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Show WW FALL ' Kfnewspapers (Hf"jn Address to New jK .Business Men, Goes 7hio figures. ?,T0 CONGRESS T0 13E ECONOMICAL IVIiy Panama Canal Is jfico as Much as f -Estimated. k f; K, N. J- Fch. 1!3. President !jxd his prepared arldrcss he-Jotvarlc he-Jotvarlc board of trade tonight ilonate statement of his fecl-bclng fecl-bclng :i year In tho White ttli hrouBht the nudlcnee to its cheers. He toolc occasion to Sheets to the newspapers, saying say-ing home to Washington ntendod to say anything of my llrst year In Uio said lite president, "but Dvurnor Murphy has so I cannot refrain from a ir two. told hlni I wanted to ar ago. I am not certain v. He said something papers. When the news-ii news-ii to criticism and some-hammering some-hammering your ndmin-ic ndmin-ic it sometimes with cousin cou-sin and sometimes with iriship. it is hard to ovcr-j ovcr-j that perhaps you ought i Little Hope, ill that, to have received ilch I did today gives a perhaps the newspapers heir pockets all of public t, perhaps, tho American : to see through some-ltJs-m. something of the nothing of the hvpoorlsy. real sympathy with the a considerable responsl-the responsl-the best he can. it sometimes demonstra-ding. demonstra-ding. but I am going to i'c said, that your rccop-lonichl rccop-lonichl is sincere, and 7 ;o that flattering unction go back to Washington ?wspapers. efore. that when 1 eamo as In a frame of mind ur welcome as balm to caiTy away a sense of ill never depart from my t. the first chief c.vccu-. c.vccu-. to visit .Newark, today jf the lurgest and most icr audiences he has met . The banquet was given board of trade, and more ?rs and guests attended, ft. after acknowledging being afforded the oppor-to oppor-to the business men of eptcd the invitation to irned that I was to have being a fellow guest with itor L,odgc, and that he p the question of high m that has occupied the the people and has in -Igation Into its cause by the United States and state- legislatures. For ! evening, I should like tteuLlon to a more prosv question of government jvernment revenues, and nomles and what cxpen-ntlal cxpen-ntlal at whatever Jurden Budget System, place, it should be said ten so far from exhaust -s of national taxation and 3 have been collected so JUch an amount, that we he past to adopt a budget s practiced in every other y Dy ;t budget system Mit-c of proposed expend I -I'ts to some one authority hleh. after determining les will bo. must also dc-expenditures dc-expenditures ran be, ur1 without a dellclt. ilative body, which proline pro-line and authorizes the nie was when the com and inraiif', on the one cd the revenues of the provided the laws for id. on the other hand, de-ppropria de-ppropria lions and nicaa-IHurc?. nicaa-IHurc?. .- in Our Plan. Ji.any yean? In our congress lotions iiave been divided. The joto, provided by the -ays and MMnlttce of the house and the ominlttci' of the sennte and sub-o sub-o their rrsppctlve houses, while Wrlatlojis arc made by tho ap- Kmpns committees of the house- and fl. hi too many instances, with-?nt with-?nt reference to the revenues o lie aallablc to meet the LdotiK. jthr0 n;,nP'?"?d thai. In many Jffio paft i do revi-iiims hav In-orc In-orc rapidly than the expondi-l',ere expondi-l',ere nas been a surplus. In iJ'ViD,nBl',V bill, which c.ir-Wm c.ir-Wm 1S3B to lim. Uie approprla-KniftL approprla-KniftL Jh0 expenditures by PO.000,000. but Hie surplus look 4 ,??l,r,y y?r. so lhal in IfiOS g ucflclt, and In MO'j we had a Kjafcea Now Tariff Bill. JuIhIIomh of the secretary of JiV.ir 1,m present year Hhowed fij1.1 . likely to be Jo 1,000.-EJl 1,000.-EJl to ordinary receipts and ??IJ nrn glad 10 say that Ihe the new tariff bill has boon Productive of income that Em? it"' '"rreni year is likely lrably reduced. In addition, ine ordinary defirlt we have l"n?n" oannl expendlturn for (Provision of the ?;5S,OUO.00O, or, gumatorl to b- a total deflctt IK'f. "nv reduced eoniildera-jieuer eoniildera-jieuer ra(cs unfjei. tiJC proi-ent V'f expendltui-es on the te 2 '" proceeds of bond. Wfe'mM ,?no"Pll cash in the .mect th.? dellelt In our ordln-KiL ordln-KiL r 1,10 l"rrent yii-c, and Bnlfhr "reiidlturer. on the l'nn- WSlior ".M'''.')'J0; or. If the P.i,1B. of tbf now K BXXVU may bo IncrcaHo.j to Vorof;A,"r 0,hor ad. If the ni wiiW "nlrprliifrt In tho rlvr Wkzn K.iil'l i0T conslrurtlon ! Wll'tvl hu,"h5 under a building W fl"rph7 U co"" or ejtccea pying for tnc oanai. aCor"!!!''1 f",m,t wls'loni of B7iit onr-k- I hl Is " work Kllnt Z --"d It soonifi Bcncro,.Ll Provide in W S t lno;,a for posterity KTl'" f0'j t.yl. at least, by 1,1 bllc-li a t niic-lpk. jual In H TAFT TAKES FALL H OUT Ofl NEWSPAPERS Hj Continued from Pace One. the case like the Panama canal, but it H seems to be appropriate to adopt It with H reference to other projects. 1 refer to H those definite projects that have been H agreed in respect to the Improvement of H our Inland waterways. I would not begin H the expenditure of money on any project Ihe wisdom of which ha i not been fully vindicated, but having determined to put through ' the Improve niu:it, it ought not j to be done by fits and starts, but it ought H to be done as one dob. 1 "This statement has peculiar appllca- linn to the river and harbor bill, which H now lias passed the house. Tho Ohio H Improvement, to cost $03,000,000, Is en-H en-H tcrcd upon and an appropriation made for H its continuation. The same thing Is true of the improvement of tho Mfssisslpp H from St. Paul to St. Louis and tho sams H river from St. Louis to Cairo, and of the H Missouri river from Kansas City to St. H Louis. These projects seem to be war- ranted by the traffic in sight. H Errors, in Estimates. H "While I nm dealing with the Panama H canal, however, I ought to refer to the discrepancy between estimated cost of ,( t e enterprise and the actual' cost, as we arc now able to tlx It with considerable accuracy within four or five years of Its tonplotlon. "The estimated cost of the engineering and construction of the canal was $139.-700,000. $139.-700,000. Its actual cost for engineering and construction will be $297,000,000, an increase of $157,300,000. This Increase is to be explained, first, by the great ap-H ap-H preciatlon in the cost of labor and mnte-rial mnte-rial by the time when the estimate was made in 1900 and tho time when the work was done between 1904 and 1909; second, by Ihe fact that Ihe canal has been on-largt-d substantially beyond tho original dimensions estimated for. Changes in Flans. H "You know that the great work of cx- cavation in the canal is called Ihe ulo-bra ulo-bra cut. This Is where the backbone of the continent reduced to lowest height is cut. and through five miles of that cut, which is, about nine miles long, for pur-poses pur-poses of economy, the original plan and estimate rriade Ihe bottom of the canal In the frock 200 feet wide. This would not enable two of the largest steumers to pass each other with safety. "To avoid delay, it has been thought wise to Increase the bottom width from 200 to 300 feet In a. place and in mate-rial mate-rial that, of course, makes the change most expensive. So, too, that the canal may be adapted to the largest size of steamers, the dimensions of the six locks have been Increased from 900 feet to 1000 feet usuable length, and 110 feet width. This was done at the instance of the navy department, which predicts vesselb of a beam exceeding 100 feet. H More Changes Necessary. H "It has also been found necessary lo change the character of the canal on the Pacific side from a. lake with a dam and H locks on the shore of the bay of Pana-ma Pana-ma to a sea-level canal running four miles inland, so as to remove the locks four miles Inward and beyond the pos-siblc pos-siblc reach of the guns of an enemy in Panama bay. These changes also have H added considerably to the cost. "Again, It has been found wise to cn- large the canal Into a lake or basin at tho foot of the Gatun locks, and In what- ever variation in the plans which expcrl- ence In the construction has demonstrat-1 demonstrat-1 ed the necessity for, the more than H doubling the cost of construction and cn- gincerlng has been nccessarv. In nddi-tlcn nddi-tlcn to this, the cost of sanitation and government, without which tho canal could not have been built, will be about $73,000,000, and will carry tho entire cost of the canal to $373,000,000. H Expects Good Surplus, H "To return to the state of finances, I H repeat that the surplus for the year end-H end-H Ing June 30, 1911, and which we are now H making provision for in this congress by H appropriation, will be about $35,000,000, if 1 the estimates made by the departments t and transmitted by the secretary of the H treasury to congress arc not exceeded, H and if the revenue from the tariff bill equals that which the secretary of the 1 treasury has estimated It as likely to bo. H This surplus fs also upon the supposition Ml that the $38,000,000 necessary annually In H the construction df tho Panama canal will H be met by bonds. H "In view of tho threatened shortoge H for the year ending June 30, 1911, 1 dl-1 dl-1 rected the brads of departments In mnk-1 mnk-1 ng their estimates to cut theun to the H (iiiick and to avail themselves of uvry H possible economy and reduction. The 1 result was that the total of the estimates j forwarded by tho secretary of the trens-Hl trens-Hl ury was S42.81S.000 less than the total of 1 the appropriations for the previous year ending June 30, 1910, "A river and harbor bill has now been 1 introduced and has passed the' houne H which appropriates nearly $40,000,00(1 1 Th1:t is a large Increase over the amount 1 estimated, by the secretary of tho tn-n!-Hj j ury 'In addition to this, If the building bill pnsses congress, appropriating $lc".-000,000 $lc".-000,000 or $20,000,000 for tho coming fiscal year, there still will be a deficit unless the receipts from the tariff bill and the corporation tax exceed what was originally estimated from them. I am bound to say that the results of the tariff bill thus far Indicate a considerable consid-erable Increase over the estimate of tho secretary. Cutting Down Estimates. "Now, I would Ike for a moment to go Into the question of wh'at It was that we cut down In our estimates for the coming year In the departments. "The reduction In the estimate of the war department beow the appropriations of last yoar amounted to $10,000,000. The reduction In the estimate of the navy department for the expenses of the year ending June 30, 1911. also amounted to $10,000,000. The reduction In the interior in-terior department of estimated exponsos for 1911 below tho appropriations for 1910 amounted to $8,000,000. The reduction reduc-tion in the treasury and in the postofllce departments made up tho balance of the $42,000,000 "Speaking with reference to tho army and tho navy, tho reduction Is .a postponement post-ponement only of expenditures that aro necessary until the Income tax shall bo sufficient to meet them. "Lei us tnke the war department. There Is needed at the mouth of Chesapeake Chesa-peake bay. between Capo Henry and Cape Charles, an artificial Island upon the so-called middle ground, which shall command the cntrnnce to Chesapeake bay. Chesapeake bay Is the most Important Im-portant body of water, from a strategical navy standpoint, on the whole Atlantic coast, and It must be dofended. Pacific Naval Base. "So, too, now we have determined that tho great naval base of the Pacific for us Is to be Pearl harbor, near Honolulu. For years there was a question as to whether we would make the naval base at Subig bay or at Cavltc, In Manila bay. In the Philippines. By unanimous consent of naval and military authorities, authori-ties, ll is now conceded that we do not need a naval base In the Philippines at all; that we ought to make Corrcgldor Island, at the mouth of Manila bay, Impregnable Im-pregnable and establish a naval supply station In Subli: bay. but rely upon ihe Sandwich Islands as our base. This will all Involve a heavy expenditure at Honolulu, Hono-lulu, but for the present the amount provided Is comparatively small. "In the naval expenditures wc have retained a provision for two battleships of the largo 25,000-ton capacity, and we have done this on the ground that, until tho Panama canal is completed, wc ought to go on and add to our naval strength. The Panama canal certainly will bo completed In 1315. and If we havo two battleships a year until that time, the opening of the canal will so double the efficacy of our navy for Mic protection of our Pacific and Atlantic coasts that we can abate and reduco our expenditures in new construction. "The reductions in the Interior department depart-ment were, I think, more of tlii tn In the administration than in the expenditures for Improvements, and this was also the case In the postofllce department. Pensions Keduced, "The reduction in the Interior department, depart-ment, $8,000,000, was due to a reduction In the amount of pensions to be paid out, and wo may reasonably hope that as the years now go .on .this amount will gradually be reduced. "On the other hand,: there arc certain of our departments which, as the opportunities oppor-tunities for bettering the condition of the people incrense, grow In Importance and In cost, and we ought not to expect a reduction either In tho expenses growing grow-ing out of a conservation of ,our resources. re-sources. "For some time- it has been said that we have 'billion-dollar' congresses. The statement in Itself is an unjust one, because be-cause it Is generally construed lo mean that the total expense of the departments depart-ments to be paid out of taxation amounts to a billion dollars a. year. This Is quite an error, for the reason that In making up the billion dollars the expenses for the postofllce department are always Included, whereas the expenses of the postofllce department are not paid for out of the proceeds of taxes. They are paid for out of receipts of that department, depart-ment, from the sale of stamps, with, the exception of $17,500,000. .which was the excess of the cost ' of the postofficc department de-partment last year over its receipts. This, therefore, reduces tho cost by taxation tax-ation of the government each year to something like $7f)0,000,000. The Aldricn Plan. "It Is now proposed to appoint a congressional con-gressional commission to look into the question of a general reorganization of the departments of the government with a view to reducing the expense of administering admin-istering the government. "It has been stated on the floor of the senate that It will be posslhle by this commission to reduce the cost of administering admin-istering the government $100,000,000 a year, and, If a free hand were given to a business man. the reduction In the expense ex-pense of administration might bo doubled or trebled. I am unable to confirm these statements as to exact amount, but I am sure that a conservative, prudent and fearless commission can maice a most material reduction In the cost of administering admin-istering the government. Must Expect Fight. "They will find opposition v1n congress to every change recommended because there Is no branch or bureau so humble that It cannot secure Us adherents and defenders within the legislative halls. But, If by the totals that It shows, this commission shall justify Its existence. It Is probable that It can secure a majority sufficient to carry through Its proposed reforms. This covernment has boon constructed con-structed not all at one time, but bureau bu-reau has been added to bureau, and department de-partment to department, and It has been Impossible to avoid duplication and expensive ex-pensive methods. "This proposed commission, as T understand un-derstand It. fs to take up the bureaus of all departments., is to sco whether they may" not often be connected, and to lay, down such rules governing the civil service serv-ice as will secure the most efficiency. Admits Deficiencies. "It is undoubtedly true today that we have a great many more persons om- ployed In the government than we would need If every person In the government rendered to the government a service of a high degree of efficiency Tho commission com-mission will have to take up the question, ques-tion, which has troubled great Industrial corporations and great railroads, as- to the method of disposing of superannuated servants. Our military pensions have reached so largo a. sum. to wit; $150,-000.000, $150,-000.000, that wo have avoided the suggestion sug-gestion of civil pensions, but X am convinced con-vinced that some method must be adopted adopt-ed by which superannuated civil servants may be retired on an Income. "It has been reported by the postmaster post-master general that we are carrying in the postofficc' department tho weekly periodicals and magazines at a cost to that department of upward of $00,000,-000, $00,000,-000, nnd that the business of the government gov-ernment in the postofflce department Is run at a general loss of S17.n00.000. Tho committees of congress are lvestigatlng. The owners of magazines dispute the correctness of the .figures. "Should the two postal committees not bo able to reach a conclusion the whole matter may well bo left to the commission. commis-sion. Must Employ Experts. f "It will bo essential for this commission commis-sion to employ expert men. who have had to do with the organization of great businesses and who are familiar with the most, modern methods of economy. The truth is that the success of modern business has been the adoption of successful suc-cessful economies, and the time has come for us to make an effort at least to Introduce In-troduce something of these economics Into an administration of the greatest business that we havo In this country the business of our federal government. "I have already occupied your time too much, and I perhaps have not made this statement very Informing or Interesting, but I cannot close without congratulating you and myself on the prospect that the present tariff bill offers of such an Increased In-creased Income us to mako deficits under un-der any condition unnecessary. Of course, If there were to be a halt In our prosperity pros-perity and a panic," the reduction In exports ex-ports might be so substantial as to lead to deficits again. T-et un hope, however, that tho prosperity of our country Is founded on such a substantial basis that no flurrv In tho stock market and no other temporary cause may prevent the continuance of good business on a sub-stantlal sub-stantlal basis." |