Robert Bacon
Robert Bacon was an American athlete, banker, businessman, statesman, diplomat and Republican Party politician who served as the 39th United States Secretary of State in the Theodore Roosevelt administration from January to March 1909. He also served as Assistant Secretary of State from 1905 to 1909 and Ambassador to France from 1909 to 1912.
Bacon was a native of Boston, Massachusetts and attended Harvard College. While a student at Harvard, he starred in athletics, captaining the football team, rowing crew, and winning events in boxing and track. He befriended future president Theodore Roosevelt, leading to a lifelong friendship and professional relationship. After graduation, he became an investment banker with the firm of Lee, Higginson & Co. before joining J.P. Morgan & Co. in New York.
As Secretary of State, Bacon pressed Roosevelt's interests in the United States Senate to ratify treaties with Colombia and the new nation of Panama to resolve disputes over the Panama Canal. He continued to advance United States interests in Latin America after leaving office, conducting a tour of the region for the Carnegie Endowment for International Peace and publishing a treatise arguing for better relations with South America.
Bacon was a leader in the movement for military preparedness following the outbreak of the First World War, establishing training programs for potential soldiers and officers prior to American entry to the war. In 1916, he narrowly lost the Republican primary for United States Senator from New York to William M. Calder. He was commissioned as a major in the United States Army in 1917 and served under General John Pershing in France. Pershing appointed Bacon to a major role as the chief American liaison to British General Headquarters. Bacon returned to the United States following the war but died from complications following surgery less than two months after his arrival in New York City.
Early life and family
Robert Bacon was born on July 5, 1860, in Jamaica Plain, Massachusetts, and raised in the Beacon Hill neighborhood of Boston. His father, William Benjamin Bacon, was a Boston merchant who founded Daniel G. Bacon & Company with his elder brother and served as the Boston agent for Baring Brothers. The Bacon family had early colonial roots and settled in the town of Barnstable on Cape Cod. His mother, Emily Crosby Low, was ill for most of his childhood and died when he was eleven years old.After attending the Hopkinson School in Boston, Bacon was enrolled at Harvard College in 1876, shortly after his sixteenth birthday. At Harvard, he was a star athlete and popular classmate, captaining the football team and freshman baseball team, rowing seven in the crew, winning a heavyweight boxing championship, and winning both the quarter-mile and hundred-yard dash. He was also president of the glee club, chief marshal of his class day celebration, and a member of the A.D. Club and Delta Kappa Epsilon. He graduated as the youngest member of the class of 1880, which included future President Theodore Roosevelt and was called "Bacon's class." Roosevelt and Bacon were close friends and sparring partners during their time at Harvard. Following graduation, he completed a tour of the world, traveling west through Japan, China, India, and the Mediterranean.
Business career (1881–1905)
Early career
Bacon began his career at the investment bank of Lee, Higginson & Company in Boston; Henry Lee Higginson was a family friend and neighbor on Beacon Hill. In 1883, he accepted an offer to join the firm of E. Rollins Morse, where he handled some of the Boston business of J. P., Morgan.J.P. Morgan & Company (1894–1903)
In 1894, Bacon accepted an offer to become a partner in J.P. Morgan & Co. in New York City, cancelling plans to relocate to France for his children's education. He would remain with the firm until his resignation in 1903. As a junior partner to J. P. Morgan, he was one of the most trusted lieutenants in the firm and often led the American business while Morgan was in Europe.Panic of 1893
Bacon referred to his early months at J.P. Morgan as "really working for perhaps the first time in my life," as the firm was engaged in Morgan's plan to restore the credit of the United States government following the Panic of 1893.On February 5, 1895, he and Morgan met with President Grover Cleveland at the White House, where Morgan urged the private sale of government bonds in exchange for gold to an international syndicate represented by J.P. Morgan & Co. At the time, the United States Treasury was the subject of a bank run and on the verge of exhausting its gold reserves. Morgan prevailed upon Cleveland to agree to the private placement, in which Morgan's bank would act as representative of an international syndicate to supply sufficient gold. Although Congress failed to pass a bill explicitly granting Cleveland the authority to make such a sale, he finalized the agreement with Morgan on February 8, avoiding the suspension of payments.
The deal was politically controversial for all involved, but Bacon's role in managing the transaction earned him appreciation from Morgan; in the future, Bacon would manage all of Morgan's American business while the latter was in Europe.
United States Steel Corporation
In 1898, Bacon took on the firm's work for the newly formed Federal Steel Corporation, a steel conglomerate with over $100 million in capital. Elbert Henry Gary, a Chicago lawyer who served as president of Federal Steel, hired Morgan to finance further acquisitions by the firm, with a particular interest in the holdings of Andrew Carnegie. Negotiations between Morgan and Charles M. Schwab, the president of Carnegie Steel, began December 12, 1898, and concluded in 1901 for $487 million, an unheard-of sum for the time. The sale of the Carnegie interests resulted in the consolidation of the new United States Steel Corporation, valued at over 1.38 billion dollars and controlling two-thirds of the American steel industry.Northern Securities Company
In 1901, Bacon oversaw the consolidation of Morgan's vast railroad interests with those of James J. Hill in the Great Northern Railway and their joint acquisition of the Chicago, Burlington & Quincy Railroad. The latter acquisition was opposed by E. H. Harriman of the Union Pacific Railroad; Harriman demanded a one-third interest in the acquisition and when refused, attempted a hostile takeover of Morgan's Northern Pacific Railway; Bacon led the takeover defense. The resulting inflation in the price of Northern Pacific stock, which rose rapidly to over $1,000 per share of common stock in May 1901, threatened to crash the New York Stock Exchange. The ensuing financial panic led to the ruin of many small investors.To resolve the takeover bid and complete the planned consolidation of the Morgan and Hill railways, an investment company named the Northern Securities Company was formed on November 13, and stock in the three railroads in exchange for new issues of its equity. Harriman was named to the board of directors of the Northern Pacific and the Burlington, ending the takeover bid and calming the markets.
However, an antitrust suit was immediately brought by the United States in the United States District Court for the District of Minnesota against the Northern Securities Company under the Sherman Antitrust Act. Bacon was named as a defendant in the suit, which challenged the right of Northern Securities to own stock in the Northern Pacific and Great Northern. The case was decided against the company, and the judgment was affirmed by the Supreme Court of the United States by a 5–4 vote, dissolving the Northern Securities Company and returning the railroad stock to its owners. As a result of the stress from the Northern Securities case, Bacon took a one-year leave of absence in 1903 before retiring from J. P. Morgan.
Diplomatic career (1905–1912)
Assistant Secretary of State (1905–09)
On September 5, 1905, Bacon accepted an appointment from President Theodore Roosevelt, his former Harvard classmate, to serve as United States Assistant Secretary of State. The appointment had been requested by the new Secretary of State, Elihu Root.As Assistant Secretary, Bacon's work focused on relations with Canada and Latin America and advancing Roosevelt's Pan-American policy. He was sent to negotiate the arbitration of the Newfoundland fisheries dispute by the Hague with James Bryce; following Bacon's death, Bryce remarked, "How often have I recalled the work we did together for furthering friendship and good relations between America and England, and how pleasant it was to deal with him." From July 4 through September 30, 1906, Bacon served as acting Secretary of State while Root was in Rio de Janeiro to attend the Pan-American Conference. During his time as acting secretary, Bacon advised Roosevelt on the outbreak of hostilities between Guatemala, El Salvador and Honduras, cautioning against unilateral intervention in favor of a bilateral intervention with Mexico. An armistice was quickly declared with joint American and Mexican oversight. He also successfully negotiated the basis of a settlement of debt owed by the Dominican Republic and the return of land in Puerto Rico to the Catholic Church.
Provisional Government of Cuba
The most pressing matter during Bacon's tenure as acting secretary was a rebellion leading to the collapse of the Republic of Cuba, an independent state established by the United States following a period of American military government. In response to appeals by President Tomás Estrada Palma, Bacon and Secretary of War William Howard Taft personally departed Washington on September 16 for a mission to Cuba, in order to negotiate peace with the rebels against Palma's government. Despite the American mission, no peace was reached; Taft accordingly issued a proclamation on September 29, 1906, establishing the Provisional Government of Cuba by the United States and proclaiming himself Provisional Governor. Taft and Bacon remained in Cuba until October 15, when administration of the island was handed to Charles Edward Magoon.Though Bacon had been involved in deliberations over the Provisional Government, he privately expressed reservations over Taft's policy, which he believed was contrary to Root's foreign policy and to Root's earlier policy as Secretary of War, including the organization of the government and drafting of the new Cuban constitution.