1906 PROVISIONAL GOVERNMENT FOR CUBA Interest in the Panama Canal centered in the question as to whether the Canal should be a sea-level one, or a lock canal. Congress finally decided upon the lock type of canal, largely on account of the saving of time in the completion of the Canal, as well as the lesser cost of construction. The Cuban Republic, which had started so auspiciously, showed great weakness in national character, a weakness in self-government. An incipient rebellion, following President Palma's re-election, broke out, and soon grew beyond the power of the government to suppress. President Roosevelt sent Mr. Taft, the Secretary of War, to Havana to bring about, if possible, a compromise between the opposing political parties. Neither side, however, was willing to grant concessions, and President Palma was forced to resign, and his followers, the Moderate Party, refused to aid in filling the vacancy. Cuba was left without a government, whereupon President Roosevelt appointed Mr. Taft Provisional Governor. Mr. Taft was soon succeeded by Mr. Charles E. Magoon, former Governor of the Panama Canal Zone. The traditional friendship of Japan and the United States came nearly to the breaking point by the Anti-Japanese Agitation on the Pacific Coast. Another race question made prominent during the year was caused by the alleged riots of the negro troops of the Twenty-fifth Infantry stationed at Brownsville, Texas. They were accused of firing into houses and upon citizens at night, and the President discharged all the men of three companies without honor. Among the deaths of notabilities during the year 1906 may be noted Marshall Field, aged 70, merchant and multimillionaire, January 17; Nathaniel S. Shaler, geologist and Dean of Lawrence Scientific School, Harvard University, April 10; Carl Schurz, statesman, author, and journalist, May 14; Adelaide Ristori, one of the world's greatest actresses, October 9; and Samuel Spencer, railroad president and capitalist, November 29. At the opening of the year 1907 almost every branch of productive industry showed great gains, and new records were made for crop production when their value reached the amount of $7,400,000,000, unprecedented in the world's history. A reaction was at hand. Its first effects were felt in Wall Street when stocks, after reaching extravagantly high prices in December, 1906, began to steadily tumble in prices. By May 25 there was a decided fall in prices of all stock. August 24 brought a small-sized panic which culminated in a panic of great proportions on October 24. Before the end of the week the banks of the leading cities of the country had practically suspended cash payments, New York setting the example of issuing clearing house certificates for the settlement of bank balances, and the rest of the country quickly followed her example. Railroad securities were weak, bonds unsalable, and money to replace equipment almost impossible to procure. The Interstate Commerce Commission was active in carrying on an investigation which showed how Mr. E. H. Harriman had gained control of the greater part of the transportation service of the Western half of the Continent, and incidentally how the wrecking of the Chicago and Alton Railroad had been accomplished. Public confidence in corporate management was further disturbed by the exposure before the New York Public Service Commission of the looting of the street railway system in New York City. In Chicago Judge Landis imposed the enormous fine of $29,240,000 on the Standard Oil Company of Indiana for rebating. 1907 OKLAHOMA ADMITTED TO STATEHOOD Service pensions for Civil War Veterans were granted by Congress. The salaries of the Vice-President, Cabinet, Senators and Representatives were raised by Congress, and an effort was also made to raise the salary of the President to $75,000. The measure failed to pass, but was afterward passed in the second session of the 60th Congress (1909). That California and the Pacific Coast were not alone in opposition to Japanese immigration was strikingly shown by the Anti-Asiatic riots at Vancouver, British Columbia, where Japanese, Chinese, and Hindus were impartially attacked. It became evident that arrangements would have to be made for restricting Japanese emigration to Canada. Having made this concession to her ally, Great Britain, Japan was forced to make the same concessions to the United States. 1907 saw the new State of Oklahoma finally admitted to the Union, the proclamation being signed by the President on November 16. The first election showed the State to be strongly Democratic, that party electing the entire State ticket, four out of five Representatives in Congress, and the Legislature elected two Democratic United States Senators. The Isthmian Canal, since its commencement, had suffered from almost constant changes in the managing head or director. No sooner had one set of officials begun to achieve good results in the work than a change occurred by resignation of the directing head of affairs, and 1907 saw a repetition of this unfortunate procedure. Mr. Theodore Shonts, chairman of the Isthmian Canal Commission, resigned his position on March 4, and the rest of the Commission resigned during the following month. His successor, the former Chief Engineer, Mr. John F. Stevens, also soon severed his connection with the Canal. The President now determined to turn the Canal over to the army PANAMA CANAL IN CHARGE OF ARMY 1907 and selected a new commission from the army and navy, and placed at its head Lieutenant-Colonel George C. Goethals of the Army Engineer Corps, as chairman and chief engineer. The move proved a good one and work on the Canal progressed at a faster rate, and a better era dawned for the undertaking now that a firm and stable organization had at last been effected. The year 1907 was noted for the efforts of President Roosevelt to establish better relations and a more friendly understanding with the great republics of South and Central America. Secretary Root supplemented his last year's circumnavigation of South America by visits to Mexico. Secretary Taft in March and April visited Cuba, Porto Rico and Panama. He later visited the Philippines and returned by way of Japan and Russia. The Philippine Assembly which Mr. Taft opened October 16 was the first fully representative legislature of an Asiatic Colony. At home the year was notable as being the three hundredth anniversary of the founding of Jamestown, Va., the first permanent English settlement within the present limits of the United States. The attention of the whole country was directed upon the struggle in San Francisco for its freedom from corrupt city government. Confessions of bribery were extorted from almost all the members of the Board of Supervisors. Mayor Schmitz was convicted and sentenced to imprisonment, and a citizen of high character, Edward R. Taylor, was chosen by the Supervisors to fill out his term. Later Dr. Taylor was elected for a new term and the regeneration of the city government was completed by the election of a new Board of Supervisors. A case that excited wide-spread interest was the trial of William D. Haywood, secretary and treasurer of the Western Federation of Miners, on a charge of complicity in the murder 1907 MOYER-HAYWOOD TRIAL of Ex-Governor Frank Steunenberg of Idaho, who had been killed by a bomb in front of his home on December 30, 1905. Haywood had been secretly arrested along with Charles H. Moyer, President of the Federation, and George A. Pettibone, of the Executive Committee. The actual murderer, one Harry Orchard, confessed an astonishing series of crimes and swore that the accused officials of the Federation had hired him to commit them. But without direct corroborative evidence Haywood was acquitted. Sweden lost her ruler during the year. King Oscar II died December 8, and was succeeded by his son, who took the title of Gustaf V. The Hague Peace Congress convened June 15 and continued its sessions until October 19. Forty-five nations were represented and the Congress succeeded in reaching a number of definite decisions. The attempt to secure the acceptance of the principle of obligatory arbitration did not succeed. The principles of the Geneva Convention were applied to naval war; all postal correspondence by sea was exempted from capture and an international prize court was established. The opposition of Great Britain and some other naval powers prevented the adoption of the American proposal for the immunity of all private property at sea. The Czar of Russia tried his second experiment in parliamentary government in March. The Duma which met on the 5th proved as radical as had its predecessor. It had at first the support of Premier Stolypin, but when an alleged plot to assassinate the Czar was discovered in May the Premier had to choose between the reactionary clique and the people's representatives. He took a sharp tone towards the Duma and finally on June 13 surrounded the parliamentary building with troops and demanded the immediate exclusion of the Socialistic party. The Duma declining to act, the |