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Show Panama canal will find this the only great commercial nation unable to OF YEAR avail In international maritime business of this great contribution to the means of the world's commercial Intercourse. REVIEWED RV Governmental Expense. To no one subject does he devote more space than to the expense of PRESIDENT conducting the various government departments and the urgent need for economy, and In this connection he says: Every effort has been made by department chief to reduce the Affairs of State Are Dealt With each estimated cost of his department for the ensuing fiscal year ending June at Length in Annual 30, 1912. I say this In order that conMessage. gress may understand that these estimates thus made present the smallest sum which will maintain the departments, bureaus and offices of the govBUT LITTLE ABOUT TARIFF ernment and meet Its other obligations under existing law, and that a cut of these estimates Would result In embarrassing the executive branch of the government In the performance President Discusses Work of of its duties. This remark does not apply to the river and harbor estiTariff Board Ship Sub mates, except to those for expenses of maintenance and the meeting of obliIs sidy Urged. gations under authorised contracts, nor does it apply to the public building bill nor to the nvy building program. Of course, as to these conWORK ON CANAL gress could withhold any part or all PANAMA of the estimates for them without Interfering with the discharge of the ordinary obligations of these functions of Its bureaus ana ofNeed of Legislation Anticipating Com- fices. departments, pletion of the Ditch la Pointed The final estimates for the year Out Change in Postal Rates ending June 30, 1912, as they have been sent to the treasury on NovemParcels Post and Postal ber 29 of this year, for the ordinary Savings Economy expenses of the government, including Urged. those for public buildings, rivers and harbors, and the navy building pro6. President Deo. Washington, gram, amount to $630,494,013.12. This Tafts annual message to congress is $62,964,887.36 less than the apcontained 40,000 words, and is said to propriations for the fiscal year endbe the longest document of Its kind ing June 30, 1911. It Is $16,883,153.44 ever written. In It he reviews the less than the total estimates, Includwork of each of the administrative ing supplemental estimates submitted departments beginning with the state to congress by the treasury for the department. He devotes considerable year 1911, and is $5,574,659.39 less apace to the satisfactory settlement than the original estimates submitted of the fisheries dispute with England by the treasury for 1911. "These fiugres do not Include the through the medium of the Hague Tribunal, and recounts both the his- appropriations for the Panama canal, tory of the fisheries dispute and the the policy In respect to which ought to be, and is, to spend as much each establishment of the tribunal. In connection with the state departyear as can be economically and efment he tells of the Important poli- fectively expended, in order to comtical happenings of the past twelve plete the canal as promptly as possimonths throughout the entire world, ble, and therefore, the ordinary moand the action of this country In con- tive for cutting down the expense of the government does not apply to apnection with them. propriations for this purpose. Tariff Negotiations. Against the estimates of expendinew to of the Referring negotiation tures, $640,494,013.12, we have estimattariff agreements President Taft ed. receipts for next year $680,000,000, ays: a probable surplus of ordinary "The new tariff law. In Section 2, making over receipts ordinary expenditures of minirespecting the maximum and about $50,000,000, or taking Into acmum tariffs of the United States, count the estimates for the Panama which provisions came Into effect on canal, which are $66,920,847.69, and April 1, 1910, Imposed upon us re- which will ultimately be paid In bonds, sponsibility of determining prior to it will leave a deficit for the next that date whether any undue discrimof about $7,000,000, If congress ination existed against the United year shall conclude to fortify the canal. States and Its products in any counThe Tariff. try of the world with which we susThe President devotes but little tained commercial relations. In the case of several countries In- space to the subject of the tariff law, of It he says: stances of apparent undue discrimina- andThe schedules of the rates of duty tion against American commerce were In the Payne tariff act have been subfound to exist. These discriminations to a great deal of criticism, were removed by negotiation. Prior jected some of it Just, more of It unfounded, to April 1, 1910, when the maximum and to much The misrepresentation. tariff was to come into operation with act was In pursuance of a respect to Importations from all those declarationadopted by the party which Is recountries In whose favor no proclamafor it that customs bill sponsible tion applying the minimum tariff should be a tariff for the protection should be Issued by the president, one of home Industries, the measure of hundred and thirty-fou- r such proclathe protection to be the difference bemations were Issued. tween the cost of producing the imThis series of proclamations emarticle abroad and the cost of braced the entire commercial world ported It at home, together with producing and hence the minimum tariff of the such to that difference as addltlpn United States has been given univergive a reasonable profit to the sal application, thus testifying to the might home producer. The basis for the satisfactory character of our trade criticism of this tariff Is that In rerelations with foreign countries. spect to a number of the schedules Marked advantages to the comthe declared measure was not followmerce of the United States were obed, but a higher difference retained or tained through these tariff settleInserted by way of Undue discriminaments. tion In favor of certain Industries and "The policy of broader and closer manufactures. if any, of the trade relations with the Dominion of criticism of the Little, tariff has been directCanada which was Initiated in the aded against the protective principle justment of the maximum and mini- above stated; but the main body of mum provisions of the tariff act of the criticism has been based on the August, 1909, has proved mutually attempt to conform to the measure of beneficial. It Justifies further efforts protection was not honestly and sinfor the readjustment of the commercerely adhered to. cial relations of the two countries so The Tariff Board. that their commerce may follow the The refers to the appointpresident channels natural to contiguous countries and be commensurate with the ment of a board of experts to Investithe cost of production of various steady expansion of trade and Indus- gate included In the schedules of try on both sides of the boundary articles the tariff, and says: Rim. The tariff board thus appointed Ship Subsidy. and authorized has been diligent In The president urges such action as preparing itself for the necessary Inhe believes will Increase American vestigations. The hope of those who trade abroad, and says: have advocated the use of this board "Another Instrumentality Indispenfor tariff purposes Is that the question sable to the unhamapered and natural of the rate of a duty Imposed shall development of American commerce Is become more of a business question merchant marine. All maritime and and less of a political question, to be commercial nations recognize the imascertained by experts of long trainportance of this factor. The greatest ing and accurate knowledge. The commercial nations, our competitors. halt in business and the shock to busiJealously foster their merchant ma- ness, due to the announcement that a rine. Perhaps nowhere Is the need new tariff bill Is to be prepared and for rapid, and direct mall, passenger put In operation will be avoided by and freight communication quite so treating the schedules one by one as urgent as between the United States occasion shall arise for a change in and Latin America. We can secure the rates of each, and only after a reIn no other quarter of the world such port upon the schedule by the tariff Immediate benefits In friendship and board competent to make such report. commerce as would flow from the es- It Is not likely that the board will be tablishment of direct lines of com- able to make a report during the presof ent session of congress on any of the munication with the countries Uatln America adequate to meet the schedules, because a proper examinarequirements of a rapidly increasing tion involves an enormous amount of detail and a great deal of care; but I appreciation of the reciprocal dependence of the ceuvtries of the western hope to be able at the opening of the new congress, or at least during the hemisphere upon each other's prod-netsession of that congress, to bring to sympathies and assistance. Its attention the facts In regard to I alluded to this most Important annual those schedules In the present tariff It last In message; my subject has often been before you and I need that may prove to need amendment Our Island Possessions. not recapitulate the reasons for Its Unless prompt acDuring the last summer, at my recommendation. tion be taken the completion of the request the secretary of war visited IRK IRE s, ) the Philippine Islands and has deHe scribed his trip in the report found the islands in a state of tranquillity and growing prosperity, due largely to the change in the tariff laws, which haa opened the markets of America to the products of the Philippines, and has opened the Philippine markets to American manufactures. The year has been one of prosperity and progress in Porto Rico. Panama Canal. "At the instance of Colonel Goeth In officer ala, the army engineer charge of the work on the Panama canal, I have Just made a visit to the Isthmus to Inspect the work done and to consult with him on the ground as to certain problems which are likely to arise In the near future. The progress of the work Is most satisfactory. If no unexpected obstacle presents Itself, the canal will be completed well within the time fixed by Colonel Goethals, January 1, 1915, and within the estimate of cost, $375,000,000. Among questions arising for present solution is the decision whether the canal shall be fortified. I have already stated to the congress that I strongly favor fortification and I now reiterate this opinion and ask your consideration of the subject in the light of the report already before you made by a competent board. Another question which arises for consideration and possible legislation Is the question of tolls in the canal. This question is necessarily affected by the probable tonnage which will go through the canal. In determining what the tolls should be we certainly ought not to insist that for a good many years to come they should amount to enough to pay the Interest on the investment of $400,000,000 which the United States has made in the construction of the canal. We ought not to do this, first, because the benefits to be derived by the United States from this expenditure Is not to be measured solely by a return upon the Investment If it were then the construction might well have been left to private enterprise. My own Impression Is that the tolls ought not to exceed $1 per net ton, and I should recommend that within certain limits the president be authorised to fix the tolls of the canal and adjust them to what seems to be commercial necessity. '1 cannot close this reference to the canal without suggesting aa a wise amendment to the Interstate commerce law a provision prohibiting Interstate commerce railroads from owning or controlling ships engaged in the trade through the Panama canaL I believe such a provision may be needed to save to the people of the United States the benefits of the competition In trade between the eastern and western seaboards which this canal was constructed to secure." Department of Justice. Discussing the affairs of the department of Justice, the president to-wl-t, says: I Invite especial attention to the prosecutions under the federal law of the bucket shops, and of those schemes to defraud in which the use of the mail is an essential part of the fraudulent conspiracy, prosecutions which have saved Ignorant and weak members of the public and are saving them hundreds of millions of dollars. The violations of law present perhaps the the anti-trumost Important litigation before the department, and the number of cases filed shows the activity of the government In enforcing that statute. In a special message last year I brought to the attention of congress the propriety and wisdom of enacting a general law providing for the incorporation of Industrial and other companies engaged In Interstate commerce, and I renew my recommendation In that behalf. The crying need In the United States of cheapening the cost of litigation by simplifying Judicial procedure and expediting final Judgment Is pointed out and action looking to correction of these evils is urged. The president recommends an increase in the salaries of federal judges. Postal Savings Banks. At its last session congress made of p rovision for the establishment savings banks by the postofflee department of this government by which under general control of trustees, consisting of the postmaster general, the secretary of the treasury and the attorney general, the system could be begun In a few cities and towns, and enlarged to cover within its operations as many cities and towns and as large a part of the country as seemed wise. The initiation and establishment of such a system has required a great deal of study on the part of the experts In the postofflee and treasury departments, but a system has, now been devised which Is believed to be more economical and simpler In its operation than any similar system abroad. Arrangements have been perfected eo that savings banks will be opened in some cities and towns on the 1st of January, and thpre will be a gradual extension of the benefits of the plan to the rest of the country. It Is gratifying, says the president, "that the reduction in the postal deficit has been accomplished without any curtailment of postal facilities. On the contrary, the service has been greatly extended during the year In all its branches. d Second-Clas- s Mall. In my last annual message I Invited the attention of congress to the inadequacy of the postal rate Imposed mall matter In so upon second-clas- s far as that Includes magazines, and showed by figures prepared by experts of the postofflee department that the government was rendering a service to the magazines, costing many millions in excess of the compensation lands are permitted to be sold Is $10 portation, under the Erdman act. Jointan acre; but the secretary of the In- ly with the chairman of the Interstate paid. An answer was attempted to terior has the power to fix a maximum commerce commission. this by the representatives of the price and to sell at that price. 1 cannot speak In too high terms at of ail the coal supply th success of the two officers in com "As magazines, and a reply was filed to this answer by the postofflee departIs held by the government, it seems dilation and settlement of controverment. The utter Inadequacy of the wise that It should retain such con- sies which, but for tbelr Interposition, answer, considered in the light of the trol over the mining and the sale as would have resulted disastrously to all reply of the postofflee department, I the relation of lessor to lessee fur- interests. think must must appeal to any nishes. Civil Service Commission, The secretary of the Interior thinks person. Whether the answer "The civil service commission ban was all that could be said in behalf of there are difficulties in the way of continued its useful duties during tha the magazines Is another question. I eabing public coal lands, which ob- year. The for the mainte necessity reagree that the question is one of fact; jections he has set foith In his nance of the of the civil but I Insist that If the fact Ib as the port, the torce of which I freely con- service law wasprovisions never than togreater experts of the postofflee department cede. 1 entirely approve his stating day. Officers responsible for the polshow, that we are furnishing to the at length in his report of the objecand their icy of the owners of magazines a service worth tions in order that the whole subject Immediate administration, personal assistants or depumillions more than they pay for It, may be presented to congress, but ties, should not be Included within tha then Justice requires that the rate alter a full consideration, for the rea-on- classified service, but In my JudgI have given above, I favor a should be Increased. The increase In ment, public opinion has advanced to the receipts of the department result- leasing system and recommend it the point where it would support a bill ing from this change may be devoted Water Power Sites. providing a secure tenure during effito increasing the usefulness of the dePrior to March 4, 1909, there had ciency for all purely administrative partment in establishing a parcels been, on the recommendation of the officials. I entertain the profound s post and in reducing the cost of reclamation service, withdrawn from that It would greatly aid tb postage to one cent. It has been agricultural entry, because they were cause of efficient and economical gov said by the postmaster general that a as useful for power sites cm men t and of better politics If confair adjustment might be made under regarded which ought not to be disposed of as gress could enact a bill providing that which the advertising part of the agricultural lands, tracts amounting the executive shall have the power magazine should be charged for at a to about 4,000,000 acres. The withto Include In the classified service all of different and higher rate from that were hastily made and In- local offices under the treasury depart drawals the reading matter. This would re- cluded a great deal of land that was ment, the department of Justice, tbs . lieve many useful magazines that are useful for power sites. They were postofflee department, the Interior denot circulated at a profit, and would not to Include the power sites partment and the department of comnot shut them out from the use of the Intended on 29 rivers in 9 states. Since that merce and labor, appointments to malls by a prohibitory rate. time 3,475,442 acres have been re- which now require the conflrmatioi With respect to the parcels post, I for settlement of the original of the senate, and that upon suck stored respectfully recommend its adoption 4,000,000 because they do not con- classification the advice and consent on all rural delivery routes, and that new of the senate shall cease to be r 11 pounds the International limit be tain power sites; and meantime, made have been withdrawals which, By qulred In such appointments. made the limit of carriage In such with other restorations based upon their certainty of tenure, dependent oo post. field examination, result In withdrawgood service, and by their freedom Abolish Navy Yards. als at present effective of 1,218,356 from the necessity for political actlv The president calls attention to cer- acres on vacant public land and 202,-19lty, these local officers would be Intain reforms urged by the secretary of acres on entered public land, or a duced to become more efficient publle the navy which he recommends for total of 1,420,553 acres. These with- servants. adoption, and continues: drawals made from time to time cover Economy and Efficiency. The estimates of the navy departall the power sites Included In the The increase In the activities and ment are $5,000,000 less than the ap- first withdrawals and many more, on In the annual expenditures of the fedpropriations for the same purpose last 151 rivers and In 12 states. The dis- eral government has been so rapid year, and Included In this Is the build- position of these power sites involves and so great that the time has com! ing program of the same amount as one of the most difficult questions pre- to check the expansion of government that submitted for your consideration sented In carrying out practical con- activities In new directions until ws last year. It Is merely carrying out servation. have tested the economy and efficiency the plan of building two battleships a The subject Is one that calls for with which the government of today it year, with a few needed auxiliary ves- new legislation. It has been thought being carried on. The responsibility sels. I earnestly hope that this pro- that there was danger of combination rests upon the bead of the admtnlstm gram will be adopted. to obtain possession of all the power tlon. He Is held accountable by tbs The secretary of the navy has sites and to unite them under one public, and properly so. Despite tbs given personal examination to every control. Whatever the evidence of unselfish and patriotic efforts of tbs navy yard, and has studied the uses this, or lack of It, at present we have heads of departments and others of the navy yards with referenoe to had enough experience to know that charged with responsibility of goverm the necessities of our fleet With a combination would be profitable, and ment, there haa grown up In this corns fleet considerably less than halt the the control of a great number of pow- try a conviction that the expenses ol size of that of the British navy, we er at will within certain sections. government are too great The fu have shipyards more than double the "However this may be, it is the damental reason for the exlsteoce m number, and there are several of these plain duty of the government to see detected of waste, duplication, and bad shipyards expensively equipped with to It that In the utilisation and devel- management Is the lack of prompt so modem machinery, which, after Invesopment of all. this Immense amount curate Information. I have requested the bead of each tigation the secretary of the navy be- of water power, conditions shall be lieves to be entirely useless for naval Imposed that wtll prevent extortiondepartment to appoint committees os He asks authority to abanpurposes. ate charges, which are the usual ac- economy and efllcler In .order to soB r the movement don certain of them and to move their companiment of monopoly. cure full machinery to other places, where it The question of conservation Is by the employees of the government can be made of use, not a partisan one, and I sincerely themselves. The complete success of our counI urge the continuance of the ap hope that even In the short time of try in arctic exploration should not re- the present session consideration may proprlation of $100,000 requested fot main unnoticed. The unparalleled P which the fiscal year 1912, be given to those questions achievement of Peary In reaching the have now been much discussed, and My experience leads me to bellev norths pole, April 6, 1909, approved by that action may be taken upon them. that while government methods are critical examination of the most exmuch criticised, thajbad results If wa Alaska. pert scientists, has added to the disdo have bad results are not due to With reference to the government tinction of our navy, to which he beof seal or wllllnpess on the part lack of Alaska, I have nothing to add to longs, and reflects credit upon bis the civil servants. of In I made recommendations the my country. I recommend fitting recogniInterstate Commerce. tion by congress of the great achieve- last message on the subject I am There has not been time to iest the characthe convinced that migratory ment of Robert Edwin Peary. ter of the population, its unequal dis- benefit and utility of the amendments Conservation. tribution, and its smallness of num- to the interstate commerce law conThe subject of the conservation of ber, which the new census shows to tained in the act approved June 1$; the public domain has commanded the be about 60,000, In relation to the 1910. The law as enacted did not com attention of the people within the last enormous expanse of the territory, tain all .the features which I recomtwo or three years. make It altogether impracticable to mended. It did not specifically da There Is no need for radical regive to those people who are In nounce as unlawful the purchase by form in the methods of disposing of Alaska today and may not be there a one of two parallel and competing what are really agricultural lands. The year hence, the power to elect a leg- roads of the stock of the other. Nos present laws have worked well. The islature to govern an immense ter- did It subject to the restraining lnflu enlarged homestead law has encourritory to which they have relation so ence of the Interstate Commerce comaged the successful farming of lands little permanent. mission the power of corporations enIn the aeml-arlregions. gaged In operating Interstate railroads Pensions. to issue new stock and bonds; nor did Nothing can be more important In The uniform policy of the governthe matter of conservation than the It authorize the making of temporary In the matter of granting penment treatment of our forest lands. It was between railroads limited agreements sions to those gallant and devoted to 30 probably the ruthless destruction of men who fixing the same rates fot days, fought to save the life of traffic between the same places. forests in the older states that first In the perilous days of the called attention to the necessity for a the nation "I do not press the consideration of great civil war, has always been of halt In the waste of our resources. any of these objects upon congress at most liberal character. the Those In the present forest reserves there men are now rapidly passing away. this session. are lands which are not properly forThe Interstate commerce commla The best obtainable official statistics est, and which ought to be subject to show slon has recommended appropriations are at that rate the they dying homestead entry. This has caused of something over three thousand a for the purpose of enabling It to entet some local Irritation. We are careupon a valuation of all railroads. This month, and, in view of their advancfully eliminating Buch lands from forhas always been within the jurisdicrate must In this inevitably est reserves or where their elimina- ing years, tion of the commission, but the requiincrease. To the rapidly proportion, tion is not practical listing them for site funds have been wanting. Statisman on risked who the everything entry under the forest homestead act. field of to save the nation in tics to the value of each railroad would battle Congress ought to trust the execuIts of need we owe a be valuable for many purposes, espehour the direst tive to use the power of reservation limhas been and should cially If we ultimately enact any which not debt only with respect to land most valuof Inter the the itations power upon not be computed In a begrudging or able for forest purposes. During the state railroads to issue stocks and parsimonious spirit. 62.260,000 administration, present bonds, as I hope we may. Bureau of Corporations. acres of land largely For the protection of our own hare been excluded from forest reReferring to the report of the com- people and the preservation of our serves, and 3,500,000 acres of land missioner of corporations, the presi- credit In foreign trade, I urge upon principally valued for forest purposes dent says: congress the Immediate enactment of have been Included In forest reserves, The commissioner finds a condia law under which one who, In good making a reduction In forest reserves tion in the ownership of the standing faith, advances money or credit upon of land amounting to timber of the United States other a bill Of lading Issued by a common 2.750.000 acres. than the govlrnment timber that calls carrier upon an Interstate or foreign for serious attention. The direct in- shipment can hold the carrier liable Coal Lands. made by the commissioner for the value of the goods described vestigation imThe next subject, and one most covered an area which contains 80 In the bill at the valuation specified portant for your consideration, Is the timcent, of the privately-ownein the bill, at least to the extent of the disposition of the coal lands in the per of the ber country. advances made In reliance upon It. United States and Alaska. At the beHis report shows that one half of "I further recommend that a punishthere administration of this ginning the timber in this area Is owned by ment of fine and Imprisonment be imwere withdrawn from entry for pur200 individuals and corporations; posed upon railroad agents and shipposes of classification 17,867,000 acres. that 14 per cent is owned by these pers for fraud or misrepresentation in Since that time there have been withthere is very connection with the issue of bills of drawn by my order from entry for corporations, and that of stock, lading issued upon Interstate and forclassification 78,977,745 acres, making extensive a total withdrawal of 96,844,746 acres. as well as other circumstances, all eign shipments. Meantime of the acres thus with- pointing to friendly relations among "Except as above, I do not recomown a majority of this timmend any amendment to the Interstate drawn 1,061,889 have been classified those who which might lead commerce law as It stands. I do not and found not to contain coal and ber, a relationship for the maintenance combination a to ento now recommend any amendment to have been restored agricultural of a price that would be very detri- the anti trust law. In other words, It try, and 4,726,091 acres have been and seems to me that the existing legislamental to the public Interest, classified as coal lands; while 7,993,239 of removfrom withdrawn acres remain tion with reference to the regulation entry would create the necessity In addition ing all tariff obstacles to the free im- of corporations and the restraint of and await classification. portations of lumber from other coun- their business has reached a point 337.000 acres have been classified as tries." coal lands without prior withdrawal, where we can stop for a while and witBureau of Labor. ness the effect of the vigorous executhus Increasing the classified coal The commissioner of labor has been tion of the laws of the statute books lands to 10,429,372 acres. Under the laws providing for the actively engaged In composing the dif- In restraining the abuses which oei tainly did exist and which roused tha disposal of coal lands in the United ferences between employers and emStates, the minimum price at which ployees engaged In Interstate trans public to demand reform. one-thir- d d con-rlctio- n first-clas- 7 d d p ' |