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Show PRESIDENT TAFT SENDS MESSAGE TO CONGRESS Policy of the Administration Made Clear to the Country. FAVORS SHIP SUBSIDY BILL Chief Executive Gives Reasons for Desiring De-siring the Passage of Such a Measure Meas-ure Postal Savings Banks Plea for Conservation of National Resources. Washington. Tho prosldcnt transmitted trans-mitted tho following messngo to congress: con-gress: To the Senate and House of Representatives: Repre-sentatives: Tho relations of tho United States with til forolgn governments hnvo continued upon tho normal basis of nmlty and good understanding, nnd aro very genernlly satisfactory. Latin America. Oifo o? 7170 happiest ovontn In rccont Pan-American diplomacy wns tho pacific, Independent settlement by tho governments govern-ments of Bolivia nnd Peru of n boundary dln"ercncobotveen them, which for somo wcoks threatened to causo war nnd even to ontrnln cmblttcrmcnta affecting othor republics loss directly concerned. From vntloun qunrteis, directly or Indirectly concerned, tho Intermediation of tho United Uni-ted States wns sought to assist In 11 solution so-lution of tho controversy. X)cslrlng nt nil times to nbstnln from tiny undue mingling In tho nffnlrs of sister republics and'hnv-Ing and'hnv-Ing fnlth In tho ability of tho governments govern-ments or Poru nnd Bolivia themselves to settlo their differences In n manner Batls-fnctor Batls-fnctor to themselves which, vlowqd with magnanimity, would nssungo all cmblt- terment, this government steadily abstained ab-stained from being drawn Into tho controversy con-troversy nnd was much gratllled to And Its confidence Justified by ovontH. My meeting with President Diaz and tho greeting- exchanged on both American Ameri-can nnd Moxlcnn soil served, I hope, to slgnallzo the closo nnd cardial relations which bo well bind together this republic and tho great republic liincdlatcly to tho south, between which thero Is so vnst a network ot material Interests. I am happy to say that all but ono of the cases, which for bo :jQniXe(ul.,ftUE-relatlona :jQniXe(ul.,ftUE-relatlona with Venezuela hnvo been settled set-tled within tho past few months nnd that, under tho enllghtoncd roglmo now directing direct-ing tho government of Venezuela, provision provi-sion lias been mado for nrbltratlon of tho remaining case beforo Tho llaguo tribunal. tri-bunal. Since tho Washington conventions of 1907 wero communicated to tho government govern-ment of tho United States as a consulting consult-ing nnd ndvlsory party, this government lino been almost continuously called upon by ono or another, and In turn by all of tho llvo Central American republics, to exert Itsolf for tho mnlntonanco of tho conventions, Nearly ovory complaint has been ngnlnst tho Zolayn government of Nlcnrnguu, which hna kept Central America Amer-ica In constant tension nnd turmoil. Tho responses mado to tho representations of Contral American republics, ns duo from the United States on nccotmt of Its relation rela-tion to tho Washington conventions, have boon at all times conservative and have nvolded, so far ns possible, nny scmblanco of Interference, nlthough It Is vory nppar-ont nppar-ont that the considerations of geographic geograph-ic proximity to tho canal zono and of tho very substantial American Interests In Contral America give to tho United States a speclaf position In tho zona of theso republics and tho Caribbean sea. J need not rehearse hero tho patient offorts of this government to promote pence nnd welfnro among Uicho republics, repub-lics, efforts which aro fully appreciated by tho majority of thorn, who aro loyal to their truo Intorests, It would bo no less unnecessary to rehoarso hero tho nnd tale of unspeakable barbarities and oppression nllegcd to have been committed commit-ted by, tho Zolaya government. Recently two Americans wero put to death by order or-der of Prosldont Zolaya hlmsolf. They woro ofllcera In tho organized forces of a revolution which was In control of nbout half of tho republic, and as such, according to tho modern enlightened practice of civilized nations, they woro entitled to bo dealt with as prlsonors of war. At tho dato when this message Is printed thlH government has terminated diplomatic relations with tho Zolaya government, gov-ernment, for reasons mado public In a communication to tho former Nicaragua charge d'affaires, and Is Intondlng to tako Buch futuro stops as may bo found most consistent with Its dignity, Its duty to American Interests and Its moral obligations obliga-tions to Central America and to civilization. civiliza-tion. 1 Department of State. ' I earnestly recommend to tho fnvor-uble fnvor-uble consideration of tho congress tho estimates es-timates submlttod by tho department of state and most especially the legislation legisla-tion suggested In tho socrtary of state's letter of this dato, whoreby It will bp posclblo to develop and mnko pormanont tha reorganization of ttio department upon modern lines In a manner to mnko It a thoroughly elllclent Instrument In tho furtherance, of our Torolgn trado and of American Interosta abroad. Tho plan to havo divisions of Lattn-Amerlcan nnd Far-Eastern affairs and to Institute a certain specialization In business with Europe and the near east will at onco command Itself. Thoso polltleo-goograph-Ical divisions and the detail from the diplomatic or consular service to tho department of a number of men who bring- to tho study of complicated problems prob-lems In different paita of the world practical knowledge recently gained on the spot, clearly Is of tho greatest advantage ad-vantage to the secretary of state In foreseeing conditions likely to arise and In conducting tho great variety of corru- rpondenca and negotiation. It Bhould bo remombored that such facilities exist In the foreign offices of alt tho leading commercial com-mercial nations and that to deny thorn, to tha sccrotnry of stnto would ho to plnco this government nt a great disadvantage disad-vantage In tho rivalry of commercial competition. Tho consular service hns been Improved Im-proved under tho law of April B, 1900, and tho executive order of Juno 27, 1W, nnd I commend to your consideration tho question of embodying In n statute tho principles of the. present cxccutlvo order upon which tho eluclcncy of our consular servifco is wholly dependent. Expenditures and Revenues. Pcrhnps tho most important question prcaontcd to this administration Is that of economy In expenditures and sulll-clcncy sulll-clcncy of revenue. Tho deficit of tho. last fiscal year, nnd tho certain deficit of tho current year, prompted congress to throw a greater responsibility on tho oxecutlvo nnd tho secretary of tho treasury than had heretofore been do-clnrcd do-clnrcd by atntuto. This doolnrntlon Imposes upon tho secretary of tho treasury tho duty of assembling all tho estimates of tho oxecutlvo departments bureaus and olllces of tho expenditures necessary In tho ensuing' fiscal year, and of "malting an estlmato of tho revenues reve-nues of tho government for tho same period; and If a probable deficit Is thus shown. It Is mado tho duty of tho president presi-dent to recommend tho method by which such deficit can bo met. The report of tho socrotary shown that ho ordinary nxpendltures for tho current fiscal yonr ending' Juno 30. 1010. will exceed tho estimated rocolptn by $34,075,020. , It to this doftolt Is ndded tho sum to bo disbursed for tho Panama Pan-ama Canal, amounting to 33S.000.000, and $1,000,000 to bo paid on tho public debt, tho deficit of ordinary receipts nnd expenditures "will bo InoreaHod to a total deficit ot f73.07C.020. This deficit def-icit tho Hocrotury proposos to meet by tho proceeds of bonds Issued to pay tho cost of constructing tho Panama Canal. I approvo thla proposal. In order to avoid a deficit for tho onmilnK fiscal yoar, I directed tho heads of departments In tho preparation prepara-tion of their estimates to malco thorn bb low as possible consistent with Imperative Im-perative govornmnntnl necessity. Civil Pensions. I am awaro that thero Is a ntronjr fooling In both houscM of congress, and possibly In tho country, against tho establishment of civil pensions, and that thin has naturally grown out of tho heavy burden of military pensions, which It hns vlways been tho polloy of our government to nssumo; but I am Strongly convinced that no other prnctlcal solution of the dlfllcultloH presented by tho superannuation of civil servnntB enn bo found than, that of n system of civil pensions. Frauds in tho Collection of Customs. I regret to refer to tho fnct of tho dlscovory of extonidvo frauds In tho collection of tho customs revonuo at Now York city, In which a number of tho subordinate employcH In tho weighing weigh-ing nnd other departments wero directly di-rectly concerned, nnd In which tho beneflclurlcs wero tho Amorlcnn Sugar Hollaing- Company and others. Tho frauds consisted In tho payment of duty on undorwolghtn of sugar. Tho government has recovered from tho American Sugar Refining Company nil ttmt-ttifrnhowjJ.UttUvntfltruA3l od of. The sum was received In full of the amount duo. which might havo boon recovered by civil suit against tho boneftclary of tho fraud, but there waa an express reservation In tho contract con-tract o(f settlement by which tho settlement settle-ment s'hould not Interfere with, or prtfi-vent prtfi-vent tho criminal prosecution of ovory ono who was found to bo subject to tho samo. Criminal prosecutions nro now proceeding- against a number of tho government gov-ernment ofllcerH. Tho treasury department de-partment and tho department of Justice Jus-tice aro oxertlnff every effort to discover dis-cover all tho wrongdoers. Including tho ofllcers and cmployoH of tho companies com-panies who may havo boon privy to tho fraud. It would soem to mo that an Investigation of tho frauds by congress con-gress nt presont, pending- tho probing-by probing-by tho treasury department nml tho department of justice, as proposed, might by giving Immunity and other-wlno other-wlno provn an embarrassment In soour-ltiK soour-ltiK conviction of tho guilty parties. The Tariff Act. Two featurofl of tho now tariff not call for spoclal reference. Uy virtue of tho clause known ns tho "maximum and minimum" clause. It is tho duty of tho oxecutlvo tp consider tho laws and practices of othor countries with reforonco to tho Importation Into thoso countries of tho products nnd merchandise mer-chandise of tho United States, nnd If tho oxecutlvo finds such laws and prnc-tlcos prnc-tlcos not to bo unduly discriminatory ngalnst tho United States, tho minimum mini-mum duties provided in tho bill aro to go Into force. Unless the president makes such a finding, then the maximum maxi-mum duties provided In tho bill, that is, an lneroaso of 2f pur cent, ad valorem valo-rem over tho minimum duties aro to bo In forco, Koar has been expressed that this power conferred atid duty Imposed on tho executive Is likely to lead to a tariff war. I bog to express tho hnpo and belief that no such result need be anticipated Tho discretion granted to tho oxecutlvo oxecu-tlvo by tho terms "unduly diner w-Inatory" w-Inatory" Is wide. In order that the maximum duty shall bo charged nifulnst the Imports from a country. It Is necessary neces-sary that ho shall find on tho part of that country not only discriminations In Its laws or the practice under them ngalnst tho trado of tho United States, but that tho discriminations found shall bo undue; th'U Is, without good and fair reason. I conceive that this power was reposed In tho president with tho hopo that the maximum duties du-ties might never b applied In any enso. but that the power to apply thorn would enable tho prusldHiit und tho state department de-partment through friendly negotiation to secure the elimination from the lnwH and tho practice under them of any foreign country of that which Is unduly un-duly discriminatory, No one In seeking seek-ing a tariff war or a condition In which tho spirit of retaliation shall bo aroused. Needs of the Navy. Tho roturn of tho battleship fleet from Its voyngo around tho world, In mOro ofllclont condition than whon It started, was a noteworthy eyonl of Interest nllko to our citizens and the naval authorities of tho world. Hooldos tho beneficial atid far-reaching effoct on our porsonul and diplomatic relations In tho countrlos which the fleet visltod, tho marked suo-ccsb suo-ccsb ofvlhe ships In steaming around the world In all weather In schedule time lias Increased respect for our nay and kHfll has ndded to our nntlonnl prestige- WkaWn Injunctions Without, Notice. Hjl Tho plutform of tUo titlccobsful party In iLI tho last election contained tho following:1 bLI 'Tho Republican party will uphold at HH nil times the authority and integrity of M--WM tho courts, stnto hnd federal, and will' H over Insist that tholr powers to enforce H their process find protect llfo, liberty, BsH and property shall bo prosorved Inviolate. H Wo believe, however, that tho rules of M--M procedure in the fcdornl courts with re' jH spect to tho Issuance of tho writ of In- HLI Junction should bo more ncctiratoly do- IHH fined by statute and that no Injunction HjB or temporary restraining ordor should be HB Issued without notice, except whero lr- H rnparablo Injury Would result from delay, BB In which case a speedy hearing thore- after Bhould bo granted." H I recommend that' in compliance with jH the promise thus mado appropriate legls- ---W latlon bo adopted. Tho ends of Juotlco H will host bo mot nnd tho chlof cause of B complaint ngnlnst Ill-considered Injtinc- tlons without notice will bo romovod by H tho enactment ot a statute forbidding iiH hereafter tho Issuing of nny Injunction H or restraining ordor, whether temporary bbbH or pormanont, by nny federal court, iLILH without previous nottco and u rousonablo H opportunity to bo heard on behalf of tho H parties to bo enjoined: unless It shall up- Lslfll pear to tho satisfaction of tho court that tiLiH tho delay necessary to .give such notlco H nnd hearing would result In Iriopnrnblo sLliB Injury to tho complainant and unless also B tho court shall from tho evidence mnko jH a written finding, which shall bo spread H upon the court minutes, that lmmudlato H und trrcpnrablo Injury Is likely to ennuo H to tho complainant, and shall doflno the H Injury, stnto why it Is Irreparable und H shall also ludorso on tho order Issued tho iLLifl dato and tho hour of tho issuance of tho LLLm ordor. Moreover, every such Injunction jH or restraining ordor Issued without pro- JJH vIouh notlco nnd opportunity by tho do- fondant to bo heard should by forco of tho stututo to explro and ba of no ofTcct jmmM nftor seven dayB Xrom tho lsaunnco thoro- ot or within any tlmo less than that po- 'JmmLLA rlod which tho court may fix, unlosa H within tho Injunction or ordor Is ox- jfl tended or rouvwod nftor previous notlco and opportunity to bo heard. H Second-Class Mail Matter. H Tho deficit every yonr In tho post- -J ofltco department la lurgcly caused by tho low rate of postage of ono cent u pound !H charged on sccond-clnsa mall matter, m which Includes not only noWspaporo but mngazlncs und miscellaneous periodicals. Tho actual loss growing out of thu trans- 'H mission of this second-clans innll matter H nt one cent a pound amounts to nbout H $03,000,000 n year. Tho average cost of tho H transportation of this matter Is more than ,IH nine couts n pound. It appears that tho avorago distance ov- 'iftiLH or which nuwspapers nro dcllvored to liiLH their customern Is 91 miles, while tho jH averago haul of magazines Is 1,019, nnd of miscellaneous periodicals 1.12S miles. jH Thus, tho avorago haul of tho maguzluo fkmkm Is three und ono-half times nnd that of ILiH tho miscellaneous periodical nearly four fl times tho haul ot tho dally nowspaper, yet jH all uf them pay the samo postage rnto of fl opo cent a pound. Tho statistics ot 1907) IH show that sccoud-clnsM mall matter con- LWW stltuted C3.01 per cent, of tho weight of' HmL all tho mall, and yielded only 5.19 por cont. fk of tho revenue, mLLm Tho ilgurca given aro startling, v nnd H show thu payment by the government 4oB , '(LiH an enorrnoiiH subsidy to tho' iH!WFrtern. - . lf.. jH nmKatn&flulSpjlofljculsz"nd coitfrau-, "" 'JWmmmt may"vcUonsldcrvrhutber raiUcaiEtoprt5SlW3iB should not bo tnkon tduc-fho dcllcTtT" ' H In tho postofllco department caused by ' V H this discrepancy between tho actum' cost H ot transportation and tho compensation H exacted therefor. i H A great saving might be made, amount- i JH Ing to much more than half of tho loss ' H by Imposing upon magazines and perl- H odlcals 11 higher rate of postage Tlioy H aro much heavier than newspapers and H contain a much higher proportion of nd- H vortlslng to reading mutter, and tho aver- ' H ago distance of their transportation la H tin co and a half times ns great. ) H Postal Savlngo Banks. '! LL Tho second subject worthy of mention ' In tho postofllco department Is tho real H necessity and entire practicability of es- ' H tabllshlug postal Havings banks, Tho sue- . H ceHHful party at tho last election declared In favor of postnl savings banks, and nl- t H though the proposition finds opponents In 1 many parts of tho country, T am con- H vlnced that tho people deslro such banks, m and am Hiiro that when tho banks are fur- '; H nlslutd they will bo productive of the lit- LH most good, j H Favors Ship Subsidy. " Following tho course of my dlstln- ( LH gulshed predoccsnor, I earnestly rccom- "J H mond to congross tho consideration and , , mmm passage of n ship subsidy bill, looking to ! JmU tho establishment of Hues between our -, Atlantic seaboard nnd the eastern coast of South America, as well as linos from '' tho west coast of tho United States to ; H South America. China, Japan and tho j jH Philippines Tho profits on foreign mails if kH are perhaps a sufllclont nyasuro of tho H H expenditures which might first bo tontn- R jlH tlyely applied to this method or Inducing 3tH American capital to undertake tho ostnb- lLfl llshmeut of Amorlcnn hues of steamships' (H In thoso directions In which wo now feel H It most Important that wo should hnvo H means of transportation controlled In tho " , H interest of tho expansion of our trade. A H It'll of this character has once passed the 1 H houso and more than once passed, tho ; H senate, nnd I hopo that at this session a H bill framed on the samo lines und with -. H tho same pur pouts rimy become a law. B H Conserving National Resources. if H In several departments thero is present- .1 , If' H ed tho necessity for legislation looking to t H the further conservation of our national , resourios, nnd the subject Is ono of such rl, ( H importance as to require a moro detailed j H and extended dlsiusslon than enn bo en- '1 H to red upon In this communication. For B that reason I shall take an early oppor- "' H tunlty to send a special messago to con- -f J B gress on the subject of the Improvement g A Hja of our waterways, upon tho reclamation t J HJ nnd Irrigation of arid, soml-arld, and V 1 ja swamp lauds, upon tho preservation of V; f 1 our forests and tho reforesting of suit- fy HJ able areas, upon the reclassification of S HJ tho public domain with it view ot sep- HJ aratlng from agricultural settlement mln- t Hj ern, coal, and phosphate lands nnd sites f HJ belonging to the government bordering on M HJ streams suitable for the utilization of ! HJ water .power j' HJ Political Contribution. 1 I urgently recommend to congress thnt H a law bo passed requiring thut candl- A H dntos In elections of member qt tho &2 HI houso of representatives nnd commlttcco 11 H In charge of their candidacy nnd cam- HJ palgn file In n proper ofllce of the United 'I 'HJ States government a statement of tho M HJ contributions received and of the expon- 4 HJ dltures Incurred in tho campaign for such HJ elections and that similar legislation he 1 HJ enacted n rospect (o all ot(icr elections 1 HJ which aro eonatltutlonally within tho c'on I HJ trol of congress, H ft t I'l 11 m Ah |