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Show THE PRESIDENT'S ANNUAL MESSAGE CAUSES OF THE PRESENT CIAL CONDITIONS IS FINAN- MADE THE CHIEF TOPIC. SUGGESTS REMEDIES FOR ILLS CONTROL OF CORPORATIONS AND TO PREVENT RAILROADS OVERCAPITALIZATION. Believes This Would Solve the Problem Together with Provision for More Elastic Currency Recommends Postal Banks and Asks for Legislation Along Many Lines. 8. President Dec. Washington. Roosevelt's annual message to congress is a voluminous document of nearly SO, 000 words, by far the longest message he has ever submitted to congress. The opening subject of the message is the financial condition of the country, and for which the president lays much of the blame upon unscrupulous stock peculators, and says: "In any large body of men, however, there are certain to be some who are dishonest, and If the conditions aro such that these men prosper or commit their misdeeds with impunity, their the example is a very evil thing forbusicommunity. Where these men are temness men of great sagacity and of perament both unscrupulous and reckless, and where the conditions are such that they act without supervision or control and at first without effective check from public opinion, they delude many innocent people into making or embarking in kinds of business that are really unsound. When the misdeeds of these successfully dishonest men are discovered, suffering comes not only upon them, but upon the innocent men whom they have misled. It is a painful awakening, whenever it occurs; and, naturally, when it does occur those who suffer are apt to forget that the longer it was deferred the more painful it would be. In the effort to punish the guilty it is both wise and proper to endeavor so far as possible to minimize the distress of those who have been misled by the guilty. Yet it is not possible to refrain because of such distress from triving to put an end to the misdeeds that are the ultimate causes of the suffering, and, as a means to this end, where possible to punish those responsible for them. There may be hon-s- t differences of opinion as to many governmental policies; but surely tothere the can be no such differences as need of unflinching perseverance in the war against successful dishonesty." He quotes at length from his message of last year in which he advocated federal control of corporations doing Interstate business, and believes the that in such control would be found and remedy for overcapitalization he believes stock speculation which have brought about the present financial conditions. He says: "Our steady aim should be by legislation, cautiously and carefully undertaken, but resolutely persevered in, to assert the sovereignty of the national government by affirmative action. "This is only in form an innovation. In substance it is merely a restoration; for from the earliest time such regulation of industrial activities has been recognized In the action of the lawmaking bodies; and all that I propose Is to meet the changed conditions in such manner as will prevent the commonwealth abdicating the power it has always possessed, not only in this country, but also in England before and since this country became a separate nation. Federal Control of Railroads lu Favored. "No small part of the trouble that we have comes from carrying to an extreme the national virtue of of independence in initiative and action. It is wise to conserve this virtue and to provide for Its fullest exercise, compatible with seeing that liberty does not become a liberty to wrong others. Unfortunately, this is the kind of liberty that the lack of all effective regulation inevitably breeds. The founders of the constitution provided that the national government should have complete and sole control There was of interstate commerce. then practically no Interstate business save such as was conducted by water, and this the national government at once proceeded to regulate in thoroughgoing and effective fashion. Conditions have now so wholly changed that the interstate commerce by water is insignificant compared with the amount that goes by land, and almost all big business concerns are now engaged in Interstate commerce. As a result, It can be but partially and Imperfectly controlled or regulated by the action of any one of the several states; such action inevitably tending to be either too drastic' or else too lax, and in either case lneneetive ior purposes 01 justice. Only the national government can in thoroughgoing fashion exercise the needed control, "his does not mean that there should be any extension of federal authority, for such authority already exists under the constitution in form; amplest and most but It does mean that there should be an extension of federal activity. This It Is Is not advocating centralization. merely looking facts In the fare, nnd realizing that centralization In business has already come and can not be avoided or undone, and that the public at cerlarge can only protect Itself from centain evil effects of this business tralization by providing better methods for the exercise of control through the authority already centralized In the national government by the constltti tlon Itself. There must be no halt In the healthy constructive course of action which this nation has elected to pursue, and MM steadily pursued, during the last six years, as shown both In the legislation of the congress nnd the administration of the law by the department of Jnstlee. The most vital need Is In connection with the railroads As to these. In my Judgment there should now Hi" either a national Incorporation act or a law licensing railway companies to engage In Interstate commerce upon certain conditions. The law should be so framed as to give to the Inte tate commerce commission power to p s upon the future Issue of securities, while ample means should be provided to enable the commission, whenever In Its Judgment It Is necessary, to make a physical valuation of any railroad As I stated In my message to the congress a year sgn. railroads should bs given power to enter Into agreebements, subjec t to these ing made public .a sslOliM 1U1I and 10 e, g the a msent et rt.4 meftUl remmerc commission being nr. obtained. I'ntil the national assumes government proper control of interstate commerce, in the exercise of tile authority it already possesses, it will be Impossible either to give to or to get from the railroads full justice. The railroads and all other great corpora tions will do well to recognize that tl Is control must come; the only question is as to what governmental body can most wisely exercise it. The courts will determine the limits within which the federal authority can exercise It, and there will atill rem. .in ample work within each state for the railway commission of that state and the national interstate commerce commission will work In harmony with the several state commissions, each within its own province, to achieve the desired end. Control of Interstate Buitlursii Concerns t rged. "Moreover, In my Judgment there should be additional legislation looking to the proper control of the great business concerns engaged in interstate business, this control to be exercised for their own benefit and prosperity no less than for the protection of Investors and of the general public. As I have repeatedly said in messages to congress and elsewhere, experience has definitely shown not merely the unwisdom but the futility of endeavoring to put a stop to all business combinations. Modern industrial conditions are such that combination is not only necessary but inevitable. It is so in the world of business just as it is so in the world of labor, and it is as idle to desire to put an end to all corporations, to all big combinations of capital, as to desire to put an end to combinations of labor. Corporation and labor union alike have come to stay. Each if properly managed is a source of good and not evil. Whenever in either there is evil, it should be promptly held to account; but it should receive hearty encouragement so long as it is properly It is profoundly immoral to managed. put or keep on the statute books a law, nominally in the interest of public morality, that really puts a premium upon public immorality, by undertaking to forbid honest men from doing what must be done under modern business conditions, so that the law itself provides that its own infraction must be the condition precedent upon business success. To aim at the accomplishment of too much usually means the accomplishment of too little, and often the doing of positive damage. "The antitrust law should not be repealed; but it should be made both more efficient and more in harmony with actual conditions. It should be so amended as to forbid only the kind of cembination which does harm to the general public, such amendment to be accompanied by, or to be an incident of, a grant of supervisory power to the government over these big corporations engaged in interstate business. This should be accompanied by provision for the compulsory publication of accounts and the subjection of books and papers to the inspection of the government officials. A beginning has already been made for such supervision by the establishment of the bureau of corporations. "The antitrust law sliould not prohibit combinations that do no injustice to the public, still less those the existence of which is on the whole of benefit to the public. But even if this feature of the law were abolished, there would remain as an equally objectionable feature the difficulty and delay now incident to its enforcement. The government must now submit to irksome and repeated delays before obtaining a final decision of the courts upon proceedings instituted, and teven a favorable decree may mean an empty viefbry. Moreover, to attempt to control these corporations by lawsuits means to impose upon both the department of justice and the courts an impossible burden; it Is not feasible to carry on more than a limited number of such suits. Such a law to be really effective must of course be administered by an executive body, and not merely by means of lawsuits. The design should be to prevent the abuses incident to the creaof tion unhealthy and Improper combinations, instead of waiting until they are in existence and then attempting to destroy them by civil or criminal proceedings. Investing Public Should Be Amply Safeguarded. "The congress has the power to charter corporations to engage in interstate and foreign commerce, and a general law can be enacted under the provisions of which existing corporations 'could take out federal charters and new federal corporations could be created. An essential provision of such a law should be a method of predetermining by some federal board or commission whether the applicant for a federal charter was an association or combination within the restrictions of the Provision should also be federal law. made for complete publicity in all matters affecting the public and complete protection to the investing public and the shareholders In the matter of Issuing corporate securities. If an incorporation law Is not deemed advisable, a license act for big interstate corporations might be enacted; or a combination of the two might be tried. The supervision established might he analogous to that now exercised over national banks. At least, the antitrust act should be supplemented by specific prohibitions of the methods which experience has shown have been of most service in enabling monopolistic combinations to crush out competition. The real owners of a corporation should be compelled to do business In their own name. The right to hold stock In other corporations Should heareafter be denied to interstate corporations, unless on approval by the proper government officials, and a prerequisite to such approval should be the listing with th government of all owners and Stockholders, both by the corporation owning such stock and by the corporations in which such stock is owned. "To confer upon the national government, in connection with the amendment I advocate In the antitrust law. power of supervision over big business concerns engaged In Interstate commerce, would benefit them as It has benefited the naIn the recent business tional banks. crisis It Is noteworthy that the Institutions which failed were Institutions which were not under the supervision and control of the national government. Those which were under national control stood the test. "National control of the kind above advocated would be to the benefit of every railway. From the standpoint of the public there Is need for additional tracks, adillonal terminals, and Improvements In the actual handling of the railroads, and all this as rapidly as possible. Ample, r rife, and speedy transportation facilities are even more neces-sur- y than cheap transportation. Therefore, there Is need for the Investment of money which will provide for all these things while at the same time M curing as fas as la possible better wages and shorter hours for their employes. Therefore, while there must be Just and reasonable regulation of rate, we should be the first to protest against any arbitrary and unthinking movement to cut them down without the fullest and most careconful consideration of all Interests cerned and of the actual needs of the situation. Only a special body of men acting for the national government under authority conferred upon It by the congress Is competent to puss Judgment on audi a matter, t. renter Khistlcltj In d Ciirrrnr la I red. The president quotes extensively from his last message In dealing with the dl- - rect subject of .urrency legislation, and says: "I again urge on the congress the need of immediate attention to this matter. We need a greater elasticity In our currency; provided, of course, that we recognize the even greater need of a saf" and secure currency. There must always be the most rigid examination by the national authorities. Provision should be The made for an emergency currency. emergency Issue should, of course, be made with an effective guaranty, and upon conditions carefully prescribed by the government. Such emergency issue must be based on adequate securities approved by the government, and must be Issued under a heavy tax. This would permit currency being Issued when the demand for it was urgent, while securing its retirement as the demand fell off. It is worth Investigating to determine whether officers and directors of national banks should ever be allowed to loan to themselves. Trust companies should be subject to the same supervision as banks: legislation to this effect sliould be enacted for the District of Columbia and the territories. "Yet we must also remember that even the wisest legislation on the subject can No only accomplish a certain amount. legislation can by any possibility guarantee the business community against the results of speculative folly any more than it can guarantee an individual against the results of his extravagance. When an in- dividual mortgages his house to buy an automobile he invites disaster; and when wealthy men, or men who pose as such, or are unscrupulously or foolishly eager to become such, indulge In reckless speculationespecially If it is accompanied by dishonesty they jeopardize not only their own future but the future of all their Infor they expose nocent the whole business community to panic and distress." He advises against any general tariff legislation this session of congress, and fellow-citizen- s, says: "In a country of such phenomenal growth as ours It is probably well that every dozen years or so the tariff laws should be carefully scrutinized so as to see that no excessive or Improper benefits are conferred thereby, that proper la provided, revenue and that our There trade is encouraged. foreign as a minimum be must always will not only ala tariff which low for the collection of an ample revenue but which will at least make good the difference in cost of production here and abroad: that Is, the difference in the labor cost here and abroad, for the must ever of the be a cardinal point of American policy. The question should be approached purely from a business standpoint; both the time and the manner of the change being such as to arouse the minimum of agitation and disturbance 1n the business world, and to give the least play for selfish and factional motives. The sole consideration should be to see that the sum total of changes represent the public good. This means that the subject cannot with wisdom be dealt with In the year preceding a presidential election, because as a matter of fact experience has conclusively shown that at such a time it is Impossible to get men to treat it from the standpoint of the public good. In my judgment the wise time to deal with the matter Is Immediately after such elecwell-bein- g wage-work- tion." for the repeal of the tariff on He paper and wood pulp. He reviews and enlarges upon his prefor the enactvious recommendations ment of federal inheritance and income tax laws. Attention is called to the prosecution of wealthy offenders against the national laws, and in this connection he asks that the laws under which these prosecutions are brought be strengthened and made more definite. The Use and the Abuse of Injunctions. "Instances of abuse in the granting of Injunctions in labor disputes continue to occur, and the resentment in the minds of those who feel that their rights are being invaded and their liberty of action and of speech unwarrantably restrained continues to grow. Much of the attack on the use of the process of injunction Is wholly without warrant; but I am constrained to express the belief that for some of it there is warrant. This question is becoming more and more of prime importance, and unless the courts will themselves deal with It in effective manner, it is certain ultimately to demand some form of legislative aotion. It would be most unfortunate for our social welfare if we should permit many honest and citizens to feel that they had just cause for regarding our courts with hostility. I earnestly commend to the attention of the congress this matter, so that some way may be devised which will limit the abuse of injunctions and protect those rights which from time to time it unwarrantably invades. Moreover, discontent is often expressed with the use of the process of Injunction by the courts, not only In labor disputes, but where state laws are concerned. I refrain from discussion of this question as I am informed that it will soon receive the consideration of the supreme court." Of other legislation In the interest of labor he favors federal inspection of rail- roads; providing limited but definite for accidents to all workmen employed In any way by the government, and says: "The constitutionality of the employers' liability act passed by the preceding congress has been carried before the courts. In two Jurisdictions the law has been declared unconstitutional, and In three Jurisdictions Its constitutionality has been affirmed. The question has been carried to toe supreme court, the case has been heard by that tribunal, and a decision Is expected at an early date. In the event tint the court should affirm the constitutionality of the act, I urge further legislation along the lines advocated In my message to the preceding congress. The practice of putting the entire burden of loss of life or limb upon the victim or tne victim's family is a form of social Injustice in which the United States stands In unenviable prominence. In both our federal and our state legislation we have. with few exceptions, gone scarcely farther than the repeal of the principle of the old Jaw of Ilabtl- Ity. and In some of our states even this slight modification of a complete out- grown principle has not yet been seg fellow-serva- cured." favors the extension of the elght-hM- r law to all departments of the government, and to all work carried on by He urges legislation the government. for the compulsory Investigation of Industrial disputes, and says: "The m d for some provision for such was forcibly Illustrated investigation during the past summer. A strike .r tehgrapli operators seriously Interfered causwith telegraphic communication, ing great damage to business Interests and sec ions Inconvenience to tic general public. Appeals were made to me from many parts of the country, from city councils, from boards of trade, from chambers of commerce, and from labor organizations, urging thnt steps to terminate Ihe strike. be taken Everything that could with any propriety be done by a representative of the government was done without avail, end for weeks the public stooel by and suffi'red without recourse of any kind. Had the machinery existed and had there been authority for compulsory Investigation of the dispute, the public would have been placed in possession of the merits of the controversy, and have public opinion would probably bout prompt ntljusl rnent. brought "It la idle to hold that 'vlthout good Me nils aueh as child labor, as the of women, as the failure to protect employes from loss of life or ;.mb, can be effectively reached aay more than the evils o' rebates and can be reached Without geod laws. To fall to stop these practices by legislation means to force uencst men into them, because otherwise the .(.shonest who surely will take advunt ige of them will have everything their own way. If the states will correct these evils, well and good; but the nation must stand ready to aid them. Island Waterwaj hicnia Should Hr Deev loped, "The conservation of our national and their proper use constitute tae fundamental problem which underlies almost every other problem of our national life. We must maintain for laws oer-workin- g stock-waterin- g our civilization the adequate material basis without which that civilization cannot exist. We must show foresight, we must look ahead. As a nation we not only enjoy a wonderful measure of present prosperity but If this prosperity is used aright it is an earnest of future success such as no other nation will have. The reward of foresight foi this nation is great and easily foretold. Hut there must be the look ahead, there must he a realization of the fact that to waste. t,o destroy, our natural resources, to skin and exhaust the land lastead of using it so as to increase its usefulness, will result In undermining ia the days of our children the very prosperity which we ought by right to hand down to them amplified and developed. For the last few years, through several agencies, the government has been endeavoring to get our people to look ahead and to substitute a planned and orderly development of our resources in place of a haphazard striving for immediate profit. Our great as river systems should be developed national water highways; the Mississippi, with Its tributaries, standing first In importance, and the Columbia second, although there are many others of importance on the Pacific and Atlantic and the gulf slopes. The national government should undertake tills work, and I hope a beginning will be made in the present congress; and the greatest of all our rivers, the Mississippi, should receive especial attention. From the Great Ijikes to the mouth of the Mississippi there should be a deep waterway, with deep waterways leading from It to the east and the west. Such waterway would practically mean the extension of our coast line into the very heart of our country. It would be of incalculable benefit to our people. If begun at once It can be carried through in time appreciably to relieve the congestion of our great freight-carryin- g lines of railroads. The work should be systematically and continuously carried forward in accordance with some plan. The main streams should be improved to the highest point of efficiency before the improvement of the branches is attempted; and the work should be kept free from every taint of recklessness or Jobbery." Attention is called to the work of Irrigation and reclamation of government lands. In the same connection he asks for a revision of the public land laws along the lines proposed by the Believes the public lands commission. government should increase its efforts to conserve our forests and should Increase by purchase the existing forest preserves. On the subject of the natural resources of the nation he says: "In the eastern United States the mineral fuels have already passed into the hands of large private owners, and those of the west are rapidly following, it is obvious that these fuels should be conserved and not wasted, and it would be well to protect the people against unjust and extortionate prices, so far as tnai can sun oe aone. wnm nas been accomplished in the great oil fields of the Indian Territory by the action of the administration offers a striking example of the good results of such a policy. In my judgment the erovernment should have the right to keep the fee of the coal, oil and gas fields in its own possession and to lease them under the rights to develop proper regulations; or else, if the congress will not adopt this method, the coal deposits should be sold under limitations, to conserve them as public utilities, the right to mine coal being separated from the title to the soil. The regulations should permit coal lands to be worked in sufficient quantity by the several corporations. The present limitations have been absurd, excessive, and serve no useful purpose, and often render it necessary that there should be either fraud er else abandonment of the work of getting out the coal." Progress of the Work tin the Faniiiim Canal. "Work on the Panama canal Is proceeding In a highly satisfactory manner. In March the total excavation In the Culebra Cut. where effort was chiefly concentrated, was 815,270 In April this was increased to s79,527 cubic yards. There was a considerable decrease !n the output for May and June owing partly to the ad- ent of the rainy season and partly to temporary trouble with the steam shovel men over the question of wages. This trouble was settled satisfactorily to all parties and In July the total excavation advanced materially and in August the grand total from all points In the canal prism by steam shovels and dredges exceeded all previous Tilted States records, reaching 1,274,-40- 4 cubic yards. In September this record was eclipsed and a total of 1,517,-12 cubic yards was removed. Of this amount 1.481.307 cubic yards were from the canal prism and 88.105 cubic yards were from accessory works. These results were achieved In the rainy season with a rainfall In August of 11. 89 mchea and In September of 11 65 Inches. Finally, In October, the record was gain eclipsed, the total excavation being 1.888.729 cubic yards; a truly extraordinary record, especially In view of the heavy rainfall, which was 17.1 inches. In fact, experience during the last two rainy aeasons demonstrates that the rains are a less serious to progress than has hitherto I" en supposed. "Work on the locks and dams at ' Uun, which began actively In March last, has advanced so far that It la on the tlought that masonry work leeks can be begun within 1". months. "Least winter bids were requested and received for doing the work of canal onstruction by contract. None of them was found to be satisfactory and all were rejected. It is the unanimous iniyn of the present commission that the Work can be done bi tter, more i.eaply, and more quickly by the gov- nimtcnt than by private contractors, olly 80 per rent, of the entire plant ne eded; for construction has bei n pur- .tsed or contracted fer. machine have been erected and equipped for making all needel repairs to the plant! many thousands of employes o r n ha ve been se cured an zition has been perfected; a recruiting vstem Is In operation which Is capable of furnishing more labor than can he used advantageously; are employes well sheltered and will fed; salaries paid are satisfactory, and the wrk Is not only going forward smoothly, but it la producing results far In advance n! the moat sanguine anticipations, t'nder these favorable conditions, a In the method cf prosecuting change the work would be unwise and unjustifiable, for it would irmvitubly disorgan cubic-yard- 4 ob-tac- le l t i ize existing en, .dinnna progress. and increase the cost and lengthen the time of comple ting the canal I'o.t Kreodiiiiriiils .1 lailsgi Hanks. "I commend to the favorable consideration of the congress a postal savings bank system, as recommended by the postmaste r general. The primary object is to encourage umong our people economy and thrift and by the postal savings banks to give them an opportunity to husoand their resources, particularly those who have nut the facilities ut band for depositing their money In savings banks. Viewed, however, from the expe rience of the past few weeks, it is evident that the advantages of such an institution are still more Timid depositors have withdrawn their savings fe the time being from national banks; Individuals have boarded their cash and the worklugmen their earnings; all of which money has been withdrawn and kept in hiding or in the safe deposit box to the detriment of prosperity. Through the agency of the postal savings banks such money would lie restored to the channels of trade, to the mutual benefit of capital and labor "I further commend to the congress the consideration of the postmaster use-o- general's recommendation for an extension of the parcel post, especially on 5 the rural routes. There are now rural routes, serving nearly 15.000,-00people who do not have the advantages of the Inhabitants of cities in obtaining their supplies. These recommendations have been drawn up to benefit the farmer and the country storekeeper; otherwise, I should not favor them, for I believe that it is good policy fpr our government to do everything possible to aid the small town and the country district. It is desirable' that the country merchant should not be crushed out. "The fourth-clas- s postmasters' convention has passed a very strong resolution in favor of placing the fourth-clas- s e postmasters under the law. The administration has already put Into effect the policy of repostfusing to remove any fourth-clas- s masters save for reasons connected with the good of the service; and It is endeavoring so far as possible to remove them from the domain of partisan politics. It would be a most desirable thing to put the fourth-clas- s postmasters in the classified service." He renews his recommendations of last year in regard to Alaska; calls attention to the admission of Oklahoma as a state; urges tlje importance of providing shipping relief for Hawaii; asks for citizenship for Porto Ilicans, and of submission promises Secretary Taft's report cm Philippines when that official returns. He asks for the creation of a bureau of mines; recommends the providing of funds for preserving The Hermitage, the home of Andrew Jackson; and the erection of a naval monument at Vicksburg. Corporation Contributions (o Compnlvrn lixpenses. 38,-21- 0 civil-servic- "Under our form of government voting is not merely a right but a duty, and, moreover, a fundamental and necessary duty if a man is to be a good citizen. It is well to provide that corporations shall not contribute to presidential or national campaigns, and furthermore to prbvide for the publication of both contributions and expenditures. There is, however, alwuyB danger in laws of this which from their very nature are kind, difficult of enforcement; the danger being lest they be obeyed only by the honest, and disobeyed by the unscrupulous, so as to act only as a penalty upon honest men. Moreover, no such law would hamper an Unscrupulous man of unlimited means from buying his own way Into office. There Is a very radical measure which would, I believe, work a substantia! improvement in our system of conducting a campaign, although I am well aware that it will take some time for people to so familiarize themselves with such a proposal as to be willing to consider its adoption. The need for collecting large campaign funds would vanish It congress provided an appropriation for the proper and legitimate expenses of each of the great national parties, an appropriation ample enough to meet the necessity for thorough organization and machinery, which requires a large expenditure of money. Then the stipulation should be made that no party receiving campaign funds from the treasury should accept more than a fixed amount from any Individual subscriber or donor; and the necessary publicity for receipts and expenditures could without difficulty ice provided." Wants Improvement In the :)cenn Mull Service. "I call your especial attention to the unsatisfactory condition of our foreign mall service, which, because of the lack of merlcan steamship lines, Is now largely done through foreign lines, and which, particularly so far as South and Central America are concerned. Is done In a manner which constitutes a serious barrier to the extensions of our commerce. "The time has come. In my Judgment, to set to work seriously to make our ocean mall service correspond more losely with our recent commercial and A beginning was political development. made by the ocean mall act of March 3. iS91, but even at that time the act was cnown to be Inadequate In various parSince' that time events have ticulars. moved rapidly In our history. We have and acquired Hawaii, the Philippines, lesser Islands In the Pacific. We are steadily prosecuting the great work of uniting at the Isthmus the waters of the Atlantic and the Pacific. To a greater extent than seemed probably even a we dozen years ago may look to an American future on the sea worthy of ihe tradition of our past. As the first tep in that direction, and the step most feasible at the present time, 1 recommend 'he extension of the ocean mall act of IS91. That act has stood for some years free from successful criticism of Its prinand purpose. It was based on theociple ries of the obligations of a great maritime nation. Undisputed In our own land and followed by other nations since the Rrlcfly beginning of sienm navigation. those theories are, that It Is the duty of so as far a, power practicable to carry Its ocean malls under Its own ocean fast the that steamships and flag; their crews, required for such mall servto the sea ice, are valuable auxiliaries the Furthermore, power of a nation. h construction of suc steamships Insures efficient In an condition the maintenance Of the shipyards In which our battleships must be built. "The expenditure of public money for the performance of such necessary functions of government Is certainly warranted, nor Is It nc' cseary to dwell upon the Incidental benefits to our foreign commerce, to the shipbuilding Industry, and to ship owning and navigation which will accompany the dlsctuirge of these urgent public duties, though they, too, should have weight." ks Increase In Pay mid Men. for rnij The president devotes much space to the affairs of Ihe army, and strongly urges that our regular military organization be kept up to the highest possible standard of cftViene y. and says: "The corps should be much greater than lie needs of our regular army In war. Yet at present It Is smaller than the needs of the service demand even In peace. The Hpunlsh war occurred less than ten years ago. The chief loss we suffered In It was by disease among the regiments which never At the moment the left Ihe country. nalieu seemed deeply Impressed by this first-clas- s MM ract; jrt tanning!., it has already b forgotten, for not the slightest e"- has been made to prepare a medic-i- . corps of sufficient size to prevent the repethlon of the same disaster on a. much larger scale If we should ever t engageei In a serious conflict. "Rut the medical department Is not tha only department for which Increased provision shut hi be made. The rate of pay for the officers should oe greatly increased; there la no higher type of citizen than the American regular officer, and he should have a fair reward for his admirable work. There should be a relatively even greater ln reasc In the pay for the enlisted men. An especial provision should be made for establishing grades equivalent to those of warrant officers in the navy, which should be open to the enlisted men who serve sufficiently long and who do their work well. Inducements should be offered sufficient to encourage really good men to make the army a life occupation. The prime needs of our present army is to secure and retain competent noncommissioned officers. This difficulty rests fundamentally on the question of pay The noncommissioned officer does not correspond with an unskilled laborer; he corresponds to the best type of skilled workman or to the subordinate official In civil Institutions. Wages have greatly increased in outside occupations In the last 40 years and the pay of the soldier, like the pay of the officers, should be proportionately The first Increased. sergeant of a company, if a good man, must be one of such executive and administrative ability, and such knowledge of his trade, as to be worth far more than we at present pay him. The same is true of the regimental sergeant major. These men should be men who had fully re solved to make the army a life occupation and they should be able to look to ample reward; while only men properly qualified should be given a chance to secure these final rewards. The Increase over the present pay need not be great In the lower glades for the first one or two enlistments, but the Increase should be marked for the noncommissioned officers of the upper grades whe serve long enough to make It evident that they Intend to stay permanently In the army, while additional pay should be given for high qualifications In target practice. "Among the officers there should be severe examinations to weed out tha unfit up to the grade of major. From for-wu- rd that position on appointments should by selection and It should be understood that a man of merely capacity could never get beyond the position of major, while every man who serves In any grade a certain length of time prior to promotion to the next grade, without getting tha promotion to the next grade should be be solely e forthwith retired." President Sees Need of I.nrgely Increased Navy. The president asks for a continuous Increase In the navy, and asks present for four CongreSl for appropriations new battleships, and says: "We need always to remember that In time of war the navy Is not to be Used to defend harbors and cities; we should perfect our system of coast fortifications. The only efficient use for the navy Is for offense. The only way In which It can efficiently protect oOr own coast against the possible action of a foreign navy Is by destroying that foreign navy. For defense against a hostile fleet which actually attack them, the coast cities must depend upon their forts, mines, torpedoes, submarines and torpedo boats and destroyers. All of these together are efficient for defensive purposes, but they In no way supply the place of a thoroughly efficient navy capable of acting on the offensive; for parrying never yet It can only he won by won a fight. g hard lilting, and an aggressive navy alone can do this hard hitting of the offensive type. But the forts and the like are necessary so that the navy may be footloose. In time of war there Is sure to be demand, under pressure of fright, for the ships to be scattered so as to defend all kind of ports, u b r penalty of terrible disaster, this demand must be refused. The ships must be kept together, nnd their objective made the enemies' fleet. If fortifications are sufficiently strong, no modern navy will venture to attack them, so long as the foe has in existence a hostile navy of anything like the same size or efficiency. But unless there exists such a navy then the fortifications are powerless by themselves to secure the victory. For of course the mere deficiency means that any resolute enemy can at his leisure combine all his forces upon one point with the certainty that he can take It. Civea ltcnsons for Despatch Of Fleet to (he Pnelne. "Until our battle fleet Is much larger than at present It should never be split Into detachments so far apart that they could not In event of emergency ho speedily united. Our coast line Is At-on the Pacific just as much as on the lantic. The interests of California, Oregon and Washington are as emphatically the Interests of the whole union as those of Maine and New York, of Louisiana and Texas. The battle fleet should now and then be moved to the Pacific. Just as at other times It should be kept In the Atlantic. When the Isthmian canal Is built the transit Of the battle fleet from one ocean to easy. the other will be comparatively Until It Is built I earnestly hope that the battle fleet will he thus shifted between the two oceans every year or two. The marksmanship on all our ships has improved phenomenally during the last Ave years. Until within the last two or three years It was not possible to train a battle fleet in squadron maneuvers under service conditions, and it is only during these last two or three years that the training under these conditions has become really efAnother nnd most necessary fective. stride In advance Is now being taken, 'ihe battle fleet is about starting by the Straits of Magellan to visit the Sixteen battleships are Pacific coast. going under the commnnd of Rear Admiral Evans. while eight armored cruisers and two other battleships will meet him at San Francisco, whither ce rtain torpedo destroyers are also going. No fleet of such size has ever made such a voyage, and It will be of very great educational use to all engaged in It. The only way by which to teach officers and men how to handle the fleet so ns to meet every possible strain and emergency In time of war la to have them practice under similar conditions In time of peaoCe Moreover, the only way to And out our actual needs is to perform In time of peace whatever maneuvers might be necessary In time of war. Afte r wnr is declared It Is too late to find out the needs; that means to invite disaster. The trip to the PaclAc will show what some of our needs are and will enable The proper til to provide for them. nrn his duty place for an officer to is at sea. and the only way In which a navy can ever be made efficient Is by practice at sea, under all the conditions which would have to he met If war existed." He reviews the work areotm.., ihed by the second peace confe rence at Tne Hague; notes the Improvement of affairs In Cuba, and the preparations being made to reestablish the government of the Island republic; asks permission to cancel the remainder of China's Indemnity obligation to us and reviews the (fleet of Secretary Hoot's visit to Mexico sea-coa- st sea-goin- THBODOKC ItOOSKVELT. The White House Decembe r t, 1907. |
