Roosevelt, Theodore (1858–1919)

AS SCION of a prominent and wealthy New York family, Theodore Roosevelt was an unlikely candidate to become a corporate reformer. Roosevelt began his reform career in 1888, serving on the National Civil Service Commission, appointed by Republican Benjamin Harrison and continuing for two more years under Grover Cleveland. Under Republican Mayor William L. Strong, Roosevelt served as president of the New York City Police Commission, where he made a name for himself as a reformer, going after the department's notorious ties to criminal elements and demanding increased professionalism. He was named assistant secretary of the navy during the first William McKinley administration, but resigned to embark on his brief-[Page 701] but-exciting adventures in Cuba during the Spanish American War. Beginning training with his Rough Riders in May, he was home by August. This enhanced his public image and assured his nomination as Republican party candidate for governor of New York, provided he promised to consult the Grand Old Party (GOP) Republican machine, led by Senator Thomas C. Platt.

Roosevelt won a relatively narrow victory over his Democratic opponent. He was never a follower, and he had an independent streak that was apparent even during his tenure as governor, with his early efforts to control corporate greed and with his political appointments. New York Republicans were glad to see him move on to Washington, D.C., as vice presidential candidate for the second McKinley campaign. In a party that did not like surprises, Roosevelt's wide personal appeal trumped his reputation as a wild card. Few could foresee that he would assume the presidency, as he did in September 1901 following McKinley's assassination.

Less than six months after taking office, Roosevelt launched his first salvo against the great corporations when his attorney general announced pending action toward the Northern Securities Company. The result of an attempted takeover of the J. P. Morgan-controlled Northern Pacific by the upstart E. H. Harriman had turned into a fateful stock market corner in May 1901. As a compromise to “protect their assets,” the Northern Securities Company combined the assets of the Northern Pacific, the Great Northern Railroad, and the Chicago Burlington and Quincy under the ownership of Morgan, Harriman, and James J. Hill, three of the era's most formidable financiers.

Roosevelt knew that if his action was upheld, it would overturn a 19th-century precedent that limited the ability of government regulation of interstate commerce. When Roosevelt authorized Attorney General Philander Knox to file an antitrust suit, thus signaling his intentions to test the limits of the Sherman Antitrust Act, he placed himself in direct opposition to J.P. Morgan, who, under the McKinley administration, had acted without restraint as the country's de facto central banker.

By the summer of 1902, Roosevelt was campaigning in the midterm elections using his bully pulpit to gain advantage in the public relations battle, stating: “The great corporations which we have grown to speak of rather loosely as trusts are the creatures of the State, and the State not only has the right to control them, but is duty-bound to control them, wherever the need of such control is shown.”

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