Show 9 in of e Panama canal will find this the only nation unable' to great commercial avail In International maritime business of this great contribution to the means of the world’s commercial In- tercourse” Affairs of State at Length Are Dealt With in Annual Message BUT LITTLE President Discusses Tariff Board— Work Ship of Sub- Is Ufged sidy WORK TARIFF ABOUT ON PANAMA CANAL Need of Legislation Anticipating Completion of the Ditch Is Pointed Out— Change In Postal Rates-Parcels Post and Postal — Economy Urged 8avlngs 6— President Dec Washington annual message to congress oontalned 40000 words and is said to Jbe the longest document of its kind In It he reviews the ever written work of each of the administrative departments beginning with the state He devotes considerable department pace to the satisfactory settlement of the fisheries dispute with England through the medium of the Hague Tribunal and recounts both the history of the fisheries dispute and the establishment of the tribunal In connection with the state department he tells of the Important political happenings of the past twelve months throughout the entire world gnd the action of this country In connection with them Tariff Negotiations Referring to the negotiation of new President Taft tariff agreements Taft's says: — “The new tariff law In Section 8 the maximum and minirespecting mum tariffs of the United States which provisions came Into effect on April 1 1910 Imposed upon us reof sponsibility determining prior to that date whether any undue discrimination existed against the United States and its products in any country of the world with which we sustained commercial relations “In the case of several countries instances of apparent uhdue discrimination against American commerce were found to exist These discriminations were removed by negotiation Prior to April 1 1910 when the maximum tariff was to come into operation with respect to Importations from all those countries in whose favor no proclamathe minimum tariff tion applying should be Issued by the president one r hundred and such proclamations were Issued “This series of proclamations embraced the entire commercial world and hence the minimum tariff of the United States has been given universal application thus testifying to the character of our trade satisfactory relations with foreign countries “Marked advantages to the commerce of the United States were obtained through these tariff settle- ments policy of broader and closer relations with the Dominion of which was Initiated in the Adjustment of the maximum and minimum provisions of the tariff act of 1909 has proved August mutually It Justifies further efforts beneficial for the readjustment of the commercial relations of the two countries so that their commerce may follow the ohann'els natural to contiguous countries aad be commensurate with the steady expansion of trade and Industry on both sides of the boundary “The trade Canada ' Bne” Ship 8ubsldy The president urges such action as believes will Increase American abroad and says: "Another Instrumentality Indispensable to the unhamapered and natural development of American commerce Is All maritime and merchant marine commercial nations recognize the imThe greatest portance of this factor nations our competitors commercial mafoster their merchant jealously rine Perhaps nowhere is the need for rapid and direct mall passenger communication and freight quite so urgent as between the United States We can secure and Latin America In no other quarter of the world such Immediate benefits In friendship and commerce as would flow from the esof direct lines of comtablishment with the countries munication of Latin Amerloa adequate to meet the of a rapidly Increasing requirements of the reciprocal depenappreciation dence of the countries of the western upon each other’s prodhemisphere ucts sympathies and assistance “I alluded to this moat Important subject in my last annual message It has often been before you and I need not recapitulate the reasons for its Unless prompt acrecommendation tion be taken the completion of the he trade Governmental Expense To no one subject does he devote more space than to the expense of the various government conducting departments and the urgent need for economy and In this connection he says: “Every effort has been made by each department chief to reduce the estimated cost of his department for the ensuing fiscal year ending June 1912 I say this In order that congress may understand that these estimates thus made present the smallest sum which will maintain the departments bureaus and offices of the government and meet its other obligations under existing law and that a cut of these estimates would result In embarrassing the executive branch of the government In the performance of Its duties This remark does not apply to the river and harbor estimates except to those for expenses of maintenance and the meeting of obligations under authorised contracts nor does It apply to the public building bill nor to the navy building proOf course as to these congram gress could withhold any part or all of the estimates for them without Interfering with the discharge of the ordinary obligations of these functions of Its departments bureaus and offices “The final estimates for the year ending June 80 1912 as they have been sent to the treasury on November 29 of this year for the ordinary expenses of the government Including those for public buildings rivers and harbors and the navy building program amount to 163049401312 This Is 26296488736 less than the apfor the fiscal year endpropriations ing June 80 1911 It Is 21688315344 less than the total estimates Includestimates submitted ing supplemental to congress by the treasury for the 1911 year and Is 2567465939 less than the original estimates submitted by the treasury for 1911 “These flugres do not Include the for the Panama canal appropriations the policy In respect to which ought to be and Is to spend as much each year as can be economically and effectively expended in order to complete the canal as promptly as possible and therefore the ordinary motive for cutting down the expense of the government does not apply to apfor this purpose propriations of expendi“Against the estimates tures 264049401312 we have estimat- ed receipts for next year 2680000000 making a probable surplus of ordinary receipts over ordinary expenditures of about 250000000 or taking Into account the estimates for the Panama canal which are 25692084769 and which will ultimately be paid In bonds ltw will leave a deficit for the next year of about 27000000 If congress hall conclude to fortify the canal” The Tariff The President devotes but little space to the subject of the tariff law and of It he says: “The schedules of the rates of duty In the Payne tariff act have 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 party which Is refor It that customs bill sponsible should be a tariff for the protection of home Industries the measure of the protection to be the difference between the cost of producing the Imported article abroad and the cost of with producing It at home together such addition to that difference as might give a reasonable profit to the home producer The basis for the criticism of this tariff is that In rethe schedules spect to a number the declared measure was not followed but a higher difference retained or Inserted by way of undue discrimination In favor of certain Industries and manufactures Little If any of the criticism of the tariff has been directed against the protective principle above stated but the rffaln body of the criticism has been based on the attempt to conform to the measure of protection was not honestly and sincerely adhered to” The Tariff Board The president refers to the appointment of a board of experts to Investigate the cost of production of various In the schedules of articles included the tariff and says: "The tariff board thus appointed and authorized has been diligent in preparing itself for the necessary of those who The hope vestigations have advocated the use of this board for tariff purposes Is that the question of the rate of a duty imposed shall become more of a business question and less of a political question to be ascertained by experts of long trainThe ing and accurate knowledge halt In business and the shock to business due to the announcement that a new tariff bill Is to be prepared and will be avoided by put in operation treating the schedules one by one as ocpaslon shall arise for a change in the rates of each and only after a report upon the sohedule by the tariff board competent to make such report It is not likely that the board will be able to make a report daring the present session of congress on any of the schedules because a proper examination Involves an enormous amount of detail and a great deal of care but I hope to be able at the opening of the or at least during the new congress to bring to session of that congress the facts In regard to Its attention in the present tariff those schedules need to that may prove amendment" Our Island Possessions at my “During the last summer the secretary of war visited request the Philippine Islands and has de- to the magazines costing many milHe lions In excess of the compensation scribed his trip In the report An answer was attempted found tbs islands In a state of tranto paid this by the representatives of the due quillity and growing prosperity and a reply was filed to largely to the change In the tariff magazines laws which has opened the markets this answer by the postoffice departThe utter Inadequacy of the ment of America to the products of the Philippines and has opened the Phil- answer considered in the light of the I markets to American manu- reply of the postofflce department ippine must must appeal to any think factures person Whether the answer “The year has been ond of prosperwas all that could be said In behalf of ity and progress' In Porto Rico the magazines la another question Panama Canal agree that the question Is one of fact “At the Instance of Colonel I Insist that If the tact Is as the but In officer the army engineer experts of the postofflce department charge of the work on the Panama show that we are furnishing to the canal I have just made g visit to of magazines a service worth the Isthmus to inspect the work done owners millions more than they pay for It and to consult with him on the Justice then the rate that requires ground as to certain problems which The Increase In are likely to arUe In the near fu- should be Increased receipts of the department resultture The progress of the work la the from this change may be devoted ing most satisfactory If no unexpected to Increasing the usefulness of the deobstacle presents Itself canal the In establishing a parcels will be completed well within the partment In and reducing the cost of post time fixed by Colonel Goethals It has been postage to one cent January 1 1915 and within the said by the postmaster general that a estimate of cost 2375000000 fair adjustment might be made under “Among questions arising for preswhich the advertising part of the ent solution Is the decision whether magazine should be charged for at a I have the canal shall be fortified different and higher rate from that of already stated to the congress that the reading matter This would reI strongly favor fortification and I lieve many useful magazines that are now reiterate this opinion and ask not circulated at a profit and would of the subject in not shut them out from the use of the your consideration the light of the report already be- malls by a prohibitory rate fore you made by a competent board “With respect to the parcels post I “Another question which arises for respectfully recommend Its adoption consideration and possible legislation on all rural delivery routes and that Is the question of tolls in the canal II pounds —the international is necessarily affected This question made the limit of carriage In such which will by the probable tonnage post” canal the go through Abolish Navy Yards what the tolls “In determining The president calls attention to cershould be we certainly ought not to of Insist that for a good many years to tain reforms urged by the secretary for the navy which he recommends come they should amount to enough and continues: adoption on the Investto pay the Interest estimates of "The the navy department of 2400000000 which the United ment are 25000000 less than the apStates has made In the construction of the canal We ought not to do propriations for the same purpose last this first because the benefits to be year and Included In this Is the buildStates from ing program of the same amount as derived by the United this expenditure is not to be meas- that submitted for your considerationout last year It is merely carrying ured solely by a return upon the inof building two battleships a vestment If It were then the con- the plan a few needed auxiliary vesstruction might well have been left year with sels I earnestly hope that this proto private enterprise will be adopted ' gram Is that the “My own Impression "The secretary of the navy has tolls ought not to exceed 21 Per net that given personal examination to every ton and I should recommend within certain limits the president be navy yard and has studied the uses authorised to fix the tolls of the carnal of the navy yards with reference to of our fleet With a and adjust them to what seems to the necessities less than half the fleet considerably be commercial necessity 1 cannot close this reference to size of that of the British navy we as a have shipyards more than double the the canal without suggesting to the interstate number and there are several of these wise amendment shipyards expensively equipped with law a provision prohibiting commerce Interstate commerce railroads from modem machinery which after Investigation the secretary of the navy beships engaged owning or controlling lieves to be entirely useless for naval the Panama In the trade through He asks authority to abanpurposes canal I believe such a provision don certain of them and to move their may be needed to sive to the people where It of the United States the benefits of machinery to other places of use” the competition In trade between the c&nbe made "The complete success of our couneastern and western seaboards which In arctic exploration should not rethis canal was constructed to secure” try The main unnoticed unparalleled Department of Justice achievement of Peary In reaching the Discussing the affairs of the de- north pole April 6 1909 approved by the of president Justice partment critical examination of the most exsays: pert scientists has added to the dis“I Invite especial attention to the tinction of our navy to which he beprosecutions under the federal law longs and reflects credit upon his ‘bucket shops’ and of the country I recommend fitting recogniof those schemes to defraud in which tion by congress of the great achievethe use of the mall Is an essential ment of Robert Edwin Peary” conspiracy part of the fraudulent Conservation prosecutions which have saved ig"The subject of the conservation of norant and weak members of the public and are saving them hundreds of the public domain has commanded the The violations of attention of the people within the last millions of dollars law present perhaps the two or three years the before the "There Is no need for radical remost Important litigation department and the number of cases form In the methods of disposing of what are really agricultural landB The filed shows the activity of the government in enforcing that statute present laws have worked well The “In a special message last year I enlarged homestead law has encouraged the successful farming of lands brought to the attention of congress In the the propriety and wisdom of enacting regions a general law providing for the In"Nothing can be more Important In corporation of Industrial and other the matter of conservation than the It was treatment of our forest lands engaged In Interstate comcompanies merce and I renew my recommenthe ruthless destruction of probably dation In that behalf” forests In the older states that first In the United called attention to the necessity for a The crying need States of cheapening the cost of liti- halt In the waste of our resources gation by simplifying Judicial proced"In the present forest reserves there Is final ure and expediting Judgment are lands which are not properly forest and which ought to be subject to pointed out and action looking to correction of these evils Is urged This has caused homestead entry an inThe president recommends some local irritation t We are carein the salaries of federal crease fully eliminating such lands from foror where their eliminaJudges est reserves for tion is not practical listing them Postal Savings Banks “At Its last session congress made entry under the forest homestead act for the establishment of ought to trust the execu"Congress p revision deof the use reservation tive to the power banks by postoffice savings partment of this government by which only with respect to land most valuable for forest purposes under general control of trustees conDuring the administration 62250000 the present general sisting of the postmaster secretary of the treasury and the at- acres of land largely torney general the system could be have been excluded from forest reof land and 3500000 towns acres cities In and few and a serves begun to cover within Its opera- principally valued for forest purposes enlarged tions as many cities and towns and as have been Included in forest reserves making a reduction In forest reserves large a part of the country as seemed land amounting to wise of The initiation and establish ment of such a system has required a 2750000 acres” on the part of great deal of study Coal Lands the experts in the postoffice and treas“The next subject and one most Imury departments but a system has consideration is the now been devised which Is believed to portant for your of the coal lands in the be more economical and simpler In its disposition Alaska At the bethan any similar system United States andadministration operation of this there ginning have been perabroad Arrangements from entry for purfected so that savings banks will be were withdrawn opened In some cities and towns on the 1st of January and there will be a extension of the benefits of gradual the plan to the rest of the country" “It Is gratifying" says the president “that the reduction In the postal without deficit has been accomplished any curtailment of postal facilities On the contrary the service has been greatly extended during the year in all Its branches” Mall “In my last annual message I invited the attention of congress to the of the postal rate Imposed inadequacy mall matter In so upon and far as that includes magazines showed by figures prepared by experts that the of the poBtofflce department government was rendering a servioe 17867000 acres poses of classification Since that time there have been withby my order from entry for 78977745 acres making classification of 96844745 acres a total withdrawal of the acres thus withMeantime drawn 1061889 have been classified and and found not to contain coal have been restored to agricultural entry and 4726091 acres have been classified as coal lands while 7993239 acres remain withdrawn from entry In addition and await classification 337000 acres have been classified as coal lands without prior withdrawal the classified coal thus Increasing lands to 10429372 acres “Under the laws providing for the of coal lands In the United disposal States tbs minimum price at which drawn to ba Eold Is J10 lands are permitted of the an acre but the secretary terior has the power to fix a maximum sell and to at that price price of all the coal supply “As It seems Is held by the government wise that it should retain such con irol over the mining and the sale as furthe relation of lessor to lessee nishes “The secretary of the Interior thinks there are difficulties in the way of easing public coal lands which objections he has set forth In his report the force of which I freely concede entirely approve his stating at length In his report of the objections iu order that the whole subject to congress but may be presented for the alter a full consideration I have given above I favor a It” leasing system and recommepd Water Power Bites “Prior to March 4 1909 there had been on the recommendation of the reclamation service from withdrawn agricultural entry because they were as useful for power sites regarded which ought not to be disposed of as agricultural lands tracts amounting to about 4000000 acres The withwere hastily made and Indrawals cluded a great deal of land that was not useful for power sites They were to Include the power sites intended on 29 rivers in 9 states Since that acres have been retime 3475442 stored for settlement of the original because 4000000 they do not connew tain power sites and meantime withdrawals have been made which with other restorations based upon field examination result in withdrawals at present effective of 1218356 acres on vacant public land and acres on entered public land or a These withtotal of 1420553 acres drawals made from time to time cover all the power sites Included in the and first withdrawals many more on 151 rivers and In 12 states The disposition of these power sites Involves one of the most difficult questions presented In carrying out practical conservation “The subject Is one that calls for new legislation It has been thought that there was danger of combination to obtain possession of all the power sites and to unite them under one control Whatever the evidence of this or lack of It at present we have to know that had enough experience and would be profitable combination the control of a great number of power at will within certain sections “However this may be It is the to see plain duty of the government to It that In the utilization and development of all this Immense amount conditions shall be of water power Imposed that will prevent extortionate charges which are the usual acof monopoly companiment is of conservation "The question not a partisan one' and I sincerely hope that even in the short time of the present session consideration may which be given to those questions and have now been much discussed that action may be taken upon them” Alaska “With reference to the government I have nothing to add to of Alaska I made in my the recommendations last message on the subject I am characconvinced that the migratory ter of the population its unequal disof numand Its smallness tribution ber which the new census shows to to the be about 60000 In relation of the territory enormous expanse to make It altogether Impracticable are In give to those people who Alaska today and may not be there a year hence the power to elect a legislature to govern an Immense territory to which they have relation so little permanent" Pensions “The uniform policy of the government In the matter of granting pensions to those gallant and devoted men who fought to save the life of the nation In the perilous days of the great civil war has always been of the most liberal character Those men are now rapidly passing away The best obtainable official statistics show that they are dying at the rate a over three thousand of something month and In view of their advancing years this rate must inevitably in To the rapidly increase proportion man who risked everything on the field of battle to save the nation In the hour of Its direst need we owe a debt which' has not been and should not be computed in a begrudging or spirit” parsimonious Bureau of Corporations Referring to the report of the comof corporations missioner the president says: finds a condi“The commissioner tion In the ownership of the standing timber of the United States other timber that calls than the government for serious attention The direct Investigation made by the commissioner covered an area which contains 60 timper cent of the ber of the country "His report shows that one half of the timber in this area Is owned by and 200 Individuals corporations that 14 per cent Is owned by these and that there la very corporations of stock extensive as well as other circumstances all pointing to friendly relations among those who own a majority of this timwhich ber a relationship might lead for the maintenance to a combination of a price that would be very detrimental to the public Interest and would create the necessity of removing all tariff obstacles to the free Importations of lumber from other coun- tries” Bureau of Labor "The commissioner of labor has been actively engaged In composing the differences between employers and emin Interstate tranaployees engaged under the Erdman act Jofafr portatlon of the Interstate ly with the chairman commerce commission “I cannot speak In too high terms of th success of the two officers In conciliation and settlement of controversies which but for their Interposition would have resulted disastrously to alf interests Civil Service Commission “The civil service commission hao continued its useful duties during the The necessity for the mainteyear nance of the provisions of the civil service law was never greater than Officers responsible for the polday and thelv icy of the administration Immediate personal assistants or deputies should not be Included within tha ' service classified but In my Judgment publio opinion has advanced to the point where it would support a bill providing a secure tenure during effifor all purely administrative ciency officials I entertain the profound conviction that It would greatly aid tha cause of efficient and economical government and of better politics If congress could enact a bill providing that the executive shall have the powet to Include In the classified service all local offices under the treasury depart ment the department of justice tha postofflce department the Interior department and the department of com merce and labor to appointments' which now require the confirmation of the senate and that upon such classification the advice and consent of the senate shall cease to be r In such appointments qulred By their certainty of tenure dependent on good service and by their freedom from the necessity for political activity these local officers would be lm duced to become more efficient publla ta servants Economy and Efficiency “The Increase in the activities and In the annual expenditures of the federal government has been so rapid and so great that the time has com to check the expansion of government activities In new directions until we have tested the economy and efficiency with which the government of today is The responsibility being carried on rests upon the head of the admlnlstrm He la held accountable tlon by the public and properly so Despite the unselfish and patriotic efforts of the heads of departments and others of govene charged with responsibility ment there has grown up In this canm try a conviction that the expenses of government are too great The- fnm damental reason for the existence am detected of waste duplication and bad management Is the lack of prompt Y curate Information ' “I have requested the head of each department to appoint committees on economy and efficiency In order to cure full cooperation In the movement of the government by the employees m themselves "I urge the of the am continuance of 2100000 requested fos propriatlon fiscal year 1912 "My experience leads me to believs that while government methods are much criticized thesJbad results — If we do have bad results— are not due to lack of zeal or willingness on the part of the civil servants” Interstate Commerce y “There has not been time to test the benefit and utility of the amendments to the interstate commerce law contained In the act approved June IS 1910 The law as enacted did not contain all the features which I recommended It did not specifically denounce as unlawful the purchase by one of two parallel and competing roads of the stock of the other Not did It subject to the restraining Influence of the Interstate Commerce commission the power of corporations engaged In operating Interstate railroads to Issue new stock and bonds nor did It authorize the making of temporary agreements between railroads limited to 30 days fixing the same rates fot traffic between the same places of “I do not press the consideration any of these objects upon congress at this session “The interstate commerce commission has recommended appropriations for the purpose of enabling It to enter This upon a valuation of all railroads has always been within the Jurisdicbut the requition of the commission Statissite funds have been wanting tics to the value of each railroad would be Valuable for many purposes espeenact we ultimately any limcially if itations upon the power of the Interstate railroads to Issue stocks and bouds as I hope we may of our own “For the protection of our people and the preservation credit In foreign trade I urge upon the Immediate enactment of congress a law under which one who In good faith advances money or credit upon a bill of lading Issued by a common carrier upon an Interstate or foreign shipment can hold the carrier liable for the value of the goods described In the bill at the valuation specified In the bill at least to the extent of the advances made In reliance upon It “I further recommend that a punishment of fine and Imprisonment be Imposed upon railroad agents and shipIn pers for fraud or misrepresentation with the Issue of bills of connection lading issued upon Interstate and for- the eign shipments “Except as above I do not recomto the interstate mend any amendment I do not commerce law as It stands to any amendment now recommend In other words it law the seems to me that the existing legislato the regulation tion with reference and the restraint of of corporations their business has reached a point where we can stop for a while and witness the effect of the vigorous execution of the laws of the statute books In restraining the abuses swhich certainly did exist and whtctTroused tha public to demand reform” r |