JnlILLSBR UILLSKOItO, OREGON, TIIUKSDAY, DECEMBER 8, 1898. VOL. V. NO. 38. 4 ANNUAL MESSAGE Important Features the President's 'Address. Of OUR LATE WAR A FEATURE No Suggestions Made llegardlng the Clnvernment of Our NewTerrltorlee Foreign itolatlons Generally Satis factoryHawaiian Annexation. To the Senate and House of Itepresenta tlves: Notwithstanding the added burdens rendered necessary by the war, our people rejoice In a very satisfactory and steadily Increasing degree of prosperity, evidenced by the largest volume of business ever recorded. livery manufacture bus been productive, agricultural pursuits have yielded abundant returns, labor In the fields of Industry Is better rewarded, rev enue legislation passed by the present congress hus Increased the treasury's re ceipts to the amount estimated by lt authors, the finances of the government have been successfully administered and It credit advanced to the flrat rank; while Its currency has been maintained at the world's highest slundard. Military serv ice under a common Hag and for a righteous cuuse has strengthened the national spirit and served to cement more closely than e,yer the fraternal bond be tiin v.rv sent Ion of the country. A review of the relations of the United States to other powers, always appropri ate, is this venr of primary Importance, In view of the momentous Issues which ss have risen, dvmnnciing in one insiancu m ': uitimniA ilntermlnatlon by arms ana in volvlng far-reaching consequences wmcn will require the earnest attention of the congress. In my last annual message, very fun consideration was given to the question of the dutv of the government of the ttniind states toward Bpaln and the Cu- ban Insurrection, as being by fur the imnnrtiint nroblem with which we wr (Milled uuon to deal. The considers tlons then advanced, and the exposition h. vi.ma therein exDressed. disclosed my aense of the extreme gravity of the $ situation. .. . j. a Bolting aside, as logically unfounded nraetirallv Inadmissible, recogni- tlon of the Cuban Insurgents as belllger nts, recognition of the Independence j of Cuba, neutral Intervention to end the 'war by Imposing a rational compromise v Ki,nn ih contestants. Intervention in ) favor of one or the other party and the forcible annexation ot me leiano, i w i--.,a.a i ua. hnnMtlv due to our friendly relations with Bpaln that she should bo f given a reasonable chance to reallie her expectations or reiorm iu become Irrevocably committed. 1 wiikin few weeks previously she Shad announced comprehensive plans which It win confidently asserted would 9 k. .m..axinn. to remedy the evns I deeply affecting our own country, so In- ftjurloua to the true Interest oi m Smother country, aa well as to those of Cuba, and so repugnant to the universal 'sentiment of humanity, .-traction of the Maine. At this Juncture, on the 15th of Febru- .. Kuril Inn nf IMA yry last, occurrea me mi"; -Ibattle-ehlp Maine, while rightfully lying tin the harbor of Huvana on a mission of Ilntematlonal courtesy and good Will, a "catastrophe the suspicious nature and S hirh iirnd the nation's heart Itirofoundly. It Is a striking evidence of ik. nnU. unit aturdv good sonse ols .ajulshlng our national character that this . shocking blow, falling upon a generous already deeply touched by pro- Mdlnir events In Cuba, did not move them to desperate resolve to tolerate no longer ' he existence of a condition of danger and disorder at our doors that made possible fucn a ueeu oy wiiuiii-vi iiwual. ; V.t the Instinct of justice crevnlled, and the nation anxiously awaited the result , of the searching Investigation at once set fn foot. The finding of the navul board Cf inquiry established that the origin. of he explosion was external by a subma rine mine, and only halted, through lack f positive testimony, to nx tne responsi bility of Its authorship. J PREPARATIONS FOR WAR. tongress' Appropriation ot Fifty Mil lions for Nutlonnl Defense. 1$ All those things carried conviction to 'the moBt thoughtful, even before the finding of the naval court, that a crisis In our relations with Spain and toward Cuba was at hand. Be strong was tills belief that It needed but a brief execu tive suggestion to congress to receive Im mediate answer to the duty of making iinstant provision for the possible and per haps speedily probable emergency of war, and the remarkable, almost unique, ipea tkcle was presented of a unanimous vote of both houses on the 9th of March ap propriating 150,000,000 "for the national de ' Jsnse and for each and every purpose con nected therewith, to be expended at the lscretIon of the president." If That thla act of provision came none too soon was disclosed when the applica tion of the fund 'was undertaken. Our forts were practically undefended; our javy needed large provision for Increased nmunltlon and supplies, and even num- ers to cope with any sudden attack from he navy of Spain, which comprised mod- rn vessels of trie highest type of conti nental perfection. Our army also re quired enlargement of men and muni tions. The details of the hurried prepa jktlons for the decided contingency Is told tn the reports of the secretaries ot war nd of the navy, and need not be repeated ere. lit Is sufficient' to say that the outbreak tt war, when It did come, found our na lion not unprepared to meet the conflict, sor was the apprehension of coming strife ilonflned to our own country. It was felt my the continental powers, which, on April through their ambassadors and envoys. iodressed to tne executive an expression hope that humanity and moderation lght mark the course of this govern ment and people, and that further nego- sit Ions would lead to an attempt, which. mile securing tne maintenance of peace, puia amrm an necessary guarantees for e re-establishment of order In Cuba. Proposal of an Armistice. still animated by the hope of a peace- solution and obeying the dictates of llty, no effort was relaxed to bring abour If speedy ending of the Cuban strunirle. Igotiatlons to this effect continued iftlvely with the government of Spain pklng to the Immediate conclusion of a k months' armistice In Cuba with a tw to effect the recognition of her peo t's right to Independence. Besides this, lm Instant revocation of the order of re fpicentratlon was asked, so that the suf nters. returning to their homes and Iped by united American and Spanish ion, migni De put in a way to support I ssmselvea, and by orderly resumption of I to well-nigh destroyed productive ener es of the Island contribute to the rea Iratlon of Its tranquillity and well-being. Anthorltv to Intervene. jh-leved and disappointed at this barren looms of my iinoer endeavors to reach actlcable solution, I felt It my duty to rarmy under Major-Oeneral Shafter landed f It the whole question to congress. In at Daiquiri, about 16 miles eat of Santt- prac remit the whole q the miwime of April 11, 18118, 1 announced that with thla last overture In the direc tion of Immediate peace In Culia and Its disappointing reception by Spain the ef fort of the executive was brought to an end. I again reviewed the alternative course of action which I had prepared, i concluding that the only courac consonant with Intel national policy and compatible with our firmly act historical traditions was Intervention as a ncutrul to atop the war and checK the hopeless sacrinee oi life, even though that resort Involved hotlle constraint upon both parties to the contest, as well to enforce a truce aa to provide for eventual settlement." On April 22 I proclaimed a Diocaaae or the northern coast of Cuba, Including porta on said coast between Cardenas and lluhla Honda and the port of cienruegos, on the south coast of Cuba; and on the 23d I called for volunteers to execute the pur pose of the resolution. Tbe Ilrrlarallnn of War. Tly my message of April 25, congress was Informed of the situation, unB I recom mended formal declaration of the exist ence of a slate of war between the United States and Sniiln. Congress accordingly i voted on the same duy the act approved April 25. 1W. declaring the existence or. such war from and Including the 21st day of April, and re-enacted the provision of the resolution of April 20, directing tne president to use all the armed forces of the nation to carry, that act Into effect. Hue notification of the existence ot war as aroresaid was given Apri zd oy ieie graph to all the governments with which the United States maintained relations, in order thut their neutrality might be ua- sured during the war. The various govern ments responded with proclamations 01 neutrality, each after Its own method. It la not among the least gratifying Incidents of the struggle that the obllaatlons of neutrality were Impartially discharged by all. often under delicate and difficult cir cumstances. The national defense fund of f.iO,ouo,w was expended in large pan uy me army and the navy, and the objects for which It was used are fully shown in me reports of the several secretaries. It was a most tlmoly appropriation, enabling the government to strengthen Its defenses and to make preparations greatly necaea in cane of war. This fund being inadequate to the requirements of equipment and for the conduct of the war, the patriotism of congress provided the means In the war revenue act of June 13 by authorising a 3 per cent popular loan, not to exceed 1400,000,000, and by levying auuitionai im posts and taxes. Of the authorized loan, 200,000,ooo was offered and promptly taken, the subscriptions so lar exceeding me call as to cover It many times over. While preference was given to the small er bids, no single allotment exceeded S&000. This was a most encouraging and significant result, showing the vast re sources of the nation and the determina tion of the people to uphold their coun try's honor, rnoGitKss OK TUB conflict. Urllllant Series ot Victories American Arms. for It Is not within the province of this message to narrate the history of the extraordinary war that followed the Spanish declaration of April 21, but a brief recital ot Its more salient features Is appropriate. The .first encounter of the war In point of date took place April 27, when a detachment of the blockading suiiadron made a reconnolssnnce In force at Mutanzas, shelled the harbor fortifica tions and demolished several new works In construction. Dewey at Manila. The next engagement was destined to mark a memorable epoch In maritime war fare. The Pacific fleet, under Commo dore Qeorge Dewey, had lain for some weeks at Hong Kong. Upon the colonial proclamation of neutrality being Issued and the customary 24 hours' notice being given, It repaired to Mlrs bay, near Hong Kong, whence It proceeded to tne Philip- pine Islands under telegraphlo orders to capture or destroy tne formidable pan Ish fleet then assembled at Mnnila, At daybreak on May 1 the American force entered Manila bay, and after a few hours' engagement effected the total destruction of ths Spanish fleet, consisting oi tu war ships and a transport, besides capturing tha naval station and forts at Cavlte, thus annihilating the Spanish naval power in the Paclllo ocean and oompletely oontrol ling the bay ot Manila, with the ability to take the city at will. Not a life was lost on our ships, the wounded number ing only seven, while not a vessel was materially Injured. For this gallant achievement congress, upon my recom mendation, fitly bestowed upon the actors preferment and substantial reward. No uiTiaeu victory. Only reluctance to cause needless loss of life and property prevented the early storming and capture of the city, and therewith the absolute military occupation of the whole group. The Insurgents, meanwhile, had resumed the active hos tilities suspended by the uncompleted truce ot December, 1897. Their forces In vested Manila on the northern and east ern side, but were constrained by Admiral Dewey and General Merrltt from attempt ing an assault. It was fitting that what ever was to be done In the way of de olslvs operations In that quarter should be accomplished by the strong arm ot tbe United states alons. Obeying the stern precept of war, which enjoins the overcoming of the adversary and the extlnotion ot his power wherever assailable as the speedy and sure means to win a peace, divided vlotory was not permissible, for no partition of the rights and responsibilities attending the enforoe. ment of a Just and advantageous peaoe could be thought ofw Following the -adopttan of a comprehen sive scheme ot general attack, powerful foroeB were assembled at various points on our coast to Invade Cuba and Porto Rico. Meanwhile, naval demonstrations were made at several exposed points. May 11 the cruiser Wilmington and torpedo-boat Wlnslow were unsuccessful In an attempt to sllenoe -the batteries at Cardenas, In Matanias, Ensign Worth Bagley and four seamen falling. These grievous fatalities were strangely enough among the very few which oocurred during our naval operations In this extraordinary conflict, Hobson's Heroism, The next act In the war thrilled not alone the hearts of our countrymen, but the - world, by Its exceptional heroism, on tne night of June I Lieutenant Hob- son, aided by seven devoted volunteers, blocked the narrow outlet from Santiago harbor by sinking the collier Merrlmac.in the channel under a fierce fire from the shore batteries, escaping with their lives as by a miracle, but - falling Into the hands of the Spaniards. It Is a most grat ifying Incident of the war that the brav ery of this little band of heroes was cor dially appreciated by the Spaniards, who sent a flag of truce to notify Admiral Sampson of their safety and to compli ment them upon their daring act. They were subsequently exohanged. Julv 7, By June 7 the cutting of the last Cuban cable Isolated the island. Thereafter the Invasion was vigorously prosecuted. June 10, under a heavy protecting Are. a land- lng force of 600 marines from the Oregon, Marblehead and Yankee was effected at Quantanamo bay, where tt had been de- termlned to establish a cable station. This Important and essential port was taken from the enemy after severe fighting by the marines, who were the first organized force of the United States to land In Cuba, The position so won was held, despite the desperate attempts to dislodge our forces, By June It additional foroei were landed and strongly intrenched. June, a the advance f tnt lnv4ln ago. This was accomplished under great dllllcultles, but with marvelous dispatch. On June 23 the movement against Santiago was begun. On the 24th the first serious engagement took place In which the First and Tenth cavalry and the Klrnt volunteer oavalry, General Young's brigade of General Wheeler's division, participated, losing heavily. By nightfall, however, ground within five miles of Santiago was won. The advantage was steadily Increased. On July 1 a severe battle took place, our forces gelnlng the outerworks of Santiago, and El Cuney and San Juan were taken after a desperate charge and the Invest ment of the city was completed. The navy co-operated by shelling the town and the coast forts. Destruction of he Armada. On the day following this brilliant achievement of our land forces, July 3, occurred the decisive naval combat of the war.. The Spanish fleet, attempting to , leave the harbor, was met by the Amerl- can squadron under command of Commo dore Sampson. In less than three hours all the Spanish ships were destroyed. 1,wo inuu-. - " " Tilt K-IWO, iiiim aiun uiuciuu, . i.luj. and Cristobal Colon were driven ashore. The Spanish admiral and over 1300 men were taken prisoners. While the enemy's loss of life was deplorably large, some 2U0 perishing, on our side but one man was killed and one man seilously wound' d. Although our ships were repeatedly struck, not one was seriously Injured. The men also conspicuously distinguished them selves, from the commanders to the gun ners and the unnamed heroes In the boiler-rooms, each and all contributing toward tha achievement of this astound ing victory, for which neither ancient nor modern history affords a parallel In the completeness of ths event and the marvel ous disproportion of casualties. It would be Invidious to single out any for special honor. Deserved promotion has rewarded ths mere conspicuous actors the nation's profoundest gratitude Is due to all of those bravs men who by their skill and devo tion In a few short hours crushed the sea power of Spain and wrought a triumph whose decisiveness and far-reaching ef fects can scarcely be measured. Nor can we be unmindful of the achievements of our builders, mechanics and artisans for their skill In the construction ot our war- hips. With the catastrophe or Santiago, Spain's effort upon the ocean virtually ceased. A spasmodic effort toward the end of June to send her Mediterranean fleet, under Admiral Camara, te relieve Manila was abandoned, the expedition oe- Ing recalled after it had passed through the fsuei canal. Bnrrender of Santiago. The capitulation of Santiago followed. Tha city wae closely besieged by land, while the entrance of our ships into tne harbor cut off all relief on that side, After truce to allow of the removal of the noncombatants, protracted negotiations continued from July 3 until July 16, when, under menace of Immediate assault, tne preliminaries of eurrendor were agreed upon, On the 17th General Bhafter oocu. pled the city. The capitulation embraced the entire eastern end of Cuba, me num ber of Spanish soldiers surrendered was 22,000, all of whom were subsequently con veyed to Bpaln at the charge of the United States. The story ot tnis success ful campaign Is told In the report of the secretary of war which will be laid be fore you. Invasion of Porto Rico. With the fall of Santiago, the occupa tion of Porto Rico became the next strat egic necessity. General Miles had pre viously been assigned to organize an ex pedition for that purpose, fortunately, he was already at Santiago, where he had arrived on the 11th of July with reinforce ments for General Shatter's army. With these troopB, consisting of 3415 Infantry and artillery, two companies of engineers and one company of the signal corps. Gen eral MIK'S left uuamanamo juiy i, nav- Ing nine transports convoyed by the Meet under Captain Higglnson, with the Mas sachusetts (flagship), Dixie. Gloucester, Columbia and Yale, the two latter carry ing troops. Ths expedition landed at Guanlca, July 25, which port was entered with little opposition. Here the fleet was Joined by the Annapolis and Wasp, while the Puritan and Amphltrlte went to Ban Juan and Joined the New Orleans, which was engaged In blockading that port. The major-general commanding was subse- quently reinforced by General Schwann's brigade of the Third army corps, by Gen eral Wilson with a part of his division, and also by General Brooke, with a part of his corps, numbering In all 16,973 officers and men. On July 27 he entered Ponce, one of the most Important points In the Island, from which he thereafter directed operations for the capture of the Island, Aa a potent Influence toward peace, the outcome of the Porto Rtcan expedition Is due to those who participated in it. Last Battle of the War. The last scene of the war was enacted at Manila, Its starting place. On August 15. after a brief assault upon the works by the land forces, In which the squadron assisted, the capital surrendered uncondi tionally. The casualties were compara tively few. By this conquest of the Phil ippine Islands, virtually accomplished when the Spanish capacity for resistance was destroyed by Admiral Dewey s vlo tory of the first of May, the result of the war was formally sealed. To General Merrltt, his officers and men, for their un- oomplalnlng and devoted services, for their gallantry In action, the nation Is sincerely grateful. Their long voyage was made with singular success, and the soldierly oonduct of the men, ot whom many were without previous experience In the mili tary service, deserves unmeasured praise. Total Casualties. The total casualties in killed and wound ed In tbe army during the war was as fol lows: Officers killed, 23; enlisted men killed, 257; total, 280; officers wounded, 113; en listed men wounded, 1464; total, 1577. Of the navy, killed, 17: wounded. 67: died as result of wounds, 1; Invalided from service, 0; total, 91. PEACE NEGOTIATIONS. Spain's Overtures for Cessation of Hostilities. The annihilation of Admiral Cervera's fleet, followed by the capitulation of San tiago, having brought to the Spanish gov ernment a realizing sense of the hopeless ness of continuing a struggle now becom ing wholly unequal, it made overtures of peace through the French ambassador, who, with the assent of his government, had acted as the friendly Representative of Spain's Interests during the war. On the 26th of July, M. Cambon presented a communication, signed by the Duke of Almodovar, the Spanish minister of state, Inviting the United States to state the terms upon which It would be willing to make peace. July 30, by a communication addressed to the Duke of Almodovar, and handed by M. Cambon, the terms ot this government were announced substantially In the protocol, afterwards signed, on August 10, the Spanish reply dated AugUBt 7 was handed by M. Cambon to the sec retary of Btate. It accepted uncondi tionally- the terms imposed as to Cuba, Porto Rico, and an Island of the Ladrone group, but appeared to seek to Introduce inadmissible reservations In regard to our demand as to the Philippines. Conceiving that discussion on this point could neither be practicable nor prontabie, I directed that. In order to avoid mis understanding, the matter should be forthwith closed by proposing the em bodiment In a formal protocol of the terms In which the negotiations for peace were undertaken. Tha vagus and Inex plicit suggestions ot the Spanlab not could not be accepted, the only reply be- ' In to present as a virtual ultimatum a draft of the protocol, embodying the pre cise terms tendered to Spain in our note of July 30, which added stipulations of dntuils aa to the appointment of com missioners to arranKe for the evacuation ot the Spanish Antilles. On August 12, M. Cambon announced his receipt of full powers to sign the protocol as submitted. Terms of the Protocol. Accordingly, on the afternoon of August 12, M. Cambon as the plenipotentiary ot Spain and the secretary of state, as the plenipotentiary of the United States, signed the protocol providing: "Article 1. Spain will relinquish all claim of sovereignty over and title to Cuba. "Article 2. Spain will cede to the United States the Island ot Porto Itlco and other uilands now under Spanish sovereignty In the West Indies, and also an Island In the Ladrones to be selected by the United States. "Article 3.i.The Uo'tcd States will occu py and hold the city, bay and harbor of Manila, pending the conclusion of a treaty of peace, which shall determine the con trol, disposition and government of the Philippines." The fourth article proviaea tor tne ap- polntment of Joint commissions on the part or me uniieu omim nu ui"" meet In Havana and San Juan, respective ly, for the purpose of arranging and car rying out the details of the stipulated evacuation of Cuba, Porto Rico and other Spanish Islands In the West Indies. The fifth article provided for the ap pointment of not more than five commis sioners on each side to meet at Paris not later than October 1, and to proceed to the negotiation and conclusion ot a treaty of peace, BUbject to ratuicauon bc cording to the respect ve constitutional forms of the twq countries. i The sixth and last article proV'dei i that ; upon the signing of the Ptocol. 1 hotm. , ties between the two countries shall be "iiprf. nd that notice to that effect should be given as soon as possible by each government to the commanders of its naval forces, Immediately upon the conclusion of the protocol, I Issued the proclamation of Au gust 12. suspending hostilities on the part of the United States. The necessary or ders to that end were at onoe given by tel egraph. The blockade of the ports of Cu ba and of San Juan de Porto Rico was In like manner raised. On AugUBt 18, the muster-out of 100,000 volunteers, or as near hat nnmher as was found to be practica ble, was ordered. On December 1, 101,655 of ficers and men had been mustered out and discharged from the service; 0O2 more w" be mustered out by the 10th of the month; also a corresponding number of generals and general staff officers have been hon- rabty discnargea irom ine seiviuu. mu, "iBV'io The military commissions to superintend the evacuation of Cuba, Porto Rico and the adjacent Wands were forthwith ap pointed: For Cuba Major-fleneral James F. Wade, Rear-Admiral William T. Sampson, Major-General Matthew v. Butler. For Porto Rico Major-General John (J. Brooke. Rear-Admiral Wlnfield Scott Schley, Brigadier-General W. Gordon. They soon afterwards met tne spantsn commissioners at Havana and San Juan, respectively. The Porto Rloo Joint oominls- on speedily accomplished Its tasK, ana by October 18 the evacuation of the Island was completed. The United states nag was raised over the island at noon that day. The administration of Its affairs hus been provisionally intrusted to a military governor until congress shall otherwise provide. The Cuban Joint high commis sion has not yet terminated Its labors. Ow ing to the difficulties In the way of remov ing the large number of Spanish troops till In Cuba, the evacuation cannot be completed before the 1st of January next. The Peace Commission. Pursuant to the fifth article of the pro tocol, I appointed William R. Day, lately secretary of state; Cushman K. Davis, William P. Frye and George Gray, senators of the United States, and Whitelaw Held, to be peace commissioners on the part or the United States. Proceeding In due season to Paris, they there met, on the 1st of October, five eommtssloners slm ilarly appointed on the part of Spain. Tho negotiations have made hopeful progress, eo that I trust soon to be able to lay a definite treaty of peace before the senate, with a review of the steps leading to its signature. I do not discuss at this time the govern ment or the future of the new possessions which will come to us as the result of the war with Spain. Suoh a discussion will be appropriate after the treaty of peace hall be ratified. In the meantime, and until eongress has legislated otherwise, It will be my duty to continue the military government which has existed since our occupation and give their people security In life and property and encouragement under a Just and beneficent rule. OCR FOREIGN RELATIONS. Aside From Spain We Have Had No Serious Differences With Other Nations. With the exception of the rupture with Spain, the Intercourse of the United States with the great family of nations has been marked with cordiality, and the olose of the eventful year finds moat of the Issues that necessarily arise In the complex rela tions of sovereign states adjusted or pre senting no serious obstacles to adjust ment and honorable solution by amicable agreement. A long-unsettled dispute as to the ex tended boundary between the Argentine republic and Chile, stretching along the Andean crests, from the southern bor der of the Atacama desert to the Magel lan straits, nearly a third of the length of the South American continent, as sumed an acute stage In the early part of the year and afforded this government occasion to express the hope that the re sort to arbitration-, already contemplated by existing conventions between the par ties, might prevail, despite the grave diffi culties arising in Its application. I am happy to say that arrangements to thla end have been perfected, the questions ot fact upon which the respective commis sioners were unable to agree being In course of reference to her Britannic ma jesty for determination. A residual dif ference, touching the northern boundary line across the Atacama desert, for which existing treaties provided no adequate ad justment, bids fair to be settled In like manner by a Joint commlesion, upon which the United States minister at Buenos Ayres has been invited to serve as um pire In the last resort. International Cable Agreement. I have found occasion to approach the Argentine government with a view to re moving differences of rate charges im posed upon the cables of an American corporation in the transmission between Buenos Ayres and the cities of Uruguay and Brazil of through messages passing from and to the United States. Although the matter Is complicated by exclusive concessions by Uruguay and Brazil to foreign companies, there Is a strong hope that a good understanding will be reached and that the Important channels of com merclal communication between the United States and the Atlantic cities of South America may be freed from an al most, prohibitory discrimination. . .-X" Foreign Exhibitions. Despite the brief time allotted for prep aration, the exhibits of this country at the universal exposition at Brussels In 1897 enjoyed the singular d'stlnctlon of a larger proportion of awards, having re gard to the number and classes of articles entered, than those of other countries. The worth of such a result In making known our national capacity to supply the world's markets Is obvious. The Nicaragua Canal. Ths Nicaragua canal commission, under Rear - Admiral John 0. Walker, appointed ' July 24, 1K97, under the authority of a provlslon In the sundry civil art of June 4, of that year, has nearly completed Its labors, and the results of Us exhaustive Inquiry Into the proper route, the feasibil ity and the cost of construction of an In teroceanlc canal by the Nicaragua routs, will be laid before you. In the perform ance of its work the commission received all possible courtey and assistance from the governments of Nicaragua and Costa Rica, which thus testified their apprecia tion of the Importance of giving a speedy and practical outcome of the project that has for so many years engrossed the at tention of the respective countries. As the scope of recent Inquiry embraced the whole subject with the aim ot making plans and surveys for a canal by the mont convenient route, It necessarily Included a review of the results of previous sur veys and plans, and In particular those adopted by the Maritime Canal Company under Its existing concessions from Nica ragua and Costa Rica, so that to this. ex tent these grants necessarily held an es sential part In the deliberations and con clusions of the canal commission as they have held and must needs hold In the dis cussion of the matter by congress. Un der these circumstances, and In view of overtures made to the governments of Ncaragua an(j costa Rica by other par- ' ties for a new canal concession predicated on the assumed approaching lapse of the contracts of the Maritime Canal Company with those states, I have not hesitated to . express my convictions that considerations ' of expediency and International policy, as between the several governments Inter ested in the construction and control of an lnteroceanic canal by this route re quire the maintenance of the status quo until the canal commission shall have re- baye had m oppQrtunlty t0 pas finaly upon tbe wnole matter during the eBt Besaon wltnou, prejudlct Dy rea h , h exlItlng condl. ... tlons Nevertheless, It appears that the gov ernment of Nicaragua, as one of Its last sovereign acts before merging Its pow ers In those of the newly formed United States of Central America, has granted an optional conceaslon to another association to become effective on the expiration of the present grant. It does not appear that surveys have been made or what route is proposed under this concession, so that an examination of the feasibility of its plans Is necessarily not embraced In the report of the canal commission. All these circumstances suggest the ur. gency of some definite action by congress at this session if the labors of the past are to be utilized and the linking of the Atlantic and Paclflo oceans by a practical waterway Is to be realized. That the construction of such a maritime highway : r , .,, 7 , ta .nvT mnr than ver tnrilRnnaahla tn ------ . " intimate ana reaay mtercommuni. seaboards demanded by the annexation of the Hawaiian Islands and the prospec tive expansion ot our lnfluenoe and com merce to the Pacific, and that our national policy now more Imperatively than ever calls for Its control by this government, are propositions which I doubt not con gress will duly appreciate and wisely act upon. The Paris Exposition. There is now every prospect that Ihe participation of the United States in the universal exposition to be held In Paris tn 1900 will be on a scale commensurate with the advanced position held by our products and Industries In the world's chief marts. The preliminary report of Moses P. Handy, who, under the act approved July 19, 1897, was appointed special commissioner with a view of se curing all attainable Information neces sary to a full and complete understanding by congress tn regard to the participation by this government in the Paris exposi tion, was laid before you by my message of December 6, 1897, and shows the Urge opportunities to make known our national progress in art, science and manufac tures, as well as the urgent need ot lm mediate and adequate provision to enable due advantage thereof to be taken. Mr. Handy's death soon afterward rendered it necessary for another to take up and complete his unfinished work, and Janu ary 11 last, Mr, ThomaB W. Cridler, third assistant secretary ot state, was desig nated to fulfill that task. His report was laid before you by my message of June 14. 1S98. with the gratifying result of awakening renewed Interest In the pro jected display.. Trade Relations With France and Germany. The commercial arrangements made with France on May 28, 1898, under the provisions of section 3, of the tariff act of 1S97, went into effect on June 1 Know ing. It has relieved a portion of our ex port trade from serious embarrassment, Further negotiations are now pending under section 4 of the same act, with view to the Increase of trade between the two countries to their mutual ad vantage. Negotiations with other govern ments, in part interrupted oy tne war with Spain, are in progress under both sections of the tariff act. I hope to be able to announce some ot the results of these negotiations during the present ses sion at congress. ANNEXATION OF HAWAII. Existing; Lavrs in Force Pendlnsr Ac tlon by Congress. Pendlnsr the consideration by the senate of the treaty signed June 16, 1897, by the plenipotentiaries of the United states ana of the republic of Hawaii, providing for the annexation of the island, a Joint reso lution to accomplish the same purpose by accepting the offered cession and lncor noratlne the ceded territory into the TTnlnn was adoDed bv congress and ap nroved Julv 7. 1898. I thereupon directed the United States Bteamer Philadelphia to convey Rear-Admiral Miller to Hono lulu and entrusted to his hands this Im portant legislative act to be delivered to the president ot tne repuouo oi mmu, with whom the admiral and the United States minister were authorized to maae appropriate arrangements for transfer ring the sovereignty of tne islands to me United States. This was' simply but Im pressively accomplished on August 12 last, by the delivery of a certified copy of the resolution to President Dole, who thereupon yielded up to the representa tive of the government of the United States the sovereignty and public prop erty of the Hawaiian islands. Pursuant to the terms of the Joint resolution and in exercise of authority thereby con ferred upon me, I directed that the civil, Judicial and military powers heretofore exercised by the officers of the govern ment of the republic of Hawaii should continue to be exercised by those officers until congress should provide a govern ment for the Incorporated territory, sub ject to my power to remove such officers and to fill vacancies. The present offi cers and troops of the republic thereup on took the oath of allegiance to the United States, thus providing for the un interrupted continuance of all the admin istrative and municipal functions of the annexed territory until congress shall oth erwise enact. Following the further provision of the Joint resolution, I appointed the Honor ables Shelby M. Cullom, of Illinois; John T. Morgan, of Alabama; Robert R. Hitt, of Illinois; Sanford B. Dole, of Hawaii, and Walter F. Grler, of Hawaii, as com missioners to confer and recommend to congress such legislation concerning the Hawaiian islands as they should deem necessary or proper. Recommendations of the Commission, The commissioners having fulfilled the mission confided to them, their report will be laid before you at an early day. It Is believed that their recommenda tions, will have ths earnest consideration 4ut t the magnitude ot the responsibility renting upon you ti the relationship of t to give such shape to those mld-Pai iflc lands to our home union as wi.l benefit bo h In the highest degree, realizing the aspira tions of the community that has cast Its lot with us ard elected to share our po litical heritage, whi e, at the same time. Justifying the foresight of those who for three-quarters of a century have looked to the assimilation of Haw II as a natural and Inevitable consummation in harmony with our needs and In fulfilment of our cherished traditions. The questions heretofore pending be tween Hawaii and Japan, growing out of the alleged mistreatment of Japanese treaty Immigrants, were, I am pleased to say, adjusted before the act of trans fer by the payment of a reasonable In demnity to the government of Japan, Under the provisions of the Joint resolu tion, the existing customs relations of the Hawaiian islands with the United States and with other eountrlea remain un changed until legislation shnll otherwise provide. The consuls of Hiwatl, rn;re and In foreign countries, con Inue to fulfill there commercial agencies, while the United States consulate at Honolulu is maintained for all proper services per taining to trade and the revenue. It would be desirable that all foreign con- suls In the Hawaiian islands should re- celve new exequaturs from this govern- ment. New Maritime Policy. The annexation of Hawaii and ths Cuba. Porto Rico and the Philippines r. ': suiting from the war, compel the prompt i 'ie United States, to be styled the tor adoption of a mar time policy by frequent ritory of Hawaii. The bill contains ,the,l?;8!1.i,C?m.Ir'unlc10?. en.coura8ed b'! provisions for government of the terri- the United states, under the American flag, f . i - i with the newly acquired Islands. 8rin lory 8iv,n8 u legislative, executive furnished to Its colonies, at an annual cost of about $2,000,000, steamship lines com-1 municatmg with a portion of the world s markets as well as with trade centers of I the home government. The United States1 will not undertake to do less. It is our duty to furnish the people of Hawaii with ' faculties, under national control, for their capuii mm impui i imuc n win De con ceded that the present situation calls for legislation which shall be prompt, dur able and liberal. ARMY REORGANIZATION. Standing; Farce of 100.000 Men Needed Vader Present Conditions. Under the act of congress aoproved April 26, 1898, authorizing the president In his discretion, upon a declaration of war by congress or a declaration by congress mat war exists, 1 directed the Increase of the regular army to the maximum of 62,000, authorized in said act. There are now in the regular army 57.- 862 officers and men. In said act it was provided: "That at the end of any war in which the United States may become In. volved, the army shall be reduced to a peace basis by transfer in the same arm of the service or absorption, by pro motion or honorable discharge, under such regulations as the secretary may es tablish, of supernumerary command offi cers and the honorable discharge or trans- fer of supernumerary enlisted men, and nothing contained in this act shall be construed as authorizing the permanent Increase of the command of enlisted force of the regular army beyond that now pro vided oy tne law in force prior to the passage of this act except as to the In crease of 25 majors provided for in section hereof. The importance of legislation for the permanent increase of the army is there- fore manifest, and the recommendation of the secretary of war for that purpose has my unqualified approval. There can be no question that at this time and prob ably tor some time In the future 100,000 men will be none too many to meet tha necessities of the situation. At all events, whether that number shall be required permanently or not, the power should be given to the president to enlist that force If In his discretion It should be neces sary, and the further discretion should be given him to recruit within the above limit from the inhabitants of the Islands with the government ot which we are charged. Volunteers to Be Sent Home. It is my purpose to muster out the en tire volunteer army as soon as congress shall provide for the increase ot the regu lar establishment. This will be only an act of Justice, and will be much appre ciated by the brave men who left their homes and employments to help the coun. try In its emergency. POSTAL SERVICE. Extraordinary Growth and Gratifying Increase In Efficiency. The postal service of the country ad vances with extraordinary growth. Within 20 years both the revenues and expendi tures of the postofflce department have multiplied three-fold. In the last 10 years they have nearly doubled. Our postal business grows much more rapidly than our population. It now Involves an expen diture of (100,000,000 a year, numbers 73,000 postofficea and enrolls 200,000 employes. This remarkable extension of a Bervlce, which is an accurate index of the publio conditions, presents gratifying evidence of the advancement of education, of the In crease of communication and business activity and of the Improvement ot mall facilities, leading to their constantly aug menting use. The war with Spain laid new and excep tional labors on the postofflce department. The mustering of the military and naval forces of the United States required spe cial mall arrangements for every camp and every campaign. The communication between home and camp was naturally eager and expectant. In some of the larger places ot rendezvous as many as 50,000 letters a day required handling. This necessity was met by the prompt detail ot experienced men from the es tablished force and by directing ail the Instrumentalities of the railway mail and postoffice service so far as necessary to this new need, Congress passed an act empowering the postmaster-general to es tablish an office or branch at every mili tary camp or station, and under this au thority the postal machinery was speed ily put Into effective operation. Capital Centennial, In the year 1900 will occur the centen nial anniversary of the founding of the city of Washington for the permanent capital of the government of the United States by authority of an act of con gress approved July 16, 1790. In May, 1800, the archives and general offices of the federal government were removed to this place. On the 17th of November, 1800, the national congress met here for the first time and assumed exclusive control of the federal district and city. This Inter esting event assumes all the more signifi cance when we recall the circumstances attending the choosing of the site, the naming of the capital tn honor of the father of his country, and the Interest taken by him In the adoption of plans for Its future development on a magnificent scale. These orglnal plans have been wrought out with a constant progress and a sig nal success, even beyond anything tholr framers had foreseen. Labor Laws. The alien contract law Is shown by ex perience to need some amendment; a measure providing better protection for seamen Is proposed;, the rightful applica tion of the eight-hour law for the benefit ot labor and of the principle ot arbitra tion are suggested for consideration, and I commend these subjects to the careful consideration of congress. WILLIAM M'KINLET. Executive Mansion, December 6, .IBjf, TO GOVERN HAWAII President Transmits Report of the Commission. THREE BILLS ACCOMPANY IT First of These Provides for General Or ganization of the Ter- ' rltory. Washington, Dec. 8. The president today transmitted to congress the report of the Hawaiian commission, together with the text of bills drawn by the commission for government of the islands as pait of the United States. Three bills are formnlated for the con sideration of congress. The fiist and principal one outlines a general plan of government and the other two deal with subordinate questions. The main bill provides for the forma- t,on of the "nds into a territory tif no judicial officers. A governor, sec- retary of the territory, United States district judge, United States district at- t i ri i c. . 1 i . torney and DnlteJ States marshal ate to De appointed by the president and an internal revenue district and a customs district created. The offices of president, minister for foreign affairs, finance, public instruc tion, auditor-general, deputy auditor general, surveyor-general and material are abolished. The officers of the territory under the new regime are attorney-general, super intendent of public works, superintend ent of public instruction, auditor and deputy auditor, surveyor, treasurer, and a chief sheriff, to succeed to the duties of marshal of the republio, all to he ap pointed by the governor. Probably the most important portion of the bill is section 4, defining citizen ship, which piovides: "All white per sons, including Portuguese and persons of African descent, and all persons de scending from the Hawaiian race on either paternal or maternal side who were citizens of the republic of Hawaii immediately prior to the transfer of sovereignty thereof to the United States are hereby declared citizens of the United States." Provision is made for a .legislature, to consist of two houses; a senate, to consist of 15 members, and a house of tepresentatives, consisting of SO mem-, bers. The members are to be elected by general election. Sessions of the legislature are limit ed to 60 days. Five registration districts are provid ed, and the governor of the territory is anthorized to appoint registration boards with the advice of the senate. The bill also provides for the elec tion of a delegate to the house of repre sentatives in congress, this delegate to possess the same powers and privileges'. now accorded to other delegates in con gress. The governor is to appoint a -chief justice and two associate justices of the supreme court, the judges of the oircuit court, the members of the board of health, commissioners of public in struction, prison inspectors, boards of registration, inspectors of election and other public offices that may be created by law and all officers whose salaries exceed $3,000 per annum. Other pro visions of the report are as follows: The governor is to possess the veto power, but his veto may he overridden by a two-thirds vote of both houses of the legislature. The legislature is au thorized to create town, oity ot county municipalities. Foreign goods and ar ticles imported into the islands after July 7, 1898, are, if afterwards brought into the United States, to pay the same duty charged upon like articles which are imported fiom any foreign country. Existing laws of Hawaii, not incon sistent with the constitution and laws of the United States or this act, con tinue in force subject to repeal or amendment by the legislature of Ha waii or by congress. The laws of Ha waii relating to public or government lands will continue in force until changed by congress. Laws relating to agriculture and forestry are continued in force. The bill also provides that the con stitution and laws of the United States looally applicable shall have the same force and effect in the territory of Hawaii as elsewhere iq the United ' States. Bill for Sugar-Beet Kounty. Salem, Or., Dec. 8. While looking after other business interests at the oapital, Turner Oliver is incidentally doing what he can to further the inter ests of a bill ptoviding for a sugar-beet bounty. It is his purpose to have in troduced at the coming session of the legislature the bill introduced at the special session, which failed to get through. The report that a colony of Mormons have settled in the Grand Bonde valley, in pursuance of a con tract to supply the factory with sugar beets, Mr. Oliver says, is not correct. A number of farmers are under con traot, he says; to furnish beets to the faotory, but there is no Mormon colony. Washington, Dec. 8. The transport Puebla arrived at Manila today. No deaths are reported. Massacred by Niger Tribesmen. London, Dec. 8. The British for eign office has received news that Lieutenants Keating and Gale and 19 native soldiers were massacred in Oa tober, while parleying with the tribes wen of the Niger territory between Jobna and Ilo. San Francisco, Deo. 8. Another body, supposed to be that of ,ln!ge Carter, an Eastern racing judge, wai fonnd in the ruins of the Baldwin ho, tel today.