The Washington times., 1907-12-31
SECRETARY TAFT
DEFENDS POLICY
Of PRESIDENT
Outlines Causes of Re-
cent Panic in Speech
AT Boston.
Fails to Make Announce
ment of Candidacy for
Presidency,

Presidency,
BOSTON, Mass, Dec. SL-Vigorously
defending President Roosevelt and the
Administration, so far as any respon-
sibillty for the recent panic Is con-
cerned. but refraining from a discussion
OF his own candidacy. Secretary William
II. Taft last night addressed the Boston
Merchants Association.
Secretary Taft was introduced by
Jerome Jones, president Of the associa-
ton. AS he arose to respond all the
guests stood with him and responded
wildly when a toast was proposed.
Three cheers for Secretary TAFT the
next President OF the United States"
Makes No Announcement.
Those who expected Secretary Taft to
make some reference TO his candidacy.
however. were disappointed. His speech
dealt with the panic, its causes. and the
policies Of the Administration in pun
ishing evildoers. He denied that the
course of the Administration had been
directed against any save those who
were violating the laws.
In opening. Secretary Taft said that
yet suffering from the nervous ana
mental strain following the three
months panic. Continuing. he said:
The panic has been given a certain
political bearing and Importance. Fo;
this reason I have selected for my topic
Of tonight The Panic OF 1907: It's
Causes, Its Probable Effects. and the
Relation TO IL OF the Policies Of the
National Administration
The Secretary referred to the fact that
FOR eight or nine months past there had
been evidence or an approaching eX-
haustion in the Ioanable capital OF the
world, brought about by enormous buSl-
ness expansion, waste OF capital in eX-
travagant living. the Boer. Spanish and
RussO-Japanese wars and such Catas-
trophies OF those of Baltimore and San
Francisco
Violators of Laws.
He next hit at the violators Of the
law. saying:
Secondly the conclusion can not be
avoided that the revelations of irreg-
ularity, breaches Of trust, stock job
bing, overiSsues OF stock violations or
law and lack OF rigid State or national
supervision of the management of some
OF our largest insurance companies. rail-
road companies traction companies and
financial corporations. shocked investors
and made them withhold what little
lcanable capital remained available.
such disclosures had much more effect.
probably. abroad than they had here.
because here we are able to make dis
tinctions, while there, at a remote dis
tance. the revelations created distrUst
In our whole business fabric"
He referred 70 the restoration OF con
ndence and the manner in which the
Government and able hnanciers had
throw themselves into the breach He
did not believe the after-effects would
be as lasting as those following the
panics Of 1873 and 1898. the entire country
being in better condition.
For four years, he said, there had been
giant struggle in progress between
the National Administration and these
powerful combinations.
Administrations Stand.
The course of the Administration has
been directed against such organized
capital as was violating the statutes OF
the United States-and no others. 1t
had every consideration and desire to
aid and assist organized capital which
was engaged i'm legitimate business. 1t
IS true that the execution OF the policy
Of the Administration has involved the
bringing to the light of public criticism
the violation Of the law by influential
and powerful corporations and their
prosecution.
Through the investigation Of national
and State tribunals there have been
revealed, as I have already said.
breaches of trust stock-iObbIng over
issue OF stocks and mismanagement
IN some Of our largest CORPORATIONS
They have properly been severely con
demned by all including the President.
knowledge OF these things doubtless al
fccted our credit in Europe, and has
tened the panic; but those who are NOR
ally responsible for such result are the
guilty managers, not those who in the
course of their official duty. have made
known TO the business world the facts
and commented on them"
IN the fight the Secretary said, the
AdnllniStrauon had been assisted by
popular sympathy, awakened by the rev
elations brought about by the investi-
cation OF certain trusts and their meth
ods.
Opposes Government Ownership.
In his discussion Of the railway ques-
tion. the Secretary went on record as
being opposed to Government owner
ship Such a condition. he said, meant
state socialism and an increase in the
power OF the central government that
would be dangerous. The proper meth
cd, he insisted. was in regulation by put
ling them under a tribunal which will
insist on publicity in business and in
cases of complaint can direct the exact
remedy for the wrong.
In closing the Secretary said:
The Administration has been thus far
successful I'm showing that dangers from
individualism can be effectively reg1-
lated, and that abuses in the exercise OF
private property can be restrained Thus
a great conservative victory has been
won and the coming of socialism has
been stayed
In this widespread catastrophe have
the deepest sympathy with the great
body OF business men and wageeaTners
who | know ire honest and who have
10 bear the brunt OF It, and 1 feel the
greatest sOlicitude and anxiety for their |
recovery. But / urge them not to allow
their resentment at conditions 10 be
made a weapon against the public |
veal"
Representative Sherley and Senator |
Joseph =. Johnston Of Alabama were
among the speakers who made short ad- |
dresses.
Capers to Join Taft Force