The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-02-23
WHY GAGE RESIGNED
Francis E. Leupp Gives the Reason-HoW
Shaw Was Chosen to Succeed Him-The
President Picked the Iowa Man More
by Intuition Than Judgment, but Could
Not Have Done Better.

|
Washington, Feb. 22.-For the first time
the true story of the retirement from the
Roosevelt cabinet of Secretary Gage has
been told. Francis g. Leupp devotes sew
eral pages to it in his book, THE Man
Roosevelt and then tells how the presi-
dent came to select Shaw as Gage s. sue!
cessor. The story will be Of a good deal
of interest to many people in the middle
west, where both men are SO well known.
and it is fortunate that Mr.. Leupp, who
is conversant with all the particulars, has
been given an opportunity to give them to-
the public in permanent form, for the
amount of misunderstanding and dellber-
ate misrepresentation accompanying the
Gage resignation and the Shaw appoint
ment has been enormous
1t is true, Mr.. IIeupp says, that there
was a slight friction between the presi-
dent and Secretary Gage, growing out of
the habit which the president had cultl-
waited of going over the secretarys head
and consulting treasury officials direct
when he wanted certain information from
that department. This habit was destruc-
tive of proper departmental discipline, and
more than once it placed the secretary IN
rather an awkward position before Ger
tain of his SubOrdina ties. But this did not
lead to the secretary's retirement altho
Mr. I4eupp admits that it possibly was: a
be said that the president has profted by
his experience along this line, and now
when he wants informa ton from one OF the
great federal departments he, secures it
thru the head of that department.
Cages retirement was perhaps fastened
by the presidents action in dropping Bid
we'll as collector of customs in New York
and appointing sStranahan in his stead
And vet even this. added +tee the presl-
dents irregularitY in going over the sec
retary's head for departmental informa-
ton, did not entirely explain the resigna-
ton. In giving the controlling reason
which led to the secretary's retirement,
Mr.. Leupp says:
The Real Reason. 4
srrhe secretary was at the zenith of his
prestige as financier; his name was as
bourse in the world. No higher honofs
were within his reach. Withal he was ad-
vancing in years and nearing the crest
from which all roads lead downward. The
business Of the country, unless the les
| sons Of the past were misleading, was
soon to enter the period Of liquidation
which surely follows an era of uncommon
prosperity To use his homely phrase.
| when that time comes, I'm willing to let
some other fellow walk the floor If,
therefore, Mr.. Gage. We're to return to
private life while still in condition to take
| q part Ill It's dCC1ViLlSS, llle LILLE
to do SO seemed to be at hand. A dozen
most fattering opportunities lay open be-
fore him. One of these he presently de-
cided to accept, having first placed his
resignation in the presidents hands and
asked to be released not later than a GER
tain date. The president had urged him
! to remain, but, finding the secretary's re-
solve unalterable, yielded to his request.
"Not an unpleasant word passed be-
tween the two men at any stage of their
relations. Tie president knew Mr.. Cages
value, but recognized the wide difference
in their training and the irreconcilable
variance of their points Of view on certain
matters Mr.. Gage, tho disagreeing with
| the president in more than one opinion
and realizing the essential antagonism Of
their methods, cherished only admiration
Of his young chiefs character and wished
him every success.
Shaw's Appointment.
The story Of Shaws appointment a!
secretary of the treasury, and the events
leading up to it, is characteristic of bot1
| Roosevelt and Shaw. Shaw was a lawyer
Ia inancier. When first mentioned a!
likely to succeed Gage he probably wa
unknown to nine of every ten readers Q
the public prints in the country, outside Q
Iowa. The president himself did no
know him on the business side, but onl.
i
politics. They had met a few times Will
Roosevelt was making one of his cam
paign dashes thru the upper Mississippi
valley; all the rest Of their impressions Q
> each other were absorbed from the at
mosphere and an occasional anecdote.
Early in life Shaw left Vermont, hi
native state. and went to Iowa, where h
studied law and was admitted to the bal
Practice was not profitable, and he wa
not long in determining that he could nc
depend upon it alone for a livelihood.
: IA visit to his old home,' says Nj
7 Leupp, suggested a plan. The farm
there were pretty well worn out, an
mortgagors could not afford to pay NOR
5 than or per cent inteest1 on thei
t loans; at that low rate, indeed, they ofte
: found themselves unable to keep up, an
! stories of foreclosure, encouragement an
: removal were to be heard on every hant
l But in Iowa behold the difference; ric
} !, SOIL heavy crops, well packed granarie
: a thrifty, contented farming population
and yet loans on farm mortgages com
manding s and 10 per cent.
: Zone bright morning young Shaw awoA
:. with a start. Why said he, should
mot take some of the eastern capital whic
J is going begging at and per cent, an
z clap it into Iowa mortgages which wi
= gladly yield and 10 per cent, and peck,
s half the difference as my commission?
e.'It did not take him long to put tn
!. ingenious scheme into execution.
: worked like charm. Without ceasing
d be a lawyer, he became also a banke
making Iowa mortgages his specially. II
western friends were delighted to have Il
. means Of charging their borders, putin
}. Iup additional buildings, buying new m;
!, chinery. His eastern friends were d
lighted at the increase Of their revenue
: His firm made money hand over fist.
e From Business to Politics.
Then came the threatening signs. i r
n peated crop failures paralyzed the ar
h of Kansas. The farmers alliance begs