tui; aioicxix;- okkcjomax, Wednesday, wvemueh v, ivos.
PRESIDENT ROOSEVELT'S ANNUAL MESSAGE
12
vfT- ..-'v.'-"-. :. .. .V
WASHINGTON", Dec. 8. President
Roosevelt's message was tranpmltted to
both houses of Concress today. The
message follows:
To the Senate and Home of Representa
tive.:
The financial standing of the Nation a
th present time Is excellent, and the flnun
n.i nnmrnt of the Nation's Interest!
by the Government during- tne last seven
vesrs has shown the most satinariory re
.11. K..t nur nirrtnrr ystera Is Imoer
f-cl. and It Is earnestly to be hoped that
the Currency Commission win oe on
nmMi a thoroughly good system whlc
will rio uir with the eslstlna- defects.
nurin the Deri-id from July 1. t
c.ni.mhrr :w. tl.ere was an increase
in the .mount of money In circulation of
r.rni nni .a9. The Increase In the per raplt
ri.irlnr this neriod was S7.0&. Within this
rim. thr. were severs! occasions when I
was necessary for the Treasury Department
to come to the relief of the money market
by purchases or redemptions of 1'nilrd f tales
bonds: by im-rcaaine: apoens ,n niuumi
banks: by stimulating; additional Issues of
National bank notes, and by f c-illlatln
imMinitlnm from abroad of cold. Ou
Imperfect currency system h nisde these
proceJlnas necessary, sna tney r.ers ii
r.cilv. until the monetary disturbance In
th Fall of 197 Immensely Increased the
difficulty of ordinary methods of rel.-r.
Bv the middle of November the mailable
working; balance In the Treasury ba.l been
reduced to appronraately ...ixm'i. i ier-lna-bouse
associalt-ins th;-oush.-ur in coutl
trv had been ohli.-d to resort to the ex
pedient of Issulns clcsnnithouse ccrtin-
csles. to l-e tisea as monc. in t"i r
enir It arss detc-miiied to Ir.vlte nii.scrlp-
tli-n ffit- lMIMt- IVimma t'snsl bonds,
nil l0.O.H.lv .1 per cent certirk-ales of
Indebtedness authorised by tlie act f June
IX l.V It proposed to re-depK.;.t
In the' National hanks the proceeds of these
lssos. and 10 rtcrmlt their use as a basis
for additional circulattna notes of National
banks. The moral effect of this procedure
was so great thai It was necessary to Iwue
onlv 24.mi.l0 of the Panama Canal bonds
and $l5.4:i6.."i'd of the certificates of in
debtedness.
Net Surplus In Srre Years.
Purine the pert d from July 1. 1001. t
September Jo. IMS. - the balance between
the net ordinary receipts and the net ordi
nary expenses of the Government showed
a surplus In the four years ll2. ll'OS, It""
and 19o". and a deficit In the three years
1SMI4. li05, iwis and a fractional part of
the fiscal ver 1tX. The net result was
a surplus of Sim.2s3.41tl . '.4. The financial
operations of th Government during this
period, based upon these cllllerenoes Deisfwi
receitts and expenditures, resulted In a net
reduction of the Interest -bearinr debt of
the 1 nlted States from !". Hl.Ot.i to -:.".3.P9U.
notwithstanding that there had
been two sa.les of Panama Cnnal bonds
amounting- In the aggregate to f.Y.&U.VM.
and an Issue of 3 per cent certificates of
Indebtedness nnder the act of June 13,
I1S. amounting to 15.43i..VH). Refunding
operations of the Treasury Department
tinder the act, of March 14. IPoO. resulted
In the conversion Into 2 per cent consols
of 1M0 of -.'Oti.3iy.4(0 bonds bearing higher
rates of interest. A d-crease of $s.i-S7.l."6
In the annual Intereet charge resulted from
these operations.
In short, during the seven years and three
months there has been a net surplus of
nearly $100,000,000 of receipts over ex
penditures, a reduction of the interest
bearing debt by f 'J0.ooo.000. In spite of the
extraordinary expense of the Panama
Canal, and a saving of nearly $!O00.l00
on the annual interest charge. This Is an
exceedingly satisfactory showing, especially
In view of the fact that during this pericd
the Nation has never hesitated to under
take any expenditure that it regarded as
necessary. There have been no new taxes
snd no Increases of taxes: on the contrary
some taxes hsve been taken off: there has
been a reduction of taxation.
Only Federal Control Effective.
Aii regard th great corporation en
raged In Interstate business, and especially
thw railroads, I can only repeat vhat I
hav already again and again snld In my
meFftaRea to tha Congress. I bellve that
under the Interstate clause of the Const l
t ut ton the iTnited States has complete
and paramount riffht to control all agencies
of imeratMe commerce, and X believe that
the National Government alone can exer
cise thl right with wisdom and effective
ness so as both to secure Justice from, and
to do Justice to, the great corporations
which are the most important actors in
modern business I believe that It i worse
than folly to attempt to prohibit all com
binations as is done by the Sherman .anti
trust law. because such a law can ti cn-fr.r-ec
only imperfectly and unequally, and
Its enforcement works almost as murh hard
ship as good. I strongly advocate that
Instead of an unwise effort to prohibit all
combination, there shall be substituted a
law which shall expressly permit combina
tions which are la the Interest of the pub
lic but shall at the same time give to
some agency of the National Government
full nower of control and supervision over
them. One of the chief feat urea of this
control should be securing entire publicity
in all matters which the public has a right
to know, and furthermore, the power, not
by judicial but by executive action, to pre
vent or put a at or to every form of im
proper lavontism or other wrongdoing.
Regulation of Railroads.
The rjit ways of the country should be
put completely under the Interstate Com
merce Commission and removed from the
domain of the antl-!rist law. The power
or tne i ommission should be made thor
oughgoing, sn that it could .exercise com
plete supervision and control over tha Issue
of securities as well as over the raising
ii a lowering or rates. as regards rates,
at least, this power should be summary.
The power to Investigate the financial ope
rations and accounts of the railways his
neen one or the most valuable features in
recent legislation. Power to make com
binations and traffic agreements should be
explicitly conferred upon the railroads, the
permission of the Commission belns Brat
gained and the combination or agreement
being published in all Its details la the
Interest of the public the representatives
t the public should have complete power
to tee that the railroads J6 thir duty T
the public, and as a matter of course this
power should also be exercised go as, to
ae that no injustice Is done to th9 rail
roads. The shareholders, the employes and
the shippers all have interests that must
guarded. It is to the interest of all of
Thm that no swindling stock specula
tion should be allowed, and that there
should h no Improper issuance of ' securi
ties. The guiding intelligences necessary
. for the successful building and successful
management of railroads should receive
ample remuneration; but no man should
be allowe.i to make money in connection
with railroads out of fraudulent over-capitalization
and kindred stcck-gamblirg per
formances; there must be no defrauding of
.Investors, oppression of the fanners and
business men who ship freight, or callous
Wisrea-ard of the richts and needs of the
employes. In nddftiot to thlfc the Interests
of the shareholders, of the employes, and
. of the shippers should all be guarded as
against one another. To give any one of
them onriufl and- Improper consideration is
to do Injustice to the others. Hates must
be made as low as t compatible with giv
ing proper returns to all the employee of
tlje railroad, from the highest to the low
est, and proper returns to the shareholders;
but they must not. for example, be reduced
In auch fashion as to necessitate a cut In
tiia wages of the employes or the abolition
of the proper and legltimata profits of hon
est sharhoUlrs.
Telegraph and telephone companies en
gaged in Interstate business should be put
under the Jurisdiction of tile Interstate
Commerce Commission.
Protect High I f All Alike.
It is very earnestly to he --iFhed that our
people, through tneir representatives, snould
a.t in this matter. It is " hard to say
whether most damage to th country at
large would come from entire fnilure on
the part of the public to supervise and
e.mtroi the actions iT tho jcTJai corpor
ations, or from the cxercie of the neces
ary governmental power in a way which
would do injustice aud wrong to the cor
poratiens. Both -he preachers of an un
restricted individualism, and the preachers
of an oppression which would deny to able
men of business the Just reward of their
Initiative and business sagantv, are advo
cating policies that would be fraughL-with
the gravest harm to the whole country. To
permit eery law lesj capitalist, tverv law
defying corporation, to take any action, no
matter how Iniquitous, in the effort to se
cure an improper profit and to build up
privilege, would be ruinous to the Republic
and wou'd mark the abandonment of the
effort to secure In the Industrial world the
spirit- of democratic fair-dealing. On the
other hand, to attack these wrongs In thit
spirit of demsgogy which can see wrong
only when rommitt-'d by the man of wealth,
and is dumb and blind in the presence of
wrong committed ait a i net mn of prop
erty or by men of no property, U exactly
Hi
IVrmit combinations in public interest, but under National control. t
Put rnilroaJs completely under Interstate Commerce Commission and remove them from domain of anti
trust law.
Give Commission control of issue of securities by railroads.
Allow railroads to combine and make traffic agreements with permission of Commission.
FOR BENEFIT OF LABOR.
P. it retcffrwpli and telephone companies under supervision of Commission.
Provide employers liability for Injuries; to workmen sustained by Government employes and employes
of corporations In interstate commerce.
Citve Government workmen half holidaysMn Summer.
Kxtend operation of elierht-hour laws. v ,
1oubIe salaries of Federal Judges.
Ih away with delays in administration of justice.
Limit power of injunction exercised by courts and require bearing on temporary injunctions within cer
tain period.
Provide asrainst deforestation and for preservation of all natural resources. x
IMPROVE INLAND WATJ3R1VA YS.
Pro Me for improvement of inland waterways according to system, instead of haphazard methods, and
create permanent commission for purpose.
Place National parks under control of Forest Service, with superintendent and corps of scouts or rangrers
for each.
Kxtlnftulsh system of Indian agents.
Allow secret service to be employed in any branch of public service.
POSTAL SAVIA'GS BAKS " v
KstaUllsh postal savings banks.
Kstabllslr local parcels post on rural routes.
Increase appropriations for National Bureau of Education.
Place Census Bureau under civil service law and remove geographical requirements, -as to employes.
Concentrate all bureaus dealing with public health in one department.
Place Public Printer under control of Secretary of Commerce and Labor; Soldiers' Homes under War
Iepnrtment. and all independent commislons and bureaus under appropriate departments.
Admit Arizona and New Mexico hs separate states.
FEDERAL CONTROL OF FISHERIES.
Put fisheries in insterstate waters, like Columbia River, under Federal control. Extend interstate game
laws to include fish. Put Alaska seals under control of Fisheries Bureau.
Grant mall subsidies to steamer lines V South America, Asia, the Philippines and Australia.
Improve Hawaiian harbors; amend coastwise shipping laws -relating to Hawaii; modify alien contract
labor law applying to Islands: f'rtify Peari Harbor to make It impregnable and increase garrison.
Confer American citizenship on Porto Ricans.
IMPROVE ARMY AXD XAVV.
Amn.d lws for promotion of Army officers, so that seniority alone snail not rule, and incompetents may
be retired. Reorganize cavalry. Establish general service corps. Create extra officers so that some may be
assigned to training militia without depleting regular service. Provide plan for organizing volunteers in time
of war, and to promote rifle practice among civilians.
For the Navy Provide four battleships, additional destroyers and collier?; change General Board Into
General Staff; provide promotion by merit; provide two hospitals; graduate midshipmen as ensigns.
as evil, as corruptly to defenj the wronjr
doins; of men of wealth. The war we wiiice
mut be waged against misconduct, aratuat
wronfrdoins; herever it is found; end w e
must stand heartily for the rljrht of every
decent man. whether he be a m:in of groat
wealth or & man who earns his livelihood
as a wageworker or a tiller of the soil.
Enrmien at Both Kstrcmes.
It is to the interest of all of us that there
should be a premium put upon individual
Initiative and Individual rapacity, and an
ample rward for the great directing intel
ligences alone competent to manage the
great business operations of today. It Is
well to keep in mind that exactly as the
anarchist is the worst enemy of liberty and
the reactionary the worst enemy of order.
so the men who defend the rights of prop
erty have most to fear from the wrong
doers of great wealth, and the men who are
cnampioninjr popular rights have most to
fear from the demagogues who In the
name of popular rights would do wrono; to
and oppress honest business men, honest
men of wealth; for the success of either type
of wrongdoer necessarily Invites a violent
reaction against the cause the wrong
doer nominally upholds. Jn point of danger
tne nation there Is nothing to choose
between on the ope hand the corruptionist.
the nribe-glver. the bribe-taker, the man
who employs his gret talent to swindle his
fellow cltisens on a large scale, and, on
the other hand, the preacher of class hatred.
the man who. whether from Ignorance or
from willingness to sacrifice his country to
his ambition, persuades well-meaning but
wrong-headed men to try to destroy the ln-
truments upon whirh our prosperity mainly
rests. T-et each croup of men beware of
nd guard aeainst the . shortcomings to
which that group is Itself most llahie. Too
often we see the business community In
epirlt of unhealthy class consciousness d
plore the effort to hold to account under
he law tit wealthy men who In their
management of great corporations, whether
railroads, ntreet railways, or other industrial
nterprises, have behaved In a way that
revolts the conscience of the plain, decent
people. ucn an attituae cannot be con
demned too severely, for men of property
noma recognize that they Jeopardize the
ighta or property when they fail heartily to
join In the effort to do away wlth abuses
of wealth. -On the other hand, those who
advocate proper control on behalf or th
public, through the state, of these great
corporations, and of the wealth engaged on
giant scale in business operations, must
ever keep In mind that unless they do
scrupulous luHfce to the corporation, tin-
less they permit ample profit, and cordially
encourage capable men of business so long
as they act with honesty, they are striking
at the root of our National well-being; for
in the long run under the mere pressure of
material distress, the people as a whole
would probably g-o back o the reign of
an unrestricted individualism rather than
submit to a control by the state so drastic
and so foolish, conceived in a spirit of such
unreasonable and narrow hostility to wealth,
as to prevent business operations from be
ing profitable, and therefore to bring ruin
upon the entire business community, and
ultimately upon the entire body of citizen.
Only Nation Can Control Traits.
The opposition to Government control of
these -great corporations makes its most
effective efTort in the shape of an appeal to
the old doctrine of states' rights. Of course
there are many sincere men who now believe
In unrestricted Individualism In business.
Just as there were formerly many sincere
men who believed in slavery that is. in
th unrestricted right of an individual to
own another Individual. These men do not
by themse!ves have great weight, however.
The effective fight against adequate Gov
ernment control end supervision of individ
ual, and especially corporate, wealth en
gaged in interstate business Is chiefly done
under cover: and especially under cover of
an appeal to states' rights. It Is not at
all infrequent to read In the same speech,
a denunciation of predatory wealth fos
tered by special privilege and defiant of
both the public welfare and law of the land,
and a denunciation of centralization in the
central Government of the power to deal
with this centralized and organized wealth.
Of course, the policy set forth In such
twin denunciations amounts to absolutety
nothing. for the first half Is nullified by
the second half. The chfef reason, among
the many sound and compelling reasons, that
led to the formation of the National Gov
ernment was the absolute need that the
Union, and not the several states, should
deal with Interstate and foreign commerce;
and the power to deal with interstate com
merce was granted absolutely and plenarily
to the central Government and was exer
cised completely as regards the only In
struments of interstate commerce known
In those days the waterways, the high
roads, as well as the partnerships of indi- '
viduals who then conducted all of what I
business there was. Interstate commerce
la now chiefly conducted by railroads; and
the great corporation has supplanted tha
mass of small partnerships or individuals.
The proposal to make the National Gov
ernment supreme over, and therefore to
five It complete control over, the railroads
nd other instruments of Interstate com
merce Is merely a proposal to,rarry out to
the letter one of the prime purposes If
not the prime purpose for which the Con
stitution was founded. It does not repre
sent centralisation. It represents merely the
acknowledgement of the patent fact ' that
centralization has already come in busi
ness, if this irresponsible outride business
power is to be controlled in the interest of
the general public It can only be controlled
in one way; by giving adequate power of
control to the one sovereignty capable of
exercising such power the National Gov
ernment. Forty or 50 separate state govern
ments cannot exercise that power over cor
porations doing business in most or all of
them; first, because they absolutely lack the
authority to deal with Interstate business in
any form ; and second, because of the In
evitable conflict of authority sure to arise
In the efTort to enforce different kinds of
state regulation, often inconsistent with one
another and sometimes oppressive In them
selves. Such divided authority cannot reg
ulate commerce with wisdom and effect.
The central Government is the only power
which, without oppression, can nevertheless
thoroughly and adequately control and su
pervise the large corporations. To abandon
the effort for National control means to
abandon the effort for all adequate control
and yet to render likely continual hursts
of action by state legislature, which can
not achieve the purpose sought for, but
which can du a great deal of damage to
PRESIDENT ROOSEVELT'S RECOMMENDATIONS
the corporation without conferring any real
benefit on the public.
Knn Trusts in Public Interest.
I believe that the more farsighted cor
porations are themselves coming to recog
nize the unwisdom of the violent hostility
they have displayed during the last few
years to regulation and control by the Na
tional Government of combinations engaged-
In interstate business. The truth is tjiat
we who believe In this movement of assert
ing and exercising a genuine control. In
the public interest, over these great cor
porations have to contend against two sets
of enemies, who. though nominally opposed
to one another, are really allies In prevent
ing a proper solution of the problem. There
re, first, the bifc corporation men. and
the extreme 'Individualists among business
men. who genuinely believe in utterly un
regulated buslness that is, in the reign
of plutocracy ; and, second, the men who.
being blind to the economic movements of
the day, believe In a movement of repres
sion rather than of regulation of corpora
tions, and who denounce both the power of
the railroads and the exercise of the Federal
power which alone can really control the
railroads. Those who believe in efficient Na
tional control, on the other hand, do not
in the least object to combinations; do not
In the least object to concentration in busi
ness administration. On the contrary, they
favor both, with the all-important proviso
that there shall be such publicity about
their workings, and such thorough-going
control ove them, as to insure their being
In the interest, and not against the interest,
of the general public. We do not object
to tho concentration of wealth and ad
ministrntlon; but we do believe In the dis
tribution of the wealth In profits tq .the
real owners, and In securing to the public
the full benefit of the concentrated adminis
tration. We believe that with concentration
In administration there can come both the
advantage of a large ownership and of a
more equitable distribution of pronts, ana
at the same time a better service to the
commonwealth. We believe that the ad
ministration should be for the benefit of
the many, and that greed and rascality,
practiced on a large scale, shouia ne pun
ished as relentlessly as If practiced on i
small scale.
We do not for a moment believe that the
nroblem will be solved bv any short and
easy met hod. The solution will come only
bv nressinv various concurrent remedies.
Pome of these remedies must He outside
the domain of all government. Pome must
lie outside the domain of the Federal Gov
ernment. But there I legislation which the
Federal Government alone can enact and
which is absolutely vital in order to secure
the attainment of our purpose. Many laws
are needed. There should be regulation by
the National Government of the great in
tretate corporations, including a simple
meihort of account keening, nuiiiicity. super
vision of tlie issue of securities, abolition of
rebates and f special privileges. mere
should bc short time franchises for all cor
norations engaged In public business; in
eluding the corporations which get power
from water ria-hts. 1 liere SIlOUiQ De i
tlonal as well as state guardianship of mines
and forests. The labor legislation herein
after referred to should concurrently be en
acted into law.
Ve AU Power Nation Una.
To accomplish this, means, of course, i
certain increase In the use of not the
creation of power, by the central Gov
eminent. The power already exists; It does
not have to be created; the only question
Is whether it shall be used or left ldl
and meanwhile the corporations over which
the power ought to be exercised will not
remain Idle. I-et those .who oniect to tnu
Increase in the use of the only power avail
able, the National power, he frank, and
admit openly that they pVopose to abandon
any effort to control the great business cor
porations and to exercise super vudon over
the accumulation and distribution of wealth.
for such supervision and control can only
come through this particular kind of in
crease of power. We no more believe In
that empiricism which demands absolutely
unrestrained individualism than we do In
that empiricism which clamors for a dead
ening socialism which would destroy , all
individual initiative ana wouia ruin tne
country with a completeness that not even
an unrestrained Individualism itself could
achieve. The danger to American democracy
lies not In the least In the concentration
of administrative power In responsible and
accountable hands. It lies In having the
power insufficiently concentrated, so that
no one can be held responsible to the people
for Its use. Concentrated power Is palpable,
visible, responsible, easily reached, quickly
held to account. Power scattered through
many administrators, many legislators,
many men who work behind and through
legislators and administrators, is Impalp
able, is unseen, Is Irresponsible, cannot be
reached, cannot be held to account. Dem
ocracy Is In peril wherever the administra
tion of political power is scattered among
a variety of men who work in secret, whose
very names are unknown to the common
people, it is not in peril from any man
who derives authority from the people, who
exercises it. In sight of the people, and
who is from time to time compelled to give
an account of its exercise to the people.
;lve Iibor Larger Share.
There are many matters affecting labor
and the status of the wage worker to
which I should like to draw your attention,
but an exhaustive discussion of the prob
lem in all its aspects Is not now necessary.
This administration is nearing its end;
and. moreover.- under our form of govern
ment t he solution of the problem depends
upon the action of the states as much as
upon the action of the Nation. Nevertheless,
there are certain considerations which I
wish to set before you, because I hope
that our people will more and more keep
them in mind. A blind and Ignorant re
sistance to every effort for the reform of
abuses and for the readjustment of society
to modern industrial conditions represents
not true conservatism but an incitement to
the wildest radicalism ; for wise radicalism
and wise conservatism go hand in hand, one
bent on progress, the other bent on seeing
that no change Is made unless in the right
direction. I believe In a steady effort, or
perhaps It would be more accurate to say
in steady efforts In many different direc
tions, to bring about a condition of affairs
under which the men who work with ha ad
or with brain, the laborers, the superintend
ents, the men who produce for the market
and the men who find a market foe the
articles produced, shall own a far greater
share than at present vof the wealth they
produce, and be enabled to Invest it in the
tools and instruments by which all work La
carried, on. As far as possible, I hope to
see a frank recognition of the advantages
conferred by machinery, organization, and
division of labor, accompanied by an effort
to bring about a larger share in the owner-
shin hy wageworker of railway, mill and
factory. In farming, this simply mean;
that we wish to see the farmer own h
own land; we do cot wish to see th
farms so large that they become the prop
erty of absentee landlords who farm them
by tenants, nor yet so small tnat 11
farmer becomes like a European peasan
Again, the depositors In our savings bank;
now number over one-tenth of our entire
population. These are all capitalists, wh
through the savings banks loan their mone
to the workers that is. In many cases to
themselves to carry on their various in
dustrfes. The more we increase their num
ber, the more we introduce the principle;
of co-operation into our industry. Every
increase In the number of small stock
holders In corporations ia a good thing for
the same reasons; and where the employes
are the stockholders the result Is par
ticularly good. Very much of this move
ment must be outside of anything that can
be accomplished by legislation; but legisla
tion can do a good deal. Postal savings
banks will make it easy for the poores
to keep thein sayings in absolute safety.
The regulation of the National highway
must be such that they shall serve
ill
people with equal justice. Corporate
finances must be supervised so as to make it
far safer than at present for the man
small means to Invest his money In stocks.
There must be prohibition of child labor,
diminution of woman labor, shortening of
hours of all mechanical labor; stock water
ing should be prohibited, and stock gamb
ling so far as is possible discouraged. There
should be a progressive inheritance tax on
large fortunes. Industrial education should
i be encouraged. As far as possible we
should lighten the burden of taxation on
the small man. We should put a premium
upon thrift, hard work, and business en
crgy ; but these qualities cease to be the
main factors in accumulating a fortune
long before that fortune reaches a poin
where it would be seriously affected by any
Inheritance tax such as I propose. It
eminently right that the Nation should fix
the terms upon which the great fortunes
are inherited. They rarely do good and
they often do harm to those who inheri
them in their entirety.
Ktnployers UabUity Ijiws.
The above is the merest sketch, hardly
even a sketch in outline, of the reforms for
which we should work. But there is one
ma iter with which the Congress should
deal at this session. There should no longer
be any paltering with the question of tak
ing care of the wage workers who, under
our present Industrial system become killed
crippled or worn out as part of the reg
ular incidents of a given business. The
majority of wage workers must have their
rights secured for them by state action
but the .National Government should legls
late in thoroughgoing and far-reaching
fashion not only for all employes of tho
National Government, but for all persons
engaged in Interstate commerce. The ob
ject sought for could be achieved
measurable degree, as far as those killed
or crippled are concerned, by proper em
ployers liability laws. As far as concerns
those who have been worn out. I call your
attention to the fact that definite ateps
toward providing old-age pensions have
been taken in many of our private In
dustries. These may be indefinitely ex
tended through voluntary association and
contributory schemes, or through the agency
of savings banks, as under the recent Mas
sachusetts plan. To strengthen these prac
tical measures should be our Immediate
duty; it Is not at present necessary to con
sider the larger and more general Govern
mental schentes that most European govern
ments have found themselves obliged to
Orir present system, or rather no system
works dreadful wrong, and is of benefit to
only one class of people the lawyers
When a workman Is injured what he needs
is not an expensive and doubUul lawsuit,
but the certainty of relief through Im
mediate administrative action. The num
ber of accidents which result in the death
or crippling of wage workers In the Union
at large is simply appalling; in a very
few years It runs up a total far In excess
ot the aggregate of the dead and wounded
In any modern war. No academic theory
about "freedom of contract or "consti
tutional liberty of contract" should be per
mitted to Interfere with this and similar
movements. Progress in civilization has
everywhere meant a limitation and regula
tion of contract. I call your especial at
tentlon to the bulletin of the Bureau of
j-jmlmii m iiiuu gives u, aitiiumeui. ol inw
methods of treating the unemployed in
European countries, as this Is a subject
which in Germany, for Instance, is treated
In connection with making provision for
worn out and crippled workmen.
Comppensate Federal Employes.
Pending a thoroughgoing investigation and
action there is" certain legislation which
should be enacted at once. The law, passed
at tne last session of Congress, granting
compensation to certain classes of employes
of the Government, should be extended to
include all employes of the Government and
should be made more liberal In Its trms.
There is no good ground for the distinction
made in the law between those engaged
In hazardous occupations and those not so
engaged. If & man Is injured or killed in
line of work. It was hazardous in his
case. Whether 1 per cent or 10 per cent
of those following a given occupation actu
ally suffer injury or death ought not to
have any bearing on the cjuestion of their
receiving compensation. It is a grim loIc
which says to an injured employe or to the
dependents of tone killed that he or they are
entitled to no compensation because very fow
people other than he have been injured or
km lea in that occupation. Perhaps one of
the most striking omissions In the law
Is that It does not embrace peace officer
and others whose lives may be sacriflceu
in enforcing; the laws of the United States.
The terms of the act providing compensa
tion snouia oe raaae more liberal than in
the present act. A year's compensation la
not adequate for a wageearners family
In the event of his death by accident In
the course of bis employment. And in the
event of death occurring, say, 10 or 11
ontTis after the accident, the family would
only receive as compensation the equivalent
of one or two months earnings. In thru
respect the generosity of the United States ;
towards its employes compares most -ua
favorably with that of every country in
f I Europe even the poorest.
I The terms of the act are also a. hard-
snip in prohibiting payment in cases wnore
the accident Is in any way due to the negli
gence of the employe. It Is Inevitable that
daily familiarity with danger will lead
men to take chances that can be construed
Into ntffliirence. So well Is this recognized
I that in practically all countries in the civll-
I Ized world exceDt the United States, only
a great degree of negligence acts as a bar
to securing compensation. Probably in no
other reppect Is our legislation, both v.aie
7 entire civilized world as in the matter of
I liability and compensation for accidents In
I industry- It is humiliating that at Euro-
T pean International congresses on accidents
4 the United States should be singled out as
the most belated among the nations in re
spect to employers uaointy legislation.
This Government Is itself a large employer
of labor, and In Its dealings with its em
ployes it should set a standard in this coun
try, which would place It on a par with
the mot progressive countries in Eurone.
The laws of the United States in this re-
V I RTect n nd the laws of Furooenn mnrrin
have been summarized in a recent bulletin
of the Bureau of Iabor. arid no American
who reads this summary can fall to be
struck by the great contrast between our
practices and theirs a contrast not In any
sense to our credit.
Liability In Washington City.
The Congress should without further de
lay pass a model employers' liability law
for the Iistrict of Columbia. The em
ployers" liability act recently declared un
ennst 1 1 ntlonn 1. on account rtf annarnntlv In.
T I eluding In Its provisions employes encaged
f I in IntraRtafp r0 mm a a a Knca
t I engaged in Interstate commerce, hns been
held by the local courts to be still in effect
so far as its provisions apply to the Dis
trict of Columbia. There should be no
ambiguity on this point. If there is any
doubt on the subject, the law should be
re-enacted with special reference to the
District of Columbia. This act. however,
applies only to employes of common car
riers. In all other occupations the lia
bility law of the District is the old com
mon law. The severity and Injustice of
the common law in this matter has been In
some degree or another modified in the
majority of our states, and the only juris
diction under the exclusive control of the
Congress should be ahead and not behind
the states of the Union in this respect. A
comprehensive employers liability law
should be passed for the District of Colum
bia.
I renew my recommendation made In
previous message that half-holidays be
granted during Summer to all wage work
ers in Government employ.
I also renew my recommendation that
the principle of the eight-hour day should
as rapidly and as far as practicable! be ex
tended to the entire work being carried on
by the Government; the present law should
be amended to embrace contracts on those
public works which the present wording of
tne act seems to exciuae.
Judge' Salaries Law's Delays.
I most earnestly urge upon the Congress
tho duty of Increasing the totally inada
quate salaries' now given to our Judges.
On the whole there is no body of public
servants wno do as valuable work, nor
whose moneyed reward" is so inadequate
compared to their work. Beginning with
the Supreme Court the Judges should have
their salaries doubled. It is not befitting
the dignity of the Nation that its most
honored public servants should be tald
sums so small compared to what they would
earn in private life that the performance
or public service by them implies an ex
ceedingly heavy pecuniary sacrifice.
It is earnestly to be desired that some
method should be devised for doing away
with the long delays which now obtain in
the administration of justice and which
operate witn peculiar severity against ne
sons of small means, and favor only the
very criminals whom it is most desirable
to punish. These long delays In the final
decisions of cases make in the aggregate
a crying evil; and a remedy should be de
vised. Much of this intolerable deltiy Is
one io improper regard paid to techni
calities wnicn are a mere hindrance to
justice. In some noted recent cases this
over-regara for technicalities has resulted In
a striking denial of justice, and flagrant
wrong to the body politic.
Labor's Exorbitant Demands.
At the last election certain leaders of
organized labor made a violent and sweep
ing attack upon the entire Judiciary of the
country, an attack couched In such terms
as to Include the most upright, honest and
broad-minded judges, no loss than those
of narrower mind and more restricted out
look. It was the kind of attack admirably
fitted to prevent any successful attempt
to reform abuses of the Judiciary, because
it gave the champions of the unjust judge
their eagerly desired opportunity to shin
their 'ground into a championship of just
judges who were unjustly assailed. Last
year, before the House committee on the
Judiciary, these same labor leaders formu
lated their demands, specifying the bill that
contained them, refusing all compromise.
stating they wished the principle of that
bill or nothing. They insistod on a pro
vision that In a labor dispute no iniunction-
should issue except to protect a property
right, and specifically provided that tha
right to carry on business should not be
construed as a property right: and in a
eecond provision their bill made legal in a
labor dispute any act or agreement by
or between two or more persons that would
not have been unlawful If done by a sin pit.
person. In other words, this bill legalized
blacklisting and boycotting in every form,
legalizing, for instance, those forms of the
secondary boycott which the anthracite coal
strike commission so unreservedly con
demned, while the right to carry on a busi
ness was explicitly taken out from under
that protection which the law throws over
property. The demand was made that there
should be trial by Jury in contempt cases,
thereby most seriously impairing the au
thority of the courts. All this represented
course of policy which, if carried out.
would mean the enthronement of class
privilege "in Ils crudest and most brutal
form, and the destruction of one of the
most essential functions of the Judiciary
In all civilized lands.
Lesson of Gonipers Defeat.
The violence of the crusade for this legis
lation, and its complete failure, illustrate
two truths which it to essential our people
should learn. In the first place, they ought
to teach the workingman; the laborer, the
wageworker, that by demanding what Is Im
proper and Impossible he plays into the hands
of his foes. Such a crude and vicious at
tack upon the courts, even if It were tem
porarily successful, would inevitably In the
end cause a violent reaction end would band
the great mass of citizen together, forcing
them to aland by all the Judges, competent
and incompetent alike, Tather than to see th
wheels of justice stopped. A movement of
this kind can ultimately result in nothing, but
damage to those In whose behalf it is nomi
nally undertaken. This is a most healthy
truth, which it is wise for all our neonle
to learn. Any movement baeed -on that class
hatred which ax, times assumes the name of
class consciousness" is certain ultimately to
fail, and if it temporarily succeeds, to do
far-reaching damage. "Class consciousness,'
where It is merely another name for the odi
ous vlco of claas selfishness. Is equally nox
ious whether In an employers association or
In a workingmen's association. The move-
ment In question was one in which the ap-
pea l was made to all work In gmen to vote
primarily not as American citizens, but as
Individuals of a certain class in society. Such
an appeal in the first place revolts the more
high-minded and far-sighted among the per
sons to whom it Is addressed, and In the
eecond place tends to arouse a strong antag
onism among ail other classes of citizens,
whom it therefore tends to unite against the
very organization on whose behalf it Is is
sued. The result Is therefore unfortunate
from every standpoint. This healthy truth.
by the way. will be learned by the socialists
If they ever succeed in e.ttablUihing In this
country an important National party ba.ed
on such class consciousness and selfish class
interest.
The wage workers, the wrlcingmen, the
laboring men of the country by the way in
which they repudiated tlie effort to get
them to cast their votes in response to an
ppeal to clstss hatred, have emphasized their
sound patriotism and Americanism. The
whole country has cause to feel pride- In this
attitude of sturdy Independence. In this un
co m prom ieing. Insistence upon acting simply
as good c itlzens. as good A merica ns. w i th
out regard to fancied and Improper class
interests. Such an attitude is an object-lesson
in good citizenship to the entire Nation.
Judge Who Do Most Wrong.
But the extreme reactionaries, the per
sons who blind themselves to the wrongs
now' and then committed by the courts ou
laboring men, should also think seriously as
to what such a movement as this portends.
The judges who have- shown themselves
hie and willing effectively to cnecK tne cii3-
onest activity ot the very ncn man wno
works iniquity by the mismanagement of
corporations, who have shown themselves
alert- to- -do- Justice to th wagworker and
t . ' - : -
t- '"'f "i( -J
Heilig Theater,
NOEDSCA
The Queen of Song NORDICA
The King of Pianos STEIN WAY
Sherman
Following Is a List of the Retail
PORTLAND. OUEGOX
TACOMA. WASHINGTON
SEATTLE, WASHINGTON
NORTH YAKIMA, WASHINGTON
BOISE. IDAHO
OAKLAND, CALIFORNIA
FRESNO, CALIFORNIA
AND OTHER
Sympathetic with the needs of tho mass of
our people, so that the dweller in the tene
ment houses, the man who practices a
dangerous trade, the man who is crushed
by excessive hours of labor, feel that their
needs are understood by the courts the.e
judges are the real bulwark of the court a,
these judges, the judges of the stamp of
the President-elect, who have been fearless
In opposing labor when it has gone wrong,
but fearless aleo In holding to strict account
corporations that work . iniquity, and far
sighted in seeing that the workingman gets
his rights, are the men of all others to
whom -we owe it that the appeal for stu n
violent and mistaken legislation has fallen
on deaf ears, that the agitation for its
passage proved to be without substantial
basis. The courts are jeoparded primarily
by the action of those Federal and state
judges who show inability or unwillingness
to put a stop to the wrongdoing of very
rich men under modern Industrial conditions,
and inability or unwillingness to give relief
to men of small means or waguworkors wno
are crushed down by these modern In
dustrial conditions; who. In other words, fan
to understand and apply the needed reme
dies for the new wrongs produced by the
new and highly complex social and Indus
trial civilization which has crown up in the
last half century.
Judges Lag Behind Progress.
"The rapid changes in our social and in
dustrial life which have attended this rapid
growth have made it necessary that, ia
applying to concrete cases the great rule of
right laid down in our Constitution, there
should be a full understanding and appre
ciation of the new conditions to which the
rules are to be applied. What would have
been an infringement upon, liberty halt a
century ago may be the necessary safeguard
of liberty today. What would have been
an Injury to property then may be necessary
to the enjoyment of property now. Every
judicial decision involves two terms one.
an interpretation of the law; the other the
understanding or tne I act to wnicn it is to
be applied. The great mass of our judicial
officers are I believe alive to these changes
of conditions which so materially affect the
performance of their judicial duties'. Our
Judicial system is sound and effective at
Core, and it remain, and must ever be ninln-
I SPOKANE, PORTLAND and SEATTLE RAILWAY
S TIIR NOHTH BASK HO W.''
g Connecting at Spokane 1U1 g
I THE ORIENTAL LIMITED 1
1 THE SWELL GREAT
B Compartment - Oh.ervnllon - far.
Cars. Hay Coaches
LEAVES HORTI.ASU
S INLAND EMPIRE EXPRESS "THE DAT-
LIGHT TRAIN"' FOR PASCO, WAT-LA
WALLA, SPOKANE - AND 1NTER11KDI-
ATE POINTS; PARLOR -CAR, DININO-
H CAR AND ALL MODERN EQUIPMENT.
Leave Dully. 9:1.'. A. M.,
Eleventh and Hoyt - Street Depot.
S 'PICKETS, SLKKPING AND PARLOR-CAR
RESERVATIONS.
II H. PRKSOX, V. F. Jt"T. A..
S J.33 Third Street,. Portland, Oregon.
aaflMMiiiw
f -i- ,v
Tomorrow Night
& Go
Houses of Sherman, clay & Company:
S PO K A NE. W AST f 1 NG TO X
E LL1 NG H A M . W A Sill NG TON
E V E R ETT, WASH I N G TON
W K N A T("ll V. W ASHIN'ITO N
SAN FRANCISCO, CALIFORNIA
SAN JOSE, CALIFORNIA
LOS ANGELES, CALIFORNIA
CALIFORNIA CITIES
tained. hi tlie mfeguard of tho prJn-ij!.'i
of liberty and justice u hUii stiind at the
foundation of American institutions; f-T. u
Burke finely said, when liberty and Jutl--
are separated, nelt her is p.- fe. There are.
Ju'wcvcr. some nie rubers of the judicial body
who have laired behind in t.ieh- undersiand
ine of t he? g refit and vital charges in the
ho.ly politic, w hi.e mlndtt have nevt r been
opened to the new nppMcut ions of the nii
prlni-jples made necessary by tlie new con
ditions. JudK'.-s of this stamp do Insl fng
harm by their decision bee a use they con
vince (-nor men In need of protection that
the eourt.s of t l:e land at i profound !y 1r n -r-ant
of and out of sympathy wi'h their need?,
and profound I y indlif' ient or ht le to any
promised remedy. To uch men it srenis a
cruel mockery to have any court decide
acafnut them on the ground that it desire
to preserve "liberty' in a purely technical
form, by withholding liberty In any real
and constructive seiifc. It i desirable that
the legislative body .vhonld posscms", and
v herever necfspjiry exerciye, the power to
determine whether in a given case employers
and employes are not on an e-iiiid footing,
jo that the necevUies of tho latter corn n-' I
theni to submit to such exactions ns to hours
and conditions of labor n. unduly to tax
their strength; and only mischief can result
win n such determination s upset on the
ground that there must be no "interference
with the liberty to contract" often a merely
Rcfldcuiic "liberty. the exercise of which,
Is the negation of real liberty.
Decisions Which Nullify liberty.
There are certain decisions by various courts
which have been exceedingly detiinuntal to
the rightH of wageworkers. This is true of
ai! the decisions that decide that men and
women are. by the t'oiu-t ttutior.. "guaranteed
their liberty" to contract to enter a danger
ous occupation, or to work an undesirable
or improper number of hours, or to work in
unhealthy surroundings; ami therefore can
not recover damages when maimed In that
occupation, and can not bs forbidden to work
what the legislature decides is an excessive
number of hours, or to carry on tlie work
under conditions w hleh the legislature de
cides to be unhealthy. Tho most dfngerous
occupation are often tho poorest psid and
those where tlie hours of work are longest:
and in many cass thw who go into them
are driven iy necessity so great that they
hove nraetlcallv no alternntive. iweismrs
sueh as tho,.e flPud'-il
ntve nnHlfr t1.
OIirilEU TRAI.V.
Standard and Tourlut
and UiuiuK-l nr.
1)111. V, 5::i." !
SI'CIloB-
Mlav
THE
NEW
ROUTE
EAST
will