The Washington herald., 1908-05-14
Would Do Away with the
Commodity Clause.
THINKS IT CAUSED PANIC
Ohio Senator Recalls His Predictions
Of Two Years Aso-BaiIey Reproves
Him and Declares that If President
Agreed to Suspend Clause He
Ought to BE Impeaehed.

the central figures Of an interesting de-
bate.
Mr. Foraker reminded his colleagues
that the troubles they were having now
on account Of the commodity clause could
have been avoided If they had followed
bis advice at the time the rate aIw was
passed.
II don't want TO appear here as an I
told you So. a." remarked Mr.. Foraker.
THAT would be ungracious But the
commodity clause should never have been
passed. I said so two years ago. was
the only one to vote that way. For two
years It has been menace. IL the ad-
ministration we're to enforce the law now.
It would be disastrous.
Something ought to be done, and Con-
gress is the only power that can suspend
an act Of Congress. The right thing to
have done two years ago is the right
thing 10 do now. We know now that this
law should never have been passed. We
ought 10 retrace cur steps
Thinks Law Bad One.
Mr. Foraker explained that two years
ago the Senate seemed TO be swept away
by the popular demand TO legislate
against the railroaJs.
The fact that vested rights and prop
ence. apparently" said the Senator. we
couldn't come 10 our senses then: let US
return to them now"
The Senator said the panic was the
logical result of such ill-cOnsidered legis-
iati0n as the commodity clause. He ex-
planned that ther ailroads fifty years
ago received charters which permitted
them to engage in the c0al-caTrying and
mining business. They had developed the
country. Their property had been bonded.
and the bonds were held in Europe. IN
the bonds were a clause which provided
that none Of the property so bonded
should be disposed Of without the con-
/ sent OF the bondhoiders. AS soon as the
holders Of our securities understood that
such legislation was under way they de-
clded 10 convert our securities into cash.
| and invest in other things that were more
/ secure.
Declares Ii Caused Panic.
They returned the securities TO US -
said the Senator. They sent them back
/ In amounts larger than we could absorb.
/ The panic has been given as a reason
/ why the railroads could not separate
/ themselves from their coal properties.
/ Why any thoughtful man could have
/ failed to see a panic as the result of
such legislation as the commodity clause
is more than I can understand.
/ Mr.. Foraker proposed an amendment
I to the commodity clause, which he said
would remedy the evil complained Of, and
/ at the same time be more practical
legislation than authorizing the violation
ot law BY legislative permit He pro-
posed that the commodity clause be
amended so that It should not appy TO
any mining properties or commodity
producing properties acquired before the
passage OF the rate law. This. he said
would respect vester rights and at the
same tine would prevent the carriers
from enlarging their holdings.
Senator Bailey. who followed Mr Fora
ker. suggested that the latter's speech
/ sounded Ike Republican speeches OF
twelve years ago
Tt is not the kind Of speeches we have
been hearing under the present admins
tratiOn" said Mr. Bailey. IF il did not
have the same ring as the speeches made
by the Senator two years ago I would
conclude that the Republican party was
taking a reacjionaTy course"
Mr.. Bailey declared that the panic had
proved one thing-that panies could oc-
cur under a Republican administration.
Believes I'm Old Policy.
But probably the Senator from Ohio
would contend that this is not a Repubn-
can administration"
THE Senator paid me the compliment,
said Mr. Foraker, that my speech was
like the Republican speeches Of twelve
years ago. That is the kind of a RepubH.
can 1 am, and that is the kind OF speech
I always make, the old-time kind. WheI
such speeches were made we had NJ
panics. said Mr. Foraker.
Mr.. Bailey reminded the Republican,
that they had a great depression unde
President Harrison, which was the caus,
OF Democratic success in 1892. It's con
tnuation and the things that were don
under Mr. Cleveland brought the Re
publieans back into power in 1896.
You are facing much the same condi
tlons In your party now that We had {,
, meet in 1896 ," said the Texas Senator, ad
dressing the Republicans. You are hope
lessly divided. and If you do not disagrel
with one another here, you are IN tota
disagreement with your Executive. ",
will see If you can get 20 gether aid pre-
sent solid front at the polls. YoI hav,
made a fairly successful effort at gdtinl
together here to-day" (Referring e tn
Brownsville agreement) But I vii
g. serve notice on you now that you cafnO
prevent the next Republican national ION
, vention from endorsing Roosevelts pli
cies.
Gives Bailey n Poser.
VIII the Senator tell me" asked Ar
Foraker. If he thinks he will be all,
to prevent the Democratic conventid
from indorsing them?''
! This evidently pleased the ReDublican.