Part 21

I have directed that all possible speed be made in connecting the Matanuska coal fields with Seward. This involves the heaviest construction that we will have to undertake, which is along Turnagain Ann, but by the middle of next year, no strikes intervening, and transportation for supplies being available, this part of the work should be done. Faithfully and cordially yours,

FRANKLIN K. LANE

In Lane's Annual REPORT OF THE SECRETARY OF THE INTERIOR, dated November 20, 1919, he writes of the Alaskan railroad enterprise:-- "One of the first recommendations made by me in my report of seven years ago was that the Government build a railroad from Seward to Fairbanks in Alaska. Five years ago you intrusted to me the direction of this work. The road is now more than two-thirds built and Congress at this session after exhaustively examining into the work has authorized an additional appropriation sufficient for its completion. The showing made before Congress was that the road had been built without graft; every dollar has gone into actual work or material. It has been built without giving profits to any large contractors, for it has been constructed entirely by small contractors or by day's labor. It has been built without touch of politics; every man on the road has been chosen exclusively for ability and experience."

This memorandum touching the early history of Alaska was found in Lane's files.

MANUSCRIPT NOTE

Washington, December 29, 1911

Last night I dined with Charles Henry Butler, reporter for the Supreme Court and a son of William Alien Butler, for so long a leader of the New York bar.

In the course of the evening Mr. Charles Glover, President of the Riggs National Bank, told me this bit of history. That when he was a boy, in the bank one day Mr. Cochran came to him and handed him two warrants upon the United States Treasury, one for $1,400,000. and the other for $5,800,000. He said, "Put those in the safe." Mr. Glover did so, and they remained there for a week, when they were sent to New York. Mr., Glover said "These warrants were the payment of Russia for the Territory of Alaska. Why were there two warrants? I never knew until some years later, when I learned the story from Senator Dawes, who said that prior to the war, there had been some negotiations between the United States and Russia for the purchase of Alaska, and the price of $1,400,000. was agreed upon. In fact this was the amount that Russia asked for this great territory, which was regarded as nothing more than a barren field of ice.

"During the war the matter lay dormant. We had more territory than we could take care of. When England, however, began to manifest her friendly disposition toward the Confederacy, and we learned from Europe that England and France were carrying on negotiations for the recognition of the Southern States, and possibly of some manifestation by their fleets against the blockade which we had instituted, (and which they claimed was not effective and merely a paper blockade), we looked about for a friend, and Russia was the only European country upon whose friendship we could rely. Thereupon Secretary Seward secured from Russia a demonstration, in American ports, of Russian friendship. Her ships of war sailed to both of our coasts, the Atlantic and Pacific, with the understanding that the expense of this demonstration should be met by the United States, out of the contingent fund. It was to be a secret matter. "The war came to a close, and immediately thereafter Lincoln was assassinated and the administration changed. It was no longer possible to pay for this demonstration, secretly, under the excuse of war, but a way was found for paying Russia through the purchase of Alaska. The warrant for $1,400,000. was the warrant for the purchase of Alaska, the warrant for $5,800,000. was for Russia's expenses in her naval demonstration in our behalf, but history only knows the fact that the United States paid $7,200,000. for this territory, which is now demonstrated to be one of the richest portions of the earth in mineral deposits."

TO HON. WOODROW WILSON

THE WHITE HOUSE

Washington, November 3, 1917

MY DEAR MR. PRESIDENT,--On April 7, 1917, the Council of National Defense adopted a report, submitted by the Chairman of the Executive Committee on Labor of the Advisory Commission of the Council, urging that no change in existing standards be made during the war, by either employers or employees, except with the approval of the Council of National Defense. ...

The next step for producing efficiency must be no strikes.

The annual convention of the American Federation of Labor, consisting of international unions, will be held at Buffalo on November 12th. I would urge that about thirty executives of the unions, which more directly control essential war production, be invited to confer with you prior to that date, to determine on a policy which will prevent the constant interruption of production for war purposes. The Commissioners of Conciliation of the Department of Labor and the President's Commission have a wonderful record of accomplishments for settling strikes after they have occurred. Organized labor should give the Government the opportunity to adjust controversies before strikes occur.

At this conference it could safely be made plain that for the war, employers would agree not to object to the peaceable extension of trade unionism; that they would make no efforts to "open" a "closed shop"; that they would submit all controversies concerning standards, including wages and lockouts, to any official body on which they have equal representation with labor, and would abide by its decisions; that they would adhere strictly to health and safety laws, and laws concerning woman and child labor; that they would not lower prices now in force for piece work, except by Government direction; that if a union in a "closed" shop after due notice was unable to furnish sufficient workers, any non-union employees taken on would be the first to be dismissed on the contraction of business, and the shop restored to its previous "closed" status; that the only barrier in the way of steady production is the unwillingness of the unions to uphold the proposition of settlement before a strike, instead of after a strike.

The imminence of this convention seems to me to make some step necessary at this time. I would take the matter up with Secretary Wilson were he here, and have sent a copy of this letter to him. You undoubtedly can put an end to this most serious situation by calling on the international labor leaders to take a stand that will not be so radical as that taken in England, and yet will insure to the men good wages and good conditions, and make sure that our industry will not be paralyzed. Cordially yours,

FRANKLIN K. LANE

TO J. O'H. COSGRAVE NEW YORK WORLD

Washington, December 21, 1917

MY DEAR JACK,--My spirit does not permit me to give you an interview on the moral benefits of the war. This would be sheer camouflage. Of course, we will get some good out of it, and we will learn some efficiency--if that is a moral benefit--and a purer sense of nationalism. But the war will degrade us. That is the plain fact, make sheer brutes out of us, because we will have to descend to the methods that the Germans employ.

So you must go somewhere else for your uplift stuff. Cordially yours,

FRANKLIN E. LANE

X

CABINET NOTES IN WAR-TIME

1918

Notes on Cabinet Meetings--School Gardens--A Democracy Lacks Foresight--Use of National Resources--Washington in War-time--The Sacrifice of War--Farms for Soldiers

NOTES ON CABINET MEETINGS

FOUND IN LANE'S FILES

February 25, 1918

As I entered the building this morning Dr. Parsons [Footnote: Of the Department of the Interior, Bureau of Mines.] met me. I asked how the cyanide plant was getting on. His reply was to ask if he might request the War Department to allow us to make the contract --that he could have the whole thing done in two days. This is where we are at the end of more than six months of effort. It is hopeless! We find the process, everything!--but cannot get the contract, through the intricate, infinite fault-findings and negligence of the War Department.

Manning [Footnote: Of the Department of the Interior, Bureau of Mines.] came to see me to say that he expected, after the Overman bill was passed, that the President would take over the gas work-- order it into the War Department. He had been asked twice if he could be tempted by a uniform into that Department, and had said that he was freer as a civilian,--had planned the work and gathered the force as a civilian, and would not leave the Department. He felt damned sore and indignant, that a work so well done should be the subject of envy, and possibly be made less effective and useful. ...

Everit Macy lunched with me and told me the sad story of the mishandling of labor affairs by the Shipping Board. He had gone to the Pacific Coast and with his colleagues, Coolidge and others, made an agreement with the shipbuilding trades. Five dollars and twenty-five cents for machinists, etc. In Seattle, however, because of one firm's bidding for labor, he felt that there would have to come a strike before this schedule would be accepted. Before he got back the threatened strike came, and then the demand of the men for a ten per cent bonus was acceded to, upsetting all other settlements in San Francisco, Portland, Los Angeles, etc. Result, ten per cent gain everywhere. And now the Eastern and Southern men ask the Pacific scale, and he can't see how it can be avoided, nor can I. They will have to standardize all wages.

Poor chap, his advice was scorned, for he protested against the bonus being given to Seattle, and as he said, "If it had not been war-time I would have resigned." To increase the men in the South, to this unprecedented scale, will not get more ships, he fears, but less, for they will not work if they have wages in four days, equal to seven days' needs. I advised for standardization. He said the Navy wouldn't hear of it, as it would demoralize their yards. ...

Politics, politics, curse of the country! It has gotten into the whole war program. Hoover and McAdoo are at swords drawn. Hoover had a cable signed by the three Premiers, George, Clemenceau, and Orlando, crying for wheat and charging us with not keeping our word--and starvation threatening all three countries--in fact, almost sure, because we have not been able to get the wheat to the ships; and with starvation will come revolution, if it gets bad enough. ... I asked Hoover about this on Sunday night, ... and he said that a list of eight hundred cars had been on McAdoo's desk FOR A WEEK. ...

(McChord said on the bench [Footnote: The Interstate Commerce Commission.] to-day that he thought Hoover seventy-five per cent right.)

March 1, [1918]

Yesterday, at Cabinet meeting, we had the first real talk on the war in weeks, yes, in months! Burleson brought up the matter of Russia, ... would we support Japan in taking Siberia, or even Vladivostock? Should we join Japan actively--in force?

The President said "No," for the very practical reason that we had no ships. We had difficulty in providing for our men in France and for our Allies, (the President never uses this word, saying that we are not "allies"). How hopeless it would be to carry everything seven or eight thousand miles--not only men and munitions, but food!--for Japan has none to spare, and none we could eat. Her men feed on rice and smoked fish, and she raises nothing we would want. Nor could the country support us. So there was an end of talking of an American force in Siberia! Yes, we were needed-- perhaps as a guarantee of good faith on Japan's part that she would not go too far, nor stay too long. But we would not do it. And besides, Russia would not like it, therefore we must keep hands off and let Japan take the blame and the responsibility.

The question is not simple, for Russia will say that we threw her to Japan, and possibly she would rush into Germany's arms as the lesser of evils. My single word of caution was to so act that Russia, when she "came back," should not hate us, for there was our new land for development--Siberia--and we should have front place at that table, if we did not let our fears and our hatred and our contempt get away with us now.

Daniels whispered to-day that Russia had five fast cruisers in the Baltic, which could raid the Atlantic and put our ships off the sea. He had wired Sims to see if they couldn't be sunk. I hope it is not too late; surely England must have done something on so important a matter, though she is slow in thinking. And how is anyone to get there with the Baltic full of submarines and mines! The thought is horrible, the possibilities! We certainly have made a bad fist of things Russian from the start. They have deserted us because they were trying to drive the cart ahead of the horse, economical revolution before political revolution, socialism ahead of liberty with law. And they know we are capitalistic, because we do not approve of socialism by force.

March 12, (1918)

Nothing talked of at Cabinet that would interest a nation, a family, or a child. No talk of the war. No talk of Russia or Japan. Talk by McAdoo about some bills in Congress, by the President about giving the veterans of the Spanish war leave, with pay, to attend their annual encampment. And he treated this seriously as if it were a matter of first importance! No word from Baker nor mention of his mission or his doings. ...

TO FRANKLIN K. LANE, JR.

SOMEWHERE IN FRANCE

Washington, February 15, 1918

MY DEAR BOY,--... We are anxiously awaiting some word telling where you are, what you are doing, and how you got on in your trip. I thought your cablegram was a model of condensation, quite like that of Caesar, "Veni, vidi, vici." ...

Sergeant Empey has just left the office with a letter to the Secretary of War, asking that he be given a commission. He has been lecturing among the cantonments and wants to get back to France. ... He says that the boys in the cantonments are anxious to go across, and that they are beginning to criticise us because they do not have their chance. But they will all get there soon enough for them. Our national problem is to get ships to carry them, and to carry the food for the Allies. ... We have undertaken to supply a certain amount of food to the other side, and our contract, so far, has not been fulfilled. During December and January, however, this was, of course, due to railroad conditions.

You are a long way off, but you must not visualize the distance. Nothing so breaks the spirit as to dwell upon unfortunate facts. Some one day or another you had to leave the nest, and this is your day for flying. Wherever you are, with people whose language you understand only imperfectly, with a civilization that is somewhat strange, and under conditions that often-times will be trying, don't adopt the usual attitude of the American in a foreign country and wonder "why the damn fools don't speak English." No doubt some of the French will pity you because of your delinquency in their language.

Another thing that differentiates us from other people is our lavishness in expenditure, and in what appears to us to be their "nearness." ... From these same thrifty French have come great things. They have always been great soldiers; they have led the world in the arts, especially in poetry, painting and fiction-- perhaps, too, I should add architecture. So that men who are careful of their pennies are not necessarily small in their minds. ...

I have less doubt, however, of your ability to get on with the Frenchman than I have with the Englishman. ... You will have difficulty--at least I should--in understanding the rather heavy, sober, non-humorous Englishman. ... He is always a self-important gentleman who regards England as having spoken pretty much the last word in all things, and who will abuse his own country, his countrymen, and institutions, frankly and with abandon, but will allow no one else this liberty. He is not a "quitter" though, and he has done his bit through the centuries for the making of the world.

... See as many people as you can, present all your letters, accept invitations. Remember that while you are there and we miss you, we are not spending our time in moping. Every night we go to dinner and we chatter with the rest of the magpies, as if the world were free from suffering. Last night I talked with Paderewski for an hour on the sorrows of Poland, and it was one long tale of horror. ...

To-day the Russians are calling their people back to arms to stop the oncoming Germans. Foolish, foolish idealists who believed that they could establish what they call an economic democracy, without being willing to support their ideal in modern fashion by force. The best of things can not live unless they are fought for, and while I do not think that their socialism was the best of anything, it was their dream. ... With much love, my dear boy, your DAD

To George W. Lane February 16, 1918

MY DEAR GEORGE,--... Things are going much better with the War Department. My expectation is that this war will resolve itself into three things, in this order:--ships for food, aeroplanes, big guns. We must, as you know, do all that we can to keep up the morale of our own people. There is a considerable percentage of pacifists, and of the weak-hearted ones, who would like to have a peace now upon any terms, but the treatment that Russia is receiving, after she had thrown down her arms, indicates what may be expected by any nation that quits now.

... The prospects for democratization of Germany is not as good as it was a year ago, when we came in, because of their success in arms due to Russia's debacle. The people will not overthrow a government which is successful, nor will they be inclined to desert a system which adds to Germany's glory. It is a fight, a long fight, a fight of tremendous sacrifice, that we are in for. I said a year ago that it would be two years. Then I thought that Russia would put up some kind of front. Now I say two years from this time and possibly a great deal longer. Lord Northcliffe thinks four or six or eight years.

Ned writes me that things are very gloomy and glum in England and in Ireland, where he has been. He was out in an air raid, in several of them, in London, not up in the air, but from the ground could see no trace of the airships that were dropping bombs on the town. The Germans seem to have discovered some way by which they can tell where they are without being able to see the lights of the city, for now they have bombarded Paris when it was protected, on a dark night, by a blanket of fog, and London also under the same conditions. The compass is not much good, the deviations are so great. It may be that the clever Huns have found some way of piloting themselves surely. We are starting two campaigns through the Bureau of Education which may interest you. One is for school gardens. To have the children organized, each one to plant a garden. The plan is to raise vegetables which will save things that can be sent over to the armies, and also give the children a sense of being in the war. Another thing we are trying to do is educate the foreign born and the native born who cannot read or write English. If you are interested in either of these two things we will send you literature, and you can name your own district, and we will put you at work. ...

Well, my dear fellow, I long very much for the sun and the sweetness of California these days, but I could not enjoy myself if I were there, because I am at such tension that I must be doing every day. Do write me often, even though I do not answer. Affectionately yours,

FRANKLIN K. LANE

TO ALBERT SHAW

REVIEW OF REVIEWS

Washington, March 7, 1918

MY DEAR DR. SHAW,--I have your letter of March 4th. The thing that a democracy is short on is foresight. We do not have enough men like the General Staff in Germany who can think ten and twenty years ahead. We are too much embedded and incrusted in the things that flow around us during the day, and think too little of the future.

For five, long, weary years, I have been agitating for the use of the water powers of the United States. We estimate the unused power in tens and tens of millions of horse-power. Right in New York you have in the Erie Canal 150,000 horse-power, and on the Niagara river you have probably a million unused. If you had a great dam across the river below the rapids we should have water power in chains, like fire horses in their stalls, that could be brought out at the time of need. But we are thinking in large figures these days, and while we used to be afraid to ask for a few hundred thousand dollars we now talk in millions, and some day we may realize that to put the cost of a week's war into power plants in the United States would be money well invested. ...

We have no law under which private capital feels justified in investing a dollar in a water power plant where public lands are involved, because the permit granted is revokable at the pleasure of the Secretary of the Interior, and capital does not enjoy the prospect of making its future returns dependent upon the good digestion of the Secretary. But if we get this bill, which I enclose, through, we will be able to handle the powers on all streams on the public lands and forests and on all navigable waters, and give assurance to capital that it will be well taken care of if it makes the investment. ...

I am greatly pleased at the kind things you say about me. The longer I am in office the more of an appetite I have for such food. Hoover [Footnote: Hoover at this time was Food Administrator.] can only commit one fatal mistake--to declare a taflfyless day. Cordially yours,

FRANKLIN K. LANE

To Edward J. Wheeler on February 1, 1917, he had written:--