MESSAGEJS READ Serate and House Receive Docu ment in Usual Form. RATE SUPERVISION THE THEME Urges Economy in Public Expendi turesMonroe Doctrine Re duce Philippine Tariff, The most lit portant points brought Oat In the president's message follow: To the Senate and House of Representatives: The people of this country continue to en Joy great prosperity. Undoubtedly there will be ebb and flow In such prosperity, and this ebb and flow will be felt more or less by all members of the community, both by the de serving and the undeserving. Against the wrath of the Lord the wisdom of man cannot avail; in times of flood or draught human In genuity can but partially repair the disas ter. A general failure of crops would hurt all of us. Again, If the folly of man mars the general well-being, then those who are Innocent of the folly will have to pay part of the penalty incurred by those who are guilty of the folly. A panic brought on by the speculative folly of part of the business com munity would hurt the whole business com munity. But such stoppage of welfare, thoujh It might be severe, would not be lasting. In the long run the one vital factor In the per manent prosperity of the country la the high Individual character of the average American worker, the average American citizen, no mat ter whether his work be mental or manual, whether he be farmer or wageworker, busi ness Bian or professional man. In our Industrial and social system the In terests of all men are bo closely Intertwined that in the Immense majority of cases a straight-dealing man who by his efficiency, by his Ingenuity and industry, benefits him self must also benefit others. Normally the man of great productive capacity who becomes rich by guiding the labor of many other men does so by enabling them to product more than they could produce without his guid ance; and both he and they share In the benefit, which comes also to the public at large. The superficial fact that the sharing may be unequal must never blind us to the underlying fact that there It this sharing, and that the benefit comes in some degree to each man concerned. Normally the wageworker, the man of tmall means, and the average con sumer, as well at the average producer, are all alike helped by making conditions such that the man of exceptional business ability receives an exceptional reward for his ability. (Something can be done by legislation to help the general prosperity; but no such help of a permanently beneficial character can be given to the lees able and less fortunate, save as the results of a policy which 'shall inure to the advantage of all industrious and efficient peo ple who act decently; and this is only another way of saying that any benefit which comes to the less able and less fortunate must of ne cessity come even more to the more able and more fortunate. If, therefore, the less for tunate man is moved by envy of his more fortunate brother to strike at the conditions under which they have both, though equally, prospered, the result will assuredly be that while damage may come to the one struck at, It will visit with an even heavier load the one who strikes the blow. Taken as a whole, we must all go up or go down together. The best possible regulation of rates would, of course, be that regulation secured by an honest agreement among the railroads them selves to carry out the law. Such a general agreement would, for Instance, at once put a, stop to the efforts of any one big shipper or big railroad to discriminate against or se cure advantages over some rival; and such agreements would make the railroads them selves agents for enforcing the law. The power vested in the Government to put a stop to agreements to the detriment of the public should, in my Judgment, be accom panied by power to permit, under specified conditloni and careful supervision, agree ments clearly In the Interest of the public. But, in my Judgment, the necessity for giv ing this further power is by no means as great as the necessity for giving the Com mission or administrative body the other powers I have enumerated above; and it may well be Inadvisable to attempt to vest this particular power in the Commission or other administrative body until It already possesses and it exercising what I regard as by far the most Important power of all the powers I recommend as indeed the vitally important power that to fix a given maxi mum rate, which rate, after the lapse of a reasonable time, goes Into full effect, sub ject to review by the courts. Let me most earnestly say that these recom mendations are not made in any spirit of hostility to the railroads. On ethical grounds, on grounds of right, such hostility would be Intolerable; and on grounds of mere National self-interest wt must remember that such hos tility would tell against the welfare not mere ly of some few rich men, but of a multitude of small Investors, a multitude of railway employes, wageworkers; and most severely against the Interest of the public as. a whole. I believe that on the whole our railroads have done well and not 111; but the railroad men who wish to do well should not be exposed to competition with those who have no such de sire, and the only way to secure this end is to give to tome Government tribunal the power to see that Justice Is done by the un willing exactly as It is gladly done by the willing. Moreover, If some Government body ia given Increased power the effect will be to furnish authoritative answer on behalf of the railroad whenever Irrational clamor against It Is raised, or whenever charges made against It are disproved. I ask this legislation not only In the Interest of the public, but in the Interest of the honest railroad man and the honest shipper alike, for It Is they who are chiefly Jeoparded by the practices of their dis honest competitors. This legislation should be enacted In a spirit as remote as possible from hysteria and rancor. If we of the American body politic are true to the traditions we have Inherited we shall always scorn any ef fort to make us hate any man because he is rich, Just as much as we should scorn any effort to make us look down upon or treat contemptuously any man because he Is poor. Insurance, The great Insurance companies afford strik ing examples of corporations whose business has extended so far beyond the Jurisdiction ot the states which created them as to preclude strict enforcement of supervision and regula tion by the parent states. In my last an nual message I recommended "that the Con gress carefully consider whether the power of the bureau of corporations cannot constitu tionally be extended to cover Interstate trans actions In insurance." Recent events have acter of lnturance, for In the absence of emphasised the Importance of an early and ex. haustlve consideration, of this question, to see wnetner it it, not possible to furnish bet ter safeguards than ths several states have been able to furnish against corruntlon of ths flagrant kind which has been exposed. It has been only too clearly shown that certain of the men at the need of these large cor porations take but small note ot the ethical distinction between honesty and dishonesty; they draw the line only this side of what may be called law honesty, the kind of honesty necessary In order to avoid falling Into the clutches of the law. Of course the only com plete remedy for this condition must be found In an aroused public conscience, a higher sense of ethical conduct In the community at large, and especially among business men and In the great profession of the law, and In the growth of a spirit which condemns all dishonesty, whether In rich man or In poor man, whether It takes the shape of bribery or of blackmail. But much can be done by legislation which Is not only drastic but practical. There Is need of a fur stricter and more uniform regulation of the vast Insurance Interests of this country. The United States should In this retpeet follow the policy of other nations by providing ade quate national supervision of commercial In tereete which are clearly National In char acter. My predecessors hare repeatedly recog nised that the foreign business of these com panies Is an important part of our foreign com mercial relations. During the administrations of Presidents Cleveland, Harrison and M Klnley the State Department exercised Its in fluence, through diplomatic channelt, to pre vent unjust discrimination by foreign coun. trios against American Insurance companies. These negotiations Illustrated the propriety of the Congress recognising the National char Federal legislation the State Department could only give expression to the wishes of the au thorities of the several states, whose policy was Ineffective through want of uniformity. Economy In Expenditures. I earnestly recommend to the Congress the need of economy and to this end of a rigid scrutiny of appropriations. As exam ples merely, I call your attention to one or two specific matters. All unnecessary offices should be abolished. The Commissioner of the General Land Office recommends the abolishment of the office of receiver of pub lic moneys for United States land offices. This will effect a saving of about a quar ter of a million dollars a year. As the busi ness of the Nation grows It is Inevitable that there should be from time to time a legitimate Increase In the number of offi cials, and this fact renders It all the more Important that when offices become unneces sary they should be abolished. In the pub lic printing also a large saving of public money can be made. There Is a constantly growing tendency to publish masses of un important Information. It is probably not unfair to say that many tens of thousands ot volumes are published at which no human being ever looks and for which there Is no real demand whatever. Federal Elections. In my last annual message I said: "The power of the Government to protect the Integrity of the elections of its own offi cials Is Inherent and has been recognised and affirmed by repeated declarations of the Supreme Court. There is no enemy of free government more dangerous and none bo Insidious as the corruption of the electorate. No one defends or excuses corruption, and it would seem to follow that none would oppose vigorous measures to eradicate it. I recommend the enactment of a law directed against bribery and corruption in Federal elections. The details ot tuch a law may bt safely left to the wise discretion of the Congress, but It should go as far as unaer the Constitution it is possible to go, and should Include severe penalties against him who gives or receives a bribe intended to Influence his act or opinion at an elector; and provisions for the publication not only of the" expenditures for nominations and elections of all candidates, but also of all contributions received and expenditures made by political committees." -I desire to repeat this recommendation. In political campaigns in a country as large and populous as ours it Is Inevitable that there should be much expense of an entirely leg'tlmate kind. This, of course, means that many contributions, and some of them of large size, must be made, and. as a matter of fact, in any big political contest such contributions are always made to both sides. It Is entirely proper both to give and re ceive them, unless there is an Improper mo tive connected with either gift or reception. If they are extorted by any kind of pressure or promise, express or Implied, direct or in direct, in the way of favor or Immunity, then the giving or receiving becomes not only improper but criminal. It will un doubtedly be difficult as a matter of prac tical detail to shape an act which shall guard with reasonable certainty against such misconduct; but if it is possible to secure by law the full and verified publication In detail of all the sums contributed to and expended by the candidates or committees of any political parties the result cannot but be wholesome. All contributions by corpor ations to any political committee or for any political purpose should be forbidden by law, directors should not be permitted to use stockholders' money for such purposes; and, moreover, a prohibition of this kind would be, as far as It went, an effective method of stopping the evils aimed at in corrupt practices acts. No only should both the National and the several State Legis latures forbid any officer ot a corporation from using tht money of the corporation In or about any election, but they should also forbid such use of money In connection with any legislation sava by the employment of counsel In publio manner for distinctly legal servicea. Santo Domingo. Santo Domingo, in her turn, has now made an appeal to us to help her, and not only every principle of wisdom but every generous instinct within us bids us respond to the ap peal. It Is not of the slightest consequence whether we grant the aid needed by Santo Domingo as an incident to the wise develop ment of the Monroe Doctrine, or because we regard the case of Santo Domingo as stand ing wholly by Itself, and to be treated as such, and not on general principles or with any reference to the Monroe Doctrine. The Important point is to give the needed aid, and the case It certainly sufficiently peculiar to deserve to be judged purely on Its own merits. The conditions In Santo Domingo have for a number of years grown from bad to worse until a year ago all society was on the verge of dissolution. Fortunately, Just at this time a ruler sprang up In Santo Domingo, who, with his colleagues, saw the dangers threatening their country and ap pealed to the friendship of the only great and powerful neighbor who possessed the power, and as they hoped also the will to help them. There was Imminent danger of foreign intervention. The previous rulers of Santo Domingo had recklessly incurred debts, and owing to her Internal disorders she had ceased to be able to provide means of paying the- debts. The patience of her foreign creditors had become exhausted, and at least two foreign nations- were on the point of Intervention, and were only pre vented from Intervening by the unofficial as surance of this Government that it would Itself strive to help Santo Domingo In her hour of need. In the case of one of these nations, only the actual opening of negotia tions to this end by our Government pre vented the seizure of territory In Santo Do mingo by a European power. Of the debts Incurred some were Just, while some were not of a character which really renders It obligatory on, or proper for, Santo Domingo to pay them in full. But she could not pay any of them unless some stability was assured her government and people. Accordingly the Executive Department of our Government negotiated a treaty under which we are to try to help the Dominican people to straighten out their finances. This treaty Is pending before the Senate. In the meantime a temporary arrangement has been made which will last until the Senate has had time to take action upon the treaty. Under this arrangement the Domini can Government has appointed Americans to all the Important positions In the customs service, and they are seeing to the honest collection of the revenues, turning over 45 per cent to the government for running ex penses and putting the other 65 per cent Into a safe depositary for equitable division In case the treaty shall be ratified, among the various creditors, whether European or American. The custom-houses offer well-nigh the only sources ot revenue In Santo Domingo, and the different revolutions usually have as their real aim the obtaining possession of these custom-houses. The mere fact that the collectors of customs are Americans. that they are performing their duties withl efficiency and honesty, and that the treaty Is pending in the Senate, gives a certain moral powtr to the government of Bantu Domingo which it has not had before. This has completely discouraged all revolution ary movement, while It has already produced such an Increase In the revenues that the government Is actually getting more from the 45 per cent that the American collectors turn over to It than It got formerly when It took the entire revenue. It is enabling the poor harassed people of Santo Domingo once more to turn their attention to Industry and to be free from the curse of Inter minable revolutionary disturbance. It offers to all bona fide creditors, American and European, the only really good chance U obtain that to which they are Justly entitled, while It In return gives to Santo Domingo ths only opportunity of defense against claims which It ought not to navi for new I lf 't meets the views of the Senate we snau ourseiveB thoroughly examine all these olaimt, whether American or foreign, and see that aene that are Improper are paid. There Is, of course, opposition to the treaty ' umuonest oredltors, foreign ana Amer ican, and from the professional revolution ists of the Island Itself. We have already reason to believe that some of the creditors who do not dare expose their claims to honest scrutiny are endeavoring to stir up sedition in the island and opposition to the treaty. In the meantime I have exercised the authority vested In me by the Joint reso lution of the Congress to prevent the Intro duction of arms into the Island for revo lutionary purposes Army and Navy, We cannot consider the question of our for eign policy without at the Bame time treating of the Army and the Navy. We now have a very small Army indeed, one well-nigh In finitesimal when compared with the army of any other large nation. Of course, the Army we do have should be as nearly perfect ot Its kind and for Its size as la possible. I do not believe that any arm in the world has a better average of enlisted man or a bettor type of Junior officer; but the Army should be trained to act effectively In a mass. Provis ion should be made by sufficient appropria tions for maneuvers of a practical kind so that the troops may learn how to take care of themselves under actual Bervlce conditions; every march, for Instance, being made with the soldier loaded exactly as he would be In an active campaign. The Generals and Colo nels would thereby have opportunity of hand ling regiments, brigades and divisions and the commissary and medical , departments would be tested In the field. Provision should be made for the exercise at least of a bri gade and by preference of a division in march ing and embarking at Bonis point on our coast and disembarking at some other point and continuing its march. The number of posts In which the Army Is kept In time of peace should be materially diminished and the posts that are left made correspondingly larger. No local Interests should be allowed to stand In the way of assembling the greater part of the troops which would at need form our field armies In stations of such size as will permit the best training to be given to the personnel of all grades, Including the high officers and staff officers. To accomplish this end we must have not company or regimental garrisons, but brigade and division garrisons. Our Navy must, relatively te the navies of other nations, always be of greater size than our Army. We ktve most wisely continued for a number of years to build up our Navy, and It has now reached a falrlv hlrh standard of efficiency. This standard of efficiency must not only he maintained! but increased. It does not seem to me necessary, however, that the Navy should at least in the immediate future be Increased beyond the present num ber of units. What is now clearly necessary Is to substitute efficient for Inefficient units as the latter become worn out or as It be comes apparent that thev are useless. Prob ably the result would be attained by adding a single battle ship to our Navy each year, the superseded or outworn vessels being laid up or broken up fta they are thus replaced. The four Bingle-turren monitors built Immediately after the close of the Spanish war, for In stance, are vessels which would be of but little use in the event of war. The moneys spent upon them could have been more use fully spent In other ways. Thus It would have been far better never to have built a slncle one of these monitors and to have put tie money Into an ample supply of reserve guns. most or me smaller cruisers and gunboats, though they terve a useful purpose so far as they are needed for International police work, would not add to the strength of our Navy In a conflict with a serious foe. There Is. urgent need of providing a large Increase In the number of ofTicers, and especially In the number of enlisted men. Naturalisation Laws. During the past year evidence has accu mulated te confirm the expressions con tained in my last two annual messages as to the Importance of revising bv appro priate legislation our system of naturalizing aliens. I appointed last March a commis sion to make a careful examination of our naturalization laws, and to suggest appro priate measures to avoid the notorious abuses resulting from the Improvident or uniawiui granting of citizenship. This com mission, composed of an officer of the De partment of State, the Department of Jus tice, and of the Department of Commerce and Labor, has discharged the duty imposed upon it, and has submitted a report, which will be transmitted to the Congress for Its consideration, and, 1 hope,' for Its favorable action. Breaches ef Trust la Public Service. There seems to be no statute of the United States which provides for the punishment of a United States Attorney or other officer of the government who corrupi-ly agrees to wrongruuy ao or wrongfully refrain from doing any act when the consideration foi such corrupt agreement Is other than one possessing money value. This ought to be remedied by appropriate legislation. Legis lation should also be enacted to cover, ex plicitly, unequivocally and beyond question, breach of trust in the shape of prematurely divulging official secrets by an officer or employe of the United States, and to pro- j vide a suitable penalty therefor. Such offi cer or employe owes the duty to the United States to guard carefully and not to divulge or In any manner use prematurely infor mation which is accessible to the officer or employe by reason of his official position. Most breaches of public trust are already covered by the law, and this one should be. Public-Land Laws. Once again I call your attention to the condition of the public-land laws. Recent developments have given new urgency to the need for such changes as will fit these laws to actual present conditions. The honest disposal and right use of the remaining public lands Is of fundamental Importance. The Iniquitous methods by which the mo nopolizing ot the public lands Is being brought about under the present laws are becoming more generally known, but the existing laws do not furnish effective reme- Lands Commission upon this subject are wise and should be given effect. The forest policy of the Administration ap pears to enjoy the unbroken support of the people. The great users of timber are them selves forwarding the movement for forest preservation. All organized opposition to the forest reserves in the West has disappeared. Since the consolidation of all Government for est work In the National Forest Service there has been a rapid and notable gain In the use fulness of the forest reserves to the people and in public appreciation of their value. The National parks within or adjacent to forest reserves should be transferred to the charge of " the Forest Service also. Merchant Marine. To the spread of our trade In peace and the defense of our flag in war a great and pros perous merchant marine Is indispensable. We Bhould have ships of our own and seamen of our own to convey our goods to neutral mar kets, and In case of need to reinforce our battle line. It can not but be a source of re gret and uneasiness to us that the lines of communication with our sister republics of South America should be chiefly under for eign control. It Is not a good thing that American merchants and manufacturers should have to send their goods and letters to South America via Europe if they wish security and dispatch. Even on the Pacific where our hips have held their own better than on the Atlantic, our merchant flag Is now threatened through the liberal aid bestowed ' by other governments on their own steam lines. I ask your earnest consideration of the report with which the Merchant Marine Commission has followed Its long and careful Inquiry. Pensions. It Is a matter ot unmixed satisfaction once more to call attention to the excellent work of the Pension Bureau; for the veterans of the Civil War have a greater claim upon us than any other class of our citizens. To tbem, first of all among our people, honor Is due. Seven years ago my lamented predecessor. President McKlnlev, stated that the time had come for the Nation to care for the graves of the Confederate, dead. I recommend that the Congress take action toward this end. The first need is to take charge of the graves of the Confederate dead who died In Northern prisons. Immigration. . The question of Immigration Is of vital In terest to this country, In the year ending June 30, 1005, there came to the United States 1,020,000 alien immigrants. In other words, In the single year that has Just elapsed there came to this country a greater number of people than came here during the 169 years of ur Colonial life which Intervened between the first landing at Jamestown ant rat Declara tion ef Independence, It Is clearly shown In the report of the Commissioner-General of Immigration that while much of this enormous Immigration Is undoubtedly healthy and natur al, a considerable proportion Is undesirable from ona reason or another; moreover, a con siderable proportion of It, probably a very large proportion, including most of the undo strable class, does not come here of Its own initiative, but because of the activity of the agents of the groat transportation oompanlcs. These agents are distributed throughou Ku rope, and by the offer of all kinds of Induce ments they whoedle and cajole many immi grants, often against their best Interest, to come here, The most serious obstacle we have to encounter In the effort to secure a proper regulation of the Immigration to those shores arises from the determined opposition of the foreign steamship lines who have no intercut whatever In the matter save to Increase the returns on their capital by carrying masses of Immigrants hither in the steerage quarters of their Hlilys. The questions arising In connection with Chinese Immigration stand by themselves. The conditions In China are such that the entire Chinese coolie class, that Is, the class of Chinese laborers, skilled and unskilled, le gitimately come under the head of undesir able Immigrants to this country, because ot their numbers, the low waget for which they work and their low standard of living. Not only Is it to the intorest of this country to keep them out, but the Chinese authorities do not desire that they should be admitted. At present their entrance Is prohibited by laws amply adequate to accomplish this purpose. These laws have been, are being and will be, thoroughly enforced. The violations ot thmn are so few In number as to bt Infinitesimal and enn bo ontlrely disregarded. There Is no serious proposal to alter the Immigration laws as regards the Chinese laborer, Bkllled or unskilled, and there la no excuse for any man feeling or affecting to feel the slightest alarm on ths subject. Hut In the effort to carry out the policy of excluding Chinese laborers, Chinese coolies, grave Injustice and wrong have been done by this Nation to the people of China, and there fore ultimately to this Nation ItHulf. Chinese students, business and professional men of all kinds not only merchants, but bankers, doc tors, manufacturers, professors, travelers and the like should be encouraged, to come here and treated on precisely the same footing that we treat students, business men, travelers and the like of othor nations. Our laws and treatlet should be framed, not so as to out these people In the excepted classes, but to state that we will admit all Chinese, oxcent Chinese of the coolie clast, Chinese skilled or unskilled laborers. There would not be the least danger that any such provision would result In any relaxation of tht law about laborers. These will, under all conditions, be kept out absolutely. But it will be more easy to set that both Justice and, courtesy are shown, as they ought to he shown, to other Chinese, If the law or treaty is framed as above suggested, Examinations should bo completed at the port of departure from China. For this purpose there thould be pro vided a more adequate Consular service In China than we now have. The appropriations, both for the offices of the Consuls and for the office forces in the Consulates, should be Increased. This Government has the friendliest feeling for China and desires China's well-being. We cordially sympathize with tht announced pur pose of Japan to stand for the Integrity of China. Such an attitude tendt to the peace of tht world. The (Ivll Service. The civil service law has been on the statute books for 22 years. Every President and a vast majority of heads of departments who have been In office during that period have fa vored a gradual extension of the merit sys tem. The more thoroughly Its principles have been understood the greater has been the fa vor with which the law has been regarued by administrative officers. Any attempt to carry on the great executive departments of the Government without this law would Inevitably result In chaos. The Civil Service Commis sioners are doing excellent work, and their compensations la inadequate considering the service they perform. Adulteration of Foods. I recommend that a law be enacted to regulate Interstate commerce in mlsbranded and adulterated foods, drinks and drugs. Such law would protect legitimate manufac ture and commerce, and would tend to se cure the health and welfare of the consum ing public. Traffic In foodstuffs which have been debased or adulterated so as to Injure health or to deceive purchasers should be forbidden. National Parks. I call your attention to the generous act of the Statt of California In conferring upon the United States Government the own ership of the losemlte Valley and the Mari posa Big Tree Grove. There should be no delay In accepting the gift, and appropria tions should be made for the Including thereof In the Yosemlte National Park, and for the care and pollceing ot the park. Cali fornia has acted most wisely as well as with great magnuntmlty In the matter. There are certain mighty natural features of our land which should be preserved ' in perpetuity for our children and our chil dren's children. In"my Judgment the Grand Canyon of the Colorado should be made into a National park. It is greatly to be wished that the State of New York should copy 'as regurds'Niagara what the State of California hag done as regards the Yosemlte. Noth ing should be allowed to interfere, with the preservation of Niagara Falls In all their beauty and majesty. If the state cannot see to this then It is earnestly to be wished that she should be willing to turn It over to the National Government, which should in such ca?:e 'if possible, In conjunction wlth the Canadian government) assume the burden and responsibility of preserving unharmed Niagara Falls; Just as It Bhould gladly as sume a 3lmllar burden and responsibility for the Yosemlte National Park, and as it has already assumed them for the Yellow stone National Park. Adequate provision should be made by the Congress for the proper care and supervision of til these National park. Indians. During the year just past, the phase of the Indian question which has been most sharply brought to public attention Is the larger legal significance of the Indian's Introduction Into citizenship. This has made Itself mani fest not only In a great access of litigation in which the citizen Indian figures as a party defendant and in a more widespread dispo sition to levy local taxatlonupon his per sonalty, but in a decision of the United States Supreme Court which struck away the main prop on which has hitherto rested the Government's benevolent effort to pro tect him against the evils of Intemperance. The court holds, In effect, that when an Indian becomes, by virtue of an allotment. of land to him, a citizen of the state in which his land is situated, he passes from under Federal control In such matters as this, and the acts of the Congress prohibiting the sale or gift to him of Intoxicants become sub stantially Inoperative. It is gratifying to note that the states and municipalities of the West which have most at Brake in the welfare of the Indians are taking up this subject and are trying to supply, In a meas ure at least, the abdication of its trusteeship forced upon the Federal Government. Never theless, I would urgently presB upon the at tention of the Congress the question whether some amendment of the internal revenue laws might not be of aid in prosecuting those malefactors, known In the Indian coun try as "bootleggers," who art engaged at once In defrauding the United States Treas ury of taxes and, what is far more Impor tant, in debauching tht Indians by carrying liquors illicitly into territory still completely under Federal Jurisdiction. Ths Philippine!. During tht last year the Philippine Islands have been slowly recovering from the series of dimeters which, since American, occupa tion, have greatly reduced the amount of ag ricultural producti below what wat productd In Spanish times. Tht war, tht rlnderpett, the locusts the drought and the choltra havt betn united as causes to prevent a return of the prosperity much nttded in tht Islands. The most serious 1b the destruction by tht rinder pest of more than 75 per cent of the draft cattle because it will take stveral ytars of breeding to rtstort the necessary number of these indispensable aids to agriculture. The CommlBslon attempted to supply by purchaso from adjoining countries the needed cattle, but the experiments made were unsuccessful. Most of the cattle Imported were unable to withstand the change of climate and the rig ors el the voyage and died from other dis eases than rlndersest. Reduction of Tariff Needed, The agricultural conditions of the Islanda enforoe more strongly than ever the argument in favor of reducing the tariff on the prod ucts of tho Philippine Islands entering the United Status. I earnestly recommend that upon the products of the Philippine Islands be entirely removed except the tariff on sugar and tobacco, and that that tariff be reduced to 25 per cent of the present rates under the IUngley act; that after July 1, luutf, the tariff upon tobacco and sugar produced In ths Philippine Islands be entirely removed ami that free trade between the Islands and ths United States In the products of each country then be provided for by law. Iluvmll, In my Judgment Immediate steps should be taken for the fortification ot Hawaii, This Is the most Important point In the Paclflo to fortify In order to conserve the Interests of this country. It would be hard to overstate the Importance of this need. Hawaii Is too heavily taxed. Laws should be enacted set ting aside for a period of, say, 20 years 78 per cent of the Internal revenue and customs) receipts from Hawaii as a suodal fund to be expended In the lilands for educational and publio buildings, and for harbor Improve ments and military .and naval defenses. It cannot be too often' repeated that our aim must he to dovolop the Territory of Hawaii on traditional American lines. That territory has serious commercial and Industrial prob lems to reckon with; but no meusure of relief can be considered which looks to legislation admitting Chinese and restricting them by statute to field labor and dementi service. The status of servility can never again bs tolrrnted on American anil. Wo -cannot con cede that the proper solution of Its problem Is spoclal legislation admitting to Hawaii a class of lahorers denied admission to the other states and territories. There are obstacles, nnd great obstacles, In the wny of butldtnir the tariff now Imposed by tho plngley bill up a representative American community In the Hawaiian iBlnnds; but It Is not In the American character to give up In the face ot difficulty. Many an American commonwealth has been built up against odds equal to those) mat now confront Hawaii. Torto Rl. . I earnestly advocate the adoption of leg islation which will explicitly confer Ameri can citizenship on all citizens of l'orto Kino. Thero is. In my Judgment, no excuse for fullure to do this. The harbor of San Juan should he dredged and Improved. The ex penses of the Federal Court of Porto Hlco shnuld ho met from the Federal Treasury, and not from the Porto Itlcan treasury. The elections In Porto Rico should take place every four years, and the Legislature Bhould meot In sesMlon every two years. The pres ent form of government In Porto Rico, which provides for the appointment by the Presi dent of the members of the executive coun cil or upper House of the Legislature, hna proved satisfactory and has Inspired confi dence In property-owners and Investors. I do not deem It advisable at the present time to change this form In any material feature. The problems and needs of the Island are- Industrial and commercial rather than po litical. Alask.a I earnestly ask that Alaska he given an. elective delegate. Some person should bo chosen who can speak with authority of the needs of the territory. The Government should aid In the construction of a nil I road from the Gulf of Alaska to the Yukon River, In American territory. In my last two messages 1 advocated certain additional ac tion on behalf of Alaska. I shall not now repeat those recommendations, but I shall lay all my stress upon the one recommen dation of giving to Alaska some one au thorized to speak for it. I thould prefer that the delegate was made elective, but If this) Is not deemed wise then make him ap pointive. At any rate, give Alaska some- person whose business It shall be to speak with authority on her behalf to the Con gress. The natural resources of Alaska art great. Some of the chief needs of the pecul iarly energetic, self-reliant, and typically American white 'population of Alaska were set forth in my last message. I also ear nestly ask your attention to the needs of the Alaskan Indians. All Indians who are com petent Bhould receive the full rights of American citizenship. It Is, for Instance, a gross and indefensible wrong to deny to suchi hard-working, decent-living Indians as the) Metlakahtlns the right to obtain licenses a captains, pilots and engineers, the right t enter mining claims, and to profit by ths homestead law. These particular Indiana are civilized, and are competent and en titled to he put on the Bame basis with the white men round about them, Admission to Statehood. I recommend that Indian Territory nnd Oklahoma be admitted as one state and that. New Mexico and Arizona be admitted as one state.. There la no obligation upon ub te treat territorial subdivisions, which are mat ters of convenience only, as binding us on tho question of admission to statehood. Nothing has taken up more time in the Congress during the past tew years than the, question as to the statehood to be granted to the four territories shove mentioned, und. after cart-fu! consideration of all that has--ot-er. developed In the discussions of the question I recommend that they be Imme diately admitted as two states. There Is no Justification for further delay; and the ad visability of niaking the four territories lntc two states has been clearly established. The Panama (anal. The treaty between the United States and the Republic of Panama, under which the construction of the Panama Canal was made possible, went Into effect with its ratification by the United States Senate on February 2;l, 1004. The canal properties of the French Canal Company were transferred to the United States on April 23, 11104, on payment of $40,000,000 to that company. OrL,Aprll 1. 1005, the Commission was reorganized, and It now consists of Theodore P. Shonts, chnlrman; Charles E. Magoon, Benjamin M. Harrod, Rear-Admiral Mordecal T. Endicott,. Brigadier-General Peter C. Halns, and Colo nel Oswald H. Ernst. John F. Stevens wa appointed chief engineer on July 1 last. Active work In canal construction, mainly preparatory, has been in progress for les than a year and a half. During that period two points about the canal have ceased to be open to debate. First, the question ot route; the canal will be built on the Isthmus of Panama. Second, the question of feasi bility; there are no physical obstacles on this routs that American engineering skill will not be able to overcome without serious dif ficulty, or that will prevent the completion! of the canal within a reasonable time and at a reasonable cost, This Is virtually the unanimous testimony of the engineers who have investigated the matter for the Gov ernment. What is needed now and without delay lo an appropriation by the Congress to meet the current and accruing expenses of the Commission. The first appropriation of $10, 000,000, out of the 1!15,000,000 authorized by the Spooner act, was made three year ago. It Is nearly exhausted. There is bare ly enough of it remaining to carry the Commission to the end of the year. Unless the Congress shall appropriate before that time all work must cease. To arrest prog ress for any length of time now, when mat ters are advancing so satisfactorily, would be deplorable. There will be no money with which to meet pay-roll obligations and none with which to meet bills coming due for materials and supplies; and there will be demoralization of the forces, here and on the Isthmus, now working so harmoniously and effectively, lf there is delay in granting an emergency appropriation. Estimates of the amount necessary will be found in the accompanying reports of tht Stcrttary of War and the Commission. Ths Department ef State. I recommend more adequate provision than has been made heretofore for the work of the Department of State. Within a few years there has been a very great increase In the amount and Importance of the work to be done by that department, both in Washing ton and abroad. This has been caused by the great Increase of our foreign trade, the In crease of wealth among our people, which en ables them to travel more generally than heretofore, the Increase of American capita.' which Is seeking lavestment In foreign coun tries, and the growth of our power and weight In the councils of the civilized world. There has been no corresponding Increase of facilities for doing ths work afforded to the department having charge ot our foreign relation 1