[Illustration:
Election of 1904 by Counties]

The election resulted in the choice of President Roosevelt, whose popular vote was 7,600,000 to Parker's 5,000,000. In the more populous sections of the country, which were normally Republican, the party vote scarcely exceeded that of 1900, but in the Far West, the increases were notable. Beyond the Mississippi River, except in the southern states, hardly a county gave a majority for Parker, showing that the region which had gone to Bryan in 1896 was substantially solid for Roosevelt. Indeed, the policies to which Roosevelt was committed bore a greater resemblance to the principles of Bryan than to the laissez faire philosophy to which many important Republican leaders adhered. Despite their dissent, however, his victory in the election was so overwhelming that he could carry out his program with the irresistible pressure of public opinion behind him.

During the campaign year, the Commissioner of Corporations was busy investigating the activities of the so-called "beef-trust," and a suit against the combination was pressed to a successful conclusion in January, 1905. In its decision in the case (Swift & Company v. United States), the Supreme Court dwelt at some length on the charges made against the Company. A dominant proportion—six-tenths—of the dealers in fresh meat in the United States were alleged to have agreed not to bid against one another in the live-stock markets; to restrict the output of meat in order to raise prices; to keep a black-list; and to get illegal rates from the railroads to the exclusion of competitors. To the objection of the members of the trust that the charges against them were general and did not set forth any specific facts, the Court retorted that the scheme alleged was so vast as to present a new problem in pleading. The decision was against the combination, which was ordered to dissolve. The publicity given to the case and to the methods of the meat packers assisted in the passage of legislation requiring government inspection of meats.

An unexpected phase of the Sherman act appeared in 1908, in the case Loewe v. Lawlor. The American Federation of Labor, acting through its official organ, had declared a boycott against D.E. Loewe, a hat manufacturer of Danbury, Connecticut. The Court decided that a combination of labor organizations designed to boycott a dealer's goods was a combination in restraint of trade and that the manufacturer might maintain an action against the Hatters' Union for damages.[5]

In the meantime, another prominent trust had played into the hands of the administration. The American Sugar Refining Company imported large amounts of raw sugar, on which it paid tariff duties. In November, 1907, it was discovered that the Company had tampered with the scales on which the incoming sugar was weighed, in such a manner as to defraud the government. In the resulting legal actions, over $4,000,000 were recovered from the Company, criminal prosecutions were carried on against the officials and employees, and several of them were convicted. The close relation between the railroads and the great corporations was indicated when the Standard Oil Company of Indiana was brought into court on the charge of receiving rebates on petroleum shipped over the Chicago and Alton Railroad. The decision by Judge K.M. Landis was that the Company was guilty on 1,462 separate counts and must pay a fine of $29,240,000. On appeal to a higher court the case was dismissed, partly on a question concerning the meaning of the law.

The efforts of Roosevelt in the direction of control of the railroads resembled his activities in relation to industrial combinations. A variety of circumstances had combined to arouse a popular demand for the reinforcement of existing legislation: the discovery of grave abuses in connection with the transportation of petroleum; the continuance of favoritism and rebating, together with increasing public knowledge of their existence; the rise in freight rates; and the consolidation of the railroads into a few large systems, with the accompanying concentration of power in the hands of a small number of persons. In his public speeches and in his messages to Congress in 1904 and 1905, President Roosevelt made himself the spokesman of the popular will. In particular—and it was here that the conflict was destined to rage—the President called for the transfer to the Interstate Commerce Commission of the power to determine the rates which the roads should be allowed to charge. The project was not a new one, having already taken shape in previous years, but at no time was Congress prepared to pass definite legislation. The reaction of the railroads to the rising demand was energetic. A costly propaganda was entered upon designed to prove to the public that the roads should be let alone. A powerful lobby worked insistently upon Congress, first to prevent action and later, when action was seen to be inevitable, to weaken the legislation wherever possible. The railroad's campaign of popular education, however, helped to convince the popular mind that new laws were needed, and came coincidently with the disclosures of corporate mismanagement and wrong-doing. The outcome was the Hepburn Act of June 29, 1906.

Its major provisions were five in number. It enlarged the scope of the Interstate Commerce Act so as to include control of express and sleeping car companies, pipe lines, switches, spur tracks and terminals. Free passes, which had hitherto been productive of much favoritism and the source of political corruption, were strictly forbidden, except to a few specified classes. The "commodity clause" forbade railroads to carry goods, other than timber, in which they had an interest, except such as they were going to use themselves. This provision was designed mainly to check the activities of those companies which owned both coal mines and railroads, and which used their advantageous position to crush independent operators. Its force, however, was largely nullified by subsequent decisions of the courts. The Hepburn law also enabled the Commission to prescribe the methods of book-keeping which the roads must follow, to call for monthly or special reports and to employ examiners who should have access to the books of the carriers. The roads were even denied the right to keep any records except those approved by the Commission. These drastic features of the law were due in part to the practices of certain roads which hid away corrupt expenditures in their accounts in such a manner that detection was almost impossible. Most important, however, among the provisions of the Act was that in relation to rate-making, which not only empowered the Commission to hear complaints that rates were unjust or unreasonable, but even enabled it to determine what would be a just and reasonable charge in the case, and to order the carrier complained of to adhere to the new rate. The rate-making section of the Hepburn Act immediately resulted in a large increase in the number of complaints entered by shippers against the carriers. Previously, few cases had been taken to the Commission—only 878 in eighteen years—because relief was seldom obtained and then only at great cost in time and money. Under the new law more than 1500 cases were entered within two and a half years, and several thousand others were informally settled out of court.

The example of the federal government in adopting restrictive railway legislation was followed by the states, on a nation-wide scale. Hours of labor were regulated, liability for accidents defined, railroad commissions given larger powers, and freight and passenger rates determined. The result was a tangle of local regulations, many of which were designed to embarrass the roads and others of which were passed with slight knowledge of the practical questions involved.

Aside from his connection with the anti-trust campaign and the movement for railroad regulation, Roosevelt's most significant activities during his second administration related to conservation. As early as 1880 the Superintendent of the Census had called attention to the exhaustion of the best public lands. The truth of his assertion had been exemplified in the rush of settlers to Oklahoma when the former Indian Territory was opened to settlement on April 22, 1889. At noon on that day the blast of a cavalry bugle was the signal that any settler might enter and stake out his claim. On foot, on fleet horses, in primitive wagons, an excited, jostling mob rushed toward those lands that seemed most desirable. Trains were crowded to the roofs; tools, furniture, and portable houses were carried in from Texas, Nebraska and Kansas. By nightfall a stretch of waving prairie became Gruthrie, with a population of 10,000 persons; by the evening of the first day Oklahoma possessed a population of 50,000; twenty years later it had over a million and a half, contained flourishing cities, many public enterprises, and a beautiful state university.

The fact that desirable land was becoming so rare called attention to the waste and dishonesty in connection with our public land system. In his annual report for 1884 the Secretary of the Interior had complained that large amounts of land had been acquired under fictitious names or by persons employed for the purpose. Their holdings were then passed over to speculators who retained huge areas for a rising market. Railroads had kept lands granted to them, without fulfilling the conditions of the grants. Titled Englishmen and English land companies had gained control of tracts of unbelievable size, one of them being estimated at 3,000,000 acres. The history of the disposal of the public land had almost been duplicated in the history of the forest-bearing public domain, except that measures had earlier been taken to conserve the remnant of the once magnificent supply of standing timber. An act of 1891 had enabled the president to set apart as public reservations any lands bearing forests. All the presidents, from Harrison down, had availed themselves of their power, and had established great numbers of reservations, most of them in states west of the Mississippi.[6]