OCR Text |
Show iPRESIDENT PRESENTS VIEWS ON NATION'S NEEDS . Outlines System of Leasing Water Power Sites, CoaJ, Phosphate and Oil Lands : . and Other Natural Resources OPPOSES ENACTMENT OF MORE LAWS FOR REGULATION OP CORPORATIONS : : Advises Halt to Observe Effect of Vigorous Execution Execu-tion of Measures Already in Operation; f Earnestly Hopes for Cheapening of Litigation Features of President Taft's Message: He declares it Is lime to stop legislating with reference to regulation of cor- poratious and to observe the effect of a vigorous execution of the laws already ; rtr on the statute hooks. Tho exact limitation upon business methods imposed by law will doubtless be made clearer by pending decisions of the supreme court. Just at this time, tho president nays, ho bolieves the activities of the gov- i eminent, in addition to enforcement of the laws, should be directed toward economy econ-omy of administration, the enlargement of opportunities for foreign trade, tho --nuildiug up of home industry and the strengthening of the confidence of capital in domestic investment. NO TARIFF RECOMMENDATION UNTIL 1911. . Mr. Taffc recommends strongly some form of ship subsidy to increase Ameri- ', can shipping, especially to South America. Tho tariff board is not ready to submit a roport on any of the uchedulos 1 Of the Payne law, and Mr. Taft says ho will not recommend any tariff legislation legisla-tion until the new congress convenes in December, 1911. He urges that the tariff board be made permanent and that all future revisions be made schdule : ,by schedule. He vigorously opposes any general revision. The Panama canal should be fortified. An appropriation of $19,000,000 iB recommended for this purpose. There must be no more "pork barrel" methods in river and harbor and public building bills. The matter should bo based upon the report of a com-mission com-mission of experts. In the past congress has appropriated too much for buildings build-ings not needed and not enough for buildings badly needed. Recommendations for anti-injunction and federal incorporation lawB are renewed. re-newed. It is proposed that second class mail rates shall be readjusted so as to charge magazines a much higher rate on their advertising sections. i. Strong representations are made for -tho. establishment of a' new banking . hand currency system. S Two new battleships and several auxiliary vessels are urged for1 the navy. E& The president recommends that coal, phosphate and -oil lands, and water-BKpowcr water-BKpowcr sites be disposed of in tho future by leasing. tfk UNCLE SAM'S INCOME FOR YEAR ESTIMATED, fjjfli Estimates for government expenditures during the nest fiscal year have beou cut to $630,194,013.32, which is 552.964,887.36 less than the actual approprl-orB?stiou approprl-orB?stiou for the current year. The estimatod receipts for tho next fiscal year aro 5680,000,000. , The president urges the extension of tho civil service principle to tho dip-njJKlomatic dip-njJKlomatic mid consular corps and the acciuisitiou by the government of the resi-tfijradences resi-tfijradences and offices for its diplomatic officers. ' oIiSr Some criticisms of the Payne tariff act aro just, says the president, but ' nijMmore are unfounded. Thcro should bo more officers for the army. The engineer corps should bo ' gKincreascd by sixty. jfrHB- Tho fortifications at Corregidor island, Manila bay; and at Pearl harbor, anifcHawaii, should be carried to early completion. j;w Regarding tho Panama canal, the president says: jitgfK "The. progress of tho work is most satisfactory. It will be completed well nctjpwithin tho timo set, January 1. 1915, and within the estimated cost of $375,000,-,p9jB00O. $375,000,-,p9jB00O. The 3lides in Culcbra cut offer no great reason for delay." Failure to fortify tho canal would leave the United States powerless to en-Jflttforce en-Jflttforce tho universal and equal use of the watenvay against a desporate and irre- 75spousiblo enemy and would defeat tho object of the canal in increasing tho mili- rJBtary effectiveness of tho Americau navy. Tho tolls should not exceed SI por VfjyKhot ton. The president should be authorized to adjust the rates a3 necessity arises. The government should include in its management of tho canal the rtlKl'unn'pliing. not only to the navy, but to the public as woll, dry docks and repair ,-'MKfaci!itios and the salo of coal, oil and other ship supplies. alMfi' Interstate railroads should be prevented from owning, or controlling ships aK"3jtrading through tho canal. WANTS LITIGATION CHEAPENED AND JUDGES PAID MORE. Regarding the courts, the president declares tho crying need of tho United ec$ jBtates is cheapening of the cost of litigation by simplifying judicial procedure V'fJBnnd expediting final judgment. The supreme court should be relieved from un-"rJHnecoKsary un-"rJHnecoKsary appeals. Tho salaries of fedral judges should be increased, 1 dBft PoHtal savings banks will bo established in a number of cities January 1. vffKA. parcels post on rural delivery routes ia recommended. Postmaster General c9teitchcock is given high praiso for putting tho postoffico dopartment on a self-3KtjUBtaining self-3KtjUBtaining basin, Tho extension of the civil servico to include all classes of jnicKoctmatitors, and thus taking those officials entirely out of politics, is urged, tyv The president recommends congress to givo aomc fitting recognition of tho ffftWgMftolar discoveries of- Commander Robort E. Peary, The secretary of the navy BfjjflWjuggcsts that. Peary bo made a rear admiral and placed on tho retired list. anwJk BIG CR0PS GIVE EXPECTATION OF GOOD TIMES. kvmty The, stupendous value of the agricultural products, amounting to $8,926,000,-dolflPOO $8,926,000,-dolflPOO this year, indicates a good prospect for business throughout tho country. . Tho preucnt census promises to be tho host over taken, but is not. perfect. ''"HF C0UKUS padders aro to bo vigorously prosecuted. 3BhBk A bureau of health should be established. The Southoru Pacilic railroad Fhould ho reimbursed for its expenditures in nltjMEfohtlng the floods in the Imperial valley of California several years ago. Hcavior fines should be imposed against steamship companies for violating iuHRio immigration laws. The facilities at Ellis Island, N, Y should not bo so in-ttpased in-ttpased as to offor an inducoment to steamship companies to concentrate their .Bmmigraut business at one port Immigrants aro needed in. the rural districts. 'IKBrk301210 provison sn0Ulcl bo injvd i'or retiring superaimuatcd government jwiiKi The only amendments suggested in the intorstato cominorco law are an ap- fB:oPratou to enable tho interstate commerce commission to ascertain tho valua-it'H011 valua-it'H011 of rallrondK and fixing the responsibiltios of public carriers in the issuance w Complete Text of President jjjjp Taf fs Message to Congress - Doc. fi. Congress riving immediately after the announco- ffiMf, wspnelful attention lo President men I of Hie president's intention to ,llrfjEfL'H meS8!lEe today but tlioro woro communicate his views "in writing." l0ii?)WKra)arill'vu'y fow members who wero This announcement wan mndo by Scn- '&rl5?lllin,; cedo the probability of jdor Ciillom, on bolialf of himself and nJSpyora"lc action :it the prcsont session Senator Money, who constituted tho nnxaWmtC "u'"v of lno recoiumcnduUons con- snnnlorial committco to inform tho jR;nel therein. This was in view of president that tho senate was proparod "SSWle fuc( lhtit the session will close receive conimmticr. lions from him. n wMplarcli 1 Almost immediately afterward Mr. Lat- iWE-'pi duliverod the mcKSiign to t lie liouso. wMF' ,nt-'ss"o was delivorod to bolh The reading of the document which 1' y by Secretarv Ltiita soon after was of unusual length, was begun at rSSmy convcucd at no"on. Mr. Latla mado 12slU o'clock iu the senate. At ttrst first- aiJpcarance in tho senate, ar- Continued on Page Six. I I Favors Leasing System for Natural Resources if Jj Peace Prevails Between United l x States and All Powers of World. VALUE OP ARBITRATION HAS BEEN DEMONSTRATED j Broader and Closer Trade Relations Re-lations With Canada Receive ! Especial Attention. . ; Continued from Pajje Ono. I Jiiost of fche senators listened attentive' I ly but Eraduall 'this attention censod on the part of post of them and those ' who remained in tho chamber devoted themselves to printed copies before them. This also was the case in tho house. i To the Senate and House of Reprosonta- Uvea: j During tho past year tho foreign rela tions of the United States havo continued i j upon a basis of friendship and good un derstanding. I ! ARBITRATION l The" ycay has been notable as wltncss- 1 I ing tho pacific settlement of two Import- I ( ant international controversies before the permanent court of The Hagno. ' 1 The arbitration of the fisheries dispute 1 1 between the United States and Groat Britain, which has been tho sourco of nearly continuous diplomatic correspondence correspond-ence since tho fisheries convention of I ISIS, has given an award which is satls- t factory lo both parties. This arbitration Is particularly noteworthy note-worthy not only because of tho eminently I Just results secured, but also hocauso It is I the first arbitration bold under the cen tral arbitration treaty of April -i. 190S. between the United States and Great Britain, and disposes of a controvorr-. ' the settlement of which lias resisted every , other resource of diplomacy, and which ( for nearly ninety years has been the I cause of friction between two countries whose common interest lies in maintaining maintain-ing the most friendly and cordial relations rela-tions with each other. , The United States was ably represented before the tribunal. Tho complicated history his-tory of the questions arising made the issue depend more than ordinarily In such 'I cases upon' tho earo and skill with which our case was presented, and 1 should be 1 1 wanting In proper recognition of ji great ,j patriotic service If 1 did not refer to the ,H , , lucid hlslorlcnl analysis of tho facts and , the signal ability and force of argument six days In length presented to the court H Jn support of our case by Mr. Ellhu Root. .As secretary of stale, Mr. Root had given I close study to the Intricate facts bearing I on the controversy, and by diplomatic correspondence had helped to frame the Issues. At tho solicitation of the secretary sec-retary of state and myself, Mr. Root, , though burdened by his duties as senator from New i'orlc, undertook the prepara-lion prepara-lion of the case as leading counsel, with the condition imposed by himself that In view of bis position as senator he should not receive any compensation. I The tribunal constituted at The Hague 1 by the governments of the United States and Venezuela has completed Its deliberations deliber-ations and has rendered an award in the rase of the Orinoco Steamship company 1 ' against Venezuela. The award may be ', regarded as satisfactory since It has. pur- l fuant to the contentions of the United Slates, recognised a number of important 1 principles making for a Judicial attitude in tho determining of international disputes. dis-putes. Circular Note to Powers. "Jn view of grave doubts which had been raised as to the constitutionality of The Hague convention for the establishment estab-lishment of an International prize court, 1 r.ow before the senate for'ratiflcation, because be-cause of that provision of the convention ' which provides that there may be an ap-, ap-, pcaJ to the proposed court from the de cisions of national courts, this government govern-ment proposed In an identic circular note addressed to those powers who had taken part in. the London maritime conference, that the powers signatory to the convention. conven-tion. If confronted with such difficulty, might insert a reservation to the effect that appeals to the International prl?e j court in respect to decisions of its r-tlonal r-tlonal tribunals, should lake the form of 1 a direct claim for compensation; that thu proceedings thereupon to be taken should be In the form of a trial do novo, and that Judgment of the court should consist of compensation for tho Illegal j capture, irrespective of tho decision of the national court whose judgment had thus been Internationally involved. Aa the result of an Informal discussion It was decided lo provide such procedure . by means of a separate protocol which f-hould be ratified at the same time as the prize court convention Itself. Accordingly the government of the Netherlands, at tho request of this government, gov-ernment, proposed under date of May 24, , 1910, to the powers signatory to Tke Hague convention, the negotiation of a supplemental protocol embodying stipulations stipula-tions providing for this alternative procedure. pro-cedure. It is gratifying to observe that i this additional protocol is being signed hH- without objection, by the powers slgna- 1 tori' to the original convention, and that SH there Is every reason to believe that the M . v International prize court will be soon es- , tabllshcd. T , 'i The Identic circular note also proposed Sal i that the International prize court when - established should be endowed wjlh the JM functions of an arbitral court of Justice J-l under and pursuant to tho recommenda- yMj tlon adopted by the last Hague cortfer- JmV encc. Tho replies received from tho va- rlous powers to this proposal inspire the M hope that this also may be accomplished SM within the reasonably near future, H It is bellovcd that the establishment of JH These two tribunals will go a long way to- yJJV . ward securing the arbitration of many SJjn ) questions which have hcretofcro thrcat- JJH ') , ened. and at times destroyed the peace of H V ' I PEACE COMMISSION I r - l,., ; Appreciating thcBe enlightened tenden- Ht , ''leu of modern times, tho .congress at its H.(i jl lasl SL'3slon Passed a law providing for n : ho appointment of a commission of five Hiiij ' members "to be appointed by the presi- jl! tlnnt of tllc Uncd States to conalder the ) i expediency of utilizing existing Intcrna- H- Jl "j tional agencies for the purpose of limiting Hj M i he crmaments of the nations of thcworld mB-H h International agreement, and of constl- M' ij ; luting the combined navies of the world '"j i Iltn International force for the proserva- f t,on of Unlversal peace, hnd to consider ii i and report upon any other means lo dl- U mlnlah the expenditures of government V' forKml fftry ,rl" ad to lessen the JH' probabilities of wax. " B ;( i 1 have not aa yet made appointments v t0 ,tnl5 commission becautio r have invited fMf ' l and am awaiting the expressions of for- M 1 I ?,sAnVT1cn,t.tla lP thoh' willingness i I "1 co-operate with us In tho appointment i or similar commissions or representatives 11 who would nicel with our commissioners 4MIIIrHII-!S"l' ; The method of impartial scien- tific study by exports as a proltmi- I riary to legislation which 1 hopo to b I- 880 ultimately adopted as our ilxod 4-v 4-v national policy with rospoct to the 4 tariff, rivorB and harbors, water- 4 f- ways and public buildings, also is I being pursued by a non-partisan I monetary commission of congross. An exhaustive and most valuablo ! study of the banking and currency v-v v-v systems of foroign countrios has r I boon completed. v A comparison of tho business r methods and institutions of our powerful and successful rival3 I with our own is euro to bo of im- raenso value. I urge upon con- ! gross the importance of a non-par- v-5 v-5 tiBau and disintcrosted study and 'I r consideration of our banking and I-I I-I currency system. 'f- :: : w-n:-: m : : and by joint action sock to make their work effective EUROPE, CANADA, ETC. Several Important treaties havo been negotiated with Groat Britain In tho past twelve months. A preliminary diplomatic agreement has been reached regarding the arbitration of pecnnlnry claims which each govorninont has against the other. This agreement, with the schedules of claims annexed, will, as soon as the schedules arc armngod. bo submitted to tho senate for approval. An agreement between the United States and Groat Britain with rogard to thp location of the international boundary lino botween the United States and Canada Can-ada In Passamaquoddy bay and to tho mlddlo of Grabd Mahan channel was reached In a treaty concluded May 'M, 1910, which has been ratified by both governments and proclaimed, thus making mak-ing unnecessary the arbitration provided for In tho previous treaty of April 11, 190S. The convention concluded January 11. 1000. between the United States and Great Britain providing for the settlement of International differences botween the United States and Canadn, Including tho apportionment between the two countries of certain of tho boundary waters and the appointment of commissioners to adjust certain other questions has been ratified by both governments and proclaimed, The work of tho International fisheries commission appointed In 190S, under tho treaty of April 11. 190R. between Great Britain and the United Stales, has resulted result-ed In the formulation and recommendation recommenda-tion of uniform regulations governing the fisheries of t he boundary waters of Canada Can-ada and the United States for tho purpose of protecting and Increasing iho supply of food fish In such waters. In completion com-pletion of this work, the regulations ngreed upon require congressional legislation legisla-tion to make them effective and for their enforcement In fulfillment of the treaty stipulations. . PORTUGAL In October last the monarchy in Portugal Por-tugal was overthrown, a provisional republic re-public was proclaimed, and there waa set up a do facto government which wns promptly recognized by tho government of tho United States for purposes of ordinary or-dinary intercourse pending formal recognition recog-nition by thi3 and other powers of the governmental entity to bo duly established estab-lished by the national sovereignty. LIBERIA A disturbance among the native tribes of .Liberia In a portion of the republic during the early part of this year resulted re-sulted in the sending, under the treaty of 1S62, of an American vessel of war to the disaffected district, and tho Siberian Si-berian authorities, assisted by the good offices of tho American naval officers, were able to restore order. The negotiations nego-tiations which have been undertaken for the amelioration of tho conditions found In Liberia by the American commission, whose, report I transmitted to congress on March 25 last, aro being brought to conclusion, and It Is thought that within with-in a short time practical measures of relief may bo put Into effect through the good offices of this government and the cordial co-operation of other governments gov-ernments Interested In Liberia's welfare. THE NEAR EAST TURKEY. To return tho visit of the special embassy sent to announce the accession of his majesty, Mchcmet V., emperor of the Ottomans, 1 sent to Constantinople a special embassador, who. In addition to this mission of ceremony, cere-mony, was charged wllb the duty of expressing lo the Ottoman government the value attached by the government of the United States to increased and more Important relations between tho countries and the desire of the United States to contribute to the larger economic eco-nomic and commercial development due to the new regime in Turkey. The rapid development now beginning in that ancient empire and the marked progress and Increased commercial Importance Im-portance of Bulgaria. Roumanla and Scrvia make it particularly opportune that the possibilities of American commerce com-merce in the near cast should receive due attention. MONTENEGRO Tho national skoup-chtlna skoup-chtlna having expressed its will Ihnt tho principality of Montenegro be raised lo the rank of kingdom, tho prince of Montenegro Mon-tenegro on August IB last assumed the title of king of Montenegro. It gave me pleasure to accord to the new kingdom the recognition of the United Stales, I THE FAR EAST The center of Interest in far eastorn affairs during tho ,past year has again been China. It Is gratifying to note thai the negotiations nego-tiations for a loan to tho Chinese government gov-ernment for tho construction of the trunk railway lines from Hankow southward south-ward to Canton and westward through tho Yangtse valley, known aH the Hu-kuang Hu-kuang loan, were concluded by the representatives rep-resentatives of tho various financial groups In May last, and the rosults approved ap-proved by their respective governments. Tho agreement, already Initialed by the Chinese government, is now awaiting formal ratification. The basis of tho settlement set-tlement of iho tcrm3 of this loan was one of exact equality between America, Great Britain, France and Germany In respect to financing the loan and supplying sup-plying materials for the proposed railways rail-ways and their future branches. The application of tho principle underlying under-lying the policy of the United States in regard to the Ilukuang loan, viz.. that of the inlcrnationallzatlon of tho foreign Interest In such of tho railwavs of China as may bo financed by foreign countries, was suggested on a broader scale by the secretary of state In a proposal for internationalization and commercial neutralization of all the railways of Manchuria. "While the principle prin-ciple which led to tho proposal of tbls government was generally admitted bs the powers to whom it was addressed tho governments of Russia and Japnn apprehended practical difficulties In the execution of tho larger plan which prevented pre-vented their ready adherence. The question ques-tion of constructing tho Cblnchow-Algun railway by meRii3 of an International loan to China is however, still the HUbJoct of friendly discussion by tho interested parties. Tho policy of this government In these matters lias been directed bv a desire to make tho uso of American, capital In the development of China an Instrument Instru-ment In the promotion of China's welfare wel-fare and material prosperity -without prejudice to her legitimate rights as an Independent political power. policy With China. This policy has recently found further exemplification In the usal&tunec given UNITED STATES TO HELP M Use of American Capital in Development De-velopment of Orient Much Desired. IMPERIAL LOAN READILY ACCEPTED BY FINANCIERS International Agreements Concluded Con-cluded Regarded as .Advantageous .Advan-tageous to This Country. by this government to tho negotiations between China and a group of American Ameri-can bankers for a loan of $50,000,000 lo be employed chiefly in currency reform-Tho reform-Tho confusion which has from ancient times existed In the monetary usages of tho Chlnoso has been onn of Uie principal prin-cipal obstacles to commercial Intercourse with that pcoDlo. Tho United States In Its treaty of 1003 with China obtained a plcdso from tho bitter to Introduce a uniform national ooinago, and the .following year, at the request of Chinn. this government sent to Poking a member of the International oxchangc commission, to discuss with tho Chinese' government the host methods of introducing the reform. In 1008 China sent a commissioner to tho United States to consult with American financiers finan-ciers ns to the possibility -of securing a large loan with which to Inaugurate the new currency system, but the death of their majesties, tho . empress dowager dow-ager and the emperor of China, interrupted inter-rupted tho negotiations, which were not resumed until a few months ago, when this government was asked tor communicate commu-nicate to the bankers concerned the request re-quest of China for a loan of 550,000,000 for the purpose under review. A preliminary agreement between the American group and China has been made covering the loan. For the success of this loan and the contemplated reforms which are of tho greatest Importance to the commercial Interests of the United States and the civilized world at large, It is realized that an expert will be necessary, and this government has received assurances from China that such an ndvlFor, who shall be an American, will ho engaged. It is a matter of Interest to Americans Ameri-cans Jo note tho success which is attending at-tending tho efforts of China to establish estab-lish gradually a system of represent a-tlvo a-tlvo government. The provincial assemblies as-semblies wore opened In October. 1000, and In October of tho present vear a consultative body, tho nucleus of the future fu-ture national "parliament, held Us first session at Peking. The year baa further" been marked by two Important international agreement agree-ment relating to fnr eastern affairs. In ho Russo-Jnpaiicse agreement relating to Manclibna. lgnod July -j. 1010. this government was gratified to note an assurance of continued peaceful condl-t condl-t ons In that region and the- reaffirmation reaffirma-tion of the policies with respect to China to which the United States, together with all other Interested powers, Is solemnly committed. Korean Annexation. The Ircnly annexing Korea to tho empire em-pire of Japan, promulgated August I'O, ;..T,,;..ti,i.2..i..;..t..;..t...,;..;..i....;..;..;..i"H-,tr The immigration into this coun- 4 try is increasing each year. A 4 'V largo part of It comes through the I lmmmigrant station at Ellis island -v 4 in tho city of New York. b An examination of the station v r and tho methods pursued satis- 'f 4- flos me that a difncult task is v ' there performed by tho commis- -b r si oner and his force with common ! sonso, the strictest falrnoss, and 4 - with tho most oarnest desire to ! I enforce the law equitably and r mercifully. 4- I concur with the secretary in 4 v his recommendations as to the r i amendments to the immigration r law in increasing the fine against 4 4 tho companies for violation of the 4 4 regulations, and In giving groater 4-4 4-4 power to the commissioner to en- 4 4- forco more care on the part of tho 4 4- stoamship companies In accepting 4 4- immigrants. The rccommondation 4 4 of tho secretary, in which ho urges 4 4- that tho law may be amended so 4-4 4-4 as to discourage tho separation of 4 4 fajnillos Is. I think, a good one. 4 44j44HIi ! i 4i,r-I'!H-H"I,4"r4I"r4"H 1010. marks the final stop in a process of control of the ancient omplro by her powerful neighbor that has been In progress prog-ress for several years past. In communicating communi-cating the fact of nnncxallon the Japanese Japa-nese government gavo to tho government of the United States assurances of the full protection of tho rights of American Ameri-can citizens in Korea under the changod conditions. i Friendly visits of many distinguished i persons from the far cast havo been made during tho year. Chief among these were their imperial highnesses. I Princes Tsal-tao and Tsa.l-Hsun. of China, and ills Imperial highness. Prince j Hlgnshl Fushlml, and Prince Tokugawa. president of tho bouse of peers of Japan. The secretary of war has recently recent-ly vlsltod Japan and China in conncc-tlon conncc-tlon with his tour to tho Philippines and ' PRESIDENT WILLIAM H. TAFT 4-H-4 : ;; :i.h :i i : m.m i.-4-H"i-MiM4-4-4-i-4-4-4-;-H.: : :.iw1"H--i.-h-.i.;.-i H-K.f :!! r ::-:!: n largo delegation of American business men arc at present traveling in China. This exchange of friendly visits has had tho happy effect of even further strengthening our friendly International relations. 1 LATIN AMERICA During the past year several of our southern sister republics celebrated tho one hundredth anniversary of Ihclr independence. in-dependence. In honor of these uvents, special embassies wcro sent from this country to Argentina, Chile and Mexico, where the gracious reception and splendid hospitality extended them manifested tho cordial relations and frlondshlp existing between those countries and the United States, relations which I am happy to believe have never before been upon so iiibh x !latij und so solid u ba3ls as at prosent. Tho congressional commission appointed under a concurrent resolution to attend the festivities celebrating Iho centennial anniversary of McMcnn Independence, to gethcr with a special embassador, wore received wiih tins highest honors and witb the greatest cordiality, and returned with the report of the bounteous hospitnllty and warm reception of President Diaz and the Mexican peoplo, which left no doubt of the desire of the immediately neighboring republic to continue tho mutually mu-tually benollrlal and iuliinato relations which I feel suro the two governments will ever cherish. At tho fourth pan-American conference which met In Buenos Aires during July and August last, after seven weeks of harmonious deliberation, three conventions conven-tions were signed providing for tho regulation regu-lation of trade-marks, patents and copyrights, copy-rights, which when ratified by the dlf farcnt governments, will go far toward furnishing to American authors, paton-tees paton-tees and, owners of trade-marks the protection pro-tection needed In localities whore herc-tofoic herc-tofoic It has been cither lacking or in- RELATIONS WITH wjypcfl Highest Degree of Friendship Manifest on Part of Latin Republics. PAN-AMERICAN BUREAU RECEIVES MUCH PRAISE Mediation Has Proved to Be of Inestimable Benefit to All Concerned. adequate. Further, a convention for the arbitration of pecuniary claims was signed and a number of important resolutions resolu-tions passed. Tho conventions will In duo courso be transmitted to the senate, and the report of the delegation of the United States will be communicated to tho congress for its information. The speclnl cordiality botween bo-tween representative men from all pirts of America which was shown at this conference con-ference can not fall to react uj'on and draw still closer the relations between i no countries which look part In It The International Buroau of American Republics Ik doing a broad and useful work for pan-American commerce and comity. Its duties were much enlarged by the International conforcncc( of American Ameri-can stales at Buenos Aires and its namo was shortened to the rnoro piactical an.! expressive term of Pan-Ainerlcan Union. Located now in Its new building, whlci. was specially dedicated April of wis yoar to the development of friendship. Irado and peace among the American nations, na-tions, II has Improved iu.'ilrumuniulhlc to serve the twenty-two republics of this hemisphere. I am glad lo say that the a-jtion of the United Stalos in Its desire to remove imminent danger of war between pe;-u and Ecuador growing out uf a boundary dispute, with the eo-opcrallon of Brazil and the Argentine Republic as JolnL meditators medi-tators with tills government, baa already resulted successfully In preventing war. The government of Chile, while not one of the mediators, lonL effective aid in furtherance of a preliminary agreement likely to lead on to an amicable settlement, settle-ment, and it Is not doubted thut tho good offices of tho mediating powers and the conciliatory co-operation of tho governments govern-ments directly Interested will flnallv leail to a removal of thin peicnnlal cause oi friction between licuador and Peru. Tho inestimable value of cordial cu-bperatlon cu-bperatlon between the sister republics of America for tho mnlntcnanee of peace In this hemispbero has never been more clearly shown than In this mediation, by which three Amorlciin governments havo given to this hemisphere tho honor of Mrsl invoking the most far reaching provisions of The Hague convention for the pacific settlement of International disputes. There has been signed by the representatives repre-sentatives of the United Stntes and Mev-lco Mev-lco a protocol submitting to tho United States-Mexican boundary commission (whose membership for the purposo of this caso 16 to bo incroasod by tho addition addi-tion of a citizen of Canada) tho question of sovoroignty over the Chamizal trad which Ur within the prcsont physical boundaries of the city of El Paso, Tox The determination of this question wlli T 4 The total sum already accumu- .-4- lated In tho fund provided by the 4 4- act for tho reclamation of and v 4- lands is about $69,'149,058,76, and 4-4- of this, all but $6,241,058.76 has v 4 been allotted to tho varioiiB 4 4 projectn, of which thoro aro thirty. 4 4 Congress at its last Bosrion pro- 4 4 vided for tho Issuing of certifl- 4; 4- catOB of indebtedness not exceed- v 4 ing twenty millions of dollars, to 4 4- bo rcdoomed from the reclamation 4 4 fund when tho proccods of landu 4 4 sold and from tho water ronts 4; 4 should ho sufficient. v 4 Meantime, in accordanco with v 4 tho provisions of the law, I ap- 4 4 pointed a board of army engineers v 4 to cxamino tho projocts and to 4 4 ascertain which aro feasible and 4 4 worthy of completion, That board 4 4 has made a report upon tho aub- 4 4 ject, which I shall transmit in a 4-4 4-4 soparato mossago within a fow 4-4 4-4 days. f 4- 7 remove a source of no littlo annoyance lo the two governments. The republic of Honduras has for many venra been burdened with a heavy bonded bond-ed debt held In Europe, the Interest on which long ago fell In arrears. Finally conditions were such that 11 became imperative im-perative to refund the debt and place W-ilnanccs W-ilnanccs of the republic upon a sound busls. Uast year a group of American bankers undertook to do this and to advance funds for railway and other improvements contributing con-tributing directly to tho country's prosperity pros-perity and commerce an arrangement which lias long been d-hired by tms government. gov-ernment. Negotiations to this end nave .icon under way for more than a year and t l.n now conlidcntly believed that a short -hue will suftlei' to conclude an arrangement arrange-ment whk-h will be satisfactory to the foreign creditors eminently advantageous to Honduras, and highly creditable to Iho Judgment and foresight of the Hon- .iurancan government. This Is much u be desired since, as recognized by ttie Washington conventions, a strong Hon-fluras Hon-fluras would tend Immensely 10 me progress and prosperity of Central America. Amer-ica. Nicaraguan Uprising. During tho pa,t year, the republic of Nicaragua, has been tho scene of internecine inter-necine struggle. General Zelaya, for sov-entcen sov-entcen years the absolute ruler of NU-a-ragun, was throughout his career the dls-turbir dls-turbir of Central America nnd opposed every plan for the promotion of peace and friendly rolatlons between the five republics. When the people of Nicaragua wcro finally driven Into rebellion by his lawless law-less exactions, he violated the laws of war by the unwarranted execution of two American citizens who hnd regularly enlisted en-listed In the ranks or the revolutionists. Thin and other offenses made It the duiv of the American government to take measures with a view to ultimate reparation repara-tion and for the safeguarding of Its Interests. In-terests. This Involved tho breaking off of a!: diplomatic relations with the Zelaya government gov-ernment for the reasons laid down in a communication from tho secretary of state, which also notified the contending factions In Nicaragua that this government govern-ment would hold each to strict accountability account-ability for outrages on the rights of merlcan citizens. American forces were .?ent to both coasts of Nicaragua to hr, in readiness should occasion arise lo protest Americans and their Interests, and remained re-mained there until the war was over and peaco bad returned to that unfortun.iU. ountry. These events, together with Zelaya Ze-laya s continued exactions, brought him so clearly to the bar of public opinion that he was forced to resign and i.c .ake refuge abroad. In the above mentioned communicator of U.c secretary of .slate to the charge the opinion was expressed that the revo-utlon revo-utlon represented the wishes of the majority ma-jority of the Nicaraguan people. Th.s has now been proved beyond a doubt by thSf ,lihaln.s,7c,ft lhc complete over-i? over-i? ?,f -he MadrlB government and the occupation of the capital b the forces of the rcvplut on. all factions have unlt- :esult of discussion with an agent of this government, sent to Managua at the v-quest v-quest of the provisional Komnmen con prehensivo plans arc being made for uc luturo welfare of Nicaragua includln-tltf includln-tltf rehabilitation of public credit "h?. moderation and conciliatory spirit show-by show-by the various factions glvs T ground for the confident hope that VJ n?ag a w?-soon w?-soon take its rightful placo umo" ifVbJJftf "relvo uSr.tri ago placed with American mai ufa" lurei2 ? contract for the construe : ion at i .friendly feeling toward the If 1 TARIFF NEGOTIATIONS The new tariff iaw in section 2 rc-'recilng rc-'recilng the maximum and m,n!mum i.r- Wd,ClVen s7stX,endry 0? " wU lions. sustained commercial rela- In the case of several countries i n?oC1 'y "'oUatlon. Prior to wil l" 1910, when the maximum tar ff wVT u come Into operation with veS. , 0 wK,078 rrm ''osoCcountr es,mn whose favor no proclamation i apnfvln" the entire commercial wor Id an 1 hence he minimum tariff of the United Stages Ims b6en given universal nnnllcaUm, testifying to the satlsfactorv d nr-''ouiUr?es.OUr nr-''ouiUr?es.OUr roIalio3 Ith" foreign J!Iai?,C?,d ,a''"tascs to the commerce of htse r.Hff: ?!' werc Painc.l hrough .iifse .irirr settlements. Foreign natinn are fully cognizant of the fact . that or section l' of the tariff act tl e pros I dent s required, whenever he is aatlsMcd J?1 treatment accorded bv ) m to the products of tho United Sta'tes Is nm aiieh as to entitle thorn to. the benefits of he mlu iniim tarilT or the United st-itcs o withdraw those bencHls by procla m vMMK'lne: n,Ve,-v da-3 notice, aricr which tho maximum tariff will Vmniv i "StcdSa'Sl0 Pr(,UC,B Cnt"-S the! In its general operation ibis section nr the tariff law has thus far proved a although there are. however, unfortunately. unfortun-ately. Instances where foreign goven. ments deal arbitrarily with American i terests within their" jurisdiction In a manner Injurious and Inequitable. Canadian Policy. The policy of broader nnd closer trrirt relations with tho Dominion or Canada which was Initiated Jn the adjiwlmem of the maximum and minimum provisions of the tariff net of Auguai, 1903 hols proved mutually beneficial. Jt juBtltiet further efforts for the readjustment " of he commercial relations or the wo coun-rlea coun-rlea so that their commerce mav folks-w ho channels natural lo contiguous countries coun-tries and be commensurate with th steady expansion or trade and Indiiitrv on both sides of the boundary line r The reciprocation on the part of th dominion government of the Hontlmont which was expressed by this government Was followed In October by the hubbm tlon that it would bo glad to havTOo negotiations, which hnd been temnorarllv suspended during tho summer, returned In accordance with this suggestion, the secretary of slate, by my direction, dis- STERN ECONOMY j IS Mil i Estimates of All Departments j Reduced to Lowest Possi- ble Figure. i RECEIPTS WILL EXCEED J EXPENSES BY LARGE SUM I I Expects to Emerge From NextJ Fiscal Year Fifty Millions J to Good. I I 4 patched two representatives of the da partmcnt of state as special commission, -i ers to Ollawa to confer with rcprosenta- V. lives of the dominion government, They wore authorized to take guch steps Tor formulating a reciprocal trade agrocnicnt as might be necessary and to receive and consider any propositions which the dominion government mJeht care to submit. 6 t Pursuant to the instructions Issued K confermices were hold by these commis- a sloncrs with officials of tho dominion 3 government at Ottawa in tho early part yl of Novomber. ft Tho negotiations were conducted on both sides in a spirit of mutual accom-W modatlon. Tho discussion of tho com-mon com-mon commercial interests of the two flK countries had for its object a satisfactory !S basis for a trade arrangement which of- fers the prosporl of a frocr Interchange 9 for the products of the United States and ' of Canada The conferences were ad- flj Journed to be resumed In Washington In Mf January, when It Is hoped that tho asplr- V atlon of both governments for a mu-tuully mu-tuully advantageous measure of reel- VW proclty will bo realized. I DEPARTMENT OP STATE, iff FOREIGN SERVICE, ETC. m All these tariff negotiations, so vital to our commerce and Industry, and tha w duty of Jealously guarding tho cquitabla hmL and just treatment of our products, cap-ital, cap-ital, nnd Industry abroad, aevolvc upon tho doparlmnni of stale. The Argentine battleship contracts, like the subsequent important one for Argon- IK tine railway cqulpmont, and those for JW Cuban government vessels, wcro sucur(J for our manufacturers largely through 'jml the good offices of the department of The efforts of that department to se- cure for citizens of the United Statcj equal opportunities in the markets of W the world nnd to expand American com- .'A' merce have been most successful. W: The volume of business obtained In new wj l!eds of competition and upon new llncj Is already very great and congress Is-vXj urged to continue to support the depart-, W nsenl of state liv Its endeavors for fur- 'iw! thcr trade expansion. Our .foreign trade merits the best sup-port sup-port of the government and the mo!tK earnest endeavor of our nianufacturcr3j,,M(i and merchants, who. if they do not bI-K ready in all cases need a foreign niiirkeiMj are certain soon to become dependent cn-nt it. Therefore, now Is the tlvnc lo sccuriwF, a strong position In tills field. - Si I cannot leave this subject without XL emphasizing the necessity of such legls-,K lalion as will make possible and con-'IK venlent ibe establishment of American Kj banks and branches of American bank 8 jSi In foreign countries. Only by suchoBI means can our foreign trade be favorably jMl financed, necessary credits be arranged, and proper avail be made of commercial Ml opportunities in foreign countries, and SB mosl especially In Latin America. IMS Another Instrumentality Indispensable to tho unhampered nnd natural develop- .fjK mcnt of American commerce Is morcliant,il marine All maritime and commercial nations recognize the importance of thlsB factor. The greatest commercial nation!. H our competitors. Jealously foster thelr'jWS merchant marine. Perhaps nowhere 'E the need for rapid and direct mall, sengcr and freight communication quite, so urgent as between tho Unitod Stale pmE and Latin America. AVc can secure In no other quarter n'K the world such immediate benefits In M friendship and commerco as would from th establishment of direct lines of communication witli the countries "frijHf Latin America adequate to meet tho ffl- Bl quirements of a rapidly increasing P"!;tB prcclatlon of the reciprocal dependence Xfl of the countries of the western lieml '.jHi sphere upon each other's products, s'm";'?Bfi rialhlos and assistance. , .P For Merchant Marine. 'VfE I alluded to this most Important sub-Jci sub-Jci L In my last annual message; it has Jfll often been, before you and I need nor recapitulate tho reasons for its recom-S mcndatlon. Unless prompt action baMB taken the completion of the Panama caVH nal will find this the only great commer-w clal nation unable to avail In lnterTlHH national maritime business nf this Ereat'fc contribution ,to the means of tho wor'(l8JH commercial intercourse. Quite aside from the commercial as!.H pect, uplcsa .we create a merchant """imSI line, whore can wo find the scafarinif population necessary as a natural navai,HC reserve and where could we find, '".fJvBH of war, tho transports and subsIdlaiTBj vessels without which a naval fleet 15 Hflj anna without a body? For many rci-;M sons I can not loo strongly urge upJ!sK the congress tho passage of a measureK by mail subsidy or other subvention acJEyMm and rapid development of an AmcJ'.Hi merchant marine, the restoration of tno .fljr Amorican llag to Its ancient placo upon -JHffX the seas. . Hk Of course such aid ought only lo -SC given under conditions of publicity oi tjHSL each beneficiary's business and accoun which would show that tho aid TCceWwgmL wan needed to maintain tho trade anaiHMi was properly used for lhat purnoso. TMff: "With our increilng international "jMjC tcrcoursc it becomes incumbent upon rU'!KS to repeat more emphatically than ever Mfi recommendation which I made ,,n .. Inaugural address that congress sVl?ll,ifi;MMj onco give to tho courts of the Un".5W States Jurisdiction to punish as a "'"iMleS the violation of the rights of aliens SS'H cured by treaty with the United 8W "JIBjffi In ordcr that the general government : jH the United States shall bo able. we iK called upon by a friendly nation, to T'm deem its solemn promise by trebly secure to thu citizens or subjects of tna C nation resident In the United StaU-jptt freedom from violence and duo P.frfJvBfl'.' of law In respect to their life, HDeriyKn. and property. ..'HBr1 I also, and for the same general rw sons, strongly commend lo iho vJ-mft( ble action of tho congress the cuactmonKW of a law applying to tho diplomatic sJ;MM consular service the principles cmbooieo,i, In section 1T53 of tho revised statutes "JHVt tho United States, In tho civil ecrvl.l?Mfe act of January 16, 1SSS. and tho oxtfju tlvo orders of Jtino 27, 190G, and of ""ThHsm vember .'G. IP 00. H9 Civil Scrvico Extension. 'H The excellent results which ha.yo ff.f'HSj tended the partial application of cyi'9MjS? service principles to tho dlpIomaUc 2"BJfi consular services are an earnest or ?HWH benefit to bo wrought by n wldcr,i,MftK more, permanont extension of "lHE principles to both branches of the 'y elgn service. The marked ImP,'0VCI5.,i'BS In lhc consular service during the years slnco tho principles of the ''K; scrvico act were applied to that 8erVK!.jMBK In a limited way. and the good rCHU!r M! already noticeable Xrom a similar VMfc 1 Recommends Fortification of Panama Canal I gwbme Plan Should Be Devised 111 to Control Supply of JI Structures. SIresent method offers m opportunity for graft i 1 ' ics Relief by Appointment of I Commission of Government Govern-ment Experts. m Milton of civil service principles to tho plomatlc service a your ngo, convince IKo, that the enactment Into law of tho 'jKneral principles of the existing cxecu-'vb cxecu-'vb regulations could not fall to effect Jfcrther improvement of both branches the forolcn service, offering as It Bpuld by Its assurance of permanency jjf. tenure and promotion on merit, an ducemcnt for the entry of capable Hpung men Into the scrvico and an in-Kntlvo in-Kntlvo to those already in to put forth '!clr best efforts to attain and maln-MIn maln-MIn Uiat degree o." efficiency which the interests of our International relations tEifl commerce demand. HDuring many years past appoala have JKeen made from time to time to congress -favor of government ownership of em-fltosBy em-fltosBy and legation promises abroad. Tho njumcnts In favor of such ownership Xave been many and oft repeated and "Bro well known to the congress. The Requisition by the government of sulta-We sulta-We residences and offices for its diplomatic diplo-matic officers, especially in tho capitals Jjf the Latin-American states and of fflrorope, is so Important and necessarv -S9 an Improved diplomatic service that iKjliave no hesitation in urging upon con-TOreBB con-TOreBB the passage of Eomc measure siml-Lr siml-Lr to that favorably reported bv tho buso committee on foreign affairs on tebruary U. 1910 (Report N'o. 438), that would authorize tho gradual and an-ual an-ual acquisition of premises for diplo-ietic diplo-ietic use. Tho work of the diplomatic service Is Kvold of partisanship; its importance ould appeal to every American citizen nd Bhould receive tho generous con-neratlon con-neratlon of tho congress. TREASURY DEPARTMENT" ESTIMATES FOR NEXT YEAR'S PCPENSES. Everv effort has beon iado by each department chief to re-Ice re-Ice th" estimated cost of his depart-ient depart-ient for the ensuing fiscal year ending une 30. 1912. I cay this in order that ingress may understand that these estates es-tates thus made presont the smallest lin which will maintain tho dopart-ents, dopart-ents, bureaus and offices of the gov-nment gov-nment and meet its other obligations Jder existing law, and that a cut of iese estimates would result in embar-isslng embar-isslng the executive branch of tho gov-mment gov-mment In the performance of its duties. tThls remark does not apply to tho ver and harbor estimates, except to lose for expenses of maintenance and Ke mooting of obligations under authorised author-ised contracts, nor does It apply to the wblic building bill nor to tho navy wilding program. VOf course, as to these congress could Bthhold any part or all of the estimates mr them without interfering with the "schargc of the ordinary obligations of "e government or the performance of ijho functions of its departments, bu-jaus bu-jaus and offices. The final estimates for the vear end-mg end-mg June 30. 1912, as they havo been Jnt to the treasury on November 29 of lis year, for the ordinary expenses of' jtfce government, Including those for pub-fc pub-fc buildings, river and harbors, and the ,mvy building program, amount to $630,-J4,013.12. $630,-J4,013.12. This is ?52.964,SS7.36 less than .1 ic appropriations for the flHcal vear J Jdlng June 30. 1911. It is S1G.SS3.153.44 J as than tho total estimates, including I ipplemontal estimates submitted to ttgrcss by the treasury for the year 11, and is JB,574.Cr9.39 less than the 1' Jginal estimates submitted by the easury for 1511. Tl'heso figures do not include the ap- opriations for the Panama cannl, the fllcy In respect to which ought to be. J id Is, to spend ns ni" Mi each year as m be economically and effectively ex- I' kided In order to complete the "canal ij promptly as possible, and, therefore, p ordinary motive for cutting down the "pense of the government does not ap-' ap-' 'i to aPPrPnrIatIon3 for this purpose. jfwill be noted that tho cstlmutcs for to "Panama canal for tho ensuing vear ? "e more than 556,000 DO, an increase $20,000,000 over the amount oppro-J oppro-J "iated for this year a diffcronco due to e fact that the estimates for 1912 in- ude something over 519.000.000 for the -rtlilcatlon of the canal. 'Against the estimated expenditures of I i30.49 1,013. 12 the troasurv lias ngti- etcd receipts for next year 5C8000,000, aking a probable .surplus of ordinary elpts over the ordinary expenditures i about Sf50.000.000. or. taking Into nc-1 nc-1 unf- the estimates for th Panama 7.aJ,."h,ch aro Sr.iJ.920.S17.G9. and which HI ultimately bo paid in bonds. It will ii 000.000. If congress shall conclude to Ttlfy the canal. Tho cost of tho fortU tftlons Is about 519.000.000. Should J ice be no appropriation!? this year for J irtttlcatlons. thou there would be. even -eluding the Panama canal aonropria-VK'Vi aonropria-VK'Vi 11 surplus of about 512.000.000, ac- yJIng to the treasury statements, j, !j Table of Estimates. luc allowing in detail the estimates H ia tho comparisons referred to follown-M follown-M c- 5 I wish to renew ray urgent r v recommendation made in my last annual mosEage in favor of tho v passago of a law which shall reg- 4 ulate the issuing of injunctions in v v equity without notico in accord-4 accord-4 anco with tho best practice now v in vogue in tho courts of the r'United. States. I regard this of -i- especial importance, first because 4- it has been promised; and, f-:ec- J v oud, because it will deprive those 4 4 who now complain of certain al- 4 4- leged abuses in the improper is- 4 4 suing of injunctions without no- 4 4 tice of any real ground for fur- 4-4 4-4 ther amendment and will take 4 4 away all semblance of support "for 4 4 the extremely radical .legislation 4 4 they propose, which v;iU he most 4 4 pernicious if adopted, will sap 4 4 tho foundations of judicial power, 4-4 4-4 and legalise that cruel social in- ! ,4 strument, tho secondary boycott. 4 '4. ,. ...... .i The treasury department, is one of the original departments of the sovornment. With the changes In the monetary system made from time to Mnm and with thu creation 6f national banks, It wu thought necessary to organize now bureaus and divisions which were added in a somewhat some-what haphazard way and resulted in a duplication of duties which might well now be ended. This lack of system and economic coordination co-ordination has attracted the attention of thii head of that department who has been giving his time for the last two years, with the aid of experts and by consulting his bureau chiefs, to Its reformation; re-formation; he has abolished 100 place In the civil service without at all injuring injur-ing Its efficiency; and at the risk of being tedious, but merely to illustrate the char-actor char-actor of the reforms that are posslulu, 1 shall comment on a number of changes that arc being made, or ought to be made, bv legislative aid. Tho auditing system in vogue Is as old ns the government and the methods used are antiquated. There are six auditors and seven assistant auditors for the nine departments, and under the present s;.?-tem s;.?-tem the only function which the auditor of a department exercises Is to determine, on accounts presented by disbursing officers, offi-cers, that the object of the expenditure was within the law and the appropriation made by congress for the purpose on Us face, and thai the calculations in the accounts ac-counts are correct. He docs not examine the merlin of the transaction or determine the reasonableness reasonable-ness of the price paid for (he articles purchased, nor does he furnish any substantial sub-stantial check upon disbursing ofliccrs and the heads of departments or bureaus with sufficient promptness to enable the government to recoup Itself In full measure meas-ure for unlawful expenditure. A careful plan Is being devised and will bo presented to congress with the recommendation recom-mendation that the force of auditors and employees under them be gi catty reduced, thereby effecting substantial economy. But this economy will be small compared with the larger economy that can be effected ef-fected by consolidation and change of methods. Tho possibilities In this regard have been shown in the reduction of expenses ex-penses and tho Importance of methoo's and efficiency In the office of the auditor for tho postofficc department, who, without with-out In the slightest degree impairing the comprehensiveness and efficiency of his work, has cut down the expenses of his office 5120.000 a year. Again. In the collection of revenues, especially the customs revenues, a verv great improvement lias been effected, and further improvements are contemplated. By tho detection of frauds In weighing sugar upwards of $3,400,000 havo been recovered re-covered from the beneficiaries of tho fraud, and an entirely new ss-stem free from tho possibilities of such abuse has been devised. The department has perfected tho method of collecting duties at the port of Now York so as to save tho government govern-ment upwards of ten or eleven million dollars: and the same spirit, of change and rerorm has been Infused into the other customs offices of the country. Archaic Methoda in Vogue. Tho methods used at many places are archaic. There would scorn" to bo no reason rea-son at all why the surveyor of tho poit, who really acts for tho collector, shoulu not be a subordinate of the collector at a. less salary and directly under his control con-trol and there Is but little reason for thu existence of the naval officer, who Is a kind of local auditor His work is mainly main-ly nn examination of accounts which Is conducted again in Washington and whlc results in no greater security to ho gov-ornment. gov-ornment. The naval officers In the various vari-ous ports are presidential apoolntees. ninny of I horn drawing good salaries, and those offices should be abolished or with reduced force made part of the central auditing system. .nJ.te ar ,cntlrcIy too many customs districts and too many customs collectors. These districts should be consolidated and wCICCitor8i 'P charse of tlicm, wh draw good salaries, many of them out ol Proportion to tho collections made, shoul, bo abol shed or treated as mere brunch offices. In accordance with the plan of ih. treasury department, which will be wc-.simted wc-.simted for the consideration of congress. As an Illustration, the cost of cotVccilny 51 of revenue at typical smuil purls 11 the port of York Mc . was 350 Ol" At t o :? i.0Ilect i of revenue: at "Vatchrr 5o2.76; at Alexandria'. Va , 5122.19 ' It is not essential to tho nrovont-fm?sUns nrovont-fm?sUns that customs districts ?i VId b, ,,nCroa5cd in number. The violation vio-lation of the customs laws can be oultc nomcal;,,bCv0,,,lCd and morcqcco-nonucaiii morcqcco-nonucaiii by the rcvonuo cutter service and by the use of the special agent Traveling Trav-eling force of the treasury department A reorganization of the special customs agents has been perfected with a view to retaining only those who have spodat knowledge of the customs laws, regulations, regula-tions, and usual methods of evasion; and with this Improvement, there will bc no danger to the government from ho rcc- cuToSC;!lsCtri:Sidat,0n and "'oCof .?mffv shown uiidur-appraisement and a sacrifice sac-rifice of tho ntcrests of tho government, which s In the course of helm; remedied by reorganisation and the employment of f-ompcieni exports. Prosecutions have been Instituted growing out of the frauds thrc discovered and nro now awaitlne hearing in the federal courts. Very great improvements have been Recommendation Is for Continuance Con-tinuance of Board Until Work Is Done. SHOULD CONSIDER ONLY ONE SCHEDULE AT TIME General Revision WoulcJ Result in Recurrence of Shock to Business. made In respect to the mints and assay offices. Diminished appropriations have been asked for those whoso continuance Is unnecessary, and this vear's estimate of expenses is 5326,000 less than two years ago. There Is an opportunity for further sa.ving In the abolition of several mints and assay offices that have ijow j become unnecessary. During the past year 100 unnecessary employees have been dropped from the Philadelphia mint. Modern machinery has been installed there, more and better work has been done, and the appropriations have been consequently diminished. In the bureau of cngnt-vlng and print- 1 j vj"!1 I v'l 4,4"I' "I"I,iI"IMI,4 'l"I"r4' ' 4 The yoar has been notable as 4 witnessing the pacific settlement 4 4 of two important international 4 4 controversies hoforo the permanent 4 4- court of The Hague. 4 4 The arbitration of tho fisheries 4 4 dispute between tho Unitod States 4 4- and Great Britain, which has been 4 4 the source of noarly continuous 4 4 diplomatic correspondence since 4-4 4-4 the fisheries convention of 1818, 4-4 4-4 has given ail award which 'is 4 4 satisfactory to both parties. 4-4 4-4 The tribunal constituted at The 4 4 Hague by the governments of the 4 4 United States and Venezuela has 4 4- completed its deliberations and 4 4 has rendered an award in the case 4 4 of the Orinoco Steamship com- 4 4 pany against Venezuela. The 4 4 award may be regarded as satis- 4 4 factory since it has, pursuant to 4 4 tho contentions of the United 4 4- States, recognized a number of im- 4 4- portant principles making fon a 4 4 judicial attitude in the deterniin- 4 4 ing of international disputes. 4 4- , .... ... .1 of 133,011,500 and I approved it because of the many good features It contained, Just as I approved tho uver and harbor bill, but it was drawn upon a principle that ought to be abandoned. It seems to mo thai tho wiser method of preparing a public building bill would bc the preparation of a report by a commission com-mission of government experts whoso duty it should bo to report, to congress the government's needs In the way of the construction of public buildings In every part of the country, just as the army engineers mako report with reference to the utility of proposed improvements In rivers and harbors, with the added function func-tion which I have recommended for the army engineers of Including In their recommendation rec-ommendation tho relative Importance of FORTIFICATION FOR PANAMA CANAL f X At the instance of Colonel Goothals, the army engineer officer in charge of the work on the Panama canal, X 4- I have just made a visit to the isthmus to inspect tho work done and to consult with him on the ground 4 T as to certain problems which are likely to arise in the near future. The progress of the work is most satiB- T T factory. If no unexpected obstacle presents itself, the canal will be completed well within the time fixed by T t Colonel Goethalo, to wit, January 1, 1915, and within tho estimate of cost, $375,000,000. X Press reports have reached the United States from time to time giving accounts of slides of earth of 4- f vory large yardage in the Culebra cut and elsewhere along tho line, from which it might be inferred that the -f work has beon much rotardod and that the time of completion has been necessarily postponed. T T Tho report of Dr. Hayes of the geological survey, whom I sent within the last month to the isthmus to T . make an investigation, shows that this section of the canal zone 13 composed of sedimentary rocks of X f rather we3k structure and subject to almost immediate disintegration when exposed to the air. 4- jp Subsequent to tho deposition of these sediments, igneous ricks, hardor and more durable, have been thrust 4 T into them, and being cold at the time of their intrusion, united but Indifferently with the sedimentary rock T at tho contacts. I 4- The result of these conditions is that as the cut is deepened, causing unbalanced pressures, slides from the 4 4 sides Qf the cut have occurred. 4 4 These are in part duo to the flowing of surface soil and decomposed sedimentary rocks upon inclined 4 4 surfaces of the underlying tmdccomposed rock and in part by tho crushing of structurally weak beds under T T excessive pressure. These slides occur on one side or the other of the cut through a distance of four or five T T miles, and now that their character is understood, allowance has been made in the calculations of yardage for I X the amount of slides which will havo to be removed, and tho greater slope will have to be given to the bank 4 4 in many places in order to prevent their recurrence. Such allowanco does not oxceod ten millions of yards. 4 4 Considering that the number of yards removed from this cut on an average of each month through the year 4 t is 1,300,000, and that tho total remaining to be excavated, including slides, is about 30,000,000, it is seen that t X this addition to the excavation docs not offer any great reason for delay. X 4- While this feature of tho material to be excavated in the cut will not seriously delay or obstruct the -f 4 construction of a canal of tho lock type, the incroaso of excavation due to such slides in the cut made eighty- 4- 4 five feet deeper for a sea level canal would certainly have been so groat as to delay its completion to a f T timo beyond, tho patience of the American people. t X Among questions arising for present solution is the decision whether the canal shall be fortified. I have 4 already statod to the congress that I strongly favor fortification, and I now reiterate this opinion and ask 4 4 your consideration of the subject in the light of tho report already before you made by a. competent board. 4 4 if? in our discretion, we believe modern fortifications to bc necessary to tho adequate protection and policing of the canal, then it is our duty to construct them. Wo have built the canal. It is our property. 1 By convention we have indicated our desiro for, and indeed undertaken, its universal and equal use. It is 4- also well known that one of the chief objects in tho construction of the canal has been to increase tho mill- 4 4 tary effectiveness of our navy. - 4 X Failuro to fortify tho canal would leave the attainment of both those aims in the position of rights and T 4 obligations which we should be powerless to enforco, and which could never in any other way be absolutely X 4 safeguarded against a desperato and irresponsible enemy. . ing great economics have been effected. Useless divisions havo been abolished, with tho result of saving 5140.000 this vear in the total expenses of tho bureau despite increased business. The treasurer's office and that of the division of public moneys in part cover the same functions and this Is nlso true of the office of the register and tho division di-vision of loans anil currency. Plans for the elimination of the duplication in these offlrcs will be presented to congress. The offico of the comptroller of the currency Is one ,most Important In the preservation of proper banking methods In the national bunking system of the j United States, and the present comptroller comptrol-ler has Impressed his subordinates with the necessity of so conducting their Investigations In-vestigations as to establish the principle that every bank failure Is unnecessary because proper Inspection and notice of threatening conditions to the responsible directors and officers can prevent it. PUBLIC BUILDINGS In our public buildings we still suffer from the method of appropriation which has boon so much criticised in connection connec-tion with our rivers and harbors. Sotuo method should be devised for controlling tho supply of public buildings, so that they will harmonize with the actual neod3 of the government. Not only are buildings appropriated for by congress which are not needed, and buildings left unappropriated for by congress which are needed, but when It comes to the actual construction there has beon in the past too little study of the building plans and sites with a view to the actual needs or the government. , Postofficc buildings which arc In effect ef-fect warehouses for the economical handling han-dling of transportation of thousands or tons of mall have been nindo monumental structures, and often located far from the convenient and economical spot. In tho actual construction of the bullding3 a closer scrutiny of, tho methods employed by tho government architects or by architects ar-chitects employed by the government have resulted In decided economics. It Is hoped that more lime will give opportunity oppor-tunity for a more thorough reorganization. reorganiza-tion. The last public building bill carried authorization au-thorization for the ultimate expenditure ".S'5' rCl'll0"g "r '"- '"' "1 aid of .pw,,!,!!,,,, ror mi, ., i '.!!! Ill m W nm -nn ii?r I s- sSsSS I c ? & g s " : Sr" 3 g r- 2S"fl I o 3 " r Ep : 5 :j?T3 ?2 -aT2 fc . , : 1 - 5 ic 2, " - s a. 6 2. v, J, o-. I F : o 2y : S : " a 21 - p-vs - :M c $ f i 1 5- 1 1 s '! !.l!?iUvo s i::,rjj.sor..73 5 i3.inn.67o.70i' $i:;',ifin.i)7:;oi$"r""nnlci4son ''rrv--i2ns?4rr- JSrtr:::: 'sl:":S?, '-fei5: '"j!:S? : SS'J - i!!:i?s8 SKX:. ftSSKS:8l aSSSiS H8HS:8 tBSJ-!J rj--jg-a : , 3,?rctA?'''w' AmS'ii, ,5:!br.s7s:''l M.iiJfeSsI ..H5;SS?:?f . :. 8?fl : jy-gas-o jsssri-., si ssa issi -"-i;?;!1 asf .'J''P, PrVOr ...I 110.101. 730. '.M I 1I7.02P.314.::? ll.'i,76S.Sh'O.S3 113 5iG S70 (4 isfiimrJ ..,.,. J . ,. Toia? nT U' I io.Q63.57r,.no 0.515.610.00 g.Mg.aaa'oo khsMYM mfuZ - -feoi - 1 ? JKtt M -'' tol 48.08n.S5l.70 52.007015000 .l7.32?:J.j . KcnjlliS '2 ?5 -RiVafJri,;,.,.;; 037-lll-S60-S11 CSt.iag.in7.2il 000.440.C01.28I 73J.ai3,g00.48Z.TgT25roT4B mToW tinllrS c-Indicatcs decrease. m- the various projects found to bc worthy of approval and execution. I REVENUES ' As the treasury department is tho one through which the incomo of the government govern-ment Is collected and its cxpondlturos are disbursed, this seems a proper place to consider the qpcratlon of the existing in riff bill, which became a law August 6, 1009. As an Income-producing measure, tho- existing tariff bill has never been exceeded by any customs bill In the history his-tory of tho country. The corporation excise tax, proportioned propor-tioned to the net. income of every business busi-ness corporation in the country, has worked well. The tax has beon easily collected. Its prompt payment Indlcatos that the Incidence of the tax has not been heavy. It offers, moreover, an opportunity opportu-nity for knowledge by the government of the general condition and business of all corporations, and that means by far the most Important part of the business of the country. In the original act provision was made for tho publication of returns. Tills provision pro-vision was subsequently amended by congress, con-gress, and the matter left to the regulation regu-lation of the president. 1 havo directed i the Issue of tho needed regulations and have made it possible for the public generally gen-erally to know from an examination of the record, the returns of all corporations, corpora-tions, the stock of which is listed on any public stork exchange or Is offered for sale to tho general public by advertisement advertise-ment or otherwise. The returns of those corporations whose stock Is not so listed or offorod for salts aro directed to bo open to tho Inspection and examination of creditors and stockholders of the corporation whose record Is sought. Tho returns of all corporations aro subject to tho Inspection In-spection of any government officer or to tins examination of any court, in which the return innrlc by tho corporation Is relevant and competent evidence. PAYNE TARIFF ACT The scheduler, of tho rates of duty In the Payne tariff act havo been subjected to a great deal of criticism, some of It Just, more of It unfounded, and to much misrepresentation. The act was adopted in pursuance of a declaration by the Jmrty which Is responsible for it that a customs bill should be a tariff for the protection of home Industries, the measure meas-ure of the protection to be the difference between the cost of producing the imported im-ported article abroad and the cost of producing pro-ducing It at home, together with such addition to that difference as might give u reasonable profit to tho homo producer. pro-ducer. The basis for tho criticism of this tariff is that In respect to u number of tho schedules the declared measure was not followed, but a higher difference retained re-tained or Inserted by way of undue discrimination dis-crimination in favor of certain industries and manufactures. Little. If any, of the criticism of the tariff bill has boen directed against the protective principle above slated; but the main body of tho criticism has been based on the charge that tho attempt to conform to tho measure of protection was not honestly . and sincerely adhered ad-hered to. TARIFF BOARD. The time In which the tariff was prepared undoubtedly was so short as to make It impossible for the congress and its exports to acquire the Information noccssary strictly to cmtform to tho declared mensure. In order to avoid criticism of this kind In tho future and for the purpose of more ncarlv conforming con-forming to thu party promise, congress il Its Inst, session made provision at. my ro-qiM.-st for the continuance of a board created cre-ated under the aiithorllv of the maximum maxi-mum and minimum clause of tho tariff bill, and authorised this board to expend the money appropriated under mv direction direc-tion for the ascertainment of tho cuat of MONEY SYSTEM HEEDSREFORM Careful, Non-Partisan Study. of Financial Methods Earnestly to Be Desired. COMPARISON WITH OTHER NATIONS IS INVALUABLE Cannot Develop Trade Unless Currency and Banking Are on Solid Basis. production at home and abroad of the various articles included In the schedules sched-ules of the tariff. The tariff board thus appointed and authorized has been diligent in preparing itself for the necessary Investigations. Th hope of those who have advocated the use of this board for tariff purposes is that the question of the rate of a duly Imposed shall become more of a business question and less of a political question, to bc ascertained by experts of long training train-ing and accurate knowledge. The halt in business and tho shock to business, due 'to the announcement that a new tariff bill Is to be prepared and put In operation, will be avoidod by treating treat-ing the schedules one by one as occaslor shall arlso for a change In tho rates ol each, and only after a report upon tlu schedule by the tariff board competent tc mako such report. It Is not likely that tho board will bc able to make a report during the present session of congress on any of the schedules, sched-ules, because a proper examination Involves In-volves an enormous amount of detail and a great deal of care; but I hopo to be able at the opening of tho new congress, .or at least during tho session of that congress, to bring to Its attention thu facts in regard to those schedules in the present tariff that may prove to need anieudment. The carrying out of th'is plan, of course. Involves the full co-operation of congresj in limiting the consideration In tariff matters mat-ters to one schedule at a time, because if a proposed amendment to a tariff, bill is to involve a complete consideration of all the schedules and another revision, then wo shall only repeat the evil from which the business of this country has In times past suffered most grievously by stagnation and uncertainty, pending si resettlement of a law afTecting all business busi-ness directly or Indirectly, and the efTccl of which no wise business man would Ignore Ig-nore In new projects and new Investments. Invest-ments. Benefit of Tariff Plan. I can not loo much emphasize ,the importance im-portance and benefit of tho plan above proposed for tho treatment of the tariff. It facilitates tho removal of noteworthy defects in an Important law without a i-Jiaturbance of business prosperity, which is even more Important to tho happlncn3 and the comfort of tho people than the elimination of Instances of Injustice In the tariff. Tiio inquiries which the members of tho tariff, board made during tho last summer sum-mer Into tho methods pursued by other governments with reference to the fixing of tariffs aaid tho determination of their effect upon trade, show that each government govern-ment maintains an office or bureau, the officers and employees of which have made their life work the study of tariff matter?, of foreign und home prices and cost of articles imported, arid the effect of the tariff upon trade, so that whenever when-ever a change is thought to bo necessarv in the tariff law this office is the soured of the most reliable Information as to tnc propriety of the change and its cfTect l am strongly convinced that we need .n tills government Just sqch an ofllco. and that It can bc secured by making the tariff bpord already appointed a permanent per-manent tariff commission, with such duties, du-ties, powers, and emoluments as it may seem wise to congress to give.' It has been proposed to enlarge tho board from three to t ve xhc present number Is cou-enlent, cou-enlent, but I do not know, that an increase in-crease of two mombcrs would be objoc-tlonable. objoc-tlonable. Whether or not the protective pollcy s to oe continued, and tho degree of protection pro-tection to be accorded to our homo Industries, In-dustries, aro quest ona which the Uni.. must decide through their ctioscn representatives: repre-sentatives: but whatever policy Is addled. addl-ed. It is clear that the nctt&vlu:-t nctt&vlu:-t on should bo based on an impartial facts continuous study of the BANKING AND I CURRENCY REFORM The method of Impartial scientific study by experts as a preliminary to legislation legisla-tion which I hopo to see ulllmatoly adopted as our nxd national policy with respect to the tariff, rivers and harbors, waterways and public buildings, also Is being pursued by a non-partisan monetary mone-tary commission of congress An exhaustive ex-haustive and most valuable study of tlV banking and currency systems or foreign countries ha-a been compiled. A comparison of tho business methods and Institutions of our powerful and tmc- I 4 4 I oaruostly urge upon congreEB 4-4 4-4 that at this . session general con- 4 4 sorvation legislation of the char- 4-4 4-4 acter indicated be adopted, 4 4 I have not thought that the 4 4 danger of disposing of coal lands 4-4 4-4 in the United States under the 4 4- presont lavB in largo quantities 4 4 was bo great as to call for their 4 4 withdrawal, because under tho 4-4 4-4 present provisions it is reasonably 4 4 certain that the government will 4-4 4-4 receive -the real value of the land. 4 4 But, in respect to oil lands, or 4 4 phosphato lands, and of gas lands 4 4 in tho United States, and in re- 4 4 spoct to coal lands in Alaska I 4 4 have exercised the full power of 4-4 4-4 withdrawal with tho hopo that tho 4-4 4-4 action of congress would follow 4 4 promptly and prevent that -tying 4 4 up of the resources of the country 4 4 in tho western and less settled 4-4 4-4 portion and in Alaska, which 4-4 4-4 means stagnation and retrogres- 4 4 slon. v : i-m-h-i : i i-i-i-i-i-i-i-r-i-'?' cessful rivals with our own Is sure to be of Immenso value. I urge upon congress the Importance of a non-partisan and disinterested study and consideration consider-ation of our banking and currency system. sys-tem. It is Idle to dream of commercial expansion ex-pansion and of the development of our national trade on a scale that measures up to our matchless opportunities unless we can lay a solid foundation in a sound and enduring banking and currency system. sys-tem. The problem is not partisan, Is not sectional it is national. WAft DEPARTMENT The war department has within Its Jurisdiction the management of the army, and, in connection therewith, tho coast defenses; tho government of tho dependencies depen-dencies of the Philippines and of Porto Rico; the recommendation of plana for the improvement of harbors and waterways, water-ways, and their execution when adopted; and. by virtue of an executive order, the suporviaion of the construction of the Panama canal. The army of tho United plates is a small body compared with the total number of people for tho preservation preserva-tion of whoso peace and good order it is a.Iast rocourse. Tho army ndw numbers about SO.OOO men, of whom about 18,000 are engaged in the coast artillery and detailed to the management and use of the guns In the forts and batteries that protect our coast. The rest of the armv, or about 60.000, Is the mobile pait of our national forces and is divldod Into thirty-one thirty-one regiments of Infantry. Including the Porto Rlcan regiment, nftecn regiments or cavalry, six regiments of field artillery, a corps of ordnance, of engineers, and of signal, a quartermaster's department, a commissary department, and a medical corps. n,?? fine,ral Plan for an army of the United States at peaca should be that ot a skeleton organization with an ox-cess ox-cess of trained officers and thus capable capa-ble of rapid enlargement by enlistments, tp be supplemented in emergency by the national militia and a volunteer to rcc. In some measure this plan has been adopted In tho very large proportion of wuiah7 ,a-"(1 "cM artillery as compared with infantry In (ho present army and on a peace basis. An Infantry force can be trained In six months; a cavalry or a light artillery force not under one and one-half or two years; hence the Importance of having readv a larger nuiiber of the more skilled soldiers. The militia system, for which congress by tho constitution is authorized to provide, pro-vide, was doveloped by the so called Dick aw. under which the discipline, the tae-llcs. tae-llcs. the drill, thfi rank, the uniform and the various branches of the militia are assimilated as far as posslL.!j to those pf the regular army. Undor the militia law, as the constitution provides, tho governors of the stales appoint the militia mili-tia officers, but. by appropriations from congress, states have been Induced to COllinlV M'Hll tl.n I t.Jvi iuiwo vi uburuiai.ion no- tween tho regular army and the militia. so that now there Is a forco. the efficiency effi-ciency of which differs In different states, which could bo Incorporated under un-der a single command with tho regular army, and which for some time each year receives the benefit of drill and maneuvers under conditions approximating approximat-ing actual military service, under the BUpervislon of regulor army officers. Volunteer Force Important. JP,.,1110 army of the United States, In addition to tho regular forces and . e millt a forces which may be summoned to the defense of the nation bv the president, there fs also the volunteer force, which made up a -very largo part pf tho army In the civil war, md which n any war of long continuance would become Its mo3t important constituent. There Is an act which datea from the civil war. known as tho volunteer act. which makes provision for the enlistment of volunteers In the army of the United States In time of war. This was found to be so defective In tho Philippine war that a special act for tho organisation of volunteer regiments. to take part in that war. wa3 adopted, and it was much better adapted to the necessities of tho case. There is now pending in congress a bill repealing tho present voluntoor act and making provision for the organization of volunteer forces in time of war. which Is admirably adapted to meet the exigencies which would bo then presented. pre-sented. Tho passage of tho bill would not entail a dollar's exponso upon tho government at this time, or in tho future, fu-ture, until war comes, but when war does come tho methods therein directed nro in accordance with the best military Judgment as to what they ought to bc. and tho act would prevent the necessity for tho discussion of new legislation and tho delaj-B incident to Its consideration and adoption, I earncstlv urge the passago pas-sago of this volunteer bill. I further recommoml that congress establish es-tablish a commission to detormino as early as practicable a comprehensive policy pol-icy for tho organization, mobilization and administration of the regular army, tho organized mllltla and tho volunteer forces in tho event, of war. NEED FOR ADDITIONAL OFFICERS. OFFI-CERS. Ono of tho great difficulties In the prompt organization and mobilization mobiliza-tion of militia and volunteer forces is the absenco of competent officers of the rank of captain to teach the new armv. b" tho unit of the company, the business busi-ness of bolng soldiers and of taking care of thcmsolves bo as to render effective service. This need of army officers can only be supplied by provisions of law authorizing tho appointment of a greater number of army officers than aro needed to supply tho commands of regular army troops now enlisted In the service. There aro enough regular armv offlcors to command tho troops now enlisted, but congress has authorized, and the department depart-ment has followed tho example of congress con-gress and exercised tho authority conferred con-ferred by detailing these armv officers ; to duty other than that of the command of troops. - i For Instance, there are a large mini- 1 ber of army officers assigned duty with military colleges or In colleges in ' which military training is given. Then ' a large number or officers ar assigned 1 to ger.p.ral staff duty, and there are various va-rious other places to which armv offlcors j can b and are legally assigned, -which 1 toko thorn away from their regiments ' and companies. 7n order that tho mllltla of each sfaf J should be properly drilled and made more like the regular army, regular armv off I- 1 cers should be detailed to assist the ud-. f Jutant general of each slate In the super- 4 vision of tho state, mllltla; but tlls Is r impossible unless provision Is made hv congress for a very considerable increase in tho number of company and field off I- L cers of the army. A bill was pending In the last session t of congress or this purpose, and I earn- c, cstly hopo that. In the interest of Urn s proper development or n republican e -irmy. an nrniy. small In the time of t peace but possible of prompt and ade-. n 11" Competent Men of Rank of Cap- I tain Needed to Teach H New Army. INCREASE EFFICIENCY OF I MILITIA OF BACH STATE H Officers in Regular Service H Should Be Detailed to Assist H Adjutant-General. H t quate enlargement In timo of war, shall become possible undor the laws of tho United States. A bill, the strong argument for which can be based on the ground quite Him!-ar Him!-ar to that of the Increased officers bill, is the bill for the Increase of sixty in the army of onglnoors. The army engt-neers engt-neers aro largely employed in the expon-diture expon-diture of tho moneys appropriated for the improvement of rivers and harbors. Tnls in addition to their military duties. which includes the construction of fort!-fjcatlons fort!-fjcatlons both of our coast and in our dependencies, together with the ntimh. used In the Panama canal work, re- fl qulrea many more engineers than tho army has; and this shortness of supply in such officers delays Important river and harbor work and important fortlflca- tlon work. T earnestly recommend, tho passago of this bill, which passed tho house at the last session and Is now pending In the senate. FORTIFICATIONS " I I have directed that the estimates for appropriation for the Improvement of coast defenses In the United St&tea s.iould be reduced to a minimum, while those for tho completion of the needed fortifications at Corregldor in the Philip-pine Philip-pine islands and at Pearl harbor In the Hawaiian islands should be expedited as much as possible. The proposition to make Olongapo and Sublg bay tho naval base for tho Pacific was given up, and It is to be treated merely as a supply station, while the fortifications in the Philippines are to be largely confined to Corregldor island and the adjacent Islands which command entrance to Manila bay and which are being rendered impregnable from land and sea attack. The Pacific naval base has been trans- fcrred to Pearl harbor In tho Hawaiian islands. This necessitates the heavy fortlflca-Hon fortlflca-Hon of tho harbor and the establishment of an Important military station near Honolulu. I urge that all the estimates made by tho war department for thOBe purposes bo approved by congressional approprla- PHILIPPINE ISLANDS I During the last summer, at my re-queBt, re-queBt, tho secretary of war visited tho Philippine islands, and has described his trip in his report. He found the Islands in a stato of tranquillity and growing prosperity, duo largely to the change In the tariff laws, which has opened the tho Philippines and has opened the Phil-lpplno Phil-lpplno markets to American manufac- The rapid increase in the trade be-tween be-tween the two countries Is shown In the following table: Phllipplno exports fiscal years 1908-1910 1908-1910 (exclusive of gold and silver): d o H Fiscal year & 1P0S.. ... 510,323.233 S22.-I93.334 ?32.816.6e7 jH 1909 10,215.331 20.778,232 30,993,563 1910 1S.711.771 21,122,398 39,S64.1fi9 Note. Latest monthly returns show exports for the year ondlng August. 1910. to the United Slates. $20,035,902. or 49 per cent of tho $11,075,738 total, against $11,031,275 to tho Unitod Statea. or 34 per cent of the $32,183,871 total for IH the year ending August. 1909. Philippine imports, fiscal years 190S- 1910 (exclusive of gold and silver and government supplies): . Fiscal year c M 1908 $ 5.079.4S7 $25.S3S,S70 330,915.357 1909 ..... 4.691.770 23.in0.rt27 27,792.397 JM 1910 .. .. 10.775.301 26.292.329 37.0l7.ij30 Note. Latest monthly returns show imports for the yoar ending August 1910. 1 from the United States. $11.G15.9S2. of 30 per cent of the $39,025. 6G7 total. against $5,193,119 from the United States, or IS per cent of the $2$.fU8.01 1 total for the year ending August. 1909. PORTO RICO. H The. year has been one of prosperity md progress In Porto Rico. Certain no- jjH lit leal changes are omboilied in tho bill ll 'to provide a civil government for Porto Rico ntul for other purposes" which H utsyflU tho house of representatives on H hmev15, 1910. at the last session of eon- H ;rcss. and Is now awaiting tho action of H The Importance of those features of H .Ills bill rcUilliig to public health and H sanitation cannot be overestimated., H The removal from polities of the Judi- M ;lavy by providing for the appointment H f the municipal Judges is excellent, and H recommend that a step further be taken H y providing therein for (he appointment H f secretaries and marshals or these H T believe, that the provision in the bill H or n. partially elective senate, the num- H cr' of elective members being progres- H Ively increased, is unwise, and that the iH ompositlon of the senate as provided in 'H he bill ns introduced in the house far H letter meets conditions existing In H 'orto Rico. This is an Important men- H ure and I recommend its early consld- H ration and passage. H RIVERS AND HARBORS I have already expressed my opinion ,H 3 congress In respect to the character f Hid river :ind harbor bills wliiHi H hould l) enacted Into law, and 1 hav? iH vorclsed as much powr as r ha vn'unthM- jl if law in directing tho hlef of oukI- crs to mako his reports to congress iH I Declares "Pork Barrel" System Must Cease I I M il Strongly Urges Necessity of . Building Works Commciisur-I Commciisur-I ate With Importance, i i FAILURE MIGHT RESULT j IN GRAVE COMPLICATIONS ! System of Safeguards Would j Be of Immeasurable Value to Navy, i i " : TOiiorm to the needs of tlic committee ' framing such ;i bill In determining which , of tho propositi Improvements ia the more Important ami ought to be com-( com-( plotcd first, and promptly. 1 PANAMA CANAL' , At tho instance of Colonel Gocthals. tho army engineer officer in charge of the work on the J'anamn canal. 1 have Just mude a visit to (he isthmus to Inspect In-spect tho work done and to consul L with i I him on the ground as to certain prob-I prob-I loms which are likely to arise in the near future. Tho progress or the work Is most , I satisfactory. If no unexpected obstacle presents itself, tho canal will be com-i com-i plotcd well within iho time fixed by ' Colonel Gocthals. to wit. January J. IPlf. I and within the estimate of cost, W75.-1 W75.-1 OUO.noo. I Tross reports have reached I ho Unil-f Unil-f cd States from time lo time giving ac-I ac-I counts of slides of carlh of very largo 1 1 yardage In the Culcbra cut and clsc-i clsc-i where along tho line, from which it ; might be inferred that tho work has l been much retarded and that the time 1 of completion has been necessarily poat-1 poat-1 poned. The report of Dr. Hayes of the geological geo-logical survey, whom I sent within tho last month to tho Isthmus to make an , investigation, shows that this section of t 1 tho canal r.one Is composed of sodl- memory rocks of rather weak structure i and subject to almost immediate dls- : I integration when exposed to tho air. 1 1 Subsequent, to tho deposition of these "lI-I'IHIHnvIIHY i .;. .J. Quite aside from the commercial v aspect, unless wo crcato a v mcrcliant marine, whoro cau wo ! 4 find tho Beafariug population nocossary as a natural naval ro- v i sorvo aud where could wo Und, in 4 casa of war, tho transports and v 1 4 subsidiary vessels without which 4-14 4-14 a naval fleet is arms without a 4-( 4-( 4 body? For many roauons I can v 4 not too strongly urgo upon tho 4 4 cougresB the passago of a inoasurc 4 4 by mail subsidy or other subven- 4-4 4-4 tion adcriuato to guarantee tho 4 4 establishmont and rapid dovolop- 4 4 ment of an American morchant - 4- marine, tho restoration of tho 4 4 American flag to its ancient placo 4 4 upon the seas. 4- Of course .inch aid ought only 4-4- vo bo given under conditions of v 4 publicity of oach beuciiciavy's 4 4 business and accounts. which -: 4 would show thai, tho aid rccoivecl 4 4 was needed to maintain tho trade ! 4 and was proporly used for that 4-4 4-4 purpose. 4; 4-1 4ri r.-r4,444i!4!!5iJM!I4 Ir-I'4'4-! j rluded that tho total tonnage of the vos- i arts employed in commerce thai could use tho isthmian canal In 1911 would amount to t)'.Sl.".S0r tons not reirlsuer. and that this traffic would Increase -i'.l per cent per decade: that il was not probable that all the commerce Included in the tolaja would at once abendon the routes at present followed and make use of the now canal, and that It might take some time, perhaps two years, lo readjust trade with reference lo the new conditions which the canal would establish. lie did not include, monnncr. the tonnage ton-nage of war vessels, although it Is lo be inferred that such vessels would make considerable ns of the cauul. In the matter of lolls he i cached the conclusion that a dollar a net ton would not drive business away from tho canal, but that a. higher rate would do so. In determining what the tolls should be wc certainly ought not to Insist that for a good many years to come they should amount to enough to pay the interest on (he Investment of $100.000 000 which the l"nl ted Stales has made In the construction construc-tion of the canal. Wi ought not to do tills, first, because the bonetila to be derived de-rived by the Ignited Slates from this expenditure ex-penditure Is not to be measured solely by a return upon the In vosilnicnt. If it were then the construction niinht woli have been left to prlvaio enterprise. It was because an adequate return upon the money invested could not bo expected Immediately, or in tho near future, fu-ture, and because there were peculiar political advantages to be derived from tho construction Of the canal that it necessarily foil to the govern men t to advance ad-vance the money and perform the work. In addition to tho beneilt to our navai strength, the canal greatly Increases the trade facilities of the United .Slates. Ii will undoubtedly cheapen the rates jf 'JiBBIi II lit i Crying Need Is Cheapening the Cost of Litigation by Simpli-j Simpli-j lying Procedure. j INC MEASE IN SALARIES j OK JUDGES K ECO MM EN DEI) l Kurllicr Mention Made of Using i Process of Injunction With Care. of the equipment of the railway will .all rcqnlic a force, not. of course, to bo likened lik-ened In anv way lo tho present organization organi-zation for construction, but a skilled body of men who can keep in a stale of usefulness use-fulness Ihla great Instrument of commerce. com-merce. Such an organization makes It en:y to Include within its functions tho fur-ulshliii; fur-ulshliii; of dry dock, fuel, repairs and supply sup-ply facilities to the hade of the world. These will be mom essential nt the Isthmus Isth-mus of Panama lhan they are at Port .Said or Suez, because there are no do-pots do-pots for coal, supplies, nil olhcr coni-merelal coni-merelal necessities within Ihouj-ands of miles of the Isthmus. , To Avoid Discrimination. Another Important reason why these nncl'lary duties may be undertaken by !he government Is the opportunity for discrimination between palions of lliu canal that Is offered where private concessions con-cessions pre granted for Ihc turnlahlng of these facilities. Nothing would create creator prejudice scnlnst the canal than the suspicion that certain lines of traffic were favored in the furnishing of supplies or that lite supplies wcro controlled by any huge interest in-terest that might have a motive for in-creasiiiR in-creasiiiR the. cost of tho use of tho canal. It may be added that the termini ai? net amplo enough to permit the fullest competition in respect lo tho furnlHhlr.g of the?o friellltios and necessities lo the world 8 trade even If It were who to Invito In-vito sueh competition aud the granllncrof the concession would necessarily, under t DISPOSAL Of NATURAL RESOURCES f 4- . 4- I For the reasous stated iu the conservation addross, T recommend: 1 1 T "First, that tho limitation now imposed upon tho executive which forbids his reserving more forest I ' x. lands in Orogon, Washington, Idaho, Montana, Colorado and Wyoming, bo repealed. " 4. 4- Second, that the coal deposits of the government bo leased after advertisement inviting competitlvo bids. -f , 1 for terms not oxeceding fifty years, with a minimum rental and royalties upon the coal mines, to be readjusted 4- every ten or twelve years, and with conditions aa to maintenance which will secure proper mining and to as- , signmeuts which will prevent combinations to monopolize control of the coal iu any one district or market. I t 4. do not think that coal measures under 2500 acres of surfaco would bo too largo an amount to lsase to any 4. ft , , 4- ono lessee. The secretary of tho interior thinks there are difficulties in tho way of leasing public coal lauds, 4- , j 4- which objections ho haB set forth in his roport, the force of which I freely concede I entirely approved his M J slating at length in his report, tho objections in order that tho wholo subject may bo presented to congress, ' 4. but after a full consideration I favor leasing systom and recommend It. J 1 4. Third, that the laws should provide the same separation in respect to government phosphate lands of T, , 1 4- surface and mineral rights that now obtains in coal lauds and that the power to lease such lands upon terms and limitations similar to those above recommended for coal loasos, with an added condition enabling the gov- 4- 1 emment to regulate and if need bo prohibit tho export to foreign countries of tbo product. 4- 1 Fourth, that the law should allow a prospector for oil or gas to have tho right to prospect for two " ' J 1; years over a certain tract of government land, the right to bo evidenced by a license for which he shall pay a T I . 4. small sum, and that upon discovery a lease may be granted upon terms securing a minimum rental aud propor 4. I royalties to tho government, aud also the conduct of the oil or gaa well in nccord with tho best mothod for 4- husbanding the supply of oil in tho district. The period of the leaseB should not bo an long as those of coal, 4- j t; but they should contain similar provisions as to assignment to prevent monopolistic combinations. ;f Tifth. that water power sitps be directly leased by the federal government, after advertisement and bid- 4. 4. ding, for not exceoding fifty years, upon a proper rental aud with a condition fixing rates charged to tho pub- -f 1 4- lie for units of electric power, both rental and rates to be readjusted equitably evory ton years by arbitration 4- '1 or otherwise, with suitable provisions against assignment to provent monopolistic combinations. Or fli.it tho I 1; law shall provide that upon application made by the authorities of tho state where tho water power site 'wa3 t 4. situated, it mav be patented to the state on condition that the state .shall dispose of it under terms like those just described, and shall enforce those terms, or upon falluro to comply with the condition the water 4 ' 4- power site and all the plants and Improvements upon the site shall bo forfoited and revert, to tho United 4- 't States, the president being given power to doclaro the forfeiture and to direct legal proceedings for Its en- T I! forcomeut. Either of these methods would, I think, accomplish the proper public purpose iu rospect to water I ' . power sltea, but one or tho other should be promptly adopted. 4 4. 4- j M M 4 m M M H M M t ! sediments, igneous rocks, harder and . mere durable, have been thrust Into ! them, and being co'd at the lime of their intrusion united but indifferently with the sedimentary rock at the con- 1 The rcuult of these conditions is that ao the out Is deepened, causing unbal-anc.ed unbal-anc.ed pressures, slides from the sides of the cut hove occurred. These arc In part due lo the flowing of aurfaco soil and decomposed sedlmen-tary sedlmen-tary rocks unon Inclined surfaces of the uudcrlving uudecomposcd rock aud in 1 part by the crunhiiig of slruet orally 1 weak beds under excessive pressure. These slides occur on one side or the other of tho cut liirongh a distance of 1 I four or five miles, ami now that their character Ih understood, allowance has hcen made in the calculations of yardage 1 I for'thu iimount or slides which will ha.vc to be removed, and the greater slope 1 . will have to be given to the bank in B I many places in -order to prevnt their H I recurrence. Such allowance docs not ex- . I coed ten millions of yards. Coneirier- ing I hat the number of yards removed from Ibis cut on an average of each 1 , mouth through the. year ic 1.300.000. and 1 Hist the total remaining lo be excavated, l . including slides, aliout JSO.OOO.OOO yards. It. is seen that this addition 10 the e.v- 'ravatfon docs not. offer any great rca-B rca-B con for delay. Favors Fortification of Canal. ' TSIiilo this feature of tho material to lj ho excavated In the cut will not :;c- ' j ' liously delay or ooHiruct the construc-H, construc-H, ' -J Hon of a. canal ot the lock type, the In-- H ' crcn-se of excavation due to such slides H Jn the cut made eighty-five feet, deep- H er for a sea level canal would certaln- H ly huvo been so great as to delay Its H completion to n lime beyond tho pa- H tienco of the American people. H Among qucstlouH arising for present fl uolutlon Is the drclftlon wlu-thei' the fl canal rhall be fortified. 1 have already H tated to Ihc congress that I strongly H favor fortification, and I now reiterate H ) , . this opinion and ask your consideration H of tlio subject In the light of the, 10- H 1 port already before you made by .-a com- H 1 i potent hoard. H ) . Tf, in our discretion, we believe mnd- Hl ) - j cm fort ill cations to be necessary to tho 1 , adeauatc protection and policing of the 1 , '' canal, then It Is our duty to construct H " ( i them. We have built the canal. It Is , our property. By convention we have indicated our desire for. and indeed 1111- ' ;t dertaken. its universal and equal use. II .M'.i I1, Is also voll known that one of the chief H '. j " ' i objects In the construction of the canal j . q 'M has been to Increase the mllitury cf- Hi.'; ijl fcctlvnnesB of our nay. 1 . Failure to fortify ihc canal would L 41 I leave the attainment of both these aims H jl ')( in tho position of rights aud obligations L 1 i Mhich wo should be powerless to en- l.jt I j force and wl.Ich could never in any J, ti .' other way be absolutely safeguarded H. ii against a deepcrate and Irresponsible I.) 1 CANAL TOLLS, Another question J, I, which arlsog for consideration and pocsi- 1 'i I blc legislation is the question of tolls in K b the canal. This question Is necessarily J' 1'' j ' nffectod by the probable tonnage which ijj will go through the canal. It Is all a 1 j matter of estimate, but ono of xhe govem- H , ment commission In 1000 Investigated the Hi I ( question and made a icport. lie con- hH-4-f t t t t M t M U 4--f transporlntion in all freight between the eastern and western seaboard, and it will greatly increane that trade by reason of the reduction In itii co't. Then. If wo are lo have a world canal, and If we are anxious that the routes of the world's trade shall be throuch tho Panama. can.'N, wc must, recognise thai wo havo an active act-ive competitor In tho Suer. canal, Then. too., there arc other means of crossing tho Ir.thmus by ilie Tehuante-pec Tehuante-pec railroad anil by other railroads and freight routes In Central America to the Atlantic side. Cheap Tolls in Canal.' In all the.e cs.sea the question whether the Panama canal is to be used and lLs tonnage Increased will be determined mainly by the charge for its use. My own Impression 13 that the tolls onglu not io exceed JI per net ton. On January Janu-ary 1. 1911. the tolls in the Sue7: canal are to be 7 francs and 2f centimes for one net ton by Hue;; canal measurement, which is a inodlllcalion of Danube measurement. meas-urement. A dollar ton will secure under tho 'IgurcK aliovo a gross Income from Hie P.unuma canal of nearly $7,000,000. Tiio cost of inainlcnarce and operation Is c.hll-matod c.hll-matod to exceed ?r..00il,000, Ultimately, of course, with th'e normal Inciease in trade, the Income will approximate ap-proximate the Interest charges upon tin; Investment. On tho whole I should recommend that within reiiRln limlt.s ihc president be aulhorl7.d to fl the tolls of tho canal and adjust them to what seems lo be commercial necessity. Tho Inquiries already made of the chief engineer or the canal show that the present pres-ent consideration of this question Is necessary nec-essary In order thai the commerce of the world may have lime to ad lust llKIf lo the new conditions resulting from ;ho opening of this new hlghwav. Tho next question that arises is as to I he nialntonanec. management and general gen-eral control of the canal after its completion. com-pletion. It should he premised that it is an essential part of our navy establishment establish-ment to have the coal, oil and other sh'p supplies, -i dry dock, and repair shops conveniently located with rcferonco to naval vcsfcIs passing through the canal. Now. If the government, for naval purposes. pur-poses. Is to undertake to furnlnh tlies-convenience tlies-convenience lo the navy, and they arc conveniences equally required In- 0m mercial vessels, there would seem to bn ? .,0'ln rrttS0,,s wliy the Kovcrurncnt should take over and include In its management man-agement the furnishing, noi only lo the navy bul to Ihe public dry dock nn-i repair shop facilities, and the sale ot KOli)i " 0,1,,;r whip supplies. The maintenance of a lock canal of hit. enormous sir! In a sparsely populated popu-lated country and In the tropics, where the dniiKor from disease Is alwavs preb- wnii TiV.'1'0? a ,;u?u ?mJ complete and well trained organisation with full police po-lice powers exercising Ihe utmost core. The visitor to the canal who is lm pressed with the wonderful fn-edom from tropical diseases on the Islh.nus rnSs not be 111 sled as to tho constant vlgl- eStio'n'?1 '3 nCf,Cd 10 I"" neToaTya crvatlon of the banks of the V, i Prro; slides, the operation and the maintenance these crciimstances. take on the appearance appear-ance of privilege or monopoly. I can not close this refeienco to the canal without suggesting as a wine amendment lo tho Interstate commerce law a provision prohibiting Interstate commerce railroads from owning or controlling con-trolling ships 'engaged In the trade through the Panama canal. 1 believe such x provision may be needed to save to tho poop;, of tho ITnllcd States Ihc benefits of the competition in trade between the eastern and western seaboards which this canal was eonslructd to secure. I DEPARTMExNT OF JUSTICE" The duties of the department of lusticc have been greatly increased by legislation legisla-tion of congress enacted in tho Interest of the general welfare of tho people and extending its activities Into avenuco plainly within Its constitutional Jurisdiction, Jurisdic-tion, but which It has not been thought wIfo or necessary for Ihc general government gov-ernment io occupy. I .itn glad to say that, mirier the. appropriations appro-priations made for the department the attorney general has so Improved Its 01-ganlr.atiou 01-ganlr.atiou that a vast amount of litigation litiga-tion and a civil and criminal character haa been disposed of during the current year. This will explain the necessity for slightly Increasing the estimates for the expenses of the department. T lis report shows the recoveries made tin behair of Ihe government, of duties fraudulently withheld, public hinds Improperly Im-properly patented, fines and penalties fot tu-xpas:?. prosefinions :,r,d o.m lotions under un-der ; Ihc anil-trust law. and prosecutions under the Interstate commerce law. I invite special attention to ihe proso-cu proso-cu Ions under tho federal law of tho so-ca so-ca led- "bucket .shops," and of ihoso schemes to defraud in which (ho use of the mall ia an esuonllal part or the fraudulent fraud-ulent conspiracy, prosecutions which hava rawd Ignorant and weak members or r Jmi,,e ,,n;1 iS".T ''"K Hi"'" hundreds of millions of dollars. The violations of Ihe antl-lrusl law present perhaps the mot Important lit- galion before Ihe department, and Si',. number of cases tiled ,bow tlU uctlvlly statue? govornmcnt -!-orclt,g thai NATIONAL INCORPORATION. In -jl bpecia message Inst year J brought to the at cm Ion of congress the propri.-tv enacting a Keneral law piovldlng for the Incorporation of Indus-rial Indus-rial and other coinpanloH engaged in interstate commerce, and I ionew mv recommendation in that behalf. CLAIMS, I Invite the attention or congress to the groat number or claims which, at the Instance of- congress, have been considered by the court of claims and decided to bo valid claims against the government. The delay that occurs In the payment of the nionev duo under the claims Injures the reputation of tho government nc an honest debtor, and I earnestly recommend that those claims which come to congress wltl. the judgment judg-ment and approval of the court of claims should bo promptly paid. JUDICIAL PROCEDURE. One great crying need In the United States is cheapening the cost of litigation by simplifying sim-plifying judicial procedure and expediting expedit-ing final Judgment. Uryler present con- HrH::II"t'HH !"H-M , ; ! Tho volume of business obtained ! in jtow fields of competition and ! upon new lines is already vory ! 1 great aud congress iB ttrgod to 'V continuo to support tho depart-I depart-I mont of state in its endeavors for i ! furthor trade expansion. n !- Our foreign trado merits tho I best support of the govornmcnt and tho most earnest endoavor of I our manufacturers and merchants, 5 who, if thoy do not already in all v caaos need a foreign market, aro I- certain soon to becomo dopondont i n on it, Therefore, now is tho timo to secure a strong position In this ! I field. ! 1 I cannot loavo this subject without emphasizing tho necessity ! !! of such legislation a.i will mako 1 v possible and convcnlout the estab- ! -I- Jishmcnt of American banks and v I- branclios of American banks in J v foreign countries. -V dllions the poor man Is at a woeful disadvantage dis-advantage hi a logal contest with a corporation cor-poration or a rich opponent. Tho necessity neces-sity for tho reform cxluta both in United States courla and In all state courts. In order to bring It about, howovor. It naturally nat-urally falls to the general government bv Itn example to furnish a model to ail t-talc s. A legislative commission appointed by joint resolution of congress lo rovloo the procedure in the lulled Slatea courts has as yel. made no roport. Under the law tho supremo court of tho United fJtates has tho power and la given the duty to frame the eqnltv rules of proccdifre which aro to obtain "in tho federal courts of first Instance. In view of the heavy burden of pressing litigation which that court baa had lo carry, with one or two of Its members Incapacitated through 111 health. It has not been ablo to take up problems of Improving the equity pioecdurc, which has practically remained Ihe nntno since the organization organiza-tion of the court In 17S0. Il Is reasonablo to expect that with all the vaennrlc3 upon the. court tilled, it will take up the question of cheapening and simplifying the procedure In equity In tho courts of the United States. Tho equity business Is much the more Important Im-portant In the federal court3, and T may add much Ihe more expensive. I arii strongly convinced that the best method of Improving judicial procedure at law Is to empower tho supreme court to do It through the medium of the rules of the court, as In equity. This Is Ihe way In which It has been done In Rngland. and thoroughly done. The simplicity and expedition of procedure proced-ure in the ISngllnh courts today mako a model for the roTorm or other systems. Several of the lord chancellor? of I3ng-land I3ng-land and of the chief justices have left their lasting Imprcpu upon the history of their count it bv their constructive ability abil-ity In proposing and securing tho par.sage f remedial legislation effecting law re forms. I cannot conceive any higher duty that the supreme court could perform per-form than In leading tho way to n. sliii-nllflcatlon sliii-nllflcatlon of procedure In tho United StatcB courts. RELIEF OF SUPREME COURT FROM UNNECESSARY APPEALS. No man ought to have, as a matter of right, a review of hhi case by tho supremo court. Ho should bo satlsllcd by 0110 hearing before a court of llrst itistanco and one review by a court of appeals. The proper prop-er and chief usefulness of tho Hiiprcme court, and especially of tho supreme court of the United Statea, is. in the cases which come before If. ao to ex-pound thn law and especially the fundamental law the constitution, na to furnish precedents prece-dents for the Inferior courts In fuluro litigation and for the executive officers In the construction of statutes and the performance of their legal duties. Therefore, any provisions for. review 'of cases by the supreme court thul cant upon that court the duty of passing on questions of evidence and the construction construc-tion of particular forms of Instruments, like Indictments, or wills, or contracts, decisions not of general application or importance, merely clog and burden tho court and render more difficult iUi higher high-er function, which makes It so Important Import-ant a part of the framework of our government. gov-ernment. The supreme .court lo now carrying an unheceaaary burden of appeals ap-peals of this kind, and I earnestly urge thai It be removed. The statutes respecting tho review by the supreme court or tho United Slates of decisions or the court or appeals of the District of Columbia ought to bo so amended as to place that court In tho same position with respect to the review oT its decisions as that of tho various United States circuit courts of appeals. Tho act of March 2, 1907, authorizing appeals by tho government rrom certain judgments In criminal cases where the defendant ha.M not been put In jeopardy, within the moaning of tho constitution, should be amended so that such appeals should be taken to the circuit, courts of appeHls Instead of to tho supremo court In all cases except thono involving tho construction of tho constitution or the constitutionality of a. statute, with tho same powor In tho supremo court to review re-view on certiorari Is now exorcised by that court over determinations of tho several circuit courts of appeals. Ap-pealo Ap-pealo In copyright cases should reach final Judgment in tlio court of appeals instead of tho supreme court ao now. The decision ot the courts of appealo should bo mude final aleo In all cases wherein Jurisdiction results on both ad-verco ad-verco citizenship and tho existence of a federal question, and not as now be reviewable In the suprome court when tho cane Involved more than 51000. Appeals Ap-peals from the United States court In Porto UIco should also run to tho circuit courts of appeals ot tho third circuit Instead In-stead of to the supremo court. These suggested changes would. I am advised, relieve the supremo court of the consideration of about eighty cases annually, and would ho In harmony with the theory of rovlcw which led to tho establishment or the circuit courts or appeals and which 1 havo slated above. Tlio American liar association has had before 11 tho question or reducing tho burden of litigation involved in reversals 011 review and now trials or rehearlngfi and In frivolous appeals In habeas corpus and criminal cases. Their recommendations recommenda-tions havo been embodied Iu pills now pending In congress. Tho recommendations recommenda-tions are not' radical, but they will accomplish ac-complish much If adopted inlo law, and I earnestly recommend tho passage of the bills embodying them. INJUNCTION BILL. I wish to renew my urgent recommendation mndo In my bust annual message Irl favor of the passage of a law which shall regulate the Issuing of injunctions In oqulty without with-out notice In accordance with the best practice now in vogue In tho courts of the United States. I regard Ibis of especial es-pecial importance, first because It baa been promised, and, second, because it will deprive those who now complain of certain alleged abuses in the improper issuing is-suing of injunctions without notice of any rcnl ground for furthor amendment and will take away nil semblance of support sup-port for the extremely radical legislation they propose, which will be most pernicious per-nicious if adopted, will sap tho foundations founda-tions of judicial power, and legalize that cruel social Instrument, the secondary boycott, JUDICIAL SALARIES. I further recommend rec-ommend to congress the passago of tho bill now pending for the Increase In tho salaries of the federal Judges, by which the chief Justice of tho suprorno court shall receive ?17.500 and the nssoclato justices 17,000; the circuit Judges constituting consti-tuting the circuit court of appeals shull receive ?10,000, and the district judges 0000. These Judges exercise a wide jurisdiction jurisdic-tion and their duties icqulrc of tliem a profound knowledge of the law. great ability In the dispatch of business, and care and delicacy In the exercise of tholr Jurisdiction so as to avoid conflict whenever when-ever possible between the federal and the state courts. The positions they occnp ought to bo filled by men who have shown the greatest great-est ability in their professional work at the bar. and It is tho poorest economy possible for the government to pay salaries sal-aries so low for judicial service, ns not to BEIKDEPENDEKT Believed Better Service Could Bo Had if Politics Were Kliminafod. POSTAIi DEFICIT WMI) OUT BV ADMINISTRATION Savings Banks Will Be Inaugurated Inaugu-rated in Many Places January I. be nblo to command the best talent of the legal profession In every part of the country. Tho cost of living Is euch. espoelallv In Ihc largo cities, thai even tho salaries fix-rd In tbo proponed bill will ennblo the IncumbontB to accumulate llttlo If anything any-thing to cupport their families after their death. Nothing in so Important to the preservation preser-vation of our country and Us beloved Institution In-stitution A3 the maintenance of tho Independence In-dependence of the Judiciary, and next to the life tenure an adequate salary la the nioRt material contribution to the ,maln-tcnanco ,maln-tcnanco of Independence on the part of our judges. P0ST0FP1CK DEPARTMENT"! POSTAL SAVINGS BANKS, At Its last pc3sIon cougrcs.'j made provision for tho establishmont of savings banks by the poalofflce department of this government, gov-ernment, by which, under the general control of trustees, constating of tho postmaster general, tho serrctnrv or the treasury and the. attorney general, tho system could bo bosun In a fow cities and towns and as large a part of tho country as seemed wise. Tho Initiation and establishment 0r such a system has required a great deal of sludy on the pari of tho exportn "in the postofflce and treasury department but a system has now been deviser! which in believed to bo nioro economical and simpler in Its operation than any similar system abroad. Arrangement:; hao been perfected so that savings banks will ho opened in some cities and towns on the first of January, and there will bo a. grndnal extension ex-tension of tho benefits of the plan to tho rest of the country. WIPING OUT OF POSTAL DEFICIT. As I have said, tho poslolfice department depart-ment Is a great business department, and I am glad to nolo tho fact that under Its present management principles of buslnesp" economy and efficiency aro being be-ing applied. Kor many years there has been a deficit In the operations of tho post-offlco post-offlco department which haa been met. by apnroprlatlons from the treasury. Tlio appropriation estimated for last year rrom tho treasury over and above the recclDts of tho department was J17.500,-000. J17.500,-000. 1 am glad to record tho fact that of that $17.1500,000 estimated . for. $ll,fiPA-000 $ll,fiPA-000 woro saved and returned lo le treasury Tho personal ofTorts or the postmaster general secured the cffcctlvo co-operation of the thousands of postmasters post-masters and other postal officers throughout tbo country In carrying out his plans of reorganization and retrenchment. retrench-ment. Tho result Is that Ihe postmaster general gen-eral has been able to mako his estimate of ''expenses for the present year so low as to keep within tho amount tho postal service Is expected to earn. It la gratifying grati-fying to report that tho reduction In the deficit baa boon accomplished without any curtailment of postal raelllllcs. On the contrary, the service has been greatly great-ly extended during the year In all Us branches. A principle which the postmaster general gen-eral has recommended and sought to havo unforced In rospect to all appointments appoint-ments has boon that those appointees who havo rendered good service should bo reappointed. This has greatly strengthened the Intorest of 'postmasters throughout tho country hi inalntulning efficiency and economy In their office, because they believed' generally that this would secure for them a further tenure. EXTENSION OF 'THE CLASSIFIED SERVICE. Upon tho recommendation of the postmaster goncral 1 have Included Includ-ed in the c'lassllled service all assistant postmasters, and I believe that this giving giv-ing a secure, tenure lo those who aro tho most Important subordinates of postmasters post-masters will add vuch to the efficiency of their offices and an economical administration. ad-ministration. A turgo number of tho fourth closs postmasters are now in tho classlllod service. I Ihlnk It would bo wise to put iu the classified service the first, second and third class postmasters. II. is more log leal to do this than to classify tho fourth class postmasters, for Ilia reason that tho fourth class postoffices aro invariably in-variably smull, and tho postmasters arc necessarily men who must combine some other business with tho poRtmaslorship, whereas the first, second and third class postmasters arc paid a sufficient amount to Justify tho requirement that they shall have no other business and that thoy shall devote their attention to their post-office post-office duties. To classify first, second and third class postmasters would require the passage of an act changing the mothod of their appointment so as to tulce away tho necessity nec-essity for the advice and consent of the 4. t v I In my jnonnago of lBt year I 4 reconnnonded tho creation of a bnroau of health, in which should -I 4- ho onihracod all those government -r J agencicn outside of tho war and v-I v-I navy departments which ate now I diroctod toward tho preservation v of public hoalth ot oxcrclso func- y 4 tlona germane to that suhjoct. I y 4 renow thin recommondation. y 4 I greatly regret that thosagita- y 4 tion in favor of thia bureau has y I arousod a counter-agitation against 4-4 4-4 Its creation, on tho ground that 4 4 tho establishment of such a bu- 4 roau is to bo In tho Interest of a 4-4 4-4 particular school of modlclne. It 4 4 scorns to ino that this assumption 4-4 4-4 io .wholly unwarranted, and that 4 4- those responsible for tho govern- 4 I- mont cau ho tainted to secure in 4 4 tho personnel of the bureau tho ap- 4 4 polntmontf representatives of all 4- recognized schools of medicine, 4 4- ajid in tho management of tho bu- 4 4- roau cutiro froedom from narrow 4 4 pro.ludico in this rogard, 4 I 4 44-4-444,4-;H44IWI-4-4-4-H"H4 nenato. I nm aware that this Is Inviting from the senate a concession Iu respect to Its quasi executive powor that Is considerable, considera-ble, but T believe It to bo In tho Interest of good administration and efficiency of service. To mako this change would take tho postmasters out of politics: would relieve congressmen who now are burdened with the necessity of making rerornmondatLfins for these places of a responsibility' ihal must ho Irksomo and cau create nothing but trouble; and It would result In securing greater ntlon-tlon ntlon-tlon to business, greater fidelity, and consequently greater economy and efficiency effi-ciency In the postoffices which they conduct. con-duct. THE FnANKING PRIVILEGE. Tho unrestricted manner In which tho franking frank-ing privilege Is now being used by Ihe several federal services and by congress has laid ft open to serious abuses, a fact clearly established through Investigations Investiga-tions recently Instituted by the, department. depart-ment. While It has been Impossible without with-out a better control of franking to determine deter-mine the exact expense lo the government govern-ment of this practice, there nun be no doubt that It annually reaches Into the millions. It Is believed that many abuses of Hi" franking system could bo prevented, 11ml consequently a marked economy effect ef-fect cd by supplying through tho agencies of the postal service special official en-velpoea en-velpoea and stamps for Ihe froo mall or tbo governmenL all such envelopes and stamps to be Issued on requisition to the various branches or tho federal service requiring them, and such records to be kept of all offclal stamp supplies as will cnablo iho postofTleo department to maintain a. proper postage account cov- It ECONOMY IN ALL DEPARTMENTS 1 i I i r vcr.v- cftort lias been niarlo by each department chief to reduce I bn esiimalcd cost of I113 department J- T for M10 ousiinijT hacal year ending .luno .'10, I0I1I. I sa this in order that conprosa may understand that (bre t fistimaleu thus tnado present the smallest sum which will maintain the departments,' bureaus and oflic-x of V i. . tho government-, and meet, its other obligations under existing law, and that a cut of these estimates would result in embarrassing (ho executive branch of I lie government in fho performance of "3 duties. I remark does not apply to the river and harbor estimates, c.vccpl- lo Ihoso for oxpciisr-5 of nipin- P. icnanco and the meeting of obligations under authorized eonlraets, nor docs it apply lo the public liuildtn- 4. bill nor lo the navy building programme. .' f f . 0f course, as to iheso congrca3 vould withhold any part, or all of Ihc estimates for them wthoul inter- V T loniig. with the discharge of ilic- ordinary obligations of the government or the performance of the functions T of its departments, bureaus and ofiicoe. 4- The final oatimatc3 for tho v0ar ending June 30. 10TJ. as I hoy have been sent to the trcasurv. on Ko- i. vember ! of this year, for l.ho ordinary expenses of the government, including those for public buildinpg, riv- " 4- ptb and harbors, and 1 ho navy building programme, amount to SMO.-IP-l.OIS.IS. This is .?ri2,9'H.SR7.36 lcj than ?fl T .tbe. appropriations for the fiaeal y0.ir ending June 30. 15)11. It is !rli.SS."..ir;3.4-t less than Hie total estimates "fl T -'"'"nc supplemental estimates submitted to congress bv the. treastirv for the year .1911. and is .7 071 - JM 4. buli..i) less than the original estimates submitted bv I ho treasury for 1011. ' ' ' .,V f These figures do not include tho appropriations for tho Panama canal, the policv in respect to which ;9 ought to bo, and is, to spond as much each year as can be ecouoniically and effect ivclv expended m order t-i vfl T complete the canal as promptly as possible, nnd, therefore, the ordinary motive for cutting down the c-ponso W . or the government does not apply to appropriations for this purpose It will be noted that, the estimates for 'fl 4 ihc Panama canal tor tho ensuing year aro more than .$r6.000.nno, an increase of $20,000,000 over the amount t 2i(irZrnnlnC d. .'Sf V;ar--a diffcrenco due to tho fact that tho estimates for 1012 include something over ' M j- .1!1,000.000 for tho fortification of the canal. 'jH t xrcnnnAnnn f hc . estimated expenditures of .?G1fM,0i:U2.. the treasury has estimated receipts for next vaw -9 ooo0ooo'000; n Probflb r surplus of ordinary receipts over Iho ordinary expenditures of about ISO.- If 000.000. or. taking into account the estimates for the Panama canal, which are $oG.P20.S-17 GO aud which will ' 4- ultimately be. paid in bonds it -will leave a deficit for the next, year of about ?7,000.000, if cougress shall conclude., to fortify the cansil. Hie cost ot tho fortification is about $10,000,000. Should tberc be no ap- Wk ; propnation this year for fortifications, then I hero would bo, oven including the Panama- canal appropria- 4. tion, a surplus of about $12,000,000. according to tho treasury statements. 111 jB erlng tho entire volume of froo government gov-ernment mall. As the first step In tho direction of this rerorm special stamps and stamped envelopes have b-?en provided for use instead of f ranks In tho Tree. Irsnsmls--elon or the official mail resUltlim from the business of tho new postal savings system. By properly recording tho issuance of such stamps and envelopes accurate records rec-ords can bo kept of tho cost to tho government gov-ernment of handling the postal savings mail, which Is certain tn becomo an important im-portant Item of expense and ono that should be separately determined. In keeping with this plan II. Is hoped that congress will authorize the substitution substi-tution of special offclial stamps aud stamped envelopes for tho various forms of franks now used to carry free of poat-ago poat-ago the vast volnmo of departmental ancT congressional mail matter. During the past year methods of accounting similar lo those employed in tbe moat progressive or our business establishments establish-ments havo been Introduced In thn postal sovico and nothing has so Impeded tho department's plans in this regard as the impossibility of determining with any exactness how far tho various expenses of the postal service aro Increased bv tho present unrestricted use of the rranking privilege. It In believed that the. adoption of a more exact method of dealing with this problem as proposed will prove to bo of tremendous advantage advan-tage in tlio work of placing tho postal scrvlco on a strictly busincspllko basis. SECOND-CLASS MATTER. In my last annual message J Invited the attention atten-tion or congress to tho Inadequacy of tho postal rate Imposed upon second-class second-class mail mattor In so far as that Includes In-cludes magazines, and showed by figures prepared by oxports of tho postofflce department de-partment that tho government was rendering ren-dering a service to tho magazines costing cost-ing many millions In excess of tho compensation com-pensation paid. An answer was attempted to this by the represenLatlves of tho magazines, aud a reply was riled to this answer by tho pootorflco department- The utter Inadequacy of tho answer, considered in the light of the replv of the poslofflco department, 1 think must appeal lo any fair minded person. Whether Wheth-er tho answer was all that could be said In behalf of the magazines is another an-other question. I agree that the question Is one of fact, but 1 Insist that If tho fact is as tho exports of the poslofflco department depart-ment show, that, wo aro furnishing to tho owners of magazines a scrvlco worth millions moro than thoy pay for It, then Justice requires that tho rate should be Increased. Tho Incrcaso In tho receipts of tho department 'resulting rrom this change may bo devoted to Increasing the use- i fulness of the dopartmont In establish- ' ing a parcels post and In reducing tho 1 cost of first-class postago to 1 cent i It has been said by the postmaster goncrat that a fair adjustment might bo niado under which the advertising 1 part of tho tnngar.lne should be charged I for at a different and higher rato from I that of tho reading mattor. This would i rollcve many useful magazines that are not circulated at a profit and would not shut them out from the use of the malls ' by a prohibitory rate. ' PARCELS POST. With respect to tho ! parcels post, 1 respectfully recommend i URGES LEASlil OF HM Detailed Plan Outlined for Di J posal of Natural Wealth ll of Nation. j WOULD LAY RESTRICTIONS If TO PREVKNT MpNOPQijJj Possible Solution Suggested ii Control by States Hurler 1 Federal Safeguards. ! )j y Us adoption on all rural dollvry roulJ and that cloven pound (tho Intern tlonal limit) bo made tho limit of S? rlago In such post, and this with a tIim to Its genoral extension when th V' como of tho poslofflco wwl permit It n the postal savings banks shall havo w fully established. 0 D The same argument 11 ruado .iKiIii Iho parcels post that wti3 made a-TiThi tbe postal savings bank--that It fs troduclng the govcrnmoiit Into a hnt ncss which ought to bo conducted b private persons, and ia ratcmalisrn 7 The postofflce department has a'-r plant and a groat organization reach Ing Inlo the most remote hanilel or (fc United States, and with this machln It lo able to do a gniat many tblni economically that IT a new orsanlnS Hon woro necessary It would b5 ImoS slblo to do without extravagant CXm? dltin-e. That is the reason why tho poji! savings bank can be carried yn at' small additional cost, and why It (3 J slble to incorporate at a very incoiid? erable expense a parcels post fn "(h, rural delivery system. A general mj-eels mj-eels post will involve a much grul outlay. ' , NAVY DEPARTMENT f In the last annual icport of thi ?J reiary of the navy and in mv annuafl message, attention was called" to ih9 new detail of ofricers In th nav parlment by which orricors ofiliz r&nB were assigned to dut ?g oXa tlJ secretary In respect to naval operatlonH personnel, inspection and material. J his change was a substantial coinpVM ancc with the recommendation of commission on naval reorganlzatlsB headed by Mr. Justice Moodv, and sutuH milted to President Uoosevcli on Kcbrifl ary -0 1 900. 'JjB Through the advice of this commllliB of lino officers, tho secretary Is bUH to bring about a proper co-ordinntlonjH all tho brnnches of the naval dcparttaJgB with greater military efficiency. secretary of tho navy recommends this new organization bo recoimlzed bH legislation and thus made permanent concur in the recommendation The secretary- In view of the coneWH sions or a recent court or inquiry on H tain phases or tho marine corps admliH isl ration, rocommonds that the tnUH general commandant or tho marine wraH bo appointed for a four years' terra. that ofricers or the adjutant and specter's department bo detailed from "H Ho also asks for legislation to prove th conditions .now existing In personnel of officers of the nay. ,PH tlcnlarly with rogard to tho age and porlencc of flag officers and captalnM and points out that it is ossehtliu'IjB tho highest efficiency of the navy 'fH tho ago of our officers be reduced tH that flag officers, particularly, SH gain proper experience as flag offlceB in order to enable thorn to properly cnB mand rioels. I concur in Iho socrctarjJBB recommendations. "aB COVERING OF NAVAL SUPPHB FUND INTO TREASURY. I commSHJ to your attention tho report of socrotary on tho change in the yswJ of cost accounting In navy yards, also lo Ihe history or tho nnvay ply fund and tho prccent conditions IsUng in regard to that matter. tirtfM previous practice, and what now ECf?H to havo been an erroneous construcuj of the law, tho supply fund of the .nH was Increased from $2 700,000 to eoM thing over $11,000,000, and a systenvMj accounting was Introduced which vented tho striking of a proper p1?? and a knowledge of the oxact cM.VB maintaining the naval establishmentB Tho system has now been "if.H and a naval supplv account csiapllXjB by law Julv 1. 1010. The naval fjH ply fund of J2.700.000 is now on "JP'B In the treasury to tho credit oljM department. Tho sccrctury recommMM that tho naval supply account bc,2H permanent bv law and that tho ";H 000 to the naval sup-dy fund be C0H Into tho treasury as unnecessary. 8?H ask for legislative authority to dliB This sum when covered Into tho ury will really he a reduction re2H cd naval cost for this year. Tn B males of tho navy dupartment are .H 000.000 less than tho appropriations -m tho same purpose last year, and inciu In this Is the building programme samo amount as that submitted ror"M zonstdcrntlon last year. i-nB It Is merely carrying out the PJJftB building two battleships a year, "J3B ew needed auxiliary vessels: I cf?B y hopo that this progrummo wUM idopled. . JH ABOLITION OF NAVY YARDS-TTB secretary of the navy has given jx-amlnatlon to every, navy yard a"uB itudlod tho nsos of tho navy -varU9tflH efcrcncc to the necessities of ""''.jH iVIth a licet considerably less thamoMH I Would Put All Postmasters in Classified List I I OR PROTECTION OP THEFORESTS juest Is Made That Congress Remove Limitation of Withdrawal With-drawal Power. IEAT FIRES OF SUMMER WROUGHT MUCH DAMAGE ivelopment of Roads and Frails Declared to Be Highly High-ly Essential, size of that of the British navy, we e ship yards mere than double tho nber. and there are several of these 3 yards, expensively equipped with lorn machinery, which afler Investl-lon Investl-lon the secretary of the navy belleve3 w entirely useless for navai purposes. 88k9 authority to abandon certain of m and to move their machinery to er pieces where It can be mudo of use. l making these recommendations the etary is following directly along pro-t-clve lines which have been adopted iui groat commercial and manufoctur-consolidatlons manufoctur-consolidatlons In this country, that is. dismantling unnecessary and lnade-to lnade-to plats and discontinuing their tx-ncu tx-ncu where It has been demonstrated L It Is unprofitable to continue their ntonancc at an expense not commen surate to their product. V;The secretary points out that the mo3t Important naval base In the West Indies 8 Guantanamo. In the southeastern part f Cuba. Kits geographical situation Is admirably dapted to protect the commercial paths :o the Panama canal, and he shows that jy the expenditure of less (hn half u Trillion dollars with the machinery which ie shall take from other navy yards, he can create a naval station at Guantanamo Guanta-namo of sufficient size and equipment to jerve the purpose of an emergency navai p;tse. r.I earnestly join In the recommendation hat he bo given the authority which he isks. I am quite aware that such action b" likely to arouse local opposition; but 1 :onceive it to be axiomatic that in legls-ntlng legls-ntlng In the Interest of the navy, and foi lie general protection of the country by he navy, mere local pride or pecuniary ptrrost In the establishment of a naw fard or station ought to play no pari. The recommendation of the sourctarv lh msed upon the judgment of impartial laval officers, entirely uninfluenced by t'ny geographical or sectional considera-lons. considera-lons. jfl unite with the secretary In the recom-nendatlon recom-nendatlon that an appropi latlon be made 0 construct a suitable crypt at Annapolis or the custody of the remains of John ! saul Jones. 1 PEARY. The complete success of our jountry In arctic exploration should not feinaln unnoticed. For centuries th-re as been friendly rivalry in this HuiJ f effort between the foremost nations nd between the bravest and most ac wmpllsheri men. Expeditions to the unknown north ruvo trim- encouraged by enlightened sov'stu-Hcnis sov'stu-Hcnis and deserved honors have been granted to the daring men who have con-lucled con-lucled them. vThe unparalleled achievement of Peary n reaching the north pole. April 5. JOdU ippioved by critical examination of tnt nost expert scientists, has added to the Hstlnction of our naw. to which ne be-ongs, be-ongs, and reflects credit upon his ooun- His unique success has received geivM-us geivM-us acknowledgement from scientific buu -k und Institutions of learning In Euiup-.-ud America. I recommend fitting recognition hi mgri-?s of the treat achievement of lob-rt lob-rt bdwln Peary. DEPARTMENT OF THE INTERIOR. 'fP..EALS T0 COURT IN LAND ASES. ihc secretary of tne Interior Jcommends a change of the law in reject re-ject to the nrocedure In adjudicating D lalnis for lands, by which appeals can e taken from the decisions of the de-artmcnt de-artmcnt to the court of appeals of the Istrict of Columbia for a judicial con-IdoratJon con-IdoratJon of the rights of the claimant. .This cnange finds complete analogy In He present provision for appeals from the crlslons of the commissioner of patents. STne Judgments of the court in such uses would be of decisive value to land latmants generally and to the depart-lent depart-lent of tin,- interior In the ad-;'?,lwra.llon ad-;'?,lwra.llon ?f the, 1:nv would enable jniniantK to bring Into court the final onsldcrntion of Issues as to the title fa :ovcinment land and would, I think, aviate a jjood deal of the subsequent Htl-atlon Htl-atlon that now arises In our western ourls. The bill is pending. I believe, in the louti", liaving been favorably reported rom the committee on public lands, anu (recommend its enactment. 'A5?f, !be iJtciMtB in the Interior lOpartmont and In the land office has mJI. d,0,nvK attendant upon the con-? con-? l,he land ofr,cc and ec-glary ec-glary of the Interior of claims for pat- nf p!Jb lc ,ands ,0 Individuals. iV. ' .R,a.fl to sav l"at under t.ic recent CnW'SffS",8 of, Ulc M and the E!ti e?0rls of the secretary and his S , ; a"d th work of the de-w de-w t? SL'in" bc'en brou8hl- more nearly bm th2te ln re"ncct to 'he pending busl-63 busl-63 than ever before In its history. iofSlhh?m,1?u have. been Effected where 5d "SLwlthou legislative assistant, katei "nVr shown ,n the : reduced est!-E2f est!-E2f h. V the. e-:penscs of the depart Purtle ?hrn?..,hecurrent fiEcal -ear an -1 wring the year to come, Bnittinnriirt" ,Zf th0 p,,h,lc domain li&a WthTn ?hdi thG. ,lLtnt'on of the peonle ptnin the last two or three year?. SfcA!?R!CyLTURAt- LANDS. There is Ifo C(i.ror radical reform in the moth-Eii,?..ai moth-Eii,?..ai ip01,nB ot w,,al are rCHl5' asr'" Koili laill6 The Pre"int laws hnva 1W - Wo11' Thc olarged homestctd K.'f f nco"raged the successful Tarm-lio Tarm-lio ln the smi-arld regions. lLrCMAT.ION- The 'otal sum a!, "cumulated in the fund provided EiIr iacil for the reclamation of rld Iff bu )EmHSV1a-1G2440-058-7iJ ad of tills Eirty? Project, of which there are Rf ffint r ,ts !aol EftE5l0 Provide for lot K,",?. 0f "rtlflcates of Indebtedness Pbe red.mLtr0nly.J,,iII!onSi ' dollar,-. ivhen tho f;om the reclamation fund K VrV!ZK'Kot ,1?n,ds soI1 and 'roil, llB lon?loT ethl" ,Bordance with the pro. If nav.H? 13 w 1 aPP "ted a board P toynnc?ln,t?w ,( ;13i"ar"ne the projcctK Kcrthv "K,cc, laln which are feasible and Winlf trnnmlt V" nlh subJecl wh,cb 1 pmn a few day " seParate meseaao P?oNrSfaHV,ON ADDREss.-m S,P-Keld S,P-Keld Tat 4 a.o3ervatlon congrCHs v.-aK P addrp' nn ! ' nl uu;,llch 1 delivered 0. so' fnr " H'e ,fl,lbct of conserva-I'etlon conserva-I'etlon and If U ?ns wlu,ln thc JurlB-Kr&l JurlB-Kr&l gov?2s20!8,ble ac,lon of the fed- and fnr.71 the lal records stalls- uomilf in the administration of One of the great difficulties in 1" S1. Pronpt organization and mo- 4 bilizafcion of militia and volun- 4 f teer forces is the absence of 4 j competent officers of the rank of 4 T S.aPa to teach the now army, 4 1 5y ,e unit of the company, the 4- businesa.of being soWierB and of 4-f 4-f taking care of themselves so as 4 v to render effective service. Tliis 4 T n.eed,JPf, amy officers can only ho T BU?Pud, by provisions of law J authorizing the appointment of a 4 greater number of army 'officers v 1 tnaii are needed to supply the 4-y 4-y commands of regular army troops 4-T 4-T now- enlisted in the service. T Thcro 3X0 enough regular army 4 officers to command the troops 4 r now onlisted, but congress has 4- authorized, and the department 4-T 4-T h&s followed the example of con- 4 gress and exercised the authority 4' conferred by detailing these army 4-T 4-T ?i?r6 to duty other than that 4 J of the command of troops. 4 : i : ; ; : : n ;;H ; : 1.:I,t 1 hiSfiSd l5e Clslativo measures which I : eued. to be. wIsc ln rer to secure bGst u.ae ,n the Publc interest of wnat remains of cwr national domain. There was. In this address a very full discussion of the. reasons which led to the conclusion stated. For the purpose of saving in an official record o comprehensive compre-hensive resume of the statistics and facts gathered with some difficulty within that address, and to avoid the repetition in tne body of the message, I venture to make the address an accompanying appendix. ap-pendix. Thc statistics are corrected to November 15 last. f SPECIFIC RECOMMENDATIONS. For the reasons stated ln the conservation conserva-tion address, I recommend: First that the limitation now imposed upon the executive which forbids his re-fu15 re-fu15 more forest lands ln Oregon, 1 Washington, Idaho. Montana, Colorado and Wyoming, be repealed. Second, that the coal deposits of the government be lentil aft.- f,,....!...... Inviting competitive bids, for terms not exceeding fifty years, with a minimum rental and royalties upon the coal mines, to be readjusted every ten or twelve years, and with conditions as to maintenance main-tenance which will secure proper mining and to assignments which will prevent combinations to monopolise control of thc coal ln any one district or market. I d? not think that coal measures under JoOO acres of surface would be too large an amount to lease to any one lessee. The secretary of the interior thinks there? are difficulties In the way of leasing public pub-lic coal lands, which objections he has set forth In his report, the force of which I freely concede. I entirely approved ap-proved his stating at length in his report re-port the objections in order that tho whole subject may be presented to congress, con-gress, but after a full consideration I favor a leasing system and recommend recom-mend it. As to Ehosphato Lands. Third, that the laws should provide tho same separation In respect to government gov-ernment phosphate lands of surface and mineral rights that now obtains tn coal lands and that thc- power to lease such lands upon terms and limitations similar to those above recommended for coa! .oases, with an added condition enabling tho government to regulate and If need be prohibit the export to foreign countries coun-tries of tho product'. Fourth, that the law should allow a prospector for oil or gas to have the right to prospect for two years over a certain cer-tain tract of government land, the right to be evidenced by a license for which ho shall pay a small sum, and that upon discovery a lease may be granted upon terms securing a minimum rental and proper royalties to the government, und also tho conduct of the oil or gas well In accord with thc best method for husbanding husband-ing thc supply of oil in the district. The period of the leases should not be as long as those of coal, but they should I contain similar provisions as to assignment assign-ment to prevent monopolistic comblna-.luns. comblna-.luns. Would Lease Power Sites. Fifth, that water power sites be directly di-rectly leased by the federal government, after advertisement and bidding, for not exceeding fifty years, upon a proper rental and with a condition fixing rates charged to the public for units of electric elec-tric power, both rental and rates to bo readjusted equitably every ten years by arbitration or otherwise, with suitable provisions against assignment to prevent monopolistic combinations. Or that thc law shall provide that upon application made by the authorities of the state where the water power site was situated, situ-ated, it may be patented to the state on condition that the state shall dispose of It under terms like those iust described, and shall enforce those terms, or upon failure to comply with thc condition the water power site and all tho plants and Improvement upon the site sholl be forfeited for-feited and revert to tho United States, the president being given power to declare de-clare the forfeiture and to direct legal proceedings for Its enforcement. Either of these methods would. I think, accomplish accom-plish tho proper public purpose In respect to water power sites, but one or the other oth-er should be promptly adopted. Conservation Legislation, I earnestly urge upon congress that at this session general conservation legislation legisla-tion of tho character Indicated be adopted. adopt-ed. At He last session this congress took most useful and proper, stops ln the cause of conservation by allowing thc executive, through withdrawals, to suspend the action of the existing laws In respect to much of the public do-"maln. do-"maln. I have not thought that the danger of disposing of coal lands in tho United Stales under the present laws in large quantities was so great as to call for their withdrawal, because under tho present provisions It Is reasonably certain cer-tain that the government will receive tho real value of tho land. But. In respect-to respect-to oil lands, or phosphate lands, and of gas lands In the United States, and In respect to coal lands In Alaska I have exercised thc full power of withdrawal with the hope that the action of congress con-gress would follow promptly and prevent that tying up of thc resources of the country In tho western and less settled portion and In Alaska, which means stagnation and retrogression. Tho question of conservation Is not a partisan one and r sincerely hope that even ln the short time of the present session consideration may be given to those questions which have now been much dineussed, and that action may he taken upon them- ALASKA. With reference to the gov eminent of Alaska I have nothing to add to the recommendations I made In my last message on tho subject. I am convinced that the migratory character charac-ter of the population. Its unequal distribution, distri-bution, and Its smallnesB of number, which tho now conmis shows to be about no, 000, In relation to the enormous expanse ex-panse of the territory, make It altogether alto-gether Impracticable to give to those people who are In Alaska today and may not there a year hence, the power to elect a legislature to govern an Immense territory to which they have a relation so little permanent. It Is far better for the development of the territory that it bo committed to a commission to be appointed ny the executive, exe-cutive, with limited legislative powers, sufficiently broad to meet the local needs, than to continue the present In-BUlclent In-BUlclent government with few remedial powers, or to make a popular government govern-ment where thcra Is not proper foundation founda-tion upon which to rest It. The suggestion that the appointment of a commission win lead to tha control of the government by corporate or selfish self-ish and exploiting Intercuts has not the slightest foundation ln fact. Suoh a government gov-ernment worked well In tho Philippines, and would work well in Alaska, and those who aro really Interested In tho proper development of that territory for the benefit of tho peoplo who live In it and the benefit of the peoplo of thc United States, who own It, chonld sup- STILL FAVORS HEALTHFUREAU Renews Recommendation for System Looking to Preservation Preserva-tion of Physical Welfare. NO PARTICULAR SCHOOL OF MEDICINE FAVORED Opposition of Rival Practices Emphatically Declared to Be Unwarranted. port the Institution of such a government. govern-ment. I have been asked to recommend that tho credit of the government be extended ex-tended to aid the construction of railroads rail-roads In Alaska. I am not ready now to do so. A great many millions of dollars dol-lars have already been expended ln the construction of at least two railroads, and If laws be passed providing for thc proper development of the resources lof Alaska, especially for the opening up of the coal lands, I believe that tho capital capi-tal already Invested will Induce the Investment In-vestment of more capital, sufficient to complete the railroads building, and to furnish cheap coal not only to Alaska, but to. the whole Pacific coast. Thc passage of a law permitting the leasing of government coal lands In Alaska after public competition, and the appointment of a commission for the government gov-ernment of the territory, with enabling powers to meet the local needs, will lead to an Improvement ln Alaska and the development of her resources that Is likely to surprise the country. NATIONAL PARKS. Our national parks have become so extensive and involve so much detail of action In their control that It seems to me there ought to be legislation creating a bureau for their, care- and control. Tho greatest natural wonder of this country and the surrounding territory should bo Included Includ-ed in another national park. I refer J to the Grand Canyon of the Colorado. PENSIONS. Tho uniform policy of the government in the matter of granting grant-ing pensions to those gallant and devoted de-voted men who fought to save tho life of the nation In the perilous days of tho great civil war has always been of tho most liberal character. Those men arc now rapidly passing away. The best obtainable official statistics show that they are dying at the rate of something over three thousand a month and ln view of their advancing yoars. Jthls rate must Inevitably, in proportion, rapidly increase. To the man who risked everything on the field of battle to save the nation ln Its hour of direst need wo owe a debt which has not been and should 'not be computed In a begrudging or parsimonious parsi-monious spirit. But while wo should be actuated by this spirit to tho soldier himself, care should bo exercised not to go to ahsurd lengths, or distribute the bounty of the government to classes of persons who may. at thin lato day, from a mere mercenary motive, seek to obtain some legal relation with an old veteran now tottering on the brink of tho grave. The true spirit of tho pension laws Is to be found In the noble sentiments expressed ex-pressed by Mr. Lincoln in his last Inaugural Inau-gural address, wherein, in speaking of the nation's duty to Its soldiers when the struggle should be over, he said we should "care for him who shall havG borne tho battle, and for his widow and orphans." DEPARTMENT OF AGRICULTURE The report of the secretary of agriculture agri-culture Invites attention to thc stupendous stupen-dous value of the agricultural products of this country, amounting ln all to SS.92G. 000.000 for this year. This amount Is larger than that of 1000 by $30C 000.-000. 000.-000. Tho existence of such a crop indicates indi-cates a good prospect for business throughout the country. A notable change for tho better is commented upon by the secretary In the fact that the south, especially In those regions where the boll woovll has Interfered In-terfered with tho growth of cotton, hus given moro attention to the cultivation of corn and other cereals, so that, there Is a. greater diversification of crops In the south than ever before and all to the great advantage of that section. The report contains a most Interesting Interest-ing account of the activities of the department de-partment in its vqrlous burea.us showing show-ing how closely tne agricultural progress prog-ress ln this country la following along Uie linos of Improvement recommended by the department through Its publications publica-tions and the results of its experiment stations ln every state, and by tho Instructions In-structions given through the agricultural agricul-tural schools aided by the federal government gov-ernment and following tho general curriculum cur-riculum urged hy thc head and bureau chlcfa of tho department. The activities of th department hnvo been greatly Increased by tho enactment of recent legislation, by tho pure food act, the meat inppoction act, the cattlo transportation act and the. act concerning concern-ing the lntorstato shipment of game. This department Is on of those the scope 4- 4 The complete success of our 4 country in arctic exploration 4 4 should not remain unnoticed. Tor 4 4- centuries there has been friendly 4 4 rivalry in this field of effort he- 4 4 tween tho foremost nations and.4 4 between the bravest and most ac- 4 4 complished men. 4 4 The unparalleled achievement 4 4 of Peary in roaching- the north 4 4- pole, April 6, 19011, approved by 4 4 critical examination of the most 4? 4 expert flclentists, has added to the 4 4 distinction of our navy, to which 4 4 ho belongs, and reflects credit 4 4 upon his country. His unique 4. 4 success has received generous ac- 4 4- knowledgment from scientific bod- 4 4 ies and institutions of learning in 4 4- Europe and America. I reconi- 4 4 mend fitting recognition by con- 4 4- gross of the great achievement of 4 4 Eobert Edwin Peary. 4 t"MM"M"M 4-M I II !! ! M 1-M-i'l- of whose action is constantly widening, and therefore it is impossible under existing ex-isting legislation to reduce the coat and their estimates below those of preceding preced-ing yearB. An Interesting review 'of the ranults of an examination made by the department depart-ment Into statistics and prices, snows that on tho average since 1891, farm products have increased in value 72 per cent while the things which the farmer buys for use have increased but 12 poi cent, an indication that present conditions condi-tions are favorable to tho farming community. com-munity. FOREST SERVICE. I have already referred re-ferred to tho forests of the United Statei and their extent, and have urged, as 1 do again, the removal of the limitation upon the power of tho executive to re-servo re-servo other tracts of land In six western west-ern states In which withdrawal for this purpose Is now forbidden. The secretary of agriculture gives a very full description of the disastrous fires that occurred during tho last sum-mer sum-mer in the national forests, A drought more Intense than any recorded In tho history of the west had Introduced a condition Into the forests which made fires almost Inevitable, and locomotive sparks, negligent campers, and ln some cases incendiaries furnished tho needed Immediate cause. At one time the fires were so extended that they covered a rango of a hundred mllos, and the secretary sec-retary estimates that standing timber of the value of twenty-five millions of dollars was destroyed. Seventy-six persons in the employ of the forest service were killed and many more Injured, and I regret to say that there is no provision ln tho law by which the expenses for their hospital treatment or of their Interment could be met out of public funds. The Red Cross contributed a thousand dollars, and tho remainder of tho necessary expenses was made up by private contribution, chiefly from the force of tho forest service serv-ice and lis officials. I recommend that suitable legislation be adopted to enoble the secretary of agriculture to meet the moral obligations of the government ln this respect. The specific fund for fighting fires was only about $135,000, but there existed discretion in the secretary In caso of an emergency to apply other funds ln his control to this purpose, and ho did so to tho extent of nearly a million of dollars, which will Involve the presentation presenta-tion of .a deficiency estimate for tho current cur-rent fiscal year of over $900,000. The damage done was not therefore duo to the lack of an appropriation by congress available to meet the emergency, emer-gency, but. the difficulty of fighting It lay ln the remote points where the fires began and where it was Impossible with the roads and trails as they now exist promptly to reach them. Proper protection pro-tection necessitates, as the secretary points out, tho expenditure of a good deal more money In the development of roads and trails In the forests, this establishment es-tablishment of lookout stations, and telephone tele-phone connection between them and places where assistance can be securefl- The amount of reforestation shown in the report of the forest service only about 15,000 acres as compared with tho 150.000.000 of acres of national forests seems small, and I am glad to note that ln this regard the secretary of agriculture agricul-ture and the chief of the forest servlcn are looking forward to far greater activity activ-ity In the use of available government land for this purpose. Progress has been mado In learning by experiment the best methods of reforesting. re-foresting. Congress Is appealed to now by tho secretary of agriculture to make tho appropriations needed for enlarging the usefulness of thc forest service In this regard 1 hope that congress Will approve and adopt tho estimate of tho secretary for this purpose. DEPARTMENT OF COMMERCE AND LABOR The secretary of the department of commerce and labor has had under his immediate supervision tho application of the merit system of promotion to alarge number of employees, and his discussion of this method of promotions based on actual ftxpcrlence. I commend to the attention at-tention of congress. THE CENSUS BUREAU The taking of the census han proeeded with promptness prompt-ness and efficiency. The secretary believes, be-lieves, and T concur, that It will bo moro thorough and accurate than any census which has heretofore been taken, but It is not perfect. The motive that prompts men with a faliie clvlo pride to Induce the padding of census returns In order to Increase the population of a particular city has been strong enough to lead to fraud In respect to a few cities in this country, and I havft directed tho attorney general to proceed with all the vigor possible against those who are responsible for thoso frauds. They havu been discovered and they DISTRICT LAWS ARE CONSIDERED Number of Reforms Are Suggested Sug-gested for Government of Nation's Capital. COST OF EDUCATION IS SHOWN TO BE EXCESSIVE Improvements, Parks, Civil Service Commission and Other Features. will not interfere with the accuracy of the census, but It is of the highest Importance Im-portance that official Inquiry of this sort should not be embarrassed by, fraudulent fraudu-lent conspiracies In some private or local Interest. BUREAU OF LIGHTHOUSES The reorganization re-organization of the lighthouse board has offoctod a very considerable paving In the administration, and the estimates for that service for tho present year are $428,000 less than for the preceding year. In addition, three tenders, for which appropriations were made, are not being be-ing built because they are not at present needed for tho service. The secretary Is now asking for a large sum for the addition of lights and other I HANDLING THE TARIFF QUESTION 4- The' schedules of tho rates of duty in the Payne tariff act have been subjected to a groat deal of ciitl- clsm, some of It just, more of it unfounded, and to much misrepresentation. Tho act "was adopted in pur- suance of a declaration by the party which is responsible for it that a customs bill should be a tariff for the T protection of homo industries, the measure of the protection to be the difference between the cost of produc- 4- T. ing tho Imported article abroad and the cost of producing it at home, together with .such addition to that t 4- difference as might give a reasonable profit to the home producer. T 4- The basis for tho criticism of this tariff is that in respect to a number of the schedules the declared T measure was not followed, but a higher difference retained or inserted by way of undue discrimination in favor 4- of certain industries and manufactures. -f X Little, if any, of the criticism of the tariff bill has been directed against the protective principle above 4- stated; but the main body of the criticism has been based on the charge Tthat the attempt to conform to tho T measure of protection was not honestly and sincerely adhered to. The time in which tho tariff was prepared undoubtedly was bo Bhort as to make it impossible for the -f "t congress and its experts to acquire tho information necossary strictly to conform to the declared measure. In 4- X. order to avoid criticism of this kind in the future and for the purpose of more nearly conforming to the 4- aarty nromise, congress, at its last session, mado provision at my request for the continuance of a board ere- T 4- ated under tho authority of tho maximum and minimum clause of the tariff bill, and authorized this board to 4 expend the money appropriated under my. direction for the ascertainment of tho cost of production at home -f T and abroad of the various articles included in the schedules of the tariff. I The tariff board thus appointed and authorized has been diligent in preparing itself for the necessary In- 1 4- vesications. The hope of those who have advocated the use of this board for tariff purposes is that the T i 4- question of thc rate of a duty imposed Bhall become more of a business question and less of a political ques- I tion, to be ascertained by experts of long training and accurate knowledge. 4 ! T The halt in business and tho shock to business, due to the announcement that a new tariff bill is to be 4- X prepared and put in operation, will be avoided by treating the schedules one by one as occasion shall arise T I for a change in the rates of each, and only after a report upon the schedule by the tariff board competent to T 4- make- such report. 4- It is not likely that the board will be able to make a report during the present session of congress on 4- It any of the ''schedules, because a proper examination involves an enormous amount of detail and a great deal of 4- ; T care; but I hope to be able at the opening of the new congress, or at least during the session of that, con- X 4. gress, to bring to its attention the facts in regard to thoBO schedules in the present tariff that may prove to I 4- need amendment. I: 4- The carrying out of this plan,, of course, involves the full co-operation of congress in limiting the con- T sideratlon in tariff matters to one schedule at a time, because if a proposed amendment to. a tariff bill is to -f T involve a complete consideration of all the schedules and another revision, then wo shall only repeat the evil X 4. from which the business of this country has in times past suffered most grievously by stagnation and un- T certainty, pending a resettlement of a law affecting all business directly, and tho effect of which no wise I 4- business man would Ignore in new projects and new investments. . IHtimttmttmt -44-44-4444 M M M H H-f MMMHUtMHH "aids to the commerce of the seas, Including In-cluding a number in Alaska, The trade along that coast Is becoming becom-ing so Important that I respectfully urgo the necessity for following his recommendation. recom-mendation. BUREAU OF CORPORATIONS The commissioner of corporations has just comnleted the first part of a. report on the lumber Industry In the United Slates. This part does not treat of the question of a trust or combination In tho manufacture manu-facture of lumber, a subject to be dealt with later. The commissioner does find, however, a condition in the ownership of the standing timber of tho United States, other than the government limber, that calls for serious attention. The direct Investigation made by the commissioner covered an area whleh contains SO per cent of the privately owned timber of the country. His report shows that one-half one-half of the timber In this area Is owned by 200 Individuals and corporations; that 14 per cent Is owned by three corporations, corpora-tions, and that there Is very extensive lnter-ownershlp of stock, as well as other circumstances, all pointing to friendly relations among those who own a majority ma-jority of this timber, a relationship which might lead to a combination for the maintenance of a price that would bo very detrimental to the public Interest, In-terest, and would create the necessity of removing all tariff obstacles to thc froe Importation? of lumber from other countries. coun-tries. BUREAU OF FISHERIES I am glad to note In the secretary's report the satisfactory sat-isfactory progress which Is being made In respect to tho preservation of tho seals of the Prlblloff Islands. Verv active ac-tive steps are being taken by the department de-partment of state to secure an arrangement arrange-ment which shall protect the Prlblloff herd from the losses duo to pelagic sealing. seal-ing. Meantime the government has secured seal pelts of the bachelor seals (the killing kill-ing of which does not Interfere with the maintenance of tho herd), from tho sale of which next month It Is expected to realize about 5150.000, a sum largely In excess of the rental paid by tho lessee of the government under the previous contract, COAST AND GEODETIC SURVEY The coast and goodetlc survey has been engaged In surveying the coasts of the Philippine archlpelogo. This is a heavy work, because or thc extended character charac-ter of the coast line In those Islands, but I am glad to note that about half of tho needed survey has been completed. So large a part of the coast line of thc archipelago has been unsurveved as to make navigation In tho neighborhood of the Islands and especially on the east side, particularly dangerous. BUREAU OF LABOR The commissioner commis-sioner of labor has been actively engaged in composing the dlfrerences between employer and employees engaged In in torstate transportation, under the Erd-man Erd-man act, Jointly with the chairman of the Interstate commerce commission, r can not speak ln too high terms of the success of those two officers In conciliation concilia-tion nnd settlement of controversies which, but for their interposition, would have resulted disastrously to all Interests. I Invite attention to the very serious injury caused to all those who aro engaged en-gaged In the manufacture of phosphorous matches The diseases Incident to this are frightful, nnd as matches can be made from other materials entirely innocuous. in-nocuous. I believe that the Injurious manufacture could be discouraged und ought to bo discouraged by tho Imposition Imposi-tion of a heavy federal tax, 1 recommend recom-mend the adoption of this method of stamping out a very serious abufe. EIQHT'HOUR LAW Since 1SCS It has been the declared purpose of this government gov-ernment to favor the movement for an eight-hour day by a provision of law that none of tho employees employed by or on behalf of the government should work longer than eight hours ln every twenty-four. The first declaration of this view was I V I V I r.:H-W-H--I"H"1"H; H-M-4 4 4 To classify first, Becond and 4 4 third class postmasters would re- 4 v quire tho passage of an act chang- 4 4 ing the method of their appoint- 4 4- ment so as to take away the neces- 4 4 slty for the advice and consent of 4 4 the senate. . 4 I am awaro that this is invit- 4? 4 ing from the Benate a concession 4 4 in respect to its quasi executive 4 4 power that is considerable, but I 4 4 believe it to be in the interest of 4 4 good administration and efficiency 4 4- of service. To make this change 4 4 would take the postmasters out of 4 4 politics; would relieve congress- 4 4 men who now are burdened with 4 4 the necessity of making recom- 4 4 dations for these places of a re- 4 4 sponsibility that must be irksome 4 4 and can create nothing but trou- 4 4 ble; and it would reBUlt in secur- 4 4 ing greater attention to buslneBB, 4 4 greater fidelity and consequently 4 4 greater economy and efficiency in 4 4- the postofflces which they conduct. 4 H-M-H-H 1 1 ; M Mil njl not accompanied with any penal clause and with no provision for its enforcement, enforce-ment, and, though President Grant by a proclamation twice attempted to give It his sanction and to require the officers of the government to carry It out, the purpose of the frajnors of the law was ultimately defeated by a decision of the supreme court holding that tho statute as drawn was merely a direction of the government to its agents, and did not invalidate a contract made In behalf of the government, which provided in the contract for labor for a day of longer hours than eight. Thereafter, in 1802. the present elght-l,.ou.r elght-l,.ou.r .law was passed, which provides that the services and employment of all laborers nnd mechanics who are now or may hereafter bo employed by the government gov-ernment of the United States, by the District of Columbia, or by anv contractor contrac-tor or subcontractor on any of the public wonts of the United States- and of the said District of Columbia, Is hereby re- BincLco. 10 eigiu nours in nny one calendar calen-dar day, and It shall ba unlawful, etc.. etc. This law has been construed to limit the application of the requirement to thoso who are directly employed by the government, or to tho6e who are employed em-ployed upon public works situate upon land owned by the United States. This construction prevented Its application to government battleships and other vessols. built In private shipyards, and to heavv guns and armor plate contracted for and made at private establishments. The propo?cd act provides that no laborer la-borer or mechanic doing any part of the work contemplated by a contract with the United States in the emplov of the contractor or any subcontractor shall be required or permitted to work more than eight hours a day In any one calendar day. Eight-Hour Day. It seems to me from the past history that, the government has boon committed commit-ted to a policy of encouraging the limitation lim-itation of the day's work to eight hours in all works of construction initiated by Itself, and it seems to mo illogical to maintain a difference between government govern-ment work done on government soil and government work done ln a private establishment, es-tablishment, when the work Is of such large dimensions and Involves the expenditure ex-penditure of much labor for a considerable consider-able period, so that the private manufacturer manu-facturer may adjust himself and his cs-' tabllshment to the special terms of" employment em-ployment that he must make with his workmen for this particular job. To require, however, that every small contract of manufacture entered Into by the government should bo carried out by, the contractor with mon working at eight hours would be to Impose an intolerable in-tolerable burden upon the government by limiting Its sources of supply and excluding ex-cluding altogether thc great majority of thoso who would otherwise compete for Its business. The proposed act recognizes this ln Mir. Avpnntlrtnn nVinl. It tracts "for transportation by lnnd or water, wa-ter, for the transmission of Intelligence, and for such materials or articles as may usually be bought In the open market, mar-ket, whether made to conform to particular par-ticular specifications or not, or for the purchase of supplies by the goverhmen' whether manufactured to conform to particular par-ticular specifications or not." I recommend that Instead of enacting the nrornsod bill, the meaning of which is not clear and definite and might be given a construction embarrassing to the public interest, the present act be enlarged en-larged by providing that public works shall be construed to Include not onlv buildings and work upon public ground, but also ships, armor, and large guns when manufactured ln private j'ards or factories. Ono of the great difficulties In enforcing enforc-ing this eight-hour law Is that Its application appli-cation under certain emergencies becomes be-comes exceedingly oppressive and there Is a great temptation to subordinate officials of-ficials to evade it. I think that It woujd be wiser to allow al-low the president, by executlvo order, to declare an emergency In special Instances In-stances In which the limitation might not apply and. In such cases, to Dermit the payment by. the government of extra compensation for the time worked each day ln excess of eight hours. I may add that my suggestions In respect to this legislation have the full concurrence of the commissioner of labor. WORKMEN'S COMPENSATION. Tn view o(, tho koen. widespread Interest now felt in thc United States In a system sys-tem df compensation for Industrial ac-cldeniu ac-cldeniu to supplant our present thoroughly thor-oughly unsatisfactory system of employers" employ-ers" liability (a subject the Importance of which congress has already recognized bv tho appointment of a commission). I recommend that the International Congress Con-gress on Industrial Insurance b Invited to luld Its meeting In 1913 In Washington, Washing-ton, and that an appropriation of $10,000 be made to cover the necessary expenses of organizing and carrying on the meeting. meet-ing. BUREAU OF IMMIGRATION. The Immigration Into this country is increasing increas-ing each year. A large part of it comes through tho Immigrant station at Ellis Island In the city of New York. An examination of the station and the methods pursued satisfies me that a difficult dif-ficult task Is there performed by the commissioner and his force with common Eonse. tho strictest fairness, and with the most earnest desire to enforce the law equitably and mercifully. It has been proposed to enlarge the accommodations so as to allow more of the immlgrunts to come by that port. I do not think It wise policy to do this, T have no objection to on the contrary, T recommendthe construction of additional addi-tional bulldlncs for the purpose of facilitating fa-cilitating a closer and more careful "examination "ex-amination of each immigrant as he comes In, but I deprecate the enlargement of tho buildings and of tho force fou the purpose of pormlttlng the examination of more Immigrants per day than are now examined. If It Is understood that no moro Immigrants Immi-grants can bo taken In at New York than arc now takon In, and the steamship steam-ship companies thus are given a reason and a motive for transferring Immigrants to other ports, we can be confident that they will be better distributed through the country and tn!lt thero will not bo that congestion In the city of New York which does not make for the better condition con-dition of the Immigrant or Increase his usefulness as a new member of this community. Everything which tends to snd the Immigrants west and 3011th Into rural life helps the country. I concur with the secretary in his recommendations rec-ommendations as to tho amendments to the Immigration law In Increasing the fine against tho companies for violation of the regulations, and ln giving greater power tu the commissioner to enforce more care on the part of tho steamship companies In accepting Immigrants. The recommendation of the secretary. In which he urges that tho law may be Holds Alaska I illhd I Again Expresses Opinion That H Commission Form of Got-emment Got-emment Is Best. DENIES THAT INTERESTS H WOULD ACQUIRE CONTROL Migrator)r Character of Popula- JH tion Renders Legislative As- EH sembly Impracticable. H amended so as to discourage the sep-aratlon sep-aratlon of families Is. I think, a good one. I MISCELLANEOUS SUBJECTS I I NOT fN DEPARTMENTS BUREAU OF HEALTH. In my mes-sage mes-sage of last year I recommended the creation of a bureau of health, In which should be embraced all those government agencies outside of the war and navy departments which arc now directed. to- fl ward the preservation of public health or exercise functions germane to that subject. I renew this recommendation. I greatly regret that the agitation tn tcr-agltatlon against Its creation, on the ground that tho establishment of such a bureau Is to be in the interest of a particular school of medicine. It seems to me that this assumption ir wholly unwarranted, and that those responsible for the government can be trusted to secure ln thc personnel of the bureau tho appointment of representatives of all recognized schools of medicine, and ln the management of the bureau entire freedom from narrow prejudice in thU regard. THE IMPERIAL VALLEY PROJECT. By an act passed by congress tha president was authorized to expend a million dollars to construct thc neaded work to prevent Injury to the lands of the Imperial valley from tho overflow of the Colorado river. I appointed a com-potent com-potent engineer to examine the locality and to report a plan for construction. He has done so. In order to complete the work it Is necessary to secure the consent of Mexico, for part of the work must be constructed In Mexican terrl- Negotiations looking to thc securing ot such authority are quite near success. The Southern Pacific Railroad company tM proposes to assist us ln thc work by lending equipment and by the transporta-tion transporta-tion of material at cost price, and It Is hoped that the work may be completed beforo any danger shall arise from the spring floods In the river. The work la being done under the supervision of tho secretary of the Interior and his consult-Ing consult-Ing engineer. General Marshall, lato chief of engineers, now retired. This leads me to invite the attention of congress to the claim made by the Southern 'Pacific Railroad company for an amount expended in a similar work of relief called fdr by a flood and great emergency.- This work, as I am Informed, was un-dertaken un-dertaken at the request of my predeces-sor predeces-sor and under promise to reimburse tha railroad company. It seems to me tha equity of this claim Is manifest, and the only question involved is the reasonable vinn nf thn wnrk done. 1 recammenri the payment of tho claim in a sum found to be just. DISTRICT OF COLUMBIA, The gov-emment gov-emment of the district of Columbia is a fM good government. The police force, whllu perhaps If might be given, or acquire. more military discipline in bearing and appearance, Is nevertheless an cftlcieut bodv of men, free from graft, and dls-charges dls-charges Its important duties in this capl-tal capl-tal of the nation effectively. The parks and thc streets of the city and the dls-trlct dls-trlct arc generally kept clean and in ex-cellent ex-cellent condition. Tho commissioners of the district have its affairs well In hand. and. while not extravagant, are constant-ly constant-ly looking to those municipal improve-mcnts improve-mcnts that are expensive but that must be made in a modern growing city Ilka Washington. While all this is true, nevertheless tho fact that Washington Is governed by congress, and that the citizens are not IH responsible and have no direct control through popular election In district mat-tors, mat-tors, properly subjects the government to. Inquiry and criticism by Its citizens. manifested through thc. public press and otherwise: such criticism should com-mand com-mand the careful attention of congress. Washington is thc capital of tho na-tion na-tion and Its maintenance U3 a great and beautiful city under national control, ev-ery ev-ery lover of his country has much at heart: and It should present. In even- way a model in respect of economy of expen-dlturo, expen-dlturo, of sanitation, of tenement reform, of thorough public Instruction, of the ' proper regulation of public utilities, of sensible and extended charities, of the proper care of criminals and of youth hooding reform, of healthful playgrounds and opportunity for popular recreation, and of a beautiful system of parks. I am glad to think that progress Is being made in all these directions, but I venture to point out certain specific improvements toward these ends which congress In Its wisdom might adopt. Speaking generally. T think there ought to be more concentration of authority In respect to the accomplishment of some of these purposes with moro economy of expenditure. PUBLIC PARKS. Attention is Invited to the peculiar situation existing ln ra-gard ra-gard to the parks of Washington. The park system proper, comprising some Gt3 different areas, is under the office of public bultdings and grounds, which, however, has nothing to do with the control of Rock Creek park, tho Zoologl-cal Zoologl-cal park, thc grounds of the department of agriculture, tho Botanic garden, the fl grounds of '.ho capltol, and other public grounds which are regularly open to tho public and ought to be part of the park system. Kxcluslve of the grounds of the Soldiers' homo and of Washington bar-racks, bar-racks, the public grounds used as. parks In the district of Columbia comprise over .1100 acres, under ten different con-trolling con-trolling officials or bodles This division of Jurisdiction Is most unfortunate. Large sums of money are spent yearly In beautifying and keeping In good con-dltlon con-dltlon those parks and the grounds con-nectcd con-nectcd with government buildings and institutions. The work dono on all of them Is of the same general character work for which the office of public build-Ings build-Ings nnd grounds has been provided by kH congress with a special organization and equipment, which are lacking for the grounds not under that office. There can be no doubt that if all work BB of care and Improvement upon tho grounds helonglng to the United States In tie district of Columbia were put. as far as possible, under one responsible BBVJ head, the result would be not only great- er efficiency and economy In the work Itself, but greater harmony In the devel-opment devel-opment of the public parks and gardens of the city. Congress at Its last session provided for two more parks, called the Meridian Hill and Montrose parks, and tho district commissioners have also included In their estimates a sum to bo used for the acmilsltlon of much needed park land adjoining the Zoological park, known as tho Kllngle Ford tract. The expense of these three parks, Included ln the estl-mates estl-mates of the commissioners, aggregates I ! Urges Enforcement of Corporation Laws , 1:1 INTERSTATE LAW IS SATISFACTORY President, at Any Rate, Docs .u .Not Press Former Reeom-4 Reeom-4 '! mendations. i i jj COMMISSION TO DECIDE ' . VALUATION OF RAILROADS I Issuance of Fraudulent Bills of Lading Merits Most Se-j Se-j verc Pnnishmcnt. . J 390O.000. I think it would lead to economy ' if tlic improvement and caro of nil tlicso parks and othor public grounds abovu described, should lo transferred to (ho office of public buildings and grounds, i which has an equipment well nnd I oconomlcnllv ndaptcd to carrying out the i public purpose in respect to improvements improve-ments or this Hind. 1 To prevent encroachments upon the jmik urea, it Is recommended thnt tho ' erection of any permanent structure on any lands in the District, of Columbia belonging to the United States?, be prohibited pro-hibited except by specific authority of i congress. THE DISTRICT OF COLUMBIA IN I VIRGINIA, I have already In previous i I communications to congress, referred to Hi importance ot acquiring for the District Dis-trict of Columbia at least u part of the ' territory on the other Hide of the Po-j Po-j tomao. In Virginia, which was originally granted for the district by the stato of Virginia, and then was relroccdod by act of congress In lS-itf. 1 It Is very evident from conferences that I liuvo had with the senators and ' representatives from Virginia, that there Js no hope 'of a rcgranling by the state of the land thus given back: and J am i frank to nay that In so far as the tract I Includes the town of Alexandria and land remote from the Potomac river, there would be no particular advantage in bringing that .within national con-1 con-1 rol. II lint tl)e land which lies along the Po- tomao river above tho railroad bridge , und across i.ho Potomac. Including Ar lington cenintory, Fovt Alyer, tho gov-1 gov-1 1 urnmenl experiment farm, tho village of llosslyn. ami the Palisades of tho Potomac, Po-tomac, reaching to where the old district line Intersect.! the river, Is very sparsely EOllled. and could he admirably utilized for increasing tho system of tho parks of Washington. , It has been suggested to mc by the samo ' Virginia .senators and representatives, representa-tives, that If the government wore to acqulic for a government park the laud I above described, which is not of very , gicat value, tho present law of Virginia would Itself work tho creation of federal fed-eral Jurisdiction over It. and If that were I not complete enough, tho legislature of i Virginia would, in all probability, so enlarge tho jurisdiction as to enable con- I gross to 'ncludo It within the control of , 1 the government of the District of Colum- ,( bla. and actually make it a part of ( " "Washington. I oarnostly recommend 0 , that steps be taken to carry out this p. p!an. 1 1 "PUBLIC UTlLITIES-Tkero nrc a suf ficient number of corporations enjoying I the us of public utilities In the .District of Columbia to justify and require tho f enactment of a law providing for their supervision and regulation In the public i Interest consistent with the vested l rights secured to them by their charters. A part of these cprporatlons. to. wit, I the slvoel railways, have been put, under j the 'control of tho interstate commerce commission, but Ilia t commission reeom-; reeom-; mentis that tho power be taken from ' it. and Intimates broadly that its other ' and more Important duties tnakc It Im possible for It to give the requisite stiper-' stiper-' viuiuis. It seems to me wise to place i this general power of supervision and i icgu'atlon In the district commisslouers- " It Is said that their present duties arc 1 now absorbing and would prevent the proper discharge by them of these new I functions, but their present Jurisdiction j brings them so closely and frequently I In contact with theso corporations and I makes them to know In such detail how" the corporations are discharging their duties under the law, and how they are I serving the public Interest, that the com- i mlssloncra aic peculiarly fitted to do , this work, and 1 hope that congress will Impose It upon them by intrusting them with power. In respect to such corporations corpora-tions similar to those of the public utilities utili-ties commlss ion of IVew Vork CItv or fclmllar boards in Massachusetts. SCHOOL SYSTEM. I do not think the piesent control of the school system of "Washington commends Itself an the most Efficient and economical and thorough instrument for the carrying on of public instruction. The expanses of tho schools of Washington, as compared v.llb those of other cities similarly situated, arc shown 'by the accompanying IrIjIo. The cost or education In the riiatrlct of Columbia in thus scon to be excessive an compared with the -ohI in otho; cities of similar size, and It Is not apparent that the .result, arc In general more satisfactory. . Tho average cost, per pupil per day In Washington is about 'AS cenlK. while tho ovcrago, for,: in thirteen oilier American cities fairly comparable with Washington In ponulallon and standard of education Is. about rri.Ti cents. lir each dollar ; spent In salaries of school teachers and -! officer.-! In the district about t.l days i of instruction per pupil aro given, while 1 in the thirteen cities above referred lo 1 ouch dollar opemlcd for .alarlca affoi'da 1 or. the a Venice 6.8 day:; of Instruction. I'-or tin cjnieiit Jhical. year the oxil- f I Tho Bocrotary of tho navy hau ! f givou personal examination to ! -I ovcry navy yard and lias studied . the usea of the navy yards with ! I- roferenco to the nccosaltlos of r of our ileot. With a floot consider- ! I ably less than half tho alze of r i- that of tho British navy, wo have v ship yards moro than double tho I number, and thoro aro several of ! ! these ship yards, expensively ! !- equipped with modern machinery, ! I which aftor investigation tho hoc-I hoc-I rotary of tho navy boliovos to bo -I ontirely usolcsn for naval pur- J I- poses. Ho askn authority to -I- abandon certain of thorn and to I move their machinery to other I places whore it can ho made of i I use. i I The secretary points out that -V I tho most important naval haso I 1 In tho West Indies is Guantauarno, J in tho aoutlioastern part of Ouba. I ! tHW-:H"H"I-K- tiuilen of the boanl of education amounted amount-ed to about three-quarters of the entire revenue locally collected for district purposes. pur-poses. If I may say so. there scorns to bo a lack of detlnlte plan In tho expansion of the school system and the erection of new buildings and of proper economy In the use of these buildings that indicates indi-cates the necessity for tho concentration of control. All plana for improvement and expansion in tho school system arc with the school board, while tho limitation limita-tion of exponscs Is with tho district commissioners. com-missioners. I think it would ho much better to put complete control and iissponslbllity in the district commissioners, and then provide a board of school visitors, to bo appointed appoint-ed by the supremo court of the district, or hv tho president, from the different school districts of Washington, who, representing rep-resenting local nerds, nhall meet and make recommendations to the commissioners commis-sioners and to the superintendent of education edu-cation an educator of ability and experience. expe-rience. 1 who should he an appointee of and responsible lo the district commissioners. commis-sioners. PERMANENT IMPROVEMENTS. Among other items for permanent improvements im-provements appearing In tho district estimates esti-mates for liMl! Is one designed to substitute substi-tute for Willow Treo alley, notorious In the records of the pollen and health de-partuujnls, de-partuujnls, a. playground with a building containing baths, a gymnasium, and other oth-er helpful features, and I hopo congress will npprovo this estimate. Fair an Washington seems, with her beautiful streets and shade trees, and free, as tho expanse of territory which she occupies would seem to make her. from slums and Insanitary congestion of population, there are centers In the interior of squares where the very poor, and tho criminal classes as well, huddle together In tilth and noisome surroundings, and It Is of primary importance that these nuclei of disease and suffering and vlco should be removed, and that, thoro should ho substituted for them small parks ns hronthlncr snaceg. and model tenements having sufficient air space and meeting other hygienic requirements. Tho estimate for the reform of Willow Wil-low Tree alley, the worst of these places in the city, Is tho heglnnlng of a movement move-ment that ought lo attract the earnest attention .and support of congress, for congress cannot escape Its responsibility for tho existence of these human pest holes. The estimates for the district of Columbia Col-umbia for tho fiscal year 1012 provide pro-vide for tho repayment to the United States of 3G1G.Q00, one-fourth of the Moating debt that will remain on Juno 20. 1111. The bonded debt will be reduced re-duced In 1912 by about tho samo amount. The district of Columbia Is now In an excellent financial condition. Its own share of Indebtedness will. It Is estimated, estimat-ed, be less than $6,000,000 on June 30. 1312. as compared with about 19.000.000 on June 30, 1909. Revenues of District. The bonded debt, owed half and half by tho United States nnd tho district, will he extinguished by 192-1, and tho flouting debt of tho district probably long before that time. Tho revenues have doubled in tho last ten years, while the population during the same period has Increased but 1S.7S per cent. It is believed that, if due economy bo practiced, the district can soon emerge from debt, even while llnanclng Its permanent improvements with reasonable rapidity from current revenues. To this end. I recommend the enactment enact-ment into law of :i bill now before congress con-gress and known as the Judson bill which will insure tho gradual extinguishment extinguish-ment of the district's debt, while at the came time requiring that the many pemrjanent Improvements needed to complete com-plete a fitting capital city shall be carried car-ried on from year to-year and at a proper rate of progress, with funds derived from the rapidly increasing revenues. FREEDMEN'S BANK I renew my recommendation thai the claims of tho depositors In tho Frccdmcn's bank be recognized und paid by the passage of the ponding bill on that subject, NEGRO EXPOSITION. T also renew my recommendation that steps be taken looking to tho holding of a negro exposition expo-sition In celebration of the fiftieth anniversary anni-versary of the Issuing by Air. Lincoln of the Emancipation Proclamation. CIVIL SERVICE COMMISSION The civil aervlco commission haa continued Its useful duties during the year. The necessity for the maintenance of tho provision; pro-vision; of the civil servlco law was never nev-er greater than today. Officers responsible respon-sible for the policy of the administration, administra-tion, and thfdr Immediate pcrs-innl assistants as-sistants or deputies, should not be Included In-cluded within the clnssliiud service; 1ml, In my judgment, public opinion haa advanced ad-vanced lo lb'-' point where It would support sup-port a bi'l providing1 a securo tenure during cfflelcmy for all purely administrative adminis-trative officials. I entertain the profound conviction that it would greatly aid tho cause of ef-ficl'int ef-ficl'int and economical government, and of better politics If congress could enact n hill providing that the executive shall hac thT; power lo include in the classified classi-fied service all local offices under tho treasury department, the department of ABUNDANT CROP rursjpoRD Agricultural Products Kxceed UI09 .Mark by Three Hundred Hun-dred Millions. PK0SPKCT FOR BUSINESS IS CONSEQUENTLY BRIGHT Activities of Department Have Been Made More Potent by Legislation. Justice, tho postofflco department, the Interior In-terior department, and the department of commerce and labor, appointments to which now require tho confirmation of tho senate, and that upon such classification classifi-cation the advice and consent of Iho senate shall coaao to be required In such appointments. Tly their certainty of tenure, dependent on good service, and by their freedom from the necessity for political aetlvltv, theso local ofllcers would bo Induced to become more efficient public servants. Tho civil service law Is an attempt to solve tho problem of tho proper selection selec-tion of those who enter tho service. A better system under that law for pro-motloiiH pro-motloiiH ought to bo devised, but, given j -H-H-H-r i ! h -i :H-:-yHxv' V i It noems to me from tho past history that tho government has ! heon committed to a policy of on- ! ! couraglug tho limitation of tho . r day's work to olRht. hours in all ! r workB of construction initiated by -I I itself, and it Booms to he illogical to maintain a diil'eronco botwocu I government work done on govern-I govern-I incut soil and government work I done in a private establishment, .when the work is of such large ! I dimensions and involvos the cxpon- -I-I- dlture of much labor for a consid- ! I orablo period, so that the private ! manufacturer may adjust himself and his establishment to tho spo-I- cial tonus of employment that ho f must make with his workmen for ! i- this particular Job. ! I To require, however, that every ! I small contract of manufacture on- J ! tored into by tho govommont ! ! should bo carried out by the con- tractor with men working at eight ! 'h hours would bo to impose an in- 1 ! tolerable burden upon the govern- ! i mont by limiting its sourcos of v I supply and excluding altogether ! I tho groat majority of thoso who v would otherwise compote for its ! I- buBincsB. j. .j. HM!K--r-r-H--3-H--T -r-H-H-I--l-r-M--t- tho expenses of government and have found their efforts often blocked by lack of accurate Information containing a proper analysis of requirements and of actual and rcasonablo costn. The result re-sult of this Inquiry should enable tho executive In his communications to congress con-gress to glvo Information to which congress con-gress in entitled and which will enable 11 to promoto economy. I have requested tho head of each department to appoint committees on economy and efficiency In order lo secure se-cure fully co-operation In the movement by the employees of tho government themselves. 1 urge tho continuance of the appro- , : : s 1 Comparative cost of public schools in Washington and elsewhere. H 1 v (Prepared by W, V. Judson, Engineer.) ' 1 ' r-, : ' 1 A U. c D. IS. F. G. H. -.1. J, K. L- 'j ..' , 'A " O i Total Cosl of Schools. 3 2.H c ---IJ S3 p - 3" f 3? H i - "v S 2 5" 2s & ,t O 5 C O - n "5. oadO1 I ?,-V; ' cr? 22 -a a S ., go s?- S .. '', Pc ; sEg- fg-ff ': ; ' ltl? : H . :;'3 2.- 1 f '..Vl - , . o s 14 o c C - n . to tn s : Amoun-a ; p : ? ;? I : : o- : cH'f rJ"i 1 'l - .. Lx.L:i : 1 ; ; : & : H''' Jj Washlngtun -.r..-: .:; :i Cu25,00"0jHcnale upproprhitiou bill d?2,99S,9(j0j J 76 J FcT.S G 0 .7 Vcfii 1 .77Sf.'l 2 - 0 d?l,73C,I50" ?0.2370 ?0.uS2 4.l'Jb ?1,00G.28 H , ( . I I In confi:renct. il I I , .Baltlmyrc ;.' - r.flS.oTI 'Dei-umber .11. 1H08 1 I.Ol'.S.KO-H J9f. 10.S7S.1IH3 I.77S (!,0S 1.0 l,r,21,0S .!. 1910 .1S10 R.2.11 73S.So , :j .Pittsburg-...... : 1 rit7,ri2:: ,)an. :it, mo?: June I. PJ03 ;:.r.::n.07fii 20n 11.822,100 i.S2i o.i2.u i,fics,!:M c.oflso .232 7. ion am. 74 . l ifl 1 .wCleveland 'litl,lylAngusl :il 1S0S '.953.700 ISt I0.5fiC,20l f2,09t l.9f.7.0 l,7i::,l!l f.r)740 n.nyl HVJ.uf, r'tl . . Iluffclo v. ..:.... I'Ol.iJune JiO, 1909 I .StSt.:: X 102 0.072.000 1.I7S H.nS.O I.1-i7.:;rU 4. 7730 ,206 7,90fil 77fi.28 vil ;yan iianclcco , g:60,'j;t0.Iuno HO. I'JOU..; li2,7K).0:r.l 19!l fi,r,lR,i;;,l 1.070 C.1S.T.0 1,. II 2.53,0 h7.r.22i. h. lODOl 1.9291 1.231.70 J I ,.' ' Detroit , I :t7C,17l,Iuno .50. 1909 2,';70.r71 191 S.320.0S0 I.-I39 5,781 M 1,n0.S,0.")0 C.3020 .28.'0 fi.5r.fi 909.00 H -f Cincinnati ; I g:t5,2::0 August 31, 1908 2,272,703 200 7.13S.400 1.116 fi.30U.O 1,039,28;) O.r.RZO ,3180 fi.800 931.25 H i . " 'Milwaukee 327.S73 Doceniber 31. 1908 1,031, C07 197 7,3.Vj.73fi 1.069 6.SSI.0 1,008,24.-, 1.9740 .2210 7.200 '.USAS K1 It .Xew, Orleans 323.1 1"7 December 31. 190S 1,232,632 372 1.613,312 1,023 1.539.0 662.797 3.8140 .2650 7.030 647.00 M 1 Newark 302,32i;.Iune 30. 1009 2.5U1.4I3 J92 S.1SS.160 1.279 0.i02.0 I, 160.516 8. 1720 .3130 5. 606 1,111 .00 Mi 4 ' Minneapolis 207.527: December 31. I90S 1.930.505 J83 6.990.310 1.150 6,036.0 1,002.073 6.4890 ,2760 0.652 914.81 H ! J ..Icrscy City : 248,458 N'ovember 30, 1908 '1.245.091 18S 5,502,110 777 7,081.0 745.975 5,0110 .2260 7.376 960.00 H j Louisville 233.069lJune 30. 1909 "... S44.0I2 192 4.416.384 726 6,083.0 581. C19 3.6210 .1910 7.503 801.12 H . 1 "".' Information furnished by bureau of census April 29. 1910. correspond with year 1910-11. Annual report board of education. District of C'o- H h ' b Annual report commlooloner or education for liscaP earl9b'j, vol 2 'nn lunibla, for 1909, "p. 21, gives 1.07 per cent aa Increase of average enrollment for 1 !l 1 1 6I7-6C7. otic year. H I ' ,. ijiiofilcj-.i rnr Juno i i N i n 1 From tho number of teachers, 2201), slated by commissioner of education. 106 H- i ' t unoi uiji rauin.uc ror Juni. , 1J10. night-school teachers and 11 teachers of the deaf have been deducted. (Annual H A , . a V1 d,,lJ t compilation of tills tabic, May IJ. 1910, senate appropriation bill report Cleveland board or education, August 31, 190S.) t , in confercnci!, g Census bureau. 1307. H ft I ... '-'"'IVn- .re,,orl. mI".,!,s'on''' r education for fiscal year 1900. p. 0t8. glvoa h An a result of San Francisco earthquake over $1 000,000 spent hi new con- H II UU.-5) ac i(C06jOio. Thin llguro hau been Increased by 3.21 per cent, to atructloti und Included In total coat ror year, making It unduly largo. PRESENT LIS i APPEflRAMPLE No Need of Amendment lo Corporation Cor-poration Regulation Measures Meas-ures Necessary. MAY STOP AND 0BSBRYK KFFE0T OF ENFORCEMENT Abuses Which Certainly Did Exist Have Been Largely Eradicated. mcnt. to purchase an adequate annuity for him on retirement, this accumulation to bo Inalienably his and claimable .If he leaves the service before reaching tho retirement age or by his holrs In case of his death. This Is the principle upon which the GUIelt bill now pending la drawn. The Gillc-tt bill, however, goes further and provides that tho government shall contribute to the pension fund of those employees who aro now so advanced In age that their personal contributions will not. bo sufflclont to create their annuities before reaching the retirement ago. In m3' judgment this provision should bo nmonded so that the annuities of thoso employees shall bo paid out of the salaries appropriated for tho positions vacated by retirement, and that the illf-i X NO MORE CORPORATION REGULATION X. l f Except as above, I do not recommend any amendments to the interstate commorco law as it stands, I do X . not now rccommoml auy amendment to tho anti-trust law. In othor worth?, it seems to me that tho existing 4 X legislation with reforencc to tho regulation of corporations and the restraint of their business has reached a 4- point where we can stop for a whilo and witness tho offoct of the vigorous execution of tho laws on tho statute T books in restraining tho abuses which certainly did exist, and which roused the public to demand reform. X u tln . dvolP? need for further legislation, well and good, but until then lot ua execute what re havo. Due to tho reform movements of the present decade, thero has undoubtedly boon a great improve- f 4 mcnt in business methods and standdards. Tho groat body of business men of this ' country, thoso who aro T f rosponslblo for its commercial development, now have an earnest desire to obey the law and to snuare their X f conduct of business to its requirements and limitations. X T jpso will doubtless bo made cloarer by the decisions of the supreme court in cases pending before it. J. I bohevo it to bo m the interest of all the people of the country that for the timo being the activities f 4. of government, m addition to enforcing tho existing law, be directed toward tho economy of administration f j- and tho enlargement of opportunities for foreign trade, tho conservation and improvement of our agricul- X T tural lands, the building up of home industries, and tho strengthening of confidence of capital in domestic in- T vestment. 4- X the selected employee, thero romalns still tho question of promoting hla efficiency ef-ficiency and ids usefulness to the government, gov-ernment, and that can be brought about only by a careful comparison of unit work done by the individual and a pointing point-ing out of tho necessity for Improvement Improve-ment In this regard where Improvement is possible. INQUIRY INTO ECONOMY AND EFFICIENCY. EF-FICIENCY. The increase In tho activities activi-ties and in tho annual expenditures of the federal government has been so rapid and so great that tho timo has como to check the expansion of government activities ac-tivities In new directions until we have tested tho economy nnd efficiency with which tho government of today Is being carried on. The responsibility rests upon tho head of the administration. He Is held accountable ac-countable by the public, and properly so. Despite the unselfish and patriotic efforts of the heads of departments and others charged with responsibility of government, thero has grown up In this, country a conviction that the oxpensea of government aro too gTcat, The fundamental reason for tho existence exist-ence undetected of waste, duplication and bad management is tho lack of prompt, accurate information. Tho president of a private, corporation doing so vast a business as the government transacts would, through competent specialists, maintain the closest scrutiny on the comparative efficiency nnd tho comparative compara-tive costs In each division or department of tho business. He would know precisely what the duties du-ties and the activities of each bureau or division are in order to prevent overlapping. over-lapping. No adequate machinery at present exists for supplying the president presi-dent of the United States with such Information respecting tho business for which he Is responsible. For the Ilrst timo In the history of tho government, congress in the last session supplied this nocd and made an appropriation appro-priation to enable tho president to inquire in-quire Into the economy nnd efficiency of the executlvo departments, and 1 am now assembling an organization for the purpose. At the outset I find comparison between be-tween departments and bureaus impossible impos-sible for the reason that in no two departments de-partments are the ostlmalcs and expenditures expen-ditures displayed and classified alike. The llrst stop is to reduce all to a common com-mon standard for classification and judgment, and thl3 work Is now boing done. When It Is completed, tho foundation will bo la fil for a businesslike national budget, and for nuch a just comparison of the economy and efficiency with which the several bureaus and divisions arc conducted as will enable tho president and the heads of departments to detect waste, eliminate duplication, encourage the inlclligent and effective civil servants serv-ants whoeo efforts too often go unnoticed, unno-ticed, and securo tho public service ut the lowest possible coat. ECONOMY AND EFFICIENCY. The committees on appropriations of congress con-gress have diligently worked to reduco priatfon of $100,000 requested for the tlacal year of 1912. My experience leads mc to believe that while government methods are much criticised, the bnd results If wo do havo bad results arc not due to a lack of zeal or willingness on the part of the olvll servants. On the contrary. I believe that a flno spirit of willingness to work exists In the personnel, which, If properly encour-oged, encour-oged, will produce results equal to thORO secured In the best managed private enterprises. en-terprises. In handling government expenditure ex-penditure the aim Is not profit the aim Is the maximum of public service at the minimum of cost. Vc wish to ro -duce tho expenditure of tho government, govern-ment, and wo wish to save money to enable the government lo go Into some of the benellclnl projects which we aro debarred from taking up now because wo ought not to Increase our expenditures. expendi-tures. At a later date I shall Eend to congress con-gress a special message on thlB general subject. CIVIL SERVICE RETIREMENT. It Is Impossible to proceed fnr In such an Investigation without perceiving tho need of a suitable means of eliminating from the service tho superannuated. This can be done in ono of two ways, either by straight civil pension or by some form of contributory plan. Careful study of experiments made by foreign governments shows that three serious objections to tho civil pension payable out of the public treasury may be brought against It by the taxpayer, the administrative officer, and tho civil employee, respectively. A civil pension is bound to become an enormous, continuous, con-tinuous, and increasing tax on tho public pub-lic exchequer; It Is demoralizing to the service since It makes dlfflcull the dismissal dis-missal of Incompetent employees after thoy havo partly earned their pension; and It la disadvantageous lo the main body of employees themselves since It Is always taken into account In fixing salaries and only tho few who survive and remain In the eorvlco until pensionable pensionab-le ago receive the valuo of their deferred de-ferred pay. For this reason, after a. half century of oxperlence under a most liberal pension pen-sion system, tlvp civil servants of ISng-land ISng-land succeeded, about a year ago, In having the system so modified as to mako It virtually a. contributory plan wllh provision for refund of their theoretical theo-retical contributlona. The experience of England and othor counll'les shows that neither can a- contributory con-tributory plan bo successful, human nature na-ture being what It Is, which does not mako provision for the return of contributions, con-tributions, wllh Interest. In case of death or resignation before pensionable age. Followed to Its logical conclusion thla means that tho simplest and moat Independent In-dependent solution of tho problem for both employee nnd tho government Is a compulsory savings arrangement, tho employco to set aside from his salary a sum sufficient, with tho help of a liberal rale of Interest from the govcrn- fcrence between the annuities thus granted and the salaries may be used for the employment of efficient clerks at the lower grades. If the bill am bo thus amended I recommend Its passage, D.R It will Initiate a valuable system and ultimately result In a great saving In the public expenditures. INTERSTATE COMMERCE COMMISSION. COMMIS-SION. There has not tiocn time to test the benefit and utility of the amendments amend-ments to the lntcrstato commerce law contained in tho act approved Juno IS, 1910. Tho law aa enacted did not contain con-tain all tho features which I recommended. recom-mended. It did not specifically denounce ns unlawful tho purchase by one of two parallel and competing roads of the stock of the other. Nor did it subject to tho restraining Influence of the Interstate Inter-state commerce commission the power of corporations engaged In o-cratlng interstate in-terstate railroads to issue new stock and bonds; nor did it authoriso the making of temporary agreements between rail-rouds, rail-rouds, limited to thirty days, fixing tho samo rates for traffic between the same places. I do not press tho consideration of any of theso objects upon congress at this session. The object of the first provision provis-ion Is probably generally covered by the antl-lrust law. The second provision was in the act referred to the consideration of a commission com-mission to bo appointed by the executive execu-tive and to report upon tho matter to congress. That commission has been appointed ap-pointed and Is engaged In the investigation investiga-tion nnd consideration of tho question submitted under the la.w. It consists of President Arthur T. lladloy of Yale university uni-versity as chairman, Frederick C. Strauss, Frederick N. Judson, Professor B. H. Meyer nnd Walter L.. Fisher, with William K. S. Criswold as secretary. The third proposal led to so much misconstruction mis-construction of its object a6 boing that of the weakening of tho anti-trust law that I am not disponed to press it for further consideration. It was Intended to permit railroad companies to avoid useless rate cutting by a mere temporary tempo-rary ncqulcsconco in the same rales for tho same service over competing railroads, rail-roads, with no obligation whatovor to maintain those rates for any llmo. SAFETY APPLIANCES AND PROVISIONS. PRO-VISIONS. Tho protection of railroad employees from personal Injury is a subject sub-ject of the highest Importance and demands de-mands continuing attention. There have been two measures pending in congress, one for tho supervision of hollers and the other for tho enlargement of dangerous clearances. Certainly somo measures ought to be adopted looking to a prevention pre-vention of accidents from theso cause.!. It scorns lo me that, with respect to boilers a bill might well be drawn requiring re-quiring nnd enforcing by penalty a proper pro-per system of Inspection by the railway rail-way companies themselves which would accomplish our purpose. Tho entire removal of outside clearances clear-ances would be attended by such enormous enor-mous expense I hat some other remedy must be adopted. Ry the act of .May 6, 1910. the Interstate commerce commission commis-sion Ik authorised and directed to Investigate Inves-tigate accidents, to report their causeii and its recommendations. I suggest that the commission bo requested lo make a special report as to Injuries from outside out-side clearances and the best method of reducing them. VALUATION OF RAILROADS, The Interstate commerce commission has recommended rec-ommended appropriations for Iho purpose pur-pose of enabling It to enter upon a. valuation valua-tion of all rnllroads. This has always been within the Jurisdiction of (he commission, com-mission, but the requisite funds have been wanting. Statistics of the valuo of each railroad would bo valuable for many purposes, especially If wo ultimately ultimate-ly cnaot any limitations upon the power of the Interstate railroads to issue slocks and bonds, as I hope we may. I think, therefore, that In order to ncrmlt a correct understanding of tho facts. It would be wine to make a rcasonablo rca-sonablo appropriation lo enable the Interstate In-terstate commorco commission to proeoc-d with due dispatch to tho valuation of all railroads. I have no doubt that railroad companies themselves can and will greatly great-ly facilitate this valuation and make It much less costly hi time and money than has been supposed. FRAUDULENT BILLS OF LADING. Forged and fraudulent bills of lading purporting to bo Issued against cotton. Homo months, sinco, resulted in losses of several millions of dollars to American and foreign banking and cotton Interests. Foreign bankers then notified American Amer-ican bankers that, after October .'11 1910, they would not accept bills of exchnngn drnwn against bills of lading for cotton Issued by American railroad companies, unless American bankers would guarantee guaran-tee the integrity of thu bills of hiding. Tho American baukors rightly maintained main-tained that they were not Justified In giving such guaranties, and that, If W,HI-W-WHH!' I"M-I"W-I-f j i In my last annnal message I in- v J vltod tho attention of congroBB to ! r tho inadequacy of tho postal rato -I - imposed upon Bocond class mail ! matter in bo far an that includes -I magazinos, and showed by figures v prepared by experts of tho post-v post-v offlco department that tho govern- r mcnt was rendering a Borvice to ! v the magazines costing many mil-! mil-! lions in excess of the compensation ! paid. " ' I It ha.s boon Baid by tho post- r v master gonoral that a fair .uljust- i incht might be made under which v tho advertising part of tho maga- I V zlno should be charged for at a v I different and higher rato from that ! J of the reading matter. This would I rcliovo many usoful magazines ! r that aro not circulated at a profit ! ! aud would not shut them out from ! I tho uso of tho mails by a prohlbi- r 1 tory rate. j. ! they did so. tho United Slates would be the only country In the world whoso bills woro so discredited, und whose foreign Irado was carried on under such guaranties. guar-anties. The foreign bankers extended tho time at which these guaranties wore demanded demand-ed until December 31, 1910. relying upon us for protection In the meantime, as the money which they furnish to move our cotton crop Is of great value to this country. For the protection of our own people and the preservation of our credit In foreign Irado, I urge upon congress the Immediate enactment, of a law under which one who. In good faith, advances money or credit upon a hill of lading Issued by a common carrier upon an Interstate In-terstate or foreign shipment, can hold tho carrier liable for Iho value of the goods docribed in tho bill at the valuation valua-tion specified In the bill, at least to tho extent of tho advances mado In reliance upon It. Such liability exists under tho laws of many of the states. I see no objection to permitting two classes of bills or lading lad-ing to bo Issued: (1) Those undor which a carrier shall bo absolutely liable, as above suggested, and f 2 . those with respect re-spect lo which tho carrier shall assume no liability except for the goods actually delivered to the agent Issuing tho bill. The carrier might " he permitted to make a. small separate apoelflc charge In addition to tho rate of transportation for such guaranteed bill, as an insurance insur-ance premium agulii3t loss from tho added risk, thus removing tho principal objection which I understand Is made bv tho railroad companies to the imposition imposi-tion of the liability suggested, viz., that the ordinary transportation rato would not compensate them for the liability asr.umed by the absolute guaranty of tho accuracy of tho bills of lading. Punish Eailroad Agenta. I further recommend that a punishment punish-ment of fine and Imprisonment bo Imposed Im-posed upon railroad agents nnd shippers USELESS NAVTl YIROSJOI Abolition of Numerous Esfajj lishments With Concentration': for Canal Protection. i COMMANDER PEARY COMKsl IN FOR HIGHEST PRAI& I Pitting Recognition of Achieve ment in Discovering Nortlil Pole Should Be Made, f f for fraud or misrepresentation In cm noctlon with the issue of bills of ladln Issued upon Interstate and foreign shin ments. . Except as above. I. do not reconimen any amendments to the Interstate corn merce law as It stands. I do not no-recommend no-recommend any amendment to the ahtl trust law. In other words. It HeemB.i mo that the existing legislation wii reference to the regulation of cornor Hons and the restraint of their biislnt has reached a point where we can ste for a while and witness the effect of th vigorous execution of the inWs on th statute books in restraining the abus which certainly did exist, and WMc roused the public lo domand reform & If this test develops a need for'fuc ther legislation, well and good, but tint then let us execute what wo have, n-j to the reform movements of tho ureses decade, there has undoubtedly bi6nl great Improvement in buslnot-s methfi and standards. The great body of bu ness men of this country, tliotfb who ar responsible for Ita commercial dcvoloi ment. now have an earnest deslr--) obey the law and to snuare their coridnb of business to ita requirements and luii tat ions. j. These will doubtless be made clean by tho decisions of the supremo com in cases pending before it & I believe it to bo In the Interest ofSl the people of tho country that for tl time being the activities of government In addition lo enforcing the existing law be directed toward the economy of ad ministration and the enlargement of on portnnltles for foreign trade, the eon servatlon and Improvement or our anj cultural lands, the building up of ho Industries, and the strengthening of con fidence of capital In domestic lnvc( mcnt. |