During the summer of 1909, Gifford Pinchot, the Chief Forester, addressed an irrigation Congress in Spokane and asserted that the water-power sites were being absorbed by a trust. Much interest was aroused by the charge, which was looked upon as an attack on the Secretary of the Interior and his policy. Within a short time the idea became widespread, through the press, that Ballinger was associated with interests which were desirous of seizing the public resources and that this fact lay back of his partial reversal of the policy of his predecessor. This impression was deepened by the charges of L.R. Glavis, an employee of the Department of the Interior, concerning the claims of a certain Clarence Cunningham, representing a group of investors, to some exceedingly valuable coal lands in Alaska. Glavis asserted that the Cunningham claims were fraudulent, that many of the Cunningham group were personal friends of Ballinger and that the latter had acted as attorney for them before becoming Secretary of the Interior. President Taft, with the backing of an opinion from Attorney-General Wickersham, upheld Ballinger and dismissed Glavis. The press again took the matter up and the controversy was carried into Congress, where an investigation was ordered. About the same time Pinchot was removed for insubordination, and additional heat entered into the disagreement. The majority of the congressional committee of investigation later made a report exonerating Ballinger, but his position had become intolerable and he resigned in March, 1911. The result of the quarrel was to weaken the President, for the idea became common that his administration had been friendly with interests that wished to seize the public lands.
Republican complaint in regard to the tariff and the Pinchot-Ballinger controversy were surface indications of a division in the party into conservative or "old-guard," and progressive or insurgent groups. The same line of demarcation appeared in a quarrel over the power of the Speaker of the House of Representatives, Joseph G. Cannon. Cannon had served in the lower branch of Congress almost continuously for twenty-seven years, and in 1910 was filling the position of speaker for the fourth consecutive time. Much of his official influence rested on two powers: he appointed the committees of the House and their chairmen, a power which enabled him to punish opponents, reward friends and determine the character of legislation; and he was the chairman and dominant power of the Committee on Rules which determined the procedure under existing practice and made special orders whenever particular circumstances seemed to require them. It was widely believed that Cannon, like Aldrich in the Senate, effectually controlled the passage of legislation, with slender regard to the wishes or needs of the people. "Cannonism" and "Aldrichism" were considered synonymous. For several years an influential part of the Republican and Independent, as well as the Democratic press had attacked Speaker Cannon as the enemy of progressive legislation. Many of them laid much of the blame for the character of the Payne-Aldrich act at his door. The Outlook decried "government by oligarchy"; The Nation declared that he belonged to another political age; Bryan queried what Cannon was selling and how much he got; Gompers, the head of the American Federation of Labor, pointed him out as the enemy of all reforms.
The outcry against the Speaker in the House itself, reinforced by the gathering opposition outside, found effective voice in a coalition of the Democrats and the insurgent Republicans. In mid-March, 1910, an insurgent presented a resolution designed to replace the old Committee on Rules by a larger body which should be elected by the House, and on which the speaker would have no place. The friends of Cannon rallied to his defence; other business fell into the background; and debate became sharp and personal. One continuous session lasted twenty-six hours, parliamentary fencing mingling with horse-play while each side attempted to get a tactical advantage over the other.[5] Eventually about forty insurgent Republicans joined with the Democrats to pass the resolution. The result of the change was to compel the speaker to be a presiding officer rather than the determining factor in the passage of legislation. About the time that Cannon's domination in the House was being broken, the announcement that Senator Nelson W. Aldrich and his staunchly conservative associate, Eugene Hale, of Maine, were about to retire indicated a similar change in the Senate. These men had served for long periods in Congress and were looked upon as the ablest and most influential of the "reactionary" element in the upper house.
Coincidently with the partial disintegration of the conservative wing of the Republican party in Congress, there was passed a large volume of legislation of the type desired by the insurgents. The public land laws were improved; acts requiring the use of safety appliances on railroads were strengthened; a Bureau of Mines was established to study the welfare of the miners; a postal savings bank system was erected; and an Economy and Efficiency Commission appointed to examine the several administrative departments so as to discover wasteful methods of doing business. Of especial importance was the Mann-Elkins Act of June 18, 1910, which further extended the powers of the Interstate Commerce Commission. Experience had brought out serious defects in the rate-fixing procedure set up by the Hepburn Act. By that law, to be sure, a shipper could complain that the roads were charging him an unreasonable rate and the Commission might, in course of time, uphold him and order relief; but in the meantime the shipper, especially if he were a small one, might be crushed out of existence through the large rates, and the consuming public would have paid increased prices for commodities with no possibility of a remuneration to them, even if the Commission decided that the rates levied were unreasonably high. The Mann-Elkins law, therefore, provided that the Commission might suspend any proposed change in rates for a period not greater than ten months, and decide during that time whether it was reasonable and should go into effect or not. In this way the burden of proving the justice of a suggested change was placed upon the railroads.[6]
An act of June 25, 1910, which was amended a year later, required the publication of the names of persons contributing to the federal campaign funds of the political parties, and the amounts contributed, as well as a detailed account of the expenditures of the committees and the purposes for which the expenses were incurred. President Taft also urged the passage of an income tax amendment to the federal Constitution and indicated that he was in favor of an amendment providing for the popular election of senators. Amendments for both these purposes passed Congress; but they were not ratified and put into effect until 1913.
In June, 1910, Roosevelt returned from Africa whither he had gone for a hunting trip, after the inauguration of President Taft. Both elements in the Republican party were anxious for his sympathy and support. Roosevelt himself seems to have desired to remain outside the arena, at least for a time, but for many reasons permanent separation from politics was impossible. He became a candidate for the position of temporary chairman of the New York Republican State Convention against Vice-President James S. Sherman. The contest in the convention brought out opposition to him on the part of the old-guard, and his triumph left that wing of the party dissatisfied and disunited. During the summer and autumn of 1910 he made extensive political tours. At Ossawatomie, Kansas, he developed the platform of the "New Nationalism," which included more thorough control of corporations, and progressive legislation in regard to income taxes, conservation, the laboring classes, primary elections at which the people could nominate candidates for office, and the recall of elective officials before the close of their terms. He urged such vigorous use of the powers of the federal government that there should be no "neutral ground" between state and nation, to serve as a refuge for law-breakers. Critics pointed out that these proposals had been urged by the insurgents and the followers of Bryan, and there could be no doubt where the sympathies of Roosevelt lay in the factional dispute within the Republican party.
While conditions within the organization were such as were indicated by the hostile criticism of the Payne-Aldrich act, by the Pinchot-Ballinger controversy, the overturn of Speaker Cannon and the disintegration of the Aldrich-Hale group, the congressional election of 1910 took place. Signs of impending change had already become evident. Insurgent Republicans were carrying the party primaries; and the Democrats, who were plainly confident, emphasized strongly the tariff act, Cannonism and the high cost of living as reasons for the removal of the Republicans. The result was a greater upheaval than even the Democrats had prophesied. In nine states the Republicans were ousted from legislatures that would elect United States senators; the new Senate would contain forty-one Democrats and fifty-one Republicans—too narrow a Republican majority in view of the strength of the insurgents. In the choice of members of the lower branch of Congress there was a still greater revolution; the new House would contain 228 Democrats, 161 Republicans and one Socialist, while Cannon would be retired from the speakership. In eastern as well as western states, Democratic governors were elected in surprising numbers. Maine, Massachusetts, Connecticut, New York, New Jersey, Ohio and Oregon were among them. Of particular importance, as later events showed, was the success in New Jersey of Woodrow Wilson, former president of Princeton University.
Not long after the election of 1910 the President sent to Congress a special message urging the adoption of a reciprocal trade agreement with Canada. The arrangement provided for freedom of trade in many raw materials and food products, and for substantial reductions on some manufactured articles. He believed that the project would benefit both countries economically and improve the already friendly relations existing between them, and he set his heart upon its adoption. Opposition appeared at once: the farmers' organizations protested vigorously at the reduction of the tariff on agricultural products; the high protectionists were fearful of an entering wedge which might lead to further tariff reductions; and the paper and wood pulp interests also objected. Although the agreement eventually passed both houses of Congress by large majorities, the opposition was composed chiefly of Republicans. Objection to the arrangement in Canada turned out to be stronger than had been anticipated. The fear that commercial reciprocity might make the Dominion somewhat dependent on the United States seems to have caused a manifestation of national pride, and Sir Wilfred Laurier, who had led the forces in favor of the agreement, was driven out of power and reciprocity defeated. The result for the administration was failure and further division in the party.
Democratic control of the House during the second half of Taft's term effectually prevented the passage of any considerable amount of legislation. A parcel-post law, however, was passed, a Children's Bureau was established for the study of the welfare of children, and a Department of Labor provided for, whose secretary was to be a member of the cabinet. Aided by the insurgents, the Democrats attempted a small amount of tariff legislation. Although a general revision of the entire tariff structure would be a long and laborious task, specific schedules could be revised which would indicate what might be expected in case of Democratic success in 1912. The sugar, steel, woolen, chemical and cotton schedules were taken up in accord with this plan and bills were passed which were uniformly vetoed by the President.
In his attitude toward the regulation of big business, President Taft was in harmony with his predecessor and was in thorough sympathy, therefore, with suits brought under the Sherman law against the Standard Oil Company, and the American Tobacco Company. In May, 1911, the Supreme Court decided that both of these companies had been guilty of combining to restrain and to monopolize trade, and ordered a dissolution of the conspiring elements into separate, competing units. The Court also undertook to answer some of the knotty questions that had arisen in relation to section 1 of the act, which declares illegal "every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade." Did the prohibition against every contract or combination mean precisely every contract, whether important or not? Or did it refer merely to large and unreasonable restraints? The phraseology of the statute seems to prohibit restraints of all kinds, and the previous decisions of the Court had been in line with this view. When, then, the decisions in these two cases erected the "rule of reason" and declared that only those restraints were forbidden that were unreasonable, the attention of some opponents of the trusts was focussed on the obiter dictum, rather than upon the decisions themselves. In taking this position, they had the support of Mr. Justice Harlan who agreed to the decision but condemned the obiter dictum, asserted that the exact words of the law forbade every contract, and deprecated what he believed to be the amendment of statutes by the courts. The dissolution of the companies into competing units, however, had no apparent effect that was of benefit to the public. In fact, immediate increases in the value of Standard Oil stocks indicated that the decision was of slight consequence.