Salt Lake Telegram | 1905-12-05 | Page 5 | President Takes High Ground in His Message Against Corporations

RES1ENT TKKES HIGH :A V- fflOW IN HIS P1ESSAGE-'J; P1ESSAGE-'J; AGHtMST WORRTIONS i ... It would not be wise to confer on the Government the right of - civil- action against the beneficiary of a rebate for at least twice the value of the rebate: this would help stop what is really blackmail. Elevator allowances should be stopped, for they have now grown to such an extent ex-tent that they are demoralising and are used as rebates. , ' The best possible regulation . of rates would, of course, be that regulation secured se-cured by an hdnest agreement among the railroads' themselves to carry out - the law. Such a general agreement would, for Instance, at once put a stop to the efforts of any one big shipper or big railroad rail-road to discriminate against or secure advantages ad-vantages over some rival: and such agreement would make the railroads themselves agents for enforcing the law. The power vested In the Government to put a stop to agreements to the detriment of the public should. In my Judgment, be accompanied by power to permit, under specified conditions and careful supervision, supervis-ion, agreements clearly In the- Interest of the public, i But, In my Judgment the 'necessity for giving this further power Is by no means as great as the necessity for giving the commission or administrative body the other powers I have enumerated above; and It mav well be Inadvisable to attempt to vest this particular power in the commission com-mission or other administrative body until un-til it already possesses and Is exercising e r nurant hv far .the most import- i ... the Nation. Is a good thing only so far as It Is accompanied by and develops a high standard of conduct honor, Integrity Integ-rity and courage. - The kind of business prosperity that blunts the standard of honor, that puts an Inordinate value on mere wealth, that makes a man ruthless and consclousless In trade and weak and cowardly In cltlsenshlp. . Is not a good thing at all, but a very bad thing for the Nation. This Government stands for manhood first and for business only as an adjunct of manhood. The question of transportation lies at the root of all Industrial success, and the revolution In transportation which has taken place during the last half century cen-tury has been the most Important factor In the growth of the new industrial conditions. con-ditions. Most emphatically we do not wish .to see the man of great talents refused re-fused the reward for his talents. Still less do we wish to see bltn penalised; but we do desire to see the system of railroad transportation so handled thit the strong man shall be given no advantage ad-vantage over'the . weak man. We wish to Insure as fair treatment for the small town as for the big city; for the small shipper as for the big shipper. In the old days the highway of commerce, com-merce, whether by water or by a road on land, was open to all; it belonged to the public and the traffic along It was free. At present the railway Is this highway, high-way, and we must do our beat to see that It is kept open to all on eqiuxl terms. Un- To the Senate and House of Repre-sentatlves: Repre-sentatlves: . The people of this iountry continue to enjoy great prosperity. Undoubtedly v .. '. there will be ebb and now In such pros-perlty, pros-perlty, and this ebb and flow will be felt t, more or less by . all members of the com-, com-, munlty. both- by the deserving and the undeserving. ' Against the wrath of the . Lord the wisdom of man cannot avail; . In times of flood or drought human- Ingenuity In-genuity can but 'partially repair the IBs-' ' ' aster'. " X general failure of crops would hurt ail of us. Again, If the folly of man .mars the general well-being, then those . who are innocent of the folly will have t- . to pay part of the penalty Incurred by those who are guilty of the folly. ..A panic brought' on by the speculative ' folly of part of the business community 1 ' would hurt the whole business com munity. But such stoppage of welfare, . . though it might be severe, would not be ' lasting. In the long run -the one vital factor In the permanent prosperity of ; the country is the high individual- char-. char-. . : acter of the average American worker, the average American cltisen, no matter whether his work be mental or manual. whether he be farmer or wage-worker, business man or professional man. In our- industrial and social system the i Interests of all men are so closely lnter-'. lnter-'. twined that in the Immense majority of cases a straight-dealing man who by his - efficiency, by his Ingenuity and industry, benefits himself must also benefit others. ! Normally the man of great productive ' capacity who becomes 'rich by .guiding ' the labor of many other men does so by enabling them to produce more than they -' t could produce without his guidance; and i - : both he and they share in the benefit, I -, which cornea also to the public at large, i The superficial fact that the sharing i may be unequal must never blind us to I the underlying fact that there is this ,. I sharing and that the benefit comes in A- V tome degree to each man concerned. Aev Normally the wage-worker, the man . Tar small means, - and the average con- - ' turner, as well as the average producer, ' - are all alike helped by making conditions I such that the man of exceptional bust-' bust-' ness ability receives an exceptional ye-. ye-. ward for his ability. Something can be 'done " by legislation to help the general . iprosperlty; but no such help of a per- tlonal laws on this subject have hitherto been of a negative or prohibitive rather than -an affirmative kind, and still more that they have In . part sought to prohibit pro-hibit what could not be effectively prohibited, pro-hibited, and have in part in the prohibitions prohibi-tions confounded what should be allowed , and what should .not be allowed. It is generally useless to try to prohibit all restraint on competition. .- whether this restraint be reasonable or unreasonable; and where It is not useless It is generally hurtful. Events have shown that it Is not possible adequately to secure the enforcement en-forcement of any law of this kind by Incessant In-cessant appeal to the courts. TBTJST PROSECUTIONS HAVE TAILED OF RESULT The Department of Justice has for the last four - years devoted more attention to the enforcement of the anti-trust legislation than to anything else. Much has been accomplished; particularly marked has been -the moral effect of the prosecutions; but" It is Increasingly evident evi-dent that there will be a very insufficient beneficial result m the way of economic change. - . - The successful prosecution of one device de-vice to evade the law Immediately develops de-velops snother device to accomplish the same purpose. What Is needed la not sweeping prohibition of every arrangement,- good or bad. which may tend to restrict competition, but such adequate supervision and regulation as will prevent pre-vent any restriction of competition from being to the detriment of the public as well as such supervision and regulation as will prevent other abuses in no way connected with restriction of competition. competi-tion. Of these abuses, perhaps the chief, although al-though by no roeajs the only one, la overcapitalisation -generally itself the result of dishonest promotion because of the myriad evils It brings In Its train; for such overcapitalisation often means an inflation that Invites business panic; It alwavs conceals the true relation of the profit earned to the capital actually invested, and it creates a burden of Interest In-terest payments which Is a fertile cause of Improper reduction In or limitation of wages; it damages the small Investor, discourages thrift, and encourages gambling and speculation; while perhaps worst of all Is the trlcklness and dis like the old highway It is a very niracuit and complex thing to manage, and It H far better that It should be managed by private Individuals than by the Government. Govern-ment. But it can only be ao managed on condition that Justice Is done the public. It is because. In my Judgment, public ownership of railroads Is highly undesirable undesir-able and would probably in this country entail far-reaching disaster, that I wish to see such provision and regulation of them in the Interest of the public as will make It evident that there is no need for public ownership. ARGUMENT 07 OPPONENTS IS UP FOB DISCUSSION The opponents of Government 'regulation 'regula-tion dwell upon the difficulties to be encountered en-countered and the intricate and Involved nature of the problem. Their contention is true. It Is a complicated and delicate problem, and aU kinds of difficulties are sure to srise In connection with any plan of solution, while no plan will bring all the benefits hoped for by its more optimistic op-timistic adherents. Moreover, under any healthy plan, the benefits will develop gradually and not rapidly. Finally, we must clearly understand that the public servants who are to do this peculiarly pecu-liarly responsible and delicate work, must themselves be of the highest type both as regards integrity and efficiency. They must be well paid, for otherwise able men cannot In the long run be secured; and they must possess a lofty probity which will revolt as quickly as the thought of pandering to any gust or popular prejudice against rich men as at the thought of anything even remotely remote-ly resembling subserviency to rich men. But while I fully admit the dlculties in ant of all the powers I recommend as indeed in-deed the vitally Important power that to fix a given maximum rate, which rate, after the lapse of a reasonable time, goes into full effect, subject to review by the courts. . . All private car lines. Industrial . roads, refrigerator charges, snd the like should be expressly put under the supervision of the Interstate Commerce commission or some similar body so far as rates and agreements practically affecting rates, are concerned. The private car owners ana the owners of Industrial railroads are entitled en-titled to a fair and reasonable compensation compensa-tion on their investment, but neither private pri-vate cars nor industrial railroads nor spur traoks should be utilized as devices for securing preferential rates. A rebate In Icing charges, or In mileage, or hi a division di-vision of the rate for refrigerating charges is Just as pernicious as a rebate In any other way. No lower rate should apply on goods Imported than actually obtains on domestic goods from the American, seaboard to destination, except In eases where water competition ls.the controlling controll-ing Influence. PUBLICITY OP ACCOUNTS 07 COMMON CARRIERS - - There should be publicity of the accounts ac-counts of common carriers: no common carrier engaged in Interstate business should keep any books or memoranda other than those reported pursuant to law or regulation, and these books -or memoranda memo-randa should be open to the Inspection of the Government. Only in this way can violations or evasions of the law be surely detected. A system of examination of railroad accounts should be provided sim ilar to that now conauctea into me national na-tional banks by the bank examiners; a few first-class railroad accountants, if they had proper direction and proper authority au-thority to inspect books and papers, could accomplish much In preventing willful violations vio-lations of the law. It would not be necessary neces-sary for them to examine Into the accounts ac-counts of any railroad unless for good reasons they were directed to do so by the Interstate Commerce commission. It la greatly to be desired that some way might be found by which an agreement agree-ment as to transportation within a State Intended to operate as a fraud upon the Federal Interstate commerce laws could be brought under the Jurisdiction of the Federal authorities. At present It occurs that large shipments of Interstate traffic are controlled by the concessions on purely pure-ly State business, which, of course, amounts to an evasion of the law. The commission should have power to enforce fair treatment by the great trunk lines of lateral and branch lines. I urge upon the Congress the need of providing . for expeditious action by the Interstate Commerce commission In all these matters, whether In regulating rates for transportation or for storing or for handling property or commodities In transit. tran-sit. The history of the cases litigated under the present commerce act shows that Its efficacy has been to a great degree de-gree destroyed by the weapon of delay, almost the most formidable weapon Id the ha ids of those whose purpose it is to violate vio-late the law. Let me most earnestly say that these recommendations are not made In any spirit o hostility to the railroads. On ethical grounds, on grounds of right, such i hostility would be Intolerable; and on grounds of mere National self-interest we must remember that such hostility would tell agalnsU.the welfare not merely of some few rich men, but of a multitude of small Investors, a multitude of railway employees, wage-wotkers; - and most severely se-verely against the. interest of the public as a whole. I believe that on the whole our railroads have done well and not ill; but the railroad men who wish to do well should not be exposed to competition with those who have no such desire, and the only way to secure this end Is to give to some Government tribunal the power to see that Justice is done by the unwilling exactly as it Is gladly done by the willing. Moreover, if some Government body is given Increased power the effect will be to furnish authoritative answer on behalf of the railroad whenever Irrational clamor against It Is raised, or whenever charges made against It are disproved. I ask this legislation not only In the Interest In-terest of the public, but In the Interest of the honest railroad man and the honest shipper alike, for It is they who are chiefly jeoparded by the practices of their dishonest dis-honest comeptitors. This legislation honesty which it implies ior narm 10 morals is worse than any possible harm to material Interests, and the debauchery of politics and business by great dishonest dis-honest corporations is far worse than any actual material evil they do , the bublic. ' ' . A , Until the National Government obtains. In some manner which the wisdom of the Congress may suggest, proper control over the big corporations engaged in interstate commerce that la over the great majority of the big corporations-it corporations-it will be impossible to deal adequately with these evils - I am well aware of the difficulties of the legislation that I am suggesting, and of the need of temperate and cautious action In securing It. I should emphatically emphat-ically protest against improperly radilcal or hasty action. The first thing to do Is to deal with the great corporations engaged en-gaged In the business of interstate trans portatlon. COMMISSION'S POWERS RAILROAD REBATING As I said In my message of December ( last, the Immediate and most pressing need, so far as legislation is concerned, is the enactment into law of some scheme to secure to the agents of the Government Govern-ment such supervision and regulation of the rates charged by the railroads of the country engaged In Interstate traffic as shall summarily and effectively prevent pre-vent the Imposition of unjust or unreasonable unrea-sonable rates. It must Include putting a complete stop to rebates In every shape and form. This power to regulate rates, like all similar powers over the business world, should be exercised with moderation, modera-tion, caution, and self-restraint; but it should exist, so that It can be effectively exercised when the need arises. The first consideration to be kept In mind is that the power should be affirmative affirma-tive and should be given to some administrative admin-istrative body (Created by Congress. IT given to the present Interstate Commerce commission or to a reorganised Interstate Commerce commission, such commission should be made unequivocally administrative. administra-tive. I do not believe In the Government Interfering with private business more than Is necessary. I d not believe In the Government undertaking any work which with propriety can be left In private pri-vate hands. But neither do I believe be-lieve in the Government flinching from overseeing any work when it becomes evident that abuses are sure to obtain therein unless there la governmental supervision. su-pervision. ' ' It Is not my province to Indicate the exact terms of the law which should be enacted; but I call the attention of Congress Con-gress to certain existing conditions with which It is desirable to deal. In my judg- the way, I do not for a moment admit that these difficulties warrant us In stopping stop-ping In our efforts to secure a wise and juit system. They should have no other effect than to spur us on to the exercise of the resolution, the even-handed Justice, and the fertility of resource, which we like to think of as typically American, and which will In the end achieve good results In this as in other fields of activity. activ-ity. The task Is a great one and underlies under-lies the task of dealing with the whole Industrial problem. But the fact that it la a great problem does not warrant us In shrinking from the attempt to solve it. At present we face such utter lack of supervision, such freedom from-the restraints re-straints of law, that excellent men have been literally forced into doing what they deplored , because otherwise they were left at the mercy of unscrupulous competitors. To rail at and assail the men who have done as they best could under such conditions accomplishes little. lit-tle. What we need to do is to develop an orderly system; snd such a system can only come through the gradually Increased In-creased exercise of the right of efficient Government control. BLOCK SIGNALS AS PROTECTION TO LITE In my annual message to the Fifty-eighth Fifty-eighth Congress, at lt third session. 1 called attention to the necessity for legislation leg-islation requiring the use of block signals sig-nals upon railroads engaged In Interstate commerce. The number of serious collisions col-lisions upon unblocked roads that have occurred within the past year adds force to the recommendation then made. The Congress should provide, by appropriate legislation, for the introduction of block signals upon all railroads engaged in interstate in-terstate commerce at the earliest practicable prac-ticable date, as a measure of increased safety to the traveling public. Through decisions of the Supreme Court of the United States and the lower Federal Fed-eral courts in cases brought before them for adjudication the safety-appliance law -has been materially strengthened, and the Government has been enabled to secure its effective enforcement In almost all -cases, with the result that the condition of railroad equipment throughout the country Is much Improved and railroad employees perform their duties under safer conditions than heretofore. The Government's most effective aid In arriving at this result has been its Inspection In-spection service, and that these improved conditions are not more general Is due to the Insufficient number of Inspectors employed. em-ployed. The inspection service has fully demonstrated Its usefulness, and In appropriating ap-propriating for Its maintenance the Congress Con-gress should make provision for an increase in-crease In the number of Inspectors. : r.nentlv beneficial character can oe mv?n to the less able and less fortunate, ' - fcave as the results of a policy which shall Inure to the advantage of all industrious and efficient people who act : decently; and this is only another way of saying that any benefit which comes to the less able and less fortunate . must of necessity neces-sity come even more to the more able and more fortunate, i i ' ' I If. therefore, the less fortunate man Is i moved by envy of his more fortunate ' brother to strike at the conditions under which they have both, though unequally, prospered, the result ; will assuredly . be that while damage may come to the one struck at, it will visit with an even - heavier load the one who strikes the blow. Taken as a whole we must all go up or go down together. ( CORPORATE INFLUENCES MUST BE KEPT, IN CHECK Tet. while not merely admitting, but insisting upon this. It is also true that where there Is no governmental restraint " or supervision some of the exceptional - men use their energies not In ways that ' ' r are for the common good, but in ways which tell against this common good. . The fortunes amassed through corporate) organization are now so large, and vest -i, . such power in those that wield them, as sto make It a matter of necessity to give to the sovereign that is, to the Government, Govern-ment, which represents the people as a whole some effective power of supervision super-vision over their corporate use. In order to Insure a healthy social and industrial life, every big corporation should be held responsible by, and be V tccountable to. some sovereign strong enoug . to control Its conduct. I am In no sense hostile to corporations. This Is an age of combination, and any effort to prevent all combination will be not only useless, but In the end vicious, because of the contempt for law which the failure to enforce law Inevitably produces. We should, moreover, recognise In cordial and ample fashion the Immense good af-' af-' . fected by corporate agencies In a coun- try such as ours, and the wealth of Intellect, In-tellect, energy and fidelity devoted , to their service- and therefore normally to the service f the public, by their officers of-ficers and directors.. The corporation has " . cfctne to stay. Just as the trade union has ' eJome to stay. Each can do and has done ' fereat good. - Each should be favored so long as It does good. But each should be . ., J harply checked where It acts against T Jiaw and Justice. S So long as the finances of the Nation Bare kept upon an honest basis no other question of Internsl economy with which , te Congress has the power to deal be-J be-J gins to approach In Importance the mat-F. mat-F. ter of endeavoring to secure proper ln- custrial conditions under which the in-J in-J divlduals and especially the great car- porations doing an interstate business are to act. The makers of our National Constitution provided especially that tne regulation of interstate commerce should come within the sphere of the general - Government. The arguments in favor of their taking this stand were even . then overwhelming. But they are far . stronger today. In view of the enormous development of great business agencies, usually corporate in form. GOVERNMENT CONTROL ' , BECOMES IMPERATIVE . Experience has shown conclusively that it Is useless to try to get any side- quate regulation and supervision of these great corporations by State action. Such . regulation and supervision can only be effectively exercised by a sovereign whose Jurisdiction Is coextensive with the ' - field of work of the -corporations that is. by th National Government. I believe that this regulation and supervision can -1- be obtained by the enactment of law by the Congress. U this proves Impossible, it will certainly.be necessary ultimately to confer in fullest form such power upon r the National Government by a proper V amendment of the Constitution. It would "obviously be unwise to endeavor to secure se-cure such an amendment until it is certain cer-tain that the result can not be obtained under the Constitution as it now is. The laws of the Congress, and of the Keveral States hitherto, ss passed noon bv the courts, have resulted more -often in showing that the States have no power in the matter than that the National Na-tional Government has power; so that there at present exists a very unfortunate unfortu-nate condition of things, under which these great corporations doing an Inter-' Inter-' state business occupy the position of sub jects without a sovereign, neither any State government nor the National Government Gov-ernment having effective antral over them. Our steady alm should be by 'legislation. : cautiously and carefully undertaken, but resolutely oerseyered in. to assert the sovereignty of the National " Oovernment by affirmative action. iThis is only in form an innovation. In .instance it is merely a restoration; for .Ann, the earliest time such regulation of HSiistrlal activities has been recognized in e action of the law-making bodies; ' .nd all that I propose is to meet the i ) 7 H.Tnd conditions in such manner as wKrtvent f he Commonwealth abdlcat-i abdlcat-i ' t Ei.1 the ooweVlt has always possessed. ' !?? n?r l this country but also In Eng-- Eng-- K J'nVbfore and since -thl. country be- ' ; ; should be enacted In a spirit as remote as possible from hysteria and rancor. If we of the American body politic are true to the traditions we have Inherited, we shall always scorn any effort to make us hate any man because he is rich. Just as. much as we should scorn any effort to make us look down upon or treat contemptuously contemptu-ously any man because he is poor. We Judge a man bv his conduct that Is, by his character and not bv his wealth or Intellect. If he makes his fortune honestly, hon-estly, there Is no Just cause of quarrel with him. Indeed, we have nothing but the kindliest feelings of admiration for the successful business man who behaves decently, whether he has made his success suc-cess by building or managing a railroad or by shipping goods over that railroad. ARE SIMPLY AMERICANS IN STRUGGLE POR LIFE The big railroad men and big shippers are simply Americans of the ordinary type who have developed to an extraordinary extraor-dinary degree certain great buslns qualities. They are neither better nor worse than their fellow-citizens of smaller smal-ler means. They are merely more able In certain lines and therefore exposed to certain peculiar strong temptations. These temptations have not sprung newly new-ly Into being; the exceptionally successful success-ful among mankind have always been exposed ex-posed to them; but they have grown amazingly In power as a result of the extraordinary ex-traordinary development of Industrialism along the new lines. and under these new conditions, which the law-makers of old could not foresee and therefore could not provide against, they have become so serious and menacing as to demand entirely en-tirely new remedies. It Is In the Interest of the best type of railroad men and the best type of shipper no less than ef the public that ithrre should be Governmental supervision and regulation of these great business operations, for the same reason that it Is In the Interest of the corporation which wishes to treat its employees aright that then should be an effective employers' liability act, or an effective system of factory laws to prevent the sbuse of women wo-men and children. All such legislation frees the corporation that wishes to do well from being driven into doing ill. In order to compete with Its rival, which prefers to do 111. We desire to set up a moral standard. .... There can be no delusion more fatal to the Nation than the delusion that the standard of profits, of business prosperity. prosper-ity. Is sufficient In judging any business or political question from rate legislation legisla-tion to municipal Government. Business success, whether for the individual or for ment the most important provision which such law should contain Is that conferring confer-ring upon some competent administrative body the power to decide, upon the case being brought before it, whether a given rate-prescribed by a railroad Is reasonable reason-able and Just, and If It Is found to be unreasonable and unjust, then, after full investigation of the complaint, to prescribe pre-scribe the limit of rate beyond which it shall not be lawful to go the maximum reasonable rate, ss it Is commonly called this decision to go into effect within a reasonable time and to obtain from i thence onward, subject to review by the courts. It sometl-nes happens at present, not that a rate Is- too high, but that a favored shipper Is given too low a rate. In such case the commission would have the rlgh't to fix this already established minimum rate as the maximum, and it would need only one or two such decisions de-cisions by the commission .to cure railroad rail-road companies of the practice of giving giv-ing improper minimum rates. COMMISSIONS POWERS .. SHOULD BE RESPECTED I call your attention to the fact that my proposal is not to give the commission power to initiate or originate rates generally, gen-erally, but to regulate a rate already fixed or originated by the roads, upon complaint and after investigation. A heavy ' penalty should be exacted from any corporation which fails . to respect an order of the commission. I regard this power to establish a maximum rate as being essential to any scheme of real re-form re-form in the matter of railway regulation. regula-tion. The first necessity Is to secure It; and unless It is granted to the commission commis-sion there Is little use in touching the subject at all. Illegal transactions often occur under the forms of law. It has often occurred that a shipper has been told by a traffic officer to buy a large quantity of some commodity and then after It has been bought an open reduction is made In the rate to take effect immediately, the arrangement ar-rangement resulting to the profit of the one shipper and the one railroad and to the damage of all their competitors; for It must not be forgotten that the big shippers are at least as much to blame as any railroad in the matter of rebates. The law should make it clear so that nobody can fall to understand that any kind of commission paid on freight shipments, ship-ments, whether In this form or In the form of fictitious damages, or of a concession, con-cession, a free pass, reduced passenger rate, or payment of brokerage, is illegal. ille-gal. It is worth while considering whether PRESIDENT SPEAKS . FOR RAILROAD MEN The excessive' hours of labor to which railroad employees In train servfee are in many cases subjected to is also a matter which may well engage the serious attention at-tention of the Congress. The strain, both mental and physical, upon those who are engaged In the movement and operation of railroad trains under modern conditions condi-tions is perhaps greater than that which exists In any other industry, snd If there are any reasons for limiting by law the hours of labor In any employment, they certainly apply with peculiar force to the employment of those upon whose vigilance vigi-lance and alertness In the performance of their duties the safety of . all who travel by rail depends. In my annual message to the Fifty-seventh Fifty-seventh Congress, at its second session, I recommended the passage of an employers' employ-ers' liability law for the District of Columbia Co-lumbia and In our navy yards. I renewed re-newed that recommendation In my message mes-sage to the Fifty-eighth Congress, at Its second session, and further suggested the appointment of a commission to make a comprehensive study of employers' employ-ers' liability, with a view to the enact, ment of a wise and constitutional law covering the subject, applicable to all industries in-dustries within the scope of the Federal power. I hope that such a law will be prepared and enacted as speedily as possible. LABOR PROBLEMS AND THE SPIRIT OF CLASS The National Government has as a rule but little occasion to deal with the formidable for-midable group of problems conirWted more or less directly with what is known as the labor question, for In the great majority of cases these problems must be dealt with by the State and municipal authorities and not by the Natlonaf Government. Gov-ernment. The National Government has control of the District of Columbia, however, how-ever, and It should see to It that the city of Waahlngton Is made a model city In all respects, , both as regards psrks public playgrounds, proper regulation ot the system of housing so as to do away with the evils of alley tenements, a proper system of education, a proper system sys-tem of dealing with truancy and Juvenile offenders, a proper handling of the charitable work of the district. Moreover, More-over, there should be proper factory laws to prevent all abuses In the employment of women and children In the district. These will be useful chiefly as object lessons, les-sons, but even this limited amount ot usefulness would bo of real National value. There has been demand for depriving courts of the power to issue Injunctions In labor disputes. Such special limitation limita-tion of the equity powers of our courts would be unwise. It is true that some judges have misused this power; but this, does not Justify a denial of the power any more than an Improper exercise of the power to call a strike by a labot leader would Justify the denial of the right to strike. The remedy Is to regulate regu-late the procedure by requiring the Judge to give due notice to the adverse parties before granting the writ, the hearing to be ex parte if the adverse party does not appear at the time and plare ordered. or-dered. What Is due notice must depend i 1 I upon the facts of the case; it should not be used as a pretext to permit violation of law, or the Jeopadlzing of life or property. prop-erty. Of course, this would not authorize the Issuing of a restraining order or injunction in-junction in anv case in which It is not already authorized by existing law. I renew the recommendation I made in 1 my last annual message for an investigation investi-gation by the Department of Commerce and Labor of general labor conditions, especial attention to be paid to the conditions con-ditions ef child lsbor and child-labor legislation leg-islation in the several States. Such an Investigation should take Into account the various problems with which the question ques-tion of child labor is connected. It is true that these problems can be actually met in most cases only by the States themselves, but It would be well for the Nation to endeavor to secure and publish pub-lish comprehensive Information as to the conditions of the labof of children In the different States, so as to spur up those j that are behindhand, and to secure ap- - j . proximately uniform legislation of a high , 1 . character among the several States. In such a Republic as ours the one 1 thing that we can not afford to neglect . Is the problem of turning out decent citizens. The future of the Nation de- i pends upon the citizenship of the gen- ' ' $ ' ' i , f , erations to come: the children of today are those who tomorrow wi"l shape the ' destiny of our land, and we can not at- i lord to neglect them. The Legislature of Colorado has recommended that the National Na-tional Government provide some general measure for the protection from Vtbuse of children and dumb animals throughout through-out the United States. I lay the matter : before you for what I trust will be your favorable consideration. RACE SUICIDE IS - . A BURNING PROBLEM . ' The Department of Commerce and La-bor La-bor should also mako a thorough lnvts- : tlgatlon of the conditions of women in in- dustry. Over five million American worn-. worn-. en are now engaged In ' gainful occupations; occupa-tions; yet there Is an almost complete ' dearth of data upon which to base any . trustworthy conclusions as regards a sub-: sub-: ject as Important as it Is vast and complicated. com-plicated. There Is need of full knowledge ,on which to base action looking toward . State and municipal legislation for the . protection of working women. The Introduction In-troduction of women Into Industry la i working change and disturbance in the domestic and social life of the Nation. The , decrease in marriage, and especially in the birth rate,- has been coincident with it. We must face accomplished facts, and ! the adjustment to factory conditions must : be made; but surely it can be made with ' . less friction and less harmful effects on family life than is now the case. This . whole matter in reality forms one of the , greatest sociological phenomena of our .time; it is a social question. of the first i importance, or far greater importance , . than any . merely political or economic . question can be; and to solve it we need -( ample data, gathered in a sane and scl- . i entific spirit in the course of an exhaust-' exhaust-' lve investigation. 'PUBLICS SIDE OP STRIKE QUESTION In any great labor disturbance not only ; are employer and employee interested, but '. also a third party the general public. ! Every considerable labor difficulty in which interstate commerce is involved ' should be investigated by the Government : and the facts officially reported to the . public. i ' '. The question of securing a healthy, self- respecting and mutually sympathetic at-' at-' titude as between employer and em-i em-i ployee, capitalist and wage-worker, is a Ufflcult one. All phases ot the .labor prob-; prob-; lem prove difficult when approached. But the underlying principles, the root prln-1 prln-1 ciples. in accordance with which the prob- lem must be solved, are entirely simple. ; We can get justice and right dealing only ' if we put as of paramount importance the ' i principle of treating a man on his worth . ' ; as a niHii rather than with reference to : his social position, his occupation, or the ' claw to which lie belongs. Ti'.ero arc selfish and brutal men in all ' ranks r.i life. 11 they are capitalists their selfishness ami brutality may take the form of hard Indifference to suffering. - ! greedy disregard of every moral restraint , which interferes with the accumulation of wealth, and cold-blooded exploitation of the weak; or. if they are laborers, the ; form of laziness, of sullen envy of the more fortunate, and of willingness to per- "form deeds of murderous violence. Such conduct is just as reprehensible in one t .. of supervision and regulation 1y the parent pa-rent States. In my last annual message I recommended "that the Congress car-fully car-fully consider whether the power of -the Bureau of Corporations can not constitutionally consti-tutionally be extended to cover interstate inter-state transactions in insurance." Recent events have emphasized the importance im-portance of an early and exhaustive consideration con-sideration of this question, to see whether it is not possible to furnish better safeguards safe-guards than the severul States have been able to furnish against corruption of the flagrant kind which ' has been exposed. It has been only too clearly -shown that certain of the men at the head of these large corporations take but small note of the ethical distinction between honesty and dishonesty;-they draw the line only this side of what may. be called law-honesty, law-honesty, the kind of honesty necessary in order to avoid falling into the clutches of the law. Of course the only complete remedy, for this condition must be found In an aroused public conscience, a higher sense of ethical conduct in the community at large, and especially among business men and in the great profession of the , law, and in the growth f a spirit which i condemns all disnonesty, whether in rich men or in poor men, whether it takes the shape of bribery or of blackmail. But much can be done by Ueglslatlon which is not only drastic but practical. There Is need of a far stricter and more uniform regulation of the vast insurance interests of this country. The United States should in this respect follow the policy of other nations by providing adequate ade-quate National supervision of commercial interests which are clearly national in character. My predecessors have repeatedly repeat-edly recognized that the foreign business of these companies is an important part of our foreign commercial relations. During Dur-ing the administrations of Presidents Cleveland, Harrison, and McKinley the State department exercised its influence. ; through diplomatic channels, to prevent unjust discrimination by foreign countries coun-tries against American insurance companies. compa-nies. ' . FEDERAL SUPERVISION" ' MAY BE IMPERATIVE 1 These negotiations illustrated the propriety pro-priety of the Congress recognizing the ( national character of insurance, for in the absence of Federal legislation the State department could -only give expression ex-pression to the wishes of the authorities of the several States, whoso policy as ineffective through want of uniformity. I repeat my previous recommendation ; that the Congress should also consider whether the Federal Government has any power or owes any duty with respect to domestic transactions in insurance of an interstate character. That State supervision super-vision has proved inadequate is generally conceded. The burden upon insurance companies, and thereforev their policyholders, policy-holders, of conflicting regulations of many States, is unquestioned, while but little effective check is imposed upon any able and unscrupulous man who -desires to exploit the company in his own interest at the expense of the policy-holders and of the public. The inability of the State to regulate effective Insurance corporations corpora-tions created under the laws of other States and transacting the larger part of their business elsewhere is also clear. As a remedv for this evil of conflicting, ineffective, and yet burdensome regulations regula-tions there has been for many years a widespread demand, for Federal supervision. super-vision. The Congress has already recognized rec-ognized that interstate insurance may be an element of elasticity in our monetary system. Banks are the natural servants of commerce, and upon themv should be placed, as far as practicable, the burden of furnishing and maintaining a circulation circula-tion adequate to supply the needs of our diversified industries and of our domestic and foreign commetce; and the issue of this should be so regulate J that a sufti-cient sufti-cient supply should be always available for the business interests of the country." m Every consideration of prudence demands de-mands the addition of the element f elasticity to our currency system. The evil does not consist in an Inadequate volume of money, but in the rigidity of this volume, which does not respond as it should to the varying needs of communities com-munities and of seasons. Inflation must be avoided; but some provision should be made that, will insure a larger volume of money during the fall and winter months man in the less active seasons of the year; so that the currency will contract con-tract against speculation, and will expand ex-pand for the needs of legitimate business. At present the Treasury department is at irregularly recurring Intervals obliged, in the Interest of the business world that is, in the Interests of the American publicto pub-licto try to avert financial crises by providing pro-viding a remedy which should be provided pro-vided by Congressional action. MUST HAVE REFORMS IN THE DEPARTMENTS At various times I have Instituted in-i vestigations into the organisation and conduct of the business of the executive departments. While none of tbeaj inquiries in-quiries have yet progressed far enough to warrant final conclusions, they have already al-ready confirmed and emphasized the gen eral impression that the organisation of the departments is often faulty in principle prin-ciple and wasteful in results, while many of their business methods are antiquated and inefficient.- There is every reason why our executive governmental machinery should be at least as well planned, economical, and efficient as the, best machinery of the great business organisations, which at present is not the case. To make it so is a task of complex detail and essentially executive in its Harare; probably no legislative leg-islative body, no matter how wise and able, could undertake it with reasonable prospect of success. I recommend that the Congress consider this subject with a view to provide by legislation leg-islation for the transfer, distribution, consolidation con-solidation and assignment of duties and executive organisations or parts of organizations, or-ganizations, and for the changes in bigness big-ness methods, within or between the several sev-eral departments, that Will best promote the economy, efficiency and .high character char-acter of the Government work. REPEATS MESSAGE ON FEDERAL ELECTION LAW In my last annual message I said: vThe power of the Government to protect pro-tect the integrity of the elections of its own officials is inherent and has been recognized and affirmed by repeated declarations of the Supreme court. There is no enemy of fret government more dangerous -and none so insidious as the corruption of the electorate. No one defends de-fends or excuses corruption, and it would seem to follow that none would onoose vigorous measures to eradicate it. I recommend the enactment of a law directed di-rected against bribery and corruption in war of mere aggression in short, any war begun or carried on in a conscienceless conscience-less spirit. Is to be condemned as a peculiarly pecu-liarly atrocious crime against all humanity. hu-manity. We can, however, do notnlng of permament value for peace unless we keep ever clearly in mind the ethical element ele-ment which ilea at the root of the problem. prob-lem. Our aim is righteousness. Peace Ja normally the handmaiden of righteousness; righteous-ness; but when peace and righteousness conflict then a great and upright people can never for a moment hesitate to follow the path which leads toward righteousness, even though that path alKO leads to war. , There are persons who advocate peace at any price; there are others who, following fol-lowing a false analogy, think that because be-cause It Is no longer necessary in. civilised civil-ised countries for Individuals to protect their rights with a strong hand, it is therefore unnecessary for nations to be ready to defend their rights. These persons per-sons would do irreparable harm to any nation that adopted their principles, and even as it is they seriously hamper the cause which they advocate by tending tq render it absurd In the eyes of sensible and patriotic men. There can be no worse foe of mankind in general, and of his own country in particular, than the demagogue of war, the man who in mere folly or to serve his own selfish ends continually rails st and abuses other nations, who seeks to excite ex-cite his countrymen against foreigners on insufficient pretexts, who excites and Inflame In-flame a perverse and aggressive national vanity, and who may on occasions wantonly wan-tonly bring on conflict between his nation and some other nation. But there are demagogues of peace Just as there are demagogues of war, and in any such movement as this for The Hague conference it is essential not to be misled by one set of extremists any more than by the other. Whenever It is possible for a nation or an Individual to work for real peace, assuredly It Is failure fail-ure of duty not so to strive; but if war Is necessary and righteous then either the man or the nation shrinking from It forfeits all title to self-respect. We have scant sympathy with the sentimentalist who dreads oppression less than physical suffering, who would prefer a shameful peace to the pain and toil sometimes lamentably lam-entably necessary in order to secure a righteous peace. As yet there Is only a partial and, imperfect im-perfect analogy between international law and Internal or municipal law, because be-cause there is no sanction of force for executing the former while there is in the latter. The private citizen is protected In his rights by the law, because the law reta in the last resort upon force exercised exer-cised through the forms of law. A man does not have to defend his rights with his own hand, because he can call upon the police, upon the Sheriff's posse, upon the militia, or in certain, extreme cases upon the army, to defend him. But there l no such sanction of force for international interna-tional law. DISARMAMENT NOW WOULD BE CALAMITY At present there could b no greater calamity than for the free peoples', the enlightened Independent, and peace-loving peoples, to disarm while yet leaving It ojen to any barbarism or despotism to remain armed. So long as the world is as unorganised as now, the armies and navies of those peoples who on the whole stand for Justice, offer not only the best, but the only possible, security for a just States, great or small, on a basis of high honor, -respecting their rights as Jl ugly as it safeguards Its own., MONROE D0CTRINJ3 AS ROOSEVELT SEES IT One -of the most effective Instrument for peace Is the Monro doctrine as it has been and is being gradually developed by this Nation and accepted by ether nations. na-tions. No other policy could have been as efficient lri promoting peace in the Western West-ern hemisphere and In giving to each nation na-tion thereon the chance to develop along Its own lines. If we had refused to apply the doctrine to changing conditions It would now be completely eutwofn, would not meet any of the needs of the present day, and Indeed would probably by this time have sunk into complete oblivion. It Is useful at home, and is meeting with recognition abroad because we . nave, adapted our application of It to meet the ' growing and changing needs of the hem-isohere. hem-isohere. When we announce a policy, such as the Monroe doctrine, we thereby commit ourselves our-selves to the consequences of the policy, and those consequences from time to time alter. It !a out of the question to claim a right and yet shirk the responsibility for its exercise. Not only we, but all American republics who are benefited by the existence of the doctrine, must recognize recog-nize the obligations each nation is under as regards foreign peoples no less than its duty to insist upon Its own rights. That our rights and interests' are deeply concerned in the maintenance of the doo-trine doo-trine is so clear as hardly to need argument. argu-ment. This is especially true in view of the construction of the Panama canal. As a mere matter ofself-defens w must exercise a close watch over the approaches ap-proaches to this canal; and, this jneans that we must be thoroughly alive to our interests In.the Caribbean sea. There are certain essential points which must never be forgotten ss regards the Monro doctrine. In the first place we must as a nation make it evident that we do not intend to treat it In any shape or way as aft excuse for aggrandizement on our part at the expense of the republics to the south. We must recognise the fact that in some South American countries there has been much suspicion lest w . should Interpret the Monroe doctrine as in some way inimical to their interests, and we must try to convince all the other "nations of this continent once and for all that no Just and orderly government has anything to fear from us. - There are certain republics to the soutn of us which have already reached such a point of stability, order, and prosperity that they themselves, though as yet hard-iv hard-iv consciously, are among the guarantors of this doctrine. These republics we now meet not only on a basis of entire equality, equal-ity, but in a spirit of frank and respectful friendship, which we hope la mutual. If .ll of the republics to the south of us will i-nly grow as those to which I allude hav already grown, all need for us to be the ernecial champions of the doctrine will disappear, for no stable and growing American republic wlshea to see ome great non-American military power acquire ac-quire territory in Us n'phborhood. All that this country desires Is thst th other republics on this continent shall be 'happy and prosperous; and they can not be happy hap-py and prosperous unless they maintain o?der within their J?,h,5Y with a Just regard for their obligations toward outsider. NO WRONG CONCEPTION - Imminent danger ef foreign Intervention. Th previous - rulers of ianto Domingo had recklessly Incurred debts, and owing to her Internal disorders sbe had ceaaed to be able to provide means of paying the debts. The patience of her foreign creditors cred-itors had become exhausted, and at least two foreign nations were on the point of intervention, and were only prevented from intervening by the unofficial assurance assur-ance of this Government that It would Itself It-self strive to help Santo Doming in her hour of need. In the case of one of these nations, only th actual opening of negotiations to this end by our Government' prevented the seizure of territory in Santo Domingo by a European power. Of the debt incurred in-curred soma were Just, while some were not of a character which really renders it obligatory on. or proper for. Santo Domingo Do-mingo to pay them in full. But she could not pay any of them unless some stability was assured her Government and people. Accordingly the executive department of our Government negotiated a treaty tinder which we are to try to help the Dominican people to straighten out their finances. This treaty is pending before the Senate. In the meantime a temporary arrangement has been made which will last until the Senate has had time to take action upon the treaty. Under this arrangement ar-rangement the Dominican Government has appointed Americans to all the Important positions in the customs service, and they ' are seeing to the honest collection of the revenues, turning over 45 per cent to the Government for running expenses and putting the other 65 per cent into a safe depositary for equitable division In case the treaty shall be ratified, among the various creditors, whether European or American. terially diminished and th pests that are left made correspondingly largwr. K local interests should be allowed to stand in the way ef assembling the greater part ' of the troops which would a: peed form' our field armies in stations of such sise as will permit th best tralr.lne; to be given to the personnel of all grades, in- eluding the high officers and sta officers. offi-cers. To. accomplish this end w' must have not company or regimental gsrri-; sons, but brigade and division garrisons. Promotion by mere seniority can never v result In a thoroughly efficient corn of -officers in the higher ranks. un'.ixs there-accompanies there-accompanies it a vigorous weedlng-out : process. Such a weedlng-out process that Is. such a process of selection m chief fes- ture of the four years' course ef the , oung officer st West Point. There Is no ; ( good reason why it shou! J stop imrne-; 1 diately upon his graduation. While t -jV West Point he is dropped umesi he comes J, J up to a certain standatd of excellenrtty and when he graduates he take rankyin 1 . the army according u his Muk. f grail- Vation. The result ni u-d nt V'rst Point; and there should -fc In th army Itself something that will, achieve th same end. After a certain age has beeiy reached the average officer J unfit to d 'good work below a certain grade. Pi" vision should be made for the proW"-"" of exceptionally meritorious m,eB over to heads of their comrades and for the T-f tlrement of all men who hav reached a . given age without getting beyond a given rank; this sge of retirement of course changing from rank to rank. In both . the army and the navy there should be some principle of selection, that is of promotion-for merit, and there should be a resolute effort to eliminate, the aged of- ' I fleers of reputable character who pos-sess pos-sess no special efficiency. . - pence, rur wsianrc, ii ins uiuit-u oiait alone, or In company only with the other nations that on the whole tend to act justly, dlaarmed, we might sometimes avoid bloodshed, but we would ceas to be of weight In securing th peace of Justicethe Jus-ticethe real peace for which the most law-abiding and high-minded men must at times be willing to fight. As the world is now. only that nation is equipped for peace that knows how to fight and that will not shrink from fighting fight-ing if ever the conditions become such that war is demanded in the name of the highest morality. So much it is emphatically necessary to say In order both that the position of the United States may not be misunderstood, and that a genuine effort to bring nearer the day of the peace of Justice among the nations may not be hampered by a folly which. In striving to achieve the Impossible, Impos-sible, would render It hopeless to attempt the achievement of the practical. - But while recognizing most clearly all above aet forth. It remain our clear dnty to atrive in every practicable way to bring nearer the time when the sword she'l not be the arbiter among nations. At present the practical thing to do Is to try to minimise the number of rases In which it must be the arbiter, and to offer, of-fer, at least to all civilized powers, some substitute fur war which will be available in at least a considerable number of instances. in-stances. Very much can be done through another Hague conference In this direction, and I most earnestly urge that this Nation do all in Its power to try to further the irovement and to make the result of the decisions of 'fhe. Hague conference effective. effec-tive. I earnestly hope that the conference confer-ence mav be able to devise some way to make arbitration between nations the customary cus-tomary way of settling International disputes dis-putes in all save a few classes of cases, which should themselves be as sharply defined and rigidly- limited as the present governmental and social development of tbe world will permit. If possible. -there should be a general arbitration treaty negotiated among all the nations represented at the conference. Neutral rights and property should be protected at eea as they are protected on land. There, should be an, international agreement to this purpose and a similar agreement defining contraband of war. MUST B aWJSifcAxix.ir It must be understood that under ho circumstances cir-cumstances 4111 the United States us the Monroe doctrine at a cloak for territorial terri-torial aggression. W deslr peace with an the "or". . but PVVWrnerlcan with the other peoples of the American continent There are of cours limits to Jrwrongs which, any self-respecting na-tton na-tton can "endure. IM PJ-rtW. that wrong actions toward this "Nation. ! er towYrf cithVens ot this Nation, in some Stat. Enable to ke.pVder mwfljj 9 DeoDle. unable to secure Justice from out-?iders. out-?iders. and unwilling to do Justice to those outsiders who treat U well, may result re-sult in our having to take action tp protect pro-tect our rlhts; but such action will not taken with lewto territorial ag-gslon0 ag-gslon0 anl it will be" taken; at ai only ?ith extreme reluctance and when it na videU that every other reaourc b'M"or1over:hwaeU8m!f.t make It evident : ttat we do not intend to permit th Monro the south of us commit a tort against . lave to see that the punishment does not KiSn o the form tetrttorlal occupation occupa-tion in any ahape. Th case Is more difficult dif-ficult when It refers to a contractual obll-Mtlon obll-Mtlon Our own Government ha. always fafused to enforce such contractual ob-Ugations ob-Ugations on behalf of Its citizens bj - an inii. i in rrai It is much to be wished all foreign Governments would take h? same view. But they do not; and In cons'equeVe'we liable at .by time to be brought face to face with disagreeable OnTheone hand. thisV country would cenainly- decUne togo to war to prevent a foreign Government from co lectlng a Inst debt- on the other hand. It la very Inadvlsab e to permit any foreign power to Uk possesion, even' temporarily, of the custim-houses of an American re-iubllc re-iubllc In order to enforce the payment of Rs obligations: for such temporary occu-nltlon occu-nltlon might Urn Into a permanent oc- case as m me otner, ana an nonesi anu farseeing .men should Join in warring . against it wherever It becomes manifest. ' Individual capitalist and Individual wage- 1 worker, corporation and union, are alike . entitled to he protection of the law, and ' must alike obey the law. Moreover, in addition to mere obedience . to the law. each msn. if he be really a ' good citizen, must Bhow broad sympathy tor his neighbor and genuine desire to ' look at any question arising between them , from the standpoint of that neighbor no ' less than from his own; and to this end - it i" essentia! that- capitalist and wage-worker wage-worker should consult freely one with ; the other, should each strive to bring . closer the day when both shall realize . thst they are properly partners and not "'enemies: To approach the questions which inevitably arise between them solely from the standpoint which treats each side In the mass as the enemy of f-- fther side In the mass is both wlckc-l nd froli5h. In' the past the most dirrfu: among the influences which have brought about the downfall of republics baa ever been the growth of the class spbit. the growth of the spirit which tends to make a man subordinate the. welfare of the public as a whole to the welfare of the particular ' class to which he belongs, the substitution of loyalty to a class for loyalty to the Na-j lion. This inevitably brings abut a ten- ; dency to treat each man not on his merits ns an Individual, but on his position as ' belonging to a certain class in the com- I mu.iity. GOOD CITIZENSHIP ' . HOPE OF THE NATION If such a spirit grows up In this lie-. public It will ultimately prove fatal to us. aa in the past It has proved fatal to . evei v community in which it has become dominant. ' Unless we continue to keen ; a quick and lively sense of the great fundamental truth that our concern ta i with the individual worth of the lndl-' lndl-' vidua! man, this Government can not : 'permanently hold the plaCb which it has - achieved among the nations. The vital I lines of cleavage among our people- do ! not correspond, and indeed run at right angles to, th lines of cleavage which ' ; divide occupation frosa occupation, which N :ivide wage-workers from capitalists, ! ' farmers from bankers, men of small means from men of large means, men ' who livo In the towns from men who ; live In the cour.try; for the vital line of cleavage Is the line which divides the I honest man who tries to do well by his neighbor from the dishonest man. who docs ill by his neighbor. In other words, the standard we should establish is the ' standard of conduct, not the standard ot I ccupatlon. of means, or of social posl- It is the man's moral quality, his attitude atti-tude toward the great questions which concern all humanity, his cleanliness of ' life, his power to do h!s duty toward hlm-! hlm-! self and toward others, which really . . count; and if we substitute for the stand- ard of personal Judgment which treats ' esch man according to his merits, an-' an-' thcr standard in accordance with which ' gll men of one class are favored and all men of anoih'-r class discriminated t -against, we shall do irreparable damage to the bodv wolitic I believe that our people are too sane, too self-respecting, too fit for self-government, ever to adopt such an attitude. This Government is not and never shall be government by a plutocracy. This . '. Government is not and never shall be government by a mob. It shall continue to be in the future what it has been in the post, a government based on the theory that each man, rich or poor, is to be treated simply and solely on his worth as a, man, that all his personal and property rights are to be safe-g'larded, safe-g'larded, and that he Is neither to wrong ethers nor to suffer wrong from others. Tho noblest of all form of government govern-ment is self -government; but it is also the most difficult; We who possess this nricelcss boon, and who desir to hand it on to our children and our children's children, should ever bear in mind the 1 oiieht so finely expressed by Burke: Men aro qualified for civil . liberty ' in exact proportion to. their dls-' dls-' nosltlon to put moral chains upon their own appetites: in proportion as they are ' dUDOsed to listen to the counsels of the ' I wlsV and good In preference to the flat-Tery flat-Tery of knaves. Society can not exist v ' unless a controlling power upon will and -UnVtlte be placed somewhere, and the i fbf it there be within the more there must b without It Is ordained in the Sernal constitution of thing that men Vt intemperate g" L0te-' 'Their passions forge their fetters. SAFEGUARDS NEEDED . . IN INSURANCE FIELD x ' The great Insurance companies afford ' striking examples of corporations whose . Husines5 ha. - ffSaS . ifleiM0?o1rKurttHcr enforcement a proper subject for Federal legislation, for in creating the Bureau of Corporations Corpora-tions it authorized it to publish and supply sup-ply useful information concerning interstate inter-state corporations, "including corporations corpora-tions engaged in insurance." It is obvious that if the compilation of statistics be the limit of the Federal power, it la wholly ineffective to regulate this form of commercial intercourse between the States, and as the insurance business has outgrown in magnitude the possibility of adequate State supervision, the Congress Con-gress should carefully consider whether further legislation can be had. What Is said above applies with equal force to fraternal and benevolent organizations which contract for life insurance. REFORM IS NEEDED IN REVENUE SYSTEM There is more need of stability than of the attempt to attain an ideal perfection in the methods of raising revenue; and the shock and strain to the business world certain to attend any .serious change in these methods render uch change Inadvisable unless for grave reason. rea-son. It Is not possible to lay down any general rule by which to determine the moment when the reasons for will out-weight out-weight the reasons against such a change.. Much must depend, not merely on the needs, but on the deslrejt, of the people as a whole; for needs and desires are not necessarily Identical. Of course no change can be made on lines beneficial to, or desired by, one section sec-tion or one State only. There must be something like a general agreement among the citisens of the several States', as represented in Congress, that the change Is needed and desired in the interest in-terest of the people as a whole: and there ahould then be a sincere, intelligent, and disinterested effort to make it in such shape as will combine, so far as possible, the maximum of good to the people at large with the minimum of necessary disregard for the special Interests In-terests of localities or classes. But in tlm of peace the revenue must on the average, taking a eries of years together, to-gether, equal the expenditures or else the revenues must be increased. Last year there was a deficit. T mess our expenditures can be kept within the revenues then our revenue laws must be readjusted. It is as yet too early to attempt at-tempt to outline what shape Buch a readjustment re-adjustment should take, for It i as yet too early to aay whether there wi 1 be need for It. It should be considered whether it is not desirable that the tariff laws should provide for applying as against or in favor of any other Nation maximum and minimum tariff rates established es-tablished by the Congress, so as to secure se-cure a certain reciprocity of treatment between our Nation and ourselves. Having in view even larger considerations considera-tions of policy than those, of a purely economic nature, it would In my Judgment, Judg-ment, be well to endeavor to bring about closer commercial connections with the other peoples of this continent. I am happy to be able to announce to you that Russia now treats us on the most-fa-vored-natlon basis. I earnestly recommend to the Conejess the need of economy and to this end pf a rigid scrutiny of appropriations. A example merely. I call your attention to one of two specific natters. , All unntc-sarv unntc-sarv offices should b abo Ished The Commissioner of the General Land Office recommends the abolishment of the office of Receiver of Public Monej for United States land offices. This will effect a saving of about a quarter of a. million doUars a year. As the business of the Nation grows it is Inevitable that there lhou?d be f?om time to time a legitimate inreaso In the number of officials, and thisfast renders it all the more import-nnt import-nnt that when offices become unnecessary they ehould be abolished. : In i the public printing also a large sa-ing sa-ing of public money can be made. There is a constantly growing tendency to publish pub-lish masses of unimportant Informational Information-al Is probably not unfair to say that many tens of thousands of volumes are published at which no human being ever looks and for which there is no real demand de-mand whatever. . . Tet. Inspeaklng of economy. I must In no wise be understood as advocating the false economy whloh Is in the end the worst extravagance. To cut down on the Navy, for instance, would be a crime i against the Nation. To fall to push for- : ward all work on the Panama canal would be as great a folly. ' ' ELASTIC CURRENCY j NEEDED IN BUSINESS In my message of December 2, 1902, to the Congress I said: , 'Interest rates are a potent factor In business activity, and In order that these rate may be equalised to meet the varying vary-ing needs of the seasons and of widely separated communities, and to prevent the recurrence of financial stringencies which injuriously affect legitimate busl- j ness, It is necessary that there should be i - v law may be safelv left to the wise discretion dis-cretion of the Congress, but it should go as far as, under tbe Constitution it is possible to go, and should include severe penalties against him who gives or receives re-ceives a bribe intended to influence his act or opinion as an electpr; and provisions pro-visions for the publication not only of the expenditures for nominations and elections of all candidates but also of all contributions received and expenditures made by political committees." I defire to repeat this recommendation. In political campaigns in a country as large and populous as ours it is Inevitable Inevit-able that there should be much expense of an entirely legitimate kind. This, of course means that many contributions, and some of them of large size, must be made, and. as a matter of fact, in any big political contest such contributions are always made to both. sides. It Is entirely proper both to give and receive them, unless there is an improper motive connected with cither gift or reception. If they ere extorted by any kind of pressure pres-sure or promise, express or implied, direct di-rect or Indirect, in the way of favor or immunity; then the giving or receiving becomea not only improper but criminal. It will undoubtedly be difficult as a matter of practical detail to shape an act which shall guard with reasonable certainty against such misconduct: but If It is possible to secure by law the full and cerifled publication in detail of all the sums contributed to and expended by the candidates or committees of .any political partiea the result can not but be wholesome. All contributions by corporations to any political committee or for any political purpose should be forbidden -by law; directors di-rectors should not be permitted to use stockholders' money for such purposes; and moreover, a prohibition of this kind would be. as far as It went, an effective method f stopping the evils aimed at n corrupt practices acts. Not only should both the National and the several State legislatures forbid any officer of a, corporation from using the money of the corporation In or about any election, but thev should also forbid such use of money m connection with any legislation save bv the emplovment of counsel In public manner for distinctly legal services. PEACE CONFERENCE PLANS OUTLINED The first conference of nations held at Tho Hague In 1899. being unabl to dispose dis-pose of all the business before it. recommended recom-mended the consideration and settlement of a number of important questions by another conference to be called 'subsequently 'subse-quently and at an early date. These questions were the following: O) The rights and duties of neutrals; U) the limitation limi-tation of tho armed forces on land and sa and of military budgets; (3) the use of new types and calibers of military, and naval guns; (4) the Inviolability of private property at sea in times of war; 5) the bombardment of ports, cities, and villages vil-lages by naval forces. In October, 1904 at the instance of the Interparliamentary In-terparliamentary union, which, at a conference con-ference held in the United States and attended at-tended by the lawmakers of fifteen different dif-ferent nations, had reiterated the demand for a second conference of nations, I issued is-sued Invitations to all the powers signatory signa-tory to The Hague convention to send delegates to such a conference and suggested sug-gested that it be again held at The Hague. In Its note of December 16, 1904. the United States Government communicated communi-cated to the representatives of foreign governments its belief that the conference confer-ence could be best arranged under the provisions of the present Hague treaty. From all the powers acceptance was received re-ceived coupled in some cases with the condition that we should wait until the end of the war then waging between Russia Rus-sia and Japan. The Emperor of Russia, immediately afUr the treaty of peace which so happily terminated this war, in a note presented to the President on September Sep-tember 13, through Embassador Rosen, took the Initiative in recommending that the conference be now called. The United States Government in response expressed Its cordial acquiescence and stated that It would as a matter of course, take part In the new conference and endeavor to further its aims. We assume that all civilized governments will support the movement, and that the conference Is now an assured fact. This Government will do everything in its power to Secure the success of the conference to the end that substantial progress may be made In th cause of international peace. Justice, Jus-tice, and good will. f NO WAR OF AGGRESSION ' WILL BE TOLERATED This renders It proper at this time to say something as to the general attitude of this Government toward peace. More and more war is coming to be looked upon up-on as In Itself a lamentable and eyll thing. A wanton or useless war, or a ADMINISTER CUSTOMS WITH JUSTICE TO ALL Th custom-houat offer vwll-nlgh. the only source of revenue In Santo Domingo, Domin-go, and the different revolution usually' hav a their real tiro tbe obtaining possession pos-session of these custom-houses. The mere fact that the collectors of customs are Americans, that they are performing their duties with efficiency and honesty, and that the treaty 1 pending In the Senate, gives a certain moral power to the Government- of Santo Domingo which it has not had before. This has completely discouraged dis-couraged all revolutionary movement, while It has already produced such an Increase In-crease in the revenue that the Government Govern-ment is actually getting more from the io per cent that the American collectors turn over to It than It got formerly when it took the entire revenue. It is enabling th poor harassed people of Santo Domingo Do-mingo one more tq turn their attention to industry and to be free from the eurs of interminable revolutionary disturbance. disturb-ance. It offer to all bona fide creditors, American and European, the only really good chance to obtain that to which they are Justly entitled, while it In return gives to Santo Domingo the only opportunity of defense against claim which it ought not to pay, for now If it meets the viewa of the Senate we shall ourselves thoroughly examine all these claims, whether American Ameri-can or foreign, and sea that none that are lnTprooer je paid. . . There Is, of course, opposition to the treaty from dishonest creditors, foreign and American, and from the professional revolutionists of th island Itself. We have already reason to believe that some of th creditors who do not dare expose their claims to honest scrutiny are endeavoring en-deavoring to stir up sedition in th island and opposition to th treaty. In the meantime I hav exercised th authority vested in my by the Joint resolution of the Congress to prevent the Introduction of arms Into the Island for revolutionary purposes. Under th course taken, stability and order and all the benefits of peace are at last coming ta Santo Domingo, danger of foreign Intervention has been suspended, and there is at last a prospect that all creditors will get justice, no more and no less. If the arrangement is terminated by tbe failure of the treaty chaos will follow; fol-low; and If chaos follows, sooner or later this Government may be Involved In serious seri-ous difficulties with foreign governments over the island, or else may be forced Itcflf to intervene in the island in some unpleasant fashion. . , . Under the proposed treaty the independence independ-ence of the Island is scrupulously respected respect-ed the danger of violation of the Monroe doctrine by the Intervention of foreign pewers vanishes, and the interference of our Government Is minimised, so that we shall only act In conjunction with the Santo Domingo authorities to secure the I roper edmtnlatratlon of the customs, and therefore to secure the payment of just debts and to secure the Dominican Government against demands for unjust debts The proposed method will give the people of Santo Domingo the samechance to move onward and upward which we have already given to the people of Cuba. It will be doubly to our discredit as a nation if we fall to take advantage of this chance: for It will be of damage to ourselves, our-selves, aud it will be of Incalculable damage dam-age to Santo Domingo. Every consideration considera-tion of wise policy, and, above all. every consideration of large generosity, bids us meet the request of Santo Domingo as we are now trying to meet It. GREATER NAVY ONE OF IMPERATIVE NEEDS We cannot consider the question of our foreign policy without at the same time trtatlng of the army and the navy. .c now have a very small army Indeed, one well-nigh infinitesimal when compared with the army of any other large nation. Of course the army we do have should be as nearly perfect of Its kind and for Us slse ss is possible. I do not believe that any army In the world has a better average aver-age of enlisted ma,n or a better type of Junior officer; but the army ahould be trained to act effectively in . mass. Provision should be made by sufficient appropriations for maneuver of a practical prac-tical kind o that the troops may learn how to take care ef themselves under actual ac-tual service conditions; every march, for Instance, being made with th soldier loaded exactly as he would be-In an active ac-tive campaign. The Generals and Colonels Colo-nels would thereby have opportunity of handling regiments, brigadea and divisions, divis-ions, and the commissary and medlcsl departments would be tested In the field. Provision should be 'made for the exer-clae exer-clae at least of a brigade and by preference prefer-ence of a division in marching and embarking em-barking at om point on our coat ami disembarking at mow other point and continuing its march. ' ,' . Th uniber of posts in which the army is kept In tim of peace should be nia- a COAST DEFENSES ARE OF MUCH IMPORTANCE . i - . ' There should be an increase in the coast artillery force, so that our coast fortifi- cations can be In some degree adequately . manned- There i special need for an increase in-crease and reorganization of the medieal . department of the army. In both' the army and navy there must be the same . thorough training for duty in th staff corps as in tbe fighting line. Only by ; such training in advance can we be sure that In actual war field operations and those st sea will be carried on suceess- . fully. Th Importance of this was shown . conclusively In the Spanish-American and , the Rueso-Japanes wars. Th work -of th medical departments In the Japanese army and navy is especially worthy of study. i " I renew my recommendation of January Janu-ary 9, 1905. as to the medical department of the army and call attention to the -equal 'importance of the needs of the staff corps of the navy. In the medical department de-partment of th navy the first in im- -portance is the reorganisation of the hos- j pital corps, on the lines of the Gallinger bill (8. 39M. February 1. 19u4). and the reapportionment re-apportionment of the different grades of the medical officers to meet service requirements. re-quirements. It seems advisable also that medical officers of the army and navy should have similar rank and pay In their respective ' grades, so that their duties can b carried car-ried on without friction when they are brought together. The base hospitals of the navy should.be put in condition to meet modern - requirements and hospital ships be provided. Unless we pow provide pro-vide with ample forethought for the medical needs of th army and navy appalling ap-palling suffering of a preventable kiniiYI" sure to occur If ever the country goes war. It la not reasonable to expect sui-cessful sui-cessful administration in time of war of H department which lacks a third of th numbers of officers necessary to perforfli the medical servic in tim of peace.. VJb v need men who are not merely doctoimX they must be trained in the adminlsttfc- tion of military medical service. Our navy must, relatively to the navies ' of other nations, always be of greater I sise than our army. We hav most wise- I ly continued for a number of ytars to build up our navy, and it has now reached a fairly high standard of efficiency. effi-ciency. This standard of efficiency must not only be maintained, but Increased. It doea not seem to me necessary, however, that the navy should at least in th Immediate Im-mediate future be Increased beyond the present number of units. What is now clearly necessary is to substitute efficient for inefficient units as the latter become worn-out or as it becomes apparent that they are useleas. Probably the result would be attained by adding a single battleship bat-tleship to our navy each year, the superseded super-seded or outworn vessels being laid up or broken up as they are thus replaced. The four single-turret, monitors built Immediately Immedi-ately after the close of the Spanish war. for instance, are vessels which would be of but little use in the event of war.. The money spent upon them could have been more usefully spent in other ways. Thus it would have been far better never to have built a single one of these monitors and to have put the money into an ample supply of reserve guns. Most of the smaller cruisers and gunboats, gun-boats, though they serve a useful purpose so far ss they are needed for Interna- . tional police work.- would not add to the strength of our navy in a conflict with a , serious foe. There is urgent need of pro-- 'j vlding a large increase In the number of V officers, and especially in th number of enlisted men. Recent naval history has emphasized certain lessons which ought not to, but ". which do. need emphasis. Seagoing torpedo tor-pedo boats or destroyers are Indispensa- . . ble. not only for making night attacks by surprise upon an enemy, but even in bat- -tie for finishing already crippled ahips. Under exceptional circumstances submarine sub-marine bouts would doubtless b of use. Fast scouts are needed. - Tbe main strength of the navy, however, lies snd can only lie in the great battleships, the heavily-armored, heavily-gunned vessels which decide the mastory of th seas. Heavy-armed cruisers also play a most useful part, and unarmed cruisers. If twift enough, -are very useful as scouts. Between antagonists - of approximately equal prowess the comparative perfecting ; -of the Instruments of war will ordinariiip' v determine the fight. But it la of cour tru that th man behind the gun. yf i man in the engine-room, and the man in. the conning tower, considered not -nly individually, but especially with regard to - ' the way in which they work together, are , even more Important than the weapons i with which they work. ) The most formidable battleship Is of J course helpless against even a light crul-Jl ser If the men abroad It sr unabl to hit' I anything with their guns; and thoroughly ' . 7 fhe only e.cape from these alternatives may at any time be that we must ourselves our-selves undertake tq bring about aome arrangement ar-rangement by whloh ao much a pusslb e ofTjuat obligation shall b PfM. It is fir bitter that this country .hould I put through such an arrangement, rather than allow any foreign country to undertake under-take ft To do so Insures the defaulting republic from having to pay debts of an improper character under duress while It also insures honest creditors of the republic re-public from being passed by In the interest inter-est of dishonest or graspmg creditor. Moreover, for the United States to take such a position offers the only poasible way of Insuring us against a clash with some foreign power. The position is, therefore, in the Interest of peace well as in the Interest of Justice. It is of benefit ben-efit to our people: it la of benefit to foreign for-eign people and moat of all it Is really of benefit to the people of the country concerned. WAR ON DECREASE IN CIVILIZED NATIONS During tho last century there has been a distinct diminution in the number of wars between the most civilized nations. International relations have become closer, and th development of Th Hague tribunal is not only a symptom of this growing closeness of relationship, but ta a means by which the Rrowth can be furthered. Our aim should be from time to time to take such steps as may be possible toward creating something like an organization of the civilised nations, because as the world becomes more highly high-ly organized the need for navlos and armies will diminish. It Is not possible to secure snything like an Immediate disarmament, because It would first be necessary to settle what peoples are ou the whole a menace to the rest of mankind, and to provide ) against the disarmament of the rest being be-ing turned into a movement which would really chiefly benefit these obnoxious peoples; peo-ples; but it may be possible to exercise some check upon the tendency to swell Indefinitely the budgets for military expenditure. ex-penditure. Of course such an effort could succeed only If it did not attempt to do too much; and If It were undertaken In a spirit of sanity as far removed as possible from a merefv hysterical pseudo-philanthropy. It Is worth while pointing out that since the end of the Insurrection in the Philippines this Nation has shqwn its practical faith in the policy of disarmament by reducing Its little army one-third. But disarmament disarma-ment can never be of prime importance; there is more need to get . rid of the causes of war -than oft the implements of w a r. 1 have dwelt much on the dangers to be avoided by steering clear of any mere foolish sentimentslity because my wish for peace is so geiTulne and earnest; because be-cause I. have a real and great degirA-that this 4fucond Hague conference ma mark a long stride forward In the direyon of securing the peace of Justice throughout the world. No object la better worthy the attention of enlightened statesmanship than .the establishment of a surer method than now exists of securing Justice as between nations, both for the protection of the little nations and for the prevention preven-tion of war between the big nations. To thia aim we should endeavor not only to avert bloodshed, but, above all. effectively effective-ly to strengthen the forces of right. The Golden Ritfe should be, and as the world grows in morality it will be. the auidlng rule of conduct among nations as among Individuals; though the Golden Rule must not b construed, in fast antic manner, as forbidding the exercise of the police power. This mighty and free Republic Re-public should ever deal with aU other - FUNDAMENTAL OBJECT OF MONROE DOCTRINE This brings me to what should be one of th funds mental objects of the Monroe doctrine. We must ourselves in good faith trv to help upward toward peace and order those of our sister republics which need such help. Just a there has been a gradual growth of the ethical element ele-ment In the relations of one Individual to another, so we are, ven though slowly, more and more coming to recognise the duty of bearing on another burdens, not only a among indlvlduala, but also as among nations. ' Santo Domingo. In her turn, has now made an appeal to us to help her. and not only every principle of wisdom but every generous Instinct within us bid us respond re-spond to the appeal. It is not of the sliahtest consequence whether we grant the aid needed by Santo Domingo as an Incident to the wis development of the Monroe doctrine, or because we regard the case of Santo Domingo as standing wholly by Itself, and to be treated as such, and not on general principles or with any reference to the Monroe doctrine. doc-trine. The important point la to give the needed aid. and the case is certainly sufficiently suf-ficiently peculiar to deserve to be Judged purely on Its own merits. The conditions in Santo Domingo have for a number of years grown from bad to worse until a year ago all oclety wss on the verge of dissolution. Fortunately. 1ut as this time a ruler Prang up in 8anto Domingo, who, with his colleagues, saw the dangers threstenlng their country coun-try and appealed to the friendship of the only great and powerful neighbor who possessed the power, and as they hoped also .the will to help them. There was , t I well-handled cruisers may sount seriously 1 in an engagement with much, superior '-Sft'SfJ, u th mel aboard th-latter are J ineffective, whether, from lack of training i . 1 ?Z,lZom' w? other cause. Modern war-Xj'. war-Xj'. .ship. are moat formidable mechanism , i ; .when well handled, but they are utterly i - l19"! not well handled; and ,they' ! 3 hotbe handled at all without long! k I?. carful training. Thi training can runder- no ircumtanc be given when i ' ?f er ha broken out. No . fighting i ,nip of the flm class should ever be laid I tip Vv tor necessary .repairs; and her I ' crew should be kept constantly exercised l - m the high seas, so that she may stand hl"fctat point of perfection. I To put a new and untrained crew upon the .most powerful battleship and send It out to meet a . formidable enemy is not I only to Jnvlte but to insure disaster and disgrace. To improvise crews at the out-I out-I break of a war, so far as the serious fighting erafare concerned, is absolutely absolute-ly hopeless. If the officers and men are not thoroughly skilled in, and have not t t : been thoroughly trained to, their duties. it would be far better to keep the ships ' .'. . m-port 'during hostilities than to send . ' . them against a formidable opponent, for , 1 J th result could only be that they would 1 either sunk or captured. , i . - T The marksmanship of our navy, is now V on the whole In a gratifying condition, I and thjere has been a great improvement . ; In fleet practice. We need additional sea-. sea-. .man; we need a large store of reserve - guns; we need sufficient money for ample . target practice, ample practice of every ' kind at sea. We should substitute for s ' 1" comparatively inefficient types the old - third-class battleship Texas, the single-" single-" turreted monitors above mentioned, and i Indeed all the monitors and some of the v ' old cruisers efficient, modern, seagoing . vessels. Seagoing torpedo-boat destroyers should be substituted for some of the ' smaller torpedo boats. During the pres-' pres-' ent Congress there need be no additions to the aggregate number of units at the . . .. ; navy. ' Our navy, though very small relatively '. to the navies of other nations, is for the present sufficient In point of numbers for our needs, and while we must constantly strive to make Its efficiency higher, there I ' need be no additions to the total number ' of ships now buHt and building,, save In . the way of substitution as above outlined. i I recommend the report of the Secretary ' of the Navy to the careful consideration of the Congress, especially wttb a view to the legislation therein advocated. - : LAWS Or NATUR A T.T7 AXIOM" ' SH6t7LD BE UNIFORM t . ' ' During the past year evidence has accu-1 accu-1 , irulated to confirm the expressions con-' I tnlned tn mjf last two annual messages .'as to the importance of revising by ap-V,' ap-V,' propriat legislation our system of natur-' natur-' valizing aliens. I appointed, last March a .' commission to make a careful examtna- tion of our naturalisation laws, and to ' suggest appropriate measures to avoid the notorious abuses resulting from the im-, im-, provident or unlawful granting of cittsen-V cittsen-V ship. This commission, composed of an 1 officer of the Department of State, of the .Vpepartment of Justice, and of the De-Sirfhient De-Sirfhient of Commerce and -Labor, has .( discharged the duty Imposed upon it, and . has submitted a report, which will be ; transmitted to the Congress for its con-: con-: stderation, and, I hope, for its favorable I action. ' The distinguishing recommendations of fthe commission are: ) First A Federal bureau of ifaturaliza I tion, to be established in the Department i 1 of Commerce and Labor, to supervise the r - administration of the naturalisation laws land to receive returns of naturalisations ! pending and accomplished, i Second Uniformity of naturalization I certificates, fees to be charged, and pro- codure. Third More exacting qualifications for 1 citizenship. , 1 Fourth The preliminary declaration of j intention to be abolished and no alien to the naturalized until at least ninety days : after the filing of hi petition. ' Fifth Jurisdiction to naturalise aliens 1 to be confined to United 8tates District ' I courts and to uch State court a have ' Jurisdiction In civil actions tn which the ' 'amount In controversy Is unlimited: in ' cities of over 100,000 inhabitants the Unit-; Unit-; ed States District court to have exclu-. exclu-. sive jurisdiction, in the naturalisation of , the alien resident of uch cltie. CRIMINAL LAWS IK ' NEED OP REVISION In my last message I asked the atten-,l atten-,l tion of the Congress to, the urgent need of action to make our criminal law jnor effective; and I most earnestly request ' that you pay heed to the report of the 'S Attorney-General on thl subject. Centu- ries ago It was especially needful to f throw every safeguard round the accused. The danger then wa lest he should be : wronged by th State. The danger 1; - now exactly the reverse Our laws and customs tell Immensely in favor of the criminal and against the Interests of the - public he ha wronged. Some antiquated V - l.. .UI.L ........ .... m i f4 1 land. Under that act the construction of great Irrigation works has been proceeding proceed-ing rapidly and successfully, the lands reclaimed re-claimed . are eagerly taken up, and the i prospect that the policy of national Irrl- gation will accomplish all that was expected ex-pected of it is bright. The act should be extended to Include the State of Texas. ' The reclamation act derives roach of its value from Inexact that It tends to secure the greatest possible nutnber-of home on the land,, and to create communities of freeholders, in part by settlement on public pub-lic land. In part by forcing the subdivision of large private holdings before they can get water from Government Irrigation works. Tlie. law requires that no right to the use of Water for land in private ownership own-ership shall be sold for a tract exceeding 160 acres to any one land owner. This provision has excited active and powerful power-ful hostility, but the success of the law itself depends on the wise and firm enforcement en-forcement jot it. We can not afford to substitute tenant for freeholders on the public domain. ' The greater part of the remaining public pub-lic lands can not be Irrigated- They are at present and will probably always be of greater value for grazing than for any other purpose. This fact has led to the grazing homestead of 640 acres in Nebraa- ka and to the proposed extension of st to other States. It Is argued that a family c&n not be upported on 160 acres of arid grazing land. This Is obviously, true; but neither can a family be supported on 640 acres of much of the land to which it Is proposed to apply the,jrralng homestead. To establish universally any such arbitrary arbi-trary limit would be- unwise at the present pres-ent time. It would probably result on the on hand In enlarging ,the holdings or some of the great land owners, and on the other In needless suffering and -failure on the part of a very considerable proportion of the bona fide settlers who give faith to the Implied assurance of the Government Govern-ment that such an area is sufficient. The best us of the publlo grazing lands requires the careful examination and classification of these lands in order to give each settler land enough to support his family and no more. While this work is being done, and until the lands are settled, set-tled, the Government should take control of the open range, under reasonable regulations regu-lations suited to local needs, following th general policy already in successful operation ope-ration on the forest reserves. It is probable prob-able that th present grazing value of the open public range is scarcely more than half what it once was or what it might easily be again under careful regulation. The forest pollcv of the Administration appears to enjoy the unbroken support of th people. The great users of timber are themselves forwarding the movement for forest preservation. All organized opposition oppo-sition to the forest reserves in the West has disappeared. Since the consolidation of all Government forest work in the national na-tional forest service there has been a rapid and notable gain In the usefulness of the forest reserves to the people and In public appreciation of their value. The national parks within or sdjacent to forest for-est reserves should be transferred to the charge of the forest service also. The national Government already does something lit connection with th construction con-struction gnd maintenance of the great svstem of levees slong the lower course of the Mississippi; in my Judgment it should do much more. SHOULD ENCOURAGE MERCHANT MARINE To the spread of our trade In peace and the defense of our flag in war a great and prosperous merchant marine is indispensable. indis-pensable. We should have ships of our own' anil seamen rt our own to convey our good to neutral market, and In casa of need to re-enforce our battle line. It can not but be a source of regret and uneasiness to us that the lines of communication com-munication with our sister republics of South America should be chiefly under foreign control. It is not a good thing that American merchant and manufacturers manufac-turers should have to Send their goods and letters to South America via Europe If they wish security and dispatch. Even on the Pacific, where our shlpf have held their own better' than on th Atlantic, our merchant flag is now threatened through the liberal aid bestowed be-stowed by other government on their own steam lines. I ask your earnest consideration con-sideration of the, report with which the Merchant Marine commission . has followed fol-lowed its long and careful inquiry. JAMESTOWN CELEBRATION IS GIVEN GOOD WORD I again heartily commend to your favorable fa-vorable consideration the tercentennial celebration of the settlement at Jamestown. James-town. Va. Appreciating the desirability of thl commemoration, the Congress passed an act, March 3, 190C. authorizing In th year 1907, on and near the water of Hampton Road. In the State of Virginia, Vir-ginia, an International naval, marine, and military celebration In honor of this event. By th authority vested in me by this act, I have made proclamation of said celebration, and have issued, in con- should have none whatever of 'the wrong sort. Of course. It Is desirable that even the right kind of Immigration should be properly distributed In this country. .We i need more of such Immigration for the South; and special effort should be made to secure it. perhaps it would be poist- ble to limit-the number of immigrants allowed to com in any one-year to New Tfork and other Northern cities, while leaving-unlimited the number allowed to I eom to the South; alway provided, how- I ever, that a stricter effort la mad to see 1 that only Immigrant of the right kind mm to our country anywhere. In actual practice It ha proved so difficult dif-ficult to enforce the Immigration ' laws where long stretches of frontier marked by an imaginary line alone' interven be- 1 tween us god our neighbor that I re com- mdhd that no Immigrant be allowed to i com In from Canada and Mexico, save native of th two countries themselves. As much as possible should be done to distribute th immigrant upon the' land and keep them away from the congested tenement-house districts of the great cities. cit-ies. ut distribution Is a palliative, not a cur. The prime need Is to ker out all Immigrant who will not mae good American clttsens.. The laws -now existing for th exclusion of undesirable Immigrants should be strengthened. Adequate means should be ' adopted, enforced by sufficient penalties, to compel steamship companies engageV In the passenger business to -observe In good faith the law which forbids them to encourage or solicit Immigration to the United States. Moreover, there should be a sharp limitation Imposed upon all vessels ves-sels coming to our ports as to the number num-ber of immigrants in ratio to the tonnage which; each vessel can carry. This ratio should be nigh enough to insure the com- , Ing hither of as good a class of aliens as possible. Provision should be made for i the surer punishment of those who indue in-due aliens to come to this, country tinder tin-der promise or assurance of employment. . It should be made possible to Inflict a sufficiently heavy penalty on any em- , proyer. violating this law to deter him front taking the rink. It seems to me wise that there should be an International conference held to deal with this question of immigration, which has more than a merely national significance; such a conference could among other things enter at -length Into the methods for securingti thorough inspection in-spection of would-be immigrants at the ports from which they desire to embark before permitting them to emtiark. CONSIDER FITNESS V s FOR CITIZENSHIP In dealing with this question It Is unwise un-wise to depart from the old American tradition and to discriminate for or against any man who desires to come here and become a citisen, save on the ground of that man's fitness for citizenship. citizen-ship. It is our right and duty to consider his moral and social quality. His standard stand-ard of living should be such that .he will not, by pressure of competition, lower the standard of - living of our own wage-workers; wage-workers; for It must ever be a prime object ob-ject of our legislation to keep high their standard of living. - If the man who seeks to come here is from the moral and social so-cial standpoint of such a- character as to bid fair-to add value to the community, he should b heartily welcomed. We cannot can-not afford to pay heed to whether he is of one creed or another, of one nation or another. We cannot afford to consider whether he Is Catholic or Protestant. Jew or Gentile; whether he is Englishman or Irishman, Frenchman or German. Japanese, Jap-anese, Italian. Scandinavian, Slav or Magyar. What we should desire to find out is the individual quality of the Individual Indi-vidual man. In my judgment, with this end in view, we snail have to prepare through our own agents a far more rigid Inspection in the countries from which the Immigrant come. It will b a great deal better to have fewer immigrants, but all of the right kind, than a great number of immigrants, many of whom are necessarily of the wrong kind. As far a poasilSie we wish to limit the immigration to thi country to person who propose to become citizens citi-zens of this country, and we can well afford af-ford to .Insist upon adequate scrutiny of the character of those who are thus proposed pro-posed for future citizenship. There should be an increase In the stringency of the laws to keep out insane. Idiotic, epileptic and pauper immigrants. But this is by no means enough. Not merely the anarchist, anar-chist, but every man of anarchistic ten-' dencies. all violent and disorderly people, all people of bad character, the incompetent!, incompe-tent!, the lazy, the vicious, the physically unfit, defective, or degenerate should be kept out. The stocks out of which American Amer-ican citizenship Is to be built should be strong and healthy, sound In body, mind, and character. If It be objected that the Government agent would not alway select se-lect well, th anawer Is that they would certainly select better than do the agents' and brokers of foreign steamship companies, com-panies, the people who now do whatever selection i done. The questions arising In connection with Chinese. immigration Stand by themselves. them-selves. The conditions in China are such that the entire Chinese coolie class, that . . j . treatment to be accorded to our own people peo-ple of similar rank who go to China. Much trouble has com during th past summer from th organised boycott against American goods which has peea started In China. The main factor In producing pro-ducing this boycott ha been the resentment resent-ment felt by th student and business people of China, by all th Chines lead- , era, against the harshness of our law toward to-ward educated Chinamen of th, profea- j ional and business classes. I This Government ha th friendliest feeling for China and desires China' well-being. We - cordially sympathls with th announced purpose of Japan to tand for th Integrity of China. Such I an attitude tend to the peace of the I world. ' . CIVIL SERVICE LAW , SHOULD BR ENFORCED Th civil service law ,ti been on th statute book for twenty-two year. Every President and a vast' majority of head of department who have been In office during that period have favored a gradual extension of the merit system. Th more thoroughly its principles have been understood, the greater has been the favor with which the law has been regarded re-garded by administrative officer. Any attempt to carry on the great executive department of the Government without thl law would Inevitably result in chaos. The Civil 8ervlce commissioners are do-I Ing excellent work; and their compensa-. tion is Inadequate considering the service they perform. . The statement that the examination are not practical in character is based on a misapprehension of the practice of tha commission. The departments are Invariably Invari-ably consulted as to the requirements desired de-sired and as to the character of questions that shall be asked. General invitations Are frequently sent out to all beads of departments asking whether any change in the scope or character of examinations are required. In other words, th department depart-ment prescribe the requirements and th qualification desired, and the Civil Service Ser-vice commission co-operates with them In securing persons with these qualifications qualifica-tions and insuring open' and Impartial competition. In a large number of . examinations ex-aminations (as, for example, those for trades positions) there are no educational requirements whatever, and a peron who can neither read nor write may pas with a high average. Vacancies In the service are filled with reasonable expedition and the machinery of the commission, which reaches every part of the country, la th best agency that has yet been devised for finding people with . the most suitable qualifications for the various offices to be filled. . 1 Written competitive examination do not make an ideal method for filling positions, posi-tions, but they do represent an Immeasurable Immeasur-able advance upon the "spoils" method, under which outside politicians really make the appointments nominally made by the executive officer, th appointee being chosen by the politicians In question, ques-tion, in the great majority of cases, for 1 reasons totally unconnected with the needs of the service or of the public. Statistics gathered by the census bureau show that the tenure of office in th Gov. ernment service does not differ materially from- that enjoyed by employees of large business corporations. Heads of executive execu-tive departments and members of the commission have called my attention to the fact that the rule requiring a filing of charges and three day' .notice before an employee could be separated from the service for Inefficiency has served no good purpose whatever, because that is not a matter 'npon which a hearing of the employee em-ployee found to be Inefficient can be of any value, and in practice the rule providing pro-viding for such notice and hearing ha merely resulted in keeping In a certain number of Incompetents, because of. the reluctance of head of department and bureau chiefs to go through the required procedure. Experience ha shown that this rule I wholly ineffective to save any man. If a superior for Improper reasons wishes to remove him, and is mischievous because It sometimes serves to keep In the service incompetent men not guilty of specific wrong-doing. Having these fact In view, th rule has been amended by providing that where the Inefficiency or Incapacity comes within the personal knowledge of the head of a department the removal may be made without notice, the reasons therefor being filed and made a record of the department. de-partment. The absolute right of removal rests where it always ha rested, with th head of a department; any limitation of this absolute right results In grave in-Jury in-Jury to the public service. Th change Is merely one of procedure: it was much needed; and It is producing good results. The civil service law Is being energetically energeti-cally and Impartially enforced, and In the large majority of cases complaints of violations vio-lations of either the law or rule are discovered dis-covered to be unfounded. In thl repect, this law compares very favorably with anv other Federal statute. The question of pplitics In th appointment appoint-ment and retention of the men engaged In merely ministerial work has been practi-callv practi-callv eliminated in almost th entire field of Government employment covered by . i l . . 1 1 Bnw.,lAA Ian, Th, ni.flin tt fhjh In the number of Inspectors, whose duty It shall be to detect violation of the act NATIONAL FARSS AR3 ; ' TO 2 ENCOURAGED . call your attention to the generous get of th Stat of California tn conferring confer-ring upon the. United Slate Government th ownership' f the Yosemlte valley and th Marlpe Big Tree grove. There should be no delay In accepting the gift, and appropriation should be imade fr the Including thereof in the Yosemlte National Na-tional park, and for the care and pollce-ing pollce-ing of th park. California has acted most wisely as well a with great magnanimity mag-nanimity In the matter. There are certain cer-tain mighty natural features of oujr land which should be preserved in perpetuity for our children and our children children. chil-dren. In my Judgment th Grand Canyon Can-yon of the Colorado should be made Into g national park. It 1 greatly to be. wlehed that th State of New York should copy as regards Niagara what the State of California has done a regards the Yosemlte. Nothing should be allowed to interfere with the preservation of Niagara Falls In all their beauty and majesty. If the State cannot see to this then it Is earnestly to be' wished that she should be willing to turn It over to the National Government, which should In such case (if possible. In conjunction with the Canadian Government) Gov-ernment) assume the burden and respon-t sibllity. of preserving unharmed Niagara Falls;. Just as it should gladly areume a similar burden and responsibility for th YoaemltA National park, and as it ha lready assumed them for the Yellowstone Yel-lowstone National park. Adequate provision pro-vision should be made by the Congress for the proper care and supervision of all these national parks. The boundaries of the Yellowstone National park should be extended to the south. and east to take In such- portions of the abutting forest reservation- as will enable the Government Govern-ment to protect the elk on their whiter range. Th most characteristic animal of the Western plains was the great shaggy-nianed shaggy-nianed wild ox. the - btaon. commonly known as buffalo.' Smsll fragments of herds exist in a domesticated state her nd there, a few of them In the Yellow-stone Yellow-stone park. Such a herd as that on the Flathead reservation should not be allowed al-lowed to go out of existence. Either on some reservation or on soma forest reserve re-serve like the Wichita reserv and gam refuge provision should be made for the preservation of such a herd. - I believe that the scheme would be of economic advantage, ad-vantage, for the robe of the buffalo Is of high market value, and the same is true of the robe of th crossbred animals. URGES PENSIONS IN LIFE-SAVING SERVICE i " " I call your especial attention to the desirability de-sirability of giving to the member of the Life-Saving Service pensions such as are given to firemen and policemen In all our great cities. The men In the IJfe-SavIng Service continually and in th most matter mat-ter of fact way do deeds such ss make American proud of their country. They have no political influence; and they live in such remot place that the really heroic services they continually render receive the scantiest recognition from the public. It Is unjust for a great nation like this to permit these men to become totally disabled or to meet death In the performance of their hazardous duty and yet to give them no sort of reward. If one of them serve thirty year of his life in such a position he should surely be entitled en-titled to retire on half pay, a a fireman or policeman does, and If h becomes totally incapacitated through accident or sickness or loses his health In the discharge dis-charge of his duty he or his family should receive a pension Just a any soldier should. I call your attention with especial earnestness earn-estness to this matter because It appeals not only to our Judgment but to our sympathy; sym-pathy; for the people on whose behalf I ask it are comparatively few in number, render Incalculable service of a particularly particu-larly dangerous kind, and have no one to speak for them. NEW PHASE TAKEN IN V INDIAN QUESTION During the year Just past, the phase of the Indian question which ha been most sharply brought to public attention is the larger legal significance of the Indian's induction into citizenship. This has made Itself manifest not only In a great access of litigation in which the citisen Indian figures as a party defendant and in a more widespread disposition to levy local taxation upon his personality, but in a decision of-the United Stat Supreme court which struck away the main prop on which has hitherto rested the Government's Govern-ment's benevolent effort to protect him against the evils of Intemperance. The court holds. In effect, that when an Indian In-dian becomes, by virtue of an allotment nal-revenue law. Imposing taxes on cigars, ci-gars, cigarettes, and distilled liquors, and "abolishing' the oi l Spanish industrial Uxes. Tha law has not operated as smoothly e was hoped, and although its principle Is undoubtedly correct, it may need amendments for the purpose of reconciling rec-onciling the people ' to.' its .provisions. .pro-visions. The income derived from it has partly made up for the reduction Jn customs cus-toms revenue. - ' There ha been a marked Increase in the number of Filipinos .employed In the civil service, and a corresponding decrease de-crease In th number of Americans. The Government in every one of its departments depart-ments has been rendered more efficient by elimination of undesirable material and the promotion of deserving public servants, ser-vants, v Improvement of harbors, -roads, and bridges continue, although the cutting cut-ting down of tha -.revenue forbids the expenditure of .-any great amount from : current income, for these purposes. Steps are - being ' taken, by , advertisement for competitive bids, to secure the construction and maintenance main-tenance of 1000 miles of railway by private corporations under the recant enabling en-abling legislation of the Congress. The transfer of the friar lands, in accordance, accord-ance, with the contract made some, two years ago. has been completely effected, and the purchase money paid. Provision haa Ju.it been made by statute for the speedy settlement in a special proceeding In the Supreme court of controversies over the possession and title of church building and rectorie arising between the Romnn , Catholic church and schismatic schis-matic claiming under ancient municipalities. municipal-ities. Negotiations and hearings for. the settlement of the amount due td the Roman Ro-man Catholic church for rent and occupation occu-pation of churches and rectories by the army of the United State are in progress and It is hoped a satisfactory conclusion may be submitted to the Congress before the end of th session. Tranquillity has existed during the past year tliroughout the archipelago, txcupt In the province of Cavlte. the province of Batangas, and the province of Samar, and In the island of Jolo among the Moras. Mo-ras. The Jolo disturbance was put an end to by several sharp and short engagements, engage-ments, and now peace prevails in the Moro province. Cavlte,. the mothr of ladrones In the Spanish time. Is so permeated per-meated with the traditional ympathy of the people for ladroniam as to make It difficult to stamp out the disease. Batangas Ba-tangas was only disturbed by reason of the fugitive ladrones " from Cavlte. Samar Sa-mar w4 thrown into disturbance by the uneducated and partly savage peoples living liv-ing .in th mountain, who. having been given by the municipal code more power than they were able to exercise discreetly, discreet-ly, elected municipal officers who abused their trusts, compelled the prople raising hemp to sell It at a much less price ihan It was worth, and by their abuses drove their people Into resistance to constituted authority. I SELF-GOVERNMENT : ' V MATTER FOR FUTURE CavKe and Samar are instances of reposing re-posing too much confidence in the elf-governing elf-governing power of a people. The disturbances dis-turbances have all now been suppressed, and it is hoped that with these lessons local governments can be form,ed which will secure quiet and peace to the U--serving inhabitants. The Incident is another an-other proof -of the fact that if there has been any error as regards-giving self-government self-government In the Philippines- it has been in the direction of giving it too quickly, not too slowly. A year from lext April the first legislative assembly for the Islands will be hrld. On thd sanity and self-restraint of .this body much will depend so far as the future self-government ut tho islands is concerned. con-cerned. The nwet encouraging Teature of the whole situation has been the very great interest taken by the common people In education and the great increase in the number of enrolled students in the public pub-lic schools. The increase was from to half a million pupil. The average attendance Is about 7u per cent. Tho only limit upon the number of pupils seems to be the capacity ef the Government to furnish teachers and schoolhous s. The agricultural conditions of the islands is-lands enforce more strongly than ever the argument In fsvor of reducing the tariff on the products of the Philippine Islands entering the Urited Stntes. I earnestly recommend that the tariff now Imposed by the Dlngley bill upon th products of the Philippine Islands be n-tirely n-tirely removed, except the tariff on 'sugar and tobacco, and that that tariff be r duced to 25 per cent of the present rates under the Dlngley act: that after July 1. li0D, th tariflUupon tobscco end sugar produced in the Philippine Inlands be entirely en-tirely removed and that fret' trade between be-tween the islands and the I'nited States in the products of each country tht-n be provided for by law. A statute in force, enacted April 1. 1P04. suspends the operation of the coastwise coast-wise laws of the I'nited States upon the trade between the Philippine Islands and the Tnited .States until July 1. 19o6. I earnestly recommend that this suspen- Ka nn.-t ..tii.H i ntll Titlv 1 1VQ T denied admis!on to the other States an4 Territories. There are obstacles, and great obstacles, in tha way of building up a representative American community com-munity i.n the Hawaiian Islands; but it' U not in the American character to give up in the face of diiflcuity. Many an American Commonwpth has been built up as:iinst odds equal to those that now confront Hawaii. . ' No merely hhlf-hearted effort to meet Its problems as other American communities com-munities have met theirs can be accepted ac-cepted as final. Hawaii shall never be-to be-to mo a Territory in which a governing class of rich planter exist by mean of coolie labor. Even if the rate of growth of the Territory Is thereby rendered ren-dered slower, the growth must only take place by the admission of Immigrant tit in the-end to assume the duties and burdens of full American citizenship. Our aim must be to develop the Territory On the Hume basis of stable citlzenahlp aa exists on this continent. PORTO RICANS SHOULD : .- HAVE CITIZENSHIP M. earnestly 'advocate th adoptlon-f . -legislation which will explicit onfer ' Americftn citizenship on all citizens- of Porto Rico. There is. in my Judgment, no excuse for falture.to do this. Th harbor of San Juan should b dredged and Improved,- The expenses 'of th Federal court of Porto liico should b met from the Federal treasury, and not from th Porto Klcah treasury. Th electrons In Porto Rico ahould take plac every four year, and the legislature -should meet In session every two years. .The present form of government Itt Porto Rico, which provide for the ap pointment by th President of tho members mem-bers of the executive council or upper be use of the legislature, has proved aatis- i factory and has Inspired confidence In-property In-property owners and Investor. I do not deem it advisable at the present time to change thi form in any material feature. . The problems and needs of the island are Industrial and commercial rather than political. I wish also to call th attention ef the ' Congress to-one question which affect - I our insular possessions generally; name- i ly. the ned of an Increased liberality In the' treatment, of the whole franchise -. ; question in these Island. In the proper j desire 'to prevent tha island being ex plotted by speculator and to hav them develop in the interest of their own peo- j pie an error ha been made in refusing 4- ' to grant sufficiently liberal term to In-, duoe thn investment of American capital 1 In the Philippines and In JPorto Rico. Elsewhere In the message I have spoken, strongly against the jealousy of men wealth, 'and eaiiecially of corporst wealth as such. But it is .particularly regrettable to allow any such Jealousy to , be. developed when we are dealing either with our insular or with foreign affair. The big corporation ha achieved its present position in thr business world. - ; simply because it is th moat effective instrument in business coibpctiUon. Is foreign affairs we can not afford to put - 1 our people at a disadvantage with theli . I competitor by in any way dlscrimlnat- - -j ing afrainst the efficiency of our business 4 organizations. In the same way we caq not afford to allowVur Insular possessions j to lag behind in industrial development j from any twisted jealousy of business success. ' -y It Is. of course, a mere truism to saj 1 that the business interests of the island) will only be developed if It becomes th-financial th-financial Interest of somebody to develop them. Yet this development is one of th things most earnestly to be wished or Is ! the interest of the islands themselves We have bee paying all possible hee to the political and (educational interest! of the l?lnnds. - but. important thougt these objects are. it is not less important that we Hhou'd favor their Industrial de- -velopment. The Government can In cer, tain ways help this directly, as by build. - ing good ruuds; but the fundamental and vital help must bo given through the de, I veloprnent of the- Industries of the isi lands, and a" most efficient means t this end is to encourage big American corpo, 1 ' rations to start industries in them an4 this means to maHc it advantageous f'1 them to do so. ' To limit the ownership - of minimi j claims as has been done in -the Philip- ( pines is absurd. In both the Philippine! j and Portar Hlco the limit of holdings ol I land should be largely raised. ' ALASKA DESERVING OF REPRESENTATION! I earnestly ask that Alaska be giver ' nn elective delegate. Some person shouU 1 . be chosen who can speak . with au thoritv of the needs of the Territory: The i;overnrunt should aid In the con-struction con-struction of a nllro.-.d from the Gulf ol . Alaska to the Yukon river. In American -territory. in r?y list two messages I advocate certain additional action on behalf o Alaska. I shall now repoat those recommendations, recom-mendations, but I shall lay all my stresi upon the one recommendation of- gtvlns to Alaska sonn one authorized to speak r.-w it I ehnnlit nrrfrr that the dfMeff.ltf ana omwum ruir wiun v- 11 e " u - -ed the threatened rights of private citl- zens, now merely work harm to tho gen- . rl body politic. , t The criminal law of th United States stands In urgent need of revision. The Criminal process of any court of the Knlted State should run throughout the A-ntir territorial extent of our country. The delays of the criminal law. no less J than of th civil, now amount to a very d great evil. ' There seem to be no statute of the H Tnited State which provide for the punishment of a United State Attorney or other officer of th Government who eorruptly agrees to wrongfully do or a wrongfully refrain from doing any act T when th .consideration for such corrupt agreement I othr than one possessing I money value. Thl ought to be remedied by appropriate legislation. ' Legislation should also be enacted to cover, explicitly, unequivocally and beyond be-yond question, breach of trust in ' the hap of prematurely divulging official secrets by an officer or employee of the ' United States, and to provide a suitable penalty therefor. Such officer or employee em-ployee owe th duty to the United States to guard carefully and not to divulge or - In any manner use, prematurely, information infor-mation which Is accessible to the officer - .. or employe by reason of his official position. po-sition. Most breaches of public trust are ) already covered by th law, and thi one I should be. v " It-la- lmpoible. nomtter how much care Is used, to prevent the occasional ap- - pointment to the public service of a man who when tempted proves unfaithful ;- but every mean should be provided to detect and every effort made to punish the wrongdoer. So far a in my power lie ; each and every such wrongdoer shall be " relentlessly hunted down; in no Instance I in the past ha he been spared: In no In- stance in the future shall he be spared. HI crime ia a crime against every honest hon-est man in the Nation, for it ia a crime ' against the whole body politic. Yet in dwelling on such misdeeds, it Is , unjust, not to add that they are alto-v alto-v ' getber exceptional, and that on the whole A the -employee of tha Government render upright and faithful service to the people. peo-ple. There are exceptions, notably in on or two branche of the ervlce; but at no .' time In th Nation' history ha, the pub- - lie service of the Nation taken a whole stood on a higher plan than now, alike ' a regard honesty and as regards ef-.flrlency.' ef-.flrlency.' ; 5 . WORK OF RECLAMATION SERVICE COMMENDED Once again I call Your attention to the ' . condition of tha public land laws. Recent ' .'.'.developments have given new urgency to the ne4 'or such change a will fit these law to actual present conditions. The honest disposal and right use ef the re- maintng public land I of fundamental - -1 importance. The Iniquitous methods by J which th monopolizing of the public ' ""Vlgnds I being brought about under the - - t -Wesent law are becoming more generally ' kteown. but-the existing Jaw do not fur-i fur-i nth effective remedies. Th recommen-i recommen-i datlons of the Publlo Land commission jt -, thi ubject are wis and ahould be I civ An fttjet. ' Lr Th creation of entail irrigated farm ft under th reclamation act is a powerful offset to the tendency of certain other Jew to foster or permit monopoly of th 1 . - V 1 ' - . I 1 - . - 'V ' - ' ' 1 formlty with it Instructions, invitation to all th nations of the earth to participate, partici-pate, by sending their naval vessels and such military organizations as may be practicable. . ., This celebration would fail of its full purpose unless it were enduring In its, results re-sults and commensurate with the importance import-ance of the event to be celebrated, th event from which our .Nation dates it birth. I earnestly hope that thi celebration, celebra-tion, already Indorsed by the Congress of the United States, and by the Legislatures Legisla-tures of sixteen States since the actttfn of th Congress, wlliyeceive such additional aid at your hands as will mak it worthy of the great event it 1 intended to celebrate, cele-brate, and thereby enable the Government Govern-ment -at the , United State to make provision pro-vision for the exhibition of Its own resource, re-source, and likewise enable our people who have undertaken th work of uch a celebration to provide suitable and proper entertainment and Instruction in the historic his-toric events of our country for all who may visit the exposition and to whom we have tendered our hospitality. It is a matter of unmixed satisfaction once more to call attention to the excellent excel-lent work of the Peneion bureau; for the veterans of the Civil war have a greater claim upon us than any other class of our citizens. To them, first of all among our peopl, honor Is due. Seven years ago my lamented predecessor. predeces-sor. Preldent McKinley. tated that the tlm had come for the Nation to care for the grave of the Confederate dead. I recommend that the Congres take action toward thi end. The first need Is to take charge of the graves of the Confederate dead who died in Northern prison. IMMIGRATION PROBLEMS ' NEED CONSIDERATION The question of Immigration Is of vital Interest to this country. In the year ending end-ing June 30, 1905. ther cam to the United Unit-ed State 1,020.000 alien immigrants. In other words, in the aingle year that has Just elapsed there came to this country j a greater number of people than came here during the 189 years of our colonial life which Intervened between the first landing at Jamestown and the Declaration Declara-tion of Independence. It Is clearly shown In the report of the Commissioner-General of Immigration that while much of this enormous immigration is undoubtedly healthy and natural, a considerable proportion pro-portion Is undesirable from one reason or another; moreover, a considerable proportion propor-tion of It, probably a very large proportion, propor-tion, including most of -the undesirable class, does not come here of its own Initiative, In-itiative, but because of the activity of the agents of the great transportation companies. com-panies. These agents are distributed throughout Europe, and by tho offer of all kinds of inducements they wheedle and cajole many Immigrant, often against their best Interest, to come here. The most eerioua obstacle we have to encounter In the effort to secure a proper regulation of the immigration to these shores arises from th determined opposition oppo-sition of th foreign steamship lines who have no Interest whatever in the matter save to Increase the returns on their capital cap-ital by carrying masses of Immigrants hither In th teersge- quarter of their ship. .- A I said In my last message to tha Congress, we cannot have too much immigration im-migration of the right sort, and w is, tne class or I'ninese laborers, agiuea and unskilled, legitimately come under the head of :Jesirable Immigrant to this country, because of their numbers, the low wages for which they work, and their low standard of living. Not only is it to the interest of this country to keep them out, but the Chinese authorities do not desire that they should be admitted. At present their entrance is prohibited by laws amply adequate to accomplish this fiurpose. These laws hav been, are be-ng. be-ng. and will be, thoroughly enforced. The violation of them are so few in number as to be Infinitesimal and can be entirely disregarded. There is no serious proposal pro-posal to alter the immigration lew a regard re-gard the Chinese laborer, skilled or unskilled, un-skilled, and there ia no excuse for any man feeling or affecting to feel the slightest slight-est alarm on the subject. But In the effort to carry out the policy pol-icy of excluding Chinese laborers, Chinese Chi-nese coolies, grave Injustice and wrong have been done by this Nation to the people of China, and therefore ultimately to this Nation itself. Chinese students, business and professional men of all kinds not only merchants, but bankers, doctors, manufacturers, professors, travelers trav-elers and the like should be encouraged to come here and treated on precisely the same footing that we treat students, business bus-iness men, travelers, and the like of other oth-er nations. Our law and treaties should be framed, not so a to put these people In the excepted classes, but to state that we will admit all Chinese, except Chinese Chi-nese of the coolie class, Chinese skilled or unskilled laborers. There would not be the least danger that any such provision would result in any relaxation of the law about laborers. These will, under all conditions, con-ditions, be kept out absolutely. But It will be more easy to see that both justice and courtesy are shown, as they ought to be shown, to other Chlnaee, If the law or treaty Ia framed a above suggested. Examination h(.ild be completed com-pleted at th port of departure from China. For thl purpose there should be provided a more adequate consular service ser-vice In China than wa now have. Th appropriation, ap-propriation, both for the offices of the Consuls and for th office force In the consulates should be Increased. OPEN DOOR IN CHINA; LAW OF RETALIATION As a people we have talked much of th 1 open door In China, and we expect, and quite rightly intend to insist upon, Justice-feeing shown us by the Chinese. -But we eaft not expect to receive equity unless un-less we do equity. We can not ask the Chinese to dp to us what we are unwilling unwill-ing -to do to them. They would have a tietfect right to exclude our laboring men If .our laboring men threatened to come Into their country In ueh number as to jeopardize the well-being of the Chinese population; and as. mutatis mutandis, these were the conditions with which Chinese immigration actually brought this people face to face, we had and have a perfect right, .which the Chinese Government Gov-ernment in no way contest, to act a we have acted In the matter of restricting coolie Immigration. That thl right exist ex-ist for each country wa explicitly acknowledged ac-knowledged In. the Last treaty between the two countries. But we must treat the Chinese student, traveler, and business busi-ness man In a spirit of the broadest justice jus-tice and courtesy If we expect, similar Congress In providing the commission with its own force Instead of requiring it to relv on detailed clerks has been Justified" Justi-fied" by the increased work don at a smaller cost to the Government. I urge upon the Congress a careful consideration of the recommendation contained In the, annual report of the commission. COPYRIGHT LAWS IN NEED OF REVISION Our copyright' laws urgently need revision. revi-sion. They - are Imperfect in definition, confused and Inconsistent In expression; they omit provision for many articles which, under modern reproductive processes, pro-cesses, are entitled to protection; they Impose Im-pose hardship upon the copyright proprietor pro-prietor which are not essentjaj.- to the fulr protection of the public; they are difficult for the court to interpret and Impossible for the copyright office to administer ad-minister with atisfaction to the public. Attempt to Improve them by amendment have been frequent, no less than twelve nets for the purpose having been passed since the Revised Statutes. To perfect them by further amendment seem Impracticable. Im-practicable. A complete revision of them Is essential. Such a revision, to meet modern conditions,, has been found necessary neces-sary in Germany. Austria, Sweden, and ether foreign countries, and bills embodying embody-ing It are pending in England and the Australian colonies. It haa been urged here, and proposals for a commission to undertake It have, from time to time, been pressed upon the Congres. The Inconvenience of the present conditions con-ditions being so great, an attempt to .frame appropriate legislation has been mnde by the copyright office, which has called conferences of the various Interests especially and practically concerned with the operation of the copyright law. It ha secured from them suggestions to the changes necessary; It ha added from Its own experience and Investigation, and it has drafted a bill which embodies I such of these changes and addition as. after full discussion and expert criticism, appeared to be ound and safe. In form this bill would replace the existing lnsuf nclent and in iislent laws by one general gen-eral copyright statute. It will be presented present-ed to the Congress at the coming session. It deserves prompt consideration. -- I recommend thsjt a law be enacted to regulate interstate commerce In mis-branded mis-branded and adulterated foods, drink and drugs. Such law would protect legitimate le-gitimate manufacture and commerce, and would tend to secure the health and welfare wel-fare of the consuming public. Traffic in foodstuffs which huve been debased or adulterated so as to njnre health or to deceive purchasers should be forbidden. ' The law forbidding the emission of dense black or gray smoke In the city of Washington has been sustained by the courts. Something has been accomplished accom-plished under It. but much remains to be done If we would preserve the Capital City from defacement by tho smoke nuisance. nui-sance. Repeated prosecutions under the law have not had tha drslrcd effect. I recommend that it be made more stringent strin-gent by Increasing both the minimum and maximum fine; by providing for Imprisonment Impris-onment in . iBc of rPated violation; and by affording the remedy of Injunction Injunc-tion against the continuation of the operation ope-ration of plants which are persistent offenders. of-fenders. I recommend, also, an Increase vi lana 10 nun. cmrcn ui ina emir in which his land Is situated, he passes from under Federal control In such matters as this, and the acts of th Congress prohibiting pro-hibiting tha sale or gtft to him of intoxicants intoxi-cants become substantially Inoperative. It Is gratifying to note that the States and municipalities of the West which have most at stake In the welfare of the Indians are taking up this subject and are trying to supply, in a measure at least, the abdication of It trusteeship forced upon the Federal Government. Nevertheless, I would urgently press upon up-on the attention of the Congress the question whether some amendment of the internal-revenue law' might not be of aid in prosecuting those malefactors, known In th Indian country a "bootleggers," who are engaged at one In defrauding the United State treasury of taxes and, what is far more Important, in debauching debauch-ing the Indians by carrying liquors Illicitly Illicit-ly into territory still completely under Federal jurisdiction. Among the crying present needs of the Indians are more day schools situated in the midst of their settlements, more effective ef-fective instruction In the Industrie pursued pur-sued on their own farms, and a more liberal lib-eral extension of the field-matron service, which means the education of the Indian women in the arts of home-making. 1,'n-tll 1,'n-tll the mothers are well started In the right direction we can not reasonably expect ex-pect much from the children who are soon to form an integral part of our American citizenship. Moreover, the excuse ex-cuse continually advanced by male adult Indians for refusing offers of remunerative remunera-tive employment at a distance from their homes is that they dare not leave their families too long out of their sight. One effectual remedy for this state of things Is to employ the minds and strengthen the moral fiber of the Indian women the end to which the work of the field matron Is especially directed. I trust that the Congress will make its appropriations for Indian day schools and field matrons as generous, as may consist with the other pressing demands upon It providence. PHILIPPINE PROBLEMS AT THE PRESENT TIME During the. lust year the Philippine islands have been slowly recovering from the series of disasters which, since American Ameri-can occupation, have greatly reduced the amount of agricultural products below what wa produced in Spanish tlnp-s. -The war, th rinderpest, the locusts, the drought, and the cholera have been united as causes to prevent a return of the prosperity pros-perity much needed In the Islands. The t most serlqus is the destruction by the rinderpest of more than "." mr rent of the draft cattle, because It v, .1 take- several year of breeding to restore the necessary number of these Indispensable elds to agriculture. The commission attempted to supply by purchase from adjoining countries the needed cattle, but the experiments exper-iments made were unsuccessful. Most of the cattle imported were unable to withstand with-stand the change ef ellhuite nnd the rigors of the voyme nnd died from other diseases than rlnii'-rjH't. Th income of tho Philippine Government Govern-ment has necessarily been reduced bv reason of thf business and auriculturr.l depression In the islands, and the Gov. ernment has been- obliged to execclse gieat economy to cut down Us expenses, to reduce salaries, and In every way to avoid a deficit. It has adopted an inter- think It of doubtful utility ' to apply the coastwtse laws to the trade between (the United .States and the Philippines under nny circumstances, - because I am convinced that It wilt do no good whatever what-ever to American bottoms, and will only Interfere and be an obstacle to the trade between the Philippines and the I'nited States; but if the roastwttf law must be thus applied, certainly it ought not to have effect until free trade Is enjoyed between be-tween the people of the United States and the people of the Philippine Islands In. their respective products. I do not anticipate that free trade between be-tween the Islands and the United States will produce a revolution In the sugat and tobacco, production of the Philippine Islands. So primitive are the methods of agriculture in the Philippine Islands, so slow is capital in going to the islands, so many difficulties surround a lurge agricultural enterprise in the islands, that It will be many, many years before the product of those islands will have any effect Whatever upon -the markets of the United States. Tha problem of labor is also a formidable one with the sugar .and tobacco producers tn the Islands. Isl-ands. '. . The best friends of the Filipino people peo-ple themselves are utterly opposed to the admission of Chinese coolie labor. Hem-e the only solution Is the trifinlng of Filipino Fili-pino labor, and this will take a long time. The enactment" of ix law by the Congress' Con-gress' of the United 8tutes making prTTMslon for fre trade between the Isl- ands and the United St.ttea. however, will be of great importance from a political and sentimental standpoint: and while its actual benefit hns doubtless been exaggerated by the people of the Islands, they will accent this measure of justice as an indication that the people of the United States are anxious to aid the people of the Philippine Islands in every way. and especially In the agricultural agricul-tural development of their anhijwlaco. It will aid the Filipinos without injuring Interests in America. FORTIFICATIONS ON r HAWAIIAN ISLANDS In my judgment immediate stuns should be taken for the fortification of Hawaii. This is the most Important point in the Pacific to forlifv in order to conserve tho Interests of this country. It woul I lm hard to overstate the Importance of this need. Hawaii is too henvlly taxed. Laws should be enacted setting nslde for a period of. say. twenty years per cent of tho lntern.il revenue and customs receipts' re-ceipts' from Hawaii as a sin-chil fund to be- expended In the Islands for cdite-a-t:oual and public buildings, an 1 for harbor har-bor improvements and Military and naval 4 defenses. It can not be too often re-lieatrd re-lieatrd that our aim must be, to develop the Territory of Hawaii on' traditional American lines. - That Territory hns serious t-oirimercial nnd industrial problems to reckon with; but no incisure if relief ran ! 1311-slrtereil 1311-slrtereil which looks l egslutip nd-miuij.if nd-miuij.if Chineso nnd restricting them by rtatule tn iMd I.tlior nnd domestic Pcr-vle Pcr-vle TUc status of. R- rvility can neYtT again bu tolerate,! on American soil. We can not concede that the proper solution of it problems Is special legislation admitting ad-mitting o Hawaii a class of iaitorcrs was made elective, but If this is not deemed wise then njnke hjm appointive. At any rate, give Alaska some persoa whose business it shall bo to speak wit authority on he"r behalf 1 3 the Congress. The natural resources of Alaska ar great. Some of the chief "needs of th peculiarly energetic - self-reliant an ; typically Amevlfun white population o - .'I Alaska "were set fonh in my last message. mes-sage. 1 also earnestly ask your attention to the need of the Alaskan Indians, All Indians who are competent should re. ceive the full lights of American citizenship. citizen-ship. It is, for instance, a gross and Indefensible wron.f to deny to. sue hard-working, decent-living Indians at the Metlakahtlas the right to obtain 11. .. cer.ses as captains, pilots and engineers, the riKht to enter mining clalma and t profit by th homestead law. These par. I ticelar lnd:ans nre civilized, and ar competent and entitled to be put on th sjinw basis with the white men round about them. ADVISZS TWO STATES ! OUT OF TERRITORIES . I I recommend that Indian Territory anl . " Oklahoma bo admitted as on Stat and that New llcy'cf and Arizona be admitted ad-mitted as 0110 State. There la no obliga- s tion, upon ns to treat territorial sub- divisions, which are matters of convenience conven-ience only, as binding us on 'the ques- tion of adniUsion to Statehood. Nothing Noth-ing has tuken up more time In th Congress during the past few years than ; the question a a, to the Statehood to . be granted to the four Territories ahov mentioned, and after careful consider, tion of all that has been developed in th discussions of tho question I recommend that thfy be immediately admitted a two State. There is no justification ff further dcliy; and the advisability making the four Territories Into tw Slatos has been clearly established. In some of the Territories the legislative legisla-tive assemblies lsst:e licenses foi gambling. Tlu Congress should by !sw forbid this prn-'t'ee. the hnrmfut result cf which arc obvious ut a glance. - MOUSY IS NEEDED IN CANAL CONSTEUCTION The treaty between the Uni J States and the' republic of Pun.m.a. under ' which t!u construction of the Panama ,. crnal wns made possIW. went into effect with its i-iiit'i' uii- n by the United State Senate en Kvi.ciiaiv 21. ljt. ""he tana! ' properties of t!. French Cnnnl compinv 1 were tia rr-l to the United States in , April . 1 ii-.vment cf tl0.l(M to that rompas.v. On April 1. lloi the com- j mission i i fci'.iilzii. and -it now rs nslsts of Tlie...lore I. Shonts chair- man Ci.arli s K. Macron. Uenjamln j M. 11:ito.1. Keir-Adml -il Mordecai T. f 'iKlicntt. IJi ir.-Uen. Peter. C. Mains and ' i Col. swh''1 II. Krnst. John F. fcievfrua was api-dntid ehie-f engineer on July 1 last. ' - Aetive work in i-anal construction, mallv preparatory, has tee n progress fortne.re than a year and a half. Durinc thnt rerio.l two points about the canal have; ceased to be ooon to debate. First, the question of route; the canal will be . . (Continued on page 10.) - President's Nessoge, - t - , " I 1 (Continued from page 7.) ' built on the" Isthmus of Panama. Second, the question of feasibility; there are no physical obstacles on this route that American engineering skill will not be able to overcome without serious difficulty, diffi-culty, or that will prevent the completion comple-tion of the canal within a reasoivable time and at a reasonable cost. This is virtually the unanimous testimony of the engineers who have investigated the matter mat-ter for the Government. The point which remains unsettled is the question of type, whether the canal shall be one of several locks above sea level, or at sea level with a single tide lock. On this point I bope-to lay before Congress at an early day the findings of the Advisory Board of American and European Engineers, that at my invitation in-vitation have been considering the subject, sub-ject, together with the report of the commission thereon; and such comments com-ments thereon or recommendations in reference thereto as may seem necessar The American people is pledged to the speediest poKslble construction of a canal adequate to meet the demands which the commerce of the world will make upon it. and I appeal most earnestly earnest-ly to the Congress to aid in the fulfillment ful-fillment of the pledge. Gratifying progress has been made during the past year, and especially during the past four months. The greater part of the necessary neces-sary preliminary work has been done. Actual work of excavation could be begun be-gun onlv on a limited scale till the canal sone was made a healthful place to live In and to work In. The Isthmus had to be sanitated first. This task has been so thoroughly accomplished that yellow fever has been virtually extirpated from the Isthmus and general health conditions condi-tions vastly Improved. The same methods which converted the Island of Cuba from a pest hole, which menaced the health of the world. Into a healthful filace of abode, have been applied on the sthmus with satisfactory results. There is no reason to doubt that when the plans for water supply, paving and sewerage of Panama and Colon and the large labor camps have been fully carried out, the Isthmus will be, for the tropics, an unusually healthy place of abode. The work is so far advanced now that the health of all those employed em-ployed In canal work Is as well guarded ' as It Is on similar work in this country and elsewhere. In addition to sanitating the Isthmus, satisfactory quarters are being provided for employees uud an adequate system of supplying them with wholesome food at reasonable prices has been created. Hospitals have been established and equippt-d that are without superiors of their kind anywhere. The country has thus been made fit to work in, and provision pro-vision has been made for the welfare and comfort of those who are to do the work. During the past year a large portion por-tion of the plant with which the work is to be done has been ordered. It is confidently con-fidently believed that by the middle oi me aporciftcninK yiur n nuiuuitMii iiu-portiou iiu-portiou of this plant will have been Installed In-stalled to enable us to resume the work of excavation on a large scale. NYhat Is needed now and without delay Is an appropriation by tho Congress to meet the current and accruing expenses ex-penses of the commission. The first aporupriation of $10.00it.000. out of the $135.-CuO.Oi'O $135.-CuO.Oi'O authorized by the Ppooner act. was made three years ago. It Is nearly exhausted. ex-hausted. There is barely enough of It remaining re-maining to carry the commission to the end Of the year. I'nless the Congress shall appropriate before that time all work must cease. To arrest progress for any length of time now. when matters are advancing so satisfactorily, would be deplorable. de-plorable. There will be no money with which to meet pay-roll obligations and none with which to meet bills coming due for materials and supplies; and there will be demoralization of the forces, here and on the Isthmus, now working so harmoniously harmon-iously and effectively, if there is delay in granting an emergency appropriation. Estimates Es-timates of the' amount necessary will be found In the accompanying reports of the Secretary of War and the commission. WORK OF DIPLOMACY' GREATLY INCREASED I recommend more adequate provision than has been made heretofore for the work of the Department of State. Within With-in a few years there has been a very great Increase In the amount and Importance of the work to be done by that department, both In Washington and abroad. This has been caused by the gr"it Increase of our foreign trade, the jrt-ast' of wealth among our people, which enables them to travel more generally than heretofore, the Increase of American capital which Is seeking Investment in foreign countries, and the growth of our power and weight In the councils of the civilizes world. There has been no corresponding increase of facilities for doing the work afforded to the department having charge of our foreign relations. Neither at home nor abroad Is there a sufficient working force to do the business properly. In many respects the system which was - adequate to the work of twenty-live, or even t"ti, years ago, is Inadequate now. and should be chanced. Our consular force should be classified, and appointments should be made to the several classes, with authority to the Ex-, ecutive to assign h members of each class to duty ut such posts as the Interests Inter-ests of the service require. Instead of the appointments bein made as at present to specified posts. There nhould be an adequate ade-quate Inspection service, so that the department de-partment may be able to Inform itself how the business of . each consulate is being done. Instead of depending upon casual private Information or rumor. The fee system should be entirely abolished, and a' due equivalent made In sal'iry to the officers of-ficers who now eke out their subsistence by n-wans of fee. Sufficient lirovision should be made for a clerical force In every consulate, com-tHtsed com-tHtsed entirely of Americans, instead of the Insufficient provision . now made, which comoels the employment of great numbers of citizens of forclyn countries, whore services can be obtained for less monev. At a larae part of our consu'ttes the office ouarters and the clerical force are inadequate to the performance of the onerous duties imposed by the recent provisions pro-visions of our Immigration laws, as well as by our Increasing trade. In many parts of the world te lack of suitable quarters for our Embassies, legations and consulates detracts from the resoect In which our officers oueht to be held, and seriously Impairs their weight and Influence. Influ-ence. Suitable provision should be. made Tor the expense of keeping our diplomatic officers more fully Informed of what is being done from day to day In the progress prog-ress of our diplomatic affairs with other countries. The lack of such Information, caused by Insufficient appropriations available for cable tolls nnd for clerical and mea.senger service, frequently puts our officers at a great disadvantage and detracts from their usefulness. The salary list should be readjusted. It does not now correspond either to the Importance of the service to be rendered and the degrees de-grees of nbilltv and experience required in the different positions, or to the differences differ-ences In the cost of living. In many! cases the salaries nre quite Inadequate. I THEODORE ROOSEVELT.. I The White House. December 5. 1905.