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Show those for public buildings, rivers and harbors, and the naw building program, pro-gram, amount to -S'0.40 1.01.1- This la !?ii2,'Jti I,SS7 loss than the appropriations appropria-tions for the fiscal year ending June .10, 1011. These flxurfH do net Include In-clude the appropriations for the Pan-j Pan-j ama canal I (Continued on Pace Two) TAFT jjj MMl Law Regulating the Issuing of Injunctions Without Notice Should Be PassedPostal Savings Bank to Spread-Franking Privileges to Be Controlled by Issue of Special Stamps-Retrenchment in AH Government Departments-Canal Progress. TARIFF CHANGES SHOULD BE UNDER, THE CONTROL OF A COMMISSION Parcels Post to Be Extended and Include Eleven-Pound PackagesModifications PackagesMod-ifications of Eight-Hour Law Commission for AlaskaMore Executive Power (o Reserve Forest Land Leasing of Coal and Oil Lands.-.Postage On Magazines Maga-zines to Be Increased Civil Service to Embrace Postmasters. which prevented their ready adherence. adher-ence. The policy of this government In this matter has been directed by a desire to make nso of American capital cap-ital In the development and promotion promo-tion of China's welfare ami material prosperity without prejudice to her legitimate le-gitimate lights as an independent political po-litical power. The treaty annexing Korea to the empire of Japan, promulgated Aug. 29, 1910, marks the final step In a process of control of the ancient empire em-pire by her powerful neighbor that has been lu progress for several years past. In communicating the fact of annexation, an-nexation, the Japanese government gave to the government of the United States assurance of the full protection protec-tion of the right of American citizens citi-zens in Korea under the changed conditions. con-ditions. Latin America. During the past year several of our southern sister republics celebrated the one hundicdth anniversary of their Independence. In honor of these events, special embassies were sent from this country to Argentina, Chile and Mexico, where the gracious reception recep-tion and splendid hospitality accorded them manifested the cordial relations nnd friendship existing between those countries and the United States, relations, rela-tions, I am happy to say, have never been on so high a plane and so solid a basis as at present President Taft refers to the work of the fourth Pau-Amerlcan conference confer-ence which met In P.uenos Ay res during dur-ing July and August last, and says; The special cordiality between re-u-scntalivo men from all parts of America Am-erica which was shown at this con-leience con-leience cannot full to react upon aud ('raw still closer the relation between Uie countries which took part in it. The International riureau of American Am-erican Republics Is doing a broad and useful work for Pun-Amerlcun commerce com-merce and comity. 1 am glad to say that the action of the United Slates fa Its ltslre to remove re-move imminent danger of war. b tween Peru aud Ecuador, growing - at 1 of a boundary dispute, with the co-vueratlon co-vueratlon of Drazll and the Argentine Republic as Joint mediators with this government, has already resulted successfully suc-cessfully in preventing war. The in estimable value of cordial co-opera-llon between the sister republics of America for the maintenance and I race In this hemisphere has never been more clearly shown than in this mediation, by which three American governments have given to this hemisphere hemi-sphere the honor of first Invoking the most far-reaching provisions of The Hague convention for the pacific settlement set-tlement of International disputes. There has been signed by the representatives rep-resentatives of tho I nlted States and Mexico a protocol (submitted to the United States-Mexican boundary commission, com-mission, whose membership for the purpose of this case la to be increased in-creased by the addition of a citizen of Canada, on the question of sovereignty sovereign-ty over the Chamltsal traci which lies within the present physical boundaries in the City of Ei Paso. Texas. The determination of this question will remove re-move a source of no little annoyance to the two governments. During Ihe past year the lepubllc of Nicaragua has been the center of Internecine struggle. General Zel-aya, Zel-aya, for seventeen years Hie absolute ruler of Nicaragua, was, throughout hi:, career, the disturber of Central America and opjosed to every plan for the promotion of peace and friendly friend-ly relations between the five republics repub-lics The president then reviews the rebellion and the "unwarranted execution execu-tion of two American citizens, who bad regularly enlisted In the ranks ol the revolutionists" wh.cli involved the breuking off of all diplomatic relations re-lations with the Zelaya government. The moderation and conciliatory spirit shown by the various factions, gies ground for the confident hope tnat Nicaragua will soon take Its ightful place among the law-abiding and progressive countries of the world. It gratifies me exceedingly to announce an-nounce that the Argentine republic some months ago placed with Amerl can manufacturers a contract for the construction of two battleships. Tariff Negotiations. The new tariff law In section 2, respecting re-specting the maximum and minimum tariffs of the United States, which piovlsions came into effect April 1, 1910, imposed upon the President responsibility of determining prior to that date whether auy undue discrimination discrim-ination existed agalnat the United States an dits products lu cny country of the world with which wo sustained commercial relations. lu the case of several countries instances in-stances of apparent undue discrimination discrimina-tion against American commerce were femd to exist. These discriminations were removed by negotiation. Prior to April 1, 1910, when the maximum tr-iff was to come into operation with refpect to importations from all these countries In whose favor no proclama-lion proclama-lion applying the minimum tariff should be issued by the president, 121 such proclamations were issued. This series of proclamation-! embraced the entire commercial world and l.cnce the minimum tariff of the United Unit-ed States has been given universal ap-1 plication, thus testifying to the satisfactory sat-isfactory character of our trade relations rela-tions with foreign countries. Marked advantages to the commerce of Ihe United Stales were obtained throughout these tariff settlements. The policy of broader ami closer 1 trade relations with the Dominion of j Canada which was Inltlatcj in an ad ' Juaunent of the maximum and mini- I mum provisions of the tariff act of August. 1909. has proved mutually beneficial. It justifies further efforts ef-forts for the readjustment of the commercial com-mercial relations of the two countries so that their commerce may follow the channels natural to contiguous countries and be commensurate with the steady expansion of trade and industry in-dustry on both bides of the boundary 1 1 tie. The Department of State. All these tariff negotiations, so vital vi-tal to our commerce and Industry, and the duty of jealously guarding the equitable and Just treatment of our product, capital and Industry abroad, devolve upon the department of state. The Argentina battleship contracts, like the subsequent Important one for Argentine railway equipment, and those for Cuban government vessels, were secured for oir manufacturers largely through the good offices of the department of state. Our foreign trade merits the best support of. the government and the rnoft earnest endeavor of our manufacturers manu-facturers and merchants, who. If they do not already In all cases need a foreign for-eign marker; are certain soon to become be-come depeudent on It Therefore now Ifl the time to secure a strong position posi-tion In thlsfleld. I cannot leave this subject without emphasizing the necessity of such legislation leg-islation j as , will make possible and convenient the establishment of American Am-erican banks and branches of Amor-lcJaji Amor-lcJaji banks In foreign countries. Only by uch1 means can our foreign trade be'layoifaMy financed, necessary credits cred-its (be. Arranged, and proper avail be nina of commercial opportunities In foreign countries, and most eapeclaJIv ..la.ft,In AuiTlea:- ' AnvliOistrumentality indispensa ble to the unhampered and natural development of American commerce is merchant marine. All maritime and comerclal nations recognize the Importance of this factor. The greatest great-est commercial nations, our competitors. competi-tors. Jealously foster their merchant marine. Perhaps nowhere Is the need for rapid and direct mall, passenger and freight communication quite so urgent as between tho United States and latln America We can secure In no other quarter of the world such Immediate benefits In friendship and commerce as would flow from the direct di-rect establishment of communication with the Iatin America adequate to meet the demands so rapidly increasing, increas-ing, appreciation of th reciprocal dependence de-pendence of the countries of the western west-ern hemisphere upon each other's products, pro-ducts, sympathies and assistance. Unless prompt action be taken, the completion of the Panama canal will And this the only great commercial nation unable to avail In international maritime business of this great contribution con-tribution to the means of the world's commercial interccmrse. Quite aside from the commercial aspect, unless we create a merchant marine, where can we find the seafaring sea-faring population necessary ns a natural nat-ural naval reserve, and where could we find. In case of war. the transport and subsidiary vessels without which a naval fleet is arms without a body? For many reasons 1 cannot too strongly strong-ly urge upon the congress the passage pass-age of a measure by mall subsidy or other subvention adequate to guarantee guar-antee the establishment and rapid development de-velopment of an American merchant marine, and the restoration of the American flag to Its ancient place upon up-on the sens. With our increasing international Intercourse, It become9 incumbent upon up-on me to repeat more emphatically than ever the recommendation which I made in my Inaugural address, that congress shall at once give to the courts of the United States jurisdiction jurisdic-tion to punish ae a crime the violation of the rights of aliens secured by. treaty with the United Slates, in order or-der that tho general government of tho Unltd States shn! 1? able, whou called upon by a friendly nation, to redeem its solemn promise by treaty to secure to tho clllzeus or subjects of that nation resident In the United States freedom from violence and duo process of law in respect to their life, liberty and prosperity. Treasury Department. Estimates for Next Year's Expenses, Every effort has been made by each department chief to reduce the estimated esti-mated cost of his department for the ensuing fiscal year ending June .10, 1912. I say this In order that tho congress may understand that these estimates thus made preseul the smallest sum which will maintain the departments, bureaus and offices of the government-nnd meet its other obligations nder existing law, and that a cut of theso estimates would result In embarrassing the executive branch of the government in the performance per-formance of Its duties. The final estimates for Ihe year ending June 30. 1912, us thev'have been sent to the treasury, on Nov. 29 of this year, for the ordinary expenses expen-ses of the government, Including Washington, Dec G. Congress pave respectful attention to President Taft's message today, but there were Comparatively few members who were willing to concede the probability of favorable action vl the present session ses-sion on many of the recommendations contained therein. This was in view of the fact that the session will close March 4. The message was delivered to both houses by Secretary Latta soon after they convened at noon. Mr. latta oiade his appearance first in the senate, sen-ate, arriving immediately after the announcement an-nouncement of the President's intention inten-tion to communicate his views i;i "willing." Thi3 announcement was made by Senator Cullom on behalf of himself and Senator Money, who constituted con-stituted the senatorial committee to inform the President that the senate was prepared to receive recommendations recommenda-tions from him. Almost immediately afterward Mr. Iatta delivered the v message to the house. The reading of the document, which was of unusual length, was begun at 12:19 p. rn. In the senate. At first, most of the senators listened attentively, atten-tively, but gradually this attention ceased on the part of most of them, and those who remained in the cham- ( her devoted themselves to printed copies cop-ies before them. This also was the case in the house. The message follows. To the Senate aud House .of Representatives; Repre-sentatives; During the past year the foreign relations of the United States have continued upon a basis of friendship and good understanding. ..; Arbitration. The year has been notable as wit-Kessing wit-Kessing the Pacific settlement of two important international controversies before the permanent court of the llasue. The arbitration of the fisheries dispute dis-pute between the United States and ! Great Britain, which has been the source of nearly continuous diplomatic diplomat-ic correspondence since the fisheries convention of ISIS, has giveu au award which Is satisfactory to both lartlcs. This arbitration is particularly particu-larly note-worthy not only because f the eminently just results secured, , ' hut also because it is the first arbitration arbi-tration held under the geneial arbl- j tration treaty of April 4, 1908. bo- I twe-en the United States and Great Britain and disposes of a controversy ( the se-ttlement of which has resisted every other resource of diplomacy and Nbich for nearly 90 years has been the cause of friction between two countries whose common inteiest lies iu maintaining the most friendly and cordial relations with each other. The United States was ably represented repre-sented beforo the tribunal and I should be wanting in proper recognition recogni-tion of a great patriotic service if I did not refer to the lucid historical analyst of the facts and the s'.-nal ability and force of argument six days in length presented to the court 'n support of our case by Mr. Elihu Root. The tribunal constituted at The Hague, by the governments of the United States and Venezuela has completed com-pleted its deliberations and has rendered rend-ered an award in tho case ol' the Oil-''oco Oil-''oco Slvaiuship company against Venezuela. Ven-ezuela. The award may be regarded 8s satisfactory since it has. pursuant hi tho contentions of the United States, recognized a number of lm-ortant lm-ortant principle making for a Judicial Ju-dicial attitude in the determining ol international disputes. In view of grave- dJubls which had been raised as lo the constitutionality of The Hague convention for the establishment es-tablishment of an iutemational prize court, now before the Senate for ratification, rati-fication, because of that provision of the convention which provides that there may be an appeal to the proposed pro-posed court from the decisions of na tlonal courts, this government proposed propos-ed in an Identic circular note addressed address-ed to those powers who had taken rart In the London maritime confer-' ence, that the powers signatory to the convention. If confronted with some difficulty, might Insert a reservation reser-vation to the effect that appeals to the International prize court In respect re-spect to decisions of its natioual tribunals, trib-unals, should take the form of a direct di-rect claim for compensation; that the proceedings to be taken thereupon should be in the form of a trial de novo, and that Judgment of the court should consist of compensation for the illegal capture, irrespective of the decision de-cision of the national court whese judgment had thus been Internationally Internation-ally Involved. As the result of an informal in-formal discussion It was decided to provide such procedure by means i a separate proiecol which should be ratified rat-ified at the same time as the prize court convention itself. Accordingly, the government of tho Netherlands, at the reque-st of this government, proposed, under date of Mav 21. 1910, to the powers signatory to The Hague convention, the negotiation nego-tiation of a supplemental protocol embodying em-bodying stipulations providing for thin alternative procedure. It is gratifying gratify-ing to observe that this additional protocol Is being signed without ob-I ob-I jectlon, by the powers signatory to ' tho original convention, and that there-is there-is every reason to believe that the International In-ternational prize court w ill soon be established I The Identical circular note also proposed pro-posed that the international prize court when established should be endowed en-dowed with the functions of an arbitral ar-bitral court of justice under and pur-Buant pur-Buant to the recommendation ad pt ed bv the last Hague conference. The 1 replies received from the various powers pow-ers to this proposal Inspire the hope that this also ma be accomplished within the reasonably near future. It Is believe d tat the establish-mentmont establish-mentmont of these two tribunals will r.o a long way toward curing the arblt ration yof many questions whlcti have heretofore threatened, and, at times, destroyed the peace of nations. Peace Commission. Appreciating there enlightened tendencies ten-dencies of modern times, the congress at its last session passed a law providing pro-viding fcr the appointment of a commission com-mission of five members ''to be appointed ap-pointed bv the President of tho United I States, to consider the expediency of utilizing existing International agencies agen-cies for the purpose of limiting the armaments of the nation of the world by international agreement, and of constituting the combined navies of Ihe world nn International force for the preservation of universal peace and to consider and report upon any other means to diminish the expenditures expendi-tures of government for military pur-popes pur-popes aud to lessen the probabilities of war." j I have no appointments to this commission, com-mission, but I have Invited and await the expresslcms of foreign governments govern-ments f.s to their willingness to cooperate co-operate with us in the appointment of similar commissions or representatives, representa-tives, who would meet with our com missioner and by joint action seek to make their work effective. Europe, Canada, etc. Several important treaties have been negotiated with Great Britain in the past 12 months A preliminary ' diplomatic agreement has been reached reach-ed regarding the arbitration of pe cunlarv claims which each government govern-ment has against the other. This agreement, with the schedules of claims annexed, will, as soon as Ihe schedules are arranged, be submitted to the senate for approval-Portural, approval-Portural, In October last the monarch of Portugal Por-tugal was overthrown, a provisional republic was proclaimed, and there wa.s set up a de facto government, which was recognized by the government govern-ment of the United States for the purpose pur-pose of ordinary intercourse. Liberia. The negotiations which have been undertaken for Ihe amelioration of conditions by the American commission, commis-sion, whose report, transmitted to congress July 5, are being brought to a conclusion. The Near East. Turkey Reference is made hy the President to the accession of his majesty maj-esty Mahomet V, emperor ?t the Ottomans, Ot-tomans, and the desire of the United Unit-ed States to contribute to the larger economic and commercial development develop-ment due to the new regime in Turkey. Tur-key. Montenegro The President expresses ex-presses pleasure In having accorded recognition of the United States to the new kingdom of Montenegro. The Far East. The center of interest in far eastern east-ern affairs during the past year has been again China. It is gratifying to note that the negotiations ne-gotiations for a loan to the Chinese government for the construction of a railroad from Hankow south to Canton Can-ton and westward through the Tang Tse valley, known as the lluknang loan, were concluded by the representatives represen-tatives of the various financial groups In May lust, and the results approved 'by their respective governments. The agreement, already initiated by the Chinese government, is now waiting formal ratification. Tho bsis of the settlement of the terms of this loan was one of exact equality between America, Great Britain, France and Gcrmauv. with respect to the financing financ-ing of the loan, supplying materials for the proposed railroads and their future branches. The application of the principle nn-derlvlng nn-derlvlng the policy of the United States In regard to the Huakang loan, namely, I hat of the Internationalization Internationaliza-tion of foreign Interests in such railways rail-ways of China as may be financed by foreign countries, was suggested on a broader scale by the secretary e'f state in a proposal for internationalism and commercial neutralization, of all the railways of Manchuria. While the principle which led to the proposal of this government was generally ad,-roltted ad,-roltted by the powers to whom it was addressed, the governments of Russia and France were apparently engaged In the execution of the larger plan. Against the estimated expenditures of ?c:J0 491.010. the treasury has esll-mated esll-mated receipts for next year $CSO,000,-Ono, $CSO,000,-Ono, making a probable surplus of ordinary or-dinary receipts over ordinary expenditures expen-ditures of about fifty millions, or. taking tak-ing Into account the estimates for the Panama cpnnl. which are $56,920.-874, $56,920.-874, and which ultimately will be palj In bonds. It will leave a dctlclt tor the next year of abut $7 000.000. If con-p-eFo FbnJl conclude to forllly the can Al. The cost of the fortifications I about nineteen millions. Should there be no appropriation this year for fortifications, for-tifications, then there would be, eveu Including the. Panama canal appropriation, appro-priation, a surplus of about twelve m'lllous, according to tho treasury estimates. es-timates. I The niessa.ee continues; The auditing y?teui In vo;ruc Is as old as tho provernmcnt and the methods meth-ods used are antiquated. A caroful plan is belnsc devised and will be presented to corpus with the recommendation that th? force of auditors au-ditors and employes under them bo greatly roduced, thereby effectlna; substantial sub-stantial economy. But this economy will be small compared with the larger larg-er economy that can bo effected by consolidation and change of methods. The possibilities In this rerard havo been shown in the reduction cf expenses ex-penses and the improvement of methods meth-ods and efficiency in the orflce of the Budltor for the p?stofflce department, who, without In the slightest degree Irapnirlng the comprehensiveness and efficiency of his work, has cut down the expenses of his office 120,000 a year. Again, in the collection of the revenues, reve-nues, t-speclally the customs revenues, a verv great Improvement has been effected, and further Improvements tore contemplated. By the detection of frauds in welghinp supar, upwards of $3,400,000 have been recovered from the beneficiaries of the fraud, and an entirely new system, free from the possibilities of such abuse, has been devised. There are entirely too many customs cus-toms districts and too many customs collectors. These districts should bo ' consolidated and the collectors In charge of them, who draw good salaries, sal-aries, should be abolished or treated as mere branch offices. In accordance with the plan of Uie treasury department depart-ment which will be presented for the consideration of con press. As an illustration, il-lustration, the cost of collecting one dollar of revenue at typical small ports like the port of York, Maine, was $,',0.04. At the port of Annapolis, Maryland. It cost $300.41 to collect one dollar of revenue; at Nachez, $52 76; at Alexandria. Va.. $122.49. Very gTeat Improvements have been made In respect to the mints and as-eav as-eav offlces and this year's estimate of oxpense is $320,000 less than two years aco In the bureau of engravlnp and "printing preat economies have been effected. Useless divisions have been abolished with the result of saving $440,000 this year in the total expenses ex-penses of tbo bureau despite Increased Increas-ed business. The office of the comptroller of the Currency Is one most Important In preserving prnper banking methods n tho national banking system of the tJnlled States and that the present comptroller has Impressed his subordinates subor-dinates with the necessity of so conducting con-ducting their Investigations as to establish es-tablish the principle that every failure fail-ure Is unnecessary because proper Inspect In-spect ion and notice ot threatening conditions to the responsible directors direc-tors and officers can prevent It. Public Buildings. In our public buildings we still suffer suf-fer from the methed of appropriation, J ivhlch has been so much criticised Kith our rivers and harbors. Some method 9bould be devised for control-lug control-lug the supply of public buildings, so that they will harmonize with the actual ac-tual needs of the government. Not I lonly are building appropriate for by jcoa?rvs which pre not needed, and I bulidintii . ft ' unappropriated for by conpres which a: e needed, but In nc-itnal nc-itnal cousiruct'on there ha been in the pnst to- lit le etudv of the build. lug plans and sites with a view to the actual needs of the .government. jPostofilcc ?.u!ldin?s. which ate in effect ef-fect warehouse fr 'he economical handling of tianr-inrifition of tVui-rnnrls tVui-rnnrls f tons of mail, have b cm made n nvoji"i !t -it'm-h? rfcn lo cated far from tie convenience and eco..omic I sp't. I" Vii actinl cou-i cou-i structlon of t'i" b -.i'di -g , i ch "or scrutiny scru-tiny of tse method - -pl ycd In th.' government arcbltert or arehlxc-ts employed ly ih i;r,cr mien, have re I suited !n dl-cl '".1 -M-ifiny. It is V;Td more eccnomv v. Ill vivo more time for a thorough r.-nr -rii.atb n. Th pibllc building biil c-r icd authority f r 'hi ultimate cxnend't -re of S V"! 011.01') and I unproved it hcMise of th? nisrrv pood features it contained. .1 ict I approve the r'vr and harbor bills ! but If w"s vrn 'i DrincI''!? ' that ought to 1l abindonc l. It Rectus 1 to m U'Al tbe w:e.- iurth"d of -e-! paring a public hiiliifm bill would be 1 preparation of a report by ;l commission commis-sion of ;ov eminent experts whose duty 't sihcrb.f be to reper to ccic the epvenmrjii's n-ls in the way of construction ..f puMIc bulldirss. In every part of tho rountrv. jui the same is Mio army engineers reaUe. report re-port witi- retereuc t" the nt li'y of Improvement? In rive s and harbor-, with Iho added function which I have roconunendej fer the army engineers of Including In h?ir recommendaUon the relative Importance tf th- various project found to be worthy of approval approv-al nnd exccuiion. I? avenues. i As the treasury depattment Is the one tluo.iph which thejncom? of the government is culler led ami its expenditures ex-penditures are disbursed, this Feemn a nrcer laco to consider tlie opra t!on ,'r Hi" exiting tariff bdl. which bec.ime a law Auinst C. 1909. As an income producing measure, the exist-bis; exist-bis; tarlfT bill has ncer been exceeded exceed-ed bv any eisionis bill In lb? history of tlie c-intry. The corporation xclse tnc. proportioned propor-tioned to the no, income of business ( Inco"poiT.tli n.; in tbo country, has w-orUi w?ll The t'x h-s b, en easily collecir.i. I k prewit p-ym-"t Indl-! cates that the Incidence ff the tnx has not bten heavv It off r- mo-c-over, an opportunity for kvo.'l dp-1 for the c?vernn-eut of busines? of all J coiiorallons and that means by far the most important put of the bu-l-ness of the rountrv. In the orlelnal act provljion was mat? fr adequate returns. This n-ivi--ion was subse-qu'Mitly subse-qu'Mitly aine!idpd by ccipres-; and the malier left to the repnliihn of the president. I have direct el the issue of the nfoil.-d l-ociil I'kms and have made it posplbl- for the public pener-ally pener-ally to know from an examination of the fer-ords. the iet ti of nil cremations, crema-tions, the s'ock of which is listed on any pui 1;-- .t"e' cxchrg; or ! offered for .sale to ihu general public by rdv i : l-e-r.cn oi otherwise. other-wise. The rrMirv-f of ''n?" ronora-tions ronora-tions wbo-i- si f t n il so listed are lisli-d u- 'T-- ' v ' !e. n-o directed direct-ed to be oo'i t '-- r.nniiiati n of creditors avd -i-';b M i s of the cir-poratlcn cir-poratlcn :' 't.- is sought. The returns cf ili " ' ' :-.t(oiis are subject sub-ject to il tvn cf an povern-menl povern-menl oHlor. - t- Mi? ( iriinatli'i of any cou-'t n ' ':?h t're fl rn undo by I be ''! i' i ion Is relevant and competent e ' m o. Th? Fori-! Tariff Avt. The sehedi''".. of tiio rat -s of duty in the Payne tariff pet hive been sun jected lo a great ileal of criticism, some of ii J j : ' t . n;-::e t f it nnf .ur.dd. and too uvjrli n,i?r:)r',senl3tion. The act was ad-jpieil ia part,uiinee of a declaration by the party which is responsible re-sponsible for it that a custom.? bill should be a tari.'f for the protection of home In'urtries. the measure of the protection to be the difference I jurisdiction the management of the' army and in connection therewith tho coast defenses, the government of tho dependencies of the Philippines and of Porto Rico, the recommendation of plans for the, Improvement of harbors ond waterways and their execution when adopted; nnd, by virtue of executive ex-ecutive order, the supervision of the construction of tlie" Panama canal. ' The general plan of an army of the United Slates at peace should be that of a skeleton organization, with an excess ex-cess of trained, officers,1 and thus capable ca-pable of rapid enlargement by enlistments, enlist-ments, lo.be supplemented In emergency emer-gency by the national militia and a volunteer force. In some measure this plan has been adopted In tbo very ; large proportion of cavalry and field I artillery, as compaied with the Infan- I try In the present army and on a peace basis. An Infantry torce can be ttained in six months; a cavalry or a light artillery force cannot be trained In leps than one and a half years, so llio necessity of having the larger number of trainod soldiers, The national na-tional militia, which congress is authorized au-thorized to provide for by tho Dick law, under which he discipline, tactics, tac-tics, the drill, the rank, the uniform j and the various branches of the militia mili-tia ate assimilated as far as possible to the rcgtlar army. Under the militia mili-tia law, as the constitution provides, tho governors of the states appoint the militia officers, but by appropriations appropria-tions from congress, states have been .'nduced lo comply with the rules of assimilation between the regular army and the militia, so that now there Is a force .the efficiency of which differs In different s.ates, which could be ln-eorporated ln-eorporated under 'a single command v.-Mh the regular army, and which for some time each ear receives the benefit of drill and maneuvers under conditions approximating actual military mili-tary service, under the supervision of regular army officers. In the army of the United States, In addition to the regular forces and the mlll'.la forces which may be summoned to the defense of the nation by tho piesldent, there Js 4he volunteer force, which made up a very large part of the army In the civil war, and which in any war of long continuance would become its most important constituent.' There is an uct which dates from the civil war, known as the volunteer act, which makes provision for the enlistment enlist-ment of volunteers In the army of the United States fn time of war. This v. as found to be u detective In tho Philippine war that a special act for the organization of volunteer regiments regi-ments to take part in that war was adopted, and it was much better adapted to the necessities of the case. There is now pending In congress a bill repealing tho present volunteer act and making provision for the organization or-ganization of volunteer forces In time of war, which Is admirably adapted to meet the exigencies which would I be then presented. The passage of tho bill would not e-ntnll a dollar s expense ex-pense upon the government at tn'.s time, or in tho luture, until war comes, but when war doos come, lhe methods th?reln directed are in accordance with the best military Judgment as to what they ought to be, and; the act would prevent the necessity' for the dlocusslon of new legislation and the delays incident to 1 s consideiatlon Dnd adoption. I earnestly 'tivge .the passage of this olunteer bill: , I further recommend that codgre93 establish a commission to Jetermlne as early as practicable a comprehensive comprehen-sive policy for the organization, mobilization mo-bilization and administration of the rcrrular army, the organized niiliUa and the volunteer forces In the event of war. J Need for Additional Officers. One of the great difficulties In the prompt organization and mobilization of militia and vo.untecr forces is the r.bsence of competent officers of the rank of captain to teach the new army, by the unite of the company, the business busi-ness of being sold. era and of taking caro of themselves so as to render effective service. Tu:s need of army officers can only be supplied by provisions pro-visions of law authorizing the appointment appoint-ment of a greater number of array officers than are needed to supply the commands of tho regular army troops now enlisted In the service. There oro enough regular army officers to command the troops now enlisted, but congress has authorized, and the department de-partment has followed the example of congress and exercised the authority conferred, by detailing these army officers of-ficers to duty other than that of the command of troops. Fortifications. I have directed that the estimate for appropriation for tho Improvement ot coast defenses in the United States suould bo reduced io a minimum, while those for the completion of the needed 101 tifications at Correal lor In the Philippines aud at Pearl Harbor in the Hawaiian islanJs, should be expedited ex-pedited as much as possible. The propo.dUuu to make Oiongapo and Subig Lay the naval base for l ie Pacific Pa-cific was given up, and It is to be tieated ineiely as a supply ttation, while the fortifications in the Philip-lines Philip-lines are to be largely confined to (Jor-reg'dor (Jor-reg'dor island and the adjacent isl-a'nis isl-a'nis which command the entrance to Manila Hay, and which are being rendered ren-dered Impregnable from land and 6ea at inch. The naval base has been transfei red to Pearl Harbor In the Hawaiian isk-nds. TLi- nece.-.'.tites the heavy foitlucatiou oi iho na.bor and the establishment uf an impor ant military station near Honolulu I urge that all the estimates made by the war department for these purposes be approved ap-proved by congress. oual appropriation appropria-tion Philippine Islands, During the last summer, at my request, re-quest, the fcecreuiry of war lslted tho P-lhillpplne islands and has described bis trip in his report. He found tho Islands in a state of tranquility and growing prosperity, due largely to the between the cost of producing tho ini-: ini-: ported article abroad and the cost of producing It at home, together with such addition to that - difference as might give a reasonable profit to the homo producer. The basis for the criticism of this tariff W that In re-F.pcct re-F.pcct to a number, of the schedules the declared measure was not followed, follow-ed, but a Llg'acr difference retained or Inserted by v. ay of undue discrimination discrimina-tion In favor of certain Industries and uinnnfactii res. Little, If any, criticism of the tar-j tar-j iff has been directed against the pro-I pro-I tectlve principle above stated; but the main body of tho criticism has j been based on the charge that the ' attempt to cnnfoi ui to tho measure t of protection was not honestly and ; fcinccrely adhered to. j Tariff Foard. J The time in which the tariff was ; prepared undoubtedly was so short as ! to make It Impossible for '.he congress j nd Its experts to acquire the informn-I informn-I Hon necessary strictly to conform to , I tlfe declared measure. In order to ! I atoid criticism of this kind in the I future and for tli puroe of more I nearly contorrumg to the party prom-j prom-j ise, congress at its last session made I provision at 'my request for the continuance con-tinuance of a board created under the y.ithority of tho maximum and minimum mini-mum clause of the tariff bill, and authorized au-thorized this board to expend the mon- ry appropriated under my direction for I the ascertainment of the cost of pro-I pro-I di-ctlon at home and abroad of the , j various articles included in the sched-I sched-I ules of the tariff. The tariff board th'is appropriated and authorized has tic c n diligent In preparing itself for the necessary investigations. Tho hope of those who have advoca'ed the use uf this board for tariff purposes is that the question of a rale duty imposed im-posed shall become mere of a business question and less of a political question, ques-tion, to be ascertained by experts of training and accurate knowledge. The halt in business and Uie shock to business, due to the announcement ; l that a new tariff bill is to be prepared I , and put luto operation will be avoided by treating the schedules one by one I as occasion shall arise for a change ! in the rates of each, and only after a report ujion the schedule by the tariff I board competent to make such report. It Is not likely the board will be able i to make a report during the present j session of congress on any of the ' schedules, because a proper cxamina-I cxamina-I lion needs a great deal of work and care, but I hope to be able to say at the opening ot the next congress, or I at least during the session of that congress, to bring to It attention those schedules in the present tariff i that may need amendment. The carrying car-rying out of this plan, of course, in- J vi lves the full corporation in limiting j the consideration In tariff matters to one schedule at a time, but If a proposed pro-posed amendment to a tariff bill Is to iivolve a complete revision of all the schedules, then we shall only repeat the evil from which the business of tnls country has .n times past suffered tnost previously by stagnation and uncertainty, pending a settlement of a law affecting all business directly or indirectly, and the effect of which no wise business man would ignore in new projects and new investments. I cannot too much emphasize the im-rorlanCe im-rorlanCe and benefit ot" tho plan above iiroposed for the treatment of tho tar-iV. tar-iV. It facilitates tire removal of noteworthy note-worthy defects In an important law without a disturbance of business l iosperity, which Is even more im-(onant im-(onant to tho happiness and the com tort of the people than the elimination of instances of injustice in the tariff. The Inquiries which the members of the tariff board made during the last summer inlo the methods pursued by oilier governments with reference to the fixing of the tariff and tho determination deter-mination of their effect upou trade, show that each governmcn; maintains n't office or bureau, the employes of which have made their life work the study of tariff matters, of foreign and home prices. We need just such an office, and that we can have it by making the tariff board just created a tariff commission com-mission with such power as It may Si'oni wise to congress to give. It has 1 been proposed to enlarge the board frm three to five. The present number num-ber Is conven'ent, but I lo not know-that know-that an Increase of two members would be objectionable. Whether or not tlie protection policy poli-cy is to be the decree of protection to Le accorded to our home Indus-tiles Indus-tiles are question which the people rn ist drei ie llirou'.i tnelr chosen rep- I i osc-niutlves ; what - i r policy is adopt- ; ; ed. it Is cl.i'.r .hat n ciona', bgi-iaiion I siio j Id be ba ed on a luorough and continuation starulaid. j I Cut v r--m. ! I The ruethol of lni;a:Ual Fcicntlfic by experts a-- pteliv iaar to le i iMou. which I rjo; c lo s'.-e ultl-nii.Uly ultl-nii.Uly adepted as o ;r iixed national ' i icy with respect to the .ariff. rivers i iin . harbors, w ate nva; s an 1 public bu ii: ;'s, is albo belnp pursued by the non-partisan nioneta; y commission of congress. An cxhaurtlve and thorough study of the banking an i currency systems of fo.-oign Co utiles has been completed. A comparison of Ihe business moth- 1 ods and institutions of our powerful and successful rivals wlthour own is sure to be of immense value, I urge upon congress the importance of a ron partisan and disinterested study of the banking and currency system. It is Idle to dream of commercial expansion, ex-pansion, and of the development of our national trade on a scale that io?asures up to our matchless oppor-ttin.ties, oppor-ttin.ties, unless we can lay a solid foundation In a sound and enduring banking and trust system. I TLe war department has within its I chango In the-tariff laws, which has 1 opened the markets of America to the products of the Philippines, and has opened , the Philippine markets to I American manufactures. The rapid j Increase In the trade between the two J countries Is shown in tho following figures: Latent monthly returns show exports ex-ports for the year ending August. 1910, to the United States; $20.O3.'.002, or 40 per cent of the j41.07n.73S total, opalnst $11.0:51.275 to the Uulted States, or 34 per cent bf the $32,183,-S71 $32,183,-S71 total for the ye-ar ending August. P.'OD. Note Latest monthly returns show I Imports for the year ending August, 1910, from the United States, $11.C1.'.-l'S2. $11.C1.'.-l'S2. or 30 per cent of $39,025,667 total. against $5,193,419 from the United States, or 18 per cent of the $28,94S,011 total for the year ending August, 1909. ; Porto Rico. i The year has been one of prosperity ; and progress in Porto Ulco. Certain political changeB are embodied in the LIU "To Provide a Civil Government j for Porto Rico and for Other Pur- 1 poses," which passed the house of rep ! resentaUves on June 15, 1910, at the last session of congresa, and It Is now awaiting the action of the senate. Rivers and Harbors. I have already expressed my opinion (o congress in respect to the character jf the river and harbor bills which should be enacted Into law; nnd I have exercised as much power as 1 have under tho law in dircc'.lng the chief of engineers to make his reports to I congress conform to the needs of the j committee framing such a bill in dc- j termlnlng which of the proposed Improvements Im-provements Is the more Important and ought to be completed first and piomptly. ' Panama Canal. At the Instance of Colonel Gocl.hals. the army engineer officer In charge of the work on the Panama canal, I have just made n visit to the Isthmus to inspect in-spect the work done and to consult with him on the ground as to certain problems which are likely to arise In the near future. Inc progress of tho work Is most satisfactorv . If no unexpected un-expected obstacle presents Itself, the canal will be completed well within the time fixed by Colonel (Joethals. to-wit, to-wit, January 1, 19 16. and within the estimate of cost, $76,000,000 Press reports have reached tho United States Irom time to time, glv-Irj, glv-Irj, accounts of slides of earth of very ldrge yardage In the Culebra cut aud elsewhere aiong the line, from which It might be interred that the work has been much retarded and that the time of completion ho.s been necessarily postponed The report of Dr. Hayes of the geological geo-logical survey, whom I sent within tho last month to the Isthmus to make ah investigation, shows that this section sec-tion of the canal zone Is composed of scdlmenlary rocks of rather weak structure and subject to almost immediate im-mediate disintegration when exposed to the knife. Subsequent to the deposition de-position of these sediments, Igneous rocks, harder and more durable, have been thrust into them, and belDg cold at the time of their intrusion, united but ludlLerentiy with the sedimentary rock at the contacts. ' The result of tnese conditions Is that as the cut Is deepened, causing unbalanced pres-sores, pres-sores, sMdes from the sidei of the cut have occurred. These are in part due to the flowing of feurlate soil and decomposed sedimentary sedi-mentary rocks upon inclined surfaces of -the underlying decomposed rock, aDd in part by the crushing of structurally struc-turally weak beds under excessive pleasure. These slides occur on one side or the other of the cut through a distance ol four or five miles, and now that their character is understood, allowance al-lowance has been made In the calculates calcula-tes of yardage for the amount of slides which will have to be removed and the greater Blope that will hae to be given lo the bank in many places In order to prevent their recurrence. Such allowance does not exceed 10,-000,000 10,-000,000 yards. Considering that the number of, yards removed from thl9 cut on aa average of each month through the year la 1,300,000, and that the total remaining to be excavated, Including slides, . aboi't 30.000,000 ;'ards. It will bo seen that this addition addi-tion to the excavation does not offer any great reason for delay. While this feature or the material to be excavated In the cut will not seriously delay or obstruct the construction con-struction of a canal of the lock type, tlie Increase of excavation due to such slides In tho cut made 85 feet deeper icr a sea level canal would certainly have been so great as to delay its completion com-pletion to a time beyond the patience of tho American pe-ople. Among quest ions arising for present solution is the decision of whether the canal shall be roitil'iej. i have a'ready stared to the congress that I strongly favor loitl;ieat on, and I now r el crate this op.nicn, and ask your consideration ot the suVct in the light of the report already buoie you made b a competent b ard. If, In our discretion, we hc-Meve modern fortifications to li? nc-eccsary to the adequate ) rote:tiun au l policing of the canal, then it is o.n du y to censtruct them. We have b lilt the cdnal. It la our property, liy convention conven-tion we have indicated o ir dec lie for, lid in iced undcrtakr n. its universal and equal vine It i- al o well 1 nowu that cu? ot fie h:of o-.iji-f-ts in .he consii icilon oi tiif cjunl !a$- been to increase the military eileeliveuess ol cur navy. Failure to fortify the can U would leave the attainment of b tii these airuB in the posl.lon ot rights and obligations ob-ligations which we should be powerless power-less to enforce, and which never could in any other way be absolutely safeguarded safe-guarded against a desperate and lire sponsible enemy. Canal Tolls. Another question which arises for consideration and possible legislation is the question of lolls in the canal. This question Is necessarl y affected Lv the probable tonnage which will go through the canal. It is all a matter mat-ter of estimate, but one of tbo government govern-ment commission in 1900 Investigated the question and made a report. He concluded that the total tonnage or the vessels employed in commerce that could use the Isthmian canal In 191-1 would amount to 6.813 SOo tons net register, and that this traffic would increase 25 1 per cent per decade; that it was not probable that all tbo commerce included in the totals would at once abandon the routes nt present followed aud make use ol the new canal, and that it might take som? time, perhaps two years, to readjust trade with reference to the new con- (Continued on Page Pour.) PRESIDENTS MESSAGE Interest of the general welfare of tbo people and -extending Its actlvi'.les luto avenues plainly within its constitutional consti-tutional Jurisdiction, but which it baa not beu thought' wise or necessary for the general Rovernment heretofore hereto-fore to occupy. I am giad to isay Ibat under the appropriations ap-propriations made for the department tno attorney general has bo improved lis organization that a vast amount of HtluaUou of a civil and criminal tiaracter han boon -disposed of during j the current year. I Invite especial at-' at-' tention to iho prosecutions under the federal law of the so-called 'bucket-shops," 'bucket-shops," aul of tiiose schemes to de-' de-' fiaud !n which the use ef the mil Is ju essential part of the fraudulent conspiracy, prosecutions which have taved. IgnoraDt and weak members oi ibe pub ic and are saving them hun-' hun-' dred3 of millions of dollars. The vlo-j vlo-j latlons of the i.uti t.-ust law prc cnt ! pi.-rhaps the most important litigation bflore the derailment, and the num-ber num-ber of cases liicd shows the activity ' of the government in enforcing ihat statute. National Tn corporation. In a special message .last year I brought to IU3 attention of congress the propriety and wisdom of enacting a general law providing lor tho incor-j incor-j Deration of Industrial and other companies com-panies engaged in interstate coni-iuc-rce. Judicial Procedure. On great crying need in the United ! Suites is cheapening the cost of litl-I litl-I gation by simplifying Judicial proce- dure nnJ expediting final Judgment, j Under present conditions, the poor man is nt a woeful disadvantage In a )e;al contest with a corpora ion or rich opponent. The necessity for the rciorm ?x."Ms both in the United Slates courts ami in all state courts. In order to oring it about, however, it naturally falls to tho general government govern-ment by Its example to furnish a, n.odel to all states. A legislative commission, appointed by resolution of congress to relse tho procedure In the Untied States courts, l:as as yet made no report-Under report-Under the law, the supreme court of the United States has the power a. id is given the duty to frame the equity rules of procedure which are to obtain in the federal courts of first lrrtance. In view of the heavy burden bur-den of pressing legislation that that court has to carry, with one or two of its members Incapacitated through ill-health, it 1ms not been able to take tip problems of iinproUng the equity pioccdure, which has practically remained re-mained the same since the organization organiza-tion of the court In 17S9. It is reasonable reason-able to expect that, with all the vacancies vacan-cies upon the court lilltcl, it will take up the question of cheapening and simplifying the procedure in equity in the court ot the United Stages. The ec-uity business is much more the Important Im-portant in the federal courts, and I may add the more expensive. I am stiongly convinced that the best method meth-od of improving Judicial procedure at law Is to empower the supreme court to do it through tho medium of the rules of the court, as In equity. This l.s the way it has been done in England, Eng-land, and thoroughly done. The sini-I sini-I lielty and expedition of procedure in tnc English courts today make a model lor the reform of other systems. t I cannot conceive any higher duty that loo supreme court could perform than in leading the way to a simplification of procedure in the United States courts. Relief of Supreme Court from Unnecessary Un-necessary Appeals. No man ought to have, as a matter o: right, a review of his caso by the rupreme court. He should be satisfied by one hearing before a court of first instance and one review by a court of appeals. The proper and chief usefulness useful-ness of the supreme court, and especially espe-cially the supremo court ol the United States, is, in tho cases which have come before it, so to expound tho law, aud especially the fundamental law the constitution as to furnish prcce-, dents for the inferior courts in future litigation, and for the executive officers offi-cers in the construction of statutes and the performance of their legal duties. Therefore, any provisions for review of cases by the supreme court that cast upon that court tho duty of ! passing on questions of evidence and I the construction of particular forms or instruments, like Indictments, or 'a ills, or contracts, decisions not of general application or importance, ; merely clog and burden the court and render more dllflcult its higher func- ! tion, which makes it so Important a piTt of the framework of our government. govern-ment. The supreme court is now carrying car-rying a burdeu of appeals of this kind, and I earnestly urge that it be rc-noved. rc-noved. I Tho statutes respecting the review b. ' the supreme court of the United States of decisions of the court of appeals ap-peals of the District of Columbia ought to be so amended as to place that court in the fame position with respect re-spect to the review of its decisions as l hat of the various United States circuit cir-cuit courts of appeals. Tbo act of .March 2, 1007, authorizing appeals by the government from certain judgments judg-ments in criminal cases where the defendant de-fendant has not been put in Jeopardy, within the meaning of the constitution, constitu-tion, should be amended iu order that i,.ich appeals should be taken to the circuit court of appeals instead of to the fcuprtme court In all cases except those involviug the construction of the constitution or the co'istltulloual- ity of a statute, with the eame power in the supreme , court to review ou certiorari as is now exercised by that court over determinations of tho several sev-eral circuit court of appeals. Appeals from the United States court In Porto Hleo should al6o run to the circuit ccurts of appeals of the third circuit iu.-tead o fto the supreme court. These 1 franks in tho free transmission of the official mail resulting from the business of the new postal saving system. Dy properly recording the issuanco of nuch Btamps and envelopes, en-velopes, accurate records can bo kept of the cost to the government of handling hand-ling the pontal savings mail, which is certain to become an important Item of expense and one that should be exactly determined. In keeping with this plan it is hoped that congress con-gress 'will authorize the substitution of special olQclal stamps and stamped envelopes for the various forms of franks now usod to carry free of postage post-age the vast volume of departmental and congressional mall matter. Second-Clacs Mail Matter. In my lat annual message I invited in-vited the attention of congress to the inadequacy of the postal iate imposed upon s..cond class mail matter in so-' so-' far as that Includes magazines and showed by figures prepared by experts ex-perts of the rostofilce department that the government was rendering a service to the mogizines. costing many millions in excess cf th? compensation com-pensation paid An answer was at-; at-; tempted to this by the representa-I representa-I tlvcs of the m.igirlnes, and a reply i was filed to this answor by the post-I post-I office department. The utter Inadqua-; Inadqua-; cy of the answer, considered in tho light of the reply of the pctofTlce de-j de-j partment. I think must appeal to any fair minded person. "Whether the answer an-swer was all that could be said In behalf be-half of the magazines Is another question. I areo that the question is one of fact; but I Insist that if the fact Is as the experts of the post-i post-i office show, that wp are furnishing to the owners of magazines a service worth millions more than they pay for it, then justice requires that the rate should be increased. The Increase In-crease in the receipts of the department depart-ment resulting from this change may be devoted to Increasing the us fulness ful-ness of the department In eslsb'ish-ing eslsb'ish-ing a parcels post and Ir. reducing the cost of rirst class potaie to one cent It has been said by the p-st-master general that a fair adjustment might be made under which the ad vertlsln? part of the magazine should he charged for at a different and higher high-er rate from that of the reading matter. mat-ter. This wc uld relieve rmny us ful i magazine that are net circulated at a profit and would not shut tm out from tho use of the mails by a prohibitory pro-hibitory rate. Parcels Post. With rcfpcct to tho parcels post, I respectfully recommend its adoption on all rural delivery routes aDd that II pounds the internal icnal limit be made the limit of carriage In such post, and this with a view tt its gen eral extension when the Income of the postollice will permit it and postal savings bank shall have been fully I established. The argument Is made against the parcels post that was made against the postal savings bank that is introducing the government into a business which ou&bt to be conducted by private persons, and Is paternalism The postofTko department depart-ment has a great plant and a gTeat orpanlzatlon, resetting Into the most remote hamlet of the United S ates and with this machinery It Is able to do a great many things economically that If a new organization were necessary nec-essary It would be ImpoeslMc to do without cxtravniant expenditure. That is the reason whr the postal savings bank enn be carried on at a small additl nal cost, and why It Is possible to incorporate at a very Inconsiderable In-considerable expense a parcels post In the rural delivery system. A general gen-eral poet will involve a much greater outlay. Navy Department. In the last aunual report of the secretary sec-retary of the navy, and in my annual message, attention wa3 called to the new detail of officers In the navy department de-partment by which officers of flag rank were assigned to duty as aides to the secretary In respect to naval operations, personnel, Inspection and material This change was a substantial substan-tial compliance with the recommen datlon of the commission on naval reorganization, headed by Mr. Justice Moody and submitted to President IU-oeevelt on February 2C, 1909. Abolition of Navy Yards. The secretary of the navy has given giv-en personal examination to every navy na-vy yard aud has studied the uses of the navy yards with reference to the necessities of our fleet. With a fleet considerably less than half the size of that of the British navy, we have ship yards more than doublo the number, num-ber, aud there are several of these ship yards, expensively equipped with modem machinery, which after Investigation Inves-tigation the secretary of the navy, believes be-lieves bi be entirely useless for naval J purposes. lie m-'ks authority to abandon aban-don certain of them and to move their machinery to other places where it can be made use of. The secretary points out that the most Important naval base In the West Indies Is Ounntenamo, in the southeastern part of Cuba. Its geo-j geo-j graphical situation Is admirable and Is well adapted to protect the commercial com-mercial paths to the Panama canal, and he shows that by the expenditure of less than hp 1 f a million dollars, wjth the machinery which ho shall take from other navy yard-, he can create a naval station at Cuantanamo of sufficient size and equipment to serve the purpose of an emergency naval base. I earnestly joint in the recommendation that be le given the authority which he asks. I unite with the secretary In the recommendation that an appropriation be made to construct a suitable erypt at Annapolis for the custody of the remains of John Paul Jenen. Peary. The complete success of our country coun-try In Arctic exploration should not remain unnoticed. The unparalleled achievement of Commander Teary In reaching the North Pole A in 11 6. 1900, approved by critical examination of the most expert scientists, has added to the distinction of our navy, to which ho ltelongs and reflects credit upon hi3 country Ills unique success has received generous acknowledgment acknowledg-ment from scientific bodies and instl: tutlons of learning in Europe and America. I recommend fitting recog- (Continued From Tage Two.) d'.llons which the caool wculd establish. estab-lish. He did not Include, moreover, Ibe tonnage of war vessels, although it Is to be Inferred that such vessels would make considerable use of tho. canal. In the matter or tollB, he rer.ihed the conclusion that a dollar a net ton would not drive business away from tho canal, but that a higher inte would do so . In determining what the tolls should be, we certainly ought not to insist that for a good many years to come Ley should amount to enojgh to pay the interest on the Investment of $100,-CDu.OOo $100,-CDu.OOo which the United States has made In the construction of Ihe canal. We ought not to do nils, first, because the benefits to be derived by the United States from this expenditure Is not le bo measured solely by a return re-turn ipon the lnyes ment. It It were, then the construction might well have been left to private enterprise It was because an adequate return upon the money iuvcsleJ could not be expected Immediately, or in the near future, and be:ause there were peculiar political po-litical advantaged to be derived from the construction of the canal, that it necesFarlly fell to the government to advance the money and perform the work. In addition to the benefit to our naval strength, the canal greatly Increases In-creases the trade facilities of the United States. It will undoubtedly cheapen the rates of transpotatlon In nil Height between the eastern and western seaboards, and It will greatly Increase the (rade by reason of the I reduction in Its cost, Then If we arc to have a world canal, and if we are nnxio.is that the routes of the world's I trade should be through the Panama crnai, wc must recognize that we have an active competitor In tho Suez canal. Then, too, there are o her i nivans of crossing tho sthruus by tho j Tehauntepec railroad and by other I ullroads and freight routes In Cen-i Cen-i ti a! American to the Atlantic side. J In ail laeso cases, the question of I whether the Panama canal Is to be used and Its ionuage Increased will be determined mainly by the charge for lis use. My own impression is that j the tolls ought not to exceed $1 per ' net ton. Ou January 1, 1911, tho tolls I In the Suez canal are to be 7 francs I and "3 centimes for one l et ton by i Suez canal measurement, which is a i modillcailon of the Danube measurement measure-ment A dollar a ton will secure under un-der the figures above a gross income fium the Panama canal of nearly Si'.OUO.OUO. The cost of maintenance ami operation is estimated to exceed 3,000,uoo. Ultimate!, of course, with the normal increase fn trade, the income in-come will approximate the interest charges upon the investment. On the whole, I should recommend that within with-in certain limits the president be authorized au-thorized to fix the tolls of tho canal and adjust them tu what seems to be commercial necessity. The Inquiries akeady made of the cnicf engineer of the canal show that the present consideration con-sideration of this question is necessary neces-sary ,n order that the commerce of ihe world niaye have time to adjust its-elf to the new conditions resulting from the opening ol this new highway. The next question that arises is as to the maintenance, management and general control of tne canal alter its completion. It should be premised that it is an essential part of our navy ..tablrsh incut to have ihe coal, o.l and other ship supplies, a dry dock and repair shops, conveniently located wHh reference to navul vessels passing pass-ing through tho cunal. Now, If the government, for naval purposes, is to undertake to furnish those conveniences con-veniences to the navy, and they are conveniences equally required by commercial com-mercial vessels, there would seem to be strong reasons why the government govern-ment should take over and include in ls management the furnishing, not only to the navy, but to the public, dry dock and repair shop facilities, and tho sale of coal, oil and other-ship supplies. ; The maintenance of a lock canal of lh!s enormous size in a sparsely populated pop-ulated country and in the tropics, where the danger irom disease Is always al-ways present, requires a large and cumplete and well tramed otgaulzation with full police powers, exercising the utmost care. The visitor to the canal v. ho is impressed with the wonderful freedom from tropical diseases on the Isthmus, must not be misled as to the constant vigilance that is needed to preserve this condition. The vast machinery ma-chinery of lb3 locks, the necessary amount of dredging, the preservation of the banks of tho canal from slides, the operat.on and mantenance of the equipment of the railway will nil require re-quire a force, not, of course, to be likened In any way to the present organization or-ganization tor construction, but a skilled body of men who can keep in a state of usefulness this great Instrument Instru-ment of commerce. Such an organization organiza-tion makes it easy to include within its functions the furnishing of dry dock, fuel, repairs and supply facilities to tho trade of tne world. These will be more essential at the Isthmus of Panama than they are at Poit Said or Suez, because there arc no depots tor coal, supplies and other commei-clal commei-clal necessities within thousands of miles ot the isthmus. Another luipoitant reason why these auxiliary duties may be well undertaken under-taken by the government is the op-pcrtunity op-pcrtunity for discrimination between patios of the canal that Is offert-d v here private concessions are granted li'i- the furnishing of these facilities. No: bing would create greater prejudice preju-dice ucaliiit the canal than, the sus- , picion thai ceitain lines of traffic were favorel in the fjiniihlng of supplies I oi that th.- supplies were controlled I by any large interest that might have i motive for increasing the cost of ihe ue ol the cnual. It uiay be added tl-at the leriuinl are not ample enough to permit the fullest coin petition in respect to tho furnishing of these faculties fa-culties and necessities to the world's trade, even if It -were wLie to invito stub competition and the granting of the concession would necessarily, under un-der these circumstances, taken on tho appearauce ot privilace or monopoly. I cannot close this reference to the ennnl without suf-'neMing as a wlso i'rucndnicnt to the inierstate commerce com-merce law a provls.on prohibiting interstate in-terstate commerce railroads from owning own-ing or controlling ships eugaged in ' the trade through the Panama canal, I believe such u provision may be needed' to save the people of tbo United States the benefits of the com P litlon iu liade between the eastern and wenteiTi sf-aboards. which this U'.nal will be constructed to secure. Department of Justice. 1 The duties of the department of Jub-tke Jub-tke have been greatly IncreaseJ by 1 legislation of congress enacted In the ' suggested changes would, I am advised, ad-vised, relieve the supreme court of tho consideration of about eighty cases annually, and would be in harmony with the theory of review which led to the establishment of circuit courts of appeals, and which I havo stated ylove. The American Bar association has had before it the question of reducing ttc burden of litigation Involved In reversals re-versals on review and new trials or re- : hearings and , in frivolous appeals In ; habeas corpus and criminal cases. Their recomuicudaiions have been embodied em-bodied in bills now ponding in con- ' girss. The iecommendatlons are not radical, but they will accomplish much il made Into law, and I earnestly lequest the passage of the bills em- : tyuying .hem. ' Injunction Bill. i I wish to renew my urgent recommendation recom-mendation made In my last annual message in favor of the passage of a law which shall regulate tho Issuing j of injunction's In equity without notice, no-tice, In accordance with the best practice prac-tice now In vogue in the courts of the United Sta es. I regard this of especial espe-cial Importance, ilrit, because it has been prouiiisod, and second, because it will deprive those who now complain of certain alleged abuses In tho improper im-proper isxuing of Injunctions without 1'otlce of any real ground for further 0 mend ment, and will lake away all semblance of support for the extreme-.y extreme-.y radical legislation there proposed, v. hich will be most pernicious if adopted, adopt-ed, will sap the foundations of Judicial power, and legalize that cruel social instrument, the secondary boycott. Judicial Salaries. I further recommend to congress the puesage of the bill now pending for Ihe Increase In the salaries of the federal fed-eral Judges, by which the chief justice of tho supreme court shall receive $17,-f.OO $17,-f.OO and the assoclao justices $17,000; the circuit Judges constituting the circuit cir-cuit couit of appeals shall receive 10,000 aud the dlliict Judges $9,000: The cost of living Is such, especially In the large cities, that oven the salaries salar-ies fixed in the proposed bills will enable en-able the incumbents to accumulate little, lit-tle, if anyth.ng, to support their families fami-lies after death. Postofice Department. Postal Savings Banks. i The last congress made provision for tho establishment of savings banks bv the post office department of this government, by which, under Ihe general gen-eral control of trustees, consisting of the postmaster general, the secretary of the treasury and the attorney general, gen-eral, the system could be begun in a few cities and towns, and enlarged to cover within Its operations many cities iii'd towns and as large a part of the country as seemed wise. Arrangements Arrange-ments have been perfected so that savings sav-ings banks will be opened In some cities and towns en the first of January, Janu-ary, and there will te a gradual extension exten-sion of the benefita of tho plan to the lest of the country. I Wiping Out Postal Deficit. As I have said, the posfofflce department de-partment is a great business department, depart-ment, and I am glad to note the fact that under its present management, 1 inicipies of bus.ness economy and ef-fielenc ef-fielenc are being applied For many ears there has been a deficit in the j cperations of the postofflce department I which has been met by appropriation , from the treasury. Tho appropriation j estimated for last year from the treas-j treas-j ury, over and above the receipts of I th. department, was $17,500,000. I am glad to record the fact that of that j $17,500,000 estimated, $11,500,000 was i eaved and returned to the treasury. , The personal efforts of the postmaster-general postmaster-general secured tho effective co-operation of the thousands of postmasters I and other postal officers throughout I the country in carrying out his plans I of reorganization and retrenchment, j The result is that the postmaster gen-I gen-I eral has been able to make his estimate esti-mate of expenses for the present year so low as to keep within tho amount the postal service Is expected to earn. It li gratifying to report that the reduction re-duction in the deficit has been accomplished accom-plished without any curtailment of the postal facilities. Ou tbo contrary, the 1 service has been greatly extended dur- ing the year in all Its branches. Extension of the Classified Service. Upon the iccommeudation of tho postmaster general, I have included in i the classified service all assistant j postmasters, and 1 believ that thU ; giving a secure tenure to those who i are the most important subordinates subordi-nates of postmasters will add much to the efficiency of their offices and an economical administration. A lure number cf tho fourth class postmasters post-masters are now in the classified service. ser-vice. I think It would be wlso to put in the classified t-ervice the first, second sec-ond and third class posimasters. It Is more logical to do this than to classify the fourth class postmasters, for the lease n that th. fourth class postoffices are Invarlablv small, and the postmasters ar necessarily men who must combine some other business busi-ness with the postmastcrship, whereas where-as the first, second and third class postmasters are paid a sufficient amount to Justify the r q ilrement that they shall have no other business and that they shah devote their attention at-tention to their postcr.ice duties. To classify first, second and third class postmasters would require the passage pas-sage of an act chanting the methods of their appointment so as to take away the necessity for tho advice and consent of the sen; it. I am a ware that this Is Inviting from the senate a concession in respect to its quasi executive power that Is censl lerable, but I belle-vi it to be .too 1 in the interest in-terest of good administration and efficiency ef-ficiency f service. To make this change would ta'.e the no--, t masters out of politics; wo Id icl'eve con gressmen who now are burdened with the necessity of making recommendations recommen-dations for these places of a responsibility respon-sibility that must be irksoue ami cau create nothing but troub'e: and it would result in securing Krfatei' nt tention to business, greiter fidelity, and consequently pn n'er economy and efficiency In the potofTlces which they conduct. The FraTikiT? Privilege. The unrestricted manner in which the franking privilege Is now being used by the several federal services and by congress h.-i? p 1 it open to serious abuses, a f-et ckn'Iv established estab-lished through Invv s'l" alns recently instituted- by the dipirtment. While is has been impossible without a better bet-ter control of frankin? to determine the exact expense to tlie -o-ernment of this practice, thoe can bo no doubt that It annuallv reaches Into the ml'llons. As thv fi'sl steps in the direction . of reform, special stamps aud stamped envelopes have been nrovhled for 9 lustead of nltlon by congress of the great achievement of Robert Edwin Peary. Department of the Interior. Appeals to Court in Land Cases. The secretary of the Interior recommends rec-ommends a change of the law in respect re-spect to the procedure in adjudicating claims for land., by which appeals can be taken from the decisions of the department to the court of appeals ap-peals of the Dls-trlct of Columbia for a judicial consideration of the rlght3 of the claimant. This change finds complete analogy In the present provision pro-vision for appeals fr.m the decisions of the commissioner of patents. The Judgments of the court in such cases would be of decisive value to land claimants generally and to the department de-partment of the interior in the administration admin-istration of the law, would enable claimants to br'ng Into court tho final conslderntl"n of i-surs ns to the UUc to government land pnl would, I think, obviate a cood deal of the subsequent sub-sequent Htlc.tf'in that now arises in our vvestorn ccurts. Con-rvaticn. The subject of the conservation of tho public do:"ain has rommin led the attention cf thj people within the last two or thr. e years. Agrcutural Lands. There I- n n etl for radical reform in the irctho'is -.f disposing of what are really agricultural lands. Th-? present laws li e worked well. The enlarged lion et tc-ad law has encouraged encour-aged the succor -'ul farming of lands In the semi-arid of regions. Pc"!?. '.nation. The total sum already accumulated In the fned prov! led bv the act for the reclam.vlon of arid lands is about ?ilO.H9 ers :C t-d of this, all but $C.-241.058.711 $C.-241.058.711 hn be n allotted to the various va-rious projects, of which there are thirty. Congress, at its last session, provided pro-vided for the I.iulng of certificates of indebledne.-' r i t exceeding twenty millions of doll- ;--, u be redeemed from the rec'.a-i , fund when the proceeds of lanri- o'd and from the wster rents sbo ;'d b eslf flcient. Meantime, iu accordance with the pro-vfions pro-vfions of the kiw, I a'. pointed a board of army engineers to examine the projects pro-jects and to ascertain which are feas lMo and worthy of corupl.tlon. That board has made a report upon the alignment which will prevent combinations combin-ations to monopolize coutrol of the coal In any one district or market I do not think that coal measures trader tra-der 2,300 acres of surface would be too large an amount to lease to aDy one lessee Third, that the law should provide the same separation in respect to government phosphate lands of surface sur-face and mineral rights that now obtains ob-tains in coal lands and that power to lease such lands upon terms and limitations lim-itations similar to those above recommended rec-ommended for coal leases, with an added ad-ded condition enabling the government to regulate and, if need be, to prohibit, pro-hibit, the export to foreign countries of the product. Fourth, that the law should allow a prospector for oil or gas to have the right to prospect for two years over a certain tract of government land, tho right to be evidenced by a license li-cense for which he shall pay a small Sitm.. arrd that, upon discovery, a lease m.ty be granted upon terms securln? a minimum rental and proper royalties royal-ties to the government and also 'he conduct of the oil or gas well In accord ac-cord with the best methods for hm-buiiding hm-buiiding the supply of oil In the district. dis-trict. The period of the lenses slioulJ r.ot be as kmg as those of coal, but tiiey should contain similar provl-I provl-I slons as to assignment so as to pre- vent monopolistic combinations Fifth, that water power sites be directly leased by the federal gov eminent, alter advertisement and bidding, for not exceeding 50 years U.ou a proper rental and w ith a con ditiou fixing rales charged to the public pub-lic for units of electric power, both rental and rates to be readjusted every ten years by arbitration or otherwise, with s'uitnble provisions acainst assignment to prevent eo ropolistlc combinations. Or that tb? law shall provide that upon applies-t.cn applies-t.cn made by the authorities of tt state where the water power site li situated. It may be patented to th? state on condition that the state 6hall dispose of it under terms like those Just described, and shall enforce tboso terms, or upon failuro to com-fly com-fly vvi'h the condition the water po' ci site and all the plant and inr-provoment inr-provoment ou the site shall be tor-Iclted tor-Iclted and revert to the-United State, the President being given the power to declare the forfeiture and to direct It'oulinued on Page Five.) subject, which I shall transmit in a separate message within a few days. Snecific J?eco-m'v!erl''.tions. For the reasons stnted in my conservation con-servation address, I recommend: First, that the limitation now im-I im-I osed upon the executive which forbids for-bids his reserving more forest lands In Oreg-on, Washington, Iiaho, Montana, Mon-tana, Colorado and Wyoming, be re-foaled. re-foaled. Second, that the coal .icpo.ilts of the government be leaved after advertisement ad-vertisement inviting competitive b.ds. for terms not cxceellng flit;, years, with a minimum rental an I royalties upon the coal mlneci. to be readjusted every ten or twelve years, and with conditions as to maintenance which will secure proper mining and as to i PRESIDENT'S MEAGEi (Continued lYotu p:iS0 Four.) b'gal proceedings tor Its enforcement. I llicr of these method, would I t.nuk accomplish the proper purpose in respect to w,iic.r ,)rwer BU.ttf DUl flic or the- mher should be prompt I v jdopiod. 1 earnestly urge upon congress that at ibis session general conservation hglsbitlon, of the character Indicated, t-L. adopted. At its ln.-u session this congress took most useful and proper sups in the cause of const rvutl.m by allowing the executive, through withdrawals, with-drawals, to suspend the action of tho existing latvs In respect to much of the public domalu. I have not thought that the dauger of disposing of cool lands in tbo I'nlli'd Stuto.i under the protein luwa in largo quantities was wo great as to call for t lie ir withdrawal, withdraw-al, because under the present provisions provi-sions It Is reasonably cert.i.u that tbo government will receive the real value of the land. Hut. in respect to oil lundri, or phosphate- lands, and of gas lands in the I'nltcd States, and In respect re-spect to coal lands in Alaska. I have exercised the full power of withdrawal withdraw-al with the hope that the action oi congress, would follow promptly and prevent that tying up of the resources of tbo country In the western and more .sparsely Bottled portions and In Alas-Va. Alas-Va. which means stagnation and retrocession retro-cession Alaska. In reference to the government of Ahuska, I have nothing to add to the recommendations 1 made In my last message on the subject. I am convinced con-vinced that the migratory character of the population, its unequal distribution distri-bution and Its smallnesg of number, which the new census shows t bo about 5ii,ooo, in relation to the enormous enor-mous expanse of the territory, make It altogether impracticable to give to those people who are in Alaska today, iind may not be there a year hence, the power to elect a legislature to govern an Immense territory to which they have a relation so little permanent. perma-nent. It is far better for the development devel-opment of the territory that it be committed to a commission to he appointed ap-pointed by the executive, with limited limit-ed legislative hiwts sufficiently brad to meet the local needs, than to continue the present Insulllcient j government with few remedial powers, pow-ers, or to make a popular government where there is not proper foundation upon which to rest It. The suggestion that the appointment appoint-ment of a commission will lend to the control of the government by corporate cor-porate or selfish and exploiting interests in-terests bus not the slightest foundu- j tion In fact. Such a government worked work-ed well In the Philippines, and nnM I work well In Alaska, and those, who ' are really Interestisl In t ne proper development of that territory for the benefit of (he people who live In It and the benefit of the people of the United States, who own It, should support the institution of such a government. gov-ernment. I have been asked to recommend that the credit of the government bo extended to aid the construction of railroads in Alaska. 1 am not ready now to do so. A great many millions of dollars have already Uen expended In the construction of at lean two railroads, and if laws lie passed providing pro-viding for the proper development of the resources of Alaska, especially for the opening up of the coal lauds, I believe thai iho capital already Invested In-vested will induce the Investment of more capital, sufficient to complete the railroads building, and to furnish cheap coal not only to Alaska, but to the whole Pacific const. The passage of a law permitting the leasing of government coal lands In Alaska after aft-er public competition, and the appointment ap-pointment of a commission for the government of the territory, with enabling en-abling powers to meet the loral needs, will lead to an improvement In Alaska und the development of her resources that Is likely to surprise the country. coun-try. National Parks. Our national parks have become so extensive and involve so much detail of expense in their control that it. seems to me that there ought to be legislation creating a bureau for :ielr care and control. The greatest natural nat-ural wonder of this country and the surrounding territory shonid be included in-cluded in another national park. I refer to the Grand Canyon of the Colorado. Pensions. The uniform policy of the government govern-ment in the matter of granting pensions pen-sions to those gallant and devoted men who fought ,to save the life of the nation in the perilous days of the great civil war bus always been of the most liberal character Those men are now rapidly passing away. To the iiiaD who risked everything , on the Held of battle to save I be tin-lion tin-lion in the hour of its direst need j we owe a debt which has not been I nnd should not be computed In a begrudging be-grudging or parsimonious spirit. Put while we should be actuated by this spirit to the soldier himself, care should exercised to go not to al-surd al-surd lengths or distribute the bounty of the government to classes of persons per-sons who may, at this late day, from a mere mercenary motive, seek to obtain ob-tain some legal relation with an old veteran now tottering on the brink of the grave. Department of Agriculture. The report of the secretary of agriculture ag-riculture invites attention to the stu- pendou value of the agricultural products pro-ducts f this country, amounting in all to $S,92iJ.0,lMMi for this year. This amount Is larger than that of lOofi by $L!(o.OOu,iOn, The existence of such I a crop Indicates a good prospect for 1 business throughout the country. I An Interesting review of the results ot an examination mode by the department de-partment into fctfltlstlcs and prices. , shows that on the average, since 1801. i farm products have Increased In val- ue 72 per cent, while the things which the farmer buys for use have increas- 1 ed but 11' per cent, an indication that present conditions 'are favorable to : the farming community. many more injured, nnd 1 regret to say thai there Is no provl.-lon In tlx'" law by which the excuses lor tiulr hospital treatment or of their Inter-ii Inter-ii it t could be met out of public funds. The Red Cross contributed a thousand thou-sand dollars, and the remainder of the necessury expenses was made tip by private contribution, chiefly from Iho force (if the forest rrvlie and Its employes. I recommend that siiltnblo legislation be adopted to enable the M-erelury of agriculture t i meet 'he moral obligations of the government In iIiIh respect. The specific fund for lighting "res was unlv about $ K!.".'i(i0, but there existed ex-isted discretion In the sc- ( In case of an emergency to apply other funds tn his control to liioi p;ip e. and he did to to the extent cf nearly n million of dollars, which will Involve In-volve the presentation of a dellciency estimate for the current (iscul year of over jOno Ooii The damage done was not therefore duo to the lack "f an appropriation by congress available t; meet the emergency hilt the dlttlculty or lighting it lay In the remote points where the f't-s begau and where t was Impossible with the roads and trails as they now exi-t promptly to reach them. Proper proud Ion necessitates, neces-sitates, as the secretary points out, the expenditure of a good deal more money in the development of roaJs nnd trails In the forests, the establishment establish-ment of lookout stations, and telephone tele-phone connection between them and places where assistance can be se-cured. se-cured. The amount of rcforest.nl n shown In the report of the forest service only about 1 .nun acres as compared with the in. onii. onn of acres of nation nl forests seems small and I am glad to note that In this regard the secretary of agriculture and the chief of the forest service are looking forward for-ward to far greater activity In the ire of available government land for Ibis purpose. Progr ss has been made In learning hy eiv rinient the best methods of reforesting. re-foresting. Congress Is arpealed to now by the secretary of agriculture to moke the appropriations needed for enlarging the usefulness of the forevt service in ibis regard. I hope that coiipre-s will-approve and adopt the estimate of the secretary for this purpose. Commerce and Labor. The secretary of the department of commerce and labor has had under his immediate supervision the application of the merit system of promotion to a large number of employes, and his discussion of this method of promotions promo-tions based on actual experience, 1 j commend to the attention of congress con-gress The Census Bureau. I The taking of the census has pro- I creded with promptness and efficiency. ef-ficiency. The secretary believes, and ' I concur that It will be more thorough thor-ough and accurate than any census which his heretofore been taken, hut It Is not perfect. The motive th't prompts men with a false civic pride i to induce the padding of census returns re-turns In order io Increase the population popula-tion of a particular city has be. n strong enough to lead to fraud in respect re-spect to a few cities In this country, and I have directed the attorney general gen-eral to proceed with all 'he vigor he can against th.i-e who are responsible respon-sible for these frauds They have been discovered and they will not Interfere In-terfere wlih the accuracy of the cen-ciift. cen-ciift. but It Is of the highest Importance Import-ance that official inquiry of this sort should not be embarrassed by fraudulent fraud-ulent conspiracies in some private or local interest. Bureau of Corporations. The commissioner of corporations has just completed the first part of a report on the lumber industry In the United Stales. This part does not treat of the question of a trust or combination in th manufacture of Forest Service. 1 have already referred to the for- , r-stH of the United States and thlr extent, and have urged, as I do again, the removal of the limitation upon the power of the executive to reserve re-serve other tracts of land in six western west-ern BtateH In which w ithdrawHl for this purpose Is now forbidden. The secretary of agriculture gives a vory full description of the disastrous llres that occurred during the last summer In the nutional forests. A drought more Intense than ony recorded record-ed in the history of the west had ln-trodiicfd ln-trodiicfd a condition Into the forests which made llres almost Inevitable, and locomotive sparks, negligent campers, and In s"iue cases Incendiaries Incendiar-ies lurulshed the lu-cded Immediate cause. At one time the Hies were so extended that they covered a range of n hundred miles, ana the secretary estimates that standing timber of tho alne of $25,0OO.f'O0 was destroyed. Seventy-six persons In the employ of the forest service were killed and lumber, n subject t- be dean with latfr. The commissioner does rind, however, a condition In the ownership of the standing tlniD r of the I'nlted States, other than tTe government timber, that calls f'T serious attention The direct Investigation made by the I commissioner covered an area which contains so per cent of the privately owned timber of the country His report re-port shows that one-half of the timber In Ibis area is owned by 20o individuals individ-uals and corporations; that II per cent Is owned by three corjioratlAns, and that there Is very extensive Inter-owners-hip of stock as well os other circumstances, nil Tw,",ln" fo friendly, relations among thosn who own a majority ma-jority of this timber, a relationship which might lend to a combination for the maintenance of a pi Ice that would bo very detrimental t thp public Interest, In-terest, and would treat the neerssitv of removing all tariff ob-tacles to tho free importations of lumber from oth er countries. Bureau of Fisheries. I am glad to note In the secretary's report the satisfactory progress wh'ch is being made In rcspeet to the preservation pres-ervation of the seals 'f the PribilofT Islands. Very active steps are being taken by the department of state to secure an arrangement which st all J protect the Pribtlorr herd from the losses due to pelagic sealing. Meantime Mean-time tho governmen: has secure,! seal pelts of the bachelor seals (the kill- i live of which does not interfere with the maintenance of the herd,) from i tho sale of which next month it Is i expected to realize about $J5U,uon, a j sum largely in excess of the rental t paid by the lessee of the co eminent nndcr the previous contract. Bureau of Labor. The commisloner of labor has been actively engaged in comnosing the 1 differences between employers and . employes engaged in Inter-state trans- ; portatlon, un ler the Krdnian act, Joint ly with the chairman of the inter state ; commerre commission I cannot speak I In too high terms of the success of these two officers In conciliation and settlement of controversies, which. but for their Interposition would have resulted disastrously to all Interests. I invite attention to the very serioni Injury caused to all those who are engaged In the manufacture of plios- , phorous matches. The diseases incl- r dent to thid are frlphtful. Hnd a.s matches can bo made from other ma-; terlals entirely innocuous. 1 believe that the Injurious m miifn i ure could, be discouraged and ought to be dls- ( conraged by the Imposition of a heavy federal tax. I i '-Commend the ado-llon ado-llon of this method of stamping out a very serious abuse. Eicrht-Hour Law. Tn 1S92, the present eieht hour lw wa passed, which provides that the services and employment of all laborer la-borer and mechanics who are now or may hereafter be employed by the government of the United Stales, by (Conilnued ou Page Klghl.) PRESIDENT'S MESSAGE! the matter to congress. That commission com-mission has been appointed and Is ensaped In the Investigation and consideration con-sideration of the question submitted under the law. It consists of President Presi-dent Arthur T. Hadlcy. of Yale University, Uni-versity, as chairman; Frederick C. Strauss. Frederick N Judson, PTo-fVsfior PTo-fVsfior D H Mover and Walter L, Fisher, with William Grosv.ald as sec-retary. sec-retary. The third proposal led to such misconstruction mis-construction of lis objects that I am not disposed to press It for further consideration. It was Intended to pt-rmlt railroad acqulescnce in the same rates for the same service over competing railroads, with no obligation obliga-tion to maintain these rales for any time. Safety Appliances and Provisions. The protection of railroad employe fvnin personal injury is a subject of the highest importance and demands continued attention. There have been two measures pending in congress, one for the supervision of boilers and the other for the enlargement of dangerous dan-gerous clearance. Certainly some measured ought to be adopted looking to a prevention of Occidents from these causes. It stems to me that with respect to boilers, boil-ers, a bill mif-'ht well be drawn requiring re-quiring and enforcing by penalty a proper system of Inspection by the Uillway companies themselves which vould accomplish our purpose I suggest sug-gest that the commission be requested to hake a special report as to injuries fiom outside clearance and the best method of reducing them. Valuation of Railroads. The Interstate commerce commission commis-sion has recommended appropriations for the purpose of enabling It to enter en-ter upon a aluatlo of fill railroads. This has always been within the Ju-llsdlctlon Ju-llsdlctlon of tlio commission, but the requisite funds have been wanting. Statistics of the value of each railroad rail-road would be valuable for many purposes, pur-poses, especially If we ultimately enact en-act any limitations upon the power I of ths Interstate railroads to issue I stocks and bonds, as I hope we may, I think, therefore, that in order to I permit a correct understanding of the I fact.T, It would be wise to make a rea-I rea-I sonablc appropriation to enable the Interstate commerce commission lo proceed with due dispatch to the valuation val-uation of all railroads. I have no doubt that railroad companies themselves them-selves can and will greatly facilitate this valuation and make it much less costly In time and money than ha3 been supposed. Fraudulent Bills of Lading. For the protection of our own people peo-ple and the preservation of our credit in forijgn trade, I urge upon congress the Immediate enactment of a hiw under which one who, in good faith, advances monoy or credit upon a hill of lading issued by a common earlier ear-lier upon an interstate or foreign shipment, can hold the carrier liable I for tho value of thp goods described in Ihe bill at the valuation specified In the bill, at .least to th" extent of the advances made in reliance upon it. Such liability exists under the laws of many of the slates. I see no ob-Jr-etion to permitting two classes of bills of lading to be Issued: (1) Those under which a carrier shall be absolutely liable, as aboe suggest-ed.and suggest-ed.and (!') those with respect to which the carrier fhall assume no liability except for the goods actually delivered deliv-ered to the agnt issuing the bill. Tiie carrier might lie permitted to make a small separate specific charge in addition to the rate of transpcrta-tii transpcrta-tii n for such guarantied bill, as an insurance premium against loss from the added risk, thus removing Ihe principal objection whkh I undcr- ! stand Is made by thr- railroad compiles com-piles to the imposition of the liability liabil-ity suggested, namely, that the ordinary ordi-nary transportation rate would not compensate them for the linl llitv assumed as-sumed by the absnbite guaranty of tb accuracy of the bills of lading. I further n commend that n punishment of Tine and imprisonment be imposed upon railroad agents fl shippers for I fraud or misrepresentation in connec- ' tlon with the issnie of bills of lading issued upon interstate and foreign I shipments. I ISxcept as above, j , not recom-I recom-I mend any amendment to the inler-j inler-j state commerce law as It stands I do not now recommend any amend-ent amend-ent to the anti-trust law In other words, It seems to me that the exist-I exist-I lug legislation with reference to the regulation of corporations and the restraint .f their business has reached reach-ed a point wh'ie we can stop for a while and witness the effect of the vigorous execution of the laws on the statute books In restraining the s buses which certainly did exist, and which roused the public lo demand reform. If this test develops a need for further legislation, well .nd go d. but until then let us execute what we have. Due to the reform moe- ments of the present decade, there has undoubtedly been a great Improvement Im-provement in business methods ami standards and in the earnestness of effort on the part of business men to comply wiib ihp jnw Tbcv are now I seeking to km.w the exact limita-j limita-j tlons upon business methods imposed by the law, and these will doubtless I be made clearer Iv the decisions of the snpieme court in cases pending before it. I believe It to be in the interest of all the people of the countrv that for the time being the activities ,,f gov-ernment, gov-ernment, in addition to enforcing the existing laws, be directed toward the economy of administration and the enlargement of opportunities for foreign for-eign trade, the conservation and improvement im-provement of our agricultural land, the building up r.f home industries, and the strengthening of confidence of capital in domestic investment. The White Iluuse, Dec. C. 11H0 of the bureau entire freedom frcm narrow prejudice in this regard. , , Imperial Valley Project. By an act paused by congress, the President was authorized to expend a million dolJarjjrto construct the needed. need-ed. : work to - prevent Injury to the lands of the Imperial Valley from the overflow of Ihe Colorado river. I appointed ap-pointed a competent engineer to examine ex-amine the locality and to report a plan for construction. He has done bo. In order to complete the work It Is necessary to secure the consent of Mexico for part of the work must be constructed In Mexican territory. Negotiations looking to the securing of Buch authority are quite near success suc-cess The Southern Pacific railroaJ company proposes to assist us in the work by lending equipment and by the transportation of mateilal at cost price, and It is hoped that the work may be completed before any danger 6hall arise from the spring floods In the river. This leads nie to Invite the attention of congress to the claim made hy the Southern Pacific railroad company for an amount expended in a similar work of relief called for by a flood and great emergency. This work, as I am informed was undertaken at the request of my predecessor nn1 under un-der promise to reimburse the railroad company. It seems to me the equity of this claim Is manifest, and the only question involved is the reason- able value of the work done. I recommend recom-mend the payment of the claim in a I sum found to b6 JusL i I also renew my recommendation that steps be taken looking to the holding of a negro exposition In cele- i bration of the 50th annhersary of the Issuing by Mr! Lincoln of the Emancipation Emanci-pation Proclamation Civil Service Commission. The civil service commission has continued its useful duties during the year. The necessity for the maintenance mainten-ance of the provisions of the civil service ser-vice law was never greater than today. to-day. Officers responsible for the policy of the administration, and their Immediate personal assistants cr deputies dep-uties should not be included within the classified service; but In my Judgment, Judg-ment, public opinion has advanced to the point where it would support a bill providing a secure tenure dining eflliclency for all purely administrative administra-tive officials. Economy and Efficiency. i The Increase in the activities and j In the annual expenditures of the federal fed-eral government has been so rapid and so great that the time hss coin5 to check the expansion of government I activities in new directions until we have tested the economy and efficiency with which the government of today is being carried on. ' The committees on appropriations of congress have diligently worked to reduce the expenses of government and have found their efforts often blocked by lack of ;ccuraie information informa-tion containing a proper analysis of requirements and of actual and reasonable rea-sonable costs At an early date I shall send to congress a special message on this subject. Civil Service Retirement. It Is impossible to proceed far in s.ich an investigation without perceiving perceiv-ing the nee I of a suitable means of eliminating from Ihe service the superannuated. su-perannuated. This can be done in cue of two ways, either by straight civil pension or bv some form of contributory con-tributory plan The president then discusses the objections to a civil pension pen-sion and the experience of England and other countries with pension plans and says: The simplest and most Independent solution of the problem for both employes and the government Is a compulsory savings arrangement, the employes to set aside from his salary a sum sufficient ith the help of a Literal rate of iu-leiest iu-leiest from the government, lo purchase pur-chase an adequate annuity for him on retirement, this accumulation to be inalienably his and claimable if he leaves the service before 1 caching the lcitremtnt age or by his heirs In case of his death. This Is the principle upon up-on which the Gillette bill, new pending is draw n. The Gillette bill, however, goes fur-t'.ier fur-t'.ier and provides that the government shall contribute to the pension fund or those emploves who are now so ad ';.n:ed In age that their personal contributions will noi be sufficient to cc-ate their annuities before reaching reach-ing the retirement age. in my Judg- ii ent this provision should be amend ed so that the annuities of these employes em-ployes shall bo paid out of the sal-a-!es appropriated for the positions vacated by retirement, and that the difference between the annuities tlrjs l,runted and the salaries may be use 1 lor the employment of efficient clerks at the lower grade. If the bill can be thus amended I recommend its passage as it will Initiate a valuable system and ultimately result in a great saving in the public expenditures. expendi-tures. Interstate Commerce Commission. There has not been tlrne to test the benefit and utility of the amendments lo the liuerbtate commerce law contained con-tained In the act approved June IS, l'.UO. The law as enacted did not contain all the features which I rec-OiLtuend. rec-OiLtuend. It did not specifically do ncunee as unlawful the purchase by one of two parallel and connecting rends cf the stock of the other. Xor did It subject to the res' raining in-l.'uc-uce of the interstate commerce I commission the power of corporations j engaged in operating interstate rall-I rall-I mads to Issue new stock und bonds; j nor did It authorize the making of I temporary agreements between rail-ltads. rail-ltads. limited to thirty -lavs, fixing the sam? rates for traffic between the s-;ujo places. I do not press the con-J con-J slderatton of any of these subjects upon congress at Ihls session. The object of the first provision is probably prob-ably generally covered by the antitrust anti-trust law. The second provision was in the act referred to the consideration considera-tion of a commission to be appointed j by the executive and to reKrt upon (Continued From Page Fivci) the, District of Columbia, or. by -an'r eontractor or' sub-contractor on any of the public works of the United States and of the said District or Columbia Col-umbia Is hereby-restricted-to ekht hours in any one calendar day, and k shall be unlawful, ?ic, etc. This law has been construed to limit lim-it the application of the requirement to those who are directly employed by the government or to those who are employed upon public works situated situ-ated upon land owned by the United States. This construction prevented lis application to government battleships battle-ships and other vessels built in private pri-vate ship-yards and to heavy guns and armor plate contracted for and made at private establishments. The proposed act provides that no lahorer or mechanic dolnc any part of the work contemplated by a contract con-tract with the United States In the employ of the contractor or any subcontractor sub-contractor shall be required or permitted permit-ted to work more than eight hours a day In any one calendar day. It seems to me from the past history that the government has been committed commit-ted to a policy of encouraging the limitation of the day'B work to eight . hours In all works nor construction Initiated by Itself, and It seems to me illogical to maintain a difference he-tween he-tween government work done on government gov-ernment soil and government work I done in a private establishment, when the work 16 of such large dimensions , and involves the expenditure of much . labor for a considerable period, so j " that the private manufacturer may ad-1 just himself and his establishment to ' the special terms of employment that 1 he must make with his workmen for this particular Job. To require, how- ever, that every small contract of i manufacture entered Into by the government gov-ernment should he carried out by the I contractor with men working at eight J hours would be to Impose an intolcr able burden upon the government by limiting Its soiirces of supply and ex .eluding altogether the great majority ! of those who would otherw Ise compete j for its business. ' The proposed act recognizes this in the exceptions which It makes to con- j tracts. I 1 "For transportation by land or wa-1 ter, for the transmission of Intelligence Intelli-gence and for such materials or articles ar-ticles as may usually be bought in the open market whether made to conform to particular specifications or not, or for the purchase of supply by the gov-' gov-' conform to particular specifications or not." I recommend that Instead of enacting enact-ing the proposed bill, the meaning f which fs not clear and definite and might be given a construction embarrassing em-barrassing to the public interest, the ; present act be enlarged by providing I that public works shall be construed . I to include not onlv buildings and work I ! upon public ground, but also ships. armor and largo guns when made in private yards or factories. One of the great difficulties in en-foielng en-foielng this eight-hour law is that Its application under certain emergencies become exceedingly cppressivc and there is a iireat temptation to subordinate subord-inate officials to evade it. I think that it would be wiser to allow the president, presi-dent, by executive order, to declare an i emergency In special Instances in which the limitation might not apply j and, In such cases, to permit the payment pay-ment by the government of extra compensation com-pensation for the time worked each day in excess of eight hours. I mav add that my suggestions in respect to this legislation have the full con- ; currence of the commissioner of la- , bor. Workmen's Compensation. j In view of the keen, widespread in- 1 terest now felt In the United States in a system of compensation for In J dust rial accidents to supplant our present thoroughly ur.satrsfactory sys- , tern of employers" liability (a subject , the importance of which congress has I already recognized by the appoint ' ment of a commission.) I recommend that the International Congress on Industrial Insurance be Invited to hold its meeting in 1013 in Washington, and that an appropriation of $10 000 be made to cover the necessnry ex- penditures of organizing and carrying on the meeting Bureau of Immigration. The President declares that immigration immi-gration into this country is increasing increas-ing each year. He deprecates the proposed enlargment of the buildings and of the force at Ellis Island for the purpose of permitting the examination examin-ation of more immigrants per day than are now examined. If. he says, it Is understood that no more Immigrants Immi-grants can be taken in at New York than are now taken In and the steamship steam-ship companies thus are given a reason rea-son and a motive for transferring immigrants im-migrants to other ports, we can bo confident that Ihev will be better distributed dis-tributed through the country. Everything Every-thing which tends to send the immigrants immi-grants west and south into rural life helps the country. The President ap proves the proposal to increase the fine against the companies for violation viola-tion of the regulations, and In ghlng greater power to the commissioner to enforce more, cat e ou Ihe part of the steamship companies in acceplii immigrants. im-migrants. Continuing, he tays; The recommendation of tne secretary, in i which he urges that the law may be amended so as to discourage the sep . aration of families is, I think, a good one. j Miscellaneous Subjects. ; President Taft. renewing his recommendation recom-mendation for the creation of a bureau bu-reau of health, says he regrets assertions asser-tions that such a bureau Is to bo made in the interest of a particular school of medicine. It ftc-ms lo me, he says, that this assumption Is wholly whol-ly unwarranted, and that those re-sensible re-sensible lor the government can be trusted to secure in the personnel of the bureau the appointment f rc-n-resentatives of all recognized schools of medicine, and in the management |