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Show I PRESIDENT TO CONGRESS Hi Message Read to Both H; Houses of National H Assembly i B LEGISLATION CALLED FOR IBB, Financial 8tandlng of the Nation De- m, clarcd Excellent Control of Cor. porailcns, the President Thinks, H, Should De Left to the National fl Government Labor Leaders Come In for Criticism Respect for Law Vital to the Well-Belnrj of Country. Washington. Tho iticssngo of Prcsl-dont Prcsl-dont ItoDHGvcIt was road In both houses of congress Tuesday. In nub-' nub-' Btnnco tho document was as follows: ' 'I'd (ho Rciiuln and I loilno of neprcson- tnllvrs: The financial standing of Iho n.illon fit tlin present tlino Ik excellent, mid tho flnnnclnl management of the nil-lion's nil-lion's Interests liy tliii government dur-Ing dur-Ing tlin Inst seven years linn shown tho in cist satisfactory results. Hut our cur-reney cur-reney system Ik Imperfect, ami It Ih oar-nostly oar-nostly l(i tie hoped Hint tho currenry cuiiiiiiIkkIiim will tin nhlo t(i propose a thoroughly good system which will tin away with tho existing defects. During the prrloil from .Inly 1, 1901, to September Si), 190S, there wan an Increase In the amount of money In circulation of f902,99l,399. Tlie Increase In the tier capita during thlK period was 17.00. Within till tlmo thcro were several occasions when It was necessary for tho trennury do-parliiient do-parliiient to come to thn relief of tho money market tiy purchases or rcdemp-Hons rcdemp-Hons of United Htntcs bonds; by Inercas-Ing Inercas-Ing deposits in national hunks; by sllin- I, ulatlng nddltlonal Issues of national hunk notes, and by facilitating Importations : from abroad of Hold. Our Imperfect cur- j roncy system has mado these proceedings t neceKRory, nud they wero effective until v thn monetary disturbance In tho fall of 1907 Immensely Increased tho dllllctilty of ordinary methods of relief. Hy thn mld- dlo of November tho available working b.ilunco In the trennury had been reduced H to approximately fl.000,000. Clearing lionso ussoilatluns throughout the country coun-try bad been obliged to leHort to the ' oxpcdlent of Issuing cleurlng house ccr- tlflcutcs, to be used as money. It. this I emergency It was determined to Invito , StiliHcrlillotiK for J.VI.000.000 I'nimiiin canal bonds, nnd f lOO.OJO.OOO tbreo per cent, i certificates of Indebtedness authorized by J tho net of Juno J3, 1SDS. It was proposed J to redeposlt In tho national bunk thn ft proceeds of these Issues, and to permit their n sn as a basis for additional clreu- latlng notes of national banks. Tho J moral effect of this procedure was so Brent that It was necessary to Issuo only " (2I.C31.9S0 of tho l'nnnina bonds nnd 15,- 436.WO of tho certificates of Indebtedness. During tho period from July 1, 1001. to September 30, 1908, tho balance between the net ordinary receipts nnd tho net ' ordinary expenses of tho government showed1 n mirplus In tho four years 1902, 190, 1900. nnd 1907. nnd n deficit In thn I years 1901, 1905, 1903 nnd a fractional part of the fiscal year 1900, Thn net result was n surplus of $99,533,413.81. Tho llnun- clal operations of tho government during this period, based upon these differences between receipts and expenditures, resulted re-sulted In u net reduction of thn Interest-bearing Interest-bearing debt of tho United States from f9tt.HI.0M to fS97.:S3,0, notwithstanding that there had been two sales of l'ananm canal bonds nmounllng In thn aggrcgato to fi4,G31,9S0, and an issuo of three per cent, certificates of Indebtedness under tho art of June 13, 1SUS, amounting to iri,t30.!00. Itefimdlng operntlons of tho treasury department under tho net of March 14, 1900. lesultcd In the conversion conver-sion Into two per cent, consols of 1930 of 1:00,309.100 bonds bearing higher rates of Interest. A decrease of fS,GK7,9.Vi In tho annual Interest charge resulted from those operations. In short, during tho seven years nnd tbreo months there lias been a net surplus sur-plus of neatly nno hundred millions of receipts over expenditures, n reduction ' of tho Interest-benrlng debt by ninety millions, In spite of thn extraordinary expanse ex-panse of tho rnniitnn canal, nnd n saving of nearly nine millions on tho annual Interest charge. Control of Corporations, As regards tho great corporations engaged en-gaged In Interstate, business, and especially espe-cially tho railroads, I can only repeat what I hnvo already again and ngaln said In my messages to tho congress. I be-Hove be-Hove that under tho Interstate clntiso of tho constitution tho United States has complete and paramount right to control con-trol nil agencies of Interstate commerce, and I believe that the national government govern-ment alone can exercise this right with wisdom nnd rffccllvrnosH bo as both to secure Justlco from, nnd to do Justice to, tho great corporations which are tho most Important factors In modern business. busi-ness. I believe that It Is worso than folly to attempt to prohibit nil combinations com-binations us Is dono by the Sherman anti-trust law, because hucIi a law can be enforced only Imperfectly and unequally." un-equally." and Its enforcement works almost al-most na much hardship as good. 1 utroncly advocate that Instend of an tm- wlsn effort to prohibit all combinations, thorn shall be substituted a law which shall expressly permit combinations which are In the Interest of the public, fl but shall nt the sumo tlmo give to some agency In the national government full power of control and supervision over them. One of the chief features of this IHl control should bo securing entire pub- B llclty in all matters which the public has a right to know, and furthermore, tho power, not by Judicial but by execu-tlve execu-tlve action, to prevent or put u stop to Hj overy form of Improper favoritism or other wrongdoing. The rullwnys of the country should be H put completely under the Interstate com- Hj pierce commission and removed from H) tbe domain of tho anti-trust law. Thn jHI power tit tho commission should be tuude ln thoroughgoing, bo that It could exercise H complete supervision and control over H tho issuo of securities ns well ns over HI the raising nnd lowering of rates. As H regards rates, at least, this power should H be summary. . . . Hates must be mado Hj as low as Is compatible with giving prop- HH er returns to nil thn employes of the rull- HB road, from the highest to the lowest. HH and proper retnrri to the shareholders. HH but they must not, for Instance, be re- HH duccd in such fashion ns to neceltalo H a cut In the wages of tho employes or I Hie abolition Of tho proper and legitimate HH profits of honest shareholders. B Tolegrnph and telephone companies en- H gaged In Interstate, business should bo I put under tho Jurisdiction of the Inter- state rbmmcrro commission. HIB. It Is very earnestly to bo wished that our peopo, through their representatives, should' net In this matter. It Is to jSJ the Interest of all of us that there should be a premium put upon In-a In-a dividual Initiative; und Individual ca- paclty, and an ample reward for the great directing Intelligences nlnnn competent com-petent to mntiago tho great business operations op-erations of to-day It Is well to keep in mind that nxactly ns tho anarchist Is tho worst enemy of liberty and the reactionary reaction-ary tho worst enemy of order, so the men who dofend tho rights of property hnvo most to fear from tho wrongdoers of great wealth, nnd tho men who ore championing popular rights have most to fear from tho demngogues who In the namn of popular rights would do wrong to ami oppress honest business men, honest men of wealth; for tho success of either typo of wrongdoer necessarily Invites In-vites n violent reaction against thn cause tho wrongdoer nominally upholds. . . Need of Centralization. Thn proposal to make tho national na-tional government supremo over, nnd therefore to glvo It complete control over, the railroads nnd other Instruments of Interstate, commerco is merely a proposal propos-al to carry out to tho letter one of tho prime purposes, If not tho prltno purpose, for which the constitution was founded. It does not represent centralization. It represents merely tho acknowledgment of tho patent fact that centralization bus already come In business. If this Irresponsible Irre-sponsible outside business power Is to bo controlled in the Interest of tho general public. It can only bo controlled In one way; by giving adeituato power of control con-trol to thn one sovereignty capablo of exercising ex-ercising such power tho nntlonnl government. govern-ment. To abandon thn effort for national control menus to abandon tho offo.t for nil ndeipiati' control nnil yet to render likely like-ly continual bursts of action by stato legislatures, leg-islatures, which cannot itrhlnvn the purpose pur-pose sought for, but which can do a great deal of damage to the corporation without conferring any real benefit on the public. There should ho regulation by the national na-tional government of tho grcnt Interstate corporations, Including a simple, method of nccount koeplng, publicity, supervision of tho Issuo of seeurltleK, abolition of rebates nnd of special privileges. Thcro should bo short-tlmn franchises for nil corporations engaged In public business; Including thn corporations which get power from water rights. Tlicro should be nntlonnl ns well as stato guardianship of mines and forests. Tho labor legislation legisla-tion hereinafter referred to should concurrently con-currently bo enacted Into law. To accomplish this, means a certain Increase In-crease In tho uso of not tho creation of power, by tho central government. Tho power ulrendy oxlsts; It does not havu to bo created; tho otdy question Is whether It shnll bo used or left Idlo nnd mennwhllo the corporations over which tho power ought to bo exercised will not remain Idle. Tho danger to American Amer-ican democracy lies not In tho least In tho concentration of administrative power In responsible and nccouutablo hands. It lies In having tho power Insutllclently concentrated, bo that no ono can bo held responsible to tho people for Its use. Concentrated power Is palpable, visible, responsible, easily reached, quickly held to account. Democracy Is In peril wherever the administration of political po-litical power is scattered among n variety of men who work In secret, whose very names aro unknown un-known to tho common people. It Is not In peril from any man who derives authority au-thority from tho people, who exercises It in sight of the people, nnd who Is from tlmo to tlmo compelled to glvo an nccount of Us exercise to tho people. Lenlslatlon for Waneworker. There nro many matters affecting labor and the status of tho wogoworker to which I should like to draw your attention, atten-tion, but nn exhaustive discussion of tho problem In nil Its aspects is not now necessary. nec-essary. I bellovo In a steady effort, ef-fort, or perhaps It would bo more accurate to say In sternly efforts In many different directions, to bring about a condition of affairs tinder which the men who work with hand or with brain, tho lahorur.i, tho ruiperlntendents, tho men who produce tho mnrket und the men who find n market for Iho articles produced, shall own a fur greater share than at present of tho wealth they produce, pro-duce, anil be enabled to invest It In tho tools and Instruments by which nil work Is carried on. As fnr as possible I hope to see a frank recognition of tho advantages advan-tages conferred by machinery, organization organiza-tion nnd division of labor, accompanied by an effort to bring about n larger share In the ownership by wago-worker of railway, rail-way, mill nnd factory. l'ostnl Savlncs banks will make It easy for the poorest to keep their savings sav-ings In nbsolttte safety. Tho regulation of tho national highways must be such that thoy shall servo nil peoplo with equal Justice. Corporate finances must bo supervised so ns to make It far safer than nt present, for the mnn of small means to Invest his money In stocks. Thcro must bo prohibition of child labor, la-bor, u.mlntttlon of women labor, shortening short-ening of hours of all mechanical labor; stock wntorlng should bo prohibited, and stock gambling so far ns Is possl-blo possl-blo discouraged. There should bo u progressive Inheritance tax nn largo fortunes. Industrial education should bo encouraged. As far as possible wo should lighten tho burden of taxation on the small mnn. Wo should put a premium upon thrift, bard work, and business energy; but these qualities cease to bo the main fnctors In accumulating accu-mulating a forttino long before that fortune reaches n point where it would be seriously affected hy nny Inheritance Inheri-tance tex such as I propose. It Is eminently emi-nently right that tho nation should tlx the terms upon which thn great fortunes for-tunes nro Inherited. They rarely do good and they often do harm to those who Inherit them In their entirety. There should no longer bo nny paltering palter-ing with the question of taking c.ire of thn wagnworkers who, under our present pres-ent Industrial system, become killed, crippled, or worn out as part of tho regular Incidents of u given business. busi-ness. As fur as concerns those who hnve been worn out. I call your attention to tho fact that definite Hteim tnwnril nrovtdlnir nld-nirn rten- slons have been taken In mnny of our private industries. These may ho Indefinitely In-definitely extended through voluntary association and contributory schemes, or through tho agency of savings banks, ns under the Massachusetts plan. Urgent Need of Reform. Our present system, or rnthcr no uys. tern, works dreadful wrong, nnd Is of benefit to only one class of peoplo tho Inwyers. When a workman Is Injured what he needs Is not an expensive and doubtful lawsuit, but tho cortalnt of relief through Immediate administrative administra-tive action. No academic theory about "freedom of contract" or "constitutional "consti-tutional liberty to contract" should lie permitted to Interfere with this nud similar movements. rending a thoroughgoing investigation investiga-tion and action there is certain legislation legis-lation which should bo enacted at once. The law. pusseil at the last session of tho congress .granting compensation to certain classes of employes of tho gov-eminent gov-eminent .should bo extended to include all employes of tho government nnd should bo made more liberal In Its terms. There Is no good ground for tho distinction made In the law between be-tween those engaged In hazardous occupations oc-cupations and those not so engaged. en-gaged. The terms of tho act providing pro-viding compensation should be mado more liberal than In tho present act. A year's compensation Is not adequate ade-quate for a wago-earncr's family In the event of his dcutli by accident In' thu course of his employment. And In the event of ileuth occurring, say. ten or eleven months nfter the nccldent, the family would only receive as compensation compen-sation the equivalent of one or two months' earnings, In this respect the generosity of the United Htntes towards Its employes compares most unfavorably unfavora-bly with that of every country In Europe Eu-rope oven tho poorest I renew my recommendation made In a previous message that half-holidays bo granted during summer to all wage-workers wage-workers In government employ . I also renew my recommendation that the principle of the eight-hour day should as rapidly nnd as far as practicable practi-cable bo extended to the entire work being carried on by tho government; tho present law should bo amended to embrace contracts on those public, works which the present wording of the net seems to exclude Would Double Salaries of Judges. I most earnestly urgo upon tho congress con-gress tho duty of Increasing the totally Inadequate salaries now given to our Judges. On tho whole thero Is nn body of public servants who do as valuable work, nor whose moneyed rownrd is so Inndcqtinto compared to their work. Ho-ginning Ho-ginning with the supremo court tho Judges should have their salaries doubled. dou-bled. It Is not befitting the dignity of tho nation that Its most honored public servants should be paid sums so small compared to what they would earn in prlvato life that the performance of public service hy them Implies an exceedingly ex-ceedingly heavy pecuniary Sacrltlce. It Is tnrnestly to be desired that somo method should he devised for doing away with the long delays which now obtain In the administration of Justice, and which operate with peculiar severity sever-ity ngnlitst persons of smnll means, nnd favor only the very crlmlnnls whom It Is most ileHlrable to punish. These long delnys In the tlnnl decisions of cases make In thn aggregate a crying evil; and n remedy shnti, I be devised Much of this Intolerable delay Is due to Improper regard paid to technicalities technicali-ties which are a mere blnileraiice to Justice. In some noted recent cases this over-regard for technicalities hns ro-sulted ro-sulted In n striking denial of Justice, nnd llagrant wrong to thn body politic. Labor Leaders Criticised. At the last election certain leaders of organized labor mado n violent nnd sweeping nttack upon the entire Judiciary Judi-ciary of the country, an attack couched In such terms ns to Include tho most upright, honest nnd broad-minded Judges, no less than those qf narrower mind nnd more restricted outlook, hast year, before tho houso cotn-mltteo cotn-mltteo on Judiciary, these same labor leaders formulated their demands, de-mands, specifying the bill that contained them, refusing nil compromise, compro-mise, stating they wished tho principle of that bill or nothing. They insisted on a provision that In a labor dispute no Injunction should Issue except to protect n property right, nnd specifically specifical-ly provided that the tight to carry on business should not bo construed as n properly right; and In n second provision provis-ion their bill mnde legal In n labor dispute dis-pute any act or agreement by or between be-tween two or moro persons thnt would not have been unlawful If done hy a single person. In other words, this bill legalized blacklisting nud boycotting In overy form, legalizing, for Instance, tlioso forms of tho secondary boycott which the anthracite coal strike commission com-mission so unreservedly condemned; while tho right to carry on a business wns explicitly tnken out from under that protection which tho law throws over property. Tho demand wns mnde that thero should bo trial by Jury In contempt cases, thereby most seriously Impairing tho authority of the courts. All this represented a courso of policy which. If carried out, would mean tho enthronement of class privilege In Its crudest nnd most brutal form, nnd tho destruction of ono of tho most essential essen-tial functions of tho Judllcnry in all civilized civ-ilized lands. Tho violence of tho crusndo for this legislation, nud Its complete failure, Illustrate two truths which It Is csscn-tlal csscn-tlal our peoplo should learn. In tho first place, they ought to tench the worklngman, the laborer, the wago-worker, wago-worker, that by demanding what Is Improper Im-proper and Impossible ho plays Into tho hands of his foes, Such n crudo nnd vicious attack upon tho courts, even if It wero .temporarily successful, would Inevitably in tho end causa u violent reaction nnd would band tho great mass of citizens together, forcing them to stand hy all the 'Judges, competent and Incompetent nllke. rnthcr thatv. to see tho wheels of Justlco stopped. Thn wagnworkers. tho worklngmen. tho lnborlng men of tho country by tho wny In which they repudiated the effort ef-fort to got them to cast their votes In responsn to an appeal to class hatred, have emphasized their sound patriotism und Americanism. Such an attitude Is an object lesson In good citizenship to tho entlro nation. Judicial System Sound, Our Judicial system is sound nnd effectlvo at core, nnd It remains, und must ever bo maintained, as tho safeguard of those principles of liberty lib-erty and Justice which stand nt the foundation of American Institutions; for, ns Hurkn finely said, when liberty and Justlco are separated, neither IS safe. Thero aro, howover. somo members of thn Judicial body who hnvo lagged behind be-hind In their understanding of tl.'-so great nnd vital changes In tho body politic, whose minds hnvo nover been opened to tho new nppllcntlons of the old principles mndo necessary by tho new conditions. Judges of this stamp do lusting lust-ing hnrm by their decisions, becnuso thoy convince poor men In need of protection thnt the courts of tho land aro profoundly pro-foundly ignorant of nnd nut of sympathy with their needs, nnd profoundly Ignorant or hostile to any proposed remedy. To such men It seems a cruel mockery to hnve any court decide against them on tho ground thnt It desires to preservo "liberty" In n purely technical form, by withholding liberty In any reul and constructive con-structive setisn Thero aro certain decisions by various courts which have been exceedingly detrimental det-rimental to the rights of wage-workers. This Is true of all decisions that decide that men are, by the constitution, "guaranteed "guar-anteed their liberty" to contrnct to enter a dangerous occupation, or to work nn undesirable or Improper number of hours, or to work In unhealthy surroundlnes; nnd therefore cannot recover damages when maimed In that occupation, nnd cannot bo forbidden to work what the legislature decides is nn excesslvo number num-ber of hours, or to carry on tho work under conditions which tho legislature decides to bo unhealthy. Decisions such as those nullify the legislative elTort to proteot the wagownrkers who most need protection from those employers employ-ers who take ndvuntago of their grinding grind-ing need. They halt or hamper tho movement move-ment for securing better and more equitable equi-table conditions of labor. There Is also, I think, ground for tho bellof that substantial Injustice Is often suffered by employes In consequence of tho custom of courts Issuing temporary Injunctions without notlro to them, and punishing them for contempt of court In Instances where, ns a mutter of fact, they have no knowledge of any proceedings. proceed-ings. Organized labor Is chafing under the unjust restraint which comes from repented resort to this plun of procedure. Its discontent tins been unwisely expressed, and often Improperly expressed, but thero Is u sound basis for it, and the orderly or-derly und law-uhldlng people of a community com-munity would bn in u far stronger position posi-tion for upholding the courts If tho undoubtedly un-doubtedly existing abuses could be provided pro-vided against. Injunction Must Remain. The power of Injunction Is a great equitable remedy, which, should on ma account bo destroyed, Uut safeguards c should be erected against Its abuse. In substance, provision should bo made that no Injunction or temporary restraining re-straining order Issue otherwise than on notice, except where Irreparable Injury would otherwise result, nnd In such case a hearing on the merits of the order should be had within a short fixed period, pe-riod, nnd, If not then continued after hearing. It should forthwith Inpse. Decisions De-cisions should bo rendered Immediately, nnd the chance of delay minimized In overy wny. Moreover, I believe that the proceduro should be sharply defined, and the Judge required minutely to state the particulars both of his action and of his reasons therefor, so that the congress can If It desires examine and Investigate the snmn. For many of the shortcomings of Justice In our country our people ns a whole nre themselves to blame, nnd tho Judges and Juries merely benr their share together with the public as a whole. It Is discreditable to us as a people that there should be difficulty In convicting murderers, or In bringing to Justlre men who an public servants have been guilty of corruption, or who havo profited by the corruption of public servants. The result Is equally unfortunate, whether due to hairsplitting hairsplit-ting technicalities in tho interpretation of law by Judges, to sentimentality and class consciousness on tho part of Juries, or to hysteria nnd sensationalism sensational-ism In the dally press. For much of this failure of Justlco no responsibility whatever lies on rich men ns such. Wo who make up tho mass of tho peoplo ennnot shift the responsibility from our own shoulders. Hut thcro Is nn Important Impor-tant pnrt of the failure winch has specially spe-cially to do with Inability to hold to proper account men of wealth who behave badly. The Modern Corporation. The huge wealth that has been accumulated accu-mulated by a few Individuals of recent years. In whnt has amounted to a social so-cial and Industrial revolution, has been as regards some of these Individuals made possible only by the Improper uso of tho modern corporation. A certain typo of modern corporation, with Its otllcers nnd agents, Its tnnny Issues of securities, and Its constant consolidation consolida-tion with nlllcd undertakings, finally becomei nn Instrument so complex ns to contain n greater number of elements ele-ments that, under vnrlous Judicial decisions, de-cisions, lend themselves to fraud nnd oppression than any dcvlco yet evolved lit tho human brnln. Corporations nre necessary Instruments of modern business. busi-ness. They have been permitted to become n menace largely because tho governmental representatives of the peoplo ha've worked slowly In providing provid-ing for ndoquatu control over them. Our grent clusters of corporations, corpora-tions, huge trusts nnd fabulously wealthy multimillionaires, employ the very best lawyers they can obtain to pick tlaws In stntutes nfter their passage; but they nlso employ n class of secret agents who seek under the ndvlco of experts, to render hostile leglsla.lon Innocuous by limiting It unconstitutional, un-constitutional, often through the Insertion Inser-tion of whnt appear on their faco to bo drnstlc and sweeping provisions against the Interests of tho parties inspiring them; while tho demngogues, the corrupt cor-rupt creatures who Introduce blackmailing black-mailing schemes to "strike" corporations, corpora-tions, nnd nil who demnnd extreme, and undesirably radical. measures, show themselves to be the worst enemies ene-mies of the very public whoso loudmouthed loud-mouthed champions they profess to he Ileal damage has been dono hy the manifold nnd conflicting Interpretations oi tho interstato commerce law. Control Con-trol over tlin i-rent eornorntlonn dnlni? interstate business can be effectlvo only if It Is vested with full power In an administrative department, n branch of tho federnl executive, carrying out a federal law; it can nover be effective If n divided responsibility Is left In both the states and tlio nation; It can nover bo effective If left In the hands of tho courts to he decided by lawsuits. Respect for Law Must De Upheld. The courts hold n place of peculiar and deserved sanctity under our form of government. gov-ernment. Hespect for the law Is essential essen-tial to the permanence of our Institutions: Institu-tions: nnd respect for the law Is largely conditioned upon respect for the courts. It Is nn offense against the republic to say anything which can weaken this respect, re-spect, save for tho gravest reason nnd In the most carefully guarded manner. In no other nation In tho world do the courts wield such vast and far-reaching power as In the United States. All that Is necessary nec-essary Is thnt thn courts nS- a wholo should exercise this power with the fnr-sighted fnr-sighted wisdom already shown by thoso Judges who senn tho future while they net In the present. Let them exercise this great power not only honestly nnd bravely, but with wise Insight Into the needs nnd fixed purposes of tho people,, so thnt they may do Justice, and work equity, eo that thoy may protect all persons per-sons In their rights, nnd yet break down the barriers of privilege, which Is tho foe of right. Forest Preservation. If thcro Is any ono duty which morn than another we owe It to our children to pcrloitu nt once, it Is to save tho for-et. for-et. of this country, for they constitute the first nnd most Important element In tho conservation of the natural re-sdurces re-sdurces of tho country. . . . Just us a farmer, after all his life making his living from his farm, will. If he is nn expert ex-pert farmer, leave it as nn nssct of Increased In-creased value to his son, so we should leave our national domain to our children, chil-dren, Increased In value nnd not worn out. Thero are small sections of our own country, In tbe east and In the west, In tho Adlrondncks, the White mountains and the Appalachians, and In the Itocky mountains, whero we can ulrendy see for ourselves the damage In the shape f permanent Injury to tho sell und thn river systems which comes from ree'.iless deforestation. It matters not whether this deforestation Is due to the actuul reckless cutting of timber, to the fires that Inevitably follow such reckless cutting cut-ting of timber, or to reckless und uncontrolled uncon-trolled grazing, espetdnlly by the great migratory bands of sheep, the un checked wandering of which over the country means destruction to forests and disaster to tho small home-makers, tho settlers of limited means Thanks to our own recklessness in the uso of our splendid forests, we hnve already crossed the vergo of u tlmbor famine In this country, and no measures that we now take cun, at least for many years, undo the mlsihlef that .lias already been done. Hut we can prevent pre-vent further mischief being done; und it would be in tho highest degree reprehen-rlble reprehen-rlble to let nny consideration of temporary tem-porary convenience or tempornry cost Interfere with such nctton. especially us regards the national forests wMcb the nation can now, ut this very moment, control. Tho lesson of deforestation In China Is a lesson which mankind should have learned many times already from what has occurred In other places. Denudation Denuda-tion leaves naked soil; then gullying ruts down to thn bare rock, und meanwhile mean-while tho rock-waste buries the bottomlands. bottom-lands. When the soli Is gone, men must go: nnd tho process does not take Ipng. Plea for Inland Waterways, Action should be begun forthwith, during dur-ing tho present session of tho congress, fot the Improvement of our inlnnd waterwaysaction water-waysaction which will result In giving us not only navigable but navigated rivers. Until the work of river Improvement Is undertaken In n modern way It can not have results that will meet the needs of this modern nation. Tho plan which promises tho best and quick est results Is that of a permanent per-manent commission authorized to co-ordinate the work of alt the government departments relating to waterways, nnd to frame and supervise the execution of a comprehensive plan. Under such a commission tho actual work of construction construc-tion might be entrusted to the reclamation reclama-tion service; or to the military engineers acting with a sufficient number of civilians civili-ans to continue the work In tlmo of war; or It might be divided between the reclamation rec-lamation service and the corps of en-tflneeis. en-tflneeis. Funds should be provided from mrrent revenues if It la deemed wise Jtherwlsc from the sale of bonds. The issentlal thing Is thnt the work should go forward under tho best possible plan, and with the least possible delay. The time for playing with our wntcrways Is past. The country item. .Js results. Tho president urges thnt national parks adjacent to national forests bo placed under tho control of tho forest servlco of the agricultural department; depart-ment; ho also points out tho benefits dorlvetl from pure food legislation. Tho message continues: Needs of the Secret Service. 1-nst year an nmendment wns Incorporated Incor-porated In the measure providing for the secret service, which provided that there should be no detail from tho secret servlco serv-lco and no transfer therefrom. Tho amendment In question was of benefit to no ono excepting to criminals, nnd It seriously hampers the government In the detection of crime nnd tho securing of Justice. Tho chief argument In favor of the provision wns thnt tho congressmen did not themselves them-selves wish to bo Investigated by the secret servlco mon. Very llttlo of such Investigation has been dono In tho past; but It Is true that tho work of thn secret service agents was partly responsible for the Indictment and conviction of a sen-ntor sen-ntor nnd a congressman for land frauds In Oregon. I do not bellovo that It Is In tho public Interest to protoct criminals In nny branch of tho public service, and exnetly ns wo hnvo again and ngnln during dur-ing tho past seven years prosecuted and convicted such criminals who were In tho executive branch of tho government, so In my belief wo should bo given nmple menns to prosccuto them It found In tho leglslntlvo branch, Hut If this Is not considered deslrablo a special exception could bo mndo In the law prohibiting the use of tho secret servlco forco In Investigating Inves-tigating members of tho congress. Postal Savings Banks. I again renew my recommendation for postal savings banks, for depositing deposit-ing savings with tho security of tho government behind thorn. Tho object is to encourage thrift nnd economy In the wngo-earncr nnd person of mod-erato mod-erato means. It is believed thnt In tho aggrcgato vast sums of money would bo brought Into circulation through tho Instrumentality In-strumentality of tho postal savings banks. Parcel Post. In my last annual message I commended com-mended tho postmaster-general's recommendation for nn extension of tho pnrcel post on tho rural routes. Tho establishment of ti local parcel post on rural routes would be to the mutual benefit of tho farmer nnd tho country storekeeper, and It Is dcslrnblo that tho routes, serving more than 1C.000.000 people, should be utilized to the fullest practicable extent. Education. With the limited means hitherto provided, pro-vided, tho bureau of o ducatlon has rendered cfllclent servico. but tho congress con-gress has neglected to adequately supply sup-ply the bureau with means to meet tho educational growth of tho country. I earnestly recommend that this tin-fortunnto tin-fortunnto stato of affairs as regards tho natlonnl educational office be remedied reme-died by adequate appropriations. This recommendation Is urged by the representatives repre-sentatives of our common schools nnd great stato universities and the leading educators, who all unite In requesting favorablo consideration nnd action by the congress upon this subject. The president points out tho necessity neces-sity of hotter organization of tho various vari-ous bureaus responsible for tho public health, and urges tho placing of all soldiers' homes under tho Jurisdiction of tho war department. Statehood. On tho question of statehood tho president says: I advocate tho Immedlato admission of New Mexico nnd Arizona ns states. This should bo done nt tho present session of the congress. The peoplo of tbe two territories ter-ritories huve mnde It evident by their voles that thoy will not como In us ono state. The only nlternntlvo Is to admit them as two, nnd I trust that this will bo dono without delay. Interstate Fisheries. I cnll tho attention of tho congress to the Importance of the problem of the llsherles In tho Interstato waters, On tho Orcnt Ijikes wo are now, under the very wise treaty of April 11 of this year, en-denvorlng en-denvorlng to come to an International agreement for tho preservation nnd satisfactory sat-isfactory uso of tho llsherles of these waters wa-ters which can not otherwise bo achieved, hake i:rle, for example has the richest fresh water flsherl's jr. the world; but It Is now controllc.l by the stntutes of two nations, four c.ntes, nnd one province, and this province by two different ordinances ordi-nances In different counties. All these, political divisions work ut cross purposes, pur-poses, nnd In no case can they ncblove protection to tho fisheries, on thn ono hand, nnd Justice to tho localities and Individuals In-dividuals on tho other. Foreign Affairs. This nation's foreign policy Is based on the theory that right must be dono between nations precisely as between Individuals, and In our actions for thn last ten years wn havo In this matter proven our faith by our deeds. We have behaved, und aro behaving, towards to-wards other nntlons, ns In private life an honoinble man would behave towards to-wards his fellows. Latin-American Republics. Tho commercial and material progress prog-ress of tho 20 hatln-Amcrlcan republics Is worthy of thn careful attention of tho congress. Tho International Ilur can of the American Hepubllcs Is doing n useful work In making these nntlons nnd their resources better known to us. nnd In acquainting them not only with us as a people nnd with our purposes pur-poses towards them, but with whnt we hnve to exchange for their goods, Panama Canal. The work on the I'auamn canal Is being be-ing done with n speed, efficiency nnd entlro devotion to duty, which make It a model for all work of the kind. Tho men on the Isthmus, from Col. tloethals nnd his fellow commissioners through tho entire list of employes who are faithfully doing their duty, havo won their right to the ungrudging respect and gratitude, of thn American people. Ocean Mall Lines. I again recommend tho extension of the ocean mall net of 1891 so that satisfactory satis-factory American ocean mall lines to South America, Asia, the I'hlllpplnes, und AuBtrnlusIa may bo established, Hawaii. I cull particular attention to the Territory Ter-ritory of Hawaii. The Importanco of thoso Islands is apparent, ami the need of Improving their condition and developing de-veloping their resources is urgent. The Philippines, Heal progress townrd self-government Is being made in thu I'hlllpplno Islands. I trust that within n generation tho time will urrlve when the I'hlllpplnes can decide for themselves whethar It ts i!! - a well for them to become Independent, tf .' , to continue under the protection of u S. ' strong nnd disinterested power, able to guarantee to the Islands order at home ' and protection from foreign Invasion. Porto Rico. I again recommend that American citizenship cit-izenship be conferred upon the people of Porto Hlcov Cuba. In Cuba our occupancy will cense In ' about two months' time; the Cubans g i hnve In orderly manner elected their own 1 ' governmental authorities, and the Island will be turned over to them. Our occu- b patlon on this occasion has lasted a lit- tie over two years, and Cuba has tbrlv- T en and prospered under It, Our earnest f ' hope nnd ono desire is thnt the people f of the Island shall now govern themselves them-selves with Justice, so that peace nnd order or-der may bo secure. Japanese Exposition. The Japaneso government has post- n1 potted until 1917 the date of tho great ' W International exposition, tho action be- v Ing taken so as to Insttro nmple tlmo In which to preparo to mako tho exposition expo-sition nil thnt It should bo made. Tho American commissioners havo visited Japan nnd tho postponement will merely mere-ly give ampler opportunity for America Ameri-ca to bo represented at the exposition. Not slnco the first International exposition expo-sition has thero been ono of greater Importance than this will be, inarklnc. ns It does, tho fiftieth anniversary of tho ascension to the throne of tho emperor em-peror of Japan. Tho extraordinary leap to tho foremost plsco among tho nations of tho world mado by Japan during this half century Is something unparalleled In nil previous history. I tako this opportunity publicly to stato my appreciation of the way In which In Japan, In Austrnlln. In New Zealand, nnd In nil tho stntes of South Amerlcn, tho battle llect has been received re-ceived on Its practice voyage around tho world. Tho American government enn not too strongly express Its appreciation appre-ciation of tho abounding nnd generous hospitality shown our ships In overy port they visited. The Army. As regards tho army I call attention to tho fact that while our Junior officers offi-cers and enlisted men stnnd very high, the present system of promotion by seniority results In bringing Into the higher grades many men of medlocro capacity who ha've but a short tlmo to serve. No man should regard It as hla vested right to rise to tho highest rank In tho army any moro than in nny other profession. It Is n curious nnd by no means credltnblo fact that there should bn so often n tallurn on tho part of tho public nnd Its representatives representa-tives to understand tho grent need, from tho standpoint of tho servlco nnd tho nation, of refusing to promote respectable, re-spectable, elderly Incompetents. Tho higher places should bo given to tho most deserving men without regard to seniority; nt least seniority should bo treated as only nno consideration. In tho stress of modern Industrial competition com-petition no business firm could succeed if tlioso responsible for Its management wero chosen simply on tho ground that they wero tho oldest people in Its employment; em-ployment; yet this Is the courso advocated advo-cated ns regards the nrmy, and required re-quired by lnw for all grades except tlioso of goncrnl officer. As a matter of fact nil of tho best officers In tho highest ranks of tho army aro those who have nttnlncd their present position posi-tion wholly or In part by a process of selection. Tho scope of retiring boards should i bn extended so that they could con- i aider general unfitness to command for nny cnuse, In order to secure a far more gyX rigid enforcement thnn nt present In tho elimination of ofllcers for mental, physical or temperamental disabilities. Hut this plan Is recommended only if tho congress does not see lit to provide what In my Judgment Is fnr hotter, that Is. fnr selection In promotion, nnd for elimination for nge. Olllcors who i full to attain a certain rank hy a certain cer-tain ngo. should be retired for in- i stance, if n mnn should not attain field rank by the time ho IB 43 he stW should of courso bo placed on tho re-tired re-tired list. Genoral olllcers should bo j selected as at present, und one-third of tho other promotions should be tp-mndo tp-mndo hy selection, the selection to ha mndo by tho presldont or secretary of war from a list of at IcaKt two candl- , dates proposed for each vnenncy by a ! board of olllcers from tho arm of tho servlco from which tho promotion Is ' to bo mnde. A bill Is now beforo the ' congress having for Its object to se- 1 euro the promotion of officers to vnrlous vnrl-ous grades nt reasonable ages through n process of selection, by boards of ofllcers, of-llcers, of tho least efficient for retirement retire-ment with a percentage of their pay depending upon length of servlco. The bill, although not accomplishing all that should bo dono, Is n long step In tho right direction; nnd I earnestly recommend Its passage, or that of a moro completely effectlvo measure. J National Guard. Now thnt thu organized militia, the National Guard, has been Incorporated with tho army ns a part of tho nntlonnl forces, It behooves tho government to do overy rcasonablo thing In Its power to perfect Its elllclency. It should be assisted In Its Instruction and otherwise other-wise aided moro liberally than heretofore. hereto-fore. Tho continuous services of many well-trained regular olllcers will be ' essential In this connection. A bill is now pending beforo the congress creating a number of extra otllcers in tho nrmy. which If passed, as It ought to bo, will enable more officers to be trnlncd us Instructors ot Natlonnl Ouard and assigned to that duty. In caso of war it will bo of the utmost Importanco to have a large , number of trnlned officers to uso for turning raw levies Into good troops. I The Navy. ' I approve the recommendations of the general board for the In-creaso In-creaso of the navy, calling especial nttenttnn to tho need ot additional addi-tional destroyers nnd colliers, und above ;-all, ;-all, ot the four battleships. It Is desirable desir-able to complete as soon hb posalblo n squadron of eight battleships of the best , existing typo. ' I most earnestly recommend that the M genoral board bo by law turned Into a ' l general staff. There Is literally no ex- cuso whatever for continuing the pres- ent bureau organization of tho navy. The ,' navy should bo treated ns u purely mill- Y tary organization, nnd everything should ! bo subordinated to the one object of securing se-curing military ofllclenoy. A system of promotion by merit, cither by selection selec-tion or by exclusion, or by both processes, should be Introduced. It Is out of the question, If tho present principle j of promotion by mere seniority Is kept, .1 to expect to get the best results from tho higher ofllcers. Our men como too old, mid stay for too short a time, In tho high " command positions, . Nothing bettor for the navy from every I stnndpolnt has ever occurred than the cruise of tho battle (lent around the world. Tho improvement of tho ships in every way has been extraordinary, and they have gained far mora exprrlnce i in battle tactics than they would have ' gained If they hnd stayed In tho Atlantlo waters. The American people have cause for profound gratification, both In vlow of the excellent condition of the fleet ns shown by this cruise, and in view of tho Improvement tho crulso has worked In this already high condition. I do not believe that there Is any other service In tho world In which tho average of character char-acter nnd elllclency In the onllsted men Is as high as Is now the vase in our own. TIIEODOH12 HOOSKVEhT. The Whlto Huuse, Tuesduy, December 8, 1908. 4k t t |