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About Daily capital journal. (Salem, Or.) 1903-1919 | View Entire Issue (Dec. 6, 1910)
JPAGK TWO VATLt OA PITA li JOURNAL, SALEM, ORKGOX. TIESDAV, DECEMBER 6, 1010. THE CAPITAL JOURNAL E. HOFER, Editor and Proprietor. R. M. HOFER, Manager odapmdent Nawtpapw Dr-trtsd to American Principled and tha PmrroM and Development of All Ornpm Published Every Evening- Except Sunday, SUBSCRIPTION RATESj (Invariably In Advance) Paltr. by Carrier, per year 6.00 Per month- 60c Pailr.br Mail, per jrear 4.00 Per month 5c Waeklr, br Mall, per year 1.00 Six month. 6ne FUIX l.EASBI WIRE TEt.RGRAPH A'VICTORY The election of the Direct Primary ticket, headed by Louis Lachmund, ia a decisive victory for progressive policies. If Mr; Lachmund will make as vigorous a mayor as he has an alderman this city, in all its affairs, will be well looked after. Salem has enjoyed an enviable reputation as a city where there was not a dollar of visible gmf t in its administration. ;, That has been true of the county government and the school government, and has been the result of careful vigilance. The professional grafter is never satisfied with conditions where his shams are continually exposed to the public gaze. Mayor Lachmund will give the city that kind of a square deal and will not be deceived by spurious elements in politics. 1 In making up his committees and in his formulation of policies he can eliminate many blunders of the past, and promote pro gress. '" He wears no collar, and has only the ambition of a business man to make a creditable record for his constituents and the "Stat Capital. ' ' ' " ' ' ' . : o- - ' EDITORIAL NOTEtT. Our merchants report splendid business conditions. The holi ' day trade is two weeks earlier than last year, and Christmas shopping is larger in volume than ever "before. The Journal will publish a Development number of all Western Oregon on New Years' Day. It will be a creditable newspaper for '.'this city, and the Board of Trade and the railroad companies will 'circulate many thousands. Eve.'y live firm will have its adver tisement in that edition, and help boost Salem and Western Ore- ' sen. " " ; , '.. ., . ' It would be a good plan for this city to employ on public work, 1 as far as possible, citizens who Jive at Salem. Public work done ; by non-residents, aliens, Italians and transients sends money out of the city. The laboring manwith a family to support has a hard time at best, and deserves encouragement by city policies. At Spokane all non-resident laborers are shut out of city contracts ' That is hard lines on the transient, but charity begins at home, , and when the payrolls are enlarged the demands upon charity are reduced. President's Message (Continued from rag I.) gardlng the arbitration of pecuniary claims which each government hat against th othor. The Xear East. Turkey: To return the visit of the special embassy gent to an Dounce the accession of Ids Majesty, Mohraiet V., emperor tit the Otto ninua, i t'iu io Constantinople a special ambassador who was charged with the fluty of expressing to thy Ottoman government the value At tachea by tho government of thH Udlted States to Increased and more Important relations between the countries and the desire of the United States to contribute to the large economic and commercial de velopment due to the new regimes In Turkey. I I The rapid develonment new be ginning lu that ancient empire and the marked progress aud inertias! commercial Importance of Bulgurla. KoumanlH and Bervla, make It par ticularly opportune that the posl bllltles of American commerce In tho near Bust should receive due atten tion. . The Far East: The center of interest In far East ern affairs during the past year has again teen Chlua. It Is gratifying to note that the negotiation for loan to the Chin ese government for the construction of the trunk railway lines front Man kow southward to Canton and west ward Uroutfj the Yangtse valley. known as the llukuang loan, were concluded by the representatives of the various financial group In May, last, and the results approved by their respective governments. The agreement, already Initiated by tho Chinese government. Is now await Ing formal ratification. The basis ot the settlement of the terms of this loan was one of exact equality be tween America, Great Britain, Frsnoe and Germany In rwpect to financing tbo loan and supplying materials for the proposed railways and their futuro branches. The application ot the prlnclpl underlying the policy of the United Stales in regard to tho Hukuans; loan, vis.: That of the lutornatlocal ixatlon of the foreign interest In such of the railways of China as may be financed by foreign countries, was suggested on a broader settle by A 1 11 Not a droP ' in Oyer's Sarsaparilla. lcnhnl No alcohol habit. No stimulation. JLf v Aycis Sarsaparilla Is a tonic, a regu lar tonic It tones up, restores healthy activity. Consult your doctor freely about using it. Do as he says, f krr; 'Salem, Ora. f Veil : .mC'?. REPORT 'Amy AV-- FOR FROGRES. the secretary of state in a proposal for Internationalization aud com morclul neutralization of all tho rullways of Manchuria. While the principle which Jed to the proHs! of this government was generally admitted by' the powers, to whonf It was addressed, the governments of Russia and Japan apprehended pructlcal difficulties In the execution of the larger plan which prevented their ready adherence. The que tlon of constructing the Chin Chow Aigun railway by means of an Inter national loan to China, Is, however. Btlll the subject of friendly discus sion by the Interested parties. The policy of this government In these mutters has be'n brought about by n desire to make use of American capltul in the development of China as an Instrument in the promotion of China's welfare and material prosperity without preju dice to her legitimate rights as an Independent political power. This policy has recently found further exemplification in (the as- HlMtaiice given by this government tt the negotiations between China and group ot American bankers for n loan of 150,000,000 to be em ployed chiefly in currency reform. A preliminary agreement betweei the American group and China has been made, covering the loan. For the success of this loan and the contemplate-) reforms which are of greater importance to the commercial Interests of the United 8tate and the civilised world at large, It is realised that an expert will be necessary and this govern ment has received assurance from China that such an adviser, who shall be an American, will be en gaged. The year has further been marked by two Important International agreement relating to Far Eastern affairs. In the Russo-Japanese agreement relating to Manchuria, rlgned July 4. 1910, this govern meat waa gratified to note an assur ance of continued peaceful condi tions in that region and the reaf firmation of the policies with respect to China to whluh the United States, together with all other Inter ested powers, are alike solemnly committed. The treaty annexing Korea to the empire of Japan, promulgated Au gust 29, J 910, marks the final step in a process of control of the ancient omplre by her powerful neighbor which has been In progress for sev eral years past. In commuulcatln? the fact of annexation the Japanese government gave to the government of the United States assurance of the full protection tit the rights o' American citizens In Korea under the changed conditions. Latin America. Under this head the president Ti ters to the centennial anniversary of Mexican Independence; the fourth Pan-American conference at Buenos Ayres and the work of the interna tional bureau' of American repub lics. He continues: During the past year the republic of N'caragua has been the scene of Intercene struggles. General Zelayl was throughout his career the dis turber of Central America and"1 op posed every plan for the promotion of peace and friendly relations be tween the five republics. When ih people of Nicaragua were finally driven Into rebellion by his lawless actions, he violated the laws of wif by unwarranted execution of two American-citizens. This and other offenses -niade it the duty of the American government to take meas ures with a view to ultimate repar ation and for the safeguarding of its interests. American forces were sent to both coasts of N'lcaragua to be In readiness should occasion arise to protect Americans and their Interests and ' remained there until the war was over. These events, together with Zelaya's con tlnued exactions brought him so clearly to the bar of public opinion that he was forced to resign and to take refuge abroad. Since the com plete overthrow of the Madrii gov arnment and the occupation of tho capital by the force of the revolu tion all factions have united to maintain public order and aa a re sult of discussion -wHh an -agent of this government sent to Managua at the Terjnest oT the wrovb'onal gov ernment, comprehensive plans are being made for the future welfar of Nicaragua Including the rehabil itation of public credit. It gratifies me exceedingly to, an nounce tha the Argentine Republic some months ago placed with Amer can manufacturers, a contract for the construction of two battleships and certain additional naval equip ment. Tariff Negotiation. The new tariff law In Section 2 respecting the maximum and mini mum tariffs of the United States which provisions came into effort on April 1, 1910, imposed upon tho president the responsibility of de termining prior to that date whether or not any undue discrimination ex tsted against the United States mid Its products In any c6unlr.v of the world with which we sustained commercial relations. In the case of several countries of apparent undue discrimination against American commerce were found to exist. These discrimina tions were removed by negotiation. Prior to April 1, 1910, when the maximum tariff was to come Into .Kernt'nn with respect to Importa tion from all those countries in whose favor no proclamation apply ing the minimum tariff should be Issued by the president, 134 of such proclamations were Issued. This serins of proclamations em braced the entire commercial world and hence the maximum , tariff of the United States, could be given universal application, thus testifying to the satisfactory condition of ou' trade relations with foreign coun tries. Marked advantages to the com merce of the United States were ob- t allied through these tariff settle ments. In its generul operation this section of the tariff law has thus far proved a guaranty of con tinned commercial peace. The policy of broader and closer trade relations with the dominion of Canada which was Initiated In th adjustment of the maximum and minimum provisions of the tariff uc of August. 1909,-has proved mutual ly beneficial. It Justifies further ef forts for the , readjustment of the commercial relations of the two countries. . The reciprocation on the part f th Dominion government of the sentiment which was expressed by this government was followed In October by, the suggestion that It would be glad to have negotiation resumed. In accordance with thl suggestion the secretary of state, by my direction, despatched two repre sentative of the department of lata, aa special commissioners, to Ottawa to confer with representa tives of the Dominion government. The negotiations were conducted on both aide In a spirit of mutual accommodation. , The conferences were adjourned to be resumed In Washington In January, when it Is hoped that the aspiration of both governments for a mutually advan tageous measure of reciprocity, will be realised. I Capital National Bank i Capita! $100,000 Oldest National Bank la Mirlcn County. DIRECTORS: J. H. Albert. Prea. B. M. Cr lsan. Yloc-Pra. Joa. H. Albert, Cashier. John A. Carson, Geo. F. Rodger. mmwi The use of Sunny Monday laundry soap means economy; economy in the saving of clothes saving of time sav ing of labor.. Sunny Monday is a white soap which con tains no rosin. It will double the life of your clothes, and one bar of it will go as far as two bars of any ordinary yel low laundry soap. Ask your grocer for Sunny Monday. THE N. K. FAIRBANK COMPANY CHICAGO All these tariff negotiations so es sential to our commerce and indus try devolve on the department of state. The Argentine battleship con tracts, like the subsequent impor tant one for ArgenUne- railway equipment and those for Cuban gov ernment vessels were recured for our manufacturers largely through the good offices of the department of state. The efforts, of that department to secure for citizens ot the United States equal opportunity In th markets of the world and to -expand American commerce have been most successful. Congress is urged to continue ti support tho state department in Its endeavor to further trade expan sions, j. . . I cannot leave this subject with out rmphas'jlng the necessity of such legislation as will make possi ble and convenient the establish ment . of American banks and branches of American banks in for eign countries. Only by such mean can. our foreign trade be favorably financed. Another instrumentality ind'spen sible to the anhampered and natural developments of American com merce. Is merchant marine. All maritime and commercial na tions recognize the Importance of this factor. The greatest commer cial nations, our competitors, Jeal ously foster their merchant marine Perhaps nowhere Is the need for rapid nnd direct mall, passenger and freight communication quite so ur gent AS between the United States and Latin America. We can Becure n no other Quarter of the world such Immediate benefits In frlenil ship and commerce as would flov from the establishment of dlrec lines of communication with the countries ot l.atln America. I -Alluded to this most, important subject in my last annual message It has often been before you and 1 need not recapitulate the reason for Its recommendations. Unless prompt action be taken, the completion o the Panama canal will find this the only great commercial nation unablo to avail In International maritime buslnen of this groat contribution to the means of the world' commercial Intercourse. Quit aside from the commercial aspect, unless we create a merchant marine, where can we find the sea faring population necessary hb natural naval reserve and wher? could we find In case of war. the transports and subsidiary viesel without which a naval fleet Is nrmi without a body. For many reason- I cannot too strongly urge upon con gress the passage ot a measure iy mall subsidy or other subvention adequate to guarantee the establish ment and rapid devolepment of an American merchant marine, the re storation of the American flag to '.U ancient place upon the seas. I strongly commend to the favor able action of the congress the enactment of a law applying to civil service to the diplomatic and consu lar service. The excellent result which have attended tho partial application of civil service principle to the diplo matic and consular service are an earnest object of the benefit to be wrought by a wider and more per manent extension of those principles io both branches of the foreign ser vice. During many year past appeals have been made from time to time to congress in favor of government ownership of embassy and legation premises abroad. The acquisition by the government of such suitable residences and offices for Its diplo matic offices Is so Important and necessary to an Improved diplomatic A Reliable Remedy roR CATARRH Ely's Cream B;!m ll aulckl, aMorbaS. Gnus fund at Ones. It cluaiix'a. soothes. heals and protocui lue 4u?aatl luuu braus rtwultiug from OuUrrh and drive sway at. oU m lha Uol quickly. lUauiro the Beuaos ot Tasts and bmt-U. l ull aii 50 oU. at Druggiat or by niall. Liquid Oratm Balm for um In atom! 75 eta. Uj liroUiara, t(l Warren buveU Niw York. service that I have no hesitation In urging upon the congress the pas an ne ol souie nieaHiue that would authorize tho gradual and annual acquisition of premises for diplo matic employes. Treasury Depnrtiivrnt. Estimates for next penses: vear ex- Every effort has been made by each department chief to reduce tho estimated coBt of his department for the ensutyg fiscal year ending June 30, 1912.' These estimates thui made present the ' smallest sum which will maintain the departments bureaus and offices of the govern ment and meet its other conditions under existing law and that a cut of these estimates would result In embarrassing the executive branch of the government. This remark does not apply to the river and har bor estimates except to those v expenses of maintenance and tho meeting of obligations under author ized contracts, nor does it apply to the public building bill nor to the navy building program. The final estimates for the year ending June 30, 1912, aa they have been sent to the treasurer on No vember 29 of this year for the ordi nary expenses of the government, Including these tor public buildings, rivers and harbors and the navy building progress amount to 4630, 494,013.12. Thl Is 152,964,887.3)' less than the appropriations for the fiscal year ending June 30, 1911 It Is $6,88J,153.44 less than the total estimate Including supple mental estimates submitted to con gress by the treasury for the year 1S11 and Is 4S.574.6S9.19 Jess than the original -estimates submitted by the treasirry for 1911. These fig ure do not Include the nppropiia-1 tlons for the Panama canal, the pol icy In respect to which ought to be. and Is, to spend as much each year as can be economically and effec tively expended In order to complete the canal as promptly as possible It will be noted that the estimates for the Panama canal for the ensu ing year are more than 66 millions of dollars, an Increase of 20 mil Vong 0Y9r the amount appropriated, for this year, a difference due lo th fact that estimates for 1912 Include something over $19,000.00 for the fortification of the canal. Against the estimated expenditures of $630 494.013.12, the treasury has est! mated receipts for next year, $680 000,000, making a probable surplu of ordinary receipts over ordinary expenditures of about $50,000,000 or taking into account the estimate for the Panama canal which are $56,920,847.69, It will mean a d-v fl-lt for the next year of about 7 000.000 If congress shall con "'nd- in forttfv the canal. The cost of the fortification 1 of the canal about $19,000,000. The president refers to the an tlquated methods In vogue In the treasury department and says that the head of that department has for two years been devoting his time to bringing the department up to dnte, eliminating waste and reducing the force, largely In the Interest of reonomv. Bv the detection of frauds In weighing sugar upwards of $3,400,000 have been recovered from the benrftclarles of the fraud and an ent'rely new system free from the possibility of such a fraud has been devised. The department has perfected the method of collect Ing duties at the port of New York so as to save the government up wards of 10 or 12 million dollars. There are entirely too many cus toms districts and too many customs collectors. These district should be consolidated and the collectors In charge of them should be abol'shod or treated as mere branch offices in accordance with the plan of th treasury department which will be presented for the consideration o' congress. An Investigation of the appraising ''ftn niw n vogue in New York city has shown a sacrifice of the in terests of the government by under appraisement which 1 In the coursf ot being remeed by reorganization and the employment of competent expert. Very great Improvements have been made In respect to the mints and assay office. There Is an op portunlty for further economy In the abolition of several mint and assay office that have now become un necessary. In the burean of engraving and printing great economic have been effected. In our public buildings we still suffer from the method of appropri ation which ha been so much criti cized In connection with our rivers and harbors. Some method should be devised for controlling the supplv of public buildings so that they, will harmonize with the actual needs of the government. Not only buildings appropriated for by congress which ar not needed and buildings left unappropriated for by congresj which are needed, but when It come to the actual construction, there has been in the past too little study of the building plans and sites with a view to the actual needs of the gov ernment. The last public budding bill carried authorization for the estimated puditure of $33,011,- 500 and I approved it because ot the many good features It contained. Just a I approved the river and harbor bill, but it was drawn upon An Advantage to Your Business We Invite you to become identi fied with this bank. Your fln'anelnt matters require the cnrcul consist ent attention which this bank's am eers give to it customers. Your business will be well man aged, conservatively nd in strict confidence. Your account Invited. an Idea that ought to be abandoned. It seem to me that the wiser method of preparing a public build ing bill would be the preparation ot 8 report 0y a commission of gov ernment experts, whose duty It should be to report to congress th? government's needs In the way of the construction of public buildings with the added function of Includ ing in their recommendation the re lative Importance of the various projects. Revenues, This seems a proper place to con sider the operation of the existing tariff bill, which became a law Au gust 6, 1909. As an Income produc ing measure the existing tariff bill has never been exceeded by any customs bill in the history of the country. Thecorporatlon excise tax, pro portioned Income, has worked well. The tax has been easily collected. Its isrompt payment indicates "that the Incl nee of the tax has not been heavy. It offers, moreover, an op portunity for Knowledge by the gov ernment of the general condition and business Of all corporations and that means by far the most impor tant part of the business of the country. In the original act pro vision was made for the publication of returns. This provision .was sub sequently amended by congr and the matter left to the regulation of the president. I have decided thd Issue of the needed regulations. The Payne Tariff Act. The schedules of the rates of duty In the Payne tariff act have been subjected to a great deal of criti cism, some of it Just, more of It un fonuded, and to much mlsrepresen tat Ion. The act was adopted In pur suance of a declaration by the party which is responsible for it that a customs bill should be a tariff for the protection of home industries, the measure of the protection to be the difference between the cost of production of the imported articles abroad and the cost of producing it t home, together with such addi tion to that difference a might givfl a reasonable profit to the home pro ducer. The basis for the criticism ot this tariff Is that in reepect to a number of the schedule the de clared measure waa not followed but higher division retained or In serted by way ot undue discrimina tion In favor of certain, industries and measures. Little, If any, of the criticism of the tariff haa been di rected against the protective princi ple above stated; but the main bodv of the criticism haa been based on the charge that the attempt to con form the measure ot protection was not honestly and sincerely adhered to. Tariff Hoard. The time 4n which the tariff was prepared undoubtedly was so short as to make it imposisble for thja con gress and its experts to acquire the information necessary strictly to con form to the declared measure. In or der to avoid criticism ot this kind in the future, and for the purpose of more nearly couformiag to the prom ise, congress, at its last session, made provision, at my request for the con tinuance of a board, created under the maximum and minimum clause ot the tariff bill, and authorized this board to expend the money appro priated under my direction for the the ascertainment of the cost of pro- uctlou at home and coroad of the United States National Bank WE HAVE SPECIAL TOOLS for making auto repairs. Wa are thus fully equipped to attend Jo even the most delicate parts of the mechanism. You can safely entrust your auto to us, with ooafldeaewthat we have every facility for the most Intricate work and skill to de K. First class car for hire. SALEM AUTO GARAGE Phone 38 246 State street various articles Included In the sched ules of the tariff. The tariff board thus appointed another authorized has been diligent In preparing itself for the necessary investigations. Thd hope of thosri who have advocated the use of this board for tariff purposes is that the question of the rate ad vance imposed. shall become more of a business question and leas of a political question, to be ascertained by expert of long training and ac curate knowledge. The halt In busi ness due to tlWt- announcement that a' new tariff bill Is to be prepared, and put in operation wlllbe avoided by treating the schedules one by one as occasion shall arise for an increase In rates, and only after it is reported- It is not likely that the board will be able to make a report during the pr.usent session on the present schedules, because a proper examination Involves an enormous amount of detail and a great deal of care; but I hope to be able at the (Continued on Page 6) "Just Say" HORLICK'S It Hunt - Original and fionulrti u HALTED miLSC Tka Food-drink for All Agti ( More healthful than Tea or Coffee. Agrees with the weakest digestion. Ddidous, mvigoraring and nutritious. Rich milk, mafhwj grain, powder form. A quick loach prapaicj In a mhnte. Tab m tubstitate. AA for HORLICK'S. fcSS" Others are imitations. Gold Dust Hour Made by the SYDNEY POWXR COMPANY, Hydaey, Oregon Made for Famtrr Use. Aak yoar grocer for It tm4 Miorta always haa. P. B. WALLACE, gt. Salem Fence Works Headquarter for Woven Wlr Fencing. Hop Wire, Barb Wire, Poultry Netting. Shin gle, Malthold Roofing, P. k. B. and Ready Roofing. All at th lowest price. CHAS. D. MULLIGAN l 250 Court street Phone 114 j Salem's most poular res . taurant THE WHITE HOUSE We cater to the public who demand a good meal for a small price. Wm. McGilchrist & Sons. I