed likely to pass, twenty years in building. It was a con-notably the bills recommended by the comvincing demonstration of its effectiveness. mission on employers' liability. Copyright by the American Press Association, N. Y. Affairs at sound logic would have demanded the business reorganization of the Post-Office Department before adding new and untried functions. It is probable, also, that the bill for the admission of Arizona and New Mexico as States will be crowded through, although the impropriety of statehood at this time is privately admitted by all public men. Money for the Tariff Board A great tribute to Senator Beveridge and those who have advocated expert study of the tariff question as a basis for reform, is paid by President Taft in his ardent espousal of the plan to appropriate $250,000 for the work of the Tariff Board during the coming year. Congress ought, of course, to give the sanction of law to the inquiries that the able members of this board are making. But if the appropriation be granted, the authority to make the desired studies will perhaps have been conferred by implication. Those who criticise the Payne-Aldrich tariff know very well that the time is not ripe for another general tariff revision. We can get along and do business exceedingly well under almost any kind of tariff. But the country has no patience with the attempt to snub and to sidetrack every Republican Congressman or Senator who believes it to be his right to justify the grounds upon which last summer he voted against the Payne-Aldrich bill. Parties nowadays are not held together by adherence to any precise dogmas. They do not differ radically about railroad regulation, tariff policies, or any other particular issue. The parties at present are traditional associations which justify themselves not so much by their creeds as by their intelligence and efficiency in doing public business. is not a good time for either party to raise tests of orthodoxy against men who have been its able and useful exponents. At Washington the work of the long session of Congress is in its Washington final stages. It seemed certain, late in May, that the bill regulating railroads would become a law, although a good deal changed from its original form. The chief trouble has been that the country is not clamoring for railroad regulation, or for any other program of new laws. What the country wants is clean, efficient administration and economical expenditure. By far the most important bill pending before Congress in this session is the one which would put the Post-Office Department on a reorganized business basis. It is not the fault of the present Postmaster-General that he is compelled to run this one great business department of the Government in connection Testimony in the long-drawn-out with party politics. But it is certainly someinvestigation of the Glavis-Pinbody's fault that the present administration chot charges against Secretary has not been willing to give its aid to that Ballinger came to an end with the third great and praiseworthy measure, the Carter week of May. Senator Nelson seems to bill, which would save scores of millions of have made an excellent chairman of the joint dollars a year and make it possible to run committee. Senator Root, who sailed just the postal business of the United States upon as the testimony ended to represent us in the modern principles. When we reach the de- arbitration at The Hague, was a long-suffersired goal of a six-year, one-term Presidency, ing but faithful member of the committee the reasons for keeping the Post-Office Department a political machine will disappear as if by magic. We shall adopt a postal savings-bank system in this session; but The Ballinger- L who evidently felt that the whole thing was more like a church quarrel than like the exposure of any real misconduct. Ex-Secretary Garfield, Mr. Pinchot, and various others had convinced themselves that Secretary Bal- New Haven Road, the New York Central, linger was far more friendly to the corpora- the Jersey Central, and several other railtions and the special interests that desired to exploit Alaska and our Western domain than he was toward the policy of conservation" as they interpreted it. President Taft, the Attorney-General, and others could not find that Secretary Ballinger had acted in bad faith in the matter of certain entrymen who claimed allotments of coal land in Alaska under the laws provided for granting such public property to private individuals. The testimony is voluminous; and until it has been digested, presented in briefs to the committee by opposing counsel, and finally passed upon by Senator Nelson and his colleagues, we can see no advantage that could accrue from our endeavor in these pages to point out any conclusions. The roads serving New York City have announced increased passenger fares, or are known to be considering such a move. This additional sting in the increased cost of living has produced much indignation among the residents of the suburban districts near New York, who must regard the cost of their monthly commutation tickets as a fixed charge, and who have a very lively sense of this particular item when they buy, each month, a new commutation "book." It is one of those very direct taxes on the consumer which catches his attention more readily and offensively than a ten times greater, but indirect, tax through high Government tariff rates or high railroad freight rates. Commuters have organized at many points. to fight the increase. The Commuters As a matter of fact, the commutation rates of the railroad lines serving the suburbs of Although Kentucky is to be added. Income-Tax to the list of States that have Amendment ratified the income-tax amend- Embattled ment, since it has been decided that one of the attempts of the legislature to take such our great cities seem remarkably low, action was constitutionally correct, the vote and increases in them can be more of the States that have thus far committed easily defended, arguing from surface themselves on the proposition is far from re- facts, than could many of the present proassuring to friends of the amendment. The posals of the railway managers. For inStates whose legislatures have ratified are stance, the New Haven Railroad sells its Alabama, South Carolina, Mississippi, Okla- commutation books at a rate which gives it homa, Kentucky, Illinois, and Maryland. considerably less than half a cent a mile. The most spectacular gain made by the When one gets below the surface and conamendment last month was in the State of siders the factors of relative density of traffic New York, where ratification was defeated on the one hand and increased cost of exin the lower house of the legislature by a pensive terminals on the other, the layman single vote and was actually carried in the is out of his depth. The railroads contend Senate. But a miss is as good as a mile and that these monthly suburban tickets have the Empire State cannot yet be counted in always been sold at a loss, the one compensatthe ratification column. Neither can Vir- ing factor being the building up of the terriginia, Rhode Island, or Massachusetts, whose tory served, the resulting increase in freight legislatures have rejected the amendment by business, and the higher priced passenger decisive majorities, while the legislatures of traffic gained from the non-commuting memConnecticut, Georgia, Ohio and New Jersey bers of the suburban families. Of much failed to take action. If eight more votes larger importance is the general movement should be cast against the amendment (in toward higher freight rates, to compensate addition to the four already recorded) its for the recent wage increases, which, it is defeat would be made certain. At least as estimated, will aggregate $150,000,000 many as eight States, whose legislatures will not be in session before January next, are counted as "doubtful." yearly of additional expense in the operation of the railroads. These proposed freightrate increases are not taking the form of a horizontal raising of commodity rates, but of increases in the so-called class rates. By this method it is expected that the higher costs that finally reach the consumers will come on such articles as pianos, automobiles, and other articles of luxury, rather than on the staple necessities of life. Europe 66 Kansas Corn Ceylon Rubber The course of prices for Ameri- securities, especially in those young and Buys Our can securities has been downward struggling railway ventures in new sections Railway Bunds since last autumn. With nu- of our country whose difficulties we ourmerous brief rallies and, again, periods of selves could see too clearly. By purchasing quiescence, the history of the six months on the stocks and bonds of such railways at low the Stock Exchange shows clearly that we figures and locking them up, the thrifty are in a bear market," following the two Hollander and Frenchman and German have years' rise of prices from the panic levels in made very handsome profits. the autumn of 1907. In April, at the time when large exports of gold from this counLiterally at the other end of the try were daily occurrences, the stock market earth from the business of farmlooked weaker than at any time within ing in our Middle West is the eighteen months. It was at this time that business of growing rubber trees in the Far announcement was made of arrangements East. Yet the Kansas corn fields are linked to for the marketing in Europe of very large the rubber plantations of Ceylon and Java and blocks of American railway bonds, a proceed- Sumatra by one of those commercial chains ing which has distinctly heartened the Amer- of modern human association that disdain ican investor. Our railways need, nowa- continents and oceans intervening. It seems days, such huge sums of money to handle that nearly half of the automobiles sold in properly the increasing traffic of the country, America are bought by farmers, mostly Midand for terminal facilities which are constantly becoming more costly, that American investors are not always in the mood to supply the requisite funds, and each failure to sell an issue of bonds makes, by unsettling confidence, more difficult the next attempt. 65 cents. Of course, even the automobileThus the news that French and German bankers had the faith in our railway securities to sell them to their clients gave fresh hope and stimulus. How One of the largest issues to be Foreigners placed abroad is that of the Have Profited Baltimore & Ohio Railway; a large part of its new $40,000,000 of collateral trust notes, running three years, will probably be taken up by foreign investors. French bankers are arranging to help dispose of the new Chicago, Milwaukee & St. Paul debenture bonds, of which $50,000,000 have been authorized, and the German market is to absorb probably $10,000,000 of the Missouri, Kansas & Texas bonds. In Paris the "Big Four" Railroad is selling $10,000,000 of debenture bonds, and the general development 4 per cent. bonds of the Southern Railway have been introduced on the Berlin Bourse. The financial logic of this proceeding is, of course, that the money coming from foreigners who purchase these securities will compensate for our relatively unfavorable trade balance of the past year. On the news of these transactions the rate of exchange promptly fell to a point where it was unprofitable to export gold from America. The French, the Germans, and the Dutch have for a generation shown great faith in the American railway dle Western farmers. In making enough tires to fit out these automobiles a demand has been created for rubber that has put the price of the crude article up to $3 a pound. Only two years ago it could be bought for justifying prosperity of the Wall Street broker or the Ohio manufacturer is, in the final analysis, dependent upon bounteous farm products. So the size of our coming. crop will determine in a large degree the activity in launching plantations of young rubber trees across the globe, which so far this year has been unprecedented. In financing these new rubber companies, the English public, centering around the rubber market of Mincing Lane, London, has worked itself into a speculative craze. Some further account of this veritable mania is given on page 757. During the first four months of this year no less than 506 new rubber companies were floated from London. The face value of their shares ran to about $30,000,000, but calculating the enormous premiums asked and obtained,-some two-shilling shares are now selling as high as eighty shillings-it appears. that the English public, including large investors and small, have put into this artificial rubber planting a sum equal to perhaps half a billion dollars. |