VOL. 46 IT WARD MAY, 1907. No. 3 T would be highly interesting and suggestive to compare the constitution which the conventions of delegates from Oklahoma and Indian territories adopted with the constitution of the states that came into the Union a quarter of a century ago, or even later. Each new constitution is a landmark, a sign-post of progress. Each period has its ideas, features, tendencies, and a constitution (or even a local charter) reflects these more or less faithfully. The Guthrie convention adjourned in March after a session of 115 days. The convention was democratic (in a party sense), and remarkably enough, delegates of Indian extraction were more influential in it than white delegates. Its spirit was radical, except on the issue of race or color, and a number of things it proposed to do attracted national attention and led to sensational reports. It was said that President Roosevelt had threatened to reject the constitution and prevent statehood in the event of the adoption of a "jim crow" article-an article for separate railroad coaches for whites and blacks and another provision prohibiting railroad corporations from protecting their property against violence and assault during strikes and industrial trouble. The President has no power to carry out such threats and the reports must have been exaggerated and misleading. Among the provisions of the constitution that are considered significant and "advanced" are these: Prohibition of stock watering, and publicity, with official inspection, for all corporations. Corporations cannot deal in real estate outside of incorporated cities. Railroads may not own or operate any other productive enterprises (coal mines, oil wells, etc., for example). An elective railway commission is created. Passenger fares must not exceed 2 cents a mile. Direct primary nominations for all state officers, and nominations of federal Senators at the primaries. No incumbent in any state office to succeed himself. Creation of commissions on labor and arbitration, charities, agriculture, insurance, mines, etc. A strong employers' liability clause. Woman suffrage in school elections, but in no others. The establishment of the Referendum and the Initiative on the Oregon model. There are other articles in the constitution which illustrate the trend of political and social thought in the country. The people of the two territories will vote on this organic charter on August 6. It will undoubtedly be ratified, and the new state will start upon its independent career with the good wishes of the whole country. Even conservatives wish some of the modern ideas to be given a practical trial somewhere. & The Railroad Unrest and the Government Unforeseen developments of a remarkable character have followed the enactment by Congress under the President's guidance and pressure, of the "rate" act, the act limiting the hours of labor of train men and telegraph operators despatching or signalling trains, and the act doing away with the fellow-servant doctrine in accidents on railroads resulting in injury to employes. The railroads, after fighting and condemning these acts, seemed to bow to the inevitable. A few leading men in the industry even admitted that the legislation had done good and would conduce to prosperity and stability. It was recognized that rebating and discrimination and the free-pass abuse had resulted in much harm; that the accident problem was too serious to be neglected, and that stock manipulation and juggling with railroad values and securities in the name of "finance" needed to be curbed. At the same time, however, "warnings" were sounded by railway men in regard to the effects of the agitation on the credit of the transportation companies and on the disposition of the investors to buy railroad bonds and stocks. The railroads needed new capital for improvements, extensions, new trackage, and the money was not forthcoming. Some roads succeeded in floating loans in France, but even there it was said American railroad securities were regarded with some distrust. It was necessary to restore confidence, it was said, to induce investors to put their savings in railroad bonds, but no definite specific suggestions were made as to how this should be done. Then came a "flood" of bills in the state legislatures dealing with the railroad question. Many were rate-reduction bills (2-cent fare bills), some had to do with the supply of cars to shippers, others established commissions to regulate state lines, and still others were concerned with capitalization. In Missouri, Nebraska, Indiana and elsewhere 2-cent-a-mile fare bills were speedily enacted into law. In Wisconsin the railroad commission ordered fares reduced from 3 to 21⁄2 cents a mile. The railroad managers, who had been objecting to federal regulation and invoking "state rights" at once shifted ground and raised the cry of "danger" and "confiscation." Some began to appeal to Washington for relief, and interviews, speeches, statements followed in which coöperation of the railroads with the President was proposed, provided he would, in some way, "stop the legislatures." Conferences at the White House were suggested; individual bankers and railroad men visited the President to discuss possible means of checking the "flood" and saving the railroads. A sudden stock panic in Wall street, which caused railroad "values" to shrink to an extent that invloved an aggregate loss of $300,000,000 (according to some esti mates) lent emphasis to all this agitation against agitation. The railroad securities soon recovered at least 50 per cent of the loss, and business at large was not in the least affected by the Wall street disturbance. The "crisis" is over for the present, but several lessons have been learned meantime. As the Wall Street Journal said: The very federal power which they [the railroads] formerly feared now appeared as an ark of refuge. Instead now of invoking the power of the state against the federal authority, they cry aloud to the federal authority to save them from the states. Nothing more extraordinary than this has happened in the recent history of the United States. Moreover, it may be said that the railroads are well within their rights in calling for the protection of the federal government. If the federal power is imposed upon them for the purpose of protecting the shipper and the consumer against the rebate, the secret rate and the corrupting pass, certainly the railroads have the right to demand that this same federal authority shall protect them against threatening confiscation. President Roosevelt's policy has received a magnificent vindication, while the railroads are discovering that the very power which they most feared is now the one from which they are most likely to obtain protection. There will be additional railroad legislation, federal and state; but it will be legislation directed against abuses, stock-gambling, inflation and "high finance." President Roosevelt, Governors Hughes (New York), and Deneen (Illinois) are advocating legislation to prevent stock watering and provide control of railroad finance. Public opinion is in favor of such legislation, for it is not only just but protective of the interests of investors and shippers and promotive of the confidence, stability and security that the railroads need. Against hasty, unreasonable rate-reduction legislation there has been something of a public reaction. However, the courts will have the last word in all matters of railway legislation, and of course "confiscation" is only a bugbear. The real problem is the establishment of just conditions that will warrant and produce stability and security. |