PRESIDENT LAYS
WASHINGTON". Pec. i President Taft
In fcis message to Congress says:
Z Durtag the past year foreign relations of
the Iniitd atee oava continued upon a
tult of friendship and rood uDderstaadin.
Th year baa Un aotabla aa wiinine
ie jaiHc settlement l two Important n
4rnational eontwvtriiw befora ih per
Tuaat court of The liasue.
Tbe arbitration of tbe, nsherlee dispute
bat ween tha United States and Great Brit
ain, which fcas teen t:e source of nearly
ontlououa diplomatic correspondence since
the. i her.es convention "f JM. bar ,V,J
iB e-eard which Is aat'afa-tory to both
paxtiea. The arbitration le particularly
r.otewwrthr not only berauea of lha emi
nently seat results secured, but also be
aus It ta tha ftrt arbitration bald under
he general arbitration treaty of April .
the I'mted tata and 'ire vl
Jiri-aln and disposes c a controversy tr.e
settlement of which ha resisted every ether
resource of dtplomfT. and wtvch for nearly
j0 years has been the cause of friction be
tween two counir1a hoM common interest
Itaa In maintaining tha most friendly and
ro-d!el re at;nrs with each other.
- The President comments upon the
tfloubt cast upon the constitutionality '
th convention of Tha Htcue for the es
tabitsfcraent of a prlxa court, and refers
to the- decision of the. convention of The
Netherlands to obviate the difficulty by
the presentation to the sanatory nations
f a neparate protocol. "It Is sjrattfytna;
t obeerve.' the meAe say, "that this
Additional protocol Is being; signed with
ut objection and that there la every rea
son to believe that the International
r;se court will be soon eslabl.shed." The
rnag continues:
I The Identical circular as propd
!tfct the luterr.a'.ona: rr- ourt. ha
established, should -e ea:-ei with the
barrel a of an arbitral court of Justice
ur.-ier and pursuant to the rwommendatt'io
-adapted by the Hacue conference. The
b-piiee received from the varum powers to
i'lue proposal Inspire tha hop that thia
aio may b a-cornplished within the ren
Vr.iMr near future.
It la believed hat the establishment or
'the two tnaurtais will g a long to
.ard sM-urin th arMtrattoa or nny gu
tuna which heretnfoie threaten"! and at
tiTies datroyd the peace of naihuia.
1 The President says he has not yet ap
pointed the member of the CommtMlon
Authorised "to consider the eapedU-ncy
r- otinsinje existing International aceii
c!ea fr the purpose of limltine; the arm
rfcine.nts of the nations of the world by
-international agreement and of conatltut
,1ns; the combined navies of the world an
International forre for the pre-ervation
r.f universal peace, and to consider and
4-eport upon any other means to diminish
nn expendlturea of -ovcmment for mili
tary purposwa and t Icason the proba
bilities of war." because he U awaltmc
the ejtpresnione of for lirn sroverninents
as to their willinsjness to co-op-rate by
ppolnt.naj similar ronimlsstuiu9 to make
tLlr work effective.
Several Important trestle wjth Great
Britain have been negotiated, a preliml
rary agreement, anionic others, havlns;
een negotiated, for the aettlcment of pe
cuniary claims- Tne n-w provisional gov
ernment of the Republic of Portugal has
teen recoanlxed. The negotiations un
dertaken to ameliorate conditions n Ll
terl are beinc concluded.
' Keference is made bv the President of
t.ie acceasion of His Majesty Mthmet .
Kmperor of the Ottomans, and the de
sire of the fnlted states to contribute
the larger economic and commerctnl
cvlopmcni due to the new regime In
Turkey
T"e President exprescs pleasure in
rsvinc accorded retention of the
1 nlted States to t!ie ut Klnfdom or
Montenegro.
fHlFSC I-OAX MADE ON EQCAL IVI
AaMrtraa Capital ! Be Made la-trwrnewt
fe l.toptre'e Welfare.
The meaaage -iva that the center of
Interest In the Far East ! China, and
adds:
i. I'Mnf to not that th
nnlta-
tlona for a ian ta in
f-.r the rooi'rurttB of ibe trunk riay
Ur.aa from Kank.iie authwa-d
and waetwari ihrous the Yaagta alley,
known as the Hukuane loan w-ra cn-
ciurted by the reprrsen.tla of he variaua
flr.ni.l group In V-y lal. and the re-
..,iia nnfAH nv f-ir '
rern-
mnts Tha b-.lS t tha settlement, tha
trm of this loan. wa one of eaact equality
brwen America, France. German v and
Great Hrialn In respe-"' t fornisMrg the
Wan and aupplvlrg mter1-1a foe t,s pro-ps-d
ralws arJ tb-tr future, branrbee.
The application of the principle nnderlv.
tne the pWiciea of Ibe rniie-l Htatea In re-as-d
to the H-Jkusnc l-an. .: that rr !
lnteraatlonalltln of thw fyetan Interest
in su.-h of tha ralway f Mm as m-v
be flnancad by fore'n ountrlee, m aa aug
Ctsted Mi a br-a.!er s-'" bv the S-re;ry
of btare in a Pr.r.a f r internat.nneliaa
tiejm and comma-rial neutralisailon of all
the railways Jln.-huni.
While the pnn.'tpl which led to the pro
prtaal of th.s r.rnra'Dt was aensral.V
admitted by tha powers to wh -m It ws ad-dr-i"1
tha grtvemmenra of P-ist and Ja
pan a-t"hnSd prs.-tbal difricuifea in tha
ii.-umm ft tbe la-e-r plan hlch pr
nted their fa!e adneeencw. The ia
of constructing the nine Now iun Rail
war by means of an International Ian ti
CMa la. however. s"ll the e-.hje.-t of
friendly da.-ui-o br the tnterestd partl--Tha
policy of tbe (J.iTrnmnl In theea
mst.ers has been directed b a O-elre to
traiie tha use of Amrrican capital m th
development of t'hlni an Irvtrument la the
promotion of t'htnn t welfare Sfid a ma
terial prserjtv Wlihouf prst-iiltce to her
Wi'imtli rchts as an Independent political
pow r.
, This potiey has reeanttv fotind ftirther ct -m
pi i Teat ion In the '! a nca alen by
tlite iirnmr t t the nff'U'tini between
f M.n and a croup rf krrrt;ri tankers for
a Han ef ?ooYM t enrr1-d chief -
e Lt currency rf-Ttn Ths ct.f.iun whtt-U
raa fr ) m r.nnt ttfiea ft -l In the
fnn'arr umm-' f t-e i"imf hes be n
t'- of th p-to-to 1 obeta-l " commer
Cal taterrovrse with that peopr.
for the s'-'a of t'ns l-vn t-.J te mn
fernO'Sted Tf"r?S wh-h are .f t h- c--tet
("irair to ts commercial htrrt of
the t'n-.l Statea and m ciTi.iird w or Id
at lare. it ta reVt-d that an eert w.ll
b recede re a-d hts ;-vernent bs r-e-l
ed aasstrancs fr..rr t'hina thai Such Sn
4v.er. who she.l be an Amrrtcan. wtil b
ec cased.
Ut T I -A MFK1C IX It T U A (.OOD
MeUaXteei ha Perw-Kewadoe tHute bbowS
Cardial teWing.
Ke'atiore with all !-ann-Ameri.-a are
a(t(crof ) . 1ljir c Tdtalit v being mm
f.ed b the re.-epn-s a-coedcc t r-c-l
f:t.e a;.t the -mcnnal
l.r:J .f Arcenttn. hi and
tico. The Irjtern-1 i--irau Aii..r-
rn Rru'-c ( rttr a tr--l en uejl
w"-r. Tne lu.- ruol n. ct it.e Ci
nuta be i a en I' : u an J Kr il f has proven
te ne of rtfd.al .o-pvrailn.
N'i(.tM'hni rrit'r-B ih re fund In c of
he bopct'd eht "f W!1. durst he b-en
inter way f'r mre ti-an a yer. mi. A it i
ow cna lr tia. i be'-ed. be S-. tnal
a aJ.tt t;me w'il i!-ie rm,ul an
a fT an cement w M h w : .1 he l ! ak. t' ry t
f rigi rr.!!tT trd em'r-ent.y atvan
l r- -e ro H n-tura.
T freei.icr t t fi-n re vim w t rebton
tn Nt-frti4 s"d "hr arrn'sd ee-u-I
t of I AmMfsn ciM.-fis whi had r
t ar' v n'i"l tit I rnh vt thw re -
,ttoi' wh'--h lno'ii tf.m l.rr4t (T
f a'l 1 . r1"'"'1 1 r r- tl mi vi it i t It lv lay a
trnnn aid at '
, The ir.-'.Jfril vi and C- -i;i.!cr-r apirtt
a-vown by i:" arK ue f a-iott ri w c ruttd
f-r the ,mifi.tn bpe t.-At M. trjf. w:ll
.-P the its rirhtfu! place ifr ri ihn law
Mi'ng and rofcrvu counur .f the
r:L
' It ?rlitlw ma eve-!.' y to kcnunr
that t ArenTiR H'Pub ic .rr' m ntKS
S pl'u with ,-n.-ia menufa -turers
a rontract f-r t:ie co 'i ' " - tn of t m ttt'-
nip a 1 w.4in a'l "i'ri! b l ju!n
i.DU Tha ril'-at "f this w.rk and Ite Im
f rtenre la i:-e A 'en :in l'.-?-j;!tr mak
fhe pia-tn of th bid an earnest ct ftendhj'
tlt.ia tvwa.'d the V'nltrd ftAte.
r tui r km iirm irr 15 -r:rit-tL
yarkew Aewataw Gained ta aitee Msla)
pty .tc1 e art a.
s T'nivsrsal arp;ira?ion has b-n given by
it iMon. f" 1-vwed by 1 4 pr-:a;nerns
"tnnrt'ir. the ntre cimmcr'ial world.'
t the min;nmm lartCT (Uum, Tne meae
er.t mu .
Ma. d aI antaars ta ibe rmmff of
tha I nlted bt tes wer rtlned lroyrt.
t vee taxi AT a ti emen . s. ;i a turns
are full rci-nt of the f. t tlat nnder
a-ct' two f th tar I act tti rrsid-nt
la r r d. wbaaevwr be la satisfied that
the treatment accorded by them to the
products of low Inlted Plate is not sum
as to entitle thara to the benefits ot tne
minimum tariff of the United Mates, to
withdraw thoa benefits by proclamation,
rivlne M days notice, after which toe
maximum tariff will apply 10 their dutiable
products entarinic tha fnited Plates, in us
aeneral opinion this section of the tariff law
haa thus far prtred a guaranty of contin
ued commercial pace aithouch trtere are.
howeeer. unfortunately. Instances wrire
foretan ovrnmnta deal arbitrarily with
American Intereets within this Jurisdiction
In a manner Injurloua and inequltaVe.
The poilcy of broader and closer traae
relatione with the iHimimon of Canada,
which was Initiated In th adjustment of
the maximum and minimum provisions ot
th tariff act of August. i'. has proved
mutually beneficial. It Justifies further ef
forta fr the readjustment of the commer
cial relations oe the two countries, so that
their commerce may follow the channels
natural to contieoous countries and be com
menauvate ltrt the ateady expansion oi
trade and industry on both sides of the
boundary line.
The Arajentlne battleship contracts. HKe
th subsequent Important one for rs"tiiie
railway equipment and those for Cuban
iroverr.ment vessels, were secured for our
manufacturer larcely throuch the good l
fice of the Ieariment of titate.
The efforts of that department to secure
for ritiaena of the I nlted States equal op
portunltiea In the markets of the world and
to expand American commerce have reen
most successful. The volume of business
obtained In new fields of competition tnfl
upon new line Is already very sreat. and
r.nre,i la ured to continue to upprt
th rwpartment of tate In Its endeavors
for further trad expansion.
I cannot leav ths subject without em
phaslJlng the necr.sity of such Iraislatlon
aa wHI make possible and convenient tne
establishment of American banks ana
branches of American banks In foreign
countries, especially In latin-America.
MUP SrBMDIES AGAIN RECOMMENDED
Rcaaooa Commercial and Military 8uggeted
t by Pre-ddeot.
Ann her Instrumentality Indispensable to
th unhampered and natural development
of American commerce is merchant marine
All tnarltim and commercial nations, our
romretetors. Jealously foster their merchant
marine. perhaps nowhere Is the need f-r
rap:d and direct mall, passenger and freight
communication quite so urgent aa between
the United states and l-a:in-America. VTe
ran te-ur In to other quarter of the world
uch Immediate bn hta In frl- ndsn-p and
commerc aa would flow from the establish
ment of diret lints of communication with
the countries of Latio-Amerlrt.
l'n!-s prompt actiia be taken the com
pletion of the Panama Canal will nnd this
the only great commercial natton unable to
avail Itself of this great contribution to the
m-ane of tbe world's commercial inter
course. V'Hte aside from tbe commercial aspect,
aniens wo create a met chant marine, wher
ran we find the seafaring population nerrs
sarv as a natural naval reserve and where
rou;d e find, in case of war. th trine
ports and subsidiary vessels without which
a naval Heel is arms without a body? For
many reasons I cannot too strony urxc
upon the Congress the paseace of a meas
ure by mall subsidy or other subvention ade
quate to fum c.:ce the establishment and
rapid development of an American mer
chant marina, th retora:ton o the Ameri
can flag ro its ancient piace upon the seta.
T.te extension of civil service rules to the
ronsula and the gradual acquisition of dip
lomatic residence abroad are advlaed.
IXONOMlfc-H IS VIEW IN ESTIMATES.
rttrtber Beforna f A re hale AdmlnUtrauivs
Mcthode Ad vacated.
Eve.-y effort haa been made by e.v-h de
partment chief to redu.e the estimated cost
of his department for the enautnc hs.-ai
year end.na Jun . IHl'i These etlmate,
present the imil'fit sum which ill main
tain the departments, bureaus and rtUea
o lb Oovernment and meet Its other
obltte:Kn unlrr exist. ng law. and a rut
of these estimates would ieuit In embarrass
Iri the executive branch of th tiovrnmem
In th performance of Its duttea. This re
mark do not apply to the river and har-b-
rs estimate, tu-fl to thos for expends
of malntrnance and the meeting of obliga
tions, urder aut horned contracts, nor doe It
apply to tha public buildings bill nor the
N y bul':ing programme.
Tiie final rstimat'S for the year ending
Jun 112. as they have been sent t
tne Treasury for the ordinary expenses of
the Uorernment. Including those f r puMIn
but (ilngs. rtert and haroora and the Navy
buttling prosr.a-rme. amount to JAC'.O. lMli
Tnis is :.:: !w4.7 lsa than the appropna
ttne frtr the nscJ vnr ending June e.
lwll. It 1" 1o I.'-A lea than th.,- toial
estimate, including supplemental estimate
sjbmfted to Con r rasa bv the Treasury for
the year 1WI. and Is S.. 17 4. .'. less thsn
the original estimates submitted by the
Treasury of ll 2-
-riirs- flr. ires do not Include the appropria
tions for th Panama canal, the policy in
respect to whb h ought to be. ar.d is. to
pnd aa much each year as can be eco
nomia'iy and eff.ilvly expended In order
to complete th rsuaJ aa promptly as pos
s hie. The ncn aut for the Panama anl
for the ensuing year are nmrt than f."g.oo.
ims. s n in-rrn of a.o.oou o r the
amount appropriated for this year a dif-f-renc
due to lh fact that the estimate
f.r 1012 Include som-thlng over $1U.tUU,uuO
for th fortification of th canal.
Against th eetimtd expenditure of
f 4.I3 the Tr-aet;ry bne stimated re
ceipts tor next year &V.uX.0. making a
prottabie surplus of oraiaary receipts over
ordinary expenditures of about $ V.no,ooo.
or taking into account the ctimat-s for the
Panama Canal, w hit h ar g.'H.l0.M7. and
w run u'tlmately w ill b paid in bonds, it
will lesve a deficit for the next yr of
aoout 7. "-"". if Coigre shall conclude
to fortify th canal. Should thcr b no ap
propriations this year for fortifuationt. then
tner would bs. en including th Panama
Canal appropriation, a aurp.ua of about IA-t-w.v0.
M .
The Treasury Department is one of the
oris mal department a of the tiovernment.
With the chn in the monetary system
niaie from t.m to time, and with the
creation of National banks. It was thought
ne sry to oraantie nw bureaus and di
visions, which wer ad-i"d In a aom-what
hpitMtrd way and resulted In a duplica
tion of dunce which might well now be
mlcil.
Tnia lack of system and economic CO-Ofdl-nat.on
ba attracted th iuu ..t Ion of the
head of iht rt par meat who has been giv
ing hs ttm fc th last two years, with
th aid of experts and by ronsulting hla bu
pij entefs. to its reformation. He has
roiihd " pl.. e m the civil bervice
wi:tnut at all Injuring Ite efficiency.
The Pres'deni comments on se-eral
changes that are be Ins made. or. he says,
ought to be made by legislative aid. The
nu-age continues:
The auditing system In vogue Is aa old aa
the tlovernment and the method used ar
antiquated. A careful plan la being devised
and will be presented to Congress with the
r. oiumendauoo that the force of auditors
and employes umW them b greatly re
duced, thereby effecting substantial econ
omic. Hut this economy will be small com
pared with the larg-r economy that can b
e r f r t ed by conaolidatlon and c hange of
lUttthotia.
Agato. In the collection of revenue, s
peeiaiiy ih customs revenues, a very grat
l-npro em-nt ha been effected and f ur
ther tmprovem-nts are contemplated. The
d'ptrtmrnt has perfected the method of eol-lec-.mc
duiM at the port of New York SO
as to save the Government un wards of gio.
oMk,oo or 1 l.ooo.o; and the same spirit
..f chsng- and r f orm hsa been Infused
into tne other customs office.
The methods used at many places are
arviiuic. There would eem to be no reason
al all why the Hur)or of the Port, who
acts fr the Crtll'-tor. should not b a Sub
ordinate ..f th Cot lector at a less elry
and directly under Me control, aad thr u
but little raon for th existence of a
naval officer, who le a kind of local audl
t.r Tne naal officers In the various
ports are presidential appointee, many of
the in drawing good salaries, and thoa of -ft.
should be aeotisbed or with reduced
f or, e mad part of the central auditing
sys-em.
There are entirely toe many customs dis
tricts and too many customs collectors.
Th- d. strict Should be consolidated and
the collK tora la barge of th-m. who draw
good salaries, should b abolished or treat
ed as mere branch office.
It is not entiaJ to the preventing of
sm jggitng that customs districts should be
Lncrejd m number. Th violation of th
customs laws can be quite as easily pre
vented and much more conoroically. by the
reven-j cutter service and by tbe use of
th epecta' agent traveling force of tbe
Tr-aeury Ipartment.
The offu of th Comptroller of th Cur
rency i n of th moat important in the
preservation of proper banking methods In
the National banking system of th Inlted
i ;t., and the present Comptroller haa lm
pr nrj his subordinate with th nceaity
of s conducting their Investigations as
to establish the primiplo that every Dana
fallur 1 swascry. beaue proper in-
sa Botlc or tnreaiening coaap
GREAT STRESS ON GOVERNMENT ECONOMY
SUMMARY OF REVIEW AND RECOMMENDATIONS IN PRESI
DENT TAFT'S MESSAGE.
Foreign relation, are peaceful; flaherle. arbitration satisfactory, to all concerned: move for International
Pr,CorT.mySwUnkltfn"in7e"ca accentuated by successful mediation between Peru and Ecuador; N.ca
ragua la belns restored to order; Argentina buying naval equipment in United btates.
Chinese loan la victory for American' diplomacy.
Whole commercial world enjoys benefit ot minimum tariff clause. ,,, -stahllshment
- 'Mall subsidv or other subvention" again recommended, to be "adequate to guarantee establishment
, and rapid development of American merchant marine." '.. Proliant savs
I Government administrative method, called archaic and drastic economies recommended. President eaya
there are too many customs collectors.
National bank failures under proper Inspection declared unnecessary. .hM .,mvl.9 nolicr
Better syatem of planning public buildings necessary; expert coramlss ion shou d ""'.oresented
Tariff act a big Income producer: corporation tax works well; Payne - Aldrich bill Is misrepresented.
tariff commission's work promises good results.
Currency problem should be studied scientifically as preliminary to legislation. iarbor
More Army officer, needed to teach militia organizations; more engineers required for rler and i.aroor
fortification work. , ..
Philippine trade growing: Porto Rico progressing industrially and politicals. ,,nl8h sunDlles
Panama Canal making satisfactory progress; should he fortified: Government should furnish supplies
and facilities to trade; Interstate railway- should be prohibited from wn,ng ships 'burdened- one
Recommendation for simplification of litigation is renewed: court or appeals . now "burdened one
review by higher curt all to which litigant is enimea as ngm. ri-n"
tant as measure to check demand for unwise and more radical legislation. ntmasters ad-
Postal deficit disappearing: extension of civil service to first, second and third-class P"",1",
vised: parcels post, limitation of franking privilege and higher postage rates for adertislng sections oi
m8vV'vrr".,Hmet!.,.er'edUced: two
should receive recognition for dtecovery of North Pole. o. ... j , onal de-
Umltatlnn of right of President to create forest reserves in Western States "houM be "moved coal de
posits should be leased on royalty basis: surface and mineral rights to phosphate lands Jhould be 'P"
ed; coal and oil prospector, should be regulated and licensed; power site, should be leased by overnntj
Hnp,e rule for Alaska again opposed; Government not ready to extend Its credit to construction of
Alaska railways. . . ,
Preservation of forests from fire require, building of means .of communication.
Prosecution of census frauds directed. individuals
Ownership of timber land is being concentrated; more than half of area now owned by 200 individuals
and corporation; 14 per cent owned by three corporations. . ,.,.,,,
Bight-hour law should be extended to Government contracts, with provision for suspension by Executive
0rrtGrealernadm.nnCi.'tratlve efficiency in Government work must be sought: civil service should be extended:
civil service pensions again recommended. .,d..inf hiii of
Physical valuation of railway- aain advised; measure for recovery by "nippers on i nl "
lading outlined; better boiler Inspection urg-ed on railways; commission should Investigate injuries for out
8MT;oCre for present on enforcing existing laws economy of ad-inUtra-
tlon. expansion of foreign trade, conservation and. improvement of agricultural lands; building up of home
industries and strengthening- the confidence of capital.
tlons to the responsible directors and offi
cers can prevent It.
ITBLIO BlILDING METHODS WRONG
remmlaaloa ef Kvperts Should Supervise
General I'ian of Work.
In public BullcMnga ve still suffer from
th method of appropriation which has been
so u.uch criticised In connection with our
r'ers and lisrbors. Some method should
be devised for controlling- the supply of
public buildings so that thsy will harmonise
with the actual needs of the Government.
Not only are bulldlnits appropriated for by
Jon cress which are not needed and build
in rs left unappropriated for by Con grees
which are needed, but when It conies to the
aMua construction there has been In ths
past too l.ttle study of the building plans
end sites with a view to the actual needs
of the Government. Postofflce buildings
which are In effect warehouses for the eco
nomical handling of transportation of thou
sands of tons of malls have been made
monumental strurt tires, and often located
far from the convenient and economical
spot. It Is Imped that more time will clve
opportunity nf a mora thorourh reoriranlxa
t:on. The last public building bill carrh-d
authorisation for the ultimata expenditure
f JJ.oi l.so. and I approved It because of
the many :od features It contained. Just
as I approved the ri er and harbor bill:
hut it was drawn upoa a principle that
ouht to be anandoned.
It seems to me that the wiser rnethM of
preparing a public hut Mine, bill would be
the pr-paration of a report by a commis
sion of Government experts, whosa duty It
should b to report to Conrus the Gov
ernment's needs in the way of the con
struction of public buildings In every part
of the country. Just as Army engineers make
report with reference to the utility f pro
posed improvements In rivers and harbors,
with the added function which I have
reckoned for the Army engineers. Including
In their recommendation the relative Lin
porta nee cf the various projects found to be
worthy of approval and execution.
TAKIFF ACT BIG INCOME PBODCCER
Corpecatloa'Tav Works Well; Payne Bill
Misrepresented.
Tbe President aa; a that "as an Income
protlurins; measure the Mist tne tartn hill
rever haa been exceeded by any customs
bill in the history of the country." He con
tinues: Tha corporation excise tsx. proportioned
to the nt Income of ev-ry business corpora
tion In the country, hen worked well. The
tax baa been easily collected. Its prompt
payment indicates that the Incidence of the
tax baa noi been heavy. It offers, more
over, an opportunity for knowledge by tbe
Government of the general condition and
business of all corporations and that means
bv far the moet Important part of the busi
ness cf the country. In the original act pro
vision was mane for ths publication of re
turns. The provision was subsequently
amended by Congress and the matter left
to the regulation of the President. I have
directed the Irsue of the nee.lcd retaliations
and have made It poeslhla for th- public
generally to know from as examination of
the record, the returns of all corporations,
tne stock of which Is listed on any public
stock exchange or is offered for sale to tha
general public. The returns of t hose cor
porations whose stock Is not so offered for
sale are directed to be open to the Inspec
tion and examination of creditors and stock
holders of Ue corporation whose record is
sought.
Tha schedule of the rates of duty In tbe
Payne tariff act has been subjected to a
great deal of criticism, some of It Just, more
of It unfound-d. and to much misrepresen
tation. The act was adopted In pursuance
of a declaration by the party which Is re
sponsible for It that a customs bill should
be a tariff for the protection of home In
dus t rise, the measure of the protection to
be the difference between the cost of pro
ducing the Imported articles abroad and the
cost of producing It at home, together with
such addition to that difference aa might
five a reasonable profit to the boms pro
ducers. The basis for tha criticism of this
tariff is that In respect to a number of
ths schedule the declared measure was not
followed, but a higher dlfterence retained
or Inserted by way of undue discrimination
In favor of certain Industries and manufac
turers. Little, If any, of the criticism of the tar
iff haa been directed against the protective
principle, but the main body of the criti
cism has been based on ths charge that ths
attempt to conform to the measure of pro
tection was not honestly and sincerely ad
hered to.
The President reviews the creation of the
Tariff t'omralsslon, created In the hope "that
the question of the rate of a duty Im
posed shall become more of a business ques
tion and less of a political question, to be
ascertained by ex porta of long training and
accurate knowtcdae." He tndlcatea that the
Board wKI not be able to report at this
session. but be hopes to be able to pre
sent results at the opening of the new Con
gress. He renews his advocacy of the plan,
f which he says:
It facilitates the removal of noteworthy
defects In an important law without disturb
ance of bosinens prosperity, which Is even
more important to the happiness and the
comfort of tbe peopl than the elimination
of Instances of Injustice in the tariff.
Whether or nt the protective polity la
to be continued and the degree of protection
to be accorded to our home Industries, are
questions which the people must decide
t:irouh their chosen representatives; but
whatever policy Is adopted. It Is clear that
the necesarv legislation should be based
on an impartial thorough and continuous
study of the facta
CURRENCY rROBIaKM IS IMPORTANT
Quest toe.
Ooe for Scientific
Ot her Issue.
Study. Like
The method of Impartial scientific stady
by eaperts as a preliminary to Wgts;aun
which I hope to see ultimately adopted as
our xed National policy with respect to the
tariff rivers and bar ho re. waterway and
public buildings. Is also being pursued by
the nonpartlaan monetary commission of
Congress. An exhaustive and moet valuable
study of the banking and currency systems
of foreign countries hss been completed.
A comparison of the business methods and
Institutions of ur powerful and successful
commercial rivals with our own la sure to
be of Immense value. I urge uron Con
gress the importance of a nor partisan and
disinterested study and consideration of our
banking and currency system. It la Idle to
new battleships aked; consolidation of
dream of commercial expansion, and of tha
development of our National trade on a scale
that measures np to our matchless opportu
nities, unless we can lay a solid foundation
In a sound and enduring; banking and cur
rency system. The problem Is not partisan,
la not sectional it Is National.
ADDITIONAL ARMY OF1-1CJGKS lCfcDED.
Drillinff of MUllia Essential Feature of Vr
iTeparedneas.
The message favors the passage of the
bill amending the Volunteer act, and pro
vision for a commission to determine a com
prehensive policy for the organization of the
Kegular Army, the organised militia and the
volunteer forces. More competent officers of
the rank of Captain are needed to teach the
new Army, t'.iat it may be prepared in time
of emergency. Another bill, the adoption of
which Is urged. Is the one providing for 0
more Army Eniclneers. "The shortness of
i supply of such officers." the message says.
"delays important river ana naruur
and important fortification work. I earnestly
recommend the passage of this bill which
passed the House at the last session and la
now pending In the Senate."
Of fortifications, tbe message says:
I have directed that the estimates for ap
propriation for the Improvement of coast
defenses in the United States should be re-duc-d
to a minimum, while those for the
completion of the needed fortifications at
Corregfdor. In the Philippine Islands, and
at Pt-arl Harbor. In the Hawaiian Islands,
should be expedited as much as posnible.
The proposition tn make Olongapo and Subig
Bay the naval base of the Pacific was given
up. and It la to be treated merely as a sup
ply station, while the fortifications In the
Philippines are. to be largely confined to
t'orregldor Island and the adjacent Islands
which command entrance to Mnnlla Hay.
and which are belna; rendered impregnable
from land and sea attack.
The Pacifw naval base haa been trans
ferred to pearl Harbor, in the Hawaiian Isl
ands. This necessitates the heavy fortifica
tion of the harbor and the establishment of
an important military station near Hono
lulu. I urge that all the estimates made by
the Vi'sr Department for these purposes be
approved by Congressional appropriation.
TKDE FX rHIIXIPIXES IS GROWING
Porto Rlos Pro reefing t Reforms of Govern
ment Are Discussed.
The Philippines, are tranquil, the mes
sage says, ftapfd trade Increase is shown
by the following table of export and
Imports, exclusive of gold and silver:
EXPORTS.
United Other
Fiscal vear. Ftate. countries. Total
HoH .. $10.34.3 $22 46o.34 $32.SI8."67
liwift 10'Jl5.::il n.77S.2:;2 3o.9!S.5V$
1UIO Jft.741.771 2l.122.ca3 3i.8tM.169
Note Latest monthly returns show ex
ports for the year ending Augurt. IftlO. to
the Ui.it ed States $00.on.'.0o2 or 49 per cent
of the $41.0T.7.m total, asalnst $11,031,275
to the United Ptatea or 4.1 per cent of tho
$S2.12S.871 total for the year ending August,
IMPORTS.
United Other
Fiscal year. ?'ics. countries. Total
ion $5.79.4S7 f25.S3.S70 ISn.P18.RS7
H0 4.891.770 23.1oO,J7 27.79J.;i97
1M0 10.770,301 2ft.39J,2 37.087.ti30
Xot Latest monthly returns show Im
ports foy tbe year ending August, Iff 10. from
the United States $11.61.1.932. or 30 per cent
of the $:9.ti2.'.8(l7 total, against $0,193,419
from the United States, or 13 per cent of ths
948.011 total for the year ending August.
liMlf.
The year hss been one of prosperity and
progress in Porto Rico. Certain polIti"al
changes are embodied In the bill "to provide
a civil government for Porto Rico and for
other purposes." which passed the House of
Representatives on June IS. 1910. at the last
session of Congress and Is now awaiting the
action of the Senate. The Importance of
those features if this bill relating to public
health and sanitation cannot be over esti
mated. The removal from pilltlcs nf tha Judiciary
by providing for the appointment of the Mu
nicipal Judges Is excellent.
I believe that the provision of the bill for
a partially e'eetivo Henate. the number of
elective members being progressively In
creased. Is unwise, and that the composition
of the Senste as provided in the bill as intro
duced In tha House far better meets condt
tlons existing In Porto Rico.
CAAI FBOGRJ3eS IS SATISFACTORY.
Slides ta CtrJebra, but Not Serious Early
Completion Assured.
Completion of the Panama Canal within
the time set, January 3. l'M.1. and within
the estimated coat. $.'175,000,000. la assured.
The slides reported In tbe Culebra cut are
due to disintegration of Igneous rock In ex
posure to the air and will require additional
allowance of 10,O00,HH yards ot material
to be removed. Thla offers no serious ob
stacle, but would have been so grave in the
case of a sca-Ieve cans aa to have "taxed
the patience of the American people." The
President reiterate hla opinion that tha
oatial should be fortified.
On the subject oi tolls to be charged, be
quotes the opinion cf an expert that "a
dollar a net ton would not drive business
away from the canal, but that a higher
rate would do so." lie adds:
In determining what the tolls should be
we certainly ought not to Insist that for
good many -years to come they should
mount to enough to pay the Interest on
the investment of $4KMM0.uog which the
United States has made in the construction
of ;he canal. We ought not do this at
first, because the benefits to be derived by
the United States for this expenditure upon
the in vest menu If It were, then the con
struction might well have been left to pri
vate enterprise. It was because an adequate
retjrn upon; the money Invested could not
be expected Immediately, or in the near
future, and because there were peculiar po
litical advantages to be derived from tha
construction of the canal, that It neces
sarily fell to the Government to advance
. b r A nrorm th wnrk.
In addition to tbe benefit to our naval H
stnngth. the canal greatly Increases the
trade facilities of the I nlted States. It
will undoubtedly cheapen the rates of trans
portation in all freignt between the eastern
and western seaboard and It will greatly
Increase that trade by reason of tha reduc
tion In Its eosu Then. If we are to have
a world canal, and If we are anxious that
the routes ot the world's trade shall be
through ths Panama Canal, we must rec
- -
nevy-yards recommended;
Peary
ognize that we have an active competitor
In the Suex Canal. Then. too. there are
other means of crossing the Isthmus by
the Tehuantepec Railroad and by other rail
roads and freight routes in Central America
to the Atlantic side.
In all these cases the question whether
the Panama Canal Is to be used and Its
tonnage Increased would be determined later
by the charge for its use- My own impres
sion is that the tolls ought not to exceed
M per net ton. On January 1, 1911, the
tolls in the Suea Canal are to be 7 francs
and 25 centimes for one net ton by Suez
Canal measurement, which is a modifica
tion of Danube measurement. A dollar a
ton will secure, under the figures above, a
grass Income from the Panama Canal of
nearly $7.f00.000. The cost of maintenance
ar.d operation is estimated to exceed
Oito.Oou. Ultimately, of course, with the
normal Increase In fade, the Income will
approximate the interest charges upon the
Investment.
On the whole, I should recommend that
within certain limits the President be au
thorized to fix the tolls of the canal and
adjust them to what seems to be com
mercial necessity.
The maintenance of the completed canal
Is discussed at length. Mr. Taft would
add to the equipment facilities for furnish
ing drydock. fuel, repairs and supply tacil
Ities to the trade of the world. This should
be undertaken by the Government rather
than by private enterprise. Mr. Taft be
lieves. He adds:
I cannot close this reference to the canal
without suggesting as a wise addition to
the Interstate commerce law a provision
prohibiting interstate commerce railroads
from owning or controlling ships engaged
in trade through the Panama Canal. I be
lieve such a prov talon Is needed to save
the people of the I'nited states the benefits
of the competition In trade between the
eastern and western seaboards which this
canal will be constructed to secure.
PT3TPIXR JUDICIAL SYSTEM DEEDED
Litigation Subject to Too Many Dela-c
High Courts Do Too Much.
The duties of the Department of Justice
have been greatly Increased by legislation
enacted "in the interest of tha general wel
fare of the people and extending its activi
ties Into avenues plainly within the consti
tutional Jurisdiction, but which It has not
been thought wise or necessary for the Gen
eral Government heretofore to occupy." The
organization has been so Improved that a
vast amount of business has been disposed
of. Particular attention is called to prose
cutions of "bucket shops." frauds which
have misused the mailing privilege and vio
lations of the an ti-trust law.
Recommendation of a Federal incorpora
tion act Is renewed. Congress Is urged to
pay promptly Just claims against the Gov
ernment, delays in the payment of which
Injures the reputation of the Government as
an honest debtor. Simpler Judicial proced
ure is advised. The message Fays:
One great crying need in the United States
Is cheapening the cost of litigation by sim
plifying Judicial procedure and expediting
final Judgment. Under present conditions,
the poor man Is at a woeful disadvantage
In a legal contest with a corporation or
rich opponent. The necessity for the reform
exists both in the United States Courts and
in all state courts. In order to bring it
about, however. It naturally falls to the
General Government by its example to fur
nish a model to all states. A legislative
commission appointed by joint resolution of
Congress to revise the procedure in the
United States courts has as yet made no
report.
Under the law the Supreme Court of the
United States has the power and Is given
the duty to frame the equity rules of pro
cedure which are to obtain In the Federal
Courts of first Instance. In view of the heavy
burden on pressing litigation which that
court has had to carry, with one or two of
Its membera incapacitated through ill health.
It has not been able to take up problems of
Improving tho equity procedure, which has
practically remained the same since the or
ganization of the court In 17S9. It Is rea
sonable to expect that with all the vacancies
upon the court filled. It will take up the
question of cheapening and simplifying the
procedure In equity rules In the courts of
tho United States. The equity business is
much more Important in the Federal Courts,
and I may add, much the more expensive.
1 am strongly convinced that the best meth
od of improving judicial procedure at law is
to empower the Supreme Court to do it
through the medium of the rules of the
court, as In equity. This is the way In
which it has been done In England and
thoroughly dona. The simplicity and expe
dition of procedure In the English court to
day make a model for tha reform of other
systems.
No man ounht to have as a matter of right
a review of his case by the Supreme Court.
He should be satisfied by one hearing be
fore a court of first instance and one re
view by a court of appeals. The proper and
chief usefulness of the Supreme Court, and
especially of the Supreme Court of the
United States la. In the cases which come
before It. so to expound the law and es
pecially the fundamental law the Constitu
tion as to furnish precedents for the infe
rior courts In future litigation and for the
executive officers In the construction of
statutes and the performance of their legal
duties. Therefore, any provisions for re
view bf cases by the Supreme Court that cast
upon that courathe duty of passing on ques
tions of evldenVe and the construction of
particular forms of instruments, like Indict
ments, or wills, or contracts, decisions not
of general application or importance, merely
burden the court and render more difficult
Its higher function. The Supreme Court is
now carrying an unnecessary burden of ap
peals of this kind, and I earnestly urge that
It be removed.
I wish to renew my urgent recommenda
tion made in my last annual message In
favor of tha. passage of a law which shall
regulate the issuing of Injunctions In equity
without notice in accordance with the best
practice now in vogue tn the courts of the
United States. I regard this of especial Im
portance, first because It has been promised,
and second, because It wil deprive those
wbo now complain of certain alleged abuses
In the Improper issuing of injunctions with
out notice of any real ground for further
amendment and will take away all sem
blance of support for the extremely radical
legislation they propose, which will be moet
pernicious if adopted, will sap the founda
tions of Judicial power, and legalize that
cruel social instrument, the secondary boy-
"furthet recommend to Congress tbe pass
age of tbe bill now pending for the Increase
In salaries of the Federal Judges. The cost
of living is such, especially in the large
cities, that even the salaries fixed In the pro
Dosed bill a- in enable the incu"Kt ao ac
cumulate little, if anything, to support their
families after their death.
POSTAL DEFICIT IS DISAPFfcAitlXG.
Parcels Post Should Be Extended to Every
Rural Delivery Route.
The postal savings bank system will be
extended gradually. The application of
business principles has resulted in the
return of $11,500,000 of the $17,500,000 ap
propriated to cover the estimated de
ficit. The Postmaster-General's esti
mates for the present year are so low as
to be within the expected revenue.
First, second and third-class postmas
ters should be placed In the classified
service. The message adds:
It Is more logical to do this than to class
ify the fourth-class postmasters, for ' the
reason that the fourth-class postoffices are
usually small and the postmasters are neces
sarily men who must combine other busi
ness with tho postmastership, whereas, .the
first, second and third-class postmasters are
paid a sufficient amount to justify the re
quirement that they shall have no other
business and that they shall devote their
attention to their postoffice duties. To
ciasfify first, second and third-class post
masters would require the passage of an
act changing the method of their appoint
ment so as to take away the necessity for
the advice and consent of the Senate.
I am aware that this is inviting from the
Senate a concession In respect to Its quasi
executive powers that is considerable, but I
believe It to be In the Interest of Rood ad
ministration and efficiency of service. To
make this change would take the post
masters out of politics; would relieve Con
gressmen who are now burdened with the
necessity of making recommendations for
the places of a responsibility that must be
Irksome and can create nothing but trouble;
and It would result in securing greater at
tention to business, greater fidelity and con
sequentlv greater economy and efficiency
in the postoffices which they conduct.
The unrestricted manner In which the
franking privilege is now being used by
the several Federal services and by Con
gress has laid it open to serious abuses.
While It has been impossible without a bet
ter control of franking to determine the ac
tual expense to the Government of this
practice there can be no doubt that it an
nually reaches into the millions. As the
first step In the direction of reforms, special
stamps and stamped envelopes have been
provided for use instead of franks in the
free transmission of the official mail re
sulting from the business of the new postal
savings svstem. By properly recording the
issuance of such stamps and envelopes, ac
curate record can be kept of the cost to
the Government of handling the postal sav
ings mall, which Is certain to become an
important item of expense and one that
should be separately determined.
" m my last message I invited the atten
tion of Congress to the inadequacy of the
postal rate Imposed upon second-class man
matter Insofar as that includes magazines,
and showed by figures prepared by experts
of the Postoffice Department that the Gov
ernment would be rendering a service to
the magazines, costing many millions in ex
cess of the compensation paid. An answer
was attempted to this by the representatives
of the magazines, and a reply was filed to
this answer by the postoffice Department.
The utter Inadequacy of the answer, con
sidered in the light of the reply of the Post
office Department. I think, must appeal to
anv fair-minded person. Whether the i an
swer was all that could be said in behalf
of the magazines is another question. I
agree that the question is one of fact; but
I insist that if the fact is as the experts
of the postoffice Department show, that we
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 the
UShing a parens WZ ba
cost of first-class postage to l cent. It has
been said by the Postmaster-General that a
fair adjustment might be made under which
the advertising part of the magazine should
be charged for at a different and higher
rate than that from the reading
This would relieve many useful mWnJ
that are not circulated at a profit, and
would not shut them out from the use of
the mails by a prohibitory rate.
With respect to the parcels post, I re
spectfully recommend Its adoption on all
?Sral delivery routes, and that 11 P
the international limit be made the limit of
carr age in such post, and this with a view
" its general extension when the Income
or the postoffice will permit It and the pos
tal savings bank .hall have been fl d
l.shed. The same argument mad agalni t
the oarcels post that was made against the
MM wvlnSa bank that it Is Introducing
tha Government Into a business ,th at ought
to be conducted by private persons, and
paternalism. The Postoffice Department has
a great plant and a great organization, and
wi?h ?ni? machinery. It is able to do a great
,v.i cfonomtcallv that ir a new
rnlMtloS er, nw.w U would be tm
p5.Tbl. to ao without extrav-aEant xpendi
fure That is the reason why the postal
.vtn.s bank can e carried on at a small
.dditfon of cost and why It is possible to
corporate at a rery Inconsiderable expense
L naTcVl. post in tha rural delivery system,
i PB,n.l parcel. po.t will involve a much
greater outlay .
ESTIMATES FOB AY ABE REDUCED
Conlldatlon of Nav7 Favored Peary
Is Commended.
The President concurs in the recom
mendation of the Secretary of theavy
concerning the personnel bill, by wnictt
officers of flag rank were awgned to
duty as aides to The Secretary n respect
to naval operations, personnel, inspec
tion and material. Mr. Taft says:
The Secretary, In view of the conclusions
of a rTcent court of inquiry on certain
phases at marine corps administration u rec
ommend, that the Major-General Command
ant of the marine corps be appointed for
1 four-year term, and that officers of the
Adjuunt and Inspectors Department be
dYtailed from the line. He also asks for
.latlox i to improve th e conflllton. now
existing In the personnel of officers of the
Navy, particularly with regard to the age
and experience of flag officers and Cap
tains and points out that it is essential to
the highest efficiency that the age of our
officers be reduced and that the flag offi
cer.: particularly, should gain proper ac
ceptance as flag officer., in order to enable
them to properly command fleets. I concur
In the Secretary's recommendations.
The estimates of the Navy Department
are 5,000.0ao less than the appropriations
for tne same purpose last year, and iyed
m thia Is the building programme for the
Same amount as that submitted for your
approval last year. It Includes the carrying
out of the building of two battleships a
year, a few needed auxiliary vessels. I ear
nestly hope that thla programme will be
adTheC Secretary of tha Navy has given per
sonal attention to every navy-yard and has
studied the uses of the navy-yard with
reference to the necessities of our fleet.
With a fleet considerably leas than half
the size of that of the British navy, we
have shipyards more than double the num
ber, and there are several of these ship
yards, expensively equipped with modern
machinery, which after investigation the
Beretary of the Navy believea to be entirely
useless for naval purposes. He asks author
ity to abandon certain of them and to move
their machinery to other places where it
can be made of use.
The Secretary points out that the most
important naval base in the West Indies Is
Guantanamo. in the southeastern part of
Cuba Its geographical situation Is ad
mirably adapted to protect the commercial
paths to the Panama Canal, and he shows
that by the expenditure of less than half a
million dollars, with the machinery which
he .hall take from other navy-yards, he can
create a naval station at Guantanamo of
sufficient size and equipment to serve the
purpose of an emergency naval base. I ear
nestly Join in the recommendation.
I unite with the Secretary tn the recom
mendation that an appropriation be made to
construct a suitable crypt at Annapolie for
the custody of tha remains of John Paul
Jones.
The complete success of our country In
Arctic exploration should not remain un
noticed. The unparalleled achievement of
Peary In reaching the North Pole, April
C, 1009, approved by critical examination by
the most expert scientists, haa added to the
disttngtlon of our Navy, to which he be
longs, and reflects credit upon his country.
His unique success haa received generous
acknowledgment from scientific bodies and
institutions of learning tn Europe and Amer
ica. I recommend fitting recognition by
Congress of the great achievement of Robert
Edwin Peary.
VIEWS OX CONSERVATION EXPRESSED
Removal of Limit on Forest Reservations
Asked of Congress.
Enactment of a law providing for ap
peals from tho Interior Department to
tha fmrt of Appeals of the District of
Columbia in land cases is recommended,
with the observation: "Tnte change
finds complete analogy In the present
provision for appeals from the decision
of the Commissioner of Patents. The
judgments of the court in such cases
would be of decisive value and would, I
think, obviate a good deal of the subse
quent litigation that now arises in our
Western courts." The massage goes on:
One of the dirficulties in the Interior De
partment and in the I -nnd Office, has been
tiie delays attendant upon the considera
tion by the Land Office and by the Secre
tary of the Interior of claims for patents
of public lands to individuals. 1 am glad
to say that under the recent appropriations
of the Congress and the earnest efforts of
the Secretary and his subordinates, these ar
rears have been disposed of and the vrork
of the department has been brought more
nearly up-to-date in respect to the pending
business than ever before in its history.
The subject of the conservation of ths
public domain lias commanded the atten
tion of the people within the last two or
three years.
There is no need for radical reform in the
methods of disposing ot what are really
agricultural lands. The present laws have
worked well. The enlarged homestead law
has encouraged the successful farming of
lands in the semi-arid regi-jns.
The total sum already accumulated In tha
fund provided by the act for the reclama
tion of arid lands is about $Hl.44it.05S.76,
and of this all but 96.241,058.70 has been
allotted to the. various projects, of which
there are 30. Congress at its Inst session
provided for the issuing of certificates of
indebtedness, not exceeding 20j"HO.000. for
use in addition to the reclamation fund
when proceeds from lands sold and water
rents should not be sufficient.
In "the meantime. I appointed a Board of
Army Engineers to examine the projects
and to ascertain which are feasible and
worthy of completion. The Board has made
a report upon the subject, which I shall
transmit' In a separate message within a
few days.
For the reasons stated In my conserva
tion address (delivered at St. Paul last
September and made an appendix to this
men? age) I recommend: ,
First, that the limitation now imposed
upon the Executive which forbids hie re
serving more forest lands In Oregon, Wash
ington. Idaho, Montana and Colorado be re
pealed. Second, that coal depesits of the Gov
ernment be leased after advertisement in
viting competitive bids, for terms not ex
ceeding 50 years; a minimum rental and
t royalties upon these coal mines to be re
adjusted every ten or 12 years, and with
conditions as to maintenance will secure
proper mining end as to assignment which
will prevent combinations to monopolize
control of the coal in any one district or
market.
I do not think that coal measures under
2500 acres of surface would be too large
an amount to ltase to any one lessee.
Third, that the law should provide the
same separation In respect to Government
phosphate lands of surface and mineral
rights that now obtains in coal landa and
that power to lease such lands upon the
terms and limitations similar to those above
recommended for coal leases, with an added
condition enabling the Government to reg
ulate and if need be, to prohibit, the ex
port to foreign countries of the product.
Fourth, that the law ahould allow a
prospector for oil or gas to have the right
to prospect for two , years over a certain
tract of Government land the right to be
evidenced by a license for which he shall
pay a small sum; and that upon discovery
a lease may be granted upon terms secur
ing a minimum rental and proper royalties
to the Government, and also the conduct
of the oil and gas well in accord with the
best method for husbanding the supply of
oil In the district. The period of the leasea
should not be as long as those of coal, but
they should contain similar provisions to
prevent monopoly.
Fifth, that power sites be directly leased
by the Federal Government, after advertise
ments and bidding, for not exceeding 60
years upon a proper rental and with a
condition fixing rates charged to the pub
lic for units of electric power, both rental
and rates to be readjusted equitably every
10 years by arbitration or otherwise, with
suitable provisions against assignment to
prevent monopolistic combinations. Or that
the law shall provide that upon application
made by the authorities of the state where
the water power site Is situated. It may be
patented to the atate on condition that tho
state shall , dispose of It under terms like
those just described, and shall enforce
thtise terms, or upon failure to comply wlta
the condition the water power site and all
the plant and improvement on the site
shall be forfeited and revert to the United
States, the President being given the power
to declare the forfeiture and to dltect legal
proceedings for its enforcement. Either of
these methods would. I think, accomplish
the proper public purpose In respect to
water power sites, but one or the other
should be promptly adopted.
I earnestly urge upon Congress that, at
thl3 session general conservation legislation
of the character Indicated be made. At
its last session, the Congress took most use
ful and proper steps In ' the cause of con
servation by allowing the Executive, through
withdrawals, to suspend th action of tha
existing law in respect to much of the pub
lic domain. I have not thought that the
danger of disposing of coal lands in the
United States under the present laws In
large quantities was so great as to call for
their withdrawal, because under the pres
ent provisions, it is reasonably certain that
the Government will receive the real value
of the land. But in respect to oil lands,
or phosphate land, and of gas lands In the
United States, and in respect to coal landa
in Alaska. I have exercised the full power
of withdrawal with the hope that the action
of Congress would follow promptly and
prevent that tying up of the resources of
the country in the Western and lees settled
portions and In Alaska, which means stag
nation and retrogression.
The question of conservation Is not a
partisan one. and I sincerely hope that
even in the short time of the present ses
sion, consideration may be given to those
questions which have now been much dis
cussed, and that action may be taken upoa
them.
AXA-SKA HOME RULE AO ATX OPPOSED.
Government Jiot Ready to Extend Credit to
Construction of Railroads.
With reference to the government of
Alaska I have nothing to add to the recom
mendations I made in my last message
on the subject. I am convinced that the
migratory character of the population, its
unequal distribution and its smallness cf
number which the new census shows to be
about 50,000. in relation to the enormous
expanse of territory, make It altogether im
practicable to give to those people who are
in Alaska today and 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.
It is far better for the development of the
territory that It be committed to a com
mission, to be appointed by the Executive,
with limimted legislative powers sufficiently
broad to meet the local needs, than to con
tinue the present insufficient government
with a few remedial powers, or to make a
popular government where there is not
proper foundation on which to rest It.
The suggestion that the appointment of
a commission will lead to the control of
the government by corporate or selfish and
exploiting interests has not the slightest
foundation in fact. Such a government
worked well In the Philippines and ould
work well In Alaska, and those who are
really Interested In the proper development
of that territory for the benefit of the
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.
I have been asked to recommend that the
credit of the Government be extended to
aid the construction of railroads in Alaska.
I am nt ready now to do so. A great
many millions of dollars have been already
expended in the construction of at least
two railroads, and If laws be passed pro
viding for the proper development of the
resources of Alaska, especially for the open-in-
uo of the coal lands. I believe that the
capital already invested will induce the
investment of more capital, sulficient to
complete the railroads building, and to fur
nish cheap coal not only to Alaska, but to
the whole Pacific Coast. The passape of a
law permitting the leasing of Government
coal lands in Alaska after public competi
tion and the appointment for the govern
ment of the territory cf a commission with
enabling powers to meet the local needs
will lead to an improvement In Alaska ana
the development of her resources that is
likely to surprise the country.
TRAILS SHOLXD BE CUT IN FORESTS
Communication Essential to Effective Com
bating of Fires.
I have already referred to the forests of
the United States and their extent, and
liave urged, as I do again, the removal of
the limitation of the power upon the Ex
ecutive to reserve tracts of lur.d in six
Western states in which withdrawal for this
purpose is now forbidden. The Secretary of
Agriculture gives a very full description of