During the past year the foreign relations of the United States have continued upon a basis of friendship and good understanding.  . The year has been notable as witnessing the pacific settlement of two important international controversies before the Permanent Court of The Hague. The arbitration of the Fisheries dispute between the United States and Great Britain, which has been the source of nearly continuous diplomatic correspondence since the Fisheries Convention of 1818, has given an award which is satisfactory to both parties. This arbitration is particularly noteworthy not only because of the eminently just results secured, but also because it is the first arbitration held under the general arbitration treaty of April 4, 1908, between the United States and Great Britain, and disposes of a controversy the settlement of which has resisted every other resource of diplomacy, and which for nearly ninety years has been the cause of friction between two countries whose common interest lies in maintaining the most friendly and cordial relations with each other. The United States was ably represented before the tribunal. The complicated history of the questions arising made the issue depend, more than ordinarily in such cases, upon the care and skill with which our case was presented, and I should be wanting in proper recognition of a great patriotic service if I did not refer to the lucid historical analysis of the facts and the signal ability and force of the argument --six days in length--presented to the Court in support of our case by Mr. Elihu Root. As Secretary of State, Mr. Root had given close study to the intricate facts bearing on the controversy, and by diplomatic correspondence had helped to frame the issues. At the solicitation of the Secretary of State and myself, Mr. Root, though burdened by his duties as Senator from New York, undertook the preparation of the case as leading counsel, with the condition imposed by himself that, in view of his position as Senator, he should not receive any compensation. The Tribunal constituted at The Hague by the Governments of the United States and Venezuela has completed its deliberations and has rendered an award in the case of the Orinoco Steamship Company against Venezuela. The award may be regarded as satisfactory since it has, pursuant to the contentions of the United States, recognized a number of important principles making for a judicial attitude in the determining of international disputes. In view of grave doubts which had been raised as to the constitutionality of The Hague Convention for the establishment of an International Prize Court, now before the Senate for ratification, because of that provision of the Convention which provides that there may be an appeal to the proposed Court from the decisions of national courts, this government proposed in an Identic Circular Note addressed to those Powers who had taken part in the London Maritime Conference, that the powers signatory to the Convention, if confronted with such difficulty, might insert a reservation to the effect that appeals to the International Prize Court in respect to decisions of its national tribunals, should take the form of a direct claim for compensation; that the proceedings thereupon to be taken should be in the form of a trial de novo, and that judgment of the Court should consist of compensation for the illegal capture, irrespective of the decision of the national court whose judgment had thus been internationally involved. As the result of an informal discussion it was decided to provide such procedure by means of a separate protocol which should be ratified at the same time as the Prize Court Convention itself. Accordingly, the Government of the Netherlands, at the request of this Government, proposed under date of May 24, 1910, to the powers signatory to The Hague Convention, the negotiation of a supplemental protocol embodying stipulations providing for this alternative procedure. It is gratifying to observe that this additional protocol is being signed without objection, by the powers signatory to the original convention, and there is every reason to believe that the International Prize Court will be soon established. The Identic Circular Note also proposed that the International Prize Court when established should be endowed with the functions of an Arbitral Court of Justice under and pursuant to the recommendation adopted by the last Hague Conference. The replies received from the various powers to this proposal inspire the hope that this also may be accomplished within the reasonably near future. It is believed that the establishment of these two tribunals will go a long way toward securing the arbitration of many questions which have heretofore threatened and, at times, destroyed the peace of nations. Appreciating these enlightened tendencies of modern times, the Congress at its last session passed a law providing for the appointment of a commission of five members "to be appointed by the President of the United States to consider the expediency of utilizing existing international agencies for the purpose of limiting the armaments of the nations of the world by international agreement, and of constituting the combined navies of the world an international force for the preservation of universal peace, and to consider and report upon any other means to diminish the expenditures of government for military purposes and to lessen the probabilities of war." I have not as yet made appointments to this Commission because I have invited and am awaiting the expressions of foreign governments as to their willingness to cooperate with us in the appointment of similar commissions or representatives who would meet with our commissioners and by joint action seek to make their work effective. Several important treaties have been negotiated with Great Britain in the past twelve months. A preliminary diplomatic agreement has been reached regarding the arbitration of pecuniary claims which each Government has against the other. This agreement, with the schedules of claims annexed, will, as soon as the schedules are arranged, be submitted to the Senate for approval. An agreement between the United States and Great Britain with regard to the location of the international boundary line between the United States and Canada in Passamaquoddy Bay and to the middle of Grand Manan Channel was reached in a Treaty concluded May 21, 1910, which has been ratified by both Governments and proclaimed, thus making unnecessary the arbitration provided for in the previous treaty of April 11, 1908. The Convention concluded January 11, 1909, between the United States and Great Britain providing for the settlement of international differences between the United States and Canada including the apportionment between the two countries of certain of the boundary waters and the appointment of Commissioners to adjust certain other questions has been ratified by both Governments and proclaimed. The work of the International Fisheries Commission appointed in 1908, under the treaty of April 11, 1908, between Great Britain and the United States, has resulted in the formulation and recommendation of uniform regulations governing the fisheries of the boundary waters of Canada and the United States for the purpose of protecting and increasing the supply of food fish in such waters. In completion of this work, the regulations agreed upon require congressional legislation to make them effective and for their enforcement in fulfillment of the treaty stipulations.  . In October last the monarchy in Portugal was overthrown, a provisional Republic was proclaimed, and there was set up a de facto Government which was promptly recognized by the Government of the United States for purposes of ordinary intercourse pending formal recognition by this and other Powers of the Governmental entity to be duly established by the national sovereignty.  . A disturbance among the native tribes of Liberia in a portion of the Republic during the early part of this year resulted in the sending, under the Treaty of 1862, of an American vessel of war to the disaffected district, and the Liberian authorities, assisted by the good offices of the American Naval Officers, were able to restore order. The negotiations which have been undertaken for the amelioration of the conditions found in Liberia by the American Commission, whose report I transmitted to Congress on March 25 last, are being brought to conclusion, and it is thought that within a short time practical measures of relief may be put into effect through the good offices of this Government and the cordial cooperation of other governments interested in Liberia's welfare. 
 To return the visit of the Special Embassy announcing the accession of His Majesty Mehemet V, Emperor of the Ottomans, I sent to Constantinople a Special Ambassador who, in addition to this mission of ceremony, was charged with the duty of expressing to the Ottoman Government the value attached by the Government of the United States to increased and more important relations between the countries and the desire of the United States to contribute to the larger economic and commercial development due to the new regime in Turkey. The rapid development now beginning in that ancient empire and the marked progress and increased commercial importance of Bulgaria, Roumania, and Servia make it particularly opportune that the possibilities of American commerce in the Near East should receive due attention.  . The National Skoupchtina having expressed its will that the Principality of Montenegro be raised to the rank of Kingdom, the Prince of Montenegro on August 15 last assumed the title of King of Montenegro. It gave me pleasure to accord to the new kingdom the recognition of the United States. The center of interest in Far Eastern affairs during the past year has again been China. It is gratifying to note that the negotiations for a loan to the Chinese Government for the construction of the trunk railway lines from Hankow southward to Canton and westward through the Yangtse Valley, known as the Hukuang Loan, were concluded by the representatives of the various financial groups in May last and the results approved by their respective governments. The agreement, already initialed by the Chinese Government, is now awaiting formal ratification. The basis of the settlement of the terms of this loan was one of exact equality between America, Great Britain, France, and Germany in respect to financing the loan and supplying materials for the proposed railways and their future branches. The application of the principle underlying the policy of the United States in regard to the Hukuang Loan, viz., that of the internationalization of the foreign interest in such of the railways of China as may be financed by foreign countries, was suggested on a broader scale by the Secretary of State in a proposal for internationalization and commercial neutralization of all the railways of Manchuria. While the principle which led to the proposal of this Government was generally admitted by the powers to whom it was addressed, the Governments of Russia and Japan apprehended practical difficulties in the execution of the larger plan which prevented their ready adherence. The question of constructing the Chinchow-Aigun railway by means of an international loan to China is, however, still the subject of friendly discussion by the interested parties. The policy of this Government in these matters has been directed by a desire to make the use of American capital in the development of China an instrument in the promotion of China's welfare and material prosperity without prejudice to her legitimate rights as an independent political power. This policy has recently found further exemplification in the assistance given by this Government to the negotiations between China and a group of American bankers for a loan of $50,000,000 to be employed chiefly in currency reform. The confusion which has from ancient times existed in the monetary usages of the Chinese has been one of the principal obstacles to commercial intercourse with that people. The United States in its Treaty of 1903 with China obtained a pledge from the latter to introduce a uniform national coinage, and the following year, at the request of China, this Government sent to Peking a member of the International Exchange Commission, to discuss with the Chinese Government the best methods of introducing the reform. In 1908 China sent a Commissioner to the United States to consult with American financiers as to the possibility of securing a large loan with which to inaugurate the new currency system, but the death of Their Majesties, the Empress Dowager and the Emperor of China, interrupted the negotiations, which were not resumed until a few months ago, when this Government was asked to communicate to the bankers concerned the request of China for a loan of $50,000,000 for the purpose under review. A preliminary agreement between the American group and China has been made covering the loan. For the success of this loan and the contemplated reforms which are of the greatest importance to the commercial interests of the United States and the civilized world at large, it is realized that an expert will be necessary, and this Government has received assurances from China that such an adviser, who shall be an American, will be engaged. It is a matter of interest to Americans to note the success which is attending the efforts of China to establish gradually a system of representative government. The provincial assemblies were opened in October, 1909, and in October of the present year a consultative body, the nucleus of the future national parliament, held its first session at Peking. The year has further been marked by two important international agreements relating to Far Eastern affairs. In the Russo-Japanese Agreement relating to Manchuria, signed July 4, 1910, this Government was gratified to note an assurance of continued peaceful conditions in that region and the reaffirmation of the policies with respect to China to which the United States together with all other interested powers are alike solemnly committed. The treaty annexing Korea to the Empire of Japan, promulgated August 29, 1910, marks the final step in a process of control of the ancient empire by her powerful neighbor that has been in progress for several years past. In communicating the fact of annexation the Japanese Government gave to the Government of the United States assurances of the full protection of the rights of American citizens in Korea under the changed conditions. Friendly visits of many distinguished persons from the Far East have been made during the year. Chief among these were Their Imperial Highnesses Princes Tsai-tao and Tsai-Hsun of China; and His Imperial Highness Prince Higashi Fushimi, and Prince Tokugawa, President of the House of Peers of Japan. The Secretary of War has recently visited Japan and China in connection with his tour to the Philippines, and a large delegation of American business men are at present traveling in China. This exchange of friendly visits has had the happy effect of even further strengthening our friendly international relations. During the past year several of our southern sister Republics celebrated the one hundredth anniversary of their independence. In honor of these events, special embassies were sent from this country to Argentina, Chile, and Mexico, where the gracious reception and splendid hospitality extended them manifested the cordial relations and friendship existing between those countries and the United States, relations which I am happy to believe have never before been upon so high a plane and so solid a basis as at present. The Congressional commission appointed under a concurrent resolution to attend the festivities celebrating the centennial anniversary of Mexican independence, together with a special ambassador, were received with the highest honors and with the greatest cordiality, and returned with the report of the bounteous hospitality and warm reception of President Diaz and the Mexican people, which left no doubt of the desire of the immediately neighboring Republic to continue the mutually beneficial and intimate relations which I feel sure the two governments will ever cherish. At the Fourth Pan-American Conference which met in Buenos Aires during July and August last, after seven weeks of harmonious deliberation, three conventions were signed providing for the regulation of trade-marks, patents, and copyrights, which when ratified by the different Governments, will go far toward furnishing to American authors, patentees, and owners of trade-marks the protection needed in localities where heretofore it has been either lacking or inadequate. Further, a convention for the arbitration of pecuniary claims was signed and a number of important resolutions passed. The Conventions will in due course be transmitted to the Senate, and the report of the Delegation of the United States will be communicated to the Congress for its information. The special cordiality between representative men from all parts of America which was shown at this Conference cannot fail to react upon and draw still closer the relations between the countries which took part in it. The International Bureau of American Republics is doing a broad and useful work for Pan American commerce and comity. Its duties were much enlarged by the International Conference of American States at Buenos Aires and its name was shortened to the more practical and expressive term of Pan American Union. Located now in its new building, which was specially dedicated April 26 of this year to the development of friendship, trade and peace among the American nations, it has improved instrumentalities to serve the twenty-two republics of this hemisphere. I am glad to say that the action of the United States in its desire to remove imminent danger of war between Peru and Ecuador growing out of a boundary dispute, with the cooperation of Brazil and the Argentine Republic as joint mediators with this Government, has already resulted successfully in preventing war. The Government of Chile, while not one of the mediators, lent effective aid in furtherance of a preliminary agreement likely to lead on to an amicable settlement, and it is not doubted that the good offices of the mediating Powers and the conciliatory cooperation of the Governments directly interested will finally lead to a removal of this perennial cause of friction between Ecuador and Peru. The inestimable value of cordial cooperation between the sister republics of America for the maintenance of peace in this hemisphere has never been more clearly shown than in this mediation, by which three American Governments have given to this hemisphere the honor of first invoking the most far-reaching provisions of The Hague Convention for the pacific settlement of international disputes. There has been signed by the representatives of the United States and Mexico a protocol submitting to the United States-Mexican Boundary Commission (whose membership for the purpose of this case is to be increased by the addition of a citizen of Canada) the question of sovereignty over the Chamizal Tract which lies within the present physical boundaries of the city of E1 Paso, Tex. The determination of this question will remove a source of no little annoyance to the two Governments. The Republic of Honduras has for many years been burdened with a heavy bonded debt held in Europe, the interest on which long ago fell in arrears. Finally conditions were such that it became imperative to refund the debt and place the finances of the Republic upon a sound basis. Last year a group of American bankers undertook to do this and to advance funds for railway and other improvements contributing directly to the country's prosperity and commerce--an arrangement which has long been desired by this Government. Negotiations to this end have been under way for more than a year and it is now confidently believed that a short time will suffice to conclude an arrangement which will be satisfactory to the foreign creditors, eminently advantageous to Honduras, and highly creditable to the judgment and foresight of the Honduranean Government. This is much to be desired since, as recognized by the Washington Conventions, a strong Honduras would tend immensely to the progress and prosperity of Central America. During the past year the Republic of Nicaragua has been the scene of internecine struggle. General Zelaya, for seventeen years the absolute ruler of Nicaragua, was throughout his career the disturber of Central America and opposed every plan for the promotion of peace and friendly relations between the five republics. When the people of Nicaragua were finally driven into rebellion by his lawless exactions, he violated the laws of war by the unwarranted execution of two American citizens who had regularly enlisted in the ranks of the revolutionists. This and other offenses made it the duty of the American Government to take measures with a view to ultimate reparation and for the safeguarding of its interests. This involved the breaking off of all diplomatic relations with the Zelaya Government for the reasons laid down in a communication from the Secretary of State, which also notified the contending factions in Nicaragua that this Government would hold each to strict accountability for outrages on the rights of American citizens. American forces were sent to both coasts of Nicaragua to be in readiness should occasion arise to protect Americans and their interests, and remained there until the war was over and peace had returned to that unfortunate country. These events, together with Zelaya's continued exactions, brought him so clearly to the bar of public opinion that he was forced to resign and to take refuge abroad. In the above-mentioned communication of the Secretary of State to the Charge' d'Affaires of the Zelaya Government, the opinion was expressed that the revolution represented the wishes of the majority of the Nicaraguan people. This has now been proved beyond doubt by the fact that since the complete overthrow of the Madriz Government and the occupation of the capital by the forces of the revolution, all factions have united to maintain public order and as a result of discussion with an Agent of this Government, sent to Managua at the request of the Provisional Government, comprehensive plans are being made for the future welfare of Nicaragua, including the rehabilitation of public credit. The moderation and conciliatory spirit shown by the various factions give ground for the confident hope that Nicaragua will soon take its rightful place among the law-abiding and progressive countries of the world. It gratifies me exceedingly to announce that the Argentine Republic some months ago placed with American manufacturers a contract for the construction of two battle-ships and certain additional naval equipment. The extent of this work and its importance to the Argentine Republic make the placing of the bid an earnest of friendly feeling toward the United States. The new tariff law, in section 2, respecting the maximum and minimum tariffs of the United States, which provisions came into effect on April 1, 1910, imposed upon the President the responsibility of determining prior to that date whether or not any undue discrimination existed against the United States and its products in any country of the world with which we sustained commercial relations. In the case of several countries instances of apparent undue discrimination against American commerce were found to exist. These discriminations were removed by negotiation. Prior to April 1, 1910, when the maximum tariff was to come into operation with respect to importations from all those countries in whose favor no proclamation applying the minimum tariff should be issued by the President, one hundred and thirty-four such proclamations were issued. This series of proclamations embraced the entire commercial world, and hence the minimum tariff of the United States has been given universal application, thus testifying to the satisfactory character of our trade relations with foreign countries. Marked advantages to the commerce of the United States were obtained through these tariff settlements. Foreign nations are fully cognizant of the fact that under section 2 of the tariff act the President is required, whenever he is satisfied that the treatment accorded by them to the products of the United States is not such as to entitle them to the benefits of the minimum tariff of the United States, to withdraw those benefits by proclamation giving ninety days' notice, after which the maximum tariff will apply to their dutiable products entering the United States. In its general operation this section of the tariff law has thus far proved a guaranty of continued commercial peace, although there are unfortunately instances where foreign governments deal arbitrarily with American interests within their jurisdiction in a manner injurious and inequitable. The policy of broader and closer trade relations with the Dominion of Canada which was initiated in the adjustment of the maximum and minimum provisions of the Tariff Act of August, 1909, has proved mutually beneficial. It justifies further efforts for the readjustment of the commercial relations of the two countries so that their commerce may follow the channels natural to contiguous countries and be commensurate with the steady expansion of trade and industry on both sides of the boundary line. The reciprocation on the part of the 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 the negotiations, which had been temporarily suspended during the summer, resumed. In accordance with this suggestion the Secretary of State, by my direction, dispatched two representatives of the Department of State as special commissioners to Ottawa to confer with representatives of the Dominion Government. They were authorized to take such steps for formulating a reciprocal trade agreement as might be necessary and to receive and consider any propositions which the Dominion Government might care to submit. Pursuant to the instructions issued conferences were held by these commissioners with officials of the Dominion Government at Ottawa in the early part of November. 
The negotiations were conducted on both sides in a spirit of mutual accommodation. The discussion of the common commercial interests of the two countries had for its object a satisfactory basis for a trade arrangement which offers the prospect of a freer interchange for the products of the United States and of Canada. The conferences were adjourned to be resumed in Washington in January, when it is hoped that the aspiration of both Governments for a mutually advantageous measure of reciprocity will be realized. All these tariff negotiations, so vital to our commerce and industry, and the duty of jealously guarding the equitable and just treatment of our products, capital, and industry abroad devolve upon the Department of State. The Argentine battle-ship contracts, like the subsequent important one for Argentine railway equipment, and those for Cuban Government vessels, were secured for our manufacturers largely through the good offices of the Department of State. The efforts of that Department to secure for citizens of the United States equal opportunities in the markets of the world and to expand American commerce have been most successful. The volume of business obtained in new fields of competition and upon new lines is already very great and Congress is urged to continue to support the Department of State in its endeavors for further trade expansion. Our foreign trade merits the best support of the Government and the most earnest endeavor of our manufacturers and merchants, who, if they do not already in all cases need a foreign market, are certain soon to become dependent on it. Therefore, now is the time to secure a strong position in this field. I cannot leave this subject without emphasizing the necessity of such legislation as will make possible and convenient the establishment of American banks and branches of American banks in foreign countries. Only by such means can our foreign trade be favorably financed, necessary credits be arranged, and proper avail be made of commercial opportunities in foreign countries, and most especially in Latin America. Another instrumentality indispensable to the unhampered and natural development of American commerce is merchant marine. All maritime and commercial nations recognize the importance of this factor. The greatest commercial nations, our competitors, jealously foster their merchant marine. Perhaps nowhere is the need for rapid and direct mail, passenger and freight communication quite so urgent as between the United States and Latin America. We can secure in no other quarter of the world such immediate benefits in friendship and commerce as would flow from the establishment of direct lines Of communication with the countries of Latin America adequate to meet the requirements of a rapidly increasing appreciation of the reciprocal dependence of the countries of the Western Hemisphere upon each other's products, sympathies and assistance. I alluded to this most important subject in my last annual message; it has often been before you and I need not recapitulate the reasons for its recommendation. Unless prompt action be taken the completion of the Panama Canal will find this the only great commercial nation unable to avail in international maritime business of this great improvement in the means of the world's commercial intercourse. Quite aside from the commercial aspect, unless we create a merchant marine, where can we find the seafaring population necessary as a natural naval reserve and where could we find, in case of war, the transports and subsidiary vessels without which a naval fleet is arms without a body? For many reasons I cannot too strongly urge upon the Congress the passage of a measure by mail subsidy or other subvention adequate to guarantee the establishment and rapid development of an American merchant marine, and the restoration of the American flag to its ancient place upon the seas. Of course such aid ought only to be given under conditions of publicity of each beneficiary's business and accounts which would show that the aid received was needed to maintain the trade and was properly used for that purpose. With our increasing international intercourse, it becomes incumbent upon me to repeat more emphatically than ever the recommendation which I made in my Inaugural Address that Congress shall at once give to the Courts of the United States jurisdiction to punish as a crime the violation of the rights of aliens secured by treaty with the United States, in order that the general government of the United States shall be able, when called upon by a friendly nation, to redeem its solemn promise by treaty to secure to the citizens or subjects of that nation resident in the United States, freedom from violence and due process of law in respect to their life, liberty and property. I also strongly commend to the favorable action of the Congress the enactment of a law applying to the diplomatic and consular service the principles embodied in Section 1753 of the Revised Statutes of the United States, in the Civil Service Act of January 16, 1883, and the Executive Orders of June 27, 1906, and of November 26, 1909. The excellent results which have attended the partial application of Civil Service principles to the diplomatic and consular services are an earnest of the benefit to be wrought by a wider and more permanent extension of those principles to both branches of the foreign service. The marked improvement in the consular service during the four years since the principles of the Civil Service Act were applied to that service in a limited way, and the good results already noticeable from a similar application of civil service principles to the diplomatic service a year ago, convince me that the enactment into law of the general principles of the existing executive regulations could not fail to effect further improvement of both branches of the foreign service, offering as it would by its assurance of permanency of tenure and promotion on merit, an inducement for the entry of capable young men into the service and an incentive to those already in to put forth their best efforts to attain and maintain that degree of efficiency which the interests of our international relations and commerce demand. During many years past appeals have been made from time to time to Congress in favor of Government ownership of embassy and legation premises abroad. The arguments in favor of such ownership have been many and oft repeated and are well known to the Congress. The acquisition by the Government of suitable residences and offices for its diplomatic officers, especially in the capitals of the Latin-American States and of Europe, is so important and necessary to an improved diplomatic service that I have no hesitation in urging upon the Congress the passage of some measure similar to that favorably reported by the House Committee on Foreign Affairs on February 14, 1910 (Report No. 438), that would authorize the gradual and annual acquisition of premises for diplomatic use. The work of the Diplomatic Service is devoid of partisanship; its importance should appeal to every American citizen and should receive the generous consideration of the Congress. 
 Every effort has been made by each department chief to reduce the estimated cost of his department for the ensuing fiscal year ending June 30, 1912. I say this in order that Congress may understand that these estimates thus made present the smallest sum which will maintain the departments, bureaus, and offices of the Government and meet its other obligations under existing law, and that a cut of these estimates would result in embarrassing the executive branch of the Government in the performance of its duties. This remark does not apply to the river and harbor estimates, except to those for expenses of maintenance and the meeting of obligations under authorized contracts, nor does it apply to the public building bill nor to the navy building program. Of course, as to these Congress could withhold any part or all of the estimates for them without interfering with the discharge of the ordinary obligations of the Government or the performance of the functions of its departments, bureaus, and offices. The final estimates for the year ending June 30, 1912, as they have been sent to the Treasury, on November 29 of this year, for the ordinary expenses of the Government, including those for public buildings, rivers and harbors, and the navy building program, amount to $630,494,013.12. This is $52,964,887.36 less than the appropriations for the fiscal year ending June 30, 1911. It is $16,883,153.44 less than the total estimates, including supplemental estimates submitted to Congress by the Treasury for the year 1911, and is $5,574,659.39 less than the original estimates submitted by the Treasury for 1911. These figures do not include the appropriations for the Panama Canal, the policy in respect to which ought to be, and is, to spend as much each year as can be economically and effectively expended in order to complete the Canal as promptly as possible, and, therefore, the ordinary motive for cutting down the expense of the Government does not apply to appropriations for this purpose. It will be noted that the estimates for the Panama Canal for the ensuing year are more than fifty-six millions of dollars, an increase of twenty millions over the amount appropriated for this year--a difference due to the fact that the estimates for 1912 include something over nineteen millions for the fortification of the Canal. Against the estimated expenditures of $630,494,013.12, the Treasury has estimated receipts for next year $680,000,000, making a probable surplus of ordinary receipts over ordinary expenditures of about $50,000,000. 
A table showing in detail the estimates and the comparisons referred to follows. The Treasury Department is one of the original departments of the Government. With the changes in the monetary system made from time to time and with the creation of national banks, it was thought necessary to organize new bureaus and divisions which were added in a somewhat haphazard way and resulted in a duplication of duties which might well now be ended. This lack of system and economic coordination has attracted the attention of the head of that Department who has been giving his time for the last two years, with the aid of experts and by consulting his bureau chiefs, to its reformation. He has abolished four hundred places in the civil service without at all injuring its efficiency. Merely to illustrate the character of the reforms that are possible, I shall comment on some of the specific changes that are being made, or ought to be made by legislative aid. The auditing system in vogue is as old as the Government and the methods used are antiquated. There are six Auditors and seven Assistant Auditors for the nine departments, and under the present system the only function which the Auditor of a department exercises is to determine, on accounts presented by disbursing officers, that the object of the expenditure was within the law and the appropriation made by Congress for the purpose on its face, and that the calculations in the accounts are correct. He does not examine the merits of the transaction or determine the reasonableness of the price paid for the articles purchased, nor does he furnish any substantial check upon disbursing officers and the heads of departments or bureaus with sufficient promptness to enable the Government to recoup itself in full measure for unlawful expenditure. A careful plan is being devised and will be presented to Congress with the recommendation that the force of auditors and employees under them be greatly reduced, thereby effecting substantial economy. But this economy will be small compared with the larger economy that can be effected by consolidation and change of methods. The possibilities in this regard have been shown in the reduction of expenses and the importance of methods and efficiency in the office of the Auditor for the Post Office Department, who, without in the slightest degree impairing the comprehensiveness and efficiency of his work, has cut down the expenses of his office $120,000 a year. Again, in the collection of the revenues, especially the customs revenues, a very great improvement has been effected, and further improvements are contemplated. By the detection of frauds in weighing sugar, upwards of $3,400,000 have been recovered from the beneficiaries of the fraud, and an entirely new system free from the possibilities of such abuse has been devised. The Department has perfected the method of collecting duties at the Port of New York so as to save the Government upwards of ten or eleven million dollars; and the same spirit of change and reform has been infused into the other customs offices of the country. The methods used at many places are archaic. There would seem to be no reason at all why the Surveyor of the Port, who really acts for the Collector, should not be a subordinate of the Collector at a less salary and directly under his control, and there is but little reason for the existence of the Naval Officer, who is a kind of local auditor. His work is mainly an examination of accounts which is conducted again in Washington and which results in no greater security to the Government. The Naval Officers in the various ports are Presidential appointees, many of them drawing good salaries, and those offices should be abolished or with reduced force made part of the central auditing system. There are entirely too many customs districts and too many customs collectors. These districts should be consolidated and the collectors in charge of them, who draw good salaries, many of them out of proportion to the collections made, should be abolished or treated as mere branch offices, in accordance with the plan of the Treasury Department, which will be presented for the consideration of Congress. As an illustration, the cost of collecting $1 of revenue at typical small ports like the port of York, Me., was $50.04. At the port of Annapolis, Md., it cost $309.41 to collect $1 of revenue; at Natchez, $52.76; at Alexandria. Va., $122.49. It is not essential to the preventing of smuggling that customs districts should be increased in number. The violation of the customs laws can be quite as easily prevented, and much more economically, by the revenue-cutter service and by the use of the special agent traveling force of the Treasury Department. A reorganization of the special customs agents has been perfected with a view to retaining only those who have special knowledge of the customs laws, regulations, and usual methods of evasion, and with this improvement, there will be no danger to the Government from the recommended consolidation and abolition of customs districts. 
An investigation of the appraising system now in vogue in New York City has shown a sacrifice of the interests of the Government by under-appraisement, which is in the course of being remedied by reorganization and the employment of competent experts. Prosecutions have been instituted growing out of the frauds there discovered and are now awaiting hearing in the Federal Courts. Very great improvements have been made in respect to the mints and assay offices. Diminished appropriations have been asked for those whose continuance is unnecessary, and this year's estimate of expenses is $326,000 less than two years ago. There is an opportunity for further saving in the abolition of several mints and assay offices that have now become unnecessary. Modern machinery has been installed there, more and better work has been done, and the appropriations have been consequently diminished. In the Bureau of Engraving and Printing, great economies have been effected. Useless divisions have been abolished with the result of saving $440,000 this year in the total expenses of the Bureau despite increased business. The Treasurer's office and that of the Division of Public Moneys in part cover the same functions and this is also true of the office of the Register and the Division of Loans and Currency. Plans for the elimination of the duplication in these offices will be presented to Congress. The office of the Comptroller of the Currency is one most important in the preservation of proper banking methods in the national banking system of the United States, and the present Comptroller has impressed his subordinates with the necessity of so conducting their investigations as to establish the principle that every bank failure is unnecessary because proper inspection and notice of threatening conditions to the responsible directors and officers can prevent it. In our public buildings we still suffer from the method of appropriation, which has been so much criticized in connection with our rivers and harbors. Some method should be devised for controlling the supply of public buildings, so that they will harmonize with the actual needs of the Government. Then, when it comes 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 Government. Post-Office buildings which are in effect warehouses for the economical handling of transportation of thousands of tons of mail have been made monumental structures, and often located far from the convenient and economical spot. In the actual construction of the buildings, a closer scrutiny of the methods employed by the Government architects or by architects employed by the Government have resulted in decided economies. It is hoped that more time will give opportunity for a more thorough reorganization. The last public building bill carried authorization for the ultimate expenditure of $33,011,500 and I approved it because of the many good features it contained, just as I approved the river and harbor bill, but it was drawn upon a principle that ought to be abandoned. It seems to me that the wiser method of preparing a public building bill would be the preparation of a report by a commission of Government experts whose duty it should be to report to Congress the Government's needs in the way of the construction of public buildings in every part of the country, just as the Army Engineers make report with reference to the utility of proposed improvements in rivers and harbors, with the added function which I have recommended for the Army Engineers of including in their recommendation the relative importance of the various projects found to be worthy of approval and execution.  . As the Treasury Department is the one through which the income of the Government is collected and its expenditures are disbursed, this seems a proper place to consider the operation of the existing tariff bill, which became a law August 6, 1909. As an income-producing measure, the existing tariff bill has never been exceeded by any customs bill in the history of the country. The corporation excise tax, proportioned to the net income of every business corporation in the country, has worked well. The tax has been easily collected. Its prompt payment indicates that the incidence of the tax has not been heavy. It offers, moreover, an opportunity for knowledge by the Government of the general condition and business of all corporations, and that means by far the most important part of the business of the country. In the original act provision was made for the publication of returns. This provision was subsequently amended by Congress, and the matter left to the regulation of the President. I have directed the issue of the needed regulations, and have made it possible for the public generally to know from an examination of the record, the returns of all corporations, the stock of which is listed on any public stock exchange or is offered for sale to the general public by advertisement or otherwise. The returns of those corporations whose stock is not so listed or offered for sale are directed to be open to the inspection and examination of creditors and stockholders of the corporation whose record is sought. The returns of all corporations are subject to the inspection of any government officer or to the examination of any court, in which the return made by the corporation is relevant and competent evidence. The schedules of the rates of duty in the Payne tariff act have been subjected to a great deal of criticism, some of it just, more of it unfounded, and to much misrepresentation. The act was adopted in pursuance 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 producing the imported article abroad and the cost of producing it at home, together with such addition to that difference as might give a reasonable profit to the home producer. The chief criticism of this tariff is a charge that in respect to a number of the schedules the declared measure was not followed, but a higher difference retained or inserted by way of undue discrimination in favor of certain industries and manufactures. Little, if any, of the criticism of the tariff has been directed against the protective principle above stated. The time in which the tariff was prepared undoubtedly was so short as to make it impossible for the Congress and its experts to acquire all the information necessary strictly to conform to the declared measure. In order to avoid criticism of this kind in the future and for the .purpose of more nearly conforming to the party promise, Congress at its last session made provision at my request for the continuance of a board created under the authority of the maximum and minimum clause of the tariff bill, and authorized this board to expend the money appropriated under my direction for the ascertainment of the cost of production at home and abroad of the various articles included in the schedules of the tariff. The tariff board thus appointed and authorized has been diligent in preparing itself for the necessary investigations. The hope of those who have advocated the use of this board for tariff purposes is that the question of the rate of a duty imposed shall become more of a business question and less of a political question, to be ascertained by experts of long training and accurate' knowledge. The halt in business and the shock to business, due to the announcement that a new tariff bill is to be prepared and put in operation, will be avoided by treating the schedules one by one as occasion shall arise for a change in the rates of each, and only after a report upon the schedule by the tariff board competent to make such report. It is not likely that the board will be able to make a report during the present session of Congress on any of the 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 opening of the new Congress, or at least during the session of that Congress, to bring to its attention the facts in regard to those schedules in the present tariff that may prove to need amendment. The carrying out of this plan, of course, involves the full cooperation of Congress in limiting the consideration in tariff matters to one schedule at a time, because if a proposed amendment to a tariff bill is to involve a complete consideration of all the schedules and another revision, then we shall only repeat the evil from which the business of this country has in times past suffered most grievously by stagnation and uncertainty, pending a resettlement of a law affecting all business directly or indirectly. I can not too much emphasize the importance and benefit of the plan above proposed for the treatment of the tariff. It facilitates the removal of noteworthy defects in an important law without a disturbance of business prosperity, which is even more important to the happiness and the comfort of the people than the elimination of instances of injustice in the tariff. The inquiries which the members of the Tariff Board made during the last summer into the methods pursued by other Governments with reference to the fixing of tariffs and the determination of their effect upon trade, show that each Government maintains an office or bureau, the officers and employees of which have made their life work the study of tariff matters, of foreign and home prices and cost of articles imported, and the effect of the tariff upon trade, so that whenever a change is thought to be necessary in the tariff law this office is the source of the most reliable information as to the propriety of the change and its effect. I am strongly convinced that we need in this Government just such an office, and that it can be secured by making the Tariff Board already appointed a permanent tariff commission, with such duties, powers, and emoluments as it may seem wise to Congress to give. It has been proposed to enlarge the board from three to five. The present number is convenient, but I do not know that an increase of two members would be objectionable. Whether or not the protective policy is to be continued, and the degree of protection to be accorded to our home industries, are questions which the people must decide through their chosen representatives; but whatever policy is adopted, it is clear that the necessary legislation should be based on an impartial, thorough, and continuous study of the facts. The method of impartial scientific study by experts as a preliminary to legislation, which I hope to see ultimately adopted as our fixed national policy with respect to the tariff, rivers and harbors, waterways, and public buildings, is also being pursued by the nonpartisan Monetary Commission of Congress. An exhaustive and most valuable study of the banking and currency systems of foreign countries has been completed. A comparison of the business methods and institutions of our powerful and successful commercial rivals with our own is sure to be of immense value. I urge upon Congress the importance of a nonpartisan and disinterested study and consideration of our banking and currency system. It is idle to dream of commercial expansion, and of the development of our national trade on a scale that measures up to our matchless opportunities, unless we can lay a solid foundation in a sound and enduring banking and currency system. The problem is not partisan, is not sectional--it is national. The War Department has within its jurisdiction the management of the Army, and, in connection therewith, the coast defenses; the government of the dependencies of the Philippines and of Porto Rico; the recommendation of plans for the improvement of harbors and waterways, and their execution when adopted; and, by virtue of an executive order, the supervision of the construction of the Panama Canal. The Army of the United States is a small body compared with the total number of people for the preservation of whose peace and good order it is a last resource. The Army now numbers about 80,000 men, of whom about 18,000 are engaged in the Coast Artillery and detailed to the management and use of the guns in the forts and batteries that protect our coasts. The rest of the Army, or about 60,000, is the mobile part of our national forces and is divided into 31 regiments of infantry, including the Porto Rican regiment, 15 regiments of cavalry, 6 regiments of field artillery, a corps of ordnance, of engineers, and of signal, a quartermaster's department, a commissary department, and a medical corps. The general plan for an army of the United States at peace should be that of a skeleton organization with an excess of trained officers and thus capable of rapid enlargement by enlistments, to be supplemented in emergency by the national militia and a volunteer force. In some measure this plan has been adopted in the very large proportion of cavalry and field artillery as compared with infantry in the present army and on a peace basis. An infantry force can be trained in six months; a cavalry or a light artillery force not under one and one-half or two years; hence the importance of having ready a larger number of the more skilled soldiers. The militia system, for which Congress by the Constitution is authorized to provide, was developed by the so-called Dick law, under which the discipline, the tactics, the drill, the rank, the uniform, and the various branches of the militia are assimilated as far as possible to those of the Regular Army. Under the militia law, as the Constitution provides, the Governors of the States appoint the militia officers, but, by appropriations from Congress, States have been induced to comply with the rules of assimilation between the Regular Army and the militia, so that now there is a force, the efficiency of which differs in different States, which could be incorporated under a single command with the Regular Army, and which for some time each year receives the benefit of drill and maneuvers with conditions approximating actual military service, under the supervision of Regular Army officers. In the Army of the United States, in addition to the regular forces and the militia forces which may be summoned to the defense of the Nation by the President, there is also the volunteer force, which made up a very large part of the army in the Civil War, and which in any war of long continuance would become its most important constituent. There is an act which dates from the Civil War, known as the Volunteer Act, which makes provision for the enlistment of volunteers in the Army of the United States in time of war. This was found to be so defective in the Philippine War that a special act for the organization of volunteer regiments to take part in that war was adopted, and it was much better adapted to the necessities of the case. There is now pending in Congress a bill repealing the present Volunteer Act and making provision for the organization of volunteer forces in time of war, which is admirably adapted to meet the exigencies which would be then presented. The passage of the bill would not entail a dollar's expense upon the Government at this time, or in the future, until war comes, but when war does come the methods therein directed are in accordance with the best military judgment as to what they ought to be, and the act would prevent the necessity for the discussion of new legislation and the delays incident to its consideration and adoption. I earnestly urge the passage of this Volunteer Bill. I further recommend that Congress establish a commission to determine as early as practicable a comprehensive policy for the organization, mobilization and administration of the Regular Army, the organized militia, and the volunteer forces in the event of war. One of the great difficulties in the prompt organization and mobilization of militia and volunteer forces is the absence of competent officers of the rank of captain to teach the new army, by the unit of the company, the business of being soldiers and of taking care of themselves so as to render effective service. This need of army officers can only be supplied by provisions of law authorizing the appointment of a greater number of army officers than are needed to supply the commands of regular army troops now enlisted in the service. There are enough regular army officers to command the troops now enlisted, but Congress has authorized, and the Department has followed the example of Congress and exercised the authority conferred by detailing these army officers to duty other than that of the command of troops. For instance, there are a large number of army officers assigned to duty with military colleges or in colleges in which military training is given. Then a large number of officers are assigned to General Staff duty, and there are various other places to which army officers can be and are legally assigned, which take them away from their regiments and companies. In order that the militia of each State should be properly drilled and made more like the regular army, regular army officers should be detailed to assist the Adjutant-General of each State in the supervision of the state militia; but this is impossible unless provision is made by Congress for a very considerable increase in the number of company and field officers of the Army. A bill is pending in Congress for this purpose, and I earnestly hope that, in the interest of the proper development of a republican army, an army, small in the time of peace but possible of prompt and adequate enlargement in time of war, shall become possible under the laws of the United States. A bill, the strong argument for which can be based on the ground quite similar to that of the increased officers bill, is a bill for the increase of sixty in the Army Engineers. The Army Engineers are largely employed in the expenditure of the moneys appropriated for the improvement of rivers and harbors and in the construction of the Panama Canal. This, in addition to their military duties, which include the building of fortifications both on our coasts and in our dependencies, requires many more engineers than the Army has, and public works, civil and military, are, therefore, much delayed. I earnestly recommend the passage of this bill, which passed the House at the last session and is now pending in the Senate.  . I have directed that the estimates for appropriation for the improvement of coast defenses in the United States should be reduced to a minimum, while those for the completion of the needed fortifications at Corregidor in the Philippine Islands and at Pearl Harbor in the Hawaiian Islands should be expedited as much as possible. The proposition to make Olongapo and Subig Bay the naval base for the Pacific was given up, and it is to be treated merely as a supply station, while the fortifications in the Philippines are to be largely confined to Corregidor Island and the adjacent islands which command entrance to Manila Bay and which are being rendered impregnable from land and sea attack. The Pacific Naval base has been transferred to Pearl Harbor in the Hawaiian Islands. This necessitates the heavy fortification of the harbor and the establishment of an important military station near Honolulu. I urge that all the estimates made by the War Department for these purposes be approved by Congressional appropriation. During the last summer, at my request, the Secretary of War visited the Philippine Islands and has described his trip in his report. He found the Islands in a state of tranquillity and growing prosperity, due largely to the change in the tariff laws, which has opened the markets of America to the products of the Philippines, and has opened the Philippine markets to American manufactures. The rapid increase in the trade between the two countries is shown in the following table: 
[Exclusive of gold and silver.] NOTE.--Latest monthly returns show exports for the year ending August, 1910, to the United States $20,035,902, or 49 per cent of the $41,075,738 total, against 031,275 to the United States, or 34 per cent of the $32,183,871 total for the year ending August, 1909. 
[Exclusive of gold and silver and government supplies.] NOTE.--Latest monthly returns show imports for the year ending August, 1910, from the United States $11,615,982, or 30 per cent of the $39,025,667 total, against $5,193,419 from the United States, or 18 per cent of the $28,948,011 total for the year ending August, 1909. The year has been one of prosperity and progress in Porto Rico. Certain political changes are embodied in the bill "To Provide a Civil Government for Porto Rico and for other Purposes," which passed the House of Representatives on June 15, 1910, at the last session of Congress, and is now awaiting the action of the Senate. 
The importance of those features of this bill relating to public health and sanitation can not be overestimated. The removal from politics of the judiciary by providing for the appointment of the municipal judges is excellent, and I recommend that a step further be taken by providing therein for the appointment of secretaries and marshals of these courts. The provision in the bill for a partially elective senate, the number of elective members being progressively increased, is of doubtful wisdom, and the composition of the senate as provided in the bill when introduced in the House, seems better to meet conditions existing in Porto Rico. This is an important measure, and I recommend its early consideration and passage. I have already expressed my opinion to Congress in respect to the character of the river and harbor bills which should be enacted into law; and I have exercised as much power as I could under the law in directing the Chief of Engineers to make his report to Congress conform to the needs of the committee framing such a bill in determining which of the proposed improvements is the more important and ought to be completed first, and promptly. At the instance of Colonel Goethals, the Army Engineer officer in charge of the work on the Panama Canal, I have just made a visit to the Isthmus to inspect the work done and to consult with him on the ground as to certain problems which are likely to arise in the near future. The progress of the work is most satisfactory. If no unexpected obstacle presents itself, the canal will be completed well within the time fixed by Colonel Goethals, to wit, January 1, 1915, and within the estimate of cost, $375,000,000. Press reports have reached the United States from time to time giving accounts of slides of earth of very large yardage in the Culebra Cut and elsewhere along the line, from which it might be inferred that the work has been much retarded and that the time of completion has been necessarily postponed. The report of Doctor Hayes, of the Geological Survey, whom I sent within the last month to the Isthmus to make an investigation, shows that this section of the Canal Zone is composed of sedimentary rocks of rather weak structure and subject to almost immediate disintegration when exposed to the air. Subsequent to the deposition of these sediments, igneous rocks, harder and more durable, have been thrust into them, and being cold at the time of their intrusion united but indifferently with the sedimentary rock at the contacts. The result of these conditions is that as the cut is deepened, causing unbalanced pressures, slides from the sides of the cut have occurred. These are in part due to the flowing of surface soil and decomposed sedimentary rocks upon inclined surfaces of the underlying undecomposed rock and in part by the crushing of structurally weak beds under excessive pressure. These slides occur on one side or the other of the cut through a distance of 4 or 5 miles, and now that their character is understood, allowance has been made in the calculations of yardage for the amount of slides which will have to be removed and the greater slope that will have to be given to the bank in many places in order to prevent their recurrence. Such allowance does not exceed ten millions of yards. Considering that the number of yards removed from this cut on an average of each month through the year is 1,300,000, and that the total remaining to be excavated, including slides, is about 30,000,000 yards, it is seen that this addition to the excavation does not offer any great reason for delay. While this feature of the material to be excavated in the cut will not seriously delay or obstruct the construction of a canal of the lock type, the increase of excavation due to such slides in the cut made 85 feet deeper for a sea-level canal would certainly have been so great as to delay its completion to a time beyond the patience of the American people. Among questions arising for present solution is whether the Canal shall be fortified. I have already stated to the Congress that I strongly favor fortification and I now reiterate this opinion and ask your consideration of the subject in the light of the report already before you made by a competent board. If, in our discretion, we believe modern fortifications to be necessary to the adequate protection and policing of the Canal, then it is our duty to construct them. We have built the Canal. It is our property. By convention we have indicated our desire for, and indeed undertaken, its universal and equal use. It is also well known that one of the chief objects in the construction of the Canal has been to increase the military effectiveness of our Navy. Failure to fortify the Canal would make the attainment of both these aims depend upon the mere moral obligations of the whole international public--obligations which we would be powerless to enforce and which could never in any other way be absolutely safeguarded against a desperate and irresponsible enemy. Another question which arises for consideration and possible legislation is the question of tolls in the Canal. This question is necessarily affected by the probable tonnage which will go through the Canal. It is all a matter of estimate, but one of the government commission in 1900 investigated the question and made a report. He concluded that the total tonnage of the vessels employed in commerce that could use the Isthmian Canal in 1914 would amount to 6,843,805 tons net register, and that this traffic would increase 25.1 per cent per decade; that it was not probable that all the commerce included in the totals would at once abandon the routes at present followed and make use of the new Canal, and that it might take some time, perhaps two years, to readjust trade with reference to the new conditions which the Canal would establish. He did not include, moreover, the tonnage of war vessels, although it is to be inferred that such vessels would make considerable use of the Canal. In the matter of tolls he reached the conclusion that a dollar a net ton would not drive business away from the Canal, but that a higher rate would do so. In determining what the tolls should be we certainly ought not to insist that they should at once amount to enough to pay the interest on the investment of $400,000,000 which the United States has made in the construction of the Canal. We ought not to do this, first, because the benefit to be derived by the United States from this expenditure is not to be measured solely by a return upon the investment. If it were, then the construction might well have been left to private enterprise. It was because an adequate return upon the money invested could not be expected immediately, or in the near future, and because there were peculiar political advantages to be derived from the construction of the Canal that it fell to the Government to advance the money and perform the work. In addition to the benefit to our naval strength, the Canal greatly increases the trade facilities of the United States. It will undoubtedly cheapen the rates of transportation in all freight between the Eastern and Western seaboard. Then, if we are to have a world canal, and if we are anxious that the world's trade shall use it, we must recognize that we have an active competitor in the Suez Canal and that there are other means of carriage between the two oceans--by the Tehuantepec Railroad and by other railroads and freight routes in Central America. In all these cases the question whether the Panama Canal is to be used and its tonnage increased will be determined mainly by the charge for its use. My own impression is that the tolls ought not to exceed $1 per net ton. On January 1, 1911, the tolls in the Suez Canal are to be 7 francs and 25 centimes for I net ton by Suez Canal measurement, which is a modification of Danube measurement A dollar a ton will secure under the figures above a gross income from the Panama Canal of nearly $7,000,000. The cost of maintenance and operation is estimated to exceed $3,000,000. Ultimately, of course, with the normal increase in trade, we hope the income will approximate the interest charges upon the investment. The inquiries already made of the Chief Engineer of the Canal show that the present consideration of this question is necessary in order that the commerce of the world may have time to adjust itself to the new conditions resulting from the opening of this new highway. On the whole I should recommend that within certain limits the President be authorized to fix the tolls of the Canal and adjust them to what seems to be commercial necessity. The next question that arises is as to the maintenance, management, and general control of the canal after its completion. It should be premised that it is an essential part of our navy establishment to have the coal, oil and other ship supplies, a dry dock, and repair shops, conveniently located with reference to naval vessels passing through the canal. Now, if the Government, for naval purposes, is to undertake to furnish these conveniences to the navy, and they are conveniences equally required by commercial vessels, there would seem to be strong reasons why the Government should take over and include in its management the furnishing, not only to the navy but to the public, dry-dock and repair-shop facilities, and the sale of coal, oil, and other ship supplies. The maintenance of a lock canal of this enormous size in a sparsely populated country and in the tropics, where the danger from disease is always present, requires a large and complete and well-trained organization with full police powers, exercising the utmost care. The visitor to the canal who is impressed with the wonderful freedom from tropical diseases on the Isthmus must not be misled as to the constant vigilance that is needed to preserve this condition. The vast machinery of the locks, the necessary amount of dredging, the preservation of the banks of the canal from slides, the operation and the maintenance of the equipment of the railway--will all require a force, not, of course, to be likened in any way to the present organization for construction, but a skilled body of men who can keep in a state of usefulness this great instrument of commerce. Such an organization makes it easy to include within its functions the furnishing of dry-dock, fuel, repairs and supply facilities to the trade of the world. These will be more essential at the Isthmus of Panama than they are at Port Said or Suez, because there are no depots for coal, supplies, and other commercial necessities within thousands of miles of the Isthmus. Another important reason why these ancillary duties may well be undertaken by the Government is the opportunity for discrimination between patrons of the canal that is offered where private concessions are granted for the furnishing of these facilities. Nothing would create greater prejudice against the canal than the suspicion that certain lines of traffic were favored in the furnishing of supplies or that the supplies were controlled by any large interest that might have a motive for increasing the cost of the use of the canal. It may be added that the termini are not ample enough to permit the fullest competition in respect to the furnishing of these facilities and necessities to the world's trade even if it were wise to invite such competition and the granting of the concession would necessarily, under these circumstances, take on the appearance of privilege or monopoly. I can not close this reference to the canal without suggesting as a wise amendment to the interstate commerce law a provision prohibiting interstate commerce railroads from owning or controlling ships engaged in the trade through the Panama Canal. I believe such a provision may be needed to save to the people of the United States the benefits of the competition in trade between the eastern and western seaboards which this canal was constructed to secure. The duties of the Department of Justice have been greatly increased by legislation of Congress enacted in the interest of the general welfare of the people and extending its activities into avenues plainly within its constitutional jurisdiction, but which it has not been thought wise or necessary for the General Government heretofore to occupy. I am glad to say that under the appropriations made for the Department, the Attorney-General has so improved its organization that a vast amount of litigation of a civil and criminal character has been disposed of during the current year. This will explain the necessity for slightly increasing the estimates for the expenses of the Department. His report shows the recoveries made on behalf of the Government, of duties fraudulently withheld, public lands improperly patented, fines and penalties for trespass, prosecutions and convictions under the antitrust law, and prosecutions under the interstate-commerce law. I invite especial attention to the prosecutions under the Federal law of the so-called "bucket shops," and of those schemes to defraud in which the use of the mail is an essential part of the fraudulent conspiracy, prosecutions which have saved ignorant and weak members of the public and are saving them hundreds of millions of dollars. The violations of the antitrust law present perhaps the most important litigation before the Department, and the number of cases filed shows the activity of the Government in enforcing that statute. In a special message last year I brought to the attention of Congress the propriety and wisdom of enacting a general law providing for the incorporation of industrial and other companies engaged in interstate commerce, and I renew my recommendation in that behalf. I invite the attention of Congress to the great number of claims which, at the instance of Congress, have been considered by the Court of Claims and decided to be valid claims against the Government. The delay that occurs in the payment of the money due under the claims injures the reputation of the Government as an honest debtor, and I earnestly recommend that those claims which come to Congress with the judgment and approval of the Court of Claims should be promptly paid. One great crying need in the United States is cheapening the cost of litigation by simplifying judicial procedure and expediting final judgment. Under present conditions the poor man is at a woeful disadavantage in a legal contest with a corporation or a rich opponent. The necessity for the reform exists both in the United States courts and in all State courts. In order to bring it about, however, it naturally falls to the General Government by its example to furnish a model to all States. A legislative commission appointed by joint resolution of Congress to revise the procedure in the United States courts has as yet made no report. Under the law the Supreme Court of the United States has the power and is given the duty to frame the equity rules of procedure which are to obtain in the Federal courts of first instance. In view of the heavy burden of pressing litigation which that Court has had to carry, with one or two of its members incapacitated through ill health, it has not been able to take up problems of improving the equity procedure, which has practically remained the same since the organization of the Court in 1789. It is reasonable to expect that with all the vacancies upon the Court filled, it will take up the question of cheapening and simplifying the procedure in equity in the courts of the United States. The equity business is much the more important in the Federal courts, and I may add much the more expensive. I am strongly convinced that the best method of improving judicial procedure at law is to empower the Supreme Court to do it through the medium of the rules of the court, as in equity. This is the way in which it has been done in England, and thoroughly done. The simplicity and expedition of procedure in the English courts today make a model for the reform of other systems. 
Several of the Lord Chancellors of England and of the Chief Justices have left their lasting impress upon the history of their country by their constructive ability in proposing and securing the passage of remedial legislation effecting law reforms. I can not conceive any higher duty that the Supreme Court could perform than in leading the way to a simplification of procedure in the United States courts. No man ought to have, as a matter of right, a review of his case by the Supreme Court. He should be satisfied by one hearing before a court of first instance and one review by a court of appeals. The proper and chief usefulness of a Supreme Court, and especially of the Supreme Court of the United States, is, in the cases which come before it, so to expound the law, and especially the fundamental law -- the Constitution -- as to furnish precedents for the inferior courts in future litigation and for the executive officers in the construction of statutes and the performance of their legal duties. Therefore, any provisions for review of cases by the Supreme Court that cast upon that Court the duty of passing on questions of evidence and the construction of particular forms of instruments, like indictments, or wills, or contracts, decisions not of general application or importance, merely clog and burden the Court and render more difficult its higher function, which makes it so important a part of the framework of our Government. The Supreme Court is now carrying an unnecessary burden of appeals of this kind, and I earnestly urge that it be removed. The statutes respecting the review by the Supreme Court of the United States of decisions of the Court of Appeals of the District of Columbia ought to be so amended as to place that court in the same position with respect to the review of its decisions as that of the various United States Circuit Courts of Appeals. The act of March 2, 1907, authorizing appeals by the Government from certain judgments in criminal cases where the defendant has not been put in jeopardy, within the meaning of the Constitution, should be amended so that such appeals should be taken to the Circuit Courts of Appeals instead of to the Supreme Court in all cases except those involving the construction of the Constitution or the constitutionality of a statute, with the same power in the Supreme Court to review on certiorari as is now exercised by that court over determinations of the several Circuit Courts of Appeals. Appeals in copyright cases should reach final judgment in the courts of appeals instead of the Supreme Court as now. The decision of the courts of appeals should be made final also in all cases wherein jurisdiction rests on both diverse citizenship and the existence of a federal question, and not as now be reviewable in the Supreme Court when the case involves more than one thousand dollars. Appeals from the United States Court in Porto Rico should run to the Circuit Court of Appeals of the third circuit instead of to the Supreme Court. These suggested changes would, I am advised, relieve the Supreme Court of the consideration of about 100 cases annually. The American Bar Association has had before it the question of reducing the burden of litigation involved in reversals on review and new trials or re-hearings and in frivolous appeals in habeas corpus and criminal cases. Their recommendations have been embodied in bills now pending in Congress. The recommendations are not radical, but they will accomplish much if adopted into law, and I earnestly recommend the passage of the bills embodying them. I wish to renew my urgent recommendation made in my last Annual Message in favor of the passage of a law which shall regulate the issuing of injunctions in equity without notice in accordance with the best practice now in vogue in the courts of the United States. I regard this of especial importance, first because it has been promised, and second because it will deprive those who now complain of certain alleged abuses in the improper issuing of injunctions without notice of any real ground for further amendment and will take away all semblance of support for the extremely radical legislation they propose, which will be most pernicious if adopted, will sap the foundations of judicial power, and legalize that cruel social instrument, the secondary boycott. I further recommend to Congress the passage of the bill now pending for the increase in the salaries of the Federal Judges, by which the Chief Justice of the United States shall receive $17,500 and the Associate Justices of the Supreme Court $17,000; the Circuit Judges constituting the Circuit Court of Appeals shall receive $10,000, and the District Judges $9,000. These judges exercise a wise jurisdiction and their duties require of them a profound knowledge of the law, great ability in the dispatch of business, and care and delicacy in the exercise of their jurisdiction so as to avoid conflict whenever possible between the Federal and the State courts. The positions they occupy ought to be filled by men who have shown the greatest ability in their professional work at the bar, and it is the poorest economy possible for the Government to pay salaries so low for judicial service as not to be able to command the best talent of the legal profession in every part of the country. The cost of living is such, especially in the large cities, that even the salaries fixed in the proposed bill will enable the incumbents to accumulate little, if anything, to support their families after their death. Nothing is so important to the preservation of our country and its beloved institutions as the maintenance of the independence of the judiciary, and next to the life tenure an adequate salary is the most material contribution to the maintenance of independence on the part of our Judges. 
 At its last session Congress made provision for the establishment of savings banks by the Post-Office Department of this Government, by which, under the general control of trustees, consisting of the Postmaster-General, the Secretary of the Treasury and the Attorney-General, the system could be begun in a few cities and towns, and enlarged to cover within its operations as many cities and towns and as large a part of the country as seemed wise. The initiation and establishment of such a system has required a great deal of study on the part of the experts in the Post-Office and Treasury Departments, but a system has now been devised which is believed to be more economical and simpler in its operation than any similar system abroad. Arrangements have been perfected so that savings banks will be opened in some cities and towns on the 1st of January, and there will be a gradual extension of the benefits of the plan to the rest of the country. As I have said, the Post-Office Department is a great business department, and I am glad to note the fact that under its present management principles of business economy and efficiency are being applied. For many years there has been a deficit in the operations of the Post-Office Department which has been met by appropriation from the Treasury. The appropriation estimated for last year from the Treasury over and above the receipts of the Department was $17,500,000. I am glad to record the fact that of that $17,500,000 estimated for, $11,500,000 were saved and returned to the Treasury. The personal efforts of the Postmaster-General secured the effective cooperation of the thousands of postmasters and other postal officers throughout the country in carrying out his plans of reorganization and retrenchment. The result is that the Postmaster-General has been able to make his estimate of expenses for the present year so low as to keep within the amount the postal service is expected to earn. It is gratifying to report that the reduction in the deficit has been accomplished without any curtailment of postal facilities. On the contrary the service has been greatly extended during the year in all its branches. A principle which the Postmaster-General has recommended and sought to have enforced in respect to all appointments has been that those appointees who have rendered good service should be reappointed. This has greatly strengthened the interest of postmasters throughout the country in maintaining efficiency and economy in their offices, because they believed generally that this would secure for them a further tenure. Upon the recommendation of the Postmaster-General, I have included in the classified service all assistant postmasters, and I believe that this giving a secure tenure to those who are the most important subordinates of Postmasters will add much to the efficiency of their offices and an economical administration. A large number of the fourth-class postmasters are now in the classified service. I think it would be wise to put in the classified service the first, second, and third class postmasters. It is more logical to do this than to classify the fourth-class postmasters, for the reason that the fourth-class post-offices are invariably small, and the postmasters are necessarily men who must combine some other business with the postmastership, whereas the first, second, and third class postmasters are paid a sufficient amount to justify the requirement that they shall have no other business and that they shall devote their attention to their post-office duties. To classify first, second, and third class postmasters would require the passage of an act changing the method of their appointment so as to take away the necessity for the advice and consent of the Senate. I am aware that this is inviting from the Senate a concession in respect to its quasi executive power that is considerable, but I believe it to be in the interest of good administration and efficiency of service. To make this change would take the postmasters out of politics; would relieve Congressmen who now are burdened with the necessity of making recommendations for these places of a responsibility that must be irksome and can create nothing but trouble; and it would result in securing from postmasters greater attention to business, greater fidelity, and consequently greater economy and efficiency in the post-offices which they conduct. The unrestricted manner in which the franking privilege is now being used by the several branches of the Federal service and by Congress has laid it open to serious abuses, a fact clearly established through investigations recently instituted by the Department. While it has been impossible without a better control of franking to determine the exact expense to the Government of this practice, there can be no doubt that it annually reaches into the millions. It is believed that many abuses of the franking system could be prevented, and consequently a marked economy effected, by supplying through the agencies of the postal service special official envelopes and stamps for the free mail of the Government, all such envelopes and stamps to be issued on requisition to the various branches of the Federal service requiring them, and such records to be kept of all official stamp supplies as will enable the Post-Office Department to maintain a proper postage account covering the entire volume of free Government mail. As the first step in the direction of this reform, special stamps and stamped envelopes have been provided for use instead of franks in the free transmission of the official mail resulting from the business of the new postal savings system. By properly recording the issuance of such stamps and envelopes accurate records can be kept of the cost to the Government of handling the postal savings mail, which is certain to become an important item of expense and one that should be separately determined. In keeping with this plan it is hoped that Congress will authorize the substitution of special official stamps and stamped envelopes for the various forms of franks now used to carry free of postage the vast volume of Departmental and Congressional mail matter. During the past year methods of accounting similar to those employed in the most progressive of our business establishments have been introduced in the postal service and nothing has so impeded the Department's plan in this regard as the impossibility of determining with any exactness how far the various expenses of the postal service are increased by the present unrestricted use of the franking privilege. It is believed that the adoption of a more exact method of dealing with this problem as proposed will prove to be of tremendous advantage in the work of placing the postal service on a strictly businesslike basis. In my last Annual Message I invited the attention of Congress to the inadequacy of the postal rate imposed upon second-class mail matter in so far as that includes magazines, and showed by figures prepared by experts of the Post-Office Department that the Government was rendering a service to the magazines, costing many millions in excess of the compensation paid. An answer was attempted to this by the representatives of the magazines, and a reply was filed to this answer by the Post-Office Department. The utter inadequacy of the answer, considered in the light of the reply of the Post-Office Department, I think must appeal to any fair-minded person. Whether the answer was all that could be said in behalf of the magazines is another question. I agree that the question is one of fact; but I insist that if the fact is as the experts of the Post-Office Department show, that we are furnishing to the owners of magazines a service worth millions more than they pay for it, then justice requires that the rate should be increased. The increase in the receipts of the Department resulting from this change may be devoted to increasing the usefulness of the Department in establishing a parcels post and in reducing the cost of first-class postage to one cent. It has been said by the Postmaster-General that a fair adjustment might be made under which the advertising part of the magazine should be charged for at a different and higher rate from that of the reading matter. This would relieve many useful magazines that are not circulated at a profit, and would not shut them out from the use of the mails by a prohibitory rate. With respect to the parcels post, I respectfully recommend its adoption on all rural-delivery routes, and that 11 pounds--the international limit--be made the limit of carriage in such post, and this, with a view to its general extension when the income of the Post-Office will permit it and the Postal Savings Banks shall have been fully established. The same argument is made against the parcels post that was made against the postal savings bank--that it is introducing the Government into a business which ought to be conducted by private persons, and is paternalism. The Post-Office Department has a great plant and a great organization, reaching into the most remote hamlet of the United States, and with this machinery it is able to do a great many things economically that if a new organization were necessary it would be impossible to do without extravagant expenditure. That is the reason why the postal savings bank can be carried on at a small additional cost, and why it is possible to incorporate at a very inconsiderable expense a parcels post in the rural-delivery system. A general parcels post will involve a much greater outlay. 
 In the last annual report of the Secretary of the Navy and in my Annual Message, attention was called to the new detail of officers in the Navy Department by which officers of flag rank were assigned to duty as Aides to the Secretary in respect to naval operations, personnel, inspection, and material. This change was a substantial compliance with the recommendation of the Commission on Naval Reorganization, headed by Mr. Justice Moody, and submitted to President Roosevelt on February 26, 1909. Through the advice of this committee of line officers, the Secretary is able to bring about a proper coordination of all the branches of the naval department with greater military efficiency. The Secretary of the Navy recommends that this new organization be recognized by legislation and thus made permanent. I concur in the recommendation. The Secretary, in view of the conclusions of a recent Court of Inquiry on certain phases of Marine Corps administration, recommends that the Major-General Commandant of the Marine Corps be appointed for a four years' term, and that officers of the Adjutant and Inspector's department be detailed from the line. He also asks for legislation to improve the conditions now existing in the personnel of officers of the Navy, particularly with regard to the age and experience of flag officers and captains, and points out that it is essential to the highest efficiency of the Navy that the age of our officers be reduced and that flag officers, particularly, should gain proper experience as flag officers, in order to enable them to properly command fleets. I concur in the Secretary's recommendations. I commend to your attention the report of the Secretary on the change in the system of cost accounting in navy-yards, and also to the history of the naval supply fund and the present conditions existing in regard to that matter. Under previous practice and what now seems to have been an erroneous construction of the law, the supply fund of the navy was increased from $2,700,000 to something over $14,000,000, and a system of accounting was introduced which prevented the striking of a proper balance and a knowledge of the exact cost of maintaining the naval establishment. The system has now been abandoned and a Naval Supply Account established by law July 1, 1910. The Naval Supply fund of $2,700,000 is now on deposit in the Treasury to the credit of the Department. The Secretary recommends that the Naval Supply Account be made permanent by law and that the $2,700,000 of the naval supply fund be covered into the Treasury as unnecessary, and I ask for legislative authority to do this. This sum when covered into the Treasury will be really a reduction in the recorded Naval cost for this year. The estimates of the Navy Department are $5,000,000 less than the appropriations for the same purpose last year, and included in this is the building program of the same amount as that submitted for your consideration last year. It is merely carrying out the plan of building two battleships a year, with a few needed auxiliary vessels. I earnestly hope that this program will be adopted. The Secretary of the Navy has given personal examination to every navy-yard and has studied the uses of the navy-yards with reference to the necessities of our fleet. With a fleet considerably less than half the size of that of the British navy, we have shipyards more than double the number, and there are several of these shipyards, expensively equipped with modern machinery, which after investigation the Secretary of the Navy believes to be entirely useless for naval purposes. He asks authority to abandon certain of them and to move their machinery to other places where it can be made of use. In making these recommendations the Secretary is following directly along progressive lines which have been adopted in our great commercial and manufacturing consolidations in this country; that is, of dismantling unnecessary and inadequate plants and discontinuing their existence where it has been demonstrated that it is unprofitable to continue their maintenance at an expense not commensurate to their product. The Secretary points out that the most important naval base in the West Indies is Guantanamo, in the southeastern part of Cuba. Its geographical situation is admirably adapted to protect the commercial paths to the Panama Canal, and he shows that by the expenditure of less than half a million dollars, with the machinery which he shall take from other navy-yards, he can create a naval station at Guantanamo of sufficient size and equipment to serve the purpose of an emergency naval base. I earnestly join in the recommendation that he be given the authority which he asks. I am quite aware that such action is likely to arouse local opposition; but I conceive it to be axiomatic that in legislating in the interest of the Navy, and for the general protection of the country by the Navy, mere local pride or pecuniary interest in the establishment of a navy-yard or station ought to play no part. The recommendation of the Secretary is based upon the judgment of impartial naval officers, entirely uninfluenced by any geographical or sectional considerations. I unite with the Secretary in the recommendation that an appropriation be made to construct a suitable crypt at Annapolis for the custody of the remains of John Paul Jones.  . The complete success of our country in Arctic exploration should not remain unnoticed. For centuries there has been friendly rivalry in this field of effort between the foremost nations and between the bravest and most accomplished men. Expeditions to the unknown North have been encouraged by enlightened governments and deserved honors have been granted to the daring men who have conducted them. The unparalleled accomplishment of an American in reaching the North Pole, April 6, 1909, approved by critical examination of the most expert scientists, has added to the distinction of our navy, to which he belongs, and reflects credit upon his country. His unique success has received generous acknowledgment from scientific bodies and institutions of learning in Europe and America. I recommend fitting recognition by Congress of the great achievement of Robert Edwin Peary. 
 The Secretary of the Interior recommends a change of the law in respect to the procedure in adjudicating claims for lands, by which appeals can be taken from the decisions of the Department to the Court of Appeals of the District of Columbia for a judicial consideration of the rights of the claimant. This change finds complete analogy in the present provision for appeals from the decisions of the Commissioner of Patents. The judgments of the court in such cases would be of decisive value to land claimants generally and to the Department of the Interior in the administration of the law, would enable claimants to bring into Court the final consideration of issues as to the title to Government land and would, I think, obviate a good deal of the subsequent litigation that now arises in our Western courts. The bill is pending, I believe, in the House, having been favorably reported from the Committee on Public Lands, and I recommend its enactment. One of the difficulties in the Interior Department and in the Land Office has been the delays attendant upon the consideration by the Land Office and the Secretary of the Interior of claims for patents of public lands to individuals. I am glad to say that under the recent appropriations of the Congress and the earnest efforts of the Secretary and his subordinates, these arrears have been disposed of, and the work of the Department has been brought more nearly up to date in respect to the pending business than ever before in its history. Economies have been effected where possible without legislative assistance, and these are shown in the reduced estimates for the expenses of the Department during the current fiscal year and during the year to come.  . The subject of the conservation of the public domain has commanded the attention of the people within the last two or three years. There is no need for radical reform in the methods of disposing of what are really agricultural lands. The present laws have worked well. The enlarged homestead law has encouraged the successful farming of lands in the semiarid regions.  . The total sum already accumulated in the fund provided by the act for the reclamation of arid lands is about $69,449,058.76, and of this, all but $6,241,058.76 has been allotted to the various projects, of which there are thirty. Congress at its last session provided for the issuing of certificates of indebtedness not exceeding twenty millions of dollars, to be redeemed from the reclamation fund when the proceeds of lands sold and from the water-rents should be sufficient. Meantime, in accordance with the provisions of the law, I appointed a board of army engineers to examine the projects and to ascertain which are feasible and worthy of completion. That board has made a report upon the subject, which I shall transmit in a separate message within a few days. In September last conservation Congress was held at St. Paul, at which I delivered an address on the subject of conservation so far as it was within the jurisdiction and possible action of the Federal Government. In that address I assembled from the official records the statistics and facts as to what had been done in this behalf in the administration of my predecessor and in my own, and indicated the legislative measures which I believed to be wise in order to secure the best use, in the public interest, of what remains of our National domain. There was in this address a very full discussion of the reasons which led me to the conclusions stated. For the purpose of saving in an official record a comprehensive resume of the statistics and facts gathered with some difficulty in that address, and to avoid their repetition in the body of this message, I venture to make the address an accompanying appendix. The statistics are corrected to November 15th last. For the reasons stated in the conservation address, I recommend: First, that the limitation now imposed upon the Executive which forbids his reserving more forest lands in Oregon, Washington, Idaho, Montana, Colorado, and Wyoming, be repealed. Second, that the coal deposits of the Government be leased after advertisement inviting competitive bids, for terms not exceeding fifty years, with a minimum rental and royalties upon the coal mined, to be readjusted every ten or twelve years, and with conditions as to maintenance which will secure proper mining, and as to assignment which will prevent combinations to monopolize control of the coal in any one district or market. I do not think that coal measures under 2,500 acres of surface would be too large an amount to lease to any one lessee. The Secretary of the Interior thinks there are difficulties in the way of leasing public coal lands, which objections he has set forth in his report, the force of which I freely concede. I entirely approved his stating at length in his report the objections in order that the whole subject may be presented to Congress, but after a full consideration I favor a leasing system and recommend it. Third, that the law should provide the same separation in respect to government phosphate lands of surface and mineral rights that now obtains in coal lands and that power to lease such lands upon terms and limitations similar to those above recommended for coal leases, with an added condition enabling the Government to regulate, and if need be to prohibit, the export to foreign countries of the product. Fourth, that the law should allow a prospector for oil or gas to have the right to prospect for two years over a certain tract of government land, the right to be evidenced by a license for which he shall pay a small sum; and that upon discovery, a lease may be granted upon terms securing a minimum rental and proper royalties to the Government, and also the conduct of the oil or gas well in accord with the best method for husbanding the supply of oil in the district. The period of the leases should not be as long as those of coal, but they should contain similar provisions as to assignment to prevent monopolistic combinations. Fifth, that water-power sites be directly leased by the Federal Government, after advertisement and bidding, for not exceeding fifty years upon a proper rental and with a condition fixing rates charged to the public for units of electric power, both rental and rates to be readjusted equitably every ten years by arbitration or otherwise, with suitable provisions against assignment to prevent monopolistic combinations. Or, that the law shall provide that upon application made by the authorities of the State where the water-power site is situated, it may be patented to the State on condition that the State shall dispose of it under terms like those just described, and shall enforce those terms, or upon failure to comply with the condition the water-power site and all the plant and improvement on the site shall be forfeited and revert to the United States, the President being given the power to declare the forfeiture and to direct legal proceedings for its enforcement. Either of these methods would, I think, accomplish the proper public purpose in respect to water-power sites, but one or the other should be promptly adopted. I earnestly urge upon Congress that at this session general conservation legislation of the character indicated be adopted. At its last session this Congress took most useful and proper steps in the cause of conservation by allowing the Executive, through withdrawals, to suspend the action of the existing laws in respect to much of the public domain. I have not thought that the danger of disposing of coal lands in the United States under the present laws in large quantities was so great as to call for their withdrawal, because under the present provisions it is reasonably certain that the Government will receive the real value of the land. But, in respect to oil lands, or phosphate lands, and of gas lands in the United States, and in respect to coal lands in Alaska, I have exercised the full power of withdrawal with the hope that the action of Congress would follow promptly and prevent that tying up of the resources of the country in the western and less settled portion and in Alaska, which means stagnation and retrogression. The question of conservation is not a partisan one, and I sincerely hope that even in the short time of the present session consideration may be given to those questions which have now been much discussed, and that action may be taken upon them.  . With reference to the government of Alaska, I have nothing to add to the recommendations I made in my last message on the subject. I am convinced that the migratory character of the population, its unequal distribution, and its smallness of number, which the new census shows to be about 50,000, in relation to the enormous expanse of the territory, make it altogether impracticable to give to those people who are in Alaska to-day and may not be there a year hence, the power to elect a legislature to govern an immense territory to which they have a relation so little permanent. It is far better for the development of the territory that it be committed to a commission to be appointed by the Executive, with limited legislative powers sufficiently broad to meet the local needs, than to continue the present insufficient government with few remedial powers, or to make a popular government where there is not proper foundation upon which to rest it. The suggestion that the appointment of a commission will lead to the control of the government by corporate or selfish and exploiting interests has not the slightest foundation in fact. Such a government worked well in the Philippines, and would work well in Alaska, and those who are really interested in the proper development of that territory for the benefit of the people who live in it and the benefit of the people of the United States, who own it, should support the institution of such a government. I have been asked to recommend that the credit of the Government be extended to aid the construction of railroads in Alaska. I am not ready now to do so. A great many millions of dollars have already been expended in the construction of at least two railroads, and if laws be passed providing for the proper development of the resources of Alaska, especially for the opening up of the coal lands, I believe that the capital already invested will induce the investment of more capital, sufficient to complete the railroads building, and to furnish cheap coal not only to Alaska but to the whole Pacific coast. The passage of a law permitting the leasing of government coal lands in Alaska after public competition, and the appointment of a commission for the government of the territory, with enabling powers to meet the local needs, will lead to an improvement in Alaska and the development of her resources that is likely to surprise the country. Our national parks have become so extensive and involve so much detail of action in their control that it seems to me there ought to be legislation creating a bureau for their care and control. The greatest natural wonder of this country and the surrounding territory should be included in another national park. I refer to the Grand Canyon of the Colorado.  . The uniform policy of the Government in the matter of granting pensions to those gallant and devoted men who fought to save the life of the Nation in the perilous days of the great Civil War, has always been of the most liberal character. Those men are now rapidly passing away. The best obtainable official statistics show that they are dying at the rate of something over three thousand a month, and, in view of their advancing years, this rate must inevitably, in proportion, rapidly increase. To the man who risked everything on the field of battle to save the Nation in the hour of its direst need, we owe a debt which has not been and should not be computed in a begrudging or parsimonious spirit. But while we should be actuated by this spirit to the soldier himself, care should be exercised not to go to absurd lengths, or distribute the bounty of the Government to classes of persons who may, at this late day, from a mere mercenary motive, seek to obtain some legal relation with an old veteran now tottering on the brink of the grave. The true spirit of the pension laws is to be found in the noble sentiments expressed by Mr. Lincoln in his last inaugural address, wherein, in speaking of the Nation's duty to its soldiers when the struggle should be over, he said we should "care for him who shall have borne the battle, and for his widow and orphans." 
 The report of the Secretary of Agriculture invites attention to the stupendous value of the agricultural products of this country, amounting in all to $8,926,000,000 for this year. This amount is larger than that of 1909 by $305,000,000. The existence of such a crop indicates a good prospect for business throughout the country. A notable change for the better is commented upon by the Secretary in the fact that the South, especially in those regions where the boll weevil has interfered with the growth of cotton, has given more attention to the cultivation of corn and other cereals, so that there is a greater diversification of crops in the South than ever before--and all to the great advantage of that section. The report contains a most interesting account of the activities of the Department in its various bureaus, showing how closely the agricultural progress in this country is following along the lines of improvement recommended by the Department through its publications and the results of its experiment stations in every State, and by the instructions given through the agricultural schools aided by the Federal Government and following the general curriculum urged by the head and bureau chiefs of the Department. The activities of the Department have been greatly increased by the enactment of recent legislation, by the pure-food act, the meat-inspection act, the cattle-transportation act, and the act concerning the interstate shipment of game. This department is one of those the scope of whose action is constantly widening, and therefore it is impossible under existing legislation to reduce the cost and their estimates below those of preceding years. An interesting review of the results of an examination made by the Department into statistics and prices, shows that on the average since 1891, farm products have increased in value 72 per cent while the things which the farmer buys for use have increased but 12 per cent, an indication that present conditions are favorable to the farming community. I have already referred to the forests of the United States and their extent, and have urged, as I do again, the removal of the limitation upon the power of the Executive to reserve other tracts of land in six Western States in which withdrawal for this purpose is now forbidden. The Secretary of Agriculture gives a very full description of the disastrous fires that occurred during the last summer in the national forests. A drought more intense than any recorded in the history of the West had introduced a condition into the forests which made fires almost inevitable, and locomotive sparks, negligent campers, and in some cases incendiaries furnished the needed immediate cause. At one time the fires were so extended that they covered a range of a hundred miles, and the Secretary estimates that standing timber of the value of 25 millions of dollars was destroyed. Seventy-six persons in the employ of the Forest Service were killed and many more injured, and I regret to say that there is no provision in the law by which the expenses for their hospital treatment or of their interment could be met out of public funds. The Red Cross contributed a thousand dollars, and the remainder of the necessary expenses was made up by private contribution, chiefly from the force of the Forest Service and its officials. I recommend that suitable legislation be adopted to enable the Secretary of Agriculture to meet the moral obligations of the Government in this respect. The specific fund for fighting fires was only about $135,000, but there existed discretion in the Secretary in case of an emergency to apply other funds in his control to this purpose, and he did so to the extent of nearly a million of dollars, which will involve the presentation of a deficiency estimate for the current fiscal year of over $900,000. The damage done was not therefore due to the lack of an appropriation by Congress available to meet the emergency, but the difficulty of fighting it lay in the remote points where the fires began and where it was impossible with the roads and trails as they now exist promptly to reach them. Proper protection necessitates, as the Secretary points out, the expenditure of a good deal more money in the development of roads and trails in the forests, the establishment of lookout stations, and telephone connection between them and places where assistance can be secured.  . The amount of reforestation shown in the report of the Forest Service--only about 15,000 acres as compared with the 150 millions of acres of national forests--seems small, and I am glad to note that in this regard the Secretary of Agriculture and the chief of the Forest Service are looking forward to far greater activity in the use of available Government land for this purpose. Progress has been made in learning by experiment the best methods of reforesting. Congress is appealed to now by the Secretary of Agriculture to make the appropriations needed for enlarging the usefulness of the Forest Service in this regard. I hope that Congress will approve and adopt the estimate of the Secretary for this purpose. The Secretary of the Department of Commerce and Labor has had under his immediate supervision the application of the merit system of promotion to a large number of employees, and his discussion of this method of promotions based on actual experience, I commend to the attention of Congress. The taking of the census has proceeded with promptness and efficiency. The Secretary believes, and I concur, that it will be more thorough and accurate than any census which has heretofore been taken, but it is not perfect. The motive that prompts men with a false civic pride to induce the padding of census returns in order to increase the population of a particular city has been strong enough to lead to fraud in respect to a few cities in this country, and I have directed the Attorney-General to proceed with all the vigor possible against those who are responsible for these frauds. They have been discovered and they will not interfere with the accuracy of the census, but it is of the highest importance that official inquiry of this sort should not be embarrassed by fraudulent conspiracies in some private or local interest. The reorganization of the Light-House Board has effected a very considerable saving in the administration, and the estimates for that service for the present year are $428,000 less than for the preceding year. In addition, three tenders, for which appropriations were made, are not being built because they are not at present needed for the service. The Secretary is now asking for a large sum for the addition of lights and other aids to the commerce of the seas, including a number in Alaska. The trade along that coast is becoming so important that I respectfully urge the necessity for following his recommendation. The Commissioner of Corporations has just completed the first part of a report on the lumber industry in the United States. This part does not find the existence of a trust or combination in the manufacture of lumber. The Commissioner does find, however, a condition in the ownership of the standing timber of the United States, other than the Government timber, that calls for serious attention. The direct investigation made by the Commissioner covered an area which contains 80 per cent of the privately owned timber of the country. His report shows that one-half of the timber in this area is owned by 200 individuals and corporations; that 14 per cent is owned by 3 corporations, and that there is very extensive interownership of stock, as well as other circumstances, all pointing to friendly relations among those who own a majority of this timber, a relationship which might lead to a combination for the maintenance of a price that would be very detrimental to the public interest, and would create the necessity of removing all tariff obstacles to the free importations of lumber from other countries. I am glad to note in the Secretary's report the satisfactory progress which is being made in respect to the preservation of the seals of the Pribiloff Islands. Very active steps are being taken by the Department of State to secure an arrangement which shall protect the Pribiloff herd from the losses due to pelagic sealing. Meantime the Government has secured seal pelts of the bachelor seals (the killing of which does not interfere with the maintenance of the herd), from the sale of which next month it is expected to realize about $450,000, a sum largely in excess of the rental paid by the lessee of the Government under the previous contract. The Coast and Geodetic Survey has been engaged in surveying the coasts of the Philippine archipelago. This is a heavy work, because of the extended character of the coast line in those Islands, but I am glad to note that about half of the needed survey has been completed. So large a part of the coast line of the archipelago has been unsurveyed as to make navigation in the neighborhood of a number of the islands, and especially on the east side, particularly dangerous. The Commissioner of Labor has been actively engaged in composing the differences between employers and employees engaged in interstate transportation, under the Erdman Act, jointly with the Chairman of the Interstate Commerce Commission. I can not speak in too high terms of the success of these two officers in conciliation and settlement of controversies which, but for their interposition, would have resulted disastrously to all interests. I invite attention to the very serious injury caused to all those who are engaged in the manufacture of phosphorous matches. The diseases incident to this are frightful, and as matches can be made from other materials entirely innocuous, I believe that the injurious manufacture could be discouraged and ought to be discouraged by the imposition of a heavy federal tax. I recommend the adoption of this method of stamping out a very serious abuse. Since 1868 it has been the declared purpose of this Government to favor the movement for an eight-hour day by a provision of law that none of the employees employed by or on behalf of the Government should work longer than eight hours in every twenty-four. The first declaration of this view was not accompanied with any penal clause or with any provision for its enforcement, and, though President Grant by a proclamation twice attempted to give it his sanction and to require the officers of the Government to carry it out, the purpose of the framers of the law was ultimately defeated by a decision of the Supreme Court holding that the statute as drawn was merely a direction of the Government to its agents and did not invalidate a contract made in behalf of the Government which provided in the contract for labor for a day of longer hours than eight. Thereafter, in 1892, the present eight-hour law was passed, which provides that the services and employment of all laborers and mechanics who are now or may hereafter be employed by the Government of the United States, by the District of Columbia, or by any contractor or subcontractor on any of the public works of the United States and of the said District of Columbia is hereby restricted to eight hours in any one calendar day. This law has been construed to limit the application of the requirement to those who are directly employed by the Government or to those who are employed upon public works situate upon land owned by the United States. This construction prevented its application to government battle ships and other vessels built in private shipyards and to heavy guns and armor plate contracted for and made at private establishments. The proposed act provides that no laborer or mechanic doing any part of the work contemplated by a contract with the United States in the employ of the contractor or any subcontractor shall be required or permitted to work more than eight hours a day in any one calendar day. It seems to me from the past history that the Government has been committed to a policy of encouraging the limitation of the day's work to eight hours in all works of construction initiated by itself, and it seems to me illogical to maintain a difference between government work done on government soil and government work done in a private establishment, when the work is of such large dimensions and involves the expenditure of much labor for a considerable period, so that the private manufacturer may adjust himself and his establishment to the special terms of employment that he must make with his workmen for this particular job. To require, however, that every small contract of manufacture entered into by the Government should be carried out by the contractor with men working at eight hours would be to impose an intolerable burden upon the Government by limiting its sources of supply and excluding altogether the great majority of those who would otherwise compete for its business. The proposed act recognizes this in the exceptions which it makes to contracts 
  "for transportation by land or water, for the transmission of intelligence, and for such materials or articles as may usually be bought in the open market whether made to conform to particular specifications or not, or for the purchase of supplies by the Government, whether manufactured to conform to particular specifications or not."
 I recommend that instead of enacting the proposed bill, the meaning of which is not clear and definite and might be given a construction embarrassing to the public interest, the present act be enlarged by providing that public works shall be construed to include not only buildings and work upon public ground, but also ships, armor, and large guns when manufactured in private yards or factories. One of the great difficulties in enforcing this eight-hour law is that its application under certain emergencies becomes exceedingly oppressive and there is a great temptation to subordinate officials to evade it. I think that it would be wiser to allow the President, by Executive order, to declare an emergency in special instances in which the limitation might not apply and, in such cases, to permit the payment by the Government of extra compensation for the time worked each day in excess of eight hours. I may add that my suggestions in respect to this legislation have the full concurrence of the Commissioner of Labor. In view of the keen, widespread interest now felt in the United States in a system of compensation for industrial accidents to supplant our present thoroughly unsatisfactory system of employers' liability (a subject the importance of which Congress has already recognized by the appointment of a commission), I recommend that the International Congress on Industrial Insurance be invited to hold its meeting in 1913 in Washington, and that an appropriation of $10,000 be made to cover the necessary expenses of organizing and carrying on the meeting. 
 The immigration into this country is increasing each year. A large part of it comes through the immigrant station at Ellis Island in the City of New York. An examination of the station and the methods pursued satisfies me that a difficult task is there performed by the commissioner and his force with common sense, the strictest fairness, and with the most earnest desire to enforce the law equitably and mercifully. It has been proposed to enlarge the accommodations so as to allow more of the immigrants to come by that port. I do not think it wise policy to do this. I have no objection to--on the contrary, I recommend--the construction of additional buildings for the purpose of facilitating a closer and more careful examination of each immigrant as he comes in, but I deprecate the enlargement of the buildings and of the force for the purpose of permitting the examination of more immigrants per day than are now examined. If it is understood that no more immigrants can be taken in at New York than are now taken in, and the steamship companies thus are given a reason and a motive for transferring immigrants to other ports, we can be confident that they will be better distributed through the country and that there will not be that congestion in the City of New York which does not make for the better condition of the immigrant or increase his usefulness as a new member of this community. Everything which tends to send the immigrants west and south into rural life helps the country. I concur with the Secretary in his recommendations as to the amendments to the immigration law in increasing the fine against the companies for violation of the regulations, and in giving greater power to the commissioner to enforce more care on the part of the steamship companies in accepting immigrants. The recommendation of the Secretary, in which he urges that the law may be amended so as to discourage the separation of families, is, I think, a good one. 
 In my message of last year I recommended the creation of a Bureau of Health, in which should be embraced all those Government agencies outside of the War and Navy Departments which are now directed toward the preservation of public health or exercise functions germane to that subject. I renew this recommendation. I greatly regret that the agitation in favor of this bureau has aroused a counteragitation against its creation, on the ground that the establishment of such a bureau is to be in the interest of a particular school of medicine. It seems to me that this assumption is wholly unwarranted, and that those responsible for the Government can be trusted to secure in the personnel of the bureau the appointment of representatives of all recognized schools of medicine, and in the management of the bureau entire freedom from narrow prejudice in this regard. By an act passed by Congress the President was authorized to expend a million dollars to construct the needed work to prevent injury to the lands of the Imperial Valley from the overflow of the Colorado River. I appointed a competent engineer to examine the locality and to report a plan for construction. He has done so. In order to complete the work it is necessary to secure the consent of Mexico, for part of the work must be constructed in Mexican territory. Negotiations looking to the securing of such authority are quite near success. The Southern Pacific Railroad Company proposes to assist us in the work by lending equipment and by the transportation of material at cost price, and it is hoped that the work may be completed before any danger shall arise from the spring floods in the river. The work is being done under the supervision of the Secretary of the Interior and his consulting engineer, General Marshall, late Chief of Engineers, now retired. This leads me to invite the attention of Congress to the claim made by the Southern Pacific Railroad Company for an amount expended in a similar work of relief called for by a flood and great emergency. This work, as I am informed, was undertaken at the request of my predecessor and under promise to reimburse the railroad company. It seems to me the equity of this claim is manifest, and the only question involved is the reasonable value of the work done. I recommend the payment of the claim in a sum found to be just. 
 The government of the District of Columbia is a good government. The police force, while perhaps it might be given, or acquire, more military discipline in bearing and appearance, is nevertheless an efficient body of men, free from graft, and discharges its important duties in this capital of the nation effectively. The parks and the streets of the city and the District are generally kept clean and in excellent condition. The Commissioners of the District have its affairs well in hand, and, while not extravagant, are constantly looking to those municipal improvements that are expensive but that must be made in a modern growing city like Washington. While all this is true, nevertheless the fact that Washington is governed by Congress, and that the citizens are not responsible and have no direct control through popular election in District matters, properly subjects the government to inquiry and criticism by its citizens, manifested through the public press and otherwise; such criticism should command the careful attention of Congress. Washington is the capital of the nation and its maintenance as a great and beautiful city under national control, every lover of his country has much at heart; and it should present in every way a model in respect of economy of expenditure, of sanitation, of tenement reform, of thorough public instruction, of the proper regulation of public utilities, of sensible and extended charities, of the proper care of criminals and of youth needing reform, of healthful playgrounds and opportunity for popular recreation, and of a beautiful system of parks. I am glad to think that progress is being made in all these directions, but I venture to point out certain specific improvements toward these ends which Congress in its wisdom might adopt. Speaking generally, I think there ought to be more concentration of authority in respect to the accomplishment of some of these purposes with more economy of expenditure. Attention is invited to the peculiar situation existing in regard to the parks of Washington. The park system proper, comprising some 343 different areas, is under the Office of Public Buildings and Grounds, which, however, has nothing to do with the control of Rock Creek Park, the Zoological Park, the grounds of the Department of Agriculture, the Botanic Garden, the grounds of the Capitol, and other public grounds which are regularly open to the public and ought to be part of the park system. Exclusive of the grounds of the Soldiers' Home and of Washington Barracks, the public grounds used as parks in the District of Columbia comprise over 3,100 acres, under ten different controlling officials or bodies. This division of jurisdiction is most unfortunate. Large sums of money are spent yearly in beautifying and keeping in good condition these parks and the grounds connected with Government buildings and institutions. The work done on all of them is of the same general character--work for which the Office of Public Buildings and Grounds has been provided by Congress with a special organization and equipment, which are lacking for the grounds not under that office. There can be no doubt that if all work of care and improvement upon the grounds belonging to the United States in the District of Columbia were put, as far as possible, under one responsible head, the result would be not only greater efficiency and economy in the work itself, but greater harmony in the development of the public parks and gardens of the city. Congress at its last session provided for two more parks, called the Meridian Hill and Montrose parks, and the District Commissioners have also included in their estimates a sum to be used for the acquisition of much needed park land adjoining the Zoological Park, known as the Klingle Ford tract. The expense of these three parks, included in the estimates of the Commissioners, aggregates $900,000. I think it would lead to economy if the improvement and care of all these parks and other public grounds above described should be transferred to the Office of Public Buildings and Grounds, which has an equipment well and economically adapted to carrying out the public purpose in respect to improvements of this kind. To prevent encroachments upon the park area it is recommended that the erection of any permanent structure on any lands in the District of Columbia belonging to the United States be prohibited except by specific authority of Congress. I have already in previous communications to Congress referred to the importance of acquiring for the District of Columbia at least a part of the territory on the other side of the Potomac in Virginia which was originally granted for the District by the State of Virginia, and then was retroceded by act of Congress in 1846. It is very evident from conferences that I have had with the Senators and Representatives from Virginia that there is no hope of a regranting by the State of the land thus given back; and I am frank to say that in so far as the tract includes the town of Alexandria and land remote from the Potomac River there would be no particular advantage in bringing that within national control. But the land which lies along the Potomac River above the railroad bridge and across the Potomac, including Arlington Cemetery, Fort Myer, the Government experiment farm, the village of Rosslyn, and the Palisades of the Potomac, reaching to where the old District line intersects the river, is very sparsely settled and could be admirably utilized for increasing the system of the parks of Washington. It has been suggested to me by the same Virginia Senators and Representatives that if the Government were to acquire for a government park the land above described, which is not of very great value, the present law of Virginia would itself work the creation of federal jurisdiction over it, and if that were not complete enough, the legislature of Virginia would in all probability so enlarge the jurisdiction as to enable Congress to include it within the control of the government of the District of Columbia and actually make it a part of Washington. I earnestly recommend that steps be taken to carry out this plan. There are a sufficient number of corporations enjoying the use of public utilities in the District of Columbia to justify and require the enactment of a law providing for their supervision and regulation in the public interest consistent with the vested rights secured to them by their charters. A part of these corporations, to wit, the street railways, have been put under the control of the Interstate Commerce Commission, but that Commission recommends that the power be taken from it, and intimates broadly that its other and more important duties make it impossible for it to give the requisite supervision. It seems to me wise to place this general power of supervision and regulation in the District Commissioners. It is said that their present duties are now absorbing and would prevent the proper discharge by them of these new functions, but their present jurisdiction brings them so closely and frequently in contact with these corporations and makes them to know in such detail how the corporations are discharging their duties under the law and how they are serving the public interest that the Commissioners are peculiarly fitted to do this work, and I hope that Congress will impose it upon them by intrusting them with powers in respect to such corporations similar to those of the public utilities commission of New York City or similar boards in Massachusetts. I do not think the present control of the school system of Washington commends itself as the most efficient and economical and thorough instrument for the carrying on of public instruction. The cost of education in the District of Columbia is excessive as compared with the cost in other cities of similar size, and it is not apparent that the results are in general more satisfactory. The average cost per pupil per day in Washington is about 38 cents, while the average cost in 13 other American cities fairly comparable with Washington in population and standard of education is about 25.5 cents. For each dollar spent in salaries of school teachers and officers in the District about 4.4 days of instruction per pupil are given, while in the 13 cities above referred to each dollar expended for salaries affords on the average 6.8 days of instruction. For the current fiscal year the estimates of the Board of Education amounted to about three-quarters of the entire revenue locally collected for District purposes. If I may say so, there seems to be a lack of definite plan in the expansion of the school system and the erection of new buildings and of proper economy in the use of these buildings that indicates the necessity for the concentration of control. All plans for improvement and expansion in the school system are with the School Board, while the limitation of expenses is with the District Commissioners. I think it would be much better to put complete control and responsibility in the District Commissioners, and then provide a board of school visitors, to be appointed by the Supreme Court of the District or by the President, from the different school districts of Washington, who, representing local needs, shall meet and make recommendations to the Commissioners and to the Superintendent of Education--an educator of ability and experience who should be an appointee of and responsible to the District Commissioners. Among other items for permanent improvements appearing in the District estimates for 1912 is one designed to substitute for Willow Tree Alley, notorious in the records of the Police and Health Departments, a playground with a building containing baths, a gymnasium, and other helpful features, and I hope Congress will approve this estimate. Fair as Washington seems with her beautiful streets and shade trees, and free, as the expanse of territory which she occupies would seem to make her, from slums and insanitary congestion of population, there are centers in the interior of squares where the very poor, and the criminal classes as well, huddle together in filth and noisome surroundings, and it is of primary importance that these nuclei of disease and suffering and vice should be removed, and that there should be substituted for them small parks as breathing spaces, and model tenements having sufficient air space and meeting other hygienic requirements. The estimate for the reform of Willow Tree Alley, the worst of these places in the city, is the beginning of a movement that ought to attract the earnest attention and support of Congress, for Congress can not escape its responsibility for the existence of these human pest holes. The estimates for the District of Columbia for the fiscal year 1912 provide for the repayment to the United States of $616,000, one-fourth of the floating debt that will remain on June 30, 1911. The bonded debt will be reduced in 1912 by about the same amount. The District of Columbia is now in an excellent financial condition. Its own share of indebtedness will, it is estimated, be less than $6,000,000 on June 30, 1912, as compared with about $9,00,000 on June 30, 1909. The bonded debt, owed half and half by the United States and the District, will be extinguished by 1924, and the floating debt of the District probably long before that time. The revenues have doubled in the last ten years, while the population during the same period has increased but 18.78 per cent. It is believed that, if due economy be practiced, the District can soon emerge from debt, even while financing its permanent improvements with reasonable rapidity from current revenues. 
To this end, I recommend the enactment into law of a bill now before Congress--and known as the Judson Bill--which will insure the gradual extinguishment of the District's debt, while at the same time requiring that the many permanent improvements needed to complete a fitting capital city shall be carried on from year to year and at a proper rate of progress with funds derived from the rapidly increasing revenues. I renew my recommendation that the claims of the depositors in the Freedmen's Bank be recognized and paid by the passage of the pending bill on that subject. I also renew my recommendation that steps be taken looking to the holding of a Negro exposition in celebration of the fiftieth anniversary of the issuing by Mr. Lincoln of the Emancipation Proclamation. The Civil Service Commission has continued its useful duties during the year. The necessity for the maintenance of the provisions of the civil service law was never greater than to-day. Officers responsible for the policy of the Administration, and their immediate personal assistants or deputies, should not be included within the classified service; but in my judgment, public opinion has advanced to the point where it would support a bill providing a secure tenure during efficiency for all purely administrative officials. I entertain the profound conviction that it would greatly aid the cause of efficient and economical government, and of better politics if Congress could enact a bill providing that the Executive shall have the power to include in the classified service all local offices under the Treasury Department, the Department of Justice, the Post-Office Department, the Interior Department, and the Department of Commerce and Labor, appointments to which now require the confirmation of the Senate, and that upon such classification the advice and consent of the Senate shall cease to be required in such appointments. By their certainty of tenure, dependent on good service, and by their freedom from the necessity for political activity, these local officers would be induced to become more efficient public servants. The civil service law is an attempt to solve the problem of the proper selection of those who enter the service. A better system under that law for promotions ought to be devised, but, given the selected employee, there remains still the question of promoting his efficiency and his usefulness to the Government, and that can be brought about only by a careful comparison of unit work done by the individual and a pointing out of the necessity for improvement in this regard where improvement is possible. The increase in the activities and in the annual expenditures of the Federal Government has been so rapid and so great that the time has come to check the expansion of government activities in new directions until we have tested the economy and efficiency with which the Government of to-day is being carried on. The responsibility rests upon the head of the Administration. He is held accountable by the public, and properly so. Despite the unselfish and patriotic efforts of the heads of departments and others charged with responsibility of government, there has grown up in this country a conviction that the expenses of government are too great. The fundamental reason for the existence undetected of waste, duplication, and bad management is the lack of prompt, accurate information. The president of a private corporation doing so vast a business as the Government transacts would, through competent specialists, maintain the closest scrutiny on the comparative efficiency and the comparative costs in each division or department of the business. He would know precisely what the duties and the activities of each bureau or division are in order to prevent overlapping. No adequate machinery at present exists for supplying the President of the United States with such information respecting the business for which he is responsible. For the first time in the history of the Government, Congress in the last session supplied this need and made an appropriation to enable the President to inquire into the economy and efficiency of the executive departments, and I am now assembling an organization for that purpose. At the outset I find comparison between departments and bureaus impossible for the reason that in no two departments are the estimates and expenditures displayed and classified alike. The first step is to reduce all to a common standard for classification and judgment, and this work is now being done. When it is completed, the foundation will be laid for a businesslike national budget, and for such a just comparison of the economy and efficiency with which the several bureaus and divisions are conducted as will enable the President and the heads of Departments to detect waste, eliminate duplication, encourage the intelligent and effective civil servants whose efforts too often go unnoticed, and secure the public service at the lowest possible cost. The Committees on Appropriations of Congress have diligently worked to reduce the expenses of government and have found their efforts often blocked by lack of accurate information containing a proper analysis of requirements and of actual and reasonable costs. The result of this inquiry should enable the Executive in his communications to Congress to give information to which Congress is entitled and which will enable it to promote economy. My experience leads me to believe that while Government methods are much criticised, the bad results--if we do have bad results--are not due to a lack of zeal or willingness on the part of the civil servants. On the contrary, I believe that a fine spirit of willingness to work exists in the personnel, which, if properly encouraged, will produce results equal to those secured in the best managed private enterprises. In handling Government expenditure the aim is not profit--the aim is the maximum of public service at the minimum of cost. We wish to reduce the expenditures of the Government, and we wish to save money to enable the Government to go into some of the beneficial projects which we are debarred from taking up now because we ought not to increase our expenditures. I have requested the head of each Department to appoint committees on economy and efficiency in order to secure full cooperation in the movement by the employees of the Government themselves. At a later date I shall send to Congress a special message on this general subject. I urge the continuance of the appropriation of $100,000 requested for the fiscal year 1912. It is impossible to proceed far in such an investigation without perceiving the need of a suitable means of eliminating from the service the superannuated. This can be done in one of two ways, either by straight civil pension or by some form of contributory plan. Careful study of experiments made by foreign governments shows that three serious objections to the civil pension payable out of the public treasury may be brought against it by the taxpayer, the administrative officer, and the civil employee, respectively. A civil pension is bound to become an enormous, continuous, and increasing tax on the public exchequer; it is demoralizing to the service since it makes difficult the dismissal of incompetent employees after they have partly earned their pension; and it is disadvantageous to the main body of employees themselves since it is always taken into account in fixing salaries and only the few who survive and remain in the service until pensionable age receive the value of their deferred pay. For this reason, after a half century of experience under a most liberal pension system, the civil servants of England succeeded, about a year ago, in having the system so modified as to make it virtually a contributory plan with provision for refund of their theoretical contributions. The experience of England and other countries shows that neither can a contributory plan be successful, human nature being what it is, which does not make provision for the return of contributions, with interest, in case of death or resignation before pensionable age. Followed to its logical conclusion this means that the simplest and most independent solution of the problem for both employee and the Government is a compulsory savings arrangement, the employee to set aside from his salary a sum sufficient, with the help of a liberal rate of interest from the Government, to purchase an adequate annuity for him on retirement, this accumulation to be inalienably his and claimable if he leaves the service before reaching the retirement age or by his heirs in case of his death. This is the principle upon which the Gillett bill now pending is drawn. The Gillett bill, however, goes further and provides that the Government shall contribute to the pension fund of those employees who are now so advanced in age that their personal contributions will not be sufficient to create their annuities before reaching the retirement age. In my judgment this provision should be amended so that the annuities of those employees shall be paid out of the salaries appropriated for the positions vacated by retirement, and that the difference between the annuities thus granted and the salaries may be used for the employment of efficient clerks at the lower grades. If the bill can be thus amended I recommend its passage, as it will initiate a valuable system and ultimately result in a great saving in the public expenditures. There has not been time to test the benefit and utility of the amendments to the interstate commerce law contained in the act approved June 18, 1910. The law as enacted did not contain all the features which I recommended. It did not specifically denounce as unlawful the purchase by one of two parallel and competing roads of the stock of the other. Nor did it subject to the restraining influence of the Interstate Commerce Commission the power of corporations engaged in operating interstate railroads to issue new stock and bonds; nor did it authorize the making of temporary agreements between railroads, limited to thirty days, fixing the same rates for traffic between the same places. I do not press the consideration of any of these objects upon Congress at this session. The object of the first provision is probably generally covered by the antitrust law. The second provision was in the act referred to the consideration of a commission to be appointed by the Executive and to report upon the matter to Congress. That commission has been appointed, and is engaged in the investigation and consideration of the question submitted under the law. It consists of President Arthur T. Hadley, of Yale University, as chairman; Frederick Strauss, Frederick N. Judson, Walter L. Fisher, and Prof. B. H. Meyer, with William E. S. Griswold as secretary. 
The third proposal led to so much misconstruction of its object, as being that of weakening the effectiveness of the antitrust law, that I am not disposed to press it for further consideration. It was intended to permit railroad companies to avoid useless rate cutting by a mere temporary acquiescence in the same rates for the same service over competing railroads, with no obligation whatever to maintain those rates for any time. The protection of railroad employees from personal injury is a subject of the highest importance and demands continuing attention. There have been two measures pending in Congress, one for the supervision of boilers and the other for the enlargement of dangerous clearances. Certainly some measures ought to be adopted looking to a prevention of accidents from these causes. It seems to me that with respect to boilers a bill might well be drawn requiring and enforcing by penalty a proper system of inspection by the railway companies themselves which would accomplish our purpose. The entire removal of outside clearances would be attended by such enormous expense that some other remedy must be adopted. By act of May 6, 1910, the Interstate Commerce Commission is authorized and directed to investigate accidents, to report their causes and its recommendations. I suggest that the Commission be requested to make a special report as to injuries from outside clearances and the best method of reducing them. The Interstate Commerce Commission has recommended appropriations for the purpose of enabling it to enter upon a valuation of all railroads. This has always been within the jurisdiction of the Commission, but the requisite funds have been wanting. Statistics of the value of each railroad would be valuable for many purposes, especially if we ultimately enact any limitations upon the power of the interstate railroads to issue stocks and bonds, as I hope we may. I think, therefore, that in order to permit a correct understanding of the facts, it would be wise to make a reasonable appropriation to enable the Interstate Commerce Commission to proceed with due dispatch to the valuation of all railroads. I have no doubt that railroad companies themselves can and will greatly facilitate this valuation and make it much less costly in time and money than has been supposed. Forged and fraudulent hills of lading purporting to be issued against cotton, some months since, resulted in losses of several millions of dollars to American and foreign banking and cotton interests. Foreign bankers then notified American bankers that, after October 31, 1910, they would not accept bills of exchange drawn against bills of lading for cotton issued by American railroad companies, unless American bankers would guarantee the integrity of the bills of lading. The American bankers rightly maintained that they were not justified in giving such guarantees, and that, if they did so, the United States would be the only country in the world whose bills were so discredited, and whose foreign trade was carried on under such guaranties. The foreign bankers extended the time at which these guaranties were demanded until December 31, 1910, relying upon us for protection in the meantime, as the money which they furnish to move our cotton crop is of great value to this country. For the protection of our own people and the preservation of our credit in foreign trade, I urge upon Congress the immediate enactment of a law under which one who, in good faith, advances money or credit upon a bill of lading issued by a common carrier upon an interstate or foreign shipment can hold the carrier liable for the value of the goods described in the bill at the valuation specified in the bill, at least to the extent of the advances made in reliance upon it. Such liability exists under the laws of many of the States. I see no objection to permitting two classes of bills of lading to be issued: (I) Those under which a carrier shall be absolutely liable, as above suggested, and (2) those with respect to which the carrier shall assume no liability except for the goods actually delivered to the agent issuing the bill. The carrier might be permitted to make a small separate specific charge in addition to the rate of transportation for such guaranteed bill, as an insurance premium against loss from the added risk, thus removing the principal objection which I understand is made by the railroad companies to the imposition of the liability suggested, viz., that the ordinary transportation rate would not compensate them for the liability assumed by the absolute guaranty of the accuracy of the bills of lading. I further recommend that a punishment of fine and imprisonment be imposed upon railroad agents and shippers for fraud or misrepresentation in connection with the issue of bills of lading issued upon interstate and foreign shipments. Except as above, I do not recommend any amendment to the interstate-commerce law as it stands. I do not now recommend any amendment to the anti-trust law. In other words, it seems to me that the existing legislation with reference to the regulation of corporations and the restraint of their business has reached a point where we can stop for a while and witness the effect of the vigorous execution of the laws on the statute books in restraining the abuses which certainly did exist and which roused the public to demand reform. If this test develops a need for further legislation, well and good, but until then let us execute what we have. Due to the reform movements of the present decade, there has undoubtedly been a great improvement in business methods and standards. The great body of business men of this country, those who are responsible for its commercial development, now have an earnest desire to obey the law and to square their conduct of business to its requirements and limitations. These will doubtless be made clearer by the decisions of the Supreme Court in cases pending before it. It is in the interest of all the people of the country that for the time being the activities of government, in addition to enforcing earnestly and impartially the existing laws, should be directed to economy of administration, to the enlargement of opportunities for foreign trade, to the conservation and improvement of our agricultural lands and our other natural resources, to the building up of home industries, and to the strengthening of confidence of capital in domestic investment.
During the past year the foreign relations of the United States have continued upon a basis of friendship and good understanding. . The year has been notable as witnessing the pacific settlement of two important international controversies before the Permanent Court of The Hague. The arbitration of the Fisheries dispute between the United States and Great Britain, which has been the source of nearly continuous diplomatic correspondence since the Fisheries Convention of 1818, has given an award which is satisfactory to both parties. This arbitration is particularly noteworthy not only because of the eminently just results secured, but also because it is the first arbitration held under the general arbitration treaty of April 4, 1908, between the United States and Great Britain, and disposes of a controversy the settlement of which has resisted every other resource of diplomacy, and which for nearly ninety years has been the because of friction between two countries whose common interest lies in maintaining the most friendly and cordial relations with each other. The United States was ably represented before the tribunal. The complicated history of the questions arising made the issue depend, more than ordinarily in such cases, upon the care and skill with which our case was presented, and I should be wanting in proper recognition of a great patriotic service if I did not refer to the lucid historical analysis of the facts and the signal ability and force of the argument --six days in length--presented to the Court in support of our case by Mr. Elihu Root. As Secretary of State, Mr. Root had given close study to the intricate facts bearing on the controversy, and by diplomatic correspondence had helped to frame the issues. At the solicitation of the Secretary of State and myself, Mr. Root, though burdened by his duties as Senator from New York, undertook the preparation of the case as leading counsel, with the condition imposed by himself that, in view of his position as Senator, he should not receive any compensation. The Tribunal constituted at The Hague by the Governments of the United States and Venezuela has completed its deliberations and has rendered an award in the case of the Orinoco Steamship Company against Venezuela. The award may be regarded as satisfactory since it has, pursuant to the contentions of the United States, recognized a number of important principles making for a judicial attitude in the determining of international disputes. In view of grave doubts which had been raised as to the constitutionality of The Hague Convention for the establishment of an International Prize Court, now before the Senate for ratification, because of that provision of the Convention which provides that there may be an appeal to the proposed Court from the decisions of national courts, this government proposed in an Identic Circular Note addressed to those Powers who had taken part in the London Maritime Conference, that the powers signatory to the Convention, if confronted with such difficulty, might insert a reservation to the effect that appeals to the International Prize Court in respect to decisions of its national tribunals, should take the form of a direct claim for compensation; that the proceedings thereupon to be taken should be in the form of a trial de novo, and that judgment of the Court should consist of compensation for the illegal capture, irrespective of the decision of the national court whose judgment had thus been internationally involved. As the result of an informal discussion it was decided to provide such procedure by means of a separate protocol which should be ratified at the same time as the Prize Court Convention itself. Accordingly, the Government of the Netherlands, at the request of this Government, proposed under date of May 24, 1910, to the powers signatory to The Hague Convention, the negotiation of a supplemental protocol embodying stipulations providing for this alternative procedure. It is gratifying to observe that this additional protocol is being signed without objection, by the powers signatory to the original convention, and there is every reason to believe that the International Prize Court will be soon established. The Identic Circular Note also proposed that the International Prize Court when established should be endowed with the functions of an Arbitral Court of Justice under and pursuant to the recommendation adopted by the last Hague Conference. The replies received from the various powers to this proposal inspire the hope that this also may be accomplished within the reasonably near future. It is believed that the establishment of these two tribunals will go a long way toward securing the arbitration of many questions which have heretofore threatened and, at times, destroyed the peace of nations. Appreciating these enlightened tendencies of modern times, the Congress at its last session passed a law providing for the appointment of a commission of five members "to be appointed by the President of the United States to consider the expediency of utilizing existing international agencies for the purpose of limiting the armaments of the nations of the world by international agreement, and of constituting the combined navies of the world an international force for the preservation of universal peace, and to consider and report upon any other means to diminish the expenditures of government for military purposes and to lessen the probabilities of war." I have not as yet made appointments to this Commission because I have invited and am awaiting the expressions of foreign governments as to their willingness to cooperate with us in the appointment of similar commissions or representatives who would meet with our commissioners and by joint action seek to make their work effective. Several important treaties have been negotiated with Great Britain in the past twelve months. A preliminary diplomatic agreement has been reached regarding the arbitration of pecuniary claims which each Government has against the other. This agreement, with the schedules of claims annexed, will, as soon as the schedules are arranged, be submitted to the Senate for approval. An agreement between the United States and Great Britain with regard to the location of the international boundary line between the United States and Canada in Passamaquoddy Bay and to the middle of Grand Manan Channel was reached in a Treaty concluded May 21, 1910, which has been ratified by both Governments and proclaimed, thus making unnecessary the arbitration provided for in the previous treaty of April 11, 1908. The Convention concluded January 11, 1909, between the United States and Great Britain providing for the settlement of international differences between the United States and Canada including the apportionment between the two countries of certain of the boundary waters and the appointment of Commissioners to adjust certain other questions has been ratified by both Governments and proclaimed. The work of the International Fisheries Commission appointed in 1908, under the treaty of April 11, 1908, between Great Britain and the United States, has resulted in the formulation and recommendation of uniform regulations governing the fisheries of the boundary waters of Canada and the United States for the purpose of protecting and increasing the supply of food fish in such waters. In completion of this work, the regulations agreed upon require congressional legislation to make them effective and for their enforcement in fulfillment of the treaty stipulations. . In October last the monarchy in Portugal was overthrown, a provisional Republic was proclaimed, and there was set up a de facto Government which was promptly recognized by the Government of the United States for purposes of ordinary intercourse pending formal recognition by this and other Powers of the Governmental entity to be duly established by the national sovereignty. . A disturbance among the native tribes of Liberia in a portion of the Republic during the early part of this year resulted in the sending, under the Treaty of 1862, of an American vessel of war to the disaffected district, and the Liberian authorities, assisted by the good offices of the American Naval Officers, were able to restore order. The negotiations which have been undertaken for the amelioration of the conditions found in Liberia by the American Commission, whose report I transmitted to Congress on March 25 last, are being brought to conclusion, and it is thought that within a short time practical measures of relief may be put into effect through the good offices of this Government and the cordial cooperation of other governments interested in Liberia's welfare. To return the visit of the Special Embassy announcing the accession of His Majesty Mehemet V, Emperor of the Ottomans, I sent to Constantinople a Special Ambassador who, in addition to this mission of ceremony, was charged with the duty of expressing to the Ottoman Government the value attached by the Government of the United States to increased and more important relations between the countries and the desire of the United States to contribute to the larger economic and commercial development due to the new regime in Turkey. The rapid development now beginning in that ancient empire and the marked progress and increased commercial importance of Bulgaria, Roumania, and Servia make it particularly opportune that the possibilities of American commerce in the Near East should receive due attention. . The National Skoupchtina having expressed its will that the Principality of Montenegro be raised to the rank of Kingdom, the Prince of Montenegro on August 15 last assumed the title of King of Montenegro. It gave me pleasure to accord to the new kingdom the recognition of the United States. The center of interest in Far Eastern affairs during the past year has again been China. It is gratifying to note that the negotiations for a loan to the Chinese Government for the construction of the trunk railway lines from Hankow southward to Canton and westward through the Yangtse Valley, known as the Hukuang Loan, were concluded by the representatives of the various financial groups in May last and the results approved by their respective governments. The agreement, already initialed by the Chinese Government, is now awaiting formal ratification. The basis of the settlement of the terms of this loan was one of exact equality between America, Great Britain, France, and Germany in respect to financing the loan and supplying materials for the proposed railways and their future branches. The application of the principle underlying the policy of the United States in regard to the Hukuang Loan, viz., that of the internationalization of the foreign interest in such of the railways of China as may be financed by foreign countries, was suggested on a broader scale by the Secretary of State in a proposal for internationalization and commercial neutralization of all the railways of Manchuria. While the principle which led to the proposal of this Government was generally admitted by the powers to whom it was addressed, the Governments of Russia and Japan apprehended practical difficulties in the execution of the larger plan which prevented their ready adherence. The question of constructing the Chinchow-Aigun railway by means of an international loan to China is, however, still the subject of friendly discussion by the interested parties. The policy of this Government in these matters has been directed by a desire to make the use of American capital in the development of China an instrument in the promotion of China's welfare and material prosperity without prejudice to her legitimate rights as an independent political power. This policy has recently found further exemplification in the assistance given by this Government to the negotiations between China and a group of American bankers for a loan of $50,000,000 to be employed chiefly in currency reform. The confusion which has from ancient times existed in the monetary usages of the Chinese has been one of the principal obstacles to commercial intercourse with that people. The United States in its Treaty of 1903 with China obtained a pledge from the latter to introduce a uniform national coinage, and the following year, at the request of China, this Government sent to Peking a member of the International Exchange Commission, to discuss with the Chinese Government the best methods of introducing the reform. In 1908 China sent a Commissioner to the United States to consult with American financiers as to the possibility of securing a large loan with which to inaugurate the new currency system, but the death of Their Majesties, the Empress Dowager and the Emperor of China, interrupted the negotiations, which were not resumed until a few months ago, when this Government was asked to communicate to the bankers concerned the request of China for a loan of $50,000,000 for the purpose under review. A preliminary agreement between the American group and China has been made covering the loan. For the success of this loan and the contemplated reforms which are of the greatest importance to the commercial interests of the United States and the civilized world at large, it is realized that an expert will be necessary, and this Government has received assurances from China that such an adviser, who shall be an American, will be engaged. It is a matter of interest to Americans to note the success which is attending the efforts of China to establish gradually a system of representative government. The provincial assemblies were opened in October, 1909, and in October of the present year a consultative body, the nucleus of the future national parliament, held its first session at Peking. The year has further been marked by two important international agreements relating to Far Eastern affairs. In the Russo-Japanese Agreement relating to Manchuria, signed July 4, 1910, this Government was gratified to note an assurance of continued peaceful conditions in that region and the reaffirmation of the policies with respect to China to which the United States together with all other interested powers are alike solemnly committed. The treaty annexing Korea to the Empire of Japan, promulgated August 29, 1910, marks the final step in a process of control of the ancient empire by her powerful neighbor that has been in progress for several years past. In communicating the fact of annexation the Japanese Government gave to the Government of the United States assurances of the full protection of the rights of American citizens in Korea under the changed conditions. Friendly visits of many distinguished persons from the Far East have been made during the year. Chief among these were Their Imperial Highnesses Princes Tsai-tao and Tsai-Hsun of China; and His Imperial Highness Prince Higashi Fushimi, and Prince Tokugawa, President of the House of Peers of Japan. The Secretary of War has recently visited Japan and China in connection with his tour to the Philippines, and a large delegation of American business men are at present traveling in China. This exchange of friendly visits has had the happy effect of even further strengthening our friendly international relations. During the past year several of our southern sister Republics celebrated the one hundredth anniversary of their independence. In honor of these events, special embassies were sent from this country to Argentina, Chile, and Mexico, where the gracious reception and splendid hospitality extended them manifested the cordial relations and friendship existing between those countries and the United States, relations which I am happy to believe have never before been upon so high a plane and so solid a basis as at present. The Congressional commission appointed under a concurrent resolution to attend the festivities celebrating the centennial anniversary of Mexican independence, together with a special ambassador, were received with the highest honors and with the greatest cordiality, and returned with the report of the bounteous hospitality and warm reception of President Diaz and the Mexican people, which left no doubt of the desire of the immediately neighboring Republic to continue the mutually beneficial and intimate relations which I feel sure the two governments will ever cherish. At the Fourth Pan-American Conference which met in Buenos Aires during July and August last, after seven weeks of harmonious deliberation, three conventions were signed providing for the regulation of trade-marks, patents, and copyrights, which when ratified by the different Governments, will go far toward furnishing to American authors, patentees, and owners of trade-marks the protection needed in localities where heretofore it has been either lacking or inadequate. Further, a convention for the arbitration of pecuniary claims was signed and a number of important resolutions passed. The Conventions will in due course be transmitted to the Senate, and the report of the Delegation of the United States will be communicated to the Congress for its information. The special cordiality between representative men from all parts of America which was shown at this Conference cannot fail to react upon and draw still closer the relations between the countries which took part in it. The International Bureau of American Republics is doing a broad and useful work for Pan American commerce and comity. Its duties were much enlarged by the International Conference of American States at Buenos Aires and its name was shortened to the more practical and expressive term of Pan American Union. Located now in its new building, which was specially dedicated April 26 of this year to the development of friendship, trade and peace among the American nations, it has improved instrumentalities to serve the twenty-two republics of this hemisphere. I am glad to say that the action of the United States in its desire to remove imminent danger of war between Peru and Ecuador growing out of a boundary dispute, with the cooperation of Brazil and the Argentine Republic as joint mediators with this Government, has already resulted successfully in preventing war. The Government of Chile, while not one of the mediators, lent effective aid in furtherance of a preliminary agreement likely to lead on to an amicable settlement, and it is not doubted that the good offices of the mediating Powers and the conciliatory cooperation of the Governments directly interested will finally lead to a removal of this perennial because of friction between Ecuador and Peru. The inestimable value of cordial cooperation between the sister republics of America for the maintenance of peace in this hemisphere has never been more clearly shown than in this mediation, by which three American Governments have given to this hemisphere the honor of first invoking the most far-reaching provisions of The Hague Convention for the pacific settlement of international disputes. There has been signed by the representatives of the United States and Mexico a protocol submitting to the United States-Mexican Boundary Commission (whose membership for the purpose of this case is to be increased by the addition of a citizen of Canada) the question of sovereignty over the Chamizal Tract which lies within the present physical boundaries of the city of E1 Paso, Tex. The determination of this question will remove a source of no little annoyance to the two Governments. The Republic of Honduras has for many years been burdened with a heavy bonded debt held in Europe, the interest on which long ago fell in arrears. Finally conditions were such that it became imperative to refund the debt and place the finances of the Republic upon a sound basis. Last year a group of American bankers undertook to do this and to advance funds for railway and other improvements contributing directly to the country's prosperity and commerce--an arrangement which has long been desired by this Government. Negotiations to this end have been under way for more than a year and it is now confidently believed that a short time will suffice to conclude an arrangement which will be satisfactory to the foreign creditors, eminently advantageous to Honduras, and highly creditable to the judgment and foresight of the Honduranean Government. This is much to be desired since, as recognized by the Washington Conventions, a strong Honduras would tend immensely to the progress and prosperity of Central America. During the past year the Republic of Nicaragua has been the scene of internecine struggle. General Zelaya, for seventeen years the absolute ruler of Nicaragua, was throughout his career the disturber of Central America and opposed every plan for the promotion of peace and friendly relations between the five republics. When the people of Nicaragua were finally driven into rebellion by his lawless exactions, he violated the laws of war by the unwarranted execution of two American citizens who had regularly enlisted in the ranks of the revolutionists. This and other offenses made it the duty of the American Government to take measures with a view to ultimate reparation and for the safeguarding of its interests. This involved the breaking off of all diplomatic relations with the Zelaya Government for the reasons laid down in a communication from the Secretary of State, which also notified the contending factions in Nicaragua that this Government would hold each to strict accountability for outrages on the rights of American citizens. American forces were sent to both coasts of Nicaragua to be in readiness should occasion arise to protect Americans and their interests, and remained there until the war was over and peace had returned to that unfortunate country. These events, together with Zelaya's continued exactions, brought him so clearly to the bar of public opinion that he was forced to resign and to take refuge abroad. In the above-mentioned communication of the Secretary of State to the Charge' d'Affaires of the Zelaya Government, the opinion was expressed that the revolution represented the wishes of the majority of the Nicaraguan people. This has now been proved beyond doubt by the fact that since the complete overthrow of the Madriz Government and the occupation of the capital by the forces of the revolution, all factions have united to maintain public order and as a result of discussion with an Agent of this Government, sent to Managua at the request of the Provisional Government, comprehensive plans are being made for the future welfare of Nicaragua, including the rehabilitation of public credit. The moderation and conciliatory spirit shown by the various factions give ground for the confident hope that Nicaragua will soon take its rightful place among the law-abiding and progressive countries of the world. It gratifies me exceedingly to announce that the Argentine Republic some months ago placed with American manufacturers a contract for the construction of two battle-ships and certain additional naval equipment. The extent of this work and its importance to the Argentine Republic make the placing of the bid an earnest of friendly feeling toward the United States. The new tariff law, in section 2, respecting the maximum and minimum tariffs of the United States, which provisions came into effect on April 1, 1910, imposed upon the President the responsibility of determining prior to that date whether or not any undue discrimination existed against the United States and its products in any country of the world with which we sustained commercial relations. In the case of several countries instances of apparent undue discrimination against American commerce were found to exist. These discriminations were removed by negotiation. Prior to April 1, 1910, when the maximum tariff was to come into operation with respect to importations from all those countries in whose favor no proclamation applying the minimum tariff should be issued by the President, one hundred and thirty-four such proclamations were issued. This series of proclamations embraced the entire commercial world, and hence the minimum tariff of the United States has been given universal application, thus testifying to the satisfactory character of our trade relations with foreign countries. Marked advantages to the commerce of the United States were obtained through these tariff settlements. Foreign nations are fully cognizant of the fact that under section 2 of the tariff act the President is required, whenever he is satisfied that the treatment accorded by them to the products of the United States is not such as to entitle them to the benefits of the minimum tariff of the United States, to withdraw those benefits by proclamation giving ninety days' notice, after which the maximum tariff will apply to their dutiable products entering the United States. In its general operation this section of the tariff law has thus far proved a guaranty of continued commercial peace, although there are unfortunately instances where foreign governments deal arbitrarily with American interests within their jurisdiction in a manner injurious and inequitable. The policy of broader and closer trade relations with the Dominion of Canada which was initiated in the adjustment of the maximum and minimum provisions of the Tariff Act of August, 1909, has proved mutually beneficial. It justifies further efforts for the readjustment of the commercial relations of the two countries so that their commerce may follow the channels natural to contiguous countries and be commensurate with the steady expansion of trade and industry on both sides of the boundary line. The reciprocation on the part of the 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 the negotiations, which had been temporarily suspended during the summer, resumed. In accordance with this suggestion the Secretary of State, by my direction, dispatched two representatives of the Department of State as special commissioners to Ottawa to confer with representatives of the Dominion Government. They were authorized to take such steps for formulating a reciprocal trade agreement as might be necessary and to receive and consider any propositions which the Dominion Government might care to submit. Pursuant to the instructions issued conferences were held by these commissioners with officials of the Dominion Government at Ottawa in the early part of November. The negotiations were conducted on both sides in a spirit of mutual accommodation. The discussion of the common commercial interests of the two countries had for its object a satisfactory basis for a trade arrangement which offers the prospect of a freer interchange for the products of the United States and of Canada. The conferences were adjourned to be resumed in Washington in January, when it is hoped that the aspiration of both Governments for a mutually advantageous measure of reciprocity will be realized. All these tariff negotiations, so vital to our commerce and industry, and the duty of jealously guarding the equitable and just treatment of our products, capital, and industry abroad devolve upon the Department of State. The Argentine battle-ship contracts, like the subsequent important one for Argentine railway equipment, and those for Cuban Government vessels, were secured for our manufacturers largely through the good offices of the Department of State. The efforts of that Department to secure for citizens of the United States equal opportunities in the markets of the world and to expand American commerce have been most successful. The volume of business obtained in new fields of competition and upon new lines is already very great and Congress is urged to continue to support the Department of State in its endeavors for further trade expansion. Our foreign trade merits the best support of the Government and the most earnest endeavor of our manufacturers and merchants, who, if they do not already in all cases need a foreign market, are certain soon to become dependent on it. Therefore, now is the time to secure a strong position in this field. I cannot leave this subject without emphasizing the necessity of such legislation as will make possible and convenient the establishment of American banks and branches of American banks in foreign countries. Only by such means can our foreign trade be favorably financed, necessary credits be arranged, and proper avail be made of commercial opportunities in foreign countries, and most especially in Latin America. Another instrumentality indispensable to the unhampered and natural development of American commerce is merchant marine. All maritime and commercial nations recognize the importance of this factor. The greatest commercial nations, our competitors, jealously foster their merchant marine. Perhaps nowhere is the need for rapid and direct mail, passenger and freight communication quite so urgent as between the United States and Latin America. We can secure in no other quarter of the world such immediate benefits in friendship and commerce as would flow from the establishment of direct lines Of communication with the countries of Latin America adequate to meet the requirements of a rapidly increasing appreciation of the reciprocal dependence of the countries of the Western Hemisphere upon each other's products, sympathies and assistance. I alluded to this most important subject in my last annual message; it has often been before you and I need not recapitulate the reasons for its recommendation. Unless prompt action be taken the completion of the Panama Canal will find this the only great commercial nation unable to avail in international maritime business of this great improvement in the means of the world's commercial intercourse. Quite aside from the commercial aspect, unless we create a merchant marine, where can we find the seafaring population necessary as a natural naval reserve and where could we find, in case of war, the transports and subsidiary vessels without which a naval fleet is arms without a body? For many reasons I cannot too strongly urge upon the Congress the passage of a measure by mail subsidy or other subvention adequate to guarantee the establishment and rapid development of an American merchant marine, and the restoration of the American flag to its ancient place upon the seas. Of course such aid ought only to be given under conditions of publicity of each beneficiary's business and accounts which would show that the aid received was needed to maintain the trade and was properly used for that purpose. With our increasing international intercourse, it becomes incumbent upon me to repeat more emphatically than ever the recommendation which I made in my Inaugural Address that Congress shall at once give to the Courts of the United States jurisdiction to punish as a crime the violation of the rights of aliens secured by treaty with the United States, in order that the general government of the United States shall be able, when called upon by a friendly nation, to redeem its solemn promise by treaty to secure to the citizens or subjects of that nation resident in the United States, freedom from violence and due process of law in respect to their life, liberty and property. I also strongly commend to the favorable action of the Congress the enactment of a law applying to the diplomatic and consular service the principles embodied in Section 1753 of the Revised Statutes of the United States, in the Civil Service Act of January 16, 1883, and the Executive Orders of June 27, 1906, and of November 26, 1909. The excellent results which have attended the partial application of Civil Service principles to the diplomatic and consular services are an earnest of the benefit to be wrought by a wider and more permanent extension of those principles to both branches of the foreign service. The marked improvement in the consular service during the four years since the principles of the Civil Service Act were applied to that service in a limited way, and the good results already noticeable from a similar application of civil service principles to the diplomatic service a year ago, convince me that the enactment into law of the general principles of the existing executive regulations could not fail to effect further improvement of both branches of the foreign service, offering as it would by its assurance of permanency of tenure and promotion on merit, an inducement for the entry of capable young men into the service and an incentive to those already in to put forth their best efforts to attain and maintain that degree of efficiency which the interests of our international relations and commerce demand. During many years past appeals have been made from time to time to Congress in favor of Government ownership of embassy and legation premises abroad. The arguments in favor of such ownership have been many and oft repeated and are well known to the Congress. The acquisition by the Government of suitable residences and offices for its diplomatic officers, especially in the capitals of the Latin-American States and of Europe, is so important and necessary to an improved diplomatic service that I have no hesitation in urging upon the Congress the passage of some measure similar to that favorably reported by the House Committee on Foreign Affairs on February 14, 1910 (Report No. 438), that would authorize the gradual and annual acquisition of premises for diplomatic use. The work of the Diplomatic Service is devoid of partisanship; its importance should appeal to every American citizen and should receive the generous consideration of the Congress. Every effort has been made by each department chief to reduce the estimated cost of his department for the ensuing fiscal year ending June 30, 1912. I say this in order that Congress may understand that these estimates thus made present the smallest sum which will maintain the departments, bureaus, and offices of the Government and meet its other obligations under existing law, and that a cut of these estimates would result in embarrassing the executive branch of the Government in the performance of its duties. This remark does not apply to the river and harbor estimates, except to those for expenses of maintenance and the meeting of obligations under authorized contracts, nor does it apply to the public building bill nor to the navy building program. Of course, as to these Congress could withhold any part or all of the estimates for them without interfering with the discharge of the ordinary obligations of the Government or the performance of the functions of its departments, bureaus, and offices. The final estimates for the year ending June 30, 1912, as they have been sent to the Treasury, on November 29 of this year, for the ordinary expenses of the Government, including those for public buildings, rivers and harbors, and the navy building program, amount to $630,494,013.12. This is $52,964,887.36 less than the appropriations for the fiscal year ending June 30, 1911. It is $16,883,153.44 less than the total estimates, including supplemental estimates submitted to Congress by the Treasury for the year 1911, and is $5,574,659.39 less than the original estimates submitted by the Treasury for 1911. These figures do not include the appropriations for the Panama Canal, the policy in respect to which ought to be, and is, to spend as much each year as can be economically and effectively expended in order to complete the Canal as promptly as possible, and, therefore, the ordinary motive for cutting down the expense of the Government does not apply to appropriations for this purpose. It will be noted that the estimates for the Panama Canal for the ensuing year are more than fifty-six millions of dollars, an increase of twenty millions over the amount appropriated for this year--a difference due to the fact that the estimates for 1912 include something over nineteen millions for the fortification of the Canal. Against the estimated expenditures of $630,494,013.12, the Treasury has estimated receipts for next year $680,000,000, making a probable surplus of ordinary receipts over ordinary expenditures of about $50,000,000. A table showing in detail the estimates and the comparisons referred to follows. The Treasury Department is one of the original departments of the Government. With the changes in the monetary system made from time to time and with the creation of national banks, it was thought necessary to organize new bureaus and divisions which were added in a somewhat haphazard way and resulted in a duplication of duties which might well now be ended. This lack of system and economic coordination has attracted the attention of the head of that Department who has been giving his time for the last two years, with the aid of experts and by consulting his bureau chiefs, to its reformation. He has abolished four hundred places in the civil service without at all injuring its efficiency. Merely to illustrate the character of the reforms that are possible, I shall comment on some of the specific changes that are being made, or ought to be made by legislative aid. The auditing system in vogue is as old as the Government and the methods used are antiquated. There are six Auditors and seven Assistant Auditors for the nine departments, and under the present system the only function which the Auditor of a department exercises is to determine, on accounts presented by disbursing officers, that the object of the expenditure was within the law and the appropriation made by Congress for the purpose on its face, and that the calculations in the accounts are correct. He does not examine the merits of the transaction or determine the reasonableness of the price paid for the articles purchased, nor does he furnish any substantial check upon disbursing officers and the heads of departments or bureaus with sufficient promptness to enable the Government to recoup itself in full measure for unlawful expenditure. A careful plan is being devised and will be presented to Congress with the recommendation that the force of auditors and employees under them be greatly reduced, thereby effecting substantial economy. But this economy will be small compared with the larger economy that can be effected by consolidation and change of methods. The possibilities in this regard have been shown in the reduction of expenses and the importance of methods and efficiency in the office of the Auditor for the Post Office Department, who, without in the slightest degree impairing the comprehensiveness and efficiency of his work, has cut down the expenses of his office $120,000 a year. Again, in the collection of the revenues, especially the customs revenues, a very great improvement has been effected, and further improvements are contemplated. By the detection of frauds in weighing sugar, upwards of $3,400,000 have been recovered from the beneficiaries of the fraud, and an entirely new system free from the possibilities of such abuse has been devised. The Department has perfected the method of collecting duties at the Port of New York so as to save the Government upwards of ten or eleven million dollars; and the same spirit of change and reform has been infused into the other customs offices of the country. The methods used at many places are archaic. There would seem to be no reason at all why the Surveyor of the Port, who really acts for the Collector, should not be a subordinate of the Collector at a less salary and directly under his control, and there is but little reason for the existence of the Naval Officer, who is a kind of local auditor. His work is mainly an examination of accounts which is conducted again in Washington and which results in no greater security to the Government. The Naval Officers in the various ports are Presidential appointees, many of them drawing good salaries, and those offices should be abolished or with reduced force made part of the central auditing system. There are entirely too many customs districts and too many customs collectors. These districts should be consolidated and the collectors in charge of them, who draw good salaries, many of them out of proportion to the collections made, should be abolished or treated as mere branch offices, in accordance with the plan of the Treasury Department, which will be presented for the consideration of Congress. As an illustration, the cost of collecting $1 of revenue at typical small ports like the port of York, Me., was $50.04. At the port of Annapolis, Md., it cost $309.41 to collect $1 of revenue; at Natchez, $52.76; at Alexandria. Va., $122.49. It is not essential to the preventing of smuggling that customs districts should be increased in number. The violation of the customs laws can be quite as easily prevented, and much more economically, by the revenue-cutter service and by the use of the special agent traveling force of the Treasury Department. A reorganization of the special customs agents has been perfected with a view to retaining only those who have special knowledge of the customs laws, regulations, and usual methods of evasion, and with this improvement, there will be no danger to the Government from the recommended consolidation and abolition of customs districts. An investigation of the appraising system now in vogue in New York City has shown a sacrifice of the interests of the Government by under-appraisement, which is in the course of being remedied by reorganization and the employment of competent experts. Prosecutions have been instituted growing out of the frauds there discovered and are now awaiting hearing in the Federal Courts. Very great improvements have been made in respect to the mints and assay offices. Diminished appropriations have been asked for those whose continuance is unnecessary, and this year's estimate of expenses is $326,000 less than two years ago. There is an opportunity for further saving in the abolition of several mints and assay offices that have now become unnecessary. Modern machinery has been installed there, more and better work has been done, and the appropriations have been consequently diminished. In the Bureau of Engraving and Printing, great economies have been effected. Useless divisions have been abolished with the result of saving $440,000 this year in the total expenses of the Bureau despite increased business. The Treasurer's office and that of the Division of Public Moneys in part cover the same functions and this is also true of the office of the Register and the Division of Loans and Currency. Plans for the elimination of the duplication in these offices will be presented to Congress. The office of the Comptroller of the Currency is one most important in the preservation of proper banking methods in the national banking system of the United States, and the present Comptroller has impressed his subordinates with the necessity of so conducting their investigations as to establish the principle that every bank failure is unnecessary because proper inspection and notice of threatening conditions to the responsible directors and officers can prevent it. In our public buildings we still suffer from the method of appropriation, which has been so much criticized in connection with our rivers and harbors. Some method should be devised for controlling the supply of public buildings, so that they will harmonize with the actual needs of the Government. Then, when it comes 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 Government. Post-Office buildings which are in effect warehouses for the economical handling of transportation of thousands of tons of mail have been made monumental structures, and often located far from the convenient and economical spot. In the actual construction of the buildings, a closer scrutiny of the methods employed by the Government architects or by architects employed by the Government have resulted in decided economies. It is hoped that more time will give opportunity for a more thorough reorganization. The last public building bill carried authorization for the ultimate expenditure of $33,011,500 and I approved it because of the many good features it contained, just as I approved the river and harbor bill, but it was drawn upon a principle that ought to be abandoned. It seems to me that the wiser method of preparing a public building bill would be the preparation of a report by a commission of Government experts whose duty it should be to report to Congress the Government's needs in the way of the construction of public buildings in every part of the country, just as the Army Engineers make report with reference to the utility of proposed improvements in rivers and harbors, with the added function which I have recommended for the Army Engineers of including in their recommendation the relative importance of the various projects found to be worthy of approval and execution. . As the Treasury Department is the one through which the income of the Government is collected and its expenditures are disbursed, this seems a proper place to consider the operation of the existing tariff bill, which became a law August 6, 1909. As an income-producing measure, the existing tariff bill has never been exceeded by any customs bill in the history of the country. The corporation excise tax, proportioned to the net income of every business corporation in the country, has worked well. The tax has been easily collected. Its prompt payment indicates that the incidence of the tax has not been heavy. It offers, moreover, an opportunity for knowledge by the Government of the general condition and business of all corporations, and that means by far the most important part of the business of the country. In the original act provision was made for the publication of returns. This provision was subsequently amended by Congress, and the matter left to the regulation of the President. I have directed the issue of the needed regulations, and have made it possible for the public generally to know from an examination of the record, the returns of all corporations, the stock of which is listed on any public stock exchange or is offered for sale to the general public by advertisement or otherwise. The returns of those corporations whose stock is not so listed or offered for sale are directed to be open to the inspection and examination of creditors and stockholders of the corporation whose record is sought. The returns of all corporations are subject to the inspection of any government officer or to the examination of any court, in which the return made by the corporation is relevant and competent evidence. The schedules of the rates of duty in the Payne tariff act have been subjected to a great deal of criticism, some of it just, more of it unfounded, and to much misrepresentation. The act was adopted in pursuance 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 producing the imported article abroad and the cost of producing it at home, together with such addition to that difference as might give a reasonable profit to the home producer. The chief criticism of this tariff is a charge that in respect to a number of the schedules the declared measure was not followed, but a higher difference retained or inserted by way of undue discrimination in favor of certain industries and manufactures. Little, if any, of the criticism of the tariff has been directed against the protective principle above stated. The time in which the tariff was prepared undoubtedly was so short as to make it impossible for the Congress and its experts to acquire all the information necessary strictly to conform to the declared measure. In order to avoid criticism of this kind in the future and for the .purpose of more nearly conforming to the party promise, Congress at its last session made provision at my request for the continuance of a board created under the authority of the maximum and minimum clause of the tariff bill, and authorized this board to expend the money appropriated under my direction for the ascertainment of the cost of production at home and abroad of the various articles included in the schedules of the tariff. The tariff board thus appointed and authorized has been diligent in preparing itself for the necessary investigations. The hope of those who have advocated the use of this board for tariff purposes is that the question of the rate of a duty imposed shall become more of a business question and less of a political question, to be ascertained by experts of long training and accurate' knowledge. The halt in business and the shock to business, due to the announcement that a new tariff bill is to be prepared and put in operation, will be avoided by treating the schedules one by one as occasion shall arise for a change in the rates of each, and only after a report upon the schedule by the tariff board competent to make such report. It is not likely that the board will be able to make a report during the present session of Congress on any of the 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 opening of the new Congress, or at least during the session of that Congress, to bring to its attention the facts in regard to those schedules in the present tariff that may prove to need amendment. The carrying out of this plan, of course, involves the full cooperation of Congress in limiting the consideration in tariff matters to one schedule at a time, because if a proposed amendment to a tariff bill is to involve a complete consideration of all the schedules and another revision, then we shall only repeat the evil from which the business of this country has in times past suffered most grievously by stagnation and uncertainty, pending a resettlement of a law affecting all business directly or indirectly. I can not too much emphasize the importance and benefit of the plan above proposed for the treatment of the tariff. It facilitates the removal of noteworthy defects in an important law without a disturbance of business prosperity, which is even more important to the happiness and the comfort of the people than the elimination of instances of injustice in the tariff. The inquiries which the members of the Tariff Board made during the last summer into the methods pursued by other Governments with reference to the fixing of tariffs and the determination of their effect upon trade, show that each Government maintains an office or bureau, the officers and employees of which have made their life work the study of tariff matters, of foreign and home prices and cost of articles imported, and the effect of the tariff upon trade, so that whenever a change is thought to be necessary in the tariff law this office is the source of the most reliable information as to the propriety of the change and its effect. I am strongly convinced that we need in this Government just such an office, and that it can be secured by making the Tariff Board already appointed a permanent tariff commission, with such duties, powers, and emoluments as it may seem wise to Congress to give. It has been proposed to enlarge the board from three to five. The present number is convenient, but I do not know that an increase of two members would be objectionable. Whether or not the protective policy is to be continued, and the degree of protection to be accorded to our home industries, are questions which the people must decide through their chosen representatives; but whatever policy is adopted, it is clear that the necessary legislation should be based on an impartial, thorough, and continuous study of the facts. The method of impartial scientific study by experts as a preliminary to legislation, which I hope to see ultimately adopted as our fixed national policy with respect to the tariff, rivers and harbors, waterways, and public buildings, is also being pursued by the nonpartisan Monetary Commission of Congress. An exhaustive and most valuable study of the banking and currency systems of foreign countries has been completed. A comparison of the business methods and institutions of our powerful and successful commercial rivals with our own is sure to be of immense value. I urge upon Congress the importance of a nonpartisan and disinterested study and consideration of our banking and currency system. It is idle to dream of commercial expansion, and of the development of our national trade on a scale that measures up to our matchless opportunities, unless we can lay a solid foundation in a sound and enduring banking and currency system. The problem is not partisan, is not sectional--it is national. The War Department has within its jurisdiction the management of the Army, and, in connection therewith, the coast defenses; the government of the dependencies of the Philippines and of Porto Rico; the recommendation of plans for the improvement of harbors and waterways, and their execution when adopted; and, by virtue of an executive order, the supervision of the construction of the Panama Canal. The Army of the United States is a small body compared with the total number of people for the preservation of whose peace and good order it is a last resource. The Army now numbers about 80,000 men, of whom about 18,000 are engaged in the Coast Artillery and detailed to the management and use of the guns in the forts and batteries that protect our coasts. The rest of the Army, or about 60,000, is the mobile part of our national forces and is divided into 31 regiments of infantry, including the Porto Rican regiment, 15 regiments of cavalry, 6 regiments of field artillery, a corps of ordnance, of engineers, and of signal, a quartermaster's department, a commissary department, and a medical corps. The general plan for an army of the United States at peace should be that of a skeleton organization with an excess of trained officers and thus capable of rapid enlargement by enlistments, to be supplemented in emergency by the national militia and a volunteer force. In some measure this plan has been adopted in the very large proportion of cavalry and field artillery as compared with infantry in the present army and on a peace basis. An infantry force can be trained in six months; a cavalry or a light artillery force not under one and one-half or two years; hence the importance of having ready a larger number of the more skilled soldiers. The militia system, for which Congress by the Constitution is authorized to provide, was developed by the so-called Dick law, under which the discipline, the tactics, the drill, the rank, the uniform, and the various branches of the militia are assimilated as far as possible to those of the Regular Army. Under the militia law, as the Constitution provides, the Governors of the States appoint the militia officers, but, by appropriations from Congress, States have been induced to comply with the rules of assimilation between the Regular Army and the militia, so that now there is a force, the efficiency of which differs in different States, which could be incorporated under a single command with the Regular Army, and which for some time each year receives the benefit of drill and maneuvers with conditions approximating actual military service, under the supervision of Regular Army officers. In the Army of the United States, in addition to the regular forces and the militia forces which may be summoned to the defense of the Nation by the President, there is also the volunteer force, which made up a very large part of the army in the Civil War, and which in any war of long continuance would become its most important constituent. There is an act which dates from the Civil War, known as the Volunteer Act, which makes provision for the enlistment of volunteers in the Army of the United States in time of war. This was found to be so defective in the Philippine War that a special act for the organization of volunteer regiments to take part in that war was adopted, and it was much better adapted to the necessities of the case. There is now pending in Congress a bill repealing the present Volunteer Act and making provision for the organization of volunteer forces in time of war, which is admirably adapted to meet the exigencies which would be then presented. The passage of the bill would not entail a dollar's expense upon the Government at this time, or in the future, until war comes, but when war does come the methods therein directed are in accordance with the best military judgment as to what they ought to be, and the act would prevent the necessity for the discussion of new legislation and the delays incident to its consideration and adoption. I earnestly urge the passage of this Volunteer Bill. I further recommend that Congress establish a commission to determine as early as practicable a comprehensive policy for the organization, mobilization and administration of the Regular Army, the organized militia, and the volunteer forces in the event of war. One of the great difficulties in the prompt organization and mobilization of militia and volunteer forces is the absence of competent officers of the rank of captain to teach the new army, by the unit of the company, the business of being soldiers and of taking care of themselves so as to render effective service. This need of army officers can only be supplied by provisions of law authorizing the appointment of a greater number of army officers than are needed to supply the commands of regular army troops now enlisted in the service. There are enough regular army officers to command the troops now enlisted, but Congress has authorized, and the Department has followed the example of Congress and exercised the authority conferred by detailing these army officers to duty other than that of the command of troops. For instance, there are a large number of army officers assigned to duty with military colleges or in colleges in which military training is given. Then a large number of officers are assigned to General Staff duty, and there are various other places to which army officers can be and are legally assigned, which take them away from their regiments and companies. In order that the militia of each State should be properly drilled and made more like the regular army, regular army officers should be detailed to assist the Adjutant-General of each State in the supervision of the state militia; but this is impossible unless provision is made by Congress for a very considerable increase in the number of company and field officers of the Army. A bill is pending in Congress for this purpose, and I earnestly hope that, in the interest of the proper development of a republican army, an army, small in the time of peace but possible of prompt and adequate enlargement in time of war, shall become possible under the laws of the United States. A bill, the strong argument for which can be based on the ground quite similar to that of the increased officers bill, is a bill for the increase of sixty in the Army Engineers. The Army Engineers are largely employed in the expenditure of the moneys appropriated for the improvement of rivers and harbors and in the construction of the Panama Canal. This, in addition to their military duties, which include the building of fortifications both on our coasts and in our dependencies, requires many more engineers than the Army has, and public works, civil and military, are, therefore, much delayed. I earnestly recommend the passage of this bill, which passed the House at the last session and is now pending in the Senate. . I have directed that the estimates for appropriation for the improvement of coast defenses in the United States should be reduced to a minimum, while those for the completion of the needed fortifications at Corregidor in the Philippine Islands and at Pearl Harbor in the Hawaiian Islands should be expedited as much as possible. The proposition to make Olongapo and Subig Bay the naval base for the Pacific was given up, and it is to be treated merely as a supply station, while the fortifications in the Philippines are to be largely confined to Corregidor Island and the adjacent islands which command entrance to Manila Bay and which are being rendered impregnable from land and sea attack. The Pacific Naval base has been transferred to Pearl Harbor in the Hawaiian Islands. This necessitates the heavy fortification of the harbor and the establishment of an important military station near Honolulu. I urge that all the estimates made by the War Department for these purposes be approved by Congressional appropriation. During the last summer, at my request, the Secretary of War visited the Philippine Islands and has described his trip in his report. He found the Islands in a state of tranquillity and growing prosperity, due largely to the change in the tariff laws, which has opened the markets of America to the products of the Philippines, and has opened the Philippine markets to American manufactures. The rapid increase in the trade between the two countries is shown in the following table: [Exclusive of gold and silver.] NOTE.--Latest monthly returns show exports for the year ending August, 1910, to the United States $20,035,902, or 49 per cent of the $41,075,738 total, against 031,275 to the United States, or 34 per cent of the $32,183,871 total for the year ending August, 1909. [Exclusive of gold and silver and government supplies.] NOTE.--Latest monthly returns show imports for the year ending August, 1910, from the United States $11,615,982, or 30 per cent of the $39,025,667 total, against $5,193,419 from the United States, or 18 per cent of the $28,948,011 total for the year ending August, 1909. The year has been one of prosperity and progress in Porto Rico. Certain political changes are embodied in the bill "To Provide a Civil Government for Porto Rico and for other Purposes," which passed the House of Representatives on June 15, 1910, at the last session of Congress, and is now awaiting the action of the Senate. The importance of those features of this bill relating to public health and sanitation can not be overestimated. The removal from politics of the judiciary by providing for the appointment of the municipal judges is excellent, and I recommend that a step further be taken by providing therein for the appointment of secretaries and marshals of these courts. The provision in the bill for a partially elective senate, the number of elective members being progressively increased, is of doubtful wisdom, and the composition of the senate as provided in the bill when introduced in the House, seems better to meet conditions existing in Porto Rico. This is an important measure, and I recommend its early consideration and passage. I have already expressed my opinion to Congress in respect to the character of the river and harbor bills which should be enacted into law; and I have exercised as much power as I could under the law in directing the Chief of Engineers to make his report to Congress conform to the needs of the committee framing such a bill in determining which of the proposed improvements is the more important and ought to be completed first, and promptly. At the instance of Colonel Goethals, the Army Engineer officer in charge of the work on the Panama Canal, I have just made a visit to the Isthmus to inspect the work done and to consult with him on the ground as to certain problems which are likely to arise in the near future. The progress of the work is most satisfactory. If no unexpected obstacle presents itself, the canal will be completed well within the time fixed by Colonel Goethals, to wit, January 1, 1915, and within the estimate of cost, $375,000,000. Press reports have reached the United States from time to time giving accounts of slides of earth of very large yardage in the Culebra Cut and elsewhere along the line, from which it might be inferred that the work has been much retarded and that the time of completion has been necessarily postponed. The report of Doctor Hayes, of the Geological Survey, whom I sent within the last month to the Isthmus to make an investigation, shows that this section of the Canal Zone is composed of sedimentary rocks of rather weak structure and subject to almost immediate disintegration when exposed to the air. Subsequent to the deposition of these sediments, igneous rocks, harder and more durable, have been thrust into them, and being cold at the time of their intrusion united but indifferently with the sedimentary rock at the contacts. The result of these conditions is that as the cut is deepened, causing unbalanced pressures, slides from the sides of the cut have occurred. These are in part due to the flowing of surface soil and decomposed sedimentary rocks upon inclined surfaces of the underlying undecomposed rock and in part by the crushing of structurally weak beds under excessive pressure. These slides occur on one side or the other of the cut through a distance of 4 or 5 miles, and now that their character is understood, allowance has been made in the calculations of yardage for the amount of slides which will have to be removed and the greater slope that will have to be given to the bank in many places in order to prevent their recurrence. Such allowance does not exceed ten millions of yards. Considering that the number of yards removed from this cut on an average of each month through the year is 1,300,000, and that the total remaining to be excavated, including slides, is about 30,000,000 yards, it is seen that this addition to the excavation does not offer any great reason for delay. While this feature of the material to be excavated in the cut will not seriously delay or obstruct the construction of a canal of the lock type, the increase of excavation due to such slides in the cut made 85 feet deeper for a sea-level canal would certainly have been so great as to delay its completion to a time beyond the patience of the American people. Among questions arising for present solution is whether the Canal shall be fortified. I have already stated to the Congress that I strongly favor fortification and I now reiterate this opinion and ask your consideration of the subject in the light of the report already before you made by a competent board. If, in our discretion, we believe modern fortifications to be necessary to the adequate protection and policing of the Canal, then it is our duty to construct them. We have built the Canal. It is our property. By convention we have indicated our desire for, and indeed undertaken, its universal and equal use. It is also well known that one of the chief objects in the construction of the Canal has been to increase the military effectiveness of our Navy. Failure to fortify the Canal would make the attainment of both these aims depend upon the mere moral obligations of the whole international public--obligations which we would be powerless to enforce and which could never in any other way be absolutely safeguarded against a desperate and irresponsible enemy. Another question which arises for consideration and possible legislation is the question of tolls in the Canal. This question is necessarily affected by the probable tonnage which will go through the Canal. It is all a matter of estimate, but one of the government commission in 1900 investigated the question and made a report. He concluded that the total tonnage of the vessels employed in commerce that could use the Isthmian Canal in 1914 would amount to 6,843,805 tons net register, and that this traffic would increase 25.1 per cent per decade; that it was not probable that all the commerce included in the totals would at once abandon the routes at present followed and make use of the new Canal, and that it might take some time, perhaps two years, to readjust trade with reference to the new conditions which the Canal would establish. He did not include, moreover, the tonnage of war vessels, although it is to be inferred that such vessels would make considerable use of the Canal. In the matter of tolls he reached the conclusion that a dollar a net ton would not drive business away from the Canal, but that a higher rate would do so. In determining what the tolls should be we certainly ought not to insist that they should at once amount to enough to pay the interest on the investment of $400,000,000 which the United States has made in the construction of the Canal. We ought not to do this, first, because the benefit to be derived by the United States from this expenditure is not to be measured solely by a return upon the investment. If it were, then the construction might well have been left to private enterprise. It was because an adequate return upon the money invested could not be expected immediately, or in the near future, and because there were peculiar political advantages to be derived from the construction of the Canal that it fell to the Government to advance the money and perform the work. In addition to the benefit to our naval strength, the Canal greatly increases the trade facilities of the United States. It will undoubtedly cheapen the rates of transportation in all freight between the Eastern and Western seaboard. Then, if we are to have a world canal, and if we are anxious that the world's trade shall use it, we must recognize that we have an active competitor in the Suez Canal and that there are other means of carriage between the two oceans--by the Tehuantepec Railroad and by other railroads and freight routes in Central America. In all these cases the question whether the Panama Canal is to be used and its tonnage increased will be determined mainly by the charge for its use. My own impression is that the tolls ought not to exceed $1 per net ton. On January 1, 1911, the tolls in the Suez Canal are to be 7 francs and 25 centimes for I net ton by Suez Canal measurement, which is a modification of Danube measurement A dollar a ton will secure under the figures above a gross income from the Panama Canal of nearly $7,000,000. The cost of maintenance and operation is estimated to exceed $3,000,000. Ultimately, of course, with the normal increase in trade, we hope the income will approximate the interest charges upon the investment. The inquiries already made of the Chief Engineer of the Canal show that the present consideration of this question is necessary in order that the commerce of the world may have time to adjust itself to the new conditions resulting from the opening of this new highway. On the whole I should recommend that within certain limits the President be authorized to fix the tolls of the Canal and adjust them to what seems to be commercial necessity. The next question that arises is as to the maintenance, management, and general control of the canal after its completion. It should be premised that it is an essential part of our navy establishment to have the coal, oil and other ship supplies, a dry dock, and repair shops, conveniently located with reference to naval vessels passing through the canal. Now, if the Government, for naval purposes, is to undertake to furnish these conveniences to the navy, and they are conveniences equally required by commercial vessels, there would seem to be strong reasons why the Government should take over and include in its management the furnishing, not only to the navy but to the public, dry-dock and repair-shop facilities, and the sale of coal, oil, and other ship supplies. The maintenance of a lock canal of this enormous size in a sparsely populated country and in the tropics, where the danger from disease is always present, requires a large and complete and well-trained organization with full police powers, exercising the utmost care. The visitor to the canal who is impressed with the wonderful freedom from tropical diseases on the Isthmus must not be misled as to the constant vigilance that is needed to preserve this condition. The vast machinery of the locks, the necessary amount of dredging, the preservation of the banks of the canal from slides, the operation and the maintenance of the equipment of the railway--will all require a force, not, of course, to be likened in any way to the present organization for construction, but a skilled body of men who can keep in a state of usefulness this great instrument of commerce. Such an organization makes it easy to include within its functions the furnishing of dry-dock, fuel, repairs and supply facilities to the trade of the world. These will be more essential at the Isthmus of Panama than they are at Port Said or Suez, because there are no depots for coal, supplies, and other commercial necessities within thousands of miles of the Isthmus. Another important reason why these ancillary duties may well be undertaken by the Government is the opportunity for discrimination between patrons of the canal that is offered where private concessions are granted for the furnishing of these facilities. Nothing would create greater prejudice against the canal than the suspicion that certain lines of traffic were favored in the furnishing of supplies or that the supplies were controlled by any large interest that might have a motive for increasing the cost of the use of the canal. It may be added that the termini are not ample enough to permit the fullest competition in respect to the furnishing of these facilities and necessities to the world's trade even if it were wise to invite such competition and the granting of the concession would necessarily, under these circumstances, take on the appearance of privilege or monopoly. I can not close this reference to the canal without suggesting as a wise amendment to the interstate commerce law a provision prohibiting interstate commerce railroads from owning or controlling ships engaged in the trade through the Panama Canal. I believe such a provision may be needed to save to the people of the United States the benefits of the competition in trade between the eastern and western seaboards which this canal was constructed to secure. The duties of the Department of Justice have been greatly increased by legislation of Congress enacted in the interest of the general welfare of the people and extending its activities into avenues plainly within its constitutional jurisdiction, but which it has not been thought wise or necessary for the General Government heretofore to occupy. I am glad to say that under the appropriations made for the Department, the Attorney-General has so improved its organization that a vast amount of litigation of a civil and criminal character has been disposed of during the current year. This will explain the necessity for slightly increasing the estimates for the expenses of the Department. His report shows the recoveries made on behalf of the Government, of duties fraudulently withheld, public lands improperly patented, fines and penalties for trespass, prosecutions and convictions under the antitrust law, and prosecutions under the interstate-commerce law. I invite especial attention to the prosecutions under the Federal law of the so-called "bucket shops," and of those schemes to defraud in which the use of the mail is an essential part of the fraudulent conspiracy, prosecutions which have saved ignorant and weak members of the public and are saving them hundreds of millions of dollars. The violations of the antitrust law present perhaps the most important litigation before the Department, and the number of cases filed shows the activity of the Government in enforcing that statute. In a special message last year I brought to the attention of Congress the propriety and wisdom of enacting a general law providing for the incorporation of industrial and other companies engaged in interstate commerce, and I renew my recommendation in that behalf. I invite the attention of Congress to the great number of claims which, at the instance of Congress, have been considered by the Court of Claims and decided to be valid claims against the Government. The delay that occurs in the payment of the money due under the claims injures the reputation of the Government as an honest debtor, and I earnestly recommend that those claims which come to Congress with the judgment and approval of the Court of Claims should be promptly paid. One great crying need in the United States is cheapening the cost of litigation by simplifying judicial procedure and expediting final judgment. Under present conditions the poor man is at a woeful disadavantage in a legal contest with a corporation or a rich opponent. The necessity for the reform exists both in the United States courts and in all State courts. In order to bring it about, however, it naturally falls to the General Government by its example to furnish a model to all States. A legislative commission appointed by joint resolution of Congress to revise the procedure in the United States courts has as yet made no report. Under the law the Supreme Court of the United States has the power and is given the duty to frame the equity rules of procedure which are to obtain in the Federal courts of first instance. In view of the heavy burden of pressing litigation which that Court has had to carry, with one or two of its members incapacitated through ill health, it has not been able to take up problems of improving the equity procedure, which has practically remained the same since the organization of the Court in 1789. It is reasonable to expect that with all the vacancies upon the Court filled, it will take up the question of cheapening and simplifying the procedure in equity in the courts of the United States. The equity business is much the more important in the Federal courts, and I may add much the more expensive. I am strongly convinced that the best method of improving judicial procedure at law is to empower the Supreme Court to do it through the medium of the rules of the court, as in equity. This is the way in which it has been done in England, and thoroughly done. The simplicity and expedition of procedure in the English courts today make a model for the reform of other systems. Several of the Lord Chancellors of England and of the Chief Justices have left their lasting impress upon the history of their country by their constructive ability in proposing and securing the passage of remedial legislation effecting law reforms. I can not conceive any higher duty that the Supreme Court could perform than in leading the way to a simplification of procedure in the United States courts. No man ought to have, as a matter of right, a review of his case by the Supreme Court. He should be satisfied by one hearing before a court of first instance and one review by a court of appeals. The proper and chief usefulness of a Supreme Court, and especially of the Supreme Court of the United States, is, in the cases which come before it, so to expound the law, and especially the fundamental law -- the Constitution -- as to furnish precedents for the inferior courts in future litigation and for the executive officers in the construction of statutes and the performance of their legal duties. Therefore, any provisions for review of cases by the Supreme Court that cast upon that Court the duty of passing on questions of evidence and the construction of particular forms of instruments, like indictments, or wills, or contracts, decisions not of general application or importance, merely clog and burden the Court and render more difficult its higher function, which makes it so important a part of the framework of our Government. The Supreme Court is now carrying an unnecessary burden of appeals of this kind, and I earnestly urge that it be removed. The statutes respecting the review by the Supreme Court of the United States of decisions of the Court of Appeals of the District of Columbia ought to be so amended as to place that court in the same position with respect to the review of its decisions as that of the various United States Circuit Courts of Appeals. The act of March 2, 1907, authorizing appeals by the Government from certain judgments in criminal cases where the defendant has not been put in jeopardy, within the meaning of the Constitution, should be amended so that such appeals should be taken to the Circuit Courts of Appeals instead of to the Supreme Court in all cases except those involving the construction of the Constitution or the constitutionality of a statute, with the same power in the Supreme Court to review on certiorari as is now exercised by that court over determinations of the several Circuit Courts of Appeals. Appeals in copyright cases should reach final judgment in the courts of appeals instead of the Supreme Court as now. The decision of the courts of appeals should be made final also in all cases wherein jurisdiction rests on both diverse citizenship and the existence of a federal question, and not as now be reviewable in the Supreme Court when the case involves more than one thousand dollars. Appeals from the United States Court in Porto Rico should run to the Circuit Court of Appeals of the third circuit instead of to the Supreme Court. These suggested changes would, I am advised, relieve the Supreme Court of the consideration of about 100 cases annually. The American Bar Association has had before it the question of reducing the burden of litigation involved in reversals on review and new trials or re-hearings and in frivolous appeals in habeas corpus and criminal cases. Their recommendations have been embodied in bills now pending in Congress. The recommendations are not radical, but they will accomplish much if adopted into law, and I earnestly recommend the passage of the bills embodying them. I wish to renew my urgent recommendation made in my last Annual Message in favor of the passage of a law which shall regulate the issuing of injunctions in equity without notice in accordance with the best practice now in vogue in the courts of the United States. I regard this of especial importance, first because it has been promised, and second because it will deprive those who now complain of certain alleged abuses in the improper issuing of injunctions without notice of any real ground for further amendment and will take away all semblance of support for the extremely radical legislation they propose, which will be most pernicious if adopted, will sap the foundations of judicial power, and legalize that cruel social instrument, the secondary boycott. I further recommend to Congress the passage of the bill now pending for the increase in the salaries of the Federal Judges, by which the Chief Justice of the United States shall receive $17,500 and the Associate Justices of the Supreme Court $17,000; the Circuit Judges constituting the Circuit Court of Appeals shall receive $10,000, and the District Judges $9,000. These judges exercise a wise jurisdiction and their duties require of them a profound knowledge of the law, great ability in the dispatch of business, and care and delicacy in the exercise of their jurisdiction so as to avoid conflict whenever possible between the Federal and the State courts. The positions they occupy ought to be filled by men who have shown the greatest ability in their professional work at the bar, and it is the poorest economy possible for the Government to pay salaries so low for judicial service as not to be able to command the best talent of the legal profession in every part of the country. The cost of living is such, especially in the large cities, that even the salaries fixed in the proposed bill will enable the incumbents to accumulate little, if anything, to support their families after their death. Nothing is so important to the preservation of our country and its beloved institutions as the maintenance of the independence of the judiciary, and next to the life tenure an adequate salary is the most material contribution to the maintenance of independence on the part of our Judges. At its last session Congress made provision for the establishment of savings banks by the Post-Office Department of this Government, by which, under the general control of trustees, consisting of the Postmaster-General, the Secretary of the Treasury and the Attorney-General, the system could be begun in a few cities and towns, and enlarged to cover within its operations as many cities and towns and as large a part of the country as seemed wise. The initiation and establishment of such a system has required a great deal of study on the part of the experts in the Post-Office and Treasury Departments, but a system has now been devised which is believed to be more economical and simpler in its operation than any similar system abroad. Arrangements have been perfected so that savings banks will be opened in some cities and towns on the 1st of January, and there will be a gradual extension of the benefits of the plan to the rest of the country. As I have said, the Post-Office Department is a great business department, and I am glad to note the fact that under its present management principles of business economy and efficiency are being applied. For many years there has been a deficit in the operations of the Post-Office Department which has been met by appropriation from the Treasury. The appropriation estimated for last year from the Treasury over and above the receipts of the Department was $17,500,000. I am glad to record the fact that of that $17,500,000 estimated for, $11,500,000 were saved and returned to the Treasury. The personal efforts of the Postmaster-General secured the effective cooperation of the thousands of postmasters and other postal officers throughout the country in carrying out his plans of reorganization and retrenchment. The result is that the Postmaster-General has been able to make his estimate of expenses for the present year so low as to keep within the amount the postal service is expected to earn. It is gratifying to report that the reduction in the deficit has been accomplished without any curtailment of postal facilities. On the contrary the service has been greatly extended during the year in all its branches. A principle which the Postmaster-General has recommended and sought to have enforced in respect to all appointments has been that those appointees who have rendered good service should be reappointed. This has greatly strengthened the interest of postmasters throughout the country in maintaining efficiency and economy in their offices, because they believed generally that this would secure for them a further tenure. Upon the recommendation of the Postmaster-General, I have included in the classified service all assistant postmasters, and I believe that this giving a secure tenure to those who are the most important subordinates of Postmasters will add much to the efficiency of their offices and an economical administration. A large number of the fourth-class postmasters are now in the classified service. I think it would be wise to put in the classified service the first, second, and third class postmasters. It is more logical to do this than to classify the fourth-class postmasters, for the reason that the fourth-class post-offices are invariably small, and the postmasters are necessarily men who must combine some other business with the postmastership, whereas the first, second, and third class postmasters are paid a sufficient amount to justify the requirement that they shall have no other business and that they shall devote their attention to their post-office duties. To classify first, second, and third class postmasters would require the passage of an act changing the method of their appointment so as to take away the necessity for the advice and consent of the Senate. I am aware that this is inviting from the Senate a concession in respect to its quasi executive power that is considerable, but I believe it to be in the interest of good administration and efficiency of service. To make this change would take the postmasters out of politics; would relieve Congressmen who now are burdened with the necessity of making recommendations for these places of a responsibility that must be irksome and can create nothing but trouble; and it would result in securing from postmasters greater attention to business, greater fidelity, and consequently greater economy and efficiency in the post-offices which they conduct. The unrestricted manner in which the franking privilege is now being used by the several branches of the Federal service and by Congress has laid it open to serious abuses, a fact clearly established through investigations recently instituted by the Department. While it has been impossible without a better control of franking to determine the exact expense to the Government of this practice, there can be no doubt that it annually reaches into the millions. It is believed that many abuses of the franking system could be prevented, and consequently a marked economy effected, by supplying through the agencies of the postal service special official envelopes and stamps for the free mail of the Government, all such envelopes and stamps to be issued on requisition to the various branches of the Federal service requiring them, and such records to be kept of all official stamp supplies as will enable the Post-Office Department to maintain a proper postage account covering the entire volume of free Government mail. As the first step in the direction of this reform, special stamps and stamped envelopes have been provided for use instead of franks in the free transmission of the official mail resulting from the business of the new postal savings system. By properly recording the issuance of such stamps and envelopes accurate records can be kept of the cost to the Government of handling the postal savings mail, which is certain to become an important item of expense and one that should be separately determined. In keeping with this plan it is hoped that Congress will authorize the substitution of special official stamps and stamped envelopes for the various forms of franks now used to carry free of postage the vast volume of Departmental and Congressional mail matter. During the past year methods of accounting similar to those employed in the most progressive of our business establishments have been introduced in the postal service and nothing has so impeded the Department's plan in this regard as the impossibility of determining with any exactness how far the various expenses of the postal service are increased by the present unrestricted use of the franking privilege. It is believed that the adoption of a more exact method of dealing with this problem as proposed will prove to be of tremendous advantage in the work of placing the postal service on a strictly businesslike basis. In my last Annual Message I invited the attention of Congress to the inadequacy of the postal rate imposed upon second-class mail matter in so far as that includes magazines, and showed by figures prepared by experts of the Post-Office Department that the Government was rendering a service to the magazines, costing many millions in excess of the compensation paid. An answer was attempted to this by the representatives of the magazines, and a reply was filed to this answer by the Post-Office Department. The utter inadequacy of the answer, considered in the light of the reply of the Post-Office Department, I think must appeal to any fair-minded person. Whether the answer was all that could be said in behalf of the magazines is another question. I agree that the question is one of fact; but I insist that if the fact is as the experts of the Post-Office Department show, that we are furnishing to the owners of magazines a service worth millions more than they pay for it, then justice requires that the rate should be increased. The increase in the receipts of the Department resulting from this change may be devoted to increasing the usefulness of the Department in establishing a parcels post and in reducing the cost of first-class postage to one cent. It has been said by the Postmaster-General that a fair adjustment might be made under which the advertising part of the magazine should be charged for at a different and higher rate from that of the reading matter. This would relieve many useful magazines that are not circulated at a profit, and would not shut them out from the use of the mails by a prohibitory rate. With respect to the parcels post, I respectfully recommend its adoption on all rural-delivery routes, and that 11 pounds--the international limit--be made the limit of carriage in such post, and this, with a view to its general extension when the income of the Post-Office will permit it and the Postal Savings Banks shall have been fully established. The same argument is made against the parcels post that was made against the postal savings bank--that it is introducing the Government into a business which ought to be conducted by private persons, and is paternalism. The Post-Office Department has a great plant and a great organization, reaching into the most remote hamlet of the United States, and with this machinery it is able to do a great many things economically that if a new organization were necessary it would be impossible to do without extravagant expenditure. That is the reason why the postal savings bank can be carried on at a small additional cost, and why it is possible to incorporate at a very inconsiderable expense a parcels post in the rural-delivery system. A general parcels post will involve a much greater outlay. In the last annual report of the Secretary of the Navy and in my Annual Message, attention was called to the new detail of officers in the Navy Department by which officers of flag rank were assigned to duty as Aides to the Secretary in respect to naval operations, personnel, inspection, and material. This change was a substantial compliance with the recommendation of the Commission on Naval Reorganization, headed by Mr. Justice Moody, and submitted to President Roosevelt on February 26, 1909. Through the advice of this committee of line officers, the Secretary is able to bring about a proper coordination of all the branches of the naval department with greater military efficiency. The Secretary of the Navy recommends that this new organization be recognized by legislation and thus made permanent. I concur in the recommendation. The Secretary, in view of the conclusions of a recent Court of Inquiry on certain phases of Marine Corps administration, recommends that the Major-General Commandant of the Marine Corps be appointed for a four years' term, and that officers of the Adjutant and Inspector's department be detailed from the line. He also asks for legislation to improve the conditions now existing in the personnel of officers of the Navy, particularly with regard to the age and experience of flag officers and captains, and points out that it is essential to the highest efficiency of the Navy that the age of our officers be reduced and that flag officers, particularly, should gain proper experience as flag officers, in order to enable them to properly command fleets. I concur in the Secretary's recommendations. I commend to your attention the report of the Secretary on the change in the system of cost accounting in navy-yards, and also to the history of the naval supply fund and the present conditions existing in regard to that matter. Under previous practice and what now seems to have been an erroneous construction of the law, the supply fund of the navy was increased from $2,700,000 to something over $14,000,000, and a system of accounting was introduced which prevented the striking of a proper balance and a knowledge of the exact cost of maintaining the naval establishment. The system has now been abandoned and a Naval Supply Account established by law July 1, 1910. The Naval Supply fund of $2,700,000 is now on deposit in the Treasury to the credit of the Department. The Secretary recommends that the Naval Supply Account be made permanent by law and that the $2,700,000 of the naval supply fund be covered into the Treasury as unnecessary, and I ask for legislative authority to do this. This sum when covered into the Treasury will be really a reduction in the recorded Naval cost for this year. The estimates of the Navy Department are $5,000,000 less than the appropriations for the same purpose last year, and included in this is the building program of the same amount as that submitted for your consideration last year. It is merely carrying out the plan of building two battleships a year, with a few needed auxiliary vessels. I earnestly hope that this program will be adopted. The Secretary of the Navy has given personal examination to every navy-yard and has studied the uses of the navy-yards with reference to the necessities of our fleet. With a fleet considerably less than half the size of that of the British navy, we have shipyards more than double the number, and there are several of these shipyards, expensively equipped with modern machinery, which after investigation the Secretary of the Navy believes to be entirely useless for naval purposes. He asks authority to abandon certain of them and to move their machinery to other places where it can be made of use. In making these recommendations the Secretary is following directly along progressive lines which have been adopted in our great commercial and manufacturing consolidations in this country; that is, of dismantling unnecessary and inadequate plants and discontinuing their existence where it has been demonstrated that it is unprofitable to continue their maintenance at an expense not commensurate to their product. The Secretary points out that the most important naval base in the West Indies is Guantanamo, in the southeastern part of Cuba. Its geographical situation is admirably adapted to protect the commercial paths to the Panama Canal, and he shows that by the expenditure of less than half a million dollars, with the machinery which he shall take from other navy-yards, he can create a naval station at Guantanamo of sufficient size and equipment to serve the purpose of an emergency naval base. I earnestly join in the recommendation that he be given the authority which he asks. I am quite aware that such action is likely to arouse local opposition; but I conceive it to be axiomatic that in legislating in the interest of the Navy, and for the general protection of the country by the Navy, mere local pride or pecuniary interest in the establishment of a navy-yard or station ought to play no part. The recommendation of the Secretary is based upon the judgment of impartial naval officers, entirely uninfluenced by any geographical or sectional considerations. I unite with the Secretary in the recommendation that an appropriation be made to construct a suitable crypt at Annapolis for the custody of the remains of John Paul Jones. . The complete success of our country in Arctic exploration should not remain unnoticed. For centuries there has been friendly rivalry in this field of effort between the foremost nations and between the bravest and most accomplished men. Expeditions to the unknown North have been encouraged by enlightened governments and deserved honors have been granted to the daring men who have conducted them. The unparalleled accomplishment of an American in reaching the North Pole, April 6, 1909, approved by critical examination of the most expert scientists, has added to the distinction of our navy, to which he belongs, and reflects credit upon his country. His unique success has received generous acknowledgment from scientific bodies and institutions of learning in Europe and America. I recommend fitting recognition by Congress of the great achievement of Robert Edwin Peary. The Secretary of the Interior recommends a change of the law in respect to the procedure in adjudicating claims for lands, by which appeals can be taken from the decisions of the Department to the Court of Appeals of the District of Columbia for a judicial consideration of the rights of the claimant. This change finds complete analogy in the present provision for appeals from the decisions of the Commissioner of Patents. The judgments of the court in such cases would be of decisive value to land claimants generally and to the Department of the Interior in the administration of the law, would enable claimants to bring into Court the final consideration of issues as to the title to Government land and would, I think, obviate a good deal of the subsequent litigation that now arises in our Western courts. The bill is pending, I believe, in the House, having been favorably reported from the Committee on Public Lands, and I recommend its enactment. One of the difficulties in the Interior Department and in the Land Office has been the delays attendant upon the consideration by the Land Office and the Secretary of the Interior of claims for patents of public lands to individuals. I am glad to say that under the recent appropriations of the Congress and the earnest efforts of the Secretary and his subordinates, these arrears have been disposed of, and the work of the Department has been brought more nearly up to date in respect to the pending business than ever before in its history. Economies have been effected where possible without legislative assistance, and these are shown in the reduced estimates for the expenses of the Department during the current fiscal year and during the year to come. . The subject of the conservation of the public domain has commanded the attention of the people within the last two or three years. There is no need for radical reform in the methods of disposing of what are really agricultural lands. The present laws have worked well. The enlarged homestead law has encouraged the successful farming of lands in the semiarid regions. . The total sum already accumulated in the fund provided by the act for the reclamation of arid lands is about $69,449,058.76, and of this, all but $6,241,058.76 has been allotted to the various projects, of which there are thirty. Congress at its last session provided for the issuing of certificates of indebtedness not exceeding twenty millions of dollars, to be redeemed from the reclamation fund when the proceeds of lands sold and from the water-rents should be sufficient. Meantime, in accordance with the provisions of the law, I appointed a board of army engineers to examine the projects and to ascertain which are feasible and worthy of completion. That board has made a report upon the subject, which I shall transmit in a separate message within a few days. In September last conservation Congress was held at St. Paul, at which I delivered an address on the subject of conservation so far as it was within the jurisdiction and possible action of the Federal Government. In that address I assembled from the official records the statistics and facts as to what had been done in this behalf in the administration of my predecessor and in my own, and indicated the legislative measures which I believed to be wise in order to secure the best use, in the public interest, of what remains of our National domain. There was in this address a very full discussion of the reasons which led me to the conclusions stated. For the purpose of saving in an official record a comprehensive resume of the statistics and facts gathered with some difficulty in that address, and to avoid their repetition in the body of this message, I venture to make the address an accompanying appendix. The statistics are corrected to November 15th last. For the reasons stated in the conservation address, I recommend: First, that the limitation now imposed upon the Executive which forbids his reserving more forest lands in Oregon, Washington, Idaho, Montana, Colorado, and Wyoming, be repealed. Second, that the coal deposits of the Government be leased after advertisement inviting competitive bids, for terms not exceeding fifty years, with a minimum rental and royalties upon the coal mined, to be readjusted every ten or twelve years, and with conditions as to maintenance which will secure proper mining, and as to assignment which will prevent combinations to monopolize control of the coal in any one district or market. I do not think that coal measures under 2,500 acres of surface would be too large an amount to lease to any one lessee. The Secretary of the Interior thinks there are difficulties in the way of leasing public coal lands, which objections he has set forth in his report, the force of which I freely concede. I entirely approved his stating at length in his report the objections in order that the whole subject may be presented to Congress, but after a full consideration I favor a leasing system and recommend it. Third, that the law should provide the same separation in respect to government phosphate lands of surface and mineral rights that now obtains in coal lands and that power to lease such lands upon terms and limitations similar to those above recommended for coal leases, with an added condition enabling the Government to regulate, and if need be to prohibit, the export to foreign countries of the product. Fourth, that the law should allow a prospector for oil or gas to have the right to prospect for two years over a certain tract of government land, the right to be evidenced by a license for which he shall pay a small sum; and that upon discovery, a lease may be granted upon terms securing a minimum rental and proper royalties to the Government, and also the conduct of the oil or gas well in accord with the best method for husbanding the supply of oil in the district. The period of the leases should not be as long as those of coal, but they should contain similar provisions as to assignment to prevent monopolistic combinations. Fifth, that water-power sites be directly leased by the Federal Government, after advertisement and bidding, for not exceeding fifty years upon a proper rental and with a condition fixing rates charged to the public for units of electric power, both rental and rates to be readjusted equitably every ten years by arbitration or otherwise, with suitable provisions against assignment to prevent monopolistic combinations. Or, that the law shall provide that upon application made by the authorities of the State where the water-power site is situated, it may be patented to the State on condition that the State shall dispose of it under terms like those just described, and shall enforce those terms, or upon failure to comply with the condition the water-power site and all the plant and improvement on the site shall be forfeited and revert to the United States, the President being given the power to declare the forfeiture and to direct legal proceedings for its enforcement. Either of these methods would, I think, accomplish the proper public purpose in respect to water-power sites, but one or the other should be promptly adopted. I earnestly urge upon Congress that at this session general conservation legislation of the character indicated be adopted. At its last session this Congress took most useful and proper steps in the because of conservation by allowing the Executive, through withdrawals, to suspend the action of the existing laws in respect to much of the public domain. I have not thought that the danger of disposing of coal lands in the United States under the present laws in large quantities was so great as to call for their withdrawal, because under the present provisions it is reasonably certain that the Government will receive the real value of the land. But, in respect to oil lands, or phosphate lands, and of gas lands in the United States, and in respect to coal lands in Alaska, I have exercised the full power of withdrawal with the hope that the action of Congress would follow promptly and prevent that tying up of the resources of the country in the western and less settled portion and in Alaska, which means stagnation and retrogression. The question of conservation is not a partisan one, and I sincerely hope that even in the short time of the present session consideration may be given to those questions which have now been much discussed, and that action may be taken upon them. . With reference to the government of Alaska, I have nothing to add to the recommendations I made in my last message on the subject. I am convinced that the migratory character of the population, its unequal distribution, and its smallness of number, which the new census shows to be about 50,000, in relation to the enormous expanse of the territory, make it altogether impracticable to give to those people who are in Alaska to-day and may not be there a year hence, the power to elect a legislature to govern an immense territory to which they have a relation so little permanent. It is far better for the development of the territory that it be committed to a commission to be appointed by the Executive, with limited legislative powers sufficiently broad to meet the local needs, than to continue the present insufficient government with few remedial powers, or to make a popular government where there is not proper foundation upon which to rest it. The suggestion that the appointment of a commission will lead to the control of the government by corporate or selfish and exploiting interests has not the slightest foundation in fact. Such a government worked well in the Philippines, and would work well in Alaska, and those who are really interested in the proper development of that territory for the benefit of the people who live in it and the benefit of the people of the United States, who own it, should support the institution of such a government. I have been asked to recommend that the credit of the Government be extended to aid the construction of railroads in Alaska. I am not ready now to do so. A great many millions of dollars have already been expended in the construction of at least two railroads, and if laws be passed providing for the proper development of the resources of Alaska, especially for the opening up of the coal lands, I believe that the capital already invested will induce the investment of more capital, sufficient to complete the railroads building, and to furnish cheap coal not only to Alaska but to the whole Pacific coast. The passage of a law permitting the leasing of government coal lands in Alaska after public competition, and the appointment of a commission for the government of the territory, with enabling powers to meet the local needs, will lead to an improvement in Alaska and the development of her resources that is likely to surprise the country. Our national parks have become so extensive and involve so much detail of action in their control that it seems to me there ought to be legislation creating a bureau for their care and control. The greatest natural wonder of this country and the surrounding territory should be included in another national park. I refer to the Grand Canyon of the Colorado. . The uniform policy of the Government in the matter of granting pensions to those gallant and devoted men who fought to save the life of the Nation in the perilous days of the great Civil War, has always been of the most liberal character. Those men are now rapidly passing away. The best obtainable official statistics show that they are dying at the rate of something over three thousand a month, and, in view of their advancing years, this rate must inevitably, in proportion, rapidly increase. To the man who risked everything on the field of battle to save the Nation in the hour of its direst need, we owe a debt which has not been and should not be computed in a begrudging or parsimonious spirit. But while we should be actuated by this spirit to the soldier himself, care should be exercised not to go to absurd lengths, or distribute the bounty of the Government to classes of persons who may, at this late day, from a mere mercenary motive, seek to obtain some legal relation with an old veteran now tottering on the brink of the grave. The true spirit of the pension laws is to be found in the noble sentiments expressed by Mr. Lincoln in his last inaugural address, wherein, in speaking of the Nation's duty to its soldiers when the struggle should be over, he said we should "care for him who shall have borne the battle, and for his widow and orphans." The report of the Secretary of Agriculture invites attention to the stupendous value of the agricultural products of this country, amounting in all to $8,926,000,000 for this year. This amount is larger than that of 1909 by $305,000,000. The existence of such a crop indicates a good prospect for business throughout the country. A notable change for the better is commented upon by the Secretary in the fact that the South, especially in those regions where the boll weevil has interfered with the growth of cotton, has given more attention to the cultivation of corn and other cereals, so that there is a greater diversification of crops in the South than ever before--and all to the great advantage of that section. The report contains a most interesting account of the activities of the Department in its various bureaus, showing how closely the agricultural progress in this country is following along the lines of improvement recommended by the Department through its publications and the results of its experiment stations in every State, and by the instructions given through the agricultural schools aided by the Federal Government and following the general curriculum urged by the head and bureau chiefs of the Department. The activities of the Department have been greatly increased by the enactment of recent legislation, by the pure-food act, the meat-inspection act, the cattle-transportation act, and the act concerning the interstate shipment of game. This department is one of those the scope of whose action is constantly widening, and therefore it is impossible under existing legislation to reduce the cost and their estimates below those of preceding years. An interesting review of the results of an examination made by the Department into statistics and prices, shows that on the average since 1891, farm products have increased in value 72 per cent while the things which the farmer buys for use have increased but 12 per cent, an indication that present conditions are favorable to the farming community. I have already referred to the forests of the United States and their extent, and have urged, as I do again, the removal of the limitation upon the power of the Executive to reserve other tracts of land in six Western States in which withdrawal for this purpose is now forbidden. The Secretary of Agriculture gives a very full description of the disastrous fires that occurred during the last summer in the national forests. A drought more intense than any recorded in the history of the West had introduced a condition into the forests which made fires almost inevitable, and locomotive sparks, negligent campers, and in some cases incendiaries furnished the needed immediate because. At one time the fires were so extended that they covered a range of a hundred miles, and the Secretary estimates that standing timber of the value of 25 millions of dollars was destroyed. Seventy-six persons in the employ of the Forest Service were killed and many more injured, and I regret to say that there is no provision in the law by which the expenses for their hospital treatment or of their interment could be met out of public funds. The Red Cross contributed a thousand dollars, and the remainder of the necessary expenses was made up by private contribution, chiefly from the force of the Forest Service and its officials. I recommend that suitable legislation be adopted to enable the Secretary of Agriculture to meet the moral obligations of the Government in this respect. The specific fund for fighting fires was only about $135,000, but there existed discretion in the Secretary in case of an emergency to apply other funds in his control to this purpose, and he did so to the extent of nearly a million of dollars, which will involve the presentation of a deficiency estimate for the current fiscal year of over $900,000. The damage done was not therefore due to the lack of an appropriation by Congress available to meet the emergency, but the difficulty of fighting it lay in the remote points where the fires began and where it was impossible with the roads and trails as they now exist promptly to reach them. Proper protection necessitates, as the Secretary points out, the expenditure of a good deal more money in the development of roads and trails in the forests, the establishment of lookout stations, and telephone connection between them and places where assistance can be secured. . The amount of reforestation shown in the report of the Forest Service--only about 15,000 acres as compared with the 150 millions of acres of national forests--seems small, and I am glad to note that in this regard the Secretary of Agriculture and the chief of the Forest Service are looking forward to far greater activity in the use of available Government land for this purpose. Progress has been made in learning by experiment the best methods of reforesting. Congress is appealed to now by the Secretary of Agriculture to make the appropriations needed for enlarging the usefulness of the Forest Service in this regard. I hope that Congress will approve and adopt the estimate of the Secretary for this purpose. The Secretary of the Department of Commerce and Labor has had under his immediate supervision the application of the merit system of promotion to a large number of employees, and his discussion of this method of promotions based on actual experience, I commend to the attention of Congress. The taking of the census has proceeded with promptness and efficiency. The Secretary believes, and I concur, that it will be more thorough and accurate than any census which has heretofore been taken, but it is not perfect. The motive that prompts men with a false civic pride to induce the padding of census returns in order to increase the population of a particular city has been strong enough to lead to fraud in respect to a few cities in this country, and I have directed the Attorney-General to proceed with all the vigor possible against those who are responsible for these frauds. They have been discovered and they will not interfere with the accuracy of the census, but it is of the highest importance that official inquiry of this sort should not be embarrassed by fraudulent conspiracies in some private or local interest. The reorganization of the Light-House Board has effected a very considerable saving in the administration, and the estimates for that service for the present year are $428,000 less than for the preceding year. In addition, three tenders, for which appropriations were made, are not being built because they are not at present needed for the service. The Secretary is now asking for a large sum for the addition of lights and other aids to the commerce of the seas, including a number in Alaska. The trade along that coast is becoming so important that I respectfully urge the necessity for following his recommendation. The Commissioner of Corporations has just completed the first part of a report on the lumber industry in the United States. This part does not find the existence of a trust or combination in the manufacture of lumber. The Commissioner does find, however, a condition in the ownership of the standing timber of the United States, other than the Government timber, that calls for serious attention. The direct investigation made by the Commissioner covered an area which contains 80 per cent of the privately owned timber of the country. His report shows that one-half of the timber in this area is owned by 200 individuals and corporations; that 14 per cent is owned by 3 corporations, and that there is very extensive interownership of stock, as well as other circumstances, all pointing to friendly relations among those who own a majority of this timber, a relationship which might lead to a combination for the maintenance of a price that would be very detrimental to the public interest, and would create the necessity of removing all tariff obstacles to the free importations of lumber from other countries. I am glad to note in the Secretary's report the satisfactory progress which is being made in respect to the preservation of the seals of the Pribiloff Islands. Very active steps are being taken by the Department of State to secure an arrangement which shall protect the Pribiloff herd from the losses due to pelagic sealing. Meantime the Government has secured seal pelts of the bachelor seals (the killing of which does not interfere with the maintenance of the herd), from the sale of which next month it is expected to realize about $450,000, a sum largely in excess of the rental paid by the lessee of the Government under the previous contract. The Coast and Geodetic Survey has been engaged in surveying the coasts of the Philippine archipelago. This is a heavy work, because of the extended character of the coast line in those Islands, but I am glad to note that about half of the needed survey has been completed. So large a part of the coast line of the archipelago has been unsurveyed as to make navigation in the neighborhood of a number of the islands, and especially on the east side, particularly dangerous. The Commissioner of Labor has been actively engaged in composing the differences between employers and employees engaged in interstate transportation, under the Erdman Act, jointly with the Chairman of the Interstate Commerce Commission. I can not speak in too high terms of the success of these two officers in conciliation and settlement of controversies which, but for their interposition, would have resulted disastrously to all interests. I invite attention to the very serious injury caused to all those who are engaged in the manufacture of phosphorous matches. The diseases incident to this are frightful, and as matches can be made from other materials entirely innocuous, I believe that the injurious manufacture could be discouraged and ought to be discouraged by the imposition of a heavy federal tax. I recommend the adoption of this method of stamping out a very serious abuse. Since 1868 it has been the declared purpose of this Government to favor the movement for an eight-hour day by a provision of law that none of the employees employed by or on behalf of the Government should work longer than eight hours in every twenty-four. The first declaration of this view was not accompanied with any penal clause or with any provision for its enforcement, and, though President Grant by a proclamation twice attempted to give it his sanction and to require the officers of the Government to carry it out, the purpose of the framers of the law was ultimately defeated by a decision of the Supreme Court holding that the statute as drawn was merely a direction of the Government to its agents and did not invalidate a contract made in behalf of the Government which provided in the contract for labor for a day of longer hours than eight. Thereafter, in 1892, the present eight-hour law was passed, which provides that the services and employment of all laborers and mechanics who are now or may hereafter be employed by the Government of the United States, by the District of Columbia, or by any contractor or subcontractor on any of the public works of the United States and of the said District of Columbia is hereby restricted to eight hours in any one calendar day. This law has been construed to limit the application of the requirement to those who are directly employed by the Government or to those who are employed upon public works situate upon land owned by the United States. This construction prevented its application to government battle ships and other vessels built in private shipyards and to heavy guns and armor plate contracted for and made at private establishments. The proposed act provides that no laborer or mechanic doing any part of the work contemplated by a contract with the United States in the employ of the contractor or any subcontractor shall be required or permitted to work more than eight hours a day in any one calendar day. It seems to me from the past history that the Government has been committed to a policy of encouraging the limitation of the day's work to eight hours in all works of construction initiated by itself, and it seems to me illogical to maintain a difference between government work done on government soil and government work done in a private establishment, when the work is of such large dimensions and involves the expenditure of much labor for a considerable period, so that the private manufacturer may adjust himself and his establishment to the special terms of employment that he must make with his workmen for this particular job. To require, however, that every small contract of manufacture entered into by the Government should be carried out by the contractor with men working at eight hours would be to impose an intolerable burden upon the Government by limiting its sources of supply and excluding altogether the great majority of those who would otherwise compete for its business. The proposed act recognizes this in the exceptions which it makes to contracts "for transportation by land or water, for the transmission of intelligence, and for such materials or articles as may usually be bought in the open market whether made to conform to particular specifications or not, or for the purchase of supplies by the Government, whether manufactured to conform to particular specifications or not." I recommend that instead of enacting the proposed bill, the meaning of which is not clear and definite and might be given a construction embarrassing to the public interest, the present act be enlarged by providing that public works shall be construed to include not only buildings and work upon public ground, but also ships, armor, and large guns when manufactured in private yards or factories. One of the great difficulties in enforcing this eight-hour law is that its application under certain emergencies becomes exceedingly oppressive and there is a great temptation to subordinate officials to evade it. I think that it would be wiser to allow the President, by Executive order, to declare an emergency in special instances in which the limitation might not apply and, in such cases, to permit the payment by the Government of extra compensation for the time worked each day in excess of eight hours. I may add that my suggestions in respect to this legislation have the full concurrence of the Commissioner of Labor. In view of the keen, widespread interest now felt in the United States in a system of compensation for industrial accidents to supplant our present thoroughly unsatisfactory system of employers' liability (a subject the importance of which Congress has already recognized by the appointment of a commission), I recommend that the International Congress on Industrial Insurance be invited to hold its meeting in 1913 in Washington, and that an appropriation of $10,000 be made to cover the necessary expenses of organizing and carrying on the meeting. The immigration into this country is increasing each year. A large part of it comes through the immigrant station at Ellis Island in the City of New York. An examination of the station and the methods pursued satisfies me that a difficult task is there performed by the commissioner and his force with common sense, the strictest fairness, and with the most earnest desire to enforce the law equitably and mercifully. It has been proposed to enlarge the accommodations so as to allow more of the immigrants to come by that port. I do not think it wise policy to do this. I have no objection to--on the contrary, I recommend--the construction of additional buildings for the purpose of facilitating a closer and more careful examination of each immigrant as he comes in, but I deprecate the enlargement of the buildings and of the force for the purpose of permitting the examination of more immigrants per day than are now examined. If it is understood that no more immigrants can be taken in at New York than are now taken in, and the steamship companies thus are given a reason and a motive for transferring immigrants to other ports, we can be confident that they will be better distributed through the country and that there will not be that congestion in the City of New York which does not make for the better condition of the immigrant or increase his usefulness as a new member of this community. Everything which tends to send the immigrants west and south into rural life helps the country. I concur with the Secretary in his recommendations as to the amendments to the immigration law in increasing the fine against the companies for violation of the regulations, and in giving greater power to the commissioner to enforce more care on the part of the steamship companies in accepting immigrants. The recommendation of the Secretary, in which he urges that the law may be amended so as to discourage the separation of families, is, I think, a good one. In my message of last year I recommended the creation of a Bureau of Health, in which should be embraced all those Government agencies outside of the War and Navy Departments which are now directed toward the preservation of public health or exercise functions germane to that subject. I renew this recommendation. I greatly regret that the agitation in favor of this bureau has aroused a counteragitation against its creation, on the ground that the establishment of such a bureau is to be in the interest of a particular school of medicine. It seems to me that this assumption is wholly unwarranted, and that those responsible for the Government can be trusted to secure in the personnel of the bureau the appointment of representatives of all recognized schools of medicine, and in the management of the bureau entire freedom from narrow prejudice in this regard. By an act passed by Congress the President was authorized to expend a million dollars to construct the needed work to prevent injury to the lands of the Imperial Valley from the overflow of the Colorado River. I appointed a competent engineer to examine the locality and to report a plan for construction. He has done so. In order to complete the work it is necessary to secure the consent of Mexico, for part of the work must be constructed in Mexican territory. Negotiations looking to the securing of such authority are quite near success. The Southern Pacific Railroad Company proposes to assist us in the work by lending equipment and by the transportation of material at cost price, and it is hoped that the work may be completed before any danger shall arise from the spring floods in the river. The work is being done under the supervision of the Secretary of the Interior and his consulting engineer, General Marshall, late Chief of Engineers, now retired. This leads me to invite the attention of Congress to the claim made by the Southern Pacific Railroad Company for an amount expended in a similar work of relief called for by a flood and great emergency. This work, as I am informed, was undertaken at the request of my predecessor and under promise to reimburse the railroad company. It seems to me the equity of this claim is manifest, and the only question involved is the reasonable value of the work done. I recommend the payment of the claim in a sum found to be just. The government of the District of Columbia is a good government. The police force, while perhaps it might be given, or acquire, more military discipline in bearing and appearance, is nevertheless an efficient body of men, free from graft, and discharges its important duties in this capital of the nation effectively. The parks and the streets of the city and the District are generally kept clean and in excellent condition. The Commissioners of the District have its affairs well in hand, and, while not extravagant, are constantly looking to those municipal improvements that are expensive but that must be made in a modern growing city like Washington. While all this is true, nevertheless the fact that Washington is governed by Congress, and that the citizens are not responsible and have no direct control through popular election in District matters, properly subjects the government to inquiry and criticism by its citizens, manifested through the public press and otherwise; such criticism should command the careful attention of Congress. Washington is the capital of the nation and its maintenance as a great and beautiful city under national control, every lover of his country has much at heart; and it should present in every way a model in respect of economy of expenditure, of sanitation, of tenement reform, of thorough public instruction, of the proper regulation of public utilities, of sensible and extended charities, of the proper care of criminals and of youth needing reform, of healthful playgrounds and opportunity for popular recreation, and of a beautiful system of parks. I am glad to think that progress is being made in all these directions, but I venture to point out certain specific improvements toward these ends which Congress in its wisdom might adopt. Speaking generally, I think there ought to be more concentration of authority in respect to the accomplishment of some of these purposes with more economy of expenditure. Attention is invited to the peculiar situation existing in regard to the parks of Washington. The park system proper, comprising some 343 different areas, is under the Office of Public Buildings and Grounds, which, however, has nothing to do with the control of Rock Creek Park, the Zoological Park, the grounds of the Department of Agriculture, the Botanic Garden, the grounds of the Capitol, and other public grounds which are regularly open to the public and ought to be part of the park system. Exclusive of the grounds of the Soldiers' Home and of Washington Barracks, the public grounds used as parks in the District of Columbia comprise over 3,100 acres, under ten different controlling officials or bodies. This division of jurisdiction is most unfortunate. Large sums of money are spent yearly in beautifying and keeping in good condition these parks and the grounds connected with Government buildings and institutions. The work done on all of them is of the same general character--work for which the Office of Public Buildings and Grounds has been provided by Congress with a special organization and equipment, which are lacking for the grounds not under that office. There can be no doubt that if all work of care and improvement upon the grounds belonging to the United States in the District of Columbia were put, as far as possible, under one responsible head, the result would be not only greater efficiency and economy in the work itself, but greater harmony in the development of the public parks and gardens of the city. Congress at its last session provided for two more parks, called the Meridian Hill and Montrose parks, and the District Commissioners have also included in their estimates a sum to be used for the acquisition of much needed park land adjoining the Zoological Park, known as the Klingle Ford tract. The expense of these three parks, included in the estimates of the Commissioners, aggregates $900,000. I think it would lead to economy if the improvement and care of all these parks and other public grounds above described should be transferred to the Office of Public Buildings and Grounds, which has an equipment well and economically adapted to carrying out the public purpose in respect to improvements of this kind. To prevent encroachments upon the park area it is recommended that the erection of any permanent structure on any lands in the District of Columbia belonging to the United States be prohibited except by specific authority of Congress. I have already in previous communications to Congress referred to the importance of acquiring for the District of Columbia at least a part of the territory on the other side of the Potomac in Virginia which was originally granted for the District by the State of Virginia, and then was retroceded by act of Congress in 1846. It is very evident from conferences that I have had with the Senators and Representatives from Virginia that there is no hope of a regranting by the State of the land thus given back; and I am frank to say that in so far as the tract includes the town of Alexandria and land remote from the Potomac River there would be no particular advantage in bringing that within national control. But the land which lies along the Potomac River above the railroad bridge and across the Potomac, including Arlington Cemetery, Fort Myer, the Government experiment farm, the village of Rosslyn, and the Palisades of the Potomac, reaching to where the old District line intersects the river, is very sparsely settled and could be admirably utilized for increasing the system of the parks of Washington. It has been suggested to me by the same Virginia Senators and Representatives that if the Government were to acquire for a government park the land above described, which is not of very great value, the present law of Virginia would itself work the creation of federal jurisdiction over it, and if that were not complete enough, the legislature of Virginia would in all probability so enlarge the jurisdiction as to enable Congress to include it within the control of the government of the District of Columbia and actually make it a part of Washington. I earnestly recommend that steps be taken to carry out this plan. There are a sufficient number of corporations enjoying the use of public utilities in the District of Columbia to justify and require the enactment of a law providing for their supervision and regulation in the public interest consistent with the vested rights secured to them by their charters. A part of these corporations, to wit, the street railways, have been put under the control of the Interstate Commerce Commission, but that Commission recommends that the power be taken from it, and intimates broadly that its other and more important duties make it impossible for it to give the requisite supervision. It seems to me wise to place this general power of supervision and regulation in the District Commissioners. It is said that their present duties are now absorbing and would prevent the proper discharge by them of these new functions, but their present jurisdiction brings them so closely and frequently in contact with these corporations and makes them to know in such detail how the corporations are discharging their duties under the law and how they are serving the public interest that the Commissioners are peculiarly fitted to do this work, and I hope that Congress will impose it upon them by intrusting them with powers in respect to such corporations similar to those of the public utilities commission of New York City or similar boards in Massachusetts. I do not think the present control of the school system of Washington commends itself as the most efficient and economical and thorough instrument for the carrying on of public instruction. The cost of education in the District of Columbia is excessive as compared with the cost in other cities of similar size, and it is not apparent that the results are in general more satisfactory. The average cost per pupil per day in Washington is about 38 cents, while the average cost in 13 other American cities fairly comparable with Washington in population and standard of education is about 25.5 cents. For each dollar spent in salaries of school teachers and officers in the District about 4.4 days of instruction per pupil are given, while in the 13 cities above referred to each dollar expended for salaries affords on the average 6.8 days of instruction. For the current fiscal year the estimates of the Board of Education amounted to about three-quarters of the entire revenue locally collected for District purposes. If I may say so, there seems to be a lack of definite plan in the expansion of the school system and the erection of new buildings and of proper economy in the use of these buildings that indicates the necessity for the concentration of control. All plans for improvement and expansion in the school system are with the School Board, while the limitation of expenses is with the District Commissioners. I think it would be much better to put complete control and responsibility in the District Commissioners, and then provide a board of school visitors, to be appointed by the Supreme Court of the District or by the President, from the different school districts of Washington, who, representing local needs, shall meet and make recommendations to the Commissioners and to the Superintendent of Education--an educator of ability and experience who should be an appointee of and responsible to the District Commissioners. Among other items for permanent improvements appearing in the District estimates for 1912 is one designed to substitute for Willow Tree Alley, notorious in the records of the Police and Health Departments, a playground with a building containing baths, a gymnasium, and other helpful features, and I hope Congress will approve this estimate. Fair as Washington seems with her beautiful streets and shade trees, and free, as the expanse of territory which she occupies would seem to make her, from slums and insanitary congestion of population, there are centers in the interior of squares where the very poor, and the criminal classes as well, huddle together in filth and noisome surroundings, and it is of primary importance that these nuclei of disease and suffering and vice should be removed, and that there should be substituted for them small parks as breathing spaces, and model tenements having sufficient air space and meeting other hygienic requirements. The estimate for the reform of Willow Tree Alley, the worst of these places in the city, is the beginning of a movement that ought to attract the earnest attention and support of Congress, for Congress can not escape its responsibility for the existence of these human pest holes. The estimates for the District of Columbia for the fiscal year 1912 provide for the repayment to the United States of $616,000, one-fourth of the floating debt that will remain on June 30, 1911. The bonded debt will be reduced in 1912 by about the same amount. The District of Columbia is now in an excellent financial condition. Its own share of indebtedness will, it is estimated, be less than $6,000,000 on June 30, 1912, as compared with about $9,00,000 on June 30, 1909. The bonded debt, owed half and half by the United States and the District, will be extinguished by 1924, and the floating debt of the District probably long before that time. The revenues have doubled in the last ten years, while the population during the same period has increased but 18.78 per cent. It is believed that, if due economy be practiced, the District can soon emerge from debt, even while financing its permanent improvements with reasonable rapidity from current revenues. To this end, I recommend the enactment into law of a bill now before Congress--and known as the Judson Bill--which will insure the gradual extinguishment of the District's debt, while at the same time requiring that the many permanent improvements needed to complete a fitting capital city shall be carried on from year to year and at a proper rate of progress with funds derived from the rapidly increasing revenues. I renew my recommendation that the claims of the depositors in the Freedmen's Bank be recognized and paid by the passage of the pending bill on that subject. I also renew my recommendation that steps be taken looking to the holding of a Negro exposition in celebration of the fiftieth anniversary of the issuing by Mr. Lincoln of the Emancipation Proclamation. The Civil Service Commission has continued its useful duties during the year. The necessity for the maintenance of the provisions of the civil service law was never greater than to-day. Officers responsible for the policy of the Administration, and their immediate personal assistants or deputies, should not be included within the classified service; but in my judgment, public opinion has advanced to the point where it would support a bill providing a secure tenure during efficiency for all purely administrative officials. I entertain the profound conviction that it would greatly aid the because of efficient and economical government, and of better politics if Congress could enact a bill providing that the Executive shall have the power to include in the classified service all local offices under the Treasury Department, the Department of Justice, the Post-Office Department, the Interior Department, and the Department of Commerce and Labor, appointments to which now require the confirmation of the Senate, and that upon such classification the advice and consent of the Senate shall cease to be required in such appointments. By their certainty of tenure, dependent on good service, and by their freedom from the necessity for political activity, these local officers would be induced to become more efficient public servants. The civil service law is an attempt to solve the problem of the proper selection of those who enter the service. A better system under that law for promotions ought to be devised, but, given the selected employee, there remains still the question of promoting his efficiency and his usefulness to the Government, and that can be brought about only by a careful comparison of unit work done by the individual and a pointing out of the necessity for improvement in this regard where improvement is possible. The increase in the activities and in the annual expenditures of the Federal Government has been so rapid and so great that the time has come to check the expansion of government activities in new directions until we have tested the economy and efficiency with which the Government of to-day is being carried on. The responsibility rests upon the head of the Administration. He is held accountable by the public, and properly so. Despite the unselfish and patriotic efforts of the heads of departments and others charged with responsibility of government, there has grown up in this country a conviction that the expenses of government are too great. The fundamental reason for the existence undetected of waste, duplication, and bad management is the lack of prompt, accurate information. The president of a private corporation doing so vast a business as the Government transacts would, through competent specialists, maintain the closest scrutiny on the comparative efficiency and the comparative costs in each division or department of the business. He would know precisely what the duties and the activities of each bureau or division are in order to prevent overlapping. No adequate machinery at present exists for supplying the President of the United States with such information respecting the business for which he is responsible. For the first time in the history of the Government, Congress in the last session supplied this need and made an appropriation to enable the President to inquire into the economy and efficiency of the executive departments, and I am now assembling an organization for that purpose. At the outset I find comparison between departments and bureaus impossible for the reason that in no two departments are the estimates and expenditures displayed and classified alike. The first step is to reduce all to a common standard for classification and judgment, and this work is now being done. When it is completed, the foundation will be laid for a businesslike national budget, and for such a just comparison of the economy and efficiency with which the several bureaus and divisions are conducted as will enable the President and the heads of Departments to detect waste, eliminate duplication, encourage the intelligent and effective civil servants whose efforts too often go unnoticed, and secure the public service at the lowest possible cost. The Committees on Appropriations of Congress have diligently worked to reduce the expenses of government and have found their efforts often blocked by lack of accurate information containing a proper analysis of requirements and of actual and reasonable costs. The result of this inquiry should enable the Executive in his communications to Congress to give information to which Congress is entitled and which will enable it to promote economy. My experience leads me to believe that while Government methods are much criticised, the bad results--if we do have bad results--are not due to a lack of zeal or willingness on the part of the civil servants. On the contrary, I believe that a fine spirit of willingness to work exists in the personnel, which, if properly encouraged, will produce results equal to those secured in the best managed private enterprises. In handling Government expenditure the aim is not profit--the aim is the maximum of public service at the minimum of cost. We wish to reduce the expenditures of the Government, and we wish to save money to enable the Government to go into some of the beneficial projects which we are debarred from taking up now because we ought not to increase our expenditures. I have requested the head of each Department to appoint committees on economy and efficiency in order to secure full cooperation in the movement by the employees of the Government themselves. At a later date I shall send to Congress a special message on this general subject. I urge the continuance of the appropriation of $100,000 requested for the fiscal year 1912. It is impossible to proceed far in such an investigation without perceiving the need of a suitable means of eliminating from the service the superannuated. This can be done in one of two ways, either by straight civil pension or by some form of contributory plan. Careful study of experiments made by foreign governments shows that three serious objections to the civil pension payable out of the public treasury may be brought against it by the taxpayer, the administrative officer, and the civil employee, respectively. A civil pension is bound to become an enormous, continuous, and increasing tax on the public exchequer; it is demoralizing to the service since it makes difficult the dismissal of incompetent employees after they have partly earned their pension; and it is disadvantageous to the main body of employees themselves since it is always taken into account in fixing salaries and only the few who survive and remain in the service until pensionable age receive the value of their deferred pay. For this reason, after a half century of experience under a most liberal pension system, the civil servants of England succeeded, about a year ago, in having the system so modified as to make it virtually a contributory plan with provision for refund of their theoretical contributions. The experience of England and other countries shows that neither can a contributory plan be successful, human nature being what it is, which does not make provision for the return of contributions, with interest, in case of death or resignation before pensionable age. Followed to its logical conclusion this means that the simplest and most independent solution of the problem for both employee and the Government is a compulsory savings arrangement, the employee to set aside from his salary a sum sufficient, with the help of a liberal rate of interest from the Government, to purchase an adequate annuity for him on retirement, this accumulation to be inalienably his and claimable if he leaves the service before reaching the retirement age or by his heirs in case of his death. This is the principle upon which the Gillett bill now pending is drawn. The Gillett bill, however, goes further and provides that the Government shall contribute to the pension fund of those employees who are now so advanced in age that their personal contributions will not be sufficient to create their annuities before reaching the retirement age. In my judgment this provision should be amended so that the annuities of those employees shall be paid out of the salaries appropriated for the positions vacated by retirement, and that the difference between the annuities thus granted and the salaries may be used for the employment of efficient clerks at the lower grades. If the bill can be thus amended I recommend its passage, as it will initiate a valuable system and ultimately result in a great saving in the public expenditures. There has not been time to test the benefit and utility of the amendments to the interstate commerce law contained in the act approved June 18, 1910. The law as enacted did not contain all the features which I recommended. It did not specifically denounce as unlawful the purchase by one of two parallel and competing roads of the stock of the other. Nor did it subject to the restraining influence of the Interstate Commerce Commission the power of corporations engaged in operating interstate railroads to issue new stock and bonds; nor did it authorize the making of temporary agreements between railroads, limited to thirty days, fixing the same rates for traffic between the same places. I do not press the consideration of any of these objects upon Congress at this session. The object of the first provision is probably generally covered by the antitrust law. The second provision was in the act referred to the consideration of a commission to be appointed by the Executive and to report upon the matter to Congress. That commission has been appointed, and is engaged in the investigation and consideration of the question submitted under the law. It consists of President Arthur T. Hadley, of Yale University, as chairman; Frederick Strauss, Frederick N. Judson, Walter L. Fisher, and Prof. B. H. Meyer, with William E. S. Griswold as secretary. The third proposal led to so much misconstruction of its object, as being that of weakening the effectiveness of the antitrust law, that I am not disposed to press it for further consideration. It was intended to permit railroad companies to avoid useless rate cutting by a mere temporary acquiescence in the same rates for the same service over competing railroads, with no obligation whatever to maintain those rates for any time. The protection of railroad employees from personal injury is a subject of the highest importance and demands continuing attention. There have been two measures pending in Congress, one for the supervision of boilers and the other for the enlargement of dangerous clearances. Certainly some measures ought to be adopted looking to a prevention of accidents from these causes. It seems to me that with respect to boilers a bill might well be drawn requiring and enforcing by penalty a proper system of inspection by the railway companies themselves which would accomplish our purpose. The entire removal of outside clearances would be attended by such enormous expense that some other remedy must be adopted. By act of May 6, 1910, the Interstate Commerce Commission is authorized and directed to investigate accidents, to report their causes and its recommendations. I suggest that the Commission be requested to make a special report as to injuries from outside clearances and the best method of reducing them. The Interstate Commerce Commission has recommended appropriations for the purpose of enabling it to enter upon a valuation of all railroads. This has always been within the jurisdiction of the Commission, but the requisite funds have been wanting. Statistics of the value of each railroad would be valuable for many purposes, especially if we ultimately enact any limitations upon the power of the interstate railroads to issue stocks and bonds, as I hope we may. I think, therefore, that in order to permit a correct understanding of the facts, it would be wise to make a reasonable appropriation to enable the Interstate Commerce Commission to proceed with due dispatch to the valuation of all railroads. I have no doubt that railroad companies themselves can and will greatly facilitate this valuation and make it much less costly in time and money than has been supposed. Forged and fraudulent hills of lading purporting to be issued against cotton, some months since, resulted in losses of several millions of dollars to American and foreign banking and cotton interests. Foreign bankers then notified American bankers that, after October 31, 1910, they would not accept bills of exchange drawn against bills of lading for cotton issued by American railroad companies, unless American bankers would guarantee the integrity of the bills of lading. The American bankers rightly maintained that they were not justified in giving such guarantees, and that, if they did so, the United States would be the only country in the world whose bills were so discredited, and whose foreign trade was carried on under such guaranties. The foreign bankers extended the time at which these guaranties were demanded until December 31, 1910, relying upon us for protection in the meantime, as the money which they furnish to move our cotton crop is of great value to this country. For the protection of our own people and the preservation of our credit in foreign trade, I urge upon Congress the immediate enactment of a law under which one who, in good faith, advances money or credit upon a bill of lading issued by a common carrier upon an interstate or foreign shipment can hold the carrier liable for the value of the goods described in the bill at the valuation specified in the bill, at least to the extent of the advances made in reliance upon it. Such liability exists under the laws of many of the States. I see no objection to permitting two classes of bills of lading to be issued: (I) Those under which a carrier shall be absolutely liable, as above suggested, and (2) those with respect to which the carrier shall assume no liability except for the goods actually delivered to the agent issuing the bill. The carrier might be permitted to make a small separate specific charge in addition to the rate of transportation for such guaranteed bill, as an insurance premium against loss from the added risk, thus removing the principal objection which I understand is made by the railroad companies to the imposition of the liability suggested, viz., that the ordinary transportation rate would not compensate them for the liability assumed by the absolute guaranty of the accuracy of the bills of lading. I further recommend that a punishment of fine and imprisonment be imposed upon railroad agents and shippers for fraud or misrepresentation in connection with the issue of bills of lading issued upon interstate and foreign shipments. Except as above, I do not recommend any amendment to the interstate-commerce law as it stands. I do not now recommend any amendment to the anti-trust law. In other words, it seems to me that the existing legislation with reference to the regulation of corporations and the restraint of their business has reached a point where we can stop for a while and witness the effect of the vigorous execution of the laws on the statute books in restraining the abuses which certainly did exist and which roused the public to demand reform. If this test develops a need for further legislation, well and good, but until then let us execute what we have. Due to the reform movements of the present decade, there has undoubtedly been a great improvement in business methods and standards. The great body of business men of this country, those who are responsible for its commercial development, now have an earnest desire to obey the law and to square their conduct of business to its requirements and limitations. These will doubtless be made clearer by the decisions of the Supreme Court in cases pending before it. It is in the interest of all the people of the country that for the time being the activities of government, in addition to enforcing earnestly and impartially the existing laws, should be directed to economy of administration, to the enlargement of opportunities for foreign trade, to the conservation and improvement of our agricultural lands and our other natural resources, to the building up of home industries, and to the strengthening of confidence of capital in domestic investment.
during the past year the foreign relations of the united states have continued upon a basis of friendship and good understanding the year has been notable as witnessing the pacific settlement of two important international controversies before the permanent court of the hague the arbitration of the fisheries dispute between the united states and great britain which has been the source of nearly continuous diplomatic correspondence since the fisheries convention of 1818 has given an award which is satisfactory to both parties this arbitration is particularly noteworthy not only because of the eminently just results secured but also because it is the first arbitration held under the general arbitration treaty of april 4 1908 between the united states and great britain and disposes of a controversy the settlement of which has resisted every other resource of diplomacy and which for nearly ninety years has been the because of friction between two countries whose common interest lies in maintaining the most friendly and cordial relations with each other the united states was ably represented before the tribunal the complicated history of the questions arising made the issue depend more than ordinarily in such cases upon the care and skill with which our case was presented and i should be wanting in proper recognition of a great patriotic service if i did not refer to the lucid historical analysis of the facts and the signal ability and force of the argument six days in length presented to the court in support of our case by elihu root as secretary of state root had given close study to the intricate facts bearing on the controversy and by diplomatic correspondence had helped to frame the issues at the solicitation of the secretary of state and myself root though burdened by his duties as senator from new york undertook the preparation of the case as leading counsel with the condition imposed by himself that in view of his position as senator he should not receive any compensation the tribunal constituted at the hague by the governments of the united states and venezuela has completed its deliberations and has rendered an award in the case of the orinoco steamship company against venezuela the award may be regarded as satisfactory since it has pursuant to the contentions of the united states recognized a number of important principles making for a judicial attitude in the determining of international disputes in view of grave doubts which had been raised as to the constitutionality of the hague convention for the establishment of an international prize court now before the senate for ratification because of that provision of the convention which provides that there may be an appeal to the proposed court from the decisions of national courts this government proposed in an identic circular note addressed to those powers who had taken part in the london maritime conference that the powers signatory to the convention if confronted with such difficulty might insert a reservation to the effect that appeals to the international prize court in respect to decisions of its national tribunals should take the form of a direct claim for compensation that the proceedings thereupon to be taken should be in the form of a trial de novo and that judgment of the court should consist of compensation for the illegal capture irrespective of the decision of the national court whose judgment had thus been internationally involved as the result of an informal discussion it was decided to provide such procedure by means of a separate protocol which should be ratified at the same time as the prize court convention itself accordingly the government of the netherlands at the request of this government proposed under date of may 24 1910 to the powers signatory to the hague convention the negotiation of a supplemental protocol embodying stipulations providing for this alternative procedure it is gratifying to observe that this additional protocol is being signed without objection by the powers signatory to the original convention and there is every reason to believe that the international prize court will be soon established the identic circular note also proposed that the international prize court when established should be endowed with the functions of an arbitral court of justice under and pursuant to the recommendation adopted by the last hague conference the replies received from the various powers to this proposal inspire the hope that this also may be accomplished within the reasonably near future it is believed that the establishment of these two tribunals will go a long way toward securing the arbitration of many questions which have heretofore threatened and at times destroyed the peace of nations appreciating these enlightened tendencies of modern times the congress at its last session passed a law providing for the appointment of a commission of five members to be appointed by the president of the united states to consider the expediency of utilizing existing international agencies for the purpose of limiting the armaments of the nations of the world by international agreement and of constituting the combined navies of the world an international force for the preservation of universal peace and to consider and report upon any other means to diminish the expenditures of government for military purposes and to lessen the probabilities of war i have not as yet made appointments to this commission because i have invited and am awaiting the expressions of foreign governments as to their willingness to cooperate with us in the appointment of similar commissions or representatives who would meet with our commissioners and by joint action seek to make their work effective several important treaties have been negotiated with great britain in the past twelve months a preliminary diplomatic agreement has been reached regarding the arbitration of pecuniary claims which each government has against the other this agreement with the schedules of claims annexed will as soon as the schedules are arranged be submitted to the senate for approval an agreement between the united states and great britain with regard to the location of the international boundary line between the united states and canada in passamaquoddy bay and to the middle of grand manan channel was reached in a treaty concluded may 21 1910 which has been ratified by both governments and proclaimed thus making unnecessary the arbitration provided for in the previous treaty of april 11 1908 the convention concluded january 11 1909 between the united states and great britain providing for the settlement of international differences between the united states and canada including the apportionment between the two countries of certain of the boundary waters and the appointment of commissioners to adjust certain other questions has been ratified by both governments and proclaimed the work of the international fisheries commission appointed in 1908 under the treaty of april 11 1908 between great britain and the united states has resulted in the formulation and recommendation of uniform regulations governing the fisheries of the boundary waters of canada and the united states for the purpose of protecting and increasing the supply of food fish in such waters in completion of this work the regulations agreed upon require congressional legislation to make them effective and for their enforcement in fulfillment of the treaty stipulations in october last the monarchy in portugal was overthrown a provisional republic was proclaimed and there was set up a de facto government which was promptly recognized by the government of the united states for purposes of ordinary intercourse pending formal recognition by this and other powers of the governmental entity to be duly established by the national sovereignty a disturbance among the native tribes of liberia in a portion of the republic during the early part of this year resulted in the sending under the treaty of 1862 of an american vessel of war to the disaffected district and the liberian authorities assisted by the good offices of the american naval officers were able to restore order the negotiations which have been undertaken for the amelioration of the conditions found in liberia by the american commission whose report i transmitted to congress on march 25 last are being brought to conclusion and it is thought that within a short time practical measures of relief may be put into effect through the good offices of this government and the cordial cooperation of other governments interested in liberia welfare to return the visit of the special embassy announcing the accession of his majesty mehemet v emperor of the ottomans i sent to constantinople a special ambassador who in addition to this mission of ceremony was charged with the duty of expressing to the ottoman government the value attached by the government of the united states to increased and more important relations between the countries and the desire of the united states to contribute to the larger economic and commercial development due to the new regime in turkey the rapid development now beginning in that ancient empire and the marked progress and increased commercial importance of bulgaria roumania and servia make it particularly opportune that the possibilities of american commerce in the near east should receive due attention the national skoupchtina having expressed its will that the principality of montenegro be raised to the rank of kingdom the prince of montenegro on august 15 last assumed the title of king of montenegro it gave me pleasure to accord to the new kingdom the recognition of the united states the center of interest in far eastern affairs during the past year has again been china it is gratifying to note that the negotiations for a loan to the chinese government for the construction of the trunk railway lines from hankow southward to canton and westward through the yangtse valley known as the hukuang loan were concluded by the representatives of the various financial groups in may last and the results approved by their respective governments the agreement already initialed by the chinese government is now awaiting formal ratification the basis of the settlement of the terms of this loan was one of exact equality between america great britain france and germany in respect to financing the loan and supplying materials for the proposed railways and their future branches the application of the principle underlying the policy of the united states in regard to the hukuang loan that of the internationalization of the foreign interest in such of the railways of china as may be financed by foreign countries was suggested on a broader scale by the secretary of state in a proposal for internationalization and commercial neutralization of all the railways of manchuria while the principle which led to the proposal of this government was generally admitted by the powers to whom it was addressed the governments of russia and japan apprehended practical difficulties in the execution of the larger plan which prevented their ready adherence the question of constructing the railway by means of an international loan to china is however still the subject of friendly discussion by the interested parties the policy of this government in these matters has been directed by a desire to make the use of american capital in the development of china an instrument in the promotion of china welfare and material prosperity without prejudice to her legitimate rights as an independent political power this policy has recently found further exemplification in the assistance given by this government to the negotiations between china and a group of american bankers for a loan of to be employed chiefly in currency reform the confusion which has from ancient times existed in the monetary usages of the chinese has been one of the principal obstacles to commercial intercourse with that people the united states in its treaty of 1903 with china obtained a pledge from the latter to introduce a uniform national coinage and the following year at the request of china this government sent to peking a member of the international exchange commission to discuss with the chinese government the best methods of introducing the reform in 1908 china sent a commissioner to the united states to consult with american financiers as to the possibility of securing a large loan with which to inaugurate the new currency system but the death of their majesties the empress dowager and the emperor of china interrupted the negotiations which were not resumed until a few months ago when this government was asked to communicate to the bankers concerned the request of china for a loan of for the purpose under review a preliminary agreement between the american group and china has been made covering the loan for the success of this loan and the contemplated reforms which are of the greatest importance to the commercial interests of the united states and the civilized world at large it is realized that an expert will be necessary and this government has received assurances from china that such an adviser who shall be an american will be engaged it is a matter of interest to americans to note the success which is attending the efforts of china to establish gradually a system of representative government the provincial assemblies were opened in october 1909 and in october of the present year a consultative body the nucleus of the future national parliament held its first session at peking the year has further been marked by two important international agreements relating to far eastern affairs in the agreement relating to manchuria signed july 4 1910 this government was gratified to note an assurance of continued peaceful conditions in that region and the reaffirmation of the policies with respect to china to which the united states together with all other interested powers are alike solemnly committed the treaty annexing korea to the empire of japan promulgated august 29 1910 marks the final step in a process of control of the ancient empire by her powerful neighbor that has been in progress for several years past in communicating the fact of annexation the japanese government gave to the government of the united states assurances of the full protection of the rights of american citizens in korea under the changed conditions friendly visits of many distinguished persons from the far east have been made during the year chief among these were their imperial highnesses princes and of china and his imperial highness prince higashi fushimi and prince tokugawa president of the house of peers of japan the secretary of war has recently visited japan and china in connection with his tour to the philippines and a large delegation of american business men are at present traveling in china this exchange of friendly visits has had the happy effect of even further strengthening our friendly international relations during the past year several of our southern sister republics celebrated the one hundredth anniversary of their independence in honor of these events special embassies were sent from this country to argentina chile and mexico where the gracious reception and splendid hospitality extended them manifested the cordial relations and friendship existing between those countries and the united states relations which i am happy to believe have never before been upon so high a plane and so solid a basis as at present the congressional commission appointed under a concurrent resolution to attend the festivities celebrating the centennial anniversary of mexican independence together with a special ambassador were received with the highest honors and with the greatest cordiality and returned with the report of the bounteous hospitality and warm reception of president diaz and the mexican people which left no doubt of the desire of the immediately neighboring republic to continue the mutually beneficial and intimate relations which i feel sure the two governments will ever cherish at the fourth conference which met in buenos aires during july and august last after seven weeks of harmonious deliberation three conventions were signed providing for the regulation of patents and copyrights which when ratified by the different governments will go far toward furnishing to american authors patentees and owners of the protection needed in localities where heretofore it has been either lacking or inadequate further a convention for the arbitration of pecuniary claims was signed and a number of important resolutions passed the conventions will in due course be transmitted to the senate and the report of the delegation of the united states will be communicated to the congress for its information the special cordiality between representative men from all parts of america which was shown at this conference can not fail to react upon and draw still closer the relations between the countries which took part in it the international bureau of american republics is doing a broad and useful work for pan american commerce and comity its duties were much enlarged by the international conference of american states at buenos aires and its name was shortened to the more practical and expressive term of pan american union located now in its new building which was specially dedicated april 26 of this year to the development of friendship trade and peace among the american nations it has improved instrumentalities to serve the republics of this hemisphere i am glad to say that the action of the united states in its desire to remove imminent danger of war between peru and ecuador growing out of a boundary dispute with the cooperation of brazil and the argentine republic as joint mediators with this government has already resulted successfully in preventing war the government of chile while not one of the mediators lent effective aid in furtherance of a preliminary agreement likely to lead on to an amicable settlement and it is not doubted that the good offices of the mediating powers and the conciliatory cooperation of the governments directly interested will finally lead to a removal of this perennial because of friction between ecuador and peru the inestimable value of cordial cooperation between the sister republics of america for the maintenance of peace in this hemisphere has never been more clearly shown than in this mediation by which three american governments have given to this hemisphere the honor of first invoking the most provisions of the hague convention for the pacific settlement of international disputes there has been signed by the representatives of the united states and mexico a protocol submitting to the united boundary commission whose membership for the purpose of this case is to be increased by the addition of a citizen of canada the question of sovereignty over the chamizal tract which lies within the present physical boundaries of the city of e1 paso tex the determination of this question will remove a source of no little annoyance to the two governments the republic of honduras has for many years been burdened with a heavy bonded debt held in europe the interest on which long ago fell in arrears finally conditions were such that it became imperative to refund the debt and place the finances of the republic upon a sound basis last year a group of american bankers undertook to do this and to advance funds for railway and other improvements contributing directly to the country prosperity and commerce an arrangement which has long been desired by this government negotiations to this end have been under way for more than a year and it is now confidently believed that a short time will suffice to conclude an arrangement which will be satisfactory to the foreign creditors eminently advantageous to honduras and highly creditable to the judgment and foresight of the honduranean government this is much to be desired since as recognized by the washington conventions a strong honduras would tend immensely to the progress and prosperity of central america during the past year the republic of nicaragua has been the scene of internecine struggle general zelaya for seventeen years the absolute ruler of nicaragua was throughout his career the disturber of central america and opposed every plan for the promotion of peace and friendly relations between the five republics when the people of nicaragua were finally driven into rebellion by his lawless exactions he violated the laws of war by the unwarranted execution of two american citizens who had regularly enlisted in the ranks of the revolutionists this and other offenses made it the duty of the american government to take measures with a view to ultimate reparation and for the safeguarding of its interests this involved the breaking off of all diplomatic relations with the zelaya government for the reasons laid down in a communication from the secretary of state which also notified the contending factions in nicaragua that this government would hold each to strict accountability for outrages on the rights of american citizens american forces were sent to both coasts of nicaragua to be in readiness should occasion arise to protect americans and their interests and remained there until the war was over and peace had returned to that unfortunate country these events together with zelaya continued exactions brought him so clearly to the bar of public opinion that he was forced to resign and to take refuge abroad in the communication of the secretary of state to the charge of the zelaya government the opinion was expressed that the revolution represented the wishes of the majority of the nicaraguan people this has now been proved beyond doubt by the fact that since the complete overthrow of the madriz government and the occupation of the capital by the forces of the revolution all factions have united to maintain public order and as a result of discussion with an agent of this government sent to managua at the request of the provisional government comprehensive plans are being made for the future welfare of nicaragua including the rehabilitation of public credit the moderation and conciliatory spirit shown by the various factions give ground for the confident hope that nicaragua will soon take its rightful place among the and progressive countries of the world it gratifies me exceedingly to announce that the argentine republic some months ago placed with american manufacturers a contract for the construction of two and certain additional naval equipment the extent of this work and its importance to the argentine republic make the placing of the bid an earnest of friendly feeling toward the united states the new tariff law in section 2 respecting the maximum and minimum tariffs of the united states which provisions came into effect on april 1 1910 imposed upon the president the responsibility of determining prior to that date whether or not any undue discrimination existed against the united states and its products in any country of the world with which we sustained commercial relations in the case of several countries instances of apparent undue discrimination against american commerce were found to exist these discriminations were removed by negotiation prior to april 1 1910 when the maximum tariff was to come into operation with respect to importations from all those countries in whose favor no proclamation applying the minimum tariff should be issued by the president one hundred and such proclamations were issued this series of proclamations embraced the entire commercial world and hence the minimum tariff of the united states has been given universal application thus testifying to the satisfactory character of our trade relations with foreign countries marked advantages to the commerce of the united states were obtained through these tariff settlements foreign nations are fully cognizant of the fact that under section 2 of the tariff act the president is required whenever he is satisfied that the treatment accorded by them to the products of the united states is not such as to entitle them to the benefits of the minimum tariff of the united states to withdraw those benefits by proclamation giving ninety days notice after which the maximum tariff will apply to their dutiable products entering the united states in its general operation this section of the tariff law has thus far proved a guaranty of continued commercial peace although there are unfortunately instances where foreign governments deal arbitrarily with american interests within their jurisdiction in a manner injurious and inequitable the policy of broader and closer trade relations with the dominion of canada which was initiated in the adjustment of the maximum and minimum provisions of the tariff act of august 1909 has proved mutually beneficial it justifies further efforts for the readjustment of the commercial relations of the two countries so that their commerce may follow the channels natural to contiguous countries and be commensurate with the steady expansion of trade and industry on both sides of the boundary line the reciprocation on the part of the 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 the negotiations which had been temporarily suspended during the summer resumed in accordance with this suggestion the secretary of state by my direction dispatched two representatives of the department of state as special commissioners to ottawa to confer with representatives of the dominion government they were authorized to take such steps for formulating a reciprocal trade agreement as might be necessary and to receive and consider any propositions which the dominion government might care to submit pursuant to the instructions issued conferences were held by these commissioners with officials of the dominion government at ottawa in the early part of november the negotiations were conducted on both sides in a spirit of mutual accommodation the discussion of the common commercial interests of the two countries had for its object a satisfactory basis for a trade arrangement which offers the prospect of a freer interchange for the products of the united states and of canada the conferences were adjourned to be resumed in washington in january when it is hoped that the aspiration of both governments for a mutually advantageous measure of reciprocity will be realized all these tariff negotiations so vital to our commerce and industry and the duty of jealously guarding the equitable and just treatment of our products capital and industry abroad devolve upon the department of state the argentine contracts like the subsequent important one for argentine railway equipment and those for cuban government vessels were secured for our manufacturers largely through the good offices of the department of state the efforts of that department to secure for citizens of the united states equal opportunities in the markets of the world and to expand american commerce have been most successful the volume of business obtained in new fields of competition and upon new lines is already very great and congress is urged to continue to support the department of state in its endeavors for further trade expansion our foreign trade merits the best support of the government and the most earnest endeavor of our manufacturers and merchants who if they do not already in all cases need a foreign market are certain soon to become dependent on it therefore now is the time to secure a strong position in this field i can not leave this subject without emphasizing the necessity of such legislation as will make possible and convenient the establishment of american banks and branches of american banks in foreign countries only by such means can our foreign trade be favorably financed necessary credits be arranged and proper avail be made of commercial opportunities in foreign countries and most especially in latin america another instrumentality indispensable to the unhampered and natural development of american commerce is merchant marine all maritime and commercial nations recognize the importance of this factor the greatest commercial nations our competitors jealously foster their merchant marine perhaps nowhere is the need for rapid and direct mail passenger and freight communication quite so urgent as between the united states and latin america we can secure in no other quarter of the world such immediate benefits in friendship and commerce as would flow from the establishment of direct lines of communication with the countries of latin america adequate to meet the requirements of a rapidly increasing appreciation of the reciprocal dependence of the countries of the western hemisphere upon each other products sympathies and assistance i alluded to this most important subject in my last annual message it has often been before you and i need not recapitulate the reasons for its recommendation unless prompt action be taken the completion of the panama canal will find this the only great commercial nation unable to avail in international maritime business of this great improvement in the means of the world commercial intercourse quite aside from the commercial aspect unless we create a merchant marine where can we find the seafaring population necessary as a natural naval reserve and where could we find in case of war the transports and subsidiary vessels without which a naval fleet is arms without a body for many reasons i can not too strongly urge upon the congress the passage of a measure by mail subsidy or other subvention adequate to guarantee the establishment and rapid development of an american merchant marine and the restoration of the american flag to its ancient place upon the seas of course such aid ought only to be given under conditions of publicity of each beneficiary business and accounts which would show that the aid received was needed to maintain the trade and was properly used for that purpose with our increasing international intercourse it becomes incumbent upon me to repeat more emphatically than ever the recommendation which i made in my inaugural address that congress shall at once give to the courts of the united states jurisdiction to punish as a crime the violation of the rights of aliens secured by treaty with the united states in order that the general government of the united states shall be able when called upon by a friendly nation to redeem its solemn promise by treaty to secure to the citizens or subjects of that nation resident in the united states freedom from violence and due process of law in respect to their life liberty and property i also strongly commend to the favorable action of the congress the enactment of a law applying to the diplomatic and consular service the principles embodied in section 1753 of the revised statutes of the united states in the civil service act of january 16 1883 and the executive orders of june 27 1906 and of november 26 1909 the excellent results which have attended the partial application of civil service principles to the diplomatic and consular services are an earnest of the benefit to be wrought by a wider and more permanent extension of those principles to both branches of the foreign service the marked improvement in the consular service during the four years since the principles of the civil service act were applied to that service in a limited way and the good results already noticeable from a similar application of civil service principles to the diplomatic service a year ago convince me that the enactment into law of the general principles of the existing executive regulations could not fail to effect further improvement of both branches of the foreign service offering as it would by its assurance of permanency of tenure and promotion on merit an inducement for the entry of capable young men into the service and an incentive to those already in to put forth their best efforts to attain and maintain that degree of efficiency which the interests of our international relations and commerce demand during many years past appeals have been made from time to time to congress in favor of government ownership of embassy and legation premises abroad the arguments in favor of such ownership have been many and oft repeated and are well known to the congress the acquisition by the government of suitable residences and offices for its diplomatic officers especially in the capitals of the states and of europe is so important and necessary to an improved diplomatic service that i have no hesitation in urging upon the congress the passage of some measure similar to that favorably reported by the house committee on foreign affairs on february 14 1910 report no 438 that would authorize the gradual and annual acquisition of premises for diplomatic use the work of the diplomatic service is devoid of partisanship its importance should appeal to every american citizen and should receive the generous consideration of the congress every effort has been made by each department chief to reduce the estimated cost of his department for the ensuing fiscal year ending june 30 1912 i say this in order that congress may understand that these estimates thus made present the smallest sum which will maintain the departments bureaus and offices of the government and meet its other obligations under existing law and that a cut of these estimates would result in embarrassing the executive branch of the government in the performance of its duties this remark does not apply to the river and harbor estimates except to those for expenses of maintenance and the meeting of obligations under authorized contracts nor does it apply to the public building bill nor to the navy building program of course as to these congress could withhold any part or all of the estimates for them without interfering with the discharge of the ordinary obligations of the government or the performance of the functions of its departments bureaus and offices the final estimates for the year ending june 30 1912 as they have been sent to the treasury on november 29 of this year for the ordinary expenses of the government including those for public buildings rivers and harbors and the navy building program amount to this is less than the appropriations for the fiscal year ending june 30 1911 it is less than the total estimates including supplemental estimates submitted to congress by the treasury for the year 1911 and is less than the original estimates submitted by the treasury for 1911 these figures do not include the appropriations for the panama canal the policy in respect to which ought to be and is to spend as much each year as can be economically and effectively expended in order to complete the canal as promptly as possible and therefore the ordinary motive for cutting down the expense of the government does not apply to appropriations for this purpose it will be noted that the estimates for the panama canal for the ensuing year are more than millions of dollars an increase of twenty millions over the amount appropriated for this year a difference due to the fact that the estimates for 1912 include something over nineteen millions for the fortification of the canal against the estimated expenditures of the treasury has estimated receipts for next year making a probable surplus of ordinary receipts over ordinary expenditures of about a table showing in detail the estimates and the comparisons referred to follows the treasury department is one of the original departments of the government with the changes in the monetary system made from time to time and with the creation of national banks it was thought necessary to organize new bureaus and divisions which were added in a somewhat haphazard way and resulted in a duplication of duties which might well now be ended this lack of system and economic coordination has attracted the attention of the head of that department who has been giving his time for the last two years with the aid of experts and by consulting his bureau chiefs to its reformation he has abolished four hundred places in the civil service without at all injuring its efficiency merely to illustrate the character of the reforms that are possible i shall comment on some of the specific changes that are being made or ought to be made by legislative aid the auditing system in vogue is as old as the government and the methods used are antiquated there are six auditors and seven assistant auditors for the nine departments and under the present system the only function which the auditor of a department exercises is to determine on accounts presented by disbursing officers that the object of the expenditure was within the law and the appropriation made by congress for the purpose on its face and that the calculations in the accounts are correct he does not examine the merits of the transaction or determine the reasonableness of the price paid for the articles purchased nor does he furnish any substantial check upon disbursing officers and the heads of departments or bureaus with sufficient promptness to enable the government to recoup itself in full measure for unlawful expenditure a careful plan is being devised and will be presented to congress with the recommendation that the force of auditors and employees under them be greatly reduced thereby effecting substantial economy but this economy will be small compared with the larger economy that can be effected by consolidation and change of methods the possibilities in this regard have been shown in the reduction of expenses and the importance of methods and efficiency in the office of the auditor for the post office department who without in the slightest degree impairing the comprehensiveness and efficiency of his work has cut down the expenses of his office a year again in the collection of the revenues especially the customs revenues a very great improvement has been effected and further improvements are contemplated by the detection of frauds in weighing sugar upwards of have been recovered from the beneficiaries of the fraud and an entirely new system free from the possibilities of such abuse has been devised the department has perfected the method of collecting duties at the port of new york so as to save the government upwards of ten or eleven million dollars and the same spirit of change and reform has been infused into the other customs offices of the country the methods used at many places are archaic there would seem to be no reason at all why the surveyor of the port who really acts for the collector should not be a subordinate of the collector at a less salary and directly under his control and there is but little reason for the existence of the naval officer who is a kind of local auditor his work is mainly an examination of accounts which is conducted again in washington and which results in no greater security to the government the naval officers in the various ports are presidential appointees many of them drawing good salaries and those offices should be abolished or with reduced force made part of the central auditing system there are entirely too many customs districts and too many customs collectors these districts should be consolidated and the collectors in charge of them who draw good salaries many of them out of proportion to the collections made should be abolished or treated as mere branch offices in accordance with the plan of the treasury department which will be presented for the consideration of congress as an illustration the cost of collecting 1 of revenue at typical small ports like the port of york was at the port of annapolis it cost to collect 1 of revenue at natchez at alexandria it is not essential to the preventing of smuggling that customs districts should be increased in number the violation of the customs laws can be quite as easily prevented and much more economically by the service and by the use of the special agent traveling force of the treasury department a reorganization of the special customs agents has been perfected with a view to retaining only those who have special knowledge of the customs laws regulations and usual methods of evasion and with this improvement there will be no danger to the government from the recommended consolidation and abolition of customs districts an investigation of the appraising system now in vogue in new york city has shown a sacrifice of the interests of the government by which is in the course of being remedied by reorganization and the employment of competent experts prosecutions have been instituted growing out of the frauds there discovered and are now awaiting hearing in the federal courts very great improvements have been made in respect to the mints and assay offices diminished appropriations have been asked for those whose continuance is unnecessary and this year estimate of expenses is less than two years ago there is an opportunity for further saving in the abolition of several mints and assay offices that have now become unnecessary modern machinery has been installed there more and better work has been done and the appropriations have been consequently diminished in the bureau of engraving and printing great economies have been effected useless divisions have been abolished with the result of saving this year in the total expenses of the bureau despite increased business the treasurer office and that of the division of public moneys in part cover the same functions and this is also true of the office of the register and the division of loans and currency plans for the elimination of the duplication in these offices will be presented to congress the office of the comptroller of the currency is one most important in the preservation of proper banking methods in the national banking system of the united states and the present comptroller has impressed his subordinates with the necessity of so conducting their investigations as to establish the principle that every bank failure is unnecessary because proper inspection and notice of threatening conditions to the responsible directors and officers can prevent it in our public buildings we still suffer from the method of appropriation which has been so much criticized in connection with our rivers and harbors some method should be devised for controlling the supply of public buildings so that they will harmonize with the actual needs of the government then when it comes 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 government buildings which are in effect warehouses for the economical handling of transportation of thousands of tons of mail have been made monumental structures and often located far from the convenient and economical spot in the actual construction of the buildings a closer scrutiny of the methods employed by the government architects or by architects employed by the government have resulted in decided economies it is hoped that more time will give opportunity for a more thorough reorganization the last public building bill carried authorization for the ultimate expenditure of and i approved it because of the many good features it contained just as i approved the river and harbor bill but it was drawn upon a principle that ought to be abandoned it seems to me that the wiser method of preparing a public building bill would be the preparation of a report by a commission of government experts whose duty it should be to report to congress the government needs in the way of the construction of public buildings in every part of the country just as the army engineers make report with reference to the utility of proposed improvements in rivers and harbors with the added function which i have recommended for the army engineers of including in their recommendation the relative importance of the various projects found to be worthy of approval and execution as the treasury department is the one through which the income of the government is collected and its expenditures are disbursed this seems a proper place to consider the operation of the existing tariff bill which became a law august 6 1909 as an measure the existing tariff bill has never been exceeded by any customs bill in the history of the country the corporation excise tax proportioned to the net income of every business corporation in the country has worked well the tax has been easily collected its prompt payment indicates that the incidence of the tax has not been heavy it offers moreover an opportunity for knowledge by the government of the general condition and business of all corporations and that means by far the most important part of the business of the country in the original act provision was made for the publication of returns this provision was subsequently amended by congress and the matter left to the regulation of the president i have directed the issue of the needed regulations and have made it possible for the public generally to know from an examination of the record the returns of all corporations the stock of which is listed on any public stock exchange or is offered for sale to the general public by advertisement or otherwise the returns of those corporations whose stock is not so listed or offered for sale are directed to be open to the inspection and examination of creditors and stockholders of the corporation whose record is sought the returns of all corporations are subject to the inspection of any government officer or to the examination of any court in which the return made by the corporation is relevant and competent evidence the schedules of the rates of duty in the payne tariff act have been subjected to a great deal of criticism some of it just more of it unfounded and to much misrepresentation the act was adopted in pursuance 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 producing the imported article abroad and the cost of producing it at home together with such addition to that difference as might give a reasonable profit to the home producer the chief criticism of this tariff is a charge that in respect to a number of the schedules the declared measure was not followed but a higher difference retained or inserted by way of undue discrimination in favor of certain industries and manufactures little if any of the criticism of the tariff has been directed against the protective principle above stated the time in which the tariff was prepared undoubtedly was so short as to make it impossible for the congress and its experts to acquire all the information necessary strictly to conform to the declared measure in order to avoid criticism of this kind in the future and for the of more nearly conforming to the party promise congress at its last session made provision at my request for the continuance of a board created under the authority of the maximum and minimum clause of the tariff bill and authorized this board to expend the money appropriated under my direction for the ascertainment of the cost of production at home and abroad of the various articles included in the schedules of the tariff the tariff board thus appointed and authorized has been diligent in preparing itself for the necessary investigations the hope of those who have advocated the use of this board for tariff purposes is that the question of the rate of a duty imposed shall become more of a business question and less of a political question to be ascertained by experts of long training and accurate knowledge the halt in business and the shock to business due to the announcement that a new tariff bill is to be prepared and put in operation will be avoided by treating the schedules one by one as occasion shall arise for a change in the rates of each and only after a report upon the schedule by the tariff board competent to make such report it is not likely that the board will be able to make a report during the present session of congress on any of the 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 opening of the new congress or at least during the session of that congress to bring to its attention the facts in regard to those schedules in the present tariff that may prove to need amendment the carrying out of this plan of course involves the full cooperation of congress in limiting the consideration in tariff matters to one schedule at a time because if a proposed amendment to a tariff bill is to involve a complete consideration of all the schedules and another revision then we shall only repeat the evil from which the business of this country has in times past suffered most grievously by stagnation and uncertainty pending a resettlement of a law affecting all business directly or indirectly i can not too much emphasize the importance and benefit of the plan above proposed for the treatment of the tariff it facilitates the removal of noteworthy defects in an important law without a disturbance of business prosperity which is even more important to the happiness and the comfort of the people than the elimination of instances of injustice in the tariff the inquiries which the members of the tariff board made during the last summer into the methods pursued by other governments with reference to the fixing of tariffs and the determination of their effect upon trade show that each government maintains an office or bureau the officers and employees of which have made their life work the study of tariff matters of foreign and home prices and cost of articles imported and the effect of the tariff upon trade so that whenever a change is thought to be necessary in the tariff law this office is the source of the most reliable information as to the propriety of the change and its effect i am strongly convinced that we need in this government just such an office and that it can be secured by making the tariff board already appointed a permanent tariff commission with such duties powers and emoluments as it may seem wise to congress to give it has been proposed to enlarge the board from three to five the present number is convenient but i do not know that an increase of two members would be objectionable whether or not the protective policy is to be continued and the degree of protection to be accorded to our home industries are questions which the people must decide through their chosen representatives but whatever policy is adopted it is clear that the necessary legislation should be based on an impartial thorough and continuous study of the facts the method of impartial scientific study by experts as a preliminary to legislation which i hope to see ultimately adopted as our fixed national policy with respect to the tariff rivers and harbors waterways and public buildings is also being pursued by the nonpartisan monetary commission of congress an exhaustive and most valuable study of the banking and currency systems of foreign countries has been completed a comparison of the business methods and institutions of our powerful and successful commercial rivals with our own is sure to be of immense value i urge upon congress the importance of a nonpartisan and disinterested study and consideration of our banking and currency system it is idle to dream of commercial expansion and of the development of our national trade on a scale that measures up to our matchless opportunities unless we can lay a solid foundation in a sound and enduring banking and currency system the problem is not partisan is not sectional it is national the war department has within its jurisdiction the management of the army and in connection therewith the coast defenses the government of the dependencies of the philippines and of porto rico the recommendation of plans for the improvement of harbors and waterways and their execution when adopted and by virtue of an executive order the supervision of the construction of the panama canal the army of the united states is a small body compared with the total number of people for the preservation of whose peace and good order it is a last resource the army now numbers about men of whom about are engaged in the coast artillery and detailed to the management and use of the guns in the forts and batteries that protect our coasts the rest of the army or about is the mobile part of our national forces and is divided into 31 regiments of infantry including the porto rican regiment 15 regiments of cavalry 6 regiments of field artillery a corps of ordnance of engineers and of signal a quartermaster department a commissary department and a medical corps the general plan for an army of the united states at peace should be that of a skeleton organization with an excess of trained officers and thus capable of rapid enlargement by enlistments to be supplemented in emergency by the national militia and a volunteer force in some measure this plan has been adopted in the very large proportion of cavalry and field artillery as compared with infantry in the present army and on a peace basis an infantry force can be trained in six months a cavalry or a light artillery force not under one and or two years hence the importance of having ready a larger number of the more skilled soldiers the militia system for which congress by the constitution is authorized to provide was developed by the dick law under which the discipline the tactics the drill the rank the uniform and the various branches of the militia are assimilated as far as possible to those of the regular army under the militia law as the constitution provides the governors of the states appoint the militia officers but by appropriations from congress states have been induced to comply with the rules of assimilation between the regular army and the militia so that now there is a force the efficiency of which differs in different states which could be incorporated under a single command with the regular army and which for some time each year receives the benefit of drill and maneuvers with conditions approximating actual military service under the supervision of regular army officers in the army of the united states in addition to the regular forces and the militia forces which may be summoned to the defense of the nation by the president there is also the volunteer force which made up a very large part of the army in the civil war and which in any war of long continuance would become its most important constituent there is an act which dates from the civil war known as the volunteer act which makes provision for the enlistment of volunteers in the army of the united states in time of war this was found to be so defective in the philippine war that a special act for the organization of volunteer regiments to take part in that war was adopted and it was much better adapted to the necessities of the case there is now pending in congress a bill repealing the present volunteer act and making provision for the organization of volunteer forces in time of war which is admirably adapted to meet the exigencies which would be then presented the passage of the bill would not entail a dollar expense upon the government at this time or in the future until war comes but when war does come the methods therein directed are in accordance with the best military judgment as to what they ought to be and the act would prevent the necessity for the discussion of new legislation and the delays incident to its consideration and adoption i earnestly urge the passage of this volunteer bill i further recommend that congress establish a commission to determine as early as practicable a comprehensive policy for the organization mobilization and administration of the regular army the organized militia and the volunteer forces in the event of war one of the great difficulties in the prompt organization and mobilization of militia and volunteer forces is the absence of competent officers of the rank of captain to teach the new army by the unit of the company the business of being soldiers and of taking care of themselves so as to render effective service this need of army officers can only be supplied by provisions of law authorizing the appointment of a greater number of army officers than are needed to supply the commands of regular army troops now enlisted in the service there are enough regular army officers to command the troops now enlisted but congress has authorized and the department has followed the example of congress and exercised the authority conferred by detailing these army officers to duty other than that of the command of troops for instance there are a large number of army officers assigned to duty with military colleges or in colleges in which military training is given then a large number of officers are assigned to general staff duty and there are various other places to which army officers can be and are legally assigned which take them away from their regiments and companies in order that the militia of each state should be properly drilled and made more like the regular army regular army officers should be detailed to assist the of each state in the supervision of the state militia but this is impossible unless provision is made by congress for a very considerable increase in the number of company and field officers of the army a bill is pending in congress for this purpose and i earnestly hope that in the interest of the proper development of a republican army an army small in the time of peace but possible of prompt and adequate enlargement in time of war shall become possible under the laws of the united states a bill the strong argument for which can be based on the ground quite similar to that of the increased officers bill is a bill for the increase of sixty in the army engineers the army engineers are largely employed in the expenditure of the moneys appropriated for the improvement of rivers and harbors and in the construction of the panama canal this in addition to their military duties which include the building of fortifications both on our coasts and in our dependencies requires many more engineers than the army has and public works civil and military are therefore much delayed i earnestly recommend the passage of this bill which passed the house at the last session and is now pending in the senate i have directed that the estimates for appropriation for the improvement of coast defenses in the united states should be reduced to a minimum while those for the completion of the needed fortifications at corregidor in the philippine islands and at pearl harbor in the hawaiian islands should be expedited as much as possible the proposition to make olongapo and subig bay the naval base for the pacific was given up and it is to be treated merely as a supply station while the fortifications in the philippines are to be largely confined to corregidor island and the adjacent islands which command entrance to manila bay and which are being rendered impregnable from land and sea attack the pacific naval base has been transferred to pearl harbor in the hawaiian islands this necessitates the heavy fortification of the harbor and the establishment of an important military station near honolulu i urge that all the estimates made by the war department for these purposes be approved by congressional appropriation during the last summer at my request the secretary of war visited the philippine islands and has described his trip in his report he found the islands in a state of tranquillity and growing prosperity due largely to the change in the tariff laws which has opened the markets of america to the products of the philippines and has opened the philippine markets to american manufactures the rapid increase in the trade between the two countries is shown in the following table exclusive of gold and silver latest monthly returns show exports for the year ending august 1910 to the united states or 49 per cent of the total against to the united states or 34 per cent of the total for the year ending august 1909 exclusive of gold and silver and government supplies latest monthly returns show imports for the year ending august 1910 from the united states or 30 per cent of the total against from the united states or 18 per cent of the total for the year ending august 1909 the year has been one of prosperity and progress in porto rico certain political changes are embodied in the bill to provide a civil government for porto rico and for other purposes which passed the house of representatives on june 15 1910 at the last session of congress and is now awaiting the action of the senate the importance of those features of this bill relating to public health and sanitation can not be overestimated the removal from politics of the judiciary by providing for the appointment of the municipal judges is excellent and i recommend that a step further be taken by providing therein for the appointment of secretaries and marshals of these courts the provision in the bill for a partially elective senate the number of elective members being progressively increased is of doubtful wisdom and the composition of the senate as provided in the bill when introduced in the house seems better to meet conditions existing in porto rico this is an important measure and i recommend its early consideration and passage i have already expressed my opinion to congress in respect to the character of the river and harbor bills which should be enacted into law and i have exercised as much power as i could under the law in directing the chief of engineers to make his report to congress conform to the needs of the committee framing such a bill in determining which of the proposed improvements is the more important and ought to be completed first and promptly at the instance of colonel goethals the army engineer officer in charge of the work on the panama canal i have just made a visit to the isthmus to inspect the work done and to consult with him on the ground as to certain problems which are likely to arise in the near future the progress of the work is most satisfactory if no unexpected obstacle presents itself the canal will be completed well within the time fixed by colonel goethals to wit january 1 1915 and within the estimate of cost press reports have reached the united states from time to time giving accounts of slides of earth of very large yardage in the culebra cut and elsewhere along the line from which it might be inferred that the work has been much retarded and that the time of completion has been necessarily postponed the report of doctor hayes of the geological survey whom i sent within the last month to the isthmus to make an investigation shows that this section of the canal zone is composed of sedimentary rocks of rather weak structure and subject to almost immediate disintegration when exposed to the air subsequent to the deposition of these sediments igneous rocks harder and more durable have been thrust into them and being cold at the time of their intrusion united but indifferently with the sedimentary rock at the contacts the result of these conditions is that as the cut is deepened causing unbalanced pressures slides from the sides of the cut have occurred these are in part due to the flowing of surface soil and decomposed sedimentary rocks upon inclined surfaces of the underlying undecomposed rock and in part by the crushing of structurally weak beds under excessive pressure these slides occur on one side or the other of the cut through a distance of 4 or 5 miles and now that their character is understood allowance has been made in the calculations of yardage for the amount of slides which will have to be removed and the greater slope that will have to be given to the bank in many places in order to prevent their recurrence such allowance does not exceed ten millions of yards considering that the number of yards removed from this cut on an average of each month through the year is and that the total remaining to be excavated including slides is about yards it is seen that this addition to the excavation does not offer any great reason for delay while this feature of the material to be excavated in the cut will not seriously delay or obstruct the construction of a canal of the lock type the increase of excavation due to such slides in the cut made 85 feet deeper for a canal would certainly have been so great as to delay its completion to a time beyond the patience of the american people among questions arising for present solution is whether the canal shall be fortified i have already stated to the congress that i strongly favor fortification and i now reiterate this opinion and ask your consideration of the subject in the light of the report already before you made by a competent board if in our discretion we believe modern fortifications to be necessary to the adequate protection and policing of the canal then it is our duty to construct them we have built the canal it is our property by convention we have indicated our desire for and indeed undertaken its universal and equal use it is also well known that one of the chief objects in the construction of the canal has been to increase the military effectiveness of our navy failure to fortify the canal would make the attainment of both these aims depend upon the mere moral obligations of the whole international public obligations which we would be powerless to enforce and which could never in any other way be absolutely safeguarded against a desperate and irresponsible enemy another question which arises for consideration and possible legislation is the question of tolls in the canal this question is necessarily affected by the probable tonnage which will go through the canal it is all a matter of estimate but one of the government commission in 1900 investigated the question and made a report he concluded that the total tonnage of the vessels employed in commerce that could use the isthmian canal in 1914 would amount to tons net register and that this traffic would increase per cent per decade that it was not probable that all the commerce included in the totals would at once abandon the routes at present followed and make use of the new canal and that it might take some time perhaps two years to readjust trade with reference to the new conditions which the canal would establish he did not include moreover the tonnage of war vessels although it is to be inferred that such vessels would make considerable use of the canal in the matter of tolls he reached the conclusion that a dollar a net ton would not drive business away from the canal but that a higher rate would do so in determining what the tolls should be we certainly ought not to insist that they should at once amount to enough to pay the interest on the investment of which the united states has made in the construction of the canal we ought not to do this first because the benefit to be derived by the united states from this expenditure is not to be measured solely by a return upon the investment if it were then the construction might well have been left to private enterprise it was because an adequate return upon the money invested could not be expected immediately or in the near future and because there were peculiar political advantages to be derived from the construction of the canal that it fell to the government to advance the money and perform the work in addition to the benefit to our naval strength the canal greatly increases the trade facilities of the united states it will undoubtedly cheapen the rates of transportation in all freight between the eastern and western seaboard then if we are to have a world canal and if we are anxious that the world trade shall use it we must recognize that we have an active competitor in the suez canal and that there are other means of carriage between the two oceans by the tehuantepec railroad and by other railroads and freight routes in central america in all these cases the question whether the panama canal is to be used and its tonnage increased will be determined mainly by the charge for its use my own impression is that the tolls ought not to exceed 1 per net ton on january 1 1911 the tolls in the suez canal are to be 7 francs and 25 centimes for i net ton by suez canal measurement which is a modification of danube measurement a dollar a ton will secure under the figures above a gross income from the panama canal of nearly the cost of maintenance and operation is estimated to exceed ultimately of course with the normal increase in trade we hope the income will approximate the interest charges upon the investment the inquiries already made of the chief engineer of the canal show that the present consideration of this question is necessary in order that the commerce of the world may have time to adjust itself to the new conditions resulting from the opening of this new highway on the whole i should recommend that within certain limits the president be authorized to fix the tolls of the canal and adjust them to what seems to be commercial necessity the next question that arises is as to the maintenance management and general control of the canal after its completion it should be premised that it is an essential part of our navy establishment to have the coal oil and other ship supplies a dry dock and repair shops conveniently located with reference to naval vessels passing through the canal now if the government for naval purposes is to undertake to furnish these conveniences to the navy and they are conveniences equally required by commercial vessels there would seem to be strong reasons why the government should take over and include in its management the furnishing not only to the navy but to the public and facilities and the sale of coal oil and other ship supplies the maintenance of a lock canal of this enormous size in a sparsely populated country and in the tropics where the danger from disease is always present requires a large and complete and organization with full police powers exercising the utmost care the visitor to the canal who is impressed with the wonderful freedom from tropical diseases on the isthmus must not be misled as to the constant vigilance that is needed to preserve this condition the vast machinery of the locks the necessary amount of dredging the preservation of the banks of the canal from slides the operation and the maintenance of the equipment of the railway will all require a force not of course to be likened in any way to the present organization for construction but a skilled body of men who can keep in a state of usefulness this great instrument of commerce such an organization makes it easy to include within its functions the furnishing of fuel repairs and supply facilities to the trade of the world these will be more essential at the isthmus of panama than they are at port said or suez because there are no depots for coal supplies and other commercial necessities within thousands of miles of the isthmus another important reason why these ancillary duties may well be undertaken by the government is the opportunity for discrimination between patrons of the canal that is offered where private concessions are granted for the furnishing of these facilities nothing would create greater prejudice against the canal than the suspicion that certain lines of traffic were favored in the furnishing of supplies or that the supplies were controlled by any large interest that might have a motive for increasing the cost of the use of the canal it may be added that the termini are not ample enough to permit the fullest competition in respect to the furnishing of these facilities and necessities to the world trade even if it were wise to invite such competition and the granting of the concession would necessarily under these circumstances take on the appearance of privilege or monopoly i can not close this reference to the canal without suggesting as a wise amendment to the interstate commerce law a provision prohibiting interstate commerce railroads from owning or controlling ships engaged in the trade through the panama canal i believe such a provision may be needed to save to the people of the united states the benefits of the competition in trade between the eastern and western seaboards which this canal was constructed to secure the duties of the department of justice have been greatly increased by legislation of congress enacted in the interest of the general welfare of the people and extending its activities into avenues plainly within its constitutional jurisdiction but which it has not been thought wise or necessary for the general government heretofore to occupy i am glad to say that under the appropriations made for the department the has so improved its organization that a vast amount of litigation of a civil and criminal character has been disposed of during the current year this will explain the necessity for slightly increasing the estimates for the expenses of the department his report shows the recoveries made on behalf of the government of duties fraudulently withheld public lands improperly patented fines and penalties for trespass prosecutions and convictions under the antitrust law and prosecutions under the law i invite especial attention to the prosecutions under the federal law of the bucket shops and of those schemes to defraud in which the use of the mail is an essential part of the fraudulent conspiracy prosecutions which have saved ignorant and weak members of the public and are saving them hundreds of millions of dollars the violations of the antitrust law present perhaps the most important litigation before the department and the number of cases filed shows the activity of the government in enforcing that statute in a special message last year i brought to the attention of congress the propriety and wisdom of enacting a general law providing for the incorporation of industrial and other companies engaged in interstate commerce and i renew my recommendation in that behalf i invite the attention of congress to the great number of claims which at the instance of congress have been considered by the court of claims and decided to be valid claims against the government the delay that occurs in the payment of the money due under the claims injures the reputation of the government as an honest debtor and i earnestly recommend that those claims which come to congress with the judgment and approval of the court of claims should be promptly paid one great crying need in the united states is cheapening the cost of litigation by simplifying judicial procedure and expediting final judgment under present conditions the poor man is at a woeful disadavantage in a legal contest with a corporation or a rich opponent the necessity for the reform exists both in the united states courts and in all state courts in order to bring it about however it naturally falls to the general government by its example to furnish a model to all states a legislative commission appointed by joint resolution of congress to revise the procedure in the united states courts has as yet made no report under the law the supreme court of the united states has the power and is given the duty to frame the equity rules of procedure which are to obtain in the federal courts of first instance in view of the heavy burden of pressing litigation which that court has had to carry with one or two of its members incapacitated through ill health it has not been able to take up problems of improving the equity procedure which has practically remained the same since the organization of the court in 1789 it is reasonable to expect that with all the vacancies upon the court filled it will take up the question of cheapening and simplifying the procedure in equity in the courts of the united states the equity business is much the more important in the federal courts and i may add much the more expensive i am strongly convinced that the best method of improving judicial procedure at law is to empower the supreme court to do it through the medium of the rules of the court as in equity this is the way in which it has been done in england and thoroughly done the simplicity and expedition of procedure in the english courts today make a model for the reform of other systems several of the lord chancellors of england and of the chief justices have left their lasting impress upon the history of their country by their constructive ability in proposing and securing the passage of remedial legislation effecting law reforms i can not conceive any higher duty that the supreme court could perform than in leading the way to a simplification of procedure in the united states courts no man ought to have as a matter of right a review of his case by the supreme court he should be satisfied by one hearing before a court of first instance and one review by a court of appeals the proper and chief usefulness of a supreme court and especially of the supreme court of the united states is in the cases which come before it so to expound the law and especially the fundamental law the constitution as to furnish precedents for the inferior courts in future litigation and for the executive officers in the construction of statutes and the performance of their legal duties therefore any provisions for review of cases by the supreme court that cast upon that court the duty of passing on questions of evidence and the construction of particular forms of instruments like indictments or wills or contracts decisions not of general application or importance merely clog and burden the court and render more difficult its higher function which makes it so important a part of the framework of our government the supreme court is now carrying an unnecessary burden of appeals of this kind and i earnestly urge that it be removed the statutes respecting the review by the supreme court of the united states of decisions of the court of appeals of the district of columbia ought to be so amended as to place that court in the same position with respect to the review of its decisions as that of the various united states circuit courts of appeals the act of march 2 1907 authorizing appeals by the government from certain judgments in criminal cases where the defendant has not been put in jeopardy within the meaning of the constitution should be amended so that such appeals should be taken to the circuit courts of appeals instead of to the supreme court in all cases except those involving the construction of the constitution or the constitutionality of a statute with the same power in the supreme court to review on certiorari as is now exercised by that court over determinations of the several circuit courts of appeals appeals in copyright cases should reach final judgment in the courts of appeals instead of the supreme court as now the decision of the courts of appeals should be made final also in all cases wherein jurisdiction rests on both diverse citizenship and the existence of a federal question and not as now be reviewable in the supreme court when the case involves more than one thousand dollars appeals from the united states court in porto rico should run to the circuit court of appeals of the third circuit instead of to the supreme court these suggested changes would i am advised relieve the supreme court of the consideration of about 100 cases annually the american bar association has had before it the question of reducing the burden of litigation involved in reversals on review and new trials or and in frivolous appeals in habeas corpus and criminal cases their recommendations have been embodied in bills now pending in congress the recommendations are not radical but they will accomplish much if adopted into law and i earnestly recommend the passage of the bills embodying them i wish to renew my urgent recommendation made in my last annual message in favor of the passage of a law which shall regulate the issuing of injunctions in equity without notice in accordance with the best practice now in vogue in the courts of the united states i regard this of especial importance first because it has been promised and second because it will deprive those who now complain of certain alleged abuses in the improper issuing of injunctions without notice of any real ground for further amendment and will take away all semblance of support for the extremely radical legislation they propose which will be most pernicious if adopted will sap the foundations of judicial power and legalize that cruel social instrument the secondary boycott i further recommend to congress the passage of the bill now pending for the increase in the salaries of the federal judges by which the chief justice of the united states shall receive and the associate justices of the supreme court the circuit judges constituting the circuit court of appeals shall receive and the district judges these judges exercise a wise jurisdiction and their duties require of them a profound knowledge of the law great ability in the dispatch of business and care and delicacy in the exercise of their jurisdiction so as to avoid conflict whenever possible between the federal and the state courts the positions they occupy ought to be filled by men who have shown the greatest ability in their professional work at the bar and it is the poorest economy possible for the government to pay salaries so low for judicial service as not to be able to command the best talent of the legal profession in every part of the country the cost of living is such especially in the large cities that even the salaries fixed in the proposed bill will enable the incumbents to accumulate little if anything to support their families after their death nothing is so important to the preservation of our country and its beloved institutions as the maintenance of the independence of the judiciary and next to the life tenure an adequate salary is the most material contribution to the maintenance of independence on the part of our judges at its last session congress made provision for the establishment of savings banks by the department of this government by which under the general control of trustees consisting of the the secretary of the treasury and the the system could be begun in a few cities and towns and enlarged to cover within its operations as many cities and towns and as large a part of the country as seemed wise the initiation and establishment of such a system has required a great deal of study on the part of the experts in the and treasury departments but a system has now been devised which is believed to be more economical and simpler in its operation than any similar system abroad arrangements have been perfected so that savings banks will be opened in some cities and towns on the 1st of january and there will be a gradual extension of the benefits of the plan to the rest of the country as i have said the department is a great business department and i am glad to note the fact that under its present management principles of business economy and efficiency are being applied for many years there has been a deficit in the operations of the department which has been met by appropriation from the treasury the appropriation estimated for last year from the treasury over and above the receipts of the department was i am glad to record the fact that of that estimated for were saved and returned to the treasury the personal efforts of the secured the effective cooperation of the thousands of postmasters and other postal officers throughout the country in carrying out his plans of reorganization and retrenchment the result is that the has been able to make his estimate of expenses for the present year so low as to keep within the amount the postal service is expected to earn it is gratifying to report that the reduction in the deficit has been accomplished without any curtailment of postal facilities on the contrary the service has been greatly extended during the year in all its branches a principle which the has recommended and sought to have enforced in respect to all appointments has been that those appointees who have rendered good service should be reappointed this has greatly strengthened the interest of postmasters throughout the country in maintaining efficiency and economy in their offices because they believed generally that this would secure for them a further tenure upon the recommendation of the i have included in the classified service all assistant postmasters and i believe that this giving a secure tenure to those who are the most important subordinates of postmasters will add much to the efficiency of their offices and an economical administration a large number of the postmasters are now in the classified service i think it would be wise to put in the classified service the first second and third class postmasters it is more logical to do this than to classify the postmasters for the reason that the are invariably small and the postmasters are necessarily men who must combine some other business with the postmastership whereas the first second and third class postmasters are paid a sufficient amount to justify the requirement that they shall have no other business and that they shall devote their attention to their duties to classify first second and third class postmasters would require the passage of an act changing the method of their appointment so as to take away the necessity for the advice and consent of the senate i am aware that this is inviting from the senate a concession in respect to its quasi executive power that is considerable but i believe it to be in the interest of good administration and efficiency of service to make this change would take the postmasters out of politics would relieve congressmen who now are burdened with the necessity of making recommendations for these places of a responsibility that must be irksome and can create nothing but trouble and it would result in securing from postmasters greater attention to business greater fidelity and consequently greater economy and efficiency in the which they conduct the unrestricted manner in which the franking privilege is now being used by the several branches of the federal service and by congress has laid it open to serious abuses a fact clearly established through investigations recently instituted by the department while it has been impossible without a better control of franking to determine the exact expense to the government of this practice there can be no doubt that it annually reaches into the millions it is believed that many abuses of the franking system could be prevented and consequently a marked economy effected by supplying through the agencies of the postal service special official envelopes and stamps for the free mail of the government all such envelopes and stamps to be issued on requisition to the various branches of the federal service requiring them and such records to be kept of all official stamp supplies as will enable the department to maintain a proper postage account covering the entire volume of free government mail as the first step in the direction of this reform special stamps and stamped envelopes have been provided for use instead of franks in the free transmission of the official mail resulting from the business of the new postal savings system by properly recording the issuance of such stamps and envelopes accurate records can be kept of the cost to the government of handling the postal savings mail which is certain to become an important item of expense and one that should be separately determined in keeping with this plan it is hoped that congress will authorize the substitution of special official stamps and stamped envelopes for the various forms of franks now used to carry free of postage the vast volume of departmental and congressional mail matter during the past year methods of accounting similar to those employed in the most progressive of our business establishments have been introduced in the postal service and nothing has so impeded the department plan in this regard as the impossibility of determining with any exactness how far the various expenses of the postal service are increased by the present unrestricted use of the franking privilege it is believed that the adoption of a more exact method of dealing with this problem as proposed will prove to be of tremendous advantage in the work of placing the postal service on a strictly businesslike basis in my last annual message i invited the attention of congress to the inadequacy of the postal rate imposed upon mail matter in so far as that includes magazines and showed by figures prepared by experts of the department that the government was rendering a service to the magazines costing many millions in excess of the compensation paid an answer was attempted to this by the representatives of the magazines and a reply was filed to this answer by the department the utter inadequacy of the answer considered in the light of the reply of the department i think must appeal to any person whether the answer was all that could be said in behalf of the magazines is another question i agree that the question is one of fact but i insist that if the fact is as the experts of the department show that we are furnishing to the owners of magazines a service worth millions more than they pay for it then justice requires that the rate should be increased the increase in the receipts of the department resulting from this change may be devoted to increasing the usefulness of the department in establishing a parcels post and in reducing the cost of postage to one cent it has been said by the that a fair adjustment might be made under which the advertising part of the magazine should be charged for at a different and higher rate from that of the reading matter this would relieve many useful magazines that are not circulated at a profit and would not shut them out from the use of the mails by a prohibitory rate with respect to the parcels post i respectfully recommend its adoption on all routes and that 11 pounds the international limit be made the limit of carriage in such post and this with a view to its general extension when the income of the will permit it and the postal savings banks shall have been fully established the same argument is made against the parcels post that was made against the postal savings bank that it is introducing the government into a business which ought to be conducted by private persons and is paternalism the department has a great plant and a great organization reaching into the most remote hamlet of the united states and with this machinery it is able to do a great many things economically that if a new organization were necessary it would be impossible to do without extravagant expenditure that is the reason why the postal savings bank can be carried on at a small additional cost and why it is possible to incorporate at a very inconsiderable expense a parcels post in the system a general parcels post will involve a much greater outlay in the last annual report of the secretary of the navy and in my annual message attention was called to the new detail of officers in the navy department by which officers of flag rank were assigned to duty as aides to the secretary in respect to naval operations personnel inspection and material this change was a substantial compliance with the recommendation of the commission on naval reorganization headed by justice moody and submitted to president roosevelt on february 26 1909 through the advice of this committee of line officers the secretary is able to bring about a proper coordination of all the branches of the naval department with greater military efficiency the secretary of the navy recommends that this new organization be recognized by legislation and thus made permanent i concur in the recommendation the secretary in view of the conclusions of a recent court of inquiry on certain phases of marine corps administration recommends that the commandant of the marine corps be appointed for a four years term and that officers of the adjutant and inspector department be detailed from the line he also asks for legislation to improve the conditions now existing in the personnel of officers of the navy particularly with regard to the age and experience of flag officers and captains and points out that it is essential to the highest efficiency of the navy that the age of our officers be reduced and that flag officers particularly should gain proper experience as flag officers in order to enable them to properly command fleets i concur in the secretary recommendations i commend to your attention the report of the secretary on the change in the system of cost accounting in and also to the history of the naval supply fund and the present conditions existing in regard to that matter under previous practice and what now seems to have been an erroneous construction of the law the supply fund of the navy was increased from to something over and a system of accounting was introduced which prevented the striking of a proper balance and a knowledge of the exact cost of maintaining the naval establishment the system has now been abandoned and a naval supply account established by law july 1 1910 the naval supply fund of is now on deposit in the treasury to the credit of the department the secretary recommends that the naval supply account be made permanent by law and that the of the naval supply fund be covered into the treasury as unnecessary and i ask for legislative authority to do this this sum when covered into the treasury will be really a reduction in the recorded naval cost for this year the estimates of the navy department are less than the appropriations for the same purpose last year and included in this is the building program of the same amount as that submitted for your consideration last year it is merely carrying out the plan of building two battleships a year with a few needed auxiliary vessels i earnestly hope that this program will be adopted the secretary of the navy has given personal examination to every and has studied the uses of the with reference to the necessities of our fleet with a fleet considerably less than half the size of that of the british navy we have shipyards more than double the number and there are several of these shipyards expensively equipped with modern machinery which after investigation the secretary of the navy believes to be entirely useless for naval purposes he asks authority to abandon certain of them and to move their machinery to other places where it can be made of use in making these recommendations the secretary is following directly along progressive lines which have been adopted in our great commercial and manufacturing consolidations in this country that is of dismantling unnecessary and inadequate plants and discontinuing their existence where it has been demonstrated that it is unprofitable to continue their maintenance at an expense not commensurate to their product the secretary points out that the most important naval base in the west indies is guantanamo in the southeastern part of cuba its geographical situation is admirably adapted to protect the commercial paths to the panama canal and he shows that by the expenditure of less than half a million dollars with the machinery which he shall take from other he can create a naval station at guantanamo of sufficient size and equipment to serve the purpose of an emergency naval base i earnestly join in the recommendation that he be given the authority which he asks i am quite aware that such action is likely to arouse local opposition but i conceive it to be axiomatic that in legislating in the interest of the navy and for the general protection of the country by the navy mere local pride or pecuniary interest in the establishment of a or station ought to play no part the recommendation of the secretary is based upon the judgment of impartial naval officers entirely uninfluenced by any geographical or sectional considerations i unite with the secretary in the recommendation that an appropriation be made to construct a suitable crypt at annapolis for the custody of the remains of john paul jones the complete success of our country in arctic exploration should not remain unnoticed for centuries there has been friendly rivalry in this field of effort between the foremost nations and between the bravest and most accomplished men expeditions to the unknown north have been encouraged by enlightened governments and deserved honors have been granted to the daring men who have conducted them the unparalleled accomplishment of an american in reaching the north pole april 6 1909 approved by critical examination of the most expert scientists has added to the distinction of our navy to which he belongs and reflects credit upon his country his unique success has received generous acknowledgment from scientific bodies and institutions of learning in europe and america i recommend fitting recognition by congress of the great achievement of robert edwin peary the secretary of the interior recommends a change of the law in respect to the procedure in adjudicating claims for lands by which appeals can be taken from the decisions of the department to the court of appeals of the district of columbia for a judicial consideration of the rights of the claimant this change finds complete analogy in the present provision for appeals from the decisions of the commissioner of patents the judgments of the court in such cases would be of decisive value to land claimants generally and to the department of the interior in the administration of the law would enable claimants to bring into court the final consideration of issues as to the title to government land and would i think obviate a good deal of the subsequent litigation that now arises in our western courts the bill is pending i believe in the house having been favorably reported from the committee on public lands and i recommend its enactment one of the difficulties in the interior department and in the land office has been the delays attendant upon the consideration by the land office and the secretary of the interior of claims for patents of public lands to individuals i am glad to say that under the recent appropriations of the congress and the earnest efforts of the secretary and his subordinates these arrears have been disposed of and the work of the department has been brought more nearly up to date in respect to the pending business than ever before in its history economies have been effected where possible without legislative assistance and these are shown in the reduced estimates for the expenses of the department during the current fiscal year and during the year to come the subject of the conservation of the public domain has commanded the attention of the people within the last two or three years there is no need for radical reform in the methods of disposing of what are really agricultural lands the present laws have worked well the enlarged homestead law has encouraged the successful farming of lands in the semiarid regions the total sum already accumulated in the fund provided by the act for the reclamation of arid lands is about and of this all but has been allotted to the various projects of which there are thirty congress at its last session provided for the issuing of certificates of indebtedness not exceeding twenty millions of dollars to be redeemed from the reclamation fund when the proceeds of lands sold and from the should be sufficient meantime in accordance with the provisions of the law i appointed a board of army engineers to examine the projects and to ascertain which are feasible and worthy of completion that board has made a report upon the subject which i shall transmit in a separate message within a few days in september last conservation congress was held at paul at which i delivered an address on the subject of conservation so far as it was within the jurisdiction and possible action of the federal government in that address i assembled from the official records the statistics and facts as to what had been done in this behalf in the administration of my predecessor and in my own and indicated the legislative measures which i believed to be wise in order to secure the best use in the public interest of what remains of our national domain there was in this address a very full discussion of the reasons which led me to the conclusions stated for the purpose of saving in an official record a comprehensive resume of the statistics and facts gathered with some difficulty in that address and to avoid their repetition in the body of this message i venture to make the address an accompanying appendix the statistics are corrected to november 15th last for the reasons stated in the conservation address i recommend first that the limitation now imposed upon the executive which forbids his reserving more forest lands in oregon washington idaho montana colorado and wyoming be repealed second that the coal deposits of the government be leased after advertisement inviting competitive bids for terms not exceeding fifty years with a minimum rental and royalties upon the coal mined to be readjusted every ten or twelve years and with conditions as to maintenance which will secure proper mining and as to assignment which will prevent combinations to monopolize control of the coal in any one district or market i do not think that coal measures under acres of surface would be too large an amount to lease to any one lessee the secretary of the interior thinks there are difficulties in the way of leasing public coal lands which objections he has set forth in his report the force of which i freely concede i entirely approved his stating at length in his report the objections in order that the whole subject may be presented to congress but after a full consideration i favor a leasing system and recommend it third that the law should provide the same separation in respect to government phosphate lands of surface and mineral rights that now obtains in coal lands and that power to lease such lands upon terms and limitations similar to those above recommended for coal leases with an added condition enabling the government to regulate and if need be to prohibit the export to foreign countries of the product fourth that the law should allow a prospector for oil or gas to have the right to prospect for two years over a certain tract of government land the right to be evidenced by a license for which he shall pay a small sum and that upon discovery a lease may be granted upon terms securing a minimum rental and proper royalties to the government and also the conduct of the oil or gas well in accord with the best method for husbanding the supply of oil in the district the period of the leases should not be as long as those of coal but they should contain similar provisions as to assignment to prevent monopolistic combinations fifth that sites be directly leased by the federal government after advertisement and bidding for not exceeding fifty years upon a proper rental and with a condition fixing rates charged to the public for units of electric power both rental and rates to be readjusted equitably every ten years by arbitration or otherwise with suitable provisions against assignment to prevent monopolistic combinations or that the law shall provide that upon application made by the authorities of the state where the site is situated it may be patented to the state on condition that the state shall dispose of it under terms like those just described and shall enforce those terms or upon failure to comply with the condition the site and all the plant and improvement on the site shall be forfeited and revert to the united states the president being given the power to declare the forfeiture and to direct legal proceedings for its enforcement either of these methods would i think accomplish the proper public purpose in respect to sites but one or the other should be promptly adopted i earnestly urge upon congress that at this session general conservation legislation of the character indicated be adopted at its last session this congress took most useful and proper steps in the because of conservation by allowing the executive through withdrawals to suspend the action of the existing laws in respect to much of the public domain i have not thought that the danger of disposing of coal lands in the united states under the present laws in large quantities was so great as to call for their withdrawal because under the present provisions it is reasonably certain that the government will receive the real value of the land but in respect to oil lands or phosphate lands and of gas lands in the united states and in respect to coal lands in alaska i have exercised the full power of withdrawal with the hope that the action of congress would follow promptly and prevent that tying up of the resources of the country in the western and less settled portion and in alaska which means stagnation and retrogression the question of conservation is not a partisan one and i sincerely hope that even in the short time of the present session consideration may be given to those questions which have now been much discussed and that action may be taken upon them with reference to the government of alaska i have nothing to add to the recommendations i made in my last message on the subject i am convinced that the migratory character of the population its unequal distribution and its smallness of number which the new census shows to be about in relation to the enormous expanse of the territory make it altogether impracticable to give to those people who are in alaska and may not be there a year hence the power to elect a legislature to govern an immense territory to which they have a relation so little permanent it is far better for the development of the territory that it be committed to a commission to be appointed by the executive with limited legislative powers sufficiently broad to meet the local needs than to continue the present insufficient government with few remedial powers or to make a popular government where there is not proper foundation upon which to rest it the suggestion that the appointment of a commission will lead to the control of the government by corporate or selfish and exploiting interests has not the slightest foundation in fact such a government worked well in the philippines and would work well in alaska and those who are really interested in the proper development of that territory for the benefit of the people who live in it and the benefit of the people of the united states who own it should support the institution of such a government i have been asked to recommend that the credit of the government be extended to aid the construction of railroads in alaska i am not ready now to do so a great many millions of dollars have already been expended in the construction of at least two railroads and if laws be passed providing for the proper development of the resources of alaska especially for the opening up of the coal lands i believe that the capital already invested will induce the investment of more capital sufficient to complete the railroads building and to furnish cheap coal not only to alaska but to the whole pacific coast the passage of a law permitting the leasing of government coal lands in alaska after public competition and the appointment of a commission for the government of the territory with enabling powers to meet the local needs will lead to an improvement in alaska and the development of her resources that is likely to surprise the country our national parks have become so extensive and involve so much detail of action in their control that it seems to me there ought to be legislation creating a bureau for their care and control the greatest natural wonder of this country and the surrounding territory should be included in another national park i refer to the grand canyon of the colorado the uniform policy of the government in the matter of granting pensions to those gallant and devoted men who fought to save the life of the nation in the perilous days of the great civil war has always been of the most liberal character those men are now rapidly passing away the best obtainable official statistics show that they are dying at the rate of something over three thousand a month and in view of their advancing years this rate must inevitably in proportion rapidly increase to the man who risked everything on the field of battle to save the nation in the hour of its direst need we owe a debt which has not been and should not be computed in a begrudging or parsimonious spirit but while we should be actuated by this spirit to the soldier himself care should be exercised not to go to absurd lengths or distribute the bounty of the government to classes of persons who may at this late day from a mere mercenary motive seek to obtain some legal relation with an old veteran now tottering on the brink of the grave the true spirit of the pension laws is to be found in the noble sentiments expressed by lincoln in his last inaugural address wherein in speaking of the nation duty to its soldiers when the struggle should be over he said we should care for him who shall have borne the battle and for his widow and orphans the report of the secretary of agriculture invites attention to the stupendous value of the agricultural products of this country amounting in all to for this year this amount is larger than that of 1909 by the existence of such a crop indicates a good prospect for business throughout the country a notable change for the better is commented upon by the secretary in the fact that the south especially in those regions where the boll weevil has interfered with the growth of cotton has given more attention to the cultivation of corn and other cereals so that there is a greater diversification of crops in the south than ever before and all to the great advantage of that section the report contains a most interesting account of the activities of the department in its various bureaus showing how closely the agricultural progress in this country is following along the lines of improvement recommended by the department through its publications and the results of its experiment stations in every state and by the instructions given through the agricultural schools aided by the federal government and following the general curriculum urged by the head and bureau chiefs of the department the activities of the department have been greatly increased by the enactment of recent legislation by the act the act the act and the act concerning the interstate shipment of game this department is one of those the scope of whose action is constantly widening and therefore it is impossible under existing legislation to reduce the cost and their estimates below those of preceding years an interesting review of the results of an examination made by the department into statistics and prices shows that on the average since 1891 farm products have increased in value 72 per cent while the things which the farmer buys for use have increased but 12 per cent an indication that present conditions are favorable to the farming community i have already referred to the forests of the united states and their extent and have urged as i do again the removal of the limitation upon the power of the executive to reserve other tracts of land in six western states in which withdrawal for this purpose is now forbidden the secretary of agriculture gives a very full description of the disastrous fires that occurred during the last summer in the national forests a drought more intense than any recorded in the history of the west had introduced a condition into the forests which made fires almost inevitable and locomotive sparks negligent campers and in some cases incendiaries furnished the needed immediate because at one time the fires were so extended that they covered a range of a hundred miles and the secretary estimates that standing timber of the value of 25 millions of dollars was destroyed persons in the employ of the forest service were killed and many more injured and i regret to say that there is no provision in the law by which the expenses for their hospital treatment or of their interment could be met out of public funds the red cross contributed a thousand dollars and the remainder of the necessary expenses was made up by private contribution chiefly from the force of the forest service and its officials i recommend that suitable legislation be adopted to enable the secretary of agriculture to meet the moral obligations of the government in this respect the specific fund for fighting fires was only about but there existed discretion in the secretary in case of an emergency to apply other funds in his control to this purpose and he did so to the extent of nearly a million of dollars which will involve the presentation of a deficiency estimate for the current fiscal year of over the damage done was not therefore due to the lack of an appropriation by congress available to meet the emergency but the difficulty of fighting it lay in the remote points where the fires began and where it was impossible with the roads and trails as they now exist promptly to reach them proper protection necessitates as the secretary points out the expenditure of a good deal more money in the development of roads and trails in the forests the establishment of lookout stations and telephone connection between them and places where assistance can be secured the amount of reforestation shown in the report of the forest service only about acres as compared with the 150 millions of acres of national forests seems small and i am glad to note that in this regard the secretary of agriculture and the chief of the forest service are looking forward to far greater activity in the use of available government land for this purpose progress has been made in learning by experiment the best methods of reforesting congress is appealed to now by the secretary of agriculture to make the appropriations needed for enlarging the usefulness of the forest service in this regard i hope that congress will approve and adopt the estimate of the secretary for this purpose the secretary of the department of commerce and labor has had under his immediate supervision the application of the merit system of promotion to a large number of employees and his discussion of this method of promotions based on actual experience i commend to the attention of congress the taking of the census has proceeded with promptness and efficiency the secretary believes and i concur that it will be more thorough and accurate than any census which has heretofore been taken but it is not perfect the motive that prompts men with a false civic pride to induce the padding of census returns in order to increase the population of a particular city has been strong enough to lead to fraud in respect to a few cities in this country and i have directed the to proceed with all the vigor possible against those who are responsible for these frauds they have been discovered and they will not interfere with the accuracy of the census but it is of the highest importance that official inquiry of this sort should not be embarrassed by fraudulent conspiracies in some private or local interest the reorganization of the board has effected a very considerable saving in the administration and the estimates for that service for the present year are less than for the preceding year in addition three tenders for which appropriations were made are not being built because they are not at present needed for the service the secretary is now asking for a large sum for the addition of lights and other aids to the commerce of the seas including a number in alaska the trade along that coast is becoming so important that i respectfully urge the necessity for following his recommendation the commissioner of corporations has just completed the first part of a report on the lumber industry in the united states this part does not find the existence of a trust or combination in the manufacture of lumber the commissioner does find however a condition in the ownership of the standing timber of the united states other than the government timber that calls for serious attention the direct investigation made by the commissioner covered an area which contains 80 per cent of the privately owned timber of the country his report shows that of the timber in this area is owned by 200 individuals and corporations that 14 per cent is owned by 3 corporations and that there is very extensive interownership of stock as well as other circumstances all pointing to friendly relations among those who own a majority of this timber a relationship which might lead to a combination for the maintenance of a price that would be very detrimental to the public interest and would create the necessity of removing all tariff obstacles to the free importations of lumber from other countries i am glad to note in the secretary report the satisfactory progress which is being made in respect to the preservation of the seals of the pribiloff islands very active steps are being taken by the department of state to secure an arrangement which shall protect the pribiloff herd from the losses due to pelagic sealing meantime the government has secured seal pelts of the bachelor seals the killing of which does not interfere with the maintenance of the herd from the sale of which next month it is expected to realize about a sum largely in excess of the rental paid by the lessee of the government under the previous contract the coast and geodetic survey has been engaged in surveying the coasts of the philippine archipelago this is a heavy work because of the extended character of the coast line in those islands but i am glad to note that about half of the needed survey has been completed so large a part of the coast line of the archipelago has been unsurveyed as to make navigation in the neighborhood of a number of the islands and especially on the east side particularly dangerous the commissioner of labor has been actively engaged in composing the differences between employers and employees engaged in interstate transportation under the erdman act jointly with the chairman of the interstate commerce commission i can not speak in too high terms of the success of these two officers in conciliation and settlement of controversies which but for their interposition would have resulted disastrously to all interests i invite attention to the very serious injury caused to all those who are engaged in the manufacture of phosphorous matches the diseases incident to this are frightful and as matches can be made from other materials entirely innocuous i believe that the injurious manufacture could be discouraged and ought to be discouraged by the imposition of a heavy federal tax i recommend the adoption of this method of stamping out a very serious abuse since 1868 it has been the declared purpose of this government to favor the movement for an day by a provision of law that none of the employees employed by or on behalf of the government should work longer than eight hours in every the first declaration of this view was not accompanied with any penal clause or with any provision for its enforcement and though president grant by a proclamation twice attempted to give it his sanction and to require the officers of the government to carry it out the purpose of the framers of the law was ultimately defeated by a decision of the supreme court holding that the statute as drawn was merely a direction of the government to its agents and did not invalidate a contract made in behalf of the government which provided in the contract for labor for a day of longer hours than eight thereafter in 1892 the present law was passed which provides that the services and employment of all laborers and mechanics who are now or may hereafter be employed by the government of the united states by the district of columbia or by any contractor or subcontractor on any of the public works of the united states and of the said district of columbia is hereby restricted to eight hours in any one calendar day this law has been construed to limit the application of the requirement to those who are directly employed by the government or to those who are employed upon public works situate upon land owned by the united states this construction prevented its application to government battle ships and other vessels built in private shipyards and to heavy guns and armor plate contracted for and made at private establishments the proposed act provides that no laborer or mechanic doing any part of the work contemplated by a contract with the united states in the employ of the contractor or any subcontractor shall be required or permitted to work more than eight hours a day in any one calendar day it seems to me from the past history that the government has been committed to a policy of encouraging the limitation of the day work to eight hours in all works of construction initiated by itself and it seems to me illogical to maintain a difference between government work done on government soil and government work done in a private establishment when the work is of such large dimensions and involves the expenditure of much labor for a considerable period so that the private manufacturer may adjust himself and his establishment to the special terms of employment that he must make with his workmen for this particular job to require however that every small contract of manufacture entered into by the government should be carried out by the contractor with men working at eight hours would be to impose an intolerable burden upon the government by limiting its sources of supply and excluding altogether the great majority of those who would otherwise compete for its business the proposed act recognizes this in the exceptions which it makes to contracts for transportation by land or water for the transmission of intelligence and for such materials or articles as may usually be bought in the open market whether made to conform to particular specifications or not or for the purchase of supplies by the government whether manufactured to conform to particular specifications or not i recommend that instead of enacting the proposed bill the meaning of which is not clear and definite and might be given a construction embarrassing to the public interest the present act be enlarged by providing that public works shall be construed to include not only buildings and work upon public ground but also ships armor and large guns when manufactured in private yards or factories one of the great difficulties in enforcing this law is that its application under certain emergencies becomes exceedingly oppressive and there is a great temptation to subordinate officials to evade it i think that it would be wiser to allow the president by executive order to declare an emergency in special instances in which the limitation might not apply and in such cases to permit the payment by the government of extra compensation for the time worked each day in excess of eight hours i may add that my suggestions in respect to this legislation have the full concurrence of the commissioner of labor in view of the keen widespread interest now felt in the united states in a system of compensation for industrial accidents to supplant our present thoroughly unsatisfactory system of employers liability a subject the importance of which congress has already recognized by the appointment of a commission i recommend that the international congress on industrial insurance be invited to hold its meeting in 1913 in washington and that an appropriation of be made to cover the necessary expenses of organizing and carrying on the meeting the immigration into this country is increasing each year a large part of it comes through the immigrant station at ellis island in the city of new york an examination of the station and the methods pursued satisfies me that a difficult task is there performed by the commissioner and his force with common sense the strictest fairness and with the most earnest desire to enforce the law equitably and mercifully it has been proposed to enlarge the accommodations so as to allow more of the immigrants to come by that port i do not think it wise policy to do this i have no objection to on the contrary i recommend the construction of additional buildings for the purpose of facilitating a closer and more careful examination of each immigrant as he comes in but i deprecate the enlargement of the buildings and of the force for the purpose of permitting the examination of more immigrants per day than are now examined if it is understood that no more immigrants can be taken in at new york than are now taken in and the steamship companies thus are given a reason and a motive for transferring immigrants to other ports we can be confident that they will be better distributed through the country and that there will not be that congestion in the city of new york which does not make for the better condition of the immigrant or increase his usefulness as a new member of this community everything which tends to send the immigrants west and south into rural life helps the country i concur with the secretary in his recommendations as to the amendments to the immigration law in increasing the fine against the companies for violation of the regulations and in giving greater power to the commissioner to enforce more care on the part of the steamship companies in accepting immigrants the recommendation of the secretary in which he urges that the law may be amended so as to discourage the separation of families is i think a good one in my message of last year i recommended the creation of a bureau of health in which should be embraced all those government agencies outside of the war and navy departments which are now directed toward the preservation of public health or exercise functions germane to that subject i renew this recommendation i greatly regret that the agitation in favor of this bureau has aroused a counteragitation against its creation on the ground that the establishment of such a bureau is to be in the interest of a particular school of medicine it seems to me that this assumption is wholly unwarranted and that those responsible for the government can be trusted to secure in the personnel of the bureau the appointment of representatives of all recognized schools of medicine and in the management of the bureau entire freedom from narrow prejudice in this regard by an act passed by congress the president was authorized to expend a million dollars to construct the needed work to prevent injury to the lands of the imperial valley from the overflow of the colorado river i appointed a competent engineer to examine the locality and to report a plan for construction he has done so in order to complete the work it is necessary to secure the consent of mexico for part of the work must be constructed in mexican territory negotiations looking to the securing of such authority are quite near success the southern pacific railroad company proposes to assist us in the work by lending equipment and by the transportation of material at cost price and it is hoped that the work may be completed before any danger shall arise from the spring floods in the river the work is being done under the supervision of the secretary of the interior and his consulting engineer general marshall late chief of engineers now retired this leads me to invite the attention of congress to the claim made by the southern pacific railroad company for an amount expended in a similar work of relief called for by a flood and great emergency this work as i am informed was undertaken at the request of my predecessor and under promise to reimburse the railroad company it seems to me the equity of this claim is manifest and the only question involved is the reasonable value of the work done i recommend the payment of the claim in a sum found to be just the government of the district of columbia is a good government the police force while perhaps it might be given or acquire more military discipline in bearing and appearance is nevertheless an efficient body of men free from graft and discharges its important duties in this capital of the nation effectively the parks and the streets of the city and the district are generally kept clean and in excellent condition the commissioners of the district have its affairs well in hand and while not extravagant are constantly looking to those municipal improvements that are expensive but that must be made in a modern growing city like washington while all this is true nevertheless the fact that washington is governed by congress and that the citizens are not responsible and have no direct control through popular election in district matters properly subjects the government to inquiry and criticism by its citizens manifested through the public press and otherwise such criticism should command the careful attention of congress washington is the capital of the nation and its maintenance as a great and beautiful city under national control every lover of his country has much at heart and it should present in every way a model in respect of economy of expenditure of sanitation of tenement reform of thorough public instruction of the proper regulation of public utilities of sensible and extended charities of the proper care of criminals and of youth needing reform of healthful playgrounds and opportunity for popular recreation and of a beautiful system of parks i am glad to think that progress is being made in all these directions but i venture to point out certain specific improvements toward these ends which congress in its wisdom might adopt speaking generally i think there ought to be more concentration of authority in respect to the accomplishment of some of these purposes with more economy of expenditure attention is invited to the peculiar situation existing in regard to the parks of washington the park system proper comprising some 343 different areas is under the office of public buildings and grounds which however has nothing to do with the control of rock creek park the zoological park the grounds of the department of agriculture the botanic garden the grounds of the capitol and other public grounds which are regularly open to the public and ought to be part of the park system exclusive of the grounds of the soldiers home and of washington barracks the public grounds used as parks in the district of columbia comprise over acres under ten different controlling officials or bodies this division of jurisdiction is most unfortunate large sums of money are spent yearly in beautifying and keeping in good condition these parks and the grounds connected with government buildings and institutions the work done on all of them is of the same general character work for which the office of public buildings and grounds has been provided by congress with a special organization and equipment which are lacking for the grounds not under that office there can be no doubt that if all work of care and improvement upon the grounds belonging to the united states in the district of columbia were put as far as possible under one responsible head the result would be not only greater efficiency and economy in the work itself but greater harmony in the development of the public parks and gardens of the city congress at its last session provided for two more parks called the meridian hill and montrose parks and the district commissioners have also included in their estimates a sum to be used for the acquisition of much needed park land adjoining the zoological park known as the klingle ford tract the expense of these three parks included in the estimates of the commissioners aggregates i think it would lead to economy if the improvement and care of all these parks and other public grounds above described should be transferred to the office of public buildings and grounds which has an equipment well and economically adapted to carrying out the public purpose in respect to improvements of this kind to prevent encroachments upon the park area it is recommended that the erection of any permanent structure on any lands in the district of columbia belonging to the united states be prohibited except by specific authority of congress i have already in previous communications to congress referred to the importance of acquiring for the district of columbia at least a part of the territory on the other side of the potomac in virginia which was originally granted for the district by the state of virginia and then was retroceded by act of congress in 1846 it is very evident from conferences that i have had with the senators and representatives from virginia that there is no hope of a regranting by the state of the land thus given back and i am frank to say that in so far as the tract includes the town of alexandria and land remote from the potomac river there would be no particular advantage in bringing that within national control but the land which lies along the potomac river above the railroad bridge and across the potomac including arlington cemetery fort myer the government experiment farm the village of rosslyn and the palisades of the potomac reaching to where the old district line intersects the river is very sparsely settled and could be admirably utilized for increasing the system of the parks of washington it has been suggested to me by the same virginia senators and representatives that if the government were to acquire for a government park the land above described which is not of very great value the present law of virginia would itself work the creation of federal jurisdiction over it and if that were not complete enough the legislature of virginia would in all probability so enlarge the jurisdiction as to enable congress to include it within the control of the government of the district of columbia and actually make it a part of washington i earnestly recommend that steps be taken to carry out this plan there are a sufficient number of corporations enjoying the use of public utilities in the district of columbia to justify and require the enactment of a law providing for their supervision and regulation in the public interest consistent with the vested rights secured to them by their charters a part of these corporations to wit the street railways have been put under the control of the interstate commerce commission but that commission recommends that the power be taken from it and intimates broadly that its other and more important duties make it impossible for it to give the requisite supervision it seems to me wise to place this general power of supervision and regulation in the district commissioners it is said that their present duties are now absorbing and would prevent the proper discharge by them of these new functions but their present jurisdiction brings them so closely and frequently in contact with these corporations and makes them to know in such detail how the corporations are discharging their duties under the law and how they are serving the public interest that the commissioners are peculiarly fitted to do this work and i hope that congress will impose it upon them by intrusting them with powers in respect to such corporations similar to those of the public utilities commission of new york city or similar boards in massachusetts i do not think the present control of the school system of washington commends itself as the most efficient and economical and thorough instrument for the carrying on of public instruction the cost of education in the district of columbia is excessive as compared with the cost in other cities of similar size and it is not apparent that the results are in general more satisfactory the average cost per pupil per day in washington is about 38 cents while the average cost in 13 other american cities fairly comparable with washington in population and standard of education is about cents for each dollar spent in salaries of school teachers and officers in the district about days of instruction per pupil are given while in the 13 cities above referred to each dollar expended for salaries affords on the average days of instruction for the current fiscal year the estimates of the board of education amounted to about of the entire revenue locally collected for district purposes if i may say so there seems to be a lack of definite plan in the expansion of the school system and the erection of new buildings and of proper economy in the use of these buildings that indicates the necessity for the concentration of control all plans for improvement and expansion in the school system are with the school board while the limitation of expenses is with the district commissioners i think it would be much better to put complete control and responsibility in the district commissioners and then provide a board of school visitors to be appointed by the supreme court of the district or by the president from the different school districts of washington who representing local needs shall meet and make recommendations to the commissioners and to the superintendent of education an educator of ability and experience who should be an appointee of and responsible to the district commissioners among other items for permanent improvements appearing in the district estimates for 1912 is one designed to substitute for willow tree alley notorious in the records of the police and health departments a playground with a building containing baths a gymnasium and other helpful features and i hope congress will approve this estimate fair as washington seems with her beautiful streets and shade trees and free as the expanse of territory which she occupies would seem to make her from slums and insanitary congestion of population there are centers in the interior of squares where the very poor and the criminal classes as well huddle together in filth and noisome surroundings and it is of primary importance that these nuclei of disease and suffering and vice should be removed and that there should be substituted for them small parks as breathing spaces and model tenements having sufficient air space and meeting other hygienic requirements the estimate for the reform of willow tree alley the worst of these places in the city is the beginning of a movement that ought to attract the earnest attention and support of congress for congress can not escape its responsibility for the existence of these human pest holes the estimates for the district of columbia for the fiscal year 1912 provide for the repayment to the united states of of the floating debt that will remain on june 30 1911 the bonded debt will be reduced in 1912 by about the same amount the district of columbia is now in an excellent financial condition its own share of indebtedness will it is estimated be less than on june 30 1912 as compared with about on june 30 1909 the bonded debt owed half and half by the united states and the district will be extinguished by 1924 and the floating debt of the district probably long before that time the revenues have doubled in the last ten years while the population during the same period has increased but per cent it is believed that if due economy be practiced the district can soon emerge from debt even while financing its permanent improvements with reasonable rapidity from current revenues to this end i recommend the enactment into law of a bill now before congress and known as the judson bill which will insure the gradual extinguishment of the district debt while at the same time requiring that the many permanent improvements needed to complete a fitting capital city shall be carried on from year to year and at a proper rate of progress with funds derived from the rapidly increasing revenues i renew my recommendation that the claims of the depositors in the freedmen bank be recognized and paid by the passage of the pending bill on that subject i also renew my recommendation that steps be taken looking to the holding of a negro exposition in celebration of the fiftieth anniversary of the issuing by lincoln of the emancipation proclamation the civil service commission has continued its useful duties during the year the necessity for the maintenance of the provisions of the civil service law was never greater than officers responsible for the policy of the administration and their immediate personal assistants or deputies should not be included within the classified service but in my judgment public opinion has advanced to the point where it would support a bill providing a secure tenure during efficiency for all purely administrative officials i entertain the profound conviction that it would greatly aid the because of efficient and economical government and of better politics if congress could enact a bill providing that the executive shall have the power to include in the classified service all local offices under the treasury department the department of justice the department the interior department and the department of commerce and labor appointments to which now require the confirmation of the senate and that upon such classification the advice and consent of the senate shall cease to be required in such appointments by their certainty of tenure dependent on good service and by their freedom from the necessity for political activity these local officers would be induced to become more efficient public servants the civil service law is an attempt to solve the problem of the proper selection of those who enter the service a better system under that law for promotions ought to be devised but given the selected employee there remains still the question of promoting his efficiency and his usefulness to the government and that can be brought about only by a careful comparison of unit work done by the individual and a pointing out of the necessity for improvement in this regard where improvement is possible the increase in the activities and in the annual expenditures of the federal government has been so rapid and so great that the time has come to check the expansion of government activities in new directions until we have tested the economy and efficiency with which the government of is being carried on the responsibility rests upon the head of the administration he is held accountable by the public and properly so despite the unselfish and patriotic efforts of the heads of departments and others charged with responsibility of government there has grown up in this country a conviction that the expenses of government are too great the fundamental reason for the existence undetected of waste duplication and bad management is the lack of prompt accurate information the president of a private corporation doing so vast a business as the government transacts would through competent specialists maintain the closest scrutiny on the comparative efficiency and the comparative costs in each division or department of the business he would know precisely what the duties and the activities of each bureau or division are in order to prevent overlapping no adequate machinery at present exists for supplying the president of the united states with such information respecting the business for which he is responsible for the first time in the history of the government congress in the last session supplied this need and made an appropriation to enable the president to inquire into the economy and efficiency of the executive departments and i am now assembling an organization for that purpose at the outset i find comparison between departments and bureaus impossible for the reason that in no two departments are the estimates and expenditures displayed and classified alike the first step is to reduce all to a common standard for classification and judgment and this work is now being done when it is completed the foundation will be laid for a businesslike national budget and for such a just comparison of the economy and efficiency with which the several bureaus and divisions are conducted as will enable the president and the heads of departments to detect waste eliminate duplication encourage the intelligent and effective civil servants whose efforts too often go unnoticed and secure the public service at the lowest possible cost the committees on appropriations of congress have diligently worked to reduce the expenses of government and have found their efforts often blocked by lack of accurate information containing a proper analysis of requirements and of actual and reasonable costs the result of this inquiry should enable the executive in his communications to congress to give information to which congress is entitled and which will enable it to promote economy my experience leads me to believe that while government methods are much criticised the bad results if we do have bad results are not due to a lack of zeal or willingness on the part of the civil servants on the contrary i believe that a fine spirit of willingness to work exists in the personnel which if properly encouraged will produce results equal to those secured in the best managed private enterprises in handling government expenditure the aim is not profit the aim is the maximum of public service at the minimum of cost we wish to reduce the expenditures of the government and we wish to save money to enable the government to go into some of the beneficial projects which we are debarred from taking up now because we ought not to increase our expenditures i have requested the head of each department to appoint committees on economy and efficiency in order to secure full cooperation in the movement by the employees of the government themselves at a later date i shall send to congress a special message on this general subject i urge the continuance of the appropriation of requested for the fiscal year 1912 it is impossible to proceed far in such an investigation without perceiving the need of a suitable means of eliminating from the service the superannuated this can be done in one of two ways either by straight civil pension or by some form of contributory plan careful study of experiments made by foreign governments shows that three serious objections to the civil pension payable out of the public treasury may be brought against it by the taxpayer the administrative officer and the civil employee respectively a civil pension is bound to become an enormous continuous and increasing tax on the public exchequer it is demoralizing to the service since it makes difficult the dismissal of incompetent employees after they have partly earned their pension and it is disadvantageous to the main body of employees themselves since it is always taken into account in fixing salaries and only the few who survive and remain in the service until pensionable age receive the value of their deferred pay for this reason after a half century of experience under a most liberal pension system the civil servants of england succeeded about a year ago in having the system so modified as to make it virtually a contributory plan with provision for refund of their theoretical contributions the experience of england and other countries shows that neither can a contributory plan be successful human nature being what it is which does not make provision for the return of contributions with interest in case of death or resignation before pensionable age followed to its logical conclusion this means that the simplest and most independent solution of the problem for both employee and the government is a compulsory savings arrangement the employee to set aside from his salary a sum sufficient with the help of a liberal rate of interest from the government to purchase an adequate annuity for him on retirement this accumulation to be inalienably his and claimable if he leaves the service before reaching the retirement age or by his heirs in case of his death this is the principle upon which the gillett bill now pending is drawn the gillett bill however goes further and provides that the government shall contribute to the pension fund of those employees who are now so advanced in age that their personal contributions will not be sufficient to create their annuities before reaching the retirement age in my judgment this provision should be amended so that the annuities of those employees shall be paid out of the salaries appropriated for the positions vacated by retirement and that the difference between the annuities thus granted and the salaries may be used for the employment of efficient clerks at the lower grades if the bill can be thus amended i recommend its passage as it will initiate a valuable system and ultimately result in a great saving in the public expenditures there has not been time to test the benefit and utility of the amendments to the interstate commerce law contained in the act approved june 18 1910 the law as enacted did not contain all the features which i recommended it did not specifically denounce as unlawful the purchase by one of two parallel and competing roads of the stock of the other nor did it subject to the restraining influence of the interstate commerce commission the power of corporations engaged in operating interstate railroads to issue new stock and bonds nor did it authorize the making of temporary agreements between railroads limited to thirty days fixing the same rates for traffic between the same places i do not press the consideration of any of these objects upon congress at this session the object of the first provision is probably generally covered by the antitrust law the second provision was in the act referred to the consideration of a commission to be appointed by the executive and to report upon the matter to congress that commission has been appointed and is engaged in the investigation and consideration of the question submitted under the law it consists of president arthur hadley of yale university as chairman frederick strauss frederick judson walter fisher and meyer with william griswold as secretary the third proposal led to so much misconstruction of its object as being that of weakening the effectiveness of the antitrust law that i am not disposed to press it for further consideration it was intended to permit railroad companies to avoid useless rate cutting by a mere temporary acquiescence in the same rates for the same service over competing railroads with no obligation whatever to maintain those rates for any time the protection of railroad employees from personal injury is a subject of the highest importance and demands continuing attention there have been two measures pending in congress one for the supervision of boilers and the other for the enlargement of dangerous clearances certainly some measures ought to be adopted looking to a prevention of accidents from these causes it seems to me that with respect to boilers a bill might well be drawn requiring and enforcing by penalty a proper system of inspection by the railway companies themselves which would accomplish our purpose the entire removal of outside clearances would be attended by such enormous expense that some other remedy must be adopted by act of may 6 1910 the interstate commerce commission is authorized and directed to investigate accidents to report their causes and its recommendations i suggest that the commission be requested to make a special report as to injuries from outside clearances and the best method of reducing them the interstate commerce commission has recommended appropriations for the purpose of enabling it to enter upon a valuation of all railroads this has always been within the jurisdiction of the commission but the requisite funds have been wanting statistics of the value of each railroad would be valuable for many purposes especially if we ultimately enact any limitations upon the power of the interstate railroads to issue stocks and bonds as i hope we may i think therefore that in order to permit a correct understanding of the facts it would be wise to make a reasonable appropriation to enable the interstate commerce commission to proceed with due dispatch to the valuation of all railroads i have no doubt that railroad companies themselves can and will greatly facilitate this valuation and make it much less costly in time and money than has been supposed forged and fraudulent hills of lading purporting to be issued against cotton some months since resulted in losses of several millions of dollars to american and foreign banking and cotton interests foreign bankers then notified american bankers that after october 31 1910 they would not accept bills of exchange drawn against bills of lading for cotton issued by american railroad companies unless american bankers would guarantee the integrity of the bills of lading the american bankers rightly maintained that they were not justified in giving such guarantees and that if they did so the united states would be the only country in the world whose bills were so discredited and whose foreign trade was carried on under such guaranties the foreign bankers extended the time at which these guaranties were demanded until december 31 1910 relying upon us for protection in the meantime as the money which they furnish to move our cotton crop is of great value to this country for the protection of our own people and the preservation of our credit in foreign trade i urge upon congress the immediate enactment of a law under which one who in good faith advances money or credit upon a bill of lading issued by a common carrier upon an interstate or foreign shipment can hold the carrier liable for the value of the goods described in the bill at the valuation specified in the bill at least to the extent of the advances made in reliance upon it such liability exists under the laws of many of the states i see no objection to permitting two classes of bills of lading to be issued i those under which a carrier shall be absolutely liable as above suggested and 2 those with respect to which the carrier shall assume no liability except for the goods actually delivered to the agent issuing the bill the carrier might be permitted to make a small separate specific charge in addition to the rate of transportation for such guaranteed bill as an insurance premium against loss from the added risk thus removing the principal objection which i understand is made by the railroad companies to the imposition of the liability suggested that the ordinary transportation rate would not compensate them for the liability assumed by the absolute guaranty of the accuracy of the bills of lading i further recommend that a punishment of fine and imprisonment be imposed upon railroad agents and shippers for fraud or misrepresentation in connection with the issue of bills of lading issued upon interstate and foreign shipments except as above i do not recommend any amendment to the law as it stands i do not now recommend any amendment to the law in other words it seems to me that the existing legislation with reference to the regulation of corporations and the restraint of their business has reached a point where we can stop for a while and witness the effect of the vigorous execution of the laws on the statute books in restraining the abuses which certainly did exist and which roused the public to demand reform if this test develops a need for further legislation well and good but until then let us execute what we have due to the reform movements of the present decade there has undoubtedly been a great improvement in business methods and standards the great body of business men of this country those who are responsible for its commercial development now have an earnest desire to obey the law and to square their conduct of business to its requirements and limitations these will doubtless be made clearer by the decisions of the supreme court in cases pending before it it is in the interest of all the people of the country that for the time being the activities of government in addition to enforcing earnestly and impartially the existing laws should be directed to economy of administration to the enlargement of opportunities for foreign trade to the conservation and improvement of our agricultural lands and our other natural resources to the building up of home industries and to the strengthening of confidence of capital in domestic investment
past year foreign relations united states continued upon basis friendship good understanding year notable witnessing pacific settlement two important international controversies permanent court hague arbitration fisheries dispute united states great britain source nearly continuous diplomatic correspondence since fisheries convention 1818 given award satisfactory parties arbitration particularly noteworthy eminently results secured also first arbitration held general arbitration treaty april 4 1908 united states great britain disposes controversy settlement resisted every resource diplomacy nearly ninety years friction two countries whose common interest lies maintaining friendly cordial relations united states ably represented tribunal complicated history questions arising made issue depend ordinarily cases upon care skill case presented wanting proper recognition great patriotic service refer lucid historical analysis facts signal ability force argument six days length presented court support case elihu root secretary state root given close study intricate facts bearing controversy diplomatic correspondence helped frame issues solicitation secretary state root though burdened duties senator new york undertook preparation case leading counsel condition imposed view position senator receive compensation tribunal constituted hague governments united states venezuela completed deliberations rendered award case orinoco steamship company venezuela award may regarded satisfactory since pursuant contentions united states recognized number important principles making judicial attitude determining international disputes view grave doubts raised constitutionality hague convention establishment international prize court senate ratification provision convention provides may appeal proposed court decisions national courts government proposed identic circular note addressed powers taken part london maritime conference powers signatory convention confronted difficulty might insert reservation effect appeals international prize court respect decisions national tribunals take form direct claim compensation proceedings thereupon taken form trial de novo judgment court consist compensation illegal capture irrespective decision national court whose judgment thus internationally involved result informal discussion decided provide procedure means separate protocol ratified time prize court convention accordingly government netherlands request government proposed date may 24 1910 powers signatory hague convention negotiation supplemental protocol embodying stipulations providing alternative procedure gratifying observe additional protocol signed without objection powers signatory original convention every reason believe international prize court soon established identic circular note also proposed international prize court established endowed functions arbitral court justice pursuant recommendation adopted last hague conference replies received various powers proposal inspire hope also may accomplished within reasonably near future believed establishment two tribunals go long way toward securing arbitration many questions heretofore threatened times destroyed peace nations appreciating enlightened tendencies modern times congress last session passed law providing appointment commission five members appointed president united states consider expediency utilizing existing international agencies purpose limiting armaments nations world international agreement constituting combined navies world international force preservation universal peace consider report upon means diminish expenditures government military purposes lessen probabilities war yet made appointments commission invited awaiting expressions foreign governments willingness cooperate us appointment similar commissions representatives would meet commissioners joint action seek make work effective several important treaties negotiated great britain past twelve months preliminary diplomatic agreement reached regarding arbitration pecuniary claims government agreement schedules claims annexed soon schedules arranged submitted senate approval agreement united states great britain regard location international boundary line united states canada passamaquoddy bay middle grand manan channel reached treaty concluded may 21 1910 ratified governments proclaimed thus making unnecessary arbitration provided previous treaty april 11 1908 convention concluded january 11 1909 united states great britain providing settlement international differences united states canada including apportionment two countries certain boundary waters appointment commissioners adjust certain questions ratified governments proclaimed work international fisheries commission appointed 1908 treaty april 11 1908 great britain united states resulted formulation recommendation uniform regulations governing fisheries boundary waters canada united states purpose protecting increasing supply food fish waters completion work regulations agreed upon require congressional legislation make effective enforcement fulfillment treaty stipulations october last monarchy portugal overthrown provisional republic proclaimed set de facto government promptly recognized government united states purposes ordinary intercourse pending formal recognition powers governmental entity duly established national sovereignty disturbance among native tribes liberia portion republic early part year resulted sending treaty 1862 american vessel war disaffected district liberian authorities assisted good offices american naval officers able restore order negotiations undertaken amelioration conditions found liberia american commission whose report transmitted congress march 25 last brought conclusion thought within short time practical measures relief may put effect good offices government cordial cooperation governments interested liberia welfare return visit special embassy announcing accession majesty mehemet v emperor ottomans sent constantinople special ambassador addition mission ceremony charged duty expressing ottoman government value attached government united states increased important relations countries desire united states contribute larger economic commercial development due new regime turkey rapid development beginning ancient empire marked progress increased commercial importance bulgaria roumania servia make particularly opportune possibilities american commerce near east receive due attention national skoupchtina expressed principality montenegro raised rank kingdom prince montenegro august 15 last assumed title king montenegro gave pleasure accord new kingdom recognition united states center interest far eastern affairs past year china gratifying note negotiations loan chinese government construction trunk railway lines hankow southward canton westward yangtse valley known hukuang loan concluded representatives various financial groups may last results approved respective governments agreement already initialed chinese government awaiting formal ratification basis settlement terms loan one exact equality america great britain france germany respect financing loan supplying materials proposed railways future branches application principle underlying policy united states regard hukuang loan internationalization foreign interest railways china may financed foreign countries suggested broader scale secretary state proposal internationalization commercial neutralization railways manchuria principle led proposal government generally admitted powers addressed governments russia japan apprehended practical difficulties execution larger plan prevented ready adherence question constructing railway means international loan china however still subject friendly discussion interested parties policy government matters directed desire make use american capital development china instrument promotion china welfare material prosperity without prejudice legitimate rights independent political power policy recently found exemplification assistance given government negotiations china group american bankers loan employed chiefly currency reform confusion ancient times existed monetary usages chinese one principal obstacles commercial intercourse people united states treaty 1903 china obtained pledge latter introduce uniform national coinage following year request china government sent peking member international exchange commission discuss chinese government best methods introducing reform 1908 china sent commissioner united states consult american financiers possibility securing large loan inaugurate new currency system death majesties empress dowager emperor china interrupted negotiations resumed months ago government asked communicate bankers concerned request china loan purpose review preliminary agreement american group china made covering loan success loan contemplated reforms greatest importance commercial interests united states civilized world large realized expert necessary government received assurances china adviser shall american engaged matter interest americans note success attending efforts china establish gradually system representative government provincial assemblies opened october 1909 october present year consultative body nucleus future national parliament held first session peking year marked two important international agreements relating far eastern affairs agreement relating manchuria signed july 4 1910 government gratified note assurance continued peaceful conditions region reaffirmation policies respect china united states together interested powers alike solemnly committed treaty annexing korea empire japan promulgated august 29 1910 marks final step process control ancient empire powerful neighbor progress several years past communicating fact annexation japanese government gave government united states assurances full protection rights american citizens korea changed conditions friendly visits many distinguished persons far east made year chief among imperial highnesses princes china imperial highness prince higashi fushimi prince tokugawa president house peers japan secretary war recently visited japan china connection tour philippines large delegation american business men present traveling china exchange friendly visits happy effect even strengthening friendly international relations past year several southern sister republics celebrated one hundredth anniversary independence honor events special embassies sent country argentina chile mexico gracious reception splendid hospitality extended manifested cordial relations friendship existing countries united states relations happy believe never upon high plane solid basis present congressional commission appointed concurrent resolution attend festivities celebrating centennial anniversary mexican independence together special ambassador received highest honors greatest cordiality returned report bounteous hospitality warm reception president diaz mexican people left doubt desire immediately neighboring republic continue mutually beneficial intimate relations feel sure two governments ever cherish fourth conference met buenos aires july august last seven weeks harmonious deliberation three conventions signed providing regulation patents copyrights ratified different governments go far toward furnishing american authors patentees owners protection needed localities heretofore either lacking inadequate convention arbitration pecuniary claims signed number important resolutions passed conventions due course transmitted senate report delegation united states communicated congress information special cordiality representative men parts america shown conference fail react upon draw still closer relations countries took part international bureau american republics broad useful work pan american commerce comity duties much enlarged international conference american states buenos aires name shortened practical expressive term pan american union located new building specially dedicated april 26 year development friendship trade peace among american nations improved instrumentalities serve republics hemisphere glad say action united states desire remove imminent danger war peru ecuador growing boundary dispute cooperation brazil argentine republic joint mediators government already resulted successfully preventing war government chile one mediators lent effective aid furtherance preliminary agreement likely lead amicable settlement doubted good offices mediating powers conciliatory cooperation governments directly interested finally lead removal perennial friction ecuador peru inestimable value cordial cooperation sister republics america maintenance peace hemisphere never clearly shown mediation three american governments given hemisphere honor first invoking provisions hague convention pacific settlement international disputes signed representatives united states mexico protocol submitting united boundary commission whose membership purpose case increased addition citizen canada question sovereignty chamizal tract lies within present physical boundaries city e1 paso tex determination question remove source little annoyance two governments republic honduras many years burdened heavy bonded debt held europe interest long ago fell arrears finally conditions became imperative refund debt place finances republic upon sound basis last year group american bankers undertook advance funds railway improvements contributing directly country prosperity commerce arrangement long desired government negotiations end way year confidently believed short time suffice conclude arrangement satisfactory foreign creditors eminently advantageous honduras highly creditable judgment foresight honduranean government much desired since recognized washington conventions strong honduras would tend immensely progress prosperity central america past year republic nicaragua scene internecine struggle general zelaya seventeen years absolute ruler nicaragua throughout career disturber central america opposed every plan promotion peace friendly relations five republics people nicaragua finally driven rebellion lawless exactions violated laws war unwarranted execution two american citizens regularly enlisted ranks revolutionists offenses made duty american government take measures view ultimate reparation safeguarding interests involved breaking diplomatic relations zelaya government reasons laid communication secretary state also notified contending factions nicaragua government would hold strict accountability outrages rights american citizens american forces sent coasts nicaragua readiness occasion arise protect americans interests remained war peace returned unfortunate country events together zelaya continued exactions brought clearly bar public opinion forced resign take refuge abroad communication secretary state charge zelaya government opinion expressed revolution represented wishes majority nicaraguan people proved beyond doubt fact since complete overthrow madriz government occupation capital forces revolution factions united maintain public order result discussion agent government sent managua request provisional government comprehensive plans made future welfare nicaragua including rehabilitation public credit moderation conciliatory spirit shown various factions give ground confident hope nicaragua soon take rightful place among progressive countries world gratifies exceedingly announce argentine republic months ago placed american manufacturers contract construction two certain additional naval equipment extent work importance argentine republic make placing bid earnest friendly feeling toward united states new tariff law section 2 respecting maximum minimum tariffs united states provisions came effect april 1 1910 imposed upon president responsibility determining prior date whether undue discrimination existed united states products country world sustained commercial relations case several countries instances apparent undue discrimination american commerce found exist discriminations removed negotiation prior april 1 1910 maximum tariff come operation respect importations countries whose favor proclamation applying minimum tariff issued president one hundred proclamations issued series proclamations embraced entire commercial world hence minimum tariff united states given universal application thus testifying satisfactory character trade relations foreign countries marked advantages commerce united states obtained tariff settlements foreign nations fully cognizant fact section 2 tariff act president required whenever satisfied treatment accorded products united states entitle benefits minimum tariff united states withdraw benefits proclamation giving ninety days notice maximum tariff apply dutiable products entering united states general operation section tariff law thus far proved guaranty continued commercial peace although unfortunately instances foreign governments deal arbitrarily american interests within jurisdiction manner injurious inequitable policy broader closer trade relations dominion canada initiated adjustment maximum minimum provisions tariff act august 1909 proved mutually beneficial justifies efforts readjustment commercial relations two countries commerce may follow channels natural contiguous countries commensurate steady expansion trade industry sides boundary line reciprocation part dominion government sentiment expressed government followed october suggestion would glad negotiations temporarily suspended summer resumed accordance suggestion secretary state direction dispatched two representatives department state special commissioners ottawa confer representatives dominion government authorized take steps formulating reciprocal trade agreement might necessary receive consider propositions dominion government might care submit pursuant instructions issued conferences held commissioners officials dominion government ottawa early part november negotiations conducted sides spirit mutual accommodation discussion common commercial interests two countries object satisfactory basis trade arrangement offers prospect freer interchange products united states canada conferences adjourned resumed washington january hoped aspiration governments mutually advantageous measure reciprocity realized tariff negotiations vital commerce industry duty jealously guarding equitable treatment products capital industry abroad devolve upon department state argentine contracts like subsequent important one argentine railway equipment cuban government vessels secured manufacturers largely good offices department state efforts department secure citizens united states equal opportunities markets world expand american commerce successful volume business obtained new fields competition upon new lines already great congress urged continue support department state endeavors trade expansion foreign trade merits best support government earnest endeavor manufacturers merchants already cases need foreign market certain soon become dependent therefore time secure strong position field leave subject without emphasizing necessity legislation make possible convenient establishment american banks branches american banks foreign countries means foreign trade favorably financed necessary credits arranged proper avail made commercial opportunities foreign countries especially latin america another instrumentality indispensable unhampered natural development american commerce merchant marine maritime commercial nations recognize importance factor greatest commercial nations competitors jealously foster merchant marine perhaps nowhere need rapid direct mail passenger freight communication quite urgent united states latin america secure quarter world immediate benefits friendship commerce would flow establishment direct lines communication countries latin america adequate meet requirements rapidly increasing appreciation reciprocal dependence countries western hemisphere upon products sympathies assistance alluded important subject last annual message often need recapitulate reasons recommendation unless prompt action taken completion panama canal find great commercial nation unable avail international maritime business great improvement means world commercial intercourse quite aside commercial aspect unless create merchant marine find seafaring population necessary natural naval reserve could find case war transports subsidiary vessels without naval fleet arms without body many reasons strongly urge upon congress passage measure mail subsidy subvention adequate guarantee establishment rapid development american merchant marine restoration american flag ancient place upon seas course aid ought given conditions publicity beneficiary business accounts would show aid received needed maintain trade properly used purpose increasing international intercourse becomes incumbent upon repeat emphatically ever recommendation made inaugural address congress shall give courts united states jurisdiction punish crime violation rights aliens secured treaty united states order general government united states shall able called upon friendly nation redeem solemn promise treaty secure citizens subjects nation resident united states freedom violence due process law respect life liberty property also strongly commend favorable action congress enactment law applying diplomatic consular service principles embodied section 1753 revised statutes united states civil service act january 16 1883 executive orders june 27 1906 november 26 1909 excellent results attended partial application civil service principles diplomatic consular services earnest benefit wrought wider permanent extension principles branches foreign service marked improvement consular service four years since principles civil service act applied service limited way good results already noticeable similar application civil service principles diplomatic service year ago convince enactment law general principles existing executive regulations could fail effect improvement branches foreign service offering would assurance permanency tenure promotion merit inducement entry capable young men service incentive already put forth best efforts attain maintain degree efficiency interests international relations commerce demand many years past appeals made time time congress favor government ownership embassy legation premises abroad arguments favor ownership many oft repeated well known congress acquisition government suitable residences offices diplomatic officers especially capitals states europe important necessary improved diplomatic service hesitation urging upon congress passage measure similar favorably reported house committee foreign affairs february 14 1910 report 438 would authorize gradual annual acquisition premises diplomatic use work diplomatic service devoid partisanship importance appeal every american citizen receive generous consideration congress every effort made department chief reduce estimated cost department ensuing fiscal year ending june 30 1912 say order congress may understand estimates thus made present smallest sum maintain departments bureaus offices government meet obligations existing law cut estimates would result embarrassing executive branch government performance duties remark apply river harbor estimates except expenses maintenance meeting obligations authorized contracts apply public building bill navy building program course congress could withhold part estimates without interfering discharge ordinary obligations government performance functions departments bureaus offices final estimates year ending june 30 1912 sent treasury november 29 year ordinary expenses government including public buildings rivers harbors navy building program amount less appropriations fiscal year ending june 30 1911 less total estimates including supplemental estimates submitted congress treasury year 1911 less original estimates submitted treasury 1911 figures include appropriations panama canal policy respect ought spend much year economically effectively expended order complete canal promptly possible therefore ordinary motive cutting expense government apply appropriations purpose noted estimates panama canal ensuing year millions dollars increase twenty millions amount appropriated year difference due fact estimates 1912 include something nineteen millions fortification canal estimated expenditures treasury estimated receipts next year making probable surplus ordinary receipts ordinary expenditures table showing detail estimates comparisons referred follows treasury department one original departments government changes monetary system made time time creation national banks thought necessary organize new bureaus divisions added somewhat haphazard way resulted duplication duties might well ended lack system economic coordination attracted attention head department giving time last two years aid experts consulting bureau chiefs reformation abolished four hundred places civil service without injuring efficiency merely illustrate character reforms possible shall comment specific changes made ought made legislative aid auditing system vogue old government methods used antiquated six auditors seven assistant auditors nine departments present system function auditor department exercises determine accounts presented disbursing officers object expenditure within law appropriation made congress purpose face calculations accounts correct examine merits transaction determine reasonableness price paid articles purchased furnish substantial check upon disbursing officers heads departments bureaus sufficient promptness enable government recoup full measure unlawful expenditure careful plan devised presented congress recommendation force auditors employees greatly reduced thereby effecting substantial economy economy small compared larger economy effected consolidation change methods possibilities regard shown reduction expenses importance methods efficiency office auditor post office department without slightest degree impairing comprehensiveness efficiency work cut expenses office year collection revenues especially customs revenues great improvement effected improvements contemplated detection frauds weighing sugar upwards recovered beneficiaries fraud entirely new system free possibilities abuse devised department perfected method collecting duties port new york save government upwards ten eleven million dollars spirit change reform infused customs offices country methods used many places archaic would seem reason surveyor port really acts collector subordinate collector less salary directly control little reason existence naval officer kind local auditor work mainly examination accounts conducted washington results greater security government naval officers various ports presidential appointees many drawing good salaries offices abolished reduced force made part central auditing system entirely many customs districts many customs collectors districts consolidated collectors charge draw good salaries many proportion collections made abolished treated mere branch offices accordance plan treasury department presented consideration congress illustration cost collecting 1 revenue typical small ports like port york port annapolis cost collect 1 revenue natchez alexandria essential preventing smuggling customs districts increased number violation customs laws quite easily prevented much economically service use special agent traveling force treasury department reorganization special customs agents perfected view retaining special knowledge customs laws regulations usual methods evasion improvement danger government recommended consolidation abolition customs districts investigation appraising system vogue new york city shown sacrifice interests government course remedied reorganization employment competent experts prosecutions instituted growing frauds discovered awaiting hearing federal courts great improvements made respect mints assay offices diminished appropriations asked whose continuance unnecessary year estimate expenses less two years ago opportunity saving abolition several mints assay offices become unnecessary modern machinery installed better work done appropriations consequently diminished bureau engraving printing great economies effected useless divisions abolished result saving year total expenses bureau despite increased business treasurer office division public moneys part cover functions also true office register division loans currency plans elimination duplication offices presented congress office comptroller currency one important preservation proper banking methods national banking system united states present comptroller impressed subordinates necessity conducting investigations establish principle every bank failure unnecessary proper inspection notice threatening conditions responsible directors officers prevent public buildings still suffer method appropriation much criticized connection rivers harbors method devised controlling supply public buildings harmonize actual needs government comes actual construction past little study building plans sites view actual needs government buildings effect warehouses economical handling transportation thousands tons mail made monumental structures often located far convenient economical spot actual construction buildings closer scrutiny methods employed government architects architects employed government resulted decided economies hoped time give opportunity thorough reorganization last public building bill carried authorization ultimate expenditure approved many good features contained approved river harbor bill drawn upon principle ought abandoned seems wiser method preparing public building bill would preparation report commission government experts whose duty report congress government needs way construction public buildings every part country army engineers make report reference utility proposed improvements rivers harbors added function recommended army engineers including recommendation relative importance various projects found worthy approval execution treasury department one income government collected expenditures disbursed seems proper place consider operation existing tariff bill became law august 6 1909 measure existing tariff bill never exceeded customs bill history country corporation excise tax proportioned net income every business corporation country worked well tax easily collected prompt payment indicates incidence tax heavy offers moreover opportunity knowledge government general condition business corporations means far important part business country original act provision made publication returns provision subsequently amended congress matter left regulation president directed issue needed regulations made possible public generally know examination record returns corporations stock listed public stock exchange offered sale general public advertisement otherwise returns corporations whose stock listed offered sale directed open inspection examination creditors stockholders corporation whose record sought returns corporations subject inspection government officer examination court return made corporation relevant competent evidence schedules rates duty payne tariff act subjected great deal criticism unfounded much misrepresentation act adopted pursuance declaration party responsible customs bill tariff protection home industries measure protection difference cost producing imported article abroad cost producing home together addition difference might give reasonable profit home producer chief criticism tariff charge respect number schedules declared measure followed higher difference retained inserted way undue discrimination favor certain industries manufactures little criticism tariff directed protective principle stated time tariff prepared undoubtedly short make impossible congress experts acquire information necessary strictly conform declared measure order avoid criticism kind future nearly conforming party promise congress last session made provision request continuance board created authority maximum minimum clause tariff bill authorized board expend money appropriated direction ascertainment cost production home abroad various articles included schedules tariff tariff board thus appointed authorized diligent preparing necessary investigations hope advocated use board tariff purposes question rate duty imposed shall become business question less political question ascertained experts long training accurate knowledge halt business shock business due announcement new tariff bill prepared put operation avoided treating schedules one one occasion shall arise change rates report upon schedule tariff board competent make report likely board able make report present session congress schedules proper examination involves enormous amount detail great deal care hope able opening new congress least session congress bring attention facts regard schedules present tariff may prove need amendment carrying plan course involves full cooperation congress limiting consideration tariff matters one schedule time proposed amendment tariff bill involve complete consideration schedules another revision shall repeat evil business country times past suffered grievously stagnation uncertainty pending resettlement law affecting business directly indirectly much emphasize importance benefit plan proposed treatment tariff facilitates removal noteworthy defects important law without disturbance business prosperity even important happiness comfort people elimination instances injustice tariff inquiries members tariff board made last summer methods pursued governments reference fixing tariffs determination effect upon trade show government maintains office bureau officers employees made life work study tariff matters foreign home prices cost articles imported effect tariff upon trade whenever change thought necessary tariff law office source reliable information propriety change effect strongly convinced need government office secured making tariff board already appointed permanent tariff commission duties powers emoluments may seem wise congress give proposed enlarge board three five present number convenient know increase two members would objectionable whether protective policy continued degree protection accorded home industries questions people must decide chosen representatives whatever policy adopted clear necessary legislation based impartial thorough continuous study facts method impartial scientific study experts preliminary legislation hope see ultimately adopted fixed national policy respect tariff rivers harbors waterways public buildings also pursued nonpartisan monetary commission congress exhaustive valuable study banking currency systems foreign countries completed comparison business methods institutions powerful successful commercial rivals sure immense value urge upon congress importance nonpartisan disinterested study consideration banking currency system idle dream commercial expansion development national trade scale measures matchless opportunities unless lay solid foundation sound enduring banking currency system problem partisan sectional national war department within jurisdiction management army connection therewith coast defenses government dependencies philippines porto rico recommendation plans improvement harbors waterways execution adopted virtue executive order supervision construction panama canal army united states small body compared total number people preservation whose peace good order last resource army numbers men engaged coast artillery detailed management use guns forts batteries protect coasts rest army mobile part national forces divided 31 regiments infantry including porto rican regiment 15 regiments cavalry 6 regiments field artillery corps ordnance engineers signal quartermaster department commissary department medical corps general plan army united states peace skeleton organization excess trained officers thus capable rapid enlargement enlistments supplemented emergency national militia volunteer force measure plan adopted large proportion cavalry field artillery compared infantry present army peace basis infantry force trained six months cavalry light artillery force one two years hence importance ready larger number skilled soldiers militia system congress constitution authorized provide developed dick law discipline tactics drill rank uniform various branches militia assimilated far possible regular army militia law constitution provides governors states appoint militia officers appropriations congress states induced comply rules assimilation regular army militia force efficiency differs different states could incorporated single command regular army time year receives benefit drill maneuvers conditions approximating actual military service supervision regular army officers army united states addition regular forces militia forces may summoned defense nation president also volunteer force made large part army civil war war long continuance would become important constituent act dates civil war known volunteer act makes provision enlistment volunteers army united states time war found defective philippine war special act organization volunteer regiments take part war adopted much better adapted necessities case pending congress bill repealing present volunteer act making provision organization volunteer forces time war admirably adapted meet exigencies would presented passage bill would entail dollar expense upon government time future war comes war come methods therein directed accordance best military judgment ought act would prevent necessity discussion new legislation delays incident consideration adoption earnestly urge passage volunteer bill recommend congress establish commission determine early practicable comprehensive policy organization mobilization administration regular army organized militia volunteer forces event war one great difficulties prompt organization mobilization militia volunteer forces absence competent officers rank captain teach new army unit company business soldiers taking care render effective service need army officers supplied provisions law authorizing appointment greater number army officers needed supply commands regular army troops enlisted service enough regular army officers command troops enlisted congress authorized department followed example congress exercised authority conferred detailing army officers duty command troops instance large number army officers assigned duty military colleges colleges military training given large number officers assigned general staff duty various places army officers legally assigned take away regiments companies order militia state properly drilled made like regular army regular army officers detailed assist state supervision state militia impossible unless provision made congress considerable increase number company field officers army bill pending congress purpose earnestly hope interest proper development republican army army small time peace possible prompt adequate enlargement time war shall become possible laws united states bill strong argument based ground quite similar increased officers bill bill increase sixty army engineers army engineers largely employed expenditure moneys appropriated improvement rivers harbors construction panama canal addition military duties include building fortifications coasts dependencies requires many engineers army public works civil military therefore much delayed earnestly recommend passage bill passed house last session pending senate directed estimates appropriation improvement coast defenses united states reduced minimum completion needed fortifications corregidor philippine islands pearl harbor hawaiian islands expedited much possible proposition make olongapo subig bay naval base pacific given treated merely supply station fortifications philippines largely confined corregidor island adjacent islands command entrance manila bay rendered impregnable land sea attack pacific naval base transferred pearl harbor hawaiian islands necessitates heavy fortification harbor establishment important military station near honolulu urge estimates made war department purposes approved congressional appropriation last summer request secretary war visited philippine islands described trip report found islands state tranquillity growing prosperity due largely change tariff laws opened markets america products philippines opened philippine markets american manufactures rapid increase trade two countries shown following table exclusive gold silver latest monthly returns show exports year ending august 1910 united states 49 per cent total united states 34 per cent total year ending august 1909 exclusive gold silver government supplies latest monthly returns show imports year ending august 1910 united states 30 per cent total united states 18 per cent total year ending august 1909 year one prosperity progress porto rico certain political changes embodied bill provide civil government porto rico purposes passed house representatives june 15 1910 last session congress awaiting action senate importance features bill relating public health sanitation overestimated removal politics judiciary providing appointment municipal judges excellent recommend step taken providing therein appointment secretaries marshals courts provision bill partially elective senate number elective members progressively increased doubtful wisdom composition senate provided bill introduced house seems better meet conditions existing porto rico important measure recommend early consideration passage already expressed opinion congress respect character river harbor bills enacted law exercised much power could law directing chief engineers make report congress conform needs committee framing bill determining proposed improvements important ought completed first promptly instance colonel goethals army engineer officer charge work panama canal made visit isthmus inspect work done consult ground certain problems likely arise near future progress work satisfactory unexpected obstacle presents canal completed well within time fixed colonel goethals wit january 1 1915 within estimate cost press reports reached united states time time giving accounts slides earth large yardage culebra cut elsewhere along line might inferred work much retarded time completion necessarily postponed report doctor hayes geological survey sent within last month isthmus make investigation shows section canal zone composed sedimentary rocks rather weak structure subject almost immediate disintegration exposed air subsequent deposition sediments igneous rocks harder durable thrust cold time intrusion united indifferently sedimentary rock contacts result conditions cut deepened causing unbalanced pressures slides sides cut occurred part due flowing surface soil decomposed sedimentary rocks upon inclined surfaces underlying undecomposed rock part crushing structurally weak beds excessive pressure slides occur one side cut distance 4 5 miles character understood allowance made calculations yardage amount slides removed greater slope given bank many places order prevent recurrence allowance exceed ten millions yards considering number yards removed cut average month year total remaining excavated including slides yards seen addition excavation offer great reason delay feature material excavated cut seriously delay obstruct construction canal lock type increase excavation due slides cut made 85 feet deeper canal would certainly great delay completion time beyond patience american people among questions arising present solution whether canal shall fortified already stated congress strongly favor fortification reiterate opinion ask consideration subject light report already made competent board discretion believe modern fortifications necessary adequate protection policing canal duty construct built canal property convention indicated desire indeed undertaken universal equal use also well known one chief objects construction canal increase military effectiveness navy failure fortify canal would make attainment aims depend upon mere moral obligations whole international public obligations would powerless enforce could never way absolutely safeguarded desperate irresponsible enemy another question arises consideration possible legislation question tolls canal question necessarily affected probable tonnage go canal matter estimate one government commission 1900 investigated question made report concluded total tonnage vessels employed commerce could use isthmian canal 1914 would amount tons net register traffic would increase per cent per decade probable commerce included totals would abandon routes present followed make use new canal might take time perhaps two years readjust trade reference new conditions canal would establish include moreover tonnage war vessels although inferred vessels would make considerable use canal matter tolls reached conclusion dollar net ton would drive business away canal higher rate would determining tolls certainly ought insist amount enough pay interest investment united states made construction canal ought first benefit derived united states expenditure measured solely return upon investment construction might well left private enterprise adequate return upon money invested could expected immediately near future peculiar political advantages derived construction canal fell government advance money perform work addition benefit naval strength canal greatly increases trade facilities united states undoubtedly cheapen rates transportation freight eastern western seaboard world canal anxious world trade shall use must recognize active competitor suez canal means carriage two oceans tehuantepec railroad railroads freight routes central america cases question whether panama canal used tonnage increased determined mainly charge use impression tolls ought exceed 1 per net ton january 1 1911 tolls suez canal 7 francs 25 centimes net ton suez canal measurement modification danube measurement dollar ton secure figures gross income panama canal nearly cost maintenance operation estimated exceed ultimately course normal increase trade hope income approximate interest charges upon investment inquiries already made chief engineer canal show present consideration question necessary order commerce world may time adjust new conditions resulting opening new highway whole recommend within certain limits president authorized fix tolls canal adjust seems commercial necessity next question arises maintenance management general control canal completion premised essential part navy establishment coal oil ship supplies dry dock repair shops conveniently located reference naval vessels passing canal government naval purposes undertake furnish conveniences navy conveniences equally required commercial vessels would seem strong reasons government take include management furnishing navy public facilities sale coal oil ship supplies maintenance lock canal enormous size sparsely populated country tropics danger disease always present requires large complete organization full police powers exercising utmost care visitor canal impressed wonderful freedom tropical diseases isthmus must misled constant vigilance needed preserve condition vast machinery locks necessary amount dredging preservation banks canal slides operation maintenance equipment railway require force course likened way present organization construction skilled body men keep state usefulness great instrument commerce organization makes easy include within functions furnishing fuel repairs supply facilities trade world essential isthmus panama port said suez depots coal supplies commercial necessities within thousands miles isthmus another important reason ancillary duties may well undertaken government opportunity discrimination patrons canal offered private concessions granted furnishing facilities nothing would create greater prejudice canal suspicion certain lines traffic favored furnishing supplies supplies controlled large interest might motive increasing cost use canal may added termini ample enough permit fullest competition respect furnishing facilities necessities world trade even wise invite competition granting concession would necessarily circumstances take appearance privilege monopoly close reference canal without suggesting wise amendment interstate commerce law provision prohibiting interstate commerce railroads owning controlling ships engaged trade panama canal believe provision may needed save people united states benefits competition trade eastern western seaboards canal constructed secure duties department justice greatly increased legislation congress enacted interest general welfare people extending activities avenues plainly within constitutional jurisdiction thought wise necessary general government heretofore occupy glad say appropriations made department improved organization vast amount litigation civil criminal character disposed current year explain necessity slightly increasing estimates expenses department report shows recoveries made behalf government duties fraudulently withheld public lands improperly patented fines penalties trespass prosecutions convictions antitrust law prosecutions law invite especial attention prosecutions federal law bucket shops schemes defraud use mail essential part fraudulent conspiracy prosecutions saved ignorant weak members public saving hundreds millions dollars violations antitrust law present perhaps important litigation department number cases filed shows activity government enforcing statute special message last year brought attention congress propriety wisdom enacting general law providing incorporation industrial companies engaged interstate commerce renew recommendation behalf invite attention congress great number claims instance congress considered court claims decided valid claims government delay occurs payment money due claims injures reputation government honest debtor earnestly recommend claims come congress judgment approval court claims promptly paid one great crying need united states cheapening cost litigation simplifying judicial procedure expediting final judgment present conditions poor man woeful disadavantage legal contest corporation rich opponent necessity reform exists united states courts state courts order bring however naturally falls general government example furnish model states legislative commission appointed joint resolution congress revise procedure united states courts yet made report law supreme court united states power given duty frame equity rules procedure obtain federal courts first instance view heavy burden pressing litigation court carry one two members incapacitated ill health able take problems improving equity procedure practically remained since organization court 1789 reasonable expect vacancies upon court filled take question cheapening simplifying procedure equity courts united states equity business much important federal courts may add much expensive strongly convinced best method improving judicial procedure law empower supreme court medium rules court equity way done england thoroughly done simplicity expedition procedure english courts today make model reform systems several lord chancellors england chief justices left lasting impress upon history country constructive ability proposing securing passage remedial legislation effecting law reforms conceive higher duty supreme court could perform leading way simplification procedure united states courts man ought matter right review case supreme court satisfied one hearing court first instance one review court appeals proper chief usefulness supreme court especially supreme court united states cases come expound law especially fundamental law constitution furnish precedents inferior courts future litigation executive officers construction statutes performance legal duties therefore provisions review cases supreme court cast upon court duty passing questions evidence construction particular forms instruments like indictments wills contracts decisions general application importance merely clog burden court render difficult higher function makes important part framework government supreme court carrying unnecessary burden appeals kind earnestly urge removed statutes respecting review supreme court united states decisions court appeals district columbia ought amended place court position respect review decisions various united states circuit courts appeals act march 2 1907 authorizing appeals government certain judgments criminal cases defendant put jeopardy within meaning constitution amended appeals taken circuit courts appeals instead supreme court cases except involving construction constitution constitutionality statute power supreme court review certiorari exercised court determinations several circuit courts appeals appeals copyright cases reach final judgment courts appeals instead supreme court decision courts appeals made final also cases wherein jurisdiction rests diverse citizenship existence federal question reviewable supreme court case involves one thousand dollars appeals united states court porto rico run circuit court appeals third circuit instead supreme court suggested changes would advised relieve supreme court consideration 100 cases annually american bar association question reducing burden litigation involved reversals review new trials frivolous appeals habeas corpus criminal cases recommendations embodied bills pending congress recommendations radical accomplish much adopted law earnestly recommend passage bills embodying wish renew urgent recommendation made last annual message favor passage law shall regulate issuing injunctions equity without notice accordance best practice vogue courts united states regard especial importance first promised second deprive complain certain alleged abuses improper issuing injunctions without notice real ground amendment take away semblance support extremely radical legislation propose pernicious adopted sap foundations judicial power legalize cruel social instrument secondary boycott recommend congress passage bill pending increase salaries federal judges chief justice united states shall receive associate justices supreme court circuit judges constituting circuit court appeals shall receive district judges judges exercise wise jurisdiction duties require profound knowledge law great ability dispatch business care delicacy exercise jurisdiction avoid conflict whenever possible federal state courts positions occupy ought filled men shown greatest ability professional work bar poorest economy possible government pay salaries low judicial service able command best talent legal profession every part country cost living especially large cities even salaries fixed proposed bill enable incumbents accumulate little anything support families death nothing important preservation country beloved institutions maintenance independence judiciary next life tenure adequate salary material contribution maintenance independence part judges last session congress made provision establishment savings banks department government general control trustees consisting secretary treasury system could begun cities towns enlarged cover within operations many cities towns large part country seemed wise initiation establishment system required great deal study part experts treasury departments system devised believed economical simpler operation similar system abroad arrangements perfected savings banks opened cities towns 1st january gradual extension benefits plan rest country said department great business department glad note fact present management principles business economy efficiency applied many years deficit operations department met appropriation treasury appropriation estimated last year treasury receipts department glad record fact estimated saved returned treasury personal efforts secured effective cooperation thousands postmasters postal officers throughout country carrying plans reorganization retrenchment result able make estimate expenses present year low keep within amount postal service expected earn gratifying report reduction deficit accomplished without curtailment postal facilities contrary service greatly extended year branches principle recommended sought enforced respect appointments appointees rendered good service reappointed greatly strengthened interest postmasters throughout country maintaining efficiency economy offices believed generally would secure tenure upon recommendation included classified service assistant postmasters believe giving secure tenure important subordinates postmasters add much efficiency offices economical administration large number postmasters classified service think would wise put classified service first second third class postmasters logical classify postmasters reason invariably small postmasters necessarily men must combine business postmastership whereas first second third class postmasters paid sufficient amount justify requirement shall business shall devote attention duties classify first second third class postmasters would require passage act changing method appointment take away necessity advice consent senate aware inviting senate concession respect quasi executive power considerable believe interest good administration efficiency service make change would take postmasters politics would relieve congressmen burdened necessity making recommendations places responsibility must irksome create nothing trouble would result securing postmasters greater attention business greater fidelity consequently greater economy efficiency conduct unrestricted manner franking privilege used several branches federal service congress laid open serious abuses fact clearly established investigations recently instituted department impossible without better control franking determine exact expense government practice doubt annually reaches millions believed many abuses franking system could prevented consequently marked economy effected supplying agencies postal service special official envelopes stamps free mail government envelopes stamps issued requisition various branches federal service requiring records kept official stamp supplies enable department maintain proper postage account covering entire volume free government mail first step direction reform special stamps stamped envelopes provided use instead franks free transmission official mail resulting business new postal savings system properly recording issuance stamps envelopes accurate records kept cost government handling postal savings mail certain become important item expense one separately determined keeping plan hoped congress authorize substitution special official stamps stamped envelopes various forms franks used carry free postage vast volume departmental congressional mail matter past year methods accounting similar employed progressive business establishments introduced postal service nothing impeded department plan regard impossibility determining exactness far various expenses postal service increased present unrestricted use franking privilege believed adoption exact method dealing problem proposed prove tremendous advantage work placing postal service strictly businesslike basis last annual message invited attention congress inadequacy postal rate imposed upon mail matter far includes magazines showed figures prepared experts department government rendering service magazines costing many millions excess compensation paid answer attempted representatives magazines reply filed answer department utter inadequacy answer considered light reply department think must appeal person whether answer could said behalf magazines another question agree question one fact insist fact experts department show furnishing owners magazines service worth millions pay justice requires rate increased increase receipts department resulting change may devoted increasing usefulness department establishing parcels post reducing cost postage one cent said fair adjustment might made advertising part magazine charged different higher rate reading matter would relieve many useful magazines circulated profit would shut use mails prohibitory rate respect parcels post respectfully recommend adoption routes 11 pounds international limit made limit carriage post view general extension income permit postal savings banks shall fully established argument made parcels post made postal savings bank introducing government business ought conducted private persons paternalism department great plant great organization reaching remote hamlet united states machinery able great many things economically new organization necessary would impossible without extravagant expenditure reason postal savings bank carried small additional cost possible incorporate inconsiderable expense parcels post system general parcels post involve much greater outlay last annual report secretary navy annual message attention called new detail officers navy department officers flag rank assigned duty aides secretary respect naval operations personnel inspection material change substantial compliance recommendation commission naval reorganization headed justice moody submitted president roosevelt february 26 1909 advice committee line officers secretary able bring proper coordination branches naval department greater military efficiency secretary navy recommends new organization recognized legislation thus made permanent concur recommendation secretary view conclusions recent court inquiry certain phases marine corps administration recommends commandant marine corps appointed four years term officers adjutant inspector department detailed line also asks legislation improve conditions existing personnel officers navy particularly regard age experience flag officers captains points essential highest efficiency navy age officers reduced flag officers particularly gain proper experience flag officers order enable properly command fleets concur secretary recommendations commend attention report secretary change system cost accounting also history naval supply fund present conditions existing regard matter previous practice seems erroneous construction law supply fund navy increased something system accounting introduced prevented striking proper balance knowledge exact cost maintaining naval establishment system abandoned naval supply account established law july 1 1910 naval supply fund deposit treasury credit department secretary recommends naval supply account made permanent law naval supply fund covered treasury unnecessary ask legislative authority sum covered treasury really reduction recorded naval cost year estimates navy department less appropriations purpose last year included building program amount submitted consideration last year merely carrying plan building two battleships year needed auxiliary vessels earnestly hope program adopted secretary navy given personal examination every studied uses reference necessities fleet fleet considerably less half size british navy shipyards double number several shipyards expensively equipped modern machinery investigation secretary navy believes entirely useless naval purposes asks authority abandon certain move machinery places made use making recommendations secretary following directly along progressive lines adopted great commercial manufacturing consolidations country dismantling unnecessary inadequate plants discontinuing existence demonstrated unprofitable continue maintenance expense commensurate product secretary points important naval base west indies guantanamo southeastern part cuba geographical situation admirably adapted protect commercial paths panama canal shows expenditure less half million dollars machinery shall take create naval station guantanamo sufficient size equipment serve purpose emergency naval base earnestly join recommendation given authority asks quite aware action likely arouse local opposition conceive axiomatic legislating interest navy general protection country navy mere local pride pecuniary interest establishment station ought play part recommendation secretary based upon judgment impartial naval officers entirely uninfluenced geographical sectional considerations unite secretary recommendation appropriation made construct suitable crypt annapolis custody remains john paul jones complete success country arctic exploration remain unnoticed centuries friendly rivalry field effort foremost nations bravest accomplished men expeditions unknown north encouraged enlightened governments deserved honors granted daring men conducted unparalleled accomplishment american reaching north pole april 6 1909 approved critical examination expert scientists added distinction navy belongs reflects credit upon country unique success received generous acknowledgment scientific bodies institutions learning europe america recommend fitting recognition congress great achievement robert edwin peary secretary interior recommends change law respect procedure adjudicating claims lands appeals taken decisions department court appeals district columbia judicial consideration rights claimant change finds complete analogy present provision appeals decisions commissioner patents judgments court cases would decisive value land claimants generally department interior administration law would enable claimants bring court final consideration issues title government land would think obviate good deal subsequent litigation arises western courts bill pending believe house favorably reported committee public lands recommend enactment one difficulties interior department land office delays attendant upon consideration land office secretary interior claims patents public lands individuals glad say recent appropriations congress earnest efforts secretary subordinates arrears disposed work department brought nearly date respect pending business ever history economies effected possible without legislative assistance shown reduced estimates expenses department current fiscal year year come subject conservation public domain commanded attention people within last two three years need radical reform methods disposing really agricultural lands present laws worked well enlarged homestead law encouraged successful farming lands semiarid regions total sum already accumulated fund provided act reclamation arid lands allotted various projects thirty congress last session provided issuing certificates indebtedness exceeding twenty millions dollars redeemed reclamation fund proceeds lands sold sufficient meantime accordance provisions law appointed board army engineers examine projects ascertain feasible worthy completion board made report upon subject shall transmit separate message within days september last conservation congress held paul delivered address subject conservation far within jurisdiction possible action federal government address assembled official records statistics facts done behalf administration predecessor indicated legislative measures believed wise order secure best use public interest remains national domain address full discussion reasons led conclusions stated purpose saving official record comprehensive resume statistics facts gathered difficulty address avoid repetition body message venture make address accompanying appendix statistics corrected november 15th last reasons stated conservation address recommend first limitation imposed upon executive forbids reserving forest lands oregon washington idaho montana colorado wyoming repealed second coal deposits government leased advertisement inviting competitive bids terms exceeding fifty years minimum rental royalties upon coal mined readjusted every ten twelve years conditions maintenance secure proper mining assignment prevent combinations monopolize control coal one district market think coal measures acres surface would large amount lease one lessee secretary interior thinks difficulties way leasing public coal lands objections set forth report force freely concede entirely approved stating length report objections order whole subject may presented congress full consideration favor leasing system recommend third law provide separation respect government phosphate lands surface mineral rights obtains coal lands power lease lands upon terms limitations similar recommended coal leases added condition enabling government regulate need prohibit export foreign countries product fourth law allow prospector oil gas right prospect two years certain tract government land right evidenced license shall pay small sum upon discovery lease may granted upon terms securing minimum rental proper royalties government also conduct oil gas well accord best method husbanding supply oil district period leases long coal contain similar provisions assignment prevent monopolistic combinations fifth sites directly leased federal government advertisement bidding exceeding fifty years upon proper rental condition fixing rates charged public units electric power rental rates readjusted equitably every ten years arbitration otherwise suitable provisions assignment prevent monopolistic combinations law shall provide upon application made authorities state site situated may patented state condition state shall dispose terms like described shall enforce terms upon failure comply condition site plant improvement site shall forfeited revert united states president given power declare forfeiture direct legal proceedings enforcement either methods would think accomplish proper public purpose respect sites one promptly adopted earnestly urge upon congress session general conservation legislation character indicated adopted last session congress took useful proper steps conservation allowing executive withdrawals suspend action existing laws respect much public domain thought danger disposing coal lands united states present laws large quantities great call withdrawal present provisions reasonably certain government receive real value land respect oil lands phosphate lands gas lands united states respect coal lands alaska exercised full power withdrawal hope action congress would follow promptly prevent tying resources country western less settled portion alaska means stagnation retrogression question conservation partisan one sincerely hope even short time present session consideration may given questions much discussed action may taken upon reference government alaska nothing add recommendations made last message subject convinced migratory character population unequal distribution smallness number new census shows relation enormous expanse territory make altogether impracticable give people alaska may year hence power elect legislature govern immense territory relation little permanent far better development territory committed commission appointed executive limited legislative powers sufficiently broad meet local needs continue present insufficient government remedial powers make popular government proper foundation upon rest suggestion appointment commission lead control government corporate selfish exploiting interests slightest foundation fact government worked well philippines would work well alaska really interested proper development territory benefit people live benefit people united states support institution government asked recommend credit government extended aid construction railroads alaska ready great many millions dollars already expended construction least two railroads laws passed providing proper development resources alaska especially opening coal lands believe capital already invested induce investment capital sufficient complete railroads building furnish cheap coal alaska whole pacific coast passage law permitting leasing government coal lands alaska public competition appointment commission government territory enabling powers meet local needs lead improvement alaska development resources likely surprise country national parks become extensive involve much detail action control seems ought legislation creating bureau care control greatest natural wonder country surrounding territory included another national park refer grand canyon colorado uniform policy government matter granting pensions gallant devoted men fought save life nation perilous days great civil war always liberal character men rapidly passing away best obtainable official statistics show dying rate something three thousand month view advancing years rate must inevitably proportion rapidly increase man risked everything field battle save nation hour direst need owe debt computed begrudging parsimonious spirit actuated spirit soldier care exercised go absurd lengths distribute bounty government classes persons may late day mere mercenary motive seek obtain legal relation old veteran tottering brink grave true spirit pension laws found noble sentiments expressed lincoln last inaugural address wherein speaking nation duty soldiers struggle said care shall borne battle widow orphans report secretary agriculture invites attention stupendous value agricultural products country amounting year amount larger 1909 existence crop indicates good prospect business throughout country notable change better commented upon secretary fact south especially regions boll weevil interfered growth cotton given attention cultivation corn cereals greater diversification crops south ever great advantage section report contains interesting account activities department various bureaus showing closely agricultural progress country following along lines improvement recommended department publications results experiment stations every state instructions given agricultural schools aided federal government following general curriculum urged head bureau chiefs department activities department greatly increased enactment recent legislation act act act act concerning interstate shipment game department one scope whose action constantly widening therefore impossible existing legislation reduce cost estimates preceding years interesting review results examination made department statistics prices shows average since 1891 farm products increased value 72 per cent things farmer buys use increased 12 per cent indication present conditions favorable farming community already referred forests united states extent urged removal limitation upon power executive reserve tracts land six western states withdrawal purpose forbidden secretary agriculture gives full description disastrous fires occurred last summer national forests drought intense recorded history west introduced condition forests made fires almost inevitable locomotive sparks negligent campers cases incendiaries furnished needed immediate one time fires extended covered range hundred miles secretary estimates standing timber value 25 millions dollars destroyed persons employ forest service killed many injured regret say provision law expenses hospital treatment interment could met public funds red cross contributed thousand dollars remainder necessary expenses made private contribution chiefly force forest service officials recommend suitable legislation adopted enable secretary agriculture meet moral obligations government respect specific fund fighting fires existed discretion secretary case emergency apply funds control purpose extent nearly million dollars involve presentation deficiency estimate current fiscal year damage done therefore due lack appropriation congress available meet emergency difficulty fighting lay remote points fires began impossible roads trails exist promptly reach proper protection necessitates secretary points expenditure good deal money development roads trails forests establishment lookout stations telephone connection places assistance secured amount reforestation shown report forest service acres compared 150 millions acres national forests seems small glad note regard secretary agriculture chief forest service looking forward far greater activity use available government land purpose progress made learning experiment best methods reforesting congress appealed secretary agriculture make appropriations needed enlarging usefulness forest service regard hope congress approve adopt estimate secretary purpose secretary department commerce labor immediate supervision application merit system promotion large number employees discussion method promotions based actual experience commend attention congress taking census proceeded promptness efficiency secretary believes concur thorough accurate census heretofore taken perfect motive prompts men false civic pride induce padding census returns order increase population particular city strong enough lead fraud respect cities country directed proceed vigor possible responsible frauds discovered interfere accuracy census highest importance official inquiry sort embarrassed fraudulent conspiracies private local interest reorganization board effected considerable saving administration estimates service present year less preceding year addition three tenders appropriations made built present needed service secretary asking large sum addition lights aids commerce seas including number alaska trade along coast becoming important respectfully urge necessity following recommendation commissioner corporations completed first part report lumber industry united states part find existence trust combination manufacture lumber commissioner find however condition ownership standing timber united states government timber calls serious attention direct investigation made commissioner covered area contains 80 per cent privately owned timber country report shows timber area owned 200 individuals corporations 14 per cent owned 3 corporations extensive interownership stock well circumstances pointing friendly relations among majority timber relationship might lead combination maintenance price would detrimental public interest would create necessity removing tariff obstacles free importations lumber countries glad note secretary report satisfactory progress made respect preservation seals pribiloff islands active steps taken department state secure arrangement shall protect pribiloff herd losses due pelagic sealing meantime government secured seal pelts bachelor seals killing interfere maintenance herd sale next month expected realize sum largely excess rental paid lessee government previous contract coast geodetic survey engaged surveying coasts philippine archipelago heavy work extended character coast line islands glad note half needed survey completed large part coast line archipelago unsurveyed make navigation neighborhood number islands especially east side particularly dangerous commissioner labor actively engaged composing differences employers employees engaged interstate transportation erdman act jointly chairman interstate commerce commission speak high terms success two officers conciliation settlement controversies interposition would resulted disastrously interests invite attention serious injury caused engaged manufacture phosphorous matches diseases incident frightful matches made materials entirely innocuous believe injurious manufacture could discouraged ought discouraged imposition heavy federal tax recommend adoption method stamping serious abuse since 1868 declared purpose government favor movement day provision law none employees employed behalf government work longer eight hours every first declaration view accompanied penal clause provision enforcement though president grant proclamation twice attempted give sanction require officers government carry purpose framers law ultimately defeated decision supreme court holding statute drawn merely direction government agents invalidate contract made behalf government provided contract labor day longer hours eight thereafter 1892 present law passed provides services employment laborers mechanics may hereafter employed government united states district columbia contractor subcontractor public works united states said district columbia hereby restricted eight hours one calendar day law construed limit application requirement directly employed government employed upon public works situate upon land owned united states construction prevented application government battle ships vessels built private shipyards heavy guns armor plate contracted made private establishments proposed act provides laborer mechanic part work contemplated contract united states employ contractor subcontractor shall required permitted work eight hours day one calendar day seems past history government committed policy encouraging limitation day work eight hours works construction initiated seems illogical maintain difference government work done government soil government work done private establishment work large dimensions involves expenditure much labor considerable period private manufacturer may adjust establishment special terms employment must make workmen particular job require however every small contract manufacture entered government carried contractor men working eight hours would impose intolerable burden upon government limiting sources supply excluding altogether great majority would otherwise compete business proposed act recognizes exceptions makes contracts transportation land water transmission intelligence materials articles may usually bought open market whether made conform particular specifications purchase supplies government whether manufactured conform particular specifications recommend instead enacting proposed bill meaning clear definite might given construction embarrassing public interest present act enlarged providing public works shall construed include buildings work upon public ground also ships armor large guns manufactured private yards factories one great difficulties enforcing law application certain emergencies becomes exceedingly oppressive great temptation subordinate officials evade think would wiser allow president executive order declare emergency special instances limitation might apply cases permit payment government extra compensation time worked day excess eight hours may add suggestions respect legislation full concurrence commissioner labor view keen widespread interest felt united states system compensation industrial accidents supplant present thoroughly unsatisfactory system employers liability subject importance congress already recognized appointment commission recommend international congress industrial insurance invited hold meeting 1913 washington appropriation made cover necessary expenses organizing carrying meeting immigration country increasing year large part comes immigrant station ellis island city new york examination station methods pursued satisfies difficult task performed commissioner force common sense strictest fairness earnest desire enforce law equitably mercifully proposed enlarge accommodations allow immigrants come port think wise policy objection contrary recommend construction additional buildings purpose facilitating closer careful examination immigrant comes deprecate enlargement buildings force purpose permitting examination immigrants per day examined understood immigrants taken new york taken steamship companies thus given reason motive transferring immigrants ports confident better distributed country congestion city new york make better condition immigrant increase usefulness new member community everything tends send immigrants west south rural life helps country concur secretary recommendations amendments immigration law increasing fine companies violation regulations giving greater power commissioner enforce care part steamship companies accepting immigrants recommendation secretary urges law may amended discourage separation families think good one message last year recommended creation bureau health embraced government agencies outside war navy departments directed toward preservation public health exercise functions germane subject renew recommendation greatly regret agitation favor bureau aroused counteragitation creation ground establishment bureau interest particular school medicine seems assumption wholly unwarranted responsible government trusted secure personnel bureau appointment representatives recognized schools medicine management bureau entire freedom narrow prejudice regard act passed congress president authorized expend million dollars construct needed work prevent injury lands imperial valley overflow colorado river appointed competent engineer examine locality report plan construction done order complete work necessary secure consent mexico part work must constructed mexican territory negotiations looking securing authority quite near success southern pacific railroad company proposes assist us work lending equipment transportation material cost price hoped work may completed danger shall arise spring floods river work done supervision secretary interior consulting engineer general marshall late chief engineers retired leads invite attention congress claim made southern pacific railroad company amount expended similar work relief called flood great emergency work informed undertaken request predecessor promise reimburse railroad company seems equity claim manifest question involved reasonable value work done recommend payment claim sum found government district columbia good government police force perhaps might given acquire military discipline bearing appearance nevertheless efficient body men free graft discharges important duties capital nation effectively parks streets city district generally kept clean excellent condition commissioners district affairs well hand extravagant constantly looking municipal improvements expensive must made modern growing city like washington true nevertheless fact washington governed congress citizens responsible direct control popular election district matters properly subjects government inquiry criticism citizens manifested public press otherwise criticism command careful attention congress washington capital nation maintenance great beautiful city national control every lover country much heart present every way model respect economy expenditure sanitation tenement reform thorough public instruction proper regulation public utilities sensible extended charities proper care criminals youth needing reform healthful playgrounds opportunity popular recreation beautiful system parks glad think progress made directions venture point certain specific improvements toward ends congress wisdom might adopt speaking generally think ought concentration authority respect accomplishment purposes economy expenditure attention invited peculiar situation existing regard parks washington park system proper comprising 343 different areas office public buildings grounds however nothing control rock creek park zoological park grounds department agriculture botanic garden grounds capitol public grounds regularly open public ought part park system exclusive grounds soldiers home washington barracks public grounds used parks district columbia comprise acres ten different controlling officials bodies division jurisdiction unfortunate large sums money spent yearly beautifying keeping good condition parks grounds connected government buildings institutions work done general character work office public buildings grounds provided congress special organization equipment lacking grounds office doubt work care improvement upon grounds belonging united states district columbia put far possible one responsible head result would greater efficiency economy work greater harmony development public parks gardens city congress last session provided two parks called meridian hill montrose parks district commissioners also included estimates sum used acquisition much needed park land adjoining zoological park known klingle ford tract expense three parks included estimates commissioners aggregates think would lead economy improvement care parks public grounds described transferred office public buildings grounds equipment well economically adapted carrying public purpose respect improvements kind prevent encroachments upon park area recommended erection permanent structure lands district columbia belonging united states prohibited except specific authority congress already previous communications congress referred importance acquiring district columbia least part territory side potomac virginia originally granted district state virginia retroceded act congress 1846 evident conferences senators representatives virginia hope regranting state land thus given back frank say far tract includes town alexandria land remote potomac river would particular advantage bringing within national control land lies along potomac river railroad bridge across potomac including arlington cemetery fort myer government experiment farm village rosslyn palisades potomac reaching old district line intersects river sparsely settled could admirably utilized increasing system parks washington suggested virginia senators representatives government acquire government park land described great value present law virginia would work creation federal jurisdiction complete enough legislature virginia would probability enlarge jurisdiction enable congress include within control government district columbia actually make part washington earnestly recommend steps taken carry plan sufficient number corporations enjoying use public utilities district columbia justify require enactment law providing supervision regulation public interest consistent vested rights secured charters part corporations wit street railways put control interstate commerce commission commission recommends power taken intimates broadly important duties make impossible give requisite supervision seems wise place general power supervision regulation district commissioners said present duties absorbing would prevent proper discharge new functions present jurisdiction brings closely frequently contact corporations makes know detail corporations discharging duties law serving public interest commissioners peculiarly fitted work hope congress impose upon intrusting powers respect corporations similar public utilities commission new york city similar boards massachusetts think present control school system washington commends efficient economical thorough instrument carrying public instruction cost education district columbia excessive compared cost cities similar size apparent results general satisfactory average cost per pupil per day washington 38 cents average cost 13 american cities fairly comparable washington population standard education cents dollar spent salaries school teachers officers district days instruction per pupil given 13 cities referred dollar expended salaries affords average days instruction current fiscal year estimates board education amounted entire revenue locally collected district purposes may say seems lack definite plan expansion school system erection new buildings proper economy use buildings indicates necessity concentration control plans improvement expansion school system school board limitation expenses district commissioners think would much better put complete control responsibility district commissioners provide board school visitors appointed supreme court district president different school districts washington representing local needs shall meet make recommendations commissioners superintendent education educator ability experience appointee responsible district commissioners among items permanent improvements appearing district estimates 1912 one designed substitute willow tree alley notorious records police health departments playground building containing baths gymnasium helpful features hope congress approve estimate fair washington seems beautiful streets shade trees free expanse territory occupies would seem make slums insanitary congestion population centers interior squares poor criminal classes well huddle together filth noisome surroundings primary importance nuclei disease suffering vice removed substituted small parks breathing spaces model tenements sufficient air space meeting hygienic requirements estimate reform willow tree alley worst places city beginning movement ought attract earnest attention support congress congress escape responsibility existence human pest holes estimates district columbia fiscal year 1912 provide repayment united states floating debt remain june 30 1911 bonded debt reduced 1912 amount district columbia excellent financial condition share indebtedness estimated less june 30 1912 compared june 30 1909 bonded debt owed half half united states district extinguished 1924 floating debt district probably long time revenues doubled last ten years population period increased per cent believed due economy practiced district soon emerge debt even financing permanent improvements reasonable rapidity current revenues end recommend enactment law bill congress known judson bill insure gradual extinguishment district debt time requiring many permanent improvements needed complete fitting capital city shall carried year year proper rate progress funds derived rapidly increasing revenues renew recommendation claims depositors freedmen bank recognized paid passage pending bill subject also renew recommendation steps taken looking holding negro exposition celebration fiftieth anniversary issuing lincoln emancipation proclamation civil service commission continued useful duties year necessity maintenance provisions civil service law never greater officers responsible policy administration immediate personal assistants deputies included within classified service judgment public opinion advanced point would support bill providing secure tenure efficiency purely administrative officials entertain profound conviction would greatly aid efficient economical government better politics congress could enact bill providing executive shall power include classified service local offices treasury department department justice department interior department department commerce labor appointments require confirmation senate upon classification advice consent senate shall cease required appointments certainty tenure dependent good service freedom necessity political activity local officers would induced become efficient public servants civil service law attempt solve problem proper selection enter service better system law promotions ought devised given selected employee remains still question promoting efficiency usefulness government brought careful comparison unit work done individual pointing necessity improvement regard improvement possible increase activities annual expenditures federal government rapid great time come check expansion government activities new directions tested economy efficiency government carried responsibility rests upon head administration held accountable public properly despite unselfish patriotic efforts heads departments others charged responsibility government grown country conviction expenses government great fundamental reason existence undetected waste duplication bad management lack prompt accurate information president private corporation vast business government transacts would competent specialists maintain closest scrutiny comparative efficiency comparative costs division department business would know precisely duties activities bureau division order prevent overlapping adequate machinery present exists supplying president united states information respecting business responsible first time history government congress last session supplied need made appropriation enable president inquire economy efficiency executive departments assembling organization purpose outset find comparison departments bureaus impossible reason two departments estimates expenditures displayed classified alike first step reduce common standard classification judgment work done completed foundation laid businesslike national budget comparison economy efficiency several bureaus divisions conducted enable president heads departments detect waste eliminate duplication encourage intelligent effective civil servants whose efforts often go unnoticed secure public service lowest possible cost committees appropriations congress diligently worked reduce expenses government found efforts often blocked lack accurate information containing proper analysis requirements actual reasonable costs result inquiry enable executive communications congress give information congress entitled enable promote economy experience leads believe government methods much criticised bad results bad results due lack zeal willingness part civil servants contrary believe fine spirit willingness work exists personnel properly encouraged produce results equal secured best managed private enterprises handling government expenditure aim profit aim maximum public service minimum cost wish reduce expenditures government wish save money enable government go beneficial projects debarred taking ought increase expenditures requested head department appoint committees economy efficiency order secure full cooperation movement employees government later date shall send congress special message general subject urge continuance appropriation requested fiscal year 1912 impossible proceed far investigation without perceiving need suitable means eliminating service superannuated done one two ways either straight civil pension form contributory plan careful study experiments made foreign governments shows three serious objections civil pension payable public treasury may brought taxpayer administrative officer civil employee respectively civil pension bound become enormous continuous increasing tax public exchequer demoralizing service since makes difficult dismissal incompetent employees partly earned pension disadvantageous main body employees since always taken account fixing salaries survive remain service pensionable age receive value deferred pay reason half century experience liberal pension system civil servants england succeeded year ago system modified make virtually contributory plan provision refund theoretical contributions experience england countries shows neither contributory plan successful human nature make provision return contributions interest case death resignation pensionable age followed logical conclusion means simplest independent solution problem employee government compulsory savings arrangement employee set aside salary sum sufficient help liberal rate interest government purchase adequate annuity retirement accumulation inalienably claimable leaves service reaching retirement age heirs case death principle upon gillett bill pending drawn gillett bill however goes provides government shall contribute pension fund employees advanced age personal contributions sufficient create annuities reaching retirement age judgment provision amended annuities employees shall paid salaries appropriated positions vacated retirement difference annuities thus granted salaries may used employment efficient clerks lower grades bill thus amended recommend passage initiate valuable system ultimately result great saving public expenditures time test benefit utility amendments interstate commerce law contained act approved june 18 1910 law enacted contain features recommended specifically denounce unlawful purchase one two parallel competing roads stock subject restraining influence interstate commerce commission power corporations engaged operating interstate railroads issue new stock bonds authorize making temporary agreements railroads limited thirty days fixing rates traffic places press consideration objects upon congress session object first provision probably generally covered antitrust law second provision act referred consideration commission appointed executive report upon matter congress commission appointed engaged investigation consideration question submitted law consists president arthur hadley yale university chairman frederick strauss frederick judson walter fisher meyer william griswold secretary third proposal led much misconstruction object weakening effectiveness antitrust law disposed press consideration intended permit railroad companies avoid useless rate cutting mere temporary acquiescence rates service competing railroads obligation whatever maintain rates time protection railroad employees personal injury subject highest importance demands continuing attention two measures pending congress one supervision boilers enlargement dangerous clearances certainly measures ought adopted looking prevention accidents causes seems respect boilers bill might well drawn requiring enforcing penalty proper system inspection railway companies would accomplish purpose entire removal outside clearances would attended enormous expense remedy must adopted act may 6 1910 interstate commerce commission authorized directed investigate accidents report causes recommendations suggest commission requested make special report injuries outside clearances best method reducing interstate commerce commission recommended appropriations purpose enabling enter upon valuation railroads always within jurisdiction commission requisite funds wanting statistics value railroad would valuable many purposes especially ultimately enact limitations upon power interstate railroads issue stocks bonds hope may think therefore order permit correct understanding facts would wise make reasonable appropriation enable interstate commerce commission proceed due dispatch valuation railroads doubt railroad companies greatly facilitate valuation make much less costly time money supposed forged fraudulent hills lading purporting issued cotton months since resulted losses several millions dollars american foreign banking cotton interests foreign bankers notified american bankers october 31 1910 would accept bills exchange drawn bills lading cotton issued american railroad companies unless american bankers would guarantee integrity bills lading american bankers rightly maintained justified giving guarantees united states would country world whose bills discredited whose foreign trade carried guaranties foreign bankers extended time guaranties demanded december 31 1910 relying upon us protection meantime money furnish move cotton crop great value country protection people preservation credit foreign trade urge upon congress immediate enactment law one good faith advances money credit upon bill lading issued common carrier upon interstate foreign shipment hold carrier liable value goods described bill valuation specified bill least extent advances made reliance upon liability exists laws many states see objection permitting two classes bills lading issued carrier shall absolutely liable suggested 2 respect carrier shall assume liability except goods actually delivered agent issuing bill carrier might permitted make small separate specific charge addition rate transportation guaranteed bill insurance premium loss added risk thus removing principal objection understand made railroad companies imposition liability suggested ordinary transportation rate would compensate liability assumed absolute guaranty accuracy bills lading recommend punishment fine imprisonment imposed upon railroad agents shippers fraud misrepresentation connection issue bills lading issued upon interstate foreign shipments except recommend amendment law stands recommend amendment law words seems existing legislation reference regulation corporations restraint business reached point stop witness effect vigorous execution laws statute books restraining abuses certainly exist roused public demand reform test develops need legislation well good let us execute due reform movements present decade undoubtedly great improvement business methods standards great body business men country responsible commercial development earnest desire obey law square conduct business requirements limitations doubtless made clearer decisions supreme court cases pending interest people country time activities government addition enforcing earnestly impartially existing laws directed economy administration enlargement opportunities foreign trade conservation improvement agricultural lands natural resources building home industries strengthening confidence capital domestic investment
past year foreign relation united state continue upon basis friendship good understanding year notable witness pacific settlement two important international controversy permanent court hague arbitration fishery dispute united state great britain source nearly continuous diplomatic correspondence since fishery convention 1818 give award satisfactory party arbitration particularly noteworthy eminently result secure also first arbitration hold general arbitration treaty april 4 1908 united state great britain disposes controversy settlement resist every resource diplomacy nearly ninety year friction two country whose common interest lie maintain friendly cordial relation united state ably represent tribunal complicated history question arise make issue depend ordinarily case upon care skill case present want proper recognition great patriotic service refer lucid historical analysis fact signal ability force argument six day length present court support case elihu root secretary state root give close study intricate fact bear controversy diplomatic correspondence help frame issue solicitation secretary state root though burdened duty senator new york undertook preparation case lead counsel condition impose view position senator receive compensation tribunal constitute hague government united state venezuela complete deliberation render award case orinoco steamship company venezuela award may regard satisfactory since pursuant contention united state recognize number important principle make judicial attitude determine international dispute view grave doubt raise constitutionality hague convention establishment international prize court senate ratification provision convention provide may appeal propose court decision national court government propose identic circular note address power take part london maritime conference power signatory convention confront difficulty might insert reservation effect appeal international prize court respect decision national tribunal take form direct claim compensation proceeding thereupon take form trial de novo judgment court consist compensation illegal capture irrespective decision national court whose judgment thus internationally involved result informal discussion decide provide procedure mean separate protocol ratify time prize court convention accordingly government netherlands request government propose date may 24 1910 power signatory hague convention negotiation supplemental protocol embody stipulation provide alternative procedure gratify observe additional protocol sign without objection power signatory original convention every reason believe international prize court soon establish identic circular note also propose international prize court establish endowed function arbitral court justice pursuant recommendation adopt last hague conference reply receive various power proposal inspire hope also may accomplish within reasonably near future believe establishment two tribunal go long way toward secure arbitration many question heretofore threaten time destroyed peace nation appreciate enlightened tendency modern time congress last session pass law provide appointment commission five member appoint president united state consider expediency utilize exist international agency purpose limit armament nation world international agreement constitute combine navy world international force preservation universal peace consider report upon mean diminish expenditure government military purpose lessen probability war yet make appointment commission invite awaiting expression foreign government willingness cooperate u appointment similar commission representative would meet commissioner joint action seek make work effective several important treaty negotiate great britain past twelve month preliminary diplomatic agreement reach regard arbitration pecuniary claim government agreement schedule claim annexed soon schedule arrange submit senate approval agreement united state great britain regard location international boundary line united state canada passamaquoddy bay middle grand manan channel reach treaty conclude may 21 1910 ratified government proclaim thus make unnecessary arbitration provide previous treaty april 11 1908 convention conclude january 11 1909 united state great britain provide settlement international difference united state canada include apportionment two country certain boundary water appointment commissioner adjust certain question ratify government proclaimed work international fishery commission appoint 1908 treaty april 11 1908 great britain united state result formulation recommendation uniform regulation govern fishery boundary water canada united state purpose protect increase supply food fish water completion work regulation agree upon require congressional legislation make effective enforcement fulfillment treaty stipulation october last monarchy portugal overthrown provisional republic proclaim set de facto government promptly recognize government united state purpose ordinary intercourse pending formal recognition power governmental entity duly establish national sovereignty disturbance among native tribe liberia portion republic early part year result send treaty 1862 american vessel war disaffect district liberian authority assist good office american naval officer able restore order negotiation undertaken amelioration condition find liberia american commission whose report transmit congress march 25 last brought conclusion think within short time practical measure relief may put effect good office government cordial cooperation government interested liberia welfare return visit special embassy announce accession majesty mehemet v emperor ottoman send constantinople special ambassador addition mission ceremony charge duty express ottoman government value attach government united state increase important relation country desire united state contribute large economic commercial development due new regime turkey rapid development begin ancient empire mark progress increase commercial importance bulgaria roumania servia make particularly opportune possibility american commerce near east receive due attention national skoupchtina express principality montenegro raise rank kingdom prince montenegro august 15 last assumed title king montenegro give pleasure accord new kingdom recognition united state center interest far eastern affair past year china gratify note negotiation loan chinese government construction trunk railway line hankow southward canton westward yangtse valley know hukuang loan conclude representative various financial group may last result approve respective government agreement already initial chinese government await formal ratification basis settlement term loan one exact equality america great britain france germany respect financing loan supply material propose railway future branch application principle underlying policy united state regard hukuang loan internationalization foreign interest railway china may finance foreign country suggest broad scale secretary state proposal internationalization commercial neutralization railway manchuria principle lead proposal government generally admit power address government russia japan apprehend practical difficulty execution large plan prevent ready adherence question construct railway mean international loan china however still subject friendly discussion interested party policy government matter direct desire make use american capital development china instrument promotion china welfare material prosperity without prejudice legitimate right independent political power policy recently find exemplification assistance give government negotiation china group american banker loan employ chiefly currency reform confusion ancient time exist monetary usage chinese one principal obstacles commercial intercourse people united state treaty 1903 china obtain pledge latter introduce uniform national coinage follow year request china government send peking member international exchange commission discus chinese government best method introduce reform 1908 china send commissioner united state consult american financier possibility secure large loan inaugurate new currency system death majesty empress dowager emperor china interrupt negotiation resume month ago government ask communicate banker concerned request china loan purpose review preliminary agreement american group china make cover loan success loan contemplate reform great importance commercial interest united state civilize world large realize expert necessary government receive assurance china adviser shall american engaged matter interest american note success attend effort china establish gradually system representative government provincial assembly open october 1909 october present year consultative body nucleus future national parliament hold first session peking year mark two important international agreement relate far eastern affair agreement relate manchuria sign july 4 1910 government gratify note assurance continue peaceful condition region reaffirmation policy respect china united state together interested power alike solemnly commit treaty annex korea empire japan promulgate august 29 1910 mark final step process control ancient empire powerful neighbor progress several year past communicate fact annexation japanese government give government united state assurance full protection right american citizen korea change condition friendly visit many distinguished person far east make year chief among imperial highness prince china imperial highness prince higashi fushimi prince tokugawa president house peer japan secretary war recently visit japan china connection tour philippine large delegation american business men present travel china exchange friendly visit happy effect even strengthen friendly international relation past year several southern sister republic celebrate one hundredth anniversary independence honor event special embassy send country argentina chile mexico gracious reception splendid hospitality extend manifest cordial relation friendship exist country united state relation happy believe never upon high plane solid basis present congressional commission appoint concurrent resolution attend festivity celebrate centennial anniversary mexican independence together special ambassador receive high honor great cordiality return report bounteous hospitality warm reception president diaz mexican people leave doubt desire immediately neighbor republic continue mutually beneficial intimate relation feel sure two government ever cherish fourth conference meet buenos aire july august last seven week harmonious deliberation three convention sign provide regulation patent copyright ratify different government go far toward furnish american author patentees owner protection need locality heretofore either lack inadequate convention arbitration pecuniary claim sign number important resolution pass convention due course transmit senate report delegation united state communicate congress information special cordiality representative men part america show conference fail react upon draw still closer relation country take part international bureau american republic broad useful work pan american commerce comity duty much enlarge international conference american state buenos aire name shorten practical expressive term pan american union locate new building specially dedicate april 26 year development friendship trade peace among american nation improve instrumentality serve republic hemisphere glad say action united state desire remove imminent danger war peru ecuador grow boundary dispute cooperation brazil argentine republic joint mediator government already result successfully prevent war government chile one mediator lent effective aid furtherance preliminary agreement likely lead amicable settlement doubt good office mediate power conciliatory cooperation government directly interested finally lead removal perennial friction ecuador peru inestimable value cordial cooperation sister republic america maintenance peace hemisphere never clearly show mediation three american government give hemisphere honor first invoke provision hague convention pacific settlement international dispute sign representative united state mexico protocol submitting united boundary commission whose membership purpose case increase addition citizen canada question sovereignty chamizal tract lie within present physical boundary city e1 paso tex determination question remove source little annoyance two government republic honduras many year burden heavy bonded debt hold europe interest long ago fell arrears finally condition become imperative refund debt place finance republic upon sound basis last year group american banker undertake advance fund railway improvement contribute directly country prosperity commerce arrangement long desired government negotiation end way year confidently believe short time suffice conclude arrangement satisfactory foreign creditor eminently advantageous honduras highly creditable judgment foresight honduranean government much desire since recognize washington convention strong honduras would tend immensely progress prosperity central america past year republic nicaragua scene internecine struggle general zelaya seventeen year absolute ruler nicaragua throughout career disturber central america oppose every plan promotion peace friendly relation five republic people nicaragua finally drive rebellion lawless exaction violate law war unwarranted execution two american citizen regularly enlist rank revolutionist offense make duty american government take measure view ultimate reparation safeguard interest involve break diplomatic relation zelaya government reason lay communication secretary state also notify contend faction nicaragua government would hold strict accountability outrage right american citizen american force send coast nicaragua readiness occasion arise protect american interest remain war peace return unfortunate country event together zelaya continued exaction bring clearly bar public opinion force resign take refuge abroad communication secretary state charge zelaya government opinion express revolution represent wish majority nicaraguan people prove beyond doubt fact since complete overthrow madriz government occupation capital force revolution faction unite maintain public order result discussion agent government send managua request provisional government comprehensive plan make future welfare nicaragua include rehabilitation public credit moderation conciliatory spirit show various faction give ground confident hope nicaragua soon take rightful place among progressive country world gratify exceedingly announce argentine republic month ago place american manufacturer contract construction two certain additional naval equipment extent work importance argentine republic make place bid earnest friendly feel toward united state new tariff law section 2 respect maximum minimum tariff united state provision come effect april 1 1910 impose upon president responsibility determine prior date whether undue discrimination exist united state product country world sustain commercial relation case several country instance apparent undue discrimination american commerce find exist discrimination remove negotiation prior april 1 1910 maximum tariff come operation respect importation country whose favor proclamation apply minimum tariff issue president one hundred proclamation issue series proclamation embrace entire commercial world hence minimum tariff united state give universal application thus testify satisfactory character trade relation foreign country mark advantage commerce united state obtain tariff settlement foreign nation fully cognizant fact section 2 tariff act president require whenever satisfied treatment accord product united state entitle benefit minimum tariff united state withdraw benefit proclamation give ninety day notice maximum tariff apply dutiable product enter united state general operation section tariff law thus far proved guaranty continue commercial peace although unfortunately instance foreign government deal arbitrarily american interest within jurisdiction manner injurious inequitable policy broad close trade relation dominion canada initiate adjustment maximum minimum provision tariff act august 1909 prove mutually beneficial justifies effort readjustment commercial relation two country commerce may follow channel natural contiguous country commensurate steady expansion trade industry side boundary line reciprocation part dominion government sentiment express government follow october suggestion would glad negotiation temporarily suspend summer resume accordance suggestion secretary state direction dispatch two representative department state special commissioner ottawa confer representative dominion government authorize take step formulate reciprocal trade agreement might necessary receive consider proposition dominion government might care submit pursuant instruction issue conference hold commissioner official dominion government ottawa early part november negotiation conduct side spirit mutual accommodation discussion common commercial interest two country object satisfactory basis trade arrangement offer prospect freer interchange product united state canada conference adjourn resume washington january hop aspiration government mutually advantageous measure reciprocity realize tariff negotiation vital commerce industry duty jealously guard equitable treatment product capital industry abroad devolve upon department state argentine contract like subsequent important one argentine railway equipment cuban government vessel secure manufacturer largely good office department state effort department secure citizen united state equal opportunity market world expand american commerce successful volume business obtain new field competition upon new line already great congress urge continue support department state endeavor trade expansion foreign trade merit best support government earnest endeavor manufacturer merchant already case need foreign market certain soon become dependent therefore time secure strong position field leave subject without emphasize necessity legislation make possible convenient establishment american bank branch american bank foreign country mean foreign trade favorably finance necessary credit arrange proper avail make commercial opportunity foreign country especially latin america another instrumentality indispensable unhampered natural development american commerce merchant marine maritime commercial nation recognize importance factor great commercial nation competitor jealously foster merchant marine perhaps nowhere need rapid direct mail passenger freight communication quite urgent united state latin america secure quarter world immediate benefit friendship commerce would flow establishment direct line communication country latin america adequate meet requirement rapidly increase appreciation reciprocal dependence country western hemisphere upon product sympathy assistance allude important subject last annual message often need recapitulate reason recommendation unless prompt action take completion panama canal find great commercial nation unable avail international maritime business great improvement mean world commercial intercourse quite aside commercial aspect unless create merchant marine find seafaring population necessary natural naval reserve could find case war transport subsidiary vessel without naval fleet arm without body many reason strongly urge upon congress passage measure mail subsidy subvention adequate guarantee establishment rapid development american merchant marine restoration american flag ancient place upon sea course aid ought give condition publicity beneficiary business account would show aid receive needed maintain trade properly use purpose increase international intercourse become incumbent upon repeat emphatically ever recommendation make inaugural address congress shall give court united state jurisdiction punish crime violation right alien secure treaty united state order general government unite state shall able call upon friendly nation redeem solemn promise treaty secure citizens subject nation resident united state freedom violence due process law respect life liberty property also strongly commend favorable action congress enactment law apply diplomatic consular service principle embody section 1753 revised statute united state civil service act january 16 1883 executive order june 27 1906 november 26 1909 excellent result attend partial application civil service principle diplomatic consular service earnest benefit wrought wider permanent extension principle branch foreign service mark improvement consular service four year since principle civil service act apply service limited way good result already noticeable similar application civil service principle diplomatic service year ago convince enactment law general principle exist executive regulation could fail effect improvement branch foreign service offering would assurance permanency tenure promotion merit inducement entry capable young men service incentive already put forth best effort attain maintain degree efficiency interest international relation commerce demand many year past appeal make time time congress favor government ownership embassy legation premise abroad argument favor ownership many oft repeat well know congress acquisition government suitable residence office diplomatic officer especially capital state europe important necessary improve diplomatic service hesitation urge upon congress passage measure similar favorably report house committee foreign affair february 14 1910 report 438 would authorize gradual annual acquisition premise diplomatic use work diplomatic service devoid partisanship importance appeal every american citizen receive generous consideration congress every effort make department chief reduce estimate cost department ensue fiscal year end june 30 1912 say order congress may understand estimate thus make present small sum maintain department bureaus office government meet obligation exist law cut estimate would result embarrass executive branch government performance duty remark apply river harbor estimate except expense maintenance meeting obligation authorize contract apply public building bill navy build program course congress could withhold part estimate without interfere discharge ordinary obligation government performance function department bureaus office final estimate year end june 30 1912 sent treasury november 29 year ordinary expense government include public building river harbor navy build program amount less appropriation fiscal year end june 30 1911 less total estimate include supplemental estimate submit congress treasury year 1911 less original estimate submit treasury 1911 figure include appropriation panama canal policy respect ought spend much year economically effectively expend order complete canal promptly possible therefore ordinary motive cut expense government apply appropriation purpose note estimate panama canal ensue year million dollar increase twenty million amount appropriate year difference due fact estimate 1912 include something nineteen million fortification canal estimate expenditure treasury estimate receipt next year make probable surplus ordinary receipt ordinary expenditure table show detail estimate comparison refer follow treasury department one original department government change monetary system make time time creation national bank think necessary organize new bureau division add somewhat haphazard way result duplication duty might well end lack system economic coordination attract attention head department give time last two year aid expert consult bureau chiefs reformation abolish four hundred place civil service without injure efficiency merely illustrate character reform possible shall comment specific change make ought make legislative aid audit system vogue old government method use antiquate six auditor seven assistant auditor nine department present system function auditor department exercise determine account present disburse officer object expenditure within law appropriation make congress purpose face calculation account correct examine merit transaction determine reasonableness price pay article purchase furnish substantial check upon disburse officer head department bureaus sufficient promptness enable government recoup full measure unlawful expenditure careful plan devise presented congress recommendation force auditor employee greatly reduce thereby effect substantial economy economy small compare large economy effect consolidation change method possibility regard show reduction expense importance method efficiency office auditor post office department without slight degree impair comprehensiveness efficiency work cut expense office year collection revenue especially custom revenue great improvement effect improvement contemplate detection fraud weigh sugar upwards recover beneficiary fraud entirely new system free possibility abuse devise department perfect method collect duty port new york save government upwards ten eleven million dollar spirit change reform infuse custom office country method use many place archaic would seem reason surveyor port really act collector subordinate collector less salary directly control little reason existence naval officer kind local auditor work mainly examination account conduct washington result great security government naval officer various port presidential appointee many draw good salary office abolish reduce force make part central audit system entirely many custom district many custom collector district consolidated collector charge draw good salary many proportion collection make abolished treated mere branch office accordance plan treasury department present consideration congress illustration cost collect 1 revenue typical small port like port york port annapolis cost collect 1 revenue natchez alexandria essential prevent smuggle custom district increase number violation custom law quite easily prevent much economically service use special agent travel force treasury department reorganization special custom agent perfected view retain special knowledge custom law regulation usual method evasion improvement danger government recommend consolidation abolition custom district investigation appraise system vogue new york city show sacrifice interest government course remedied reorganization employment competent expert prosecution institute grow frauds discover await hear federal court great improvement make respect mint assay office diminish appropriation ask whose continuance unnecessary year estimate expense less two year ago opportunity save abolition several mint assay office become unnecessary modern machinery instal good work do appropriation consequently diminish bureau engrave print great economy effect useless division abolish result save year total expense bureau despite increased business treasurer office division public money part cover function also true office register division loan currency plan elimination duplication office present congress office comptroller currency one important preservation proper bank method national banking system united state present comptroller impressed subordinate necessity conduct investigation establish principle every bank failure unnecessary proper inspection notice threaten condition responsible director officer prevent public building still suffer method appropriation much criticize connection river harbor method devise control supply public building harmonize actual needs government come actual construction past little study building plan sit view actual needs government building effect warehouse economical handle transportation thousand ton mail make monumental structure often locate far convenient economical spot actual construction building closer scrutiny method employed government architect architects employed government result decided economy hop time give opportunity thorough reorganization last public building bill carry authorization ultimate expenditure approve many good feature contain approve river harbor bill draw upon principle ought abandon seem wise method prepare public building bill would preparation report commission government expert whose duty report congress government need way construction public building every part country army engineer make report reference utility propose improvement river harbor add function recommend army engineer include recommendation relative importance various project find worthy approval execution treasury department one income government collect expenditure disburse seem proper place consider operation exist tariff bill become law august 6 1909 measure exist tariff bill never exceed custom bill history country corporation excise tax proportioned net income every business corporation country work well tax easily collect prompt payment indicate incidence tax heavy offer moreover opportunity knowledge government general condition business corporation mean far important part business country original act provision make publication return provision subsequently amend congress matter leave regulation president direct issue need regulation make possible public generally know examination record return corporation stock list public stock exchange offer sale general public advertisement otherwise returns corporation whose stock list offered sale direct open inspection examination creditor stockholder corporation whose record seek return corporation subject inspection government officer examination court return make corporation relevant competent evidence schedule rate duty payne tariff act subject great deal criticism unfounded much misrepresentation act adopt pursuance declaration party responsible custom bill tariff protection home industry measure protection difference cost produce import article abroad cost produce home together addition difference might give reasonable profit home producer chief criticism tariff charge respect number schedule declare measure follow high difference retain inserted way undue discrimination favor certain industry manufacture little criticism tariff direct protective principle state time tariff prepare undoubtedly short make impossible congress expert acquire information necessary strictly conform declared measure order avoid criticism kind future nearly conform party promise congress last session make provision request continuance board create authority maximum minimum clause tariff bill authorize board expend money appropriate direction ascertainment cost production home abroad various article include schedule tariff tariff board thus appoint authorized diligent prepare necessary investigation hope advocate use board tariff purpose question rate duty impose shall become business question less political question ascertain expert long train accurate knowledge halt business shock business due announcement new tariff bill prepare put operation avoid treat schedule one one occasion shall arise change rate report upon schedule tariff board competent make report likely board able make report present session congress schedule proper examination involve enormous amount detail great deal care hope able open new congress least session congress bring attention fact regard schedule present tariff may prove need amendment carry plan course involve full cooperation congress limit consideration tariff matter one schedule time propose amendment tariff bill involve complete consideration schedule another revision shall repeat evil business country time past suffer grievously stagnation uncertainty pending resettlement law affect business directly indirectly much emphasize importance benefit plan propose treatment tariff facilitate removal noteworthy defect important law without disturbance business prosperity even important happiness comfort people elimination instance injustice tariff inquiry member tariff board make last summer method pursue government reference fix tariff determination effect upon trade show government maintain office bureau officer employee make life work study tariff matter foreign home price cost article import effect tariff upon trade whenever change think necessary tariff law office source reliable information propriety change effect strongly convince need government office secure make tariff board already appoint permanent tariff commission duty power emolument may seem wise congress give propose enlarge board three five present number convenient know increase two member would objectionable whether protective policy continue degree protection accord home industry question people must decide chosen representative whatever policy adopt clear necessary legislation base impartial thorough continuous study fact method impartial scientific study expert preliminary legislation hope see ultimately adopt fixed national policy respect tariff river harbor waterways public building also pursue nonpartisan monetary commission congress exhaustive valuable study banking currency system foreign country complete comparison business method institution powerful successful commercial rival sure immense value urge upon congress importance nonpartisan disinterested study consideration banking currency system idle dream commercial expansion development national trade scale measure matchless opportunity unless lay solid foundation sound endure banking currency system problem partisan sectional national war department within jurisdiction management army connection therewith coast defense government dependency philippines porto rico recommendation plan improvement harbor waterways execution adopt virtue executive order supervision construction panama canal army united state small body compare total number people preservation whose peace good order last resource army number men engage coast artillery detail management use gun fort battery protect coast rest army mobile part national force divide 31 regiment infantry include porto rican regiment 15 regiment cavalry 6 regiment field artillery corp ordnance engineer signal quartermaster department commissary department medical corp general plan army united state peace skeleton organization excess train officer thus capable rapid enlargement enlistment supplement emergency national militia volunteer force measure plan adopt large proportion cavalry field artillery compare infantry present army peace basis infantry force train six month cavalry light artillery force one two year hence importance ready large number skilled soldier militia system congress constitution authorize provide develop dick law discipline tactic drill rank uniform various branch militia assimilate far possible regular army militia law constitution provide governor state appoint militia officer appropriation congress state induce comply rule assimilation regular army militia force efficiency differs different state could incorporate single command regular army time year receive benefit drill maneuver condition approximate actual military service supervision regular army officer army united state addition regular force militia force may summon defense nation president also volunteer force make large part army civil war war long continuance would become important constituent act date civil war know volunteer act make provision enlistment volunteer army united state time war find defective philippine war special act organization volunteer regiment take part war adopt much well adapted necessity case pending congress bill repeal present volunteer act make provision organization volunteer force time war admirably adapt meet exigency would present passage bill would entail dollar expense upon government time future war come war come method therein direct accordance best military judgment ought act would prevent necessity discussion new legislation delay incident consideration adoption earnestly urge passage volunteer bill recommend congress establish commission determine early practicable comprehensive policy organization mobilization administration regular army organize militia volunteer force event war one great difficulty prompt organization mobilization militia volunteer force absence competent officer rank captain teach new army unit company business soldier take care render effective service need army officer supply provision law authorize appointment great number army officer need supply command regular army troop enlist service enough regular army officer command troop enlist congress authorize department follow example congress exercise authority confer detail army officer duty command troop instance large number army officer assign duty military college college military training give large number officer assign general staff duty various place army officer legally assign take away regiment company order militia state properly drill make like regular army regular army officer detail assist state supervision state militia impossible unless provision make congress considerable increase number company field officer army bill pending congress purpose earnestly hope interest proper development republican army army small time peace possible prompt adequate enlargement time war shall become possible law united state bill strong argument base ground quite similar increase officer bill bill increase sixty army engineer army engineer largely employed expenditure money appropriate improvement river harbor construction panama canal addition military duty include build fortification coast dependency require many engineer army public work civil military therefore much delay earnestly recommend passage bill pass house last session pending senate direct estimate appropriation improvement coast defense united state reduce minimum completion need fortification corregidor philippine island pearl harbor hawaiian island expedite much possible proposition make olongapo subig bay naval base pacific give treat merely supply station fortification philippines largely confine corregidor island adjacent island command entrance manila bay render impregnable land sea attack pacific naval base transfer pearl harbor hawaiian islands necessitates heavy fortification harbor establishment important military station near honolulu urge estimate make war department purpose approved congressional appropriation last summer request secretary war visit philippine island describe trip report find island state tranquillity grow prosperity due largely change tariff law open market america product philippine open philippine market american manufacture rapid increase trade two country show follow table exclusive gold silver late monthly return show export year end august 1910 united state 49 per cent total united state 34 per cent total year end august 1909 exclusive gold silver government supply late monthly return show import year end august 1910 united state 30 per cent total united state 18 per cent total year end august 1909 year one prosperity progress porto rico certain political change embody bill provide civil government porto rico purpose pass house representative june 15 1910 last session congress await action senate importance feature bill relate public health sanitation overestimate removal politics judiciary provide appointment municipal judge excellent recommend step take provide therein appointment secretary marshal court provision bill partially elective senate number elective member progressively increase doubtful wisdom composition senate provide bill introduce house seem well meet condition exist porto rico important measure recommend early consideration passage already express opinion congress respect character river harbor bill enact law exercise much power could law direct chief engineer make report congress conform need committee frame bill determine propose improvement important ought complete first promptly instance colonel goethals army engineer officer charge work panama canal make visit isthmus inspect work do consult ground certain problem likely arise near future progress work satisfactory unexpected obstacle present canal complete well within time fix colonel goethals wit january 1 1915 within estimate cost press report reach united state time time give account slide earth large yardage culebra cut elsewhere along line might infer work much retarded time completion necessarily postpone report doctor hayes geological survey send within last month isthmus make investigation show section canal zone compose sedimentary rock rather weak structure subject almost immediate disintegration expose air subsequent deposition sediment igneous rock hard durable thrust cold time intrusion unite indifferently sedimentary rock contact result condition cut deepened cause unbalanced pressure slide side cut occurred part due flow surface soil decompose sedimentary rock upon inclined surface underlie undecomposed rock part crush structurally weak bed excessive pressure slide occur one side cut distance 4 5 mile character understand allowance make calculation yardage amount slide remove great slope give bank many place order prevent recurrence allowance exceed ten million yard consider number yard remove cut average month year total remain excavated include slide yard see addition excavation offer great reason delay feature material excavate cut seriously delay obstruct construction canal lock type increase excavation due slide cut make 85 foot deep canal would certainly great delay completion time beyond patience american people among question arise present solution whether canal shall fortify already state congress strongly favor fortification reiterate opinion ask consideration subject light report already make competent board discretion believe modern fortification necessary adequate protection police canal duty construct build canal property convention indicate desire indeed undertaken universal equal use also well know one chief object construction canal increase military effectiveness navy failure fortify canal would make attainment aim depend upon mere moral obligation whole international public obligation would powerless enforce could never way absolutely safeguard desperate irresponsible enemy another question arise consideration possible legislation question toll canal question necessarily affect probable tonnage go canal matter estimate one government commission 1900 investigated question make report conclude total tonnage vessel employ commerce could use isthmian canal 1914 would amount ton net register traffic would increase per cent per decade probable commerce include total would abandon route present follow make use new canal might take time perhaps two year readjust trade reference new condition canal would establish include moreover tonnage war vessel although inferred vessel would make considerable use canal matter toll reach conclusion dollar net ton would drive business away canal high rate would determine toll certainly ought insist amount enough pay interest investment unite state make construction canal ought first benefit derive united state expenditure measure solely return upon investment construction might well leave private enterprise adequate return upon money invest could expect immediately near future peculiar political advantage derive construction canal fell government advance money perform work addition benefit naval strength canal greatly increase trade facility unite state undoubtedly cheapen rate transportation freight eastern western seaboard world canal anxious world trade shall use must recognize active competitor suez canal mean carriage two ocean tehuantepec railroad railroad freight route central america case question whether panama canal use tonnage increase determine mainly charge use impression toll ought exceed 1 per net ton january 1 1911 toll suez canal 7 franc 25 centime net ton suez canal measurement modification danube measurement dollar ton secure figure gross income panama canal nearly cost maintenance operation estimate exceed ultimately course normal increase trade hope income approximate interest charge upon investment inquiry already make chief engineer canal show present consideration question necessary order commerce world may time adjust new condition result open new highway whole recommend within certain limit president authorize fix toll canal adjust seem commercial necessity next question arise maintenance management general control canal completion premise essential part navy establishment coal oil ship supply dry dock repair shop conveniently locate reference naval vessel pass canal government naval purpose undertake furnish convenience navy convenience equally required commercial vessel would seem strong reason government take include management furnish navy public facility sale coal oil ship supply maintenance lock canal enormous size sparsely populated country tropic danger disease always present require large complete organization full police power exercise utmost care visitor canal impressed wonderful freedom tropical disease isthmus must mislead constant vigilance need preserve condition vast machinery lock necessary amount dredge preservation bank canal slide operation maintenance equipment railway require force course liken way present organization construction skilled body men keep state usefulness great instrument commerce organization make easy include within function furnish fuel repair supply facility trade world essential isthmus panama port say suez depot coal supply commercial necessity within thousand mile isthmus another important reason ancillary duty may well undertake government opportunity discrimination patron canal offered private concession grant furnish facility nothing would create great prejudice canal suspicion certain line traffic favor furnish supply supply control large interest might motive increase cost use canal may add terminus ample enough permit full competition respect furnish facility necessity world trade even wise invite competition grant concession would necessarily circumstance take appearance privilege monopoly close reference canal without suggest wise amendment interstate commerce law provision prohibit interstate commerce railroad own control ship engage trade panama canal believe provision may need save people united state benefit competition trade eastern western seaboard canal constructed secure duty department justice greatly increase legislation congress enact interest general welfare people extend activity avenues plainly within constitutional jurisdiction think wise necessary general government heretofore occupy glad say appropriation make department improved organization vast amount litigation civil criminal character dispose current year explain necessity slightly increase estimate expense department report show recovery make behalf government duty fraudulently withhold public land improperly patent fine penalty trespass prosecution conviction antitrust law prosecution law invite especial attention prosecution federal law bucket shop schemes defraud use mail essential part fraudulent conspiracy prosecution save ignorant weak member public save hundred million dollar violation antitrust law present perhaps important litigation department number case file show activity government enforce statute special message last year bring attention congress propriety wisdom enact general law provide incorporation industrial company engage interstate commerce renew recommendation behalf invite attention congress great number claim instance congress consider court claim decide valid claim government delay occur payment money due claim injures reputation government honest debtor earnestly recommend claim come congress judgment approval court claim promptly pay one great cry need united state cheapen cost litigation simplify judicial procedure expedite final judgment present condition poor man woeful disadavantage legal contest corporation rich opponent necessity reform exist united state court state court order bring however naturally fall general government example furnish model state legislative commission appoint joint resolution congress revise procedure united state court yet make report law supreme court unite state power give duty frame equity rule procedure obtain federal court first instance view heavy burden press litigation court carry one two member incapacitate ill health able take problem improve equity procedure practically remain since organization court 1789 reasonable expect vacancy upon court fill take question cheapen simplifying procedure equity court unite state equity business much important federal court may add much expensive strongly convince best method improve judicial procedure law empower supreme court medium rule court equity way do england thoroughly do simplicity expedition procedure english court today make model reform system several lord chancellor england chief justice leave lasting impress upon history country constructive ability propose secure passage remedial legislation effect law reform conceive high duty supreme court could perform lead way simplification procedure united state court man ought matter right review case supreme court satisfy one hearing court first instance one review court appeal proper chief usefulness supreme court especially supreme court unite state case come expound law especially fundamental law constitution furnish precedent inferior court future litigation executive officer construction statutes performance legal duty therefore provision review case supreme court cast upon court duty pass question evidence construction particular form instrument like indictment will contract decision general application importance merely clog burden court render difficult high function make important part framework government supreme court carry unnecessary burden appeal kind earnestly urge remove statute respect review supreme court unite state decision court appeal district columbia ought amend place court position respect review decision various united state circuit court appeal act march 2 1907 authorize appeal government certain judgment criminal case defendant put jeopardy within mean constitution amend appeal take circuit court appeal instead supreme court case except involve construction constitution constitutionality statute power supreme court review certiorari exercise court determination several circuit court appeal appeal copyright case reach final judgment court appeal instead supreme court decision court appeal make final also case wherein jurisdiction rest diverse citizenship existence federal question reviewable supreme court case involve one thousand dollar appeal unite state court porto rico run circuit court appeal third circuit instead supreme court suggest change would advise relieve supreme court consideration 100 case annually american bar association question reduce burden litigation involve reversal review new trial frivolous appeal habeas corpus criminal case recommendation embody bill pending congress recommendation radical accomplish much adopt law earnestly recommend passage bill embody wish renew urgent recommendation make last annual message favor passage law shall regulate issue injunction equity without notice accordance best practice vogue court united state regard especial importance first promise second deprive complain certain alleged abuse improper issue injunction without notice real ground amendment take away semblance support extremely radical legislation propose pernicious adopt sap foundation judicial power legalize cruel social instrument secondary boycott recommend congress passage bill pending increase salaries federal judge chief justice unite state shall receive associate justice supreme court circuit judge constitute circuit court appeal shall receive district judge judge exercise wise jurisdiction duty require profound knowledge law great ability dispatch business care delicacy exercise jurisdiction avoid conflict whenever possible federal state court position occupy ought fill men show great ability professional work bar poor economy possible government pay salary low judicial service able command best talent legal profession every part country cost live especially large city even salary fix propose bill enable incumbent accumulate little anything support family death nothing important preservation country beloved institution maintenance independence judiciary next life tenure adequate salary material contribution maintenance independence part judge last session congress make provision establishment saving bank department government general control trustees consist secretary treasury system could begin city town enlarge cover within operation many city town large part country seem wise initiation establishment system require great deal study part expert treasury department system devise believed economical simpler operation similar system abroad arrangement perfect saving bank open city towns 1st january gradual extension benefit plan rest country say department great business department glad note fact present management principle business economy efficiency apply many year deficit operation department meet appropriation treasury appropriation estimate last year treasury receipt department glad record fact estimate save returned treasury personal effort secure effective cooperation thousand postmaster postal officer throughout country carry plan reorganization retrenchment result able make estimate expense present year low keep within amount postal service expect earn gratify report reduction deficit accomplish without curtailment postal facility contrary service greatly extend year branch principle recommend sought enforce respect appointment appointee render good service reappointed greatly strengthen interest postmaster throughout country maintain efficiency economy office believe generally would secure tenure upon recommendation include classified service assistant postmaster believe give secure tenure important subordinate postmaster add much efficiency office economical administration large number postmaster classify service think would wise put classified service first second third class postmaster logical classify postmaster reason invariably small postmaster necessarily men must combine business postmastership whereas first second third class postmaster pay sufficient amount justify requirement shall business shall devote attention duty classify first second third class postmaster would require passage act change method appointment take away necessity advice consent senate aware invite senate concession respect quasi executive power considerable believe interest good administration efficiency service make change would take postmaster politics would relieve congressman burden necessity make recommendation place responsibility must irksome create nothing trouble would result secure postmaster great attention business great fidelity consequently great economy efficiency conduct unrestricted manner frank privilege use several branch federal service congress lay open serious abuse fact clearly establish investigation recently institute department impossible without good control frank determine exact expense government practice doubt annually reach million believe many abuse frank system could prevent consequently mark economy effect supplying agency postal service special official envelope stamp free mail government envelop stamp issue requisition various branch federal service require record keep official stamp supply enable department maintain proper postage account cover entire volume free government mail first step direction reform special stamp stamp envelope provide use instead frank free transmission official mail result business new postal saving system properly record issuance stamp envelope accurate record keep cost government handle postal saving mail certain become important item expense one separately determine keep plan hop congress authorize substitution special official stamp stamp envelope various form frank use carry free postage vast volume departmental congressional mail matter past year method account similar employ progressive business establishment introduce postal service nothing impede department plan regard impossibility determine exactness far various expense postal service increase present unrestricted use frank privilege believe adoption exact method deal problem propose prove tremendous advantage work place postal service strictly businesslike basis last annual message invite attention congress inadequacy postal rate impose upon mail matter far include magazine show figure prepared expert department government render service magazine cost many million excess compensation pay answer attempted representative magazine reply file answer department utter inadequacy answer consider light reply department think must appeal person whether answer could say behalf magazine another question agree question one fact insist fact expert department show furnish owner magazine service worth million pay justice require rate increased increase receipt department result change may devote increase usefulness department establish parcel post reduce cost postage one cent say fair adjustment might make advertise part magazine charge different high rate reading matter would relieve many useful magazine circulate profit would shut use mail prohibitory rate respect parcel post respectfully recommend adoption rout 11 pound international limit make limit carriage post view general extension income permit postal saving bank shall fully establish argument make parcel post make postal saving bank introducing government business ought conduct private person paternalism department great plant great organization reach remote hamlet united state machinery able great many thing economically new organization necessary would impossible without extravagant expenditure reason postal saving bank carry small additional cost possible incorporate inconsiderable expense parcel post system general parcel post involve much great outlay last annual report secretary navy annual message attention call new detail officer navy department officer flag rank assign duty aide secretary respect naval operation personnel inspection material change substantial compliance recommendation commission naval reorganization head justice moody submit president roosevelt february 26 1909 advice committee line officer secretary able bring proper coordination branch naval department great military efficiency secretary navy recommend new organization recognize legislation thus make permanent concur recommendation secretary view conclusion recent court inquiry certain phase marine corps administration recommend commandant marine corp appoint four year term officer adjutant inspector department detail line also ask legislation improve condition exist personnel officer navy particularly regard age experience flag officer captain point essential high efficiency navy age officer reduce flag officer particularly gain proper experience flag officer order enable properly command fleet concur secretary recommendation commend attention report secretary change system cost accounting also history naval supply fund present condition exist regard matter previous practice seem erroneous construction law supply fund navy increase something system accounting introduce prevented striking proper balance knowledge exact cost maintain naval establishment system abandon naval supply account establish law july 1 1910 naval supply fund deposit treasury credit department secretary recommend naval supply account make permanent law naval supply fund cover treasury unnecessary ask legislative authority sum cover treasury really reduction record naval cost year estimate navy department less appropriation purpose last year include building program amount submit consideration last year merely carry plan build two battleship year need auxiliary vessel earnestly hope program adopt secretary navy give personal examination every studied us reference necessity fleet fleet considerably less half size british navy shipyard double number several shipyard expensively equip modern machinery investigation secretary navy believe entirely useless naval purpose ask authority abandon certain move machinery place make use make recommendation secretary follow directly along progressive line adopt great commercial manufacturing consolidation country dismantle unnecessary inadequate plant discontinue existence demonstrate unprofitable continue maintenance expense commensurate product secretary point important naval base west indie guantanamo southeastern part cuba geographical situation admirably adapt protect commercial path panama canal show expenditure less half million dollar machinery shall take create naval station guantanamo sufficient size equipment serve purpose emergency naval base earnestly join recommendation give authority ask quite aware action likely arouse local opposition conceive axiomatic legislating interest navy general protection country navy mere local pride pecuniary interest establishment station ought play part recommendation secretary base upon judgment impartial naval officer entirely uninfluenced geographical sectional consideration unite secretary recommendation appropriation make construct suitable crypt annapolis custody remain john paul jones complete success country arctic exploration remain unnoticed century friendly rivalry field effort foremost nation brave accomplish men expedition unknown north encourage enlightened government deserve honor grant dare men conduct unparalleled accomplishment american reach north pole april 6 1909 approve critical examination expert scientist add distinction navy belongs reflect credit upon country unique success receive generous acknowledgment scientific body institution learn europe america recommend fit recognition congress great achievement robert edwin peary secretary interior recommend change law respect procedure adjudicate claim land appeal take decision department court appeal district columbia judicial consideration right claimant change find complete analogy present provision appeal decision commissioner patent judgment court case would decisive value land claimant generally department interior administration law would enable claimant bring court final consideration issue title government land would think obviate good deal subsequent litigation arise western court bill pending believe house favorably report committee public land recommend enactment one difficulties interior department land office delay attendant upon consideration land office secretary interior claim patent public land individual glad say recent appropriation congress earnest effort secretary subordinate arrears dispose work department bring nearly date respect pending business ever history economy effect possible without legislative assistance show reduced estimate expense department current fiscal year year come subject conservation public domain command attention people within last two three year need radical reform method dispose really agricultural land present law work well enlarge homestead law encourage successful farm land semiarid region total sum already accumulate fund provide act reclamation arid land allot various project thirty congress last session provide issue certificate indebtedness exceed twenty million dollar redeem reclamation fund proceeds land sold sufficient meantime accordance provision law appoint board army engineer examine project ascertain feasible worthy completion board make report upon subject shall transmit separate message within day september last conservation congress hold paul deliver address subject conservation far within jurisdiction possible action federal government address assemble official record statistic fact do behalf administration predecessor indicate legislative measure believe wise order secure best use public interest remain national domain address full discussion reason lead conclusion state purpose save official record comprehensive resume statistic fact gather difficulty address avoid repetition body message venture make address accompany appendix statistic correct november 15th last reason state conservation address recommend first limitation impose upon executive forbids reserve forest land oregon washington idaho montana colorado wyoming repeal second coal deposit government lease advertisement invite competitive bid term exceed fifty year minimum rental royalty upon coal mine readjust every ten twelve year condition maintenance secure proper mine assignment prevent combination monopolize control coal one district market think coal measure acres surface would large amount lease one lessee secretary interior think difficulty way lease public coal land objection set forth report force freely concede entirely approve stating length report objection order whole subject may present congress full consideration favor lease system recommend third law provide separation respect government phosphate land surface mineral right obtain coal land power lease land upon term limitation similar recommend coal lease add condition enable government regulate need prohibit export foreign country product fourth law allow prospector oil gas right prospect two year certain tract government land right evidence license shall pay small sum upon discovery lease may grant upon term secure minimum rental proper royalty government also conduct oil gas well accord best method husband supply oil district period lease long coal contain similar provision assignment prevent monopolistic combination fifth site directly lease federal government advertisement bidding exceed fifty year upon proper rental condition fix rate charge public unit electric power rental rate readjust equitably every ten year arbitration otherwise suitable provision assignment prevent monopolistic combination law shall provide upon application make authority state site situate may patent state condition state shall dispose term like describe shall enforce term upon failure comply condition site plant improvement site shall forfeit revert united state president give power declare forfeiture direct legal proceeding enforcement either method would think accomplish proper public purpose respect sit one promptly adopt earnestly urge upon congress session general conservation legislation character indicate adopt last session congress take useful proper step conservation allow executive withdrawal suspend action exist law respect much public domain think danger dispose coal land united state present law large quantity great call withdrawal present provision reasonably certain government receive real value land respect oil land phosphate land gas land united state respect coal land alaska exercise full power withdrawal hope action congress would follow promptly prevent tie resource country western less settle portion alaska mean stagnation retrogression question conservation partisan one sincerely hope even short time present session consideration may give question much discuss action may take upon reference government alaska nothing add recommendation make last message subject convince migratory character population unequal distribution smallness number new census show relation enormous expanse territory make altogether impracticable give people alaska may year hence power elect legislature govern immense territory relation little permanent far well development territory commit commission appoint executive limit legislative power sufficiently broad meet local need continue present insufficient government remedial power make popular government proper foundation upon rest suggestion appointment commission lead control government corporate selfish exploiting interest slightest foundation fact government work well philippine would work well alaska really interested proper development territory benefit people live benefit people united state support institution government ask recommend credit government extend aid construction railroad alaska ready great many million dollar already expend construction least two railroad law pass provide proper development resource alaska especially opening coal land believe capital already invest induce investment capital sufficient complete railroad build furnish cheap coal alaska whole pacific coast passage law permit leasing government coal land alaska public competition appointment commission government territory enable power meet local need lead improvement alaska development resource likely surprise country national park become extensive involve much detail action control seem ought legislation create bureau care control great natural wonder country surround territory include another national park refer grand canyon colorado uniform policy government matter grant pension gallant devote men fight save life nation perilous day great civil war always liberal character men rapidly pass away best obtainable official statistic show die rate something three thousand month view advance year rate must inevitably proportion rapidly increase man risk everything field battle save nation hour dire need owe debt compute begrudge parsimonious spirit actuate spirit soldier care exercise go absurd length distribute bounty government class person may late day mere mercenary motive seek obtain legal relation old veteran totter brink grave true spirit pension law find noble sentiment express lincoln last inaugural address wherein speak nation duty soldier struggle say care shall bear battle widow orphan report secretary agriculture invite attention stupendous value agricultural product country amount year amount large 1909 existence crop indicate good prospect business throughout country notable change well comment upon secretary fact south especially region boll weevil interfered growth cotton give attention cultivation corn cereal great diversification crop south ever great advantage section report contain interesting account activity department various bureau show closely agricultural progress country follow along line improvement recommend department publication result experiment station every state instruction give agricultural school aid federal government follow general curriculum urge head bureau chiefs department activity department greatly increase enactment recent legislation act act act act concern interstate shipment game department one scope whose action constantly widen therefore impossible exist legislation reduce cost estimate precede year interest review result examination make department statistic price show average since 1891 farm product increase value 72 per cent thing farmer buy use increase 12 per cent indication present condition favorable farm community already referred forest unite state extent urge removal limitation upon power executive reserve tract land six western state withdrawal purpose forbidden secretary agriculture give full description disastrous fire occur last summer national forest drought intense record history west introduce condition forest make fire almost inevitable locomotive spark negligent camper case incendiary furnish need immediate one time fire extend covered range hundred mile secretary estimate stand timber value 25 million dollar destroyed person employ forest service kill many injured regret say provision law expense hospital treatment interment could meet public fund red cross contribute thousand dollar remainder necessary expense make private contribution chiefly force forest service official recommend suitable legislation adopt enable secretary agriculture meet moral obligation government respect specific fund fighting fire exist discretion secretary case emergency apply fund control purpose extent nearly million dollar involve presentation deficiency estimate current fiscal year damage do therefore due lack appropriation congress available meet emergency difficulty fight lay remote point fire begin impossible road trail exist promptly reach proper protection necessitates secretary point expenditure good deal money development road trail forest establishment lookout station telephone connection place assistance secure amount reforestation show report forest service acre compare 150 million acre national forest seem small glad note regard secretary agriculture chief forest service look forward far great activity use available government land purpose progress make learn experiment best method reforest congress appeal secretary agriculture make appropriation need enlarge usefulness forest service regard hope congress approve adopt estimate secretary purpose secretary department commerce labor immediate supervision application merit system promotion large number employee discussion method promotion base actual experience commend attention congress take census proceed promptness efficiency secretary believe concur thorough accurate census heretofore take perfect motive prompt men false civic pride induce pad census return order increase population particular city strong enough lead fraud respect city country direct proceed vigor possible responsible fraud discover interfere accuracy census high importance official inquiry sort embarrass fraudulent conspiracy private local interest reorganization board effect considerable save administration estimate service present year less preceding year addition three tender appropriation make build present need service secretary ask large sum addition light aid commerce sea include number alaska trade along coast become important respectfully urge necessity follow recommendation commissioner corporation complete first part report lumber industry united state part find existence trust combination manufacture lumber commissioner find however condition ownership stand timber united state government timber call serious attention direct investigation make commissioner covered area contain 80 per cent privately own timber country report show timber area own 200 individual corporation 14 per cent own 3 corporation extensive interownership stock well circumstance point friendly relation among majority timber relationship might lead combination maintenance price would detrimental public interest would create necessity remove tariff obstacle free importation lumber country glad note secretary report satisfactory progress make respect preservation seal pribiloff island active step take department state secure arrangement shall protect pribiloff herd loss due pelagic seal meantime government secure seal pelt bachelor seal kill interfere maintenance herd sale next month expect realize sum largely excess rental pay lessee government previous contract coast geodetic survey engage survey coast philippine archipelago heavy work extend character coast line islands glad note half need survey complete large part coast line archipelago unsurveyed make navigation neighborhood number islands especially east side particularly dangerous commissioner labor actively engage compose difference employer employee engage interstate transportation erdman act jointly chairman interstate commerce commission speak high term success two officer conciliation settlement controversy interposition would result disastrously interest invite attention serious injury cause engaged manufacture phosphorous match diseases incident frightful match make material entirely innocuous believe injurious manufacture could discourage ought discourage imposition heavy federal tax recommend adoption method stamp serious abuse since 1868 declare purpose government favor movement day provision law none employee employ behalf government work longer eight hour every first declaration view accompany penal clause provision enforcement though president grant proclamation twice attempt give sanction require officer government carry purpose framer law ultimately defeat decision supreme court hold statute drawn merely direction government agent invalidate contract make behalf government provide contract labor day long hour eight thereafter 1892 present law pass provide service employment laborer mechanic may hereafter employed government united state district columbia contractor subcontractor public work united state say district columbia hereby restrict eight hour one calendar day law construe limit application requirement directly employed government employ upon public work situate upon land own united state construction prevent application government battle ship vessel build private shipyard heavy gun armor plate contract make private establishment propose act provide laborer mechanic part work contemplate contract united state employ contractor subcontractor shall require permitted work eight hour day one calendar day seem past history government commit policy encourage limitation day work eight hour work construction initiate seem illogical maintain difference government work do government soil government work do private establishment work large dimension involve expenditure much labor considerable period private manufacturer may adjust establishment special term employment must make workman particular job require however every small contract manufacture enter government carry contractor men work eight hour would impose intolerable burden upon government limit source supply exclude altogether great majority would otherwise compete business propose act recognize exception make contract transportation land water transmission intelligence material article may usually buy open market whether make conform particular specification purchase supply government whether manufactured conform particular specification recommend instead enact propose bill mean clear definite might give construction embarrass public interest present act enlarge provide public work shall construe include building work upon public ground also ship armor large gun manufacture private yard factories one great difficulty enforce law application certain emergency become exceedingly oppressive great temptation subordinate official evade think would wiser allow president executive order declare emergency special instance limitation might apply case permit payment government extra compensation time work day excess eight hour may add suggestion respect legislation full concurrence commissioner labor view keen widespread interest felt united state system compensation industrial accident supplant present thoroughly unsatisfactory system employer liability subject importance congress already recognize appointment commission recommend international congress industrial insurance invite hold meeting 1913 washington appropriation make cover necessary expense organize carry meet immigration country increase year large part come immigrant station elli island city new york examination station method pursue satisfies difficult task perform commissioner force common sense strict fairness earnest desire enforce law equitably mercifully propose enlarge accommodation allow immigrant come port think wise policy objection contrary recommend construction additional building purpose facilitate closer careful examination immigrant come deprecate enlargement building force purpose permit examination immigrant per day examine understood immigrant take new york take steamship company thus give reason motive transferring immigrant port confident well distribute country congestion city new york make good condition immigrant increase usefulness new member community everything tend send immigrant west south rural life help country concur secretary recommendation amendments immigration law increase fine company violation regulation give great power commissioner enforce care part steamship company accept immigrant recommendation secretary urge law may amend discourage separation family think good one message last year recommend creation bureau health embrace government agency outside war navy department direct toward preservation public health exercise function germane subject renew recommendation greatly regret agitation favor bureau arouse counteragitation creation ground establishment bureau interest particular school medicine seem assumption wholly unwarranted responsible government trust secure personnel bureau appointment representative recognize school medicine management bureau entire freedom narrow prejudice regard act pass congress president authorize expend million dollar construct need work prevent injury land imperial valley overflow colorado river appoint competent engineer examine locality report plan construction do order complete work necessary secure consent mexico part work must construct mexican territory negotiation look secure authority quite near success southern pacific railroad company propose assist u work lend equipment transportation material cost price hop work may complete danger shall arise spring flood river work do supervision secretary interior consult engineer general marshall late chief engineer retire lead invite attention congress claim make southern pacific railroad company amount expend similar work relief call flood great emergency work inform undertaken request predecessor promise reimburse railroad company seem equity claim manifest question involve reasonable value work do recommend payment claim sum find government district columbia good government police force perhaps might give acquire military discipline bear appearance nevertheless efficient body men free graft discharge important duty capital nation effectively parks street city district generally keep clean excellent condition commissioner district affair well hand extravagant constantly look municipal improvement expensive must make modern grow city like washington true nevertheless fact washington govern congress citizen responsible direct control popular election district matter properly subject government inquiry criticism citizen manifest public press otherwise criticism command careful attention congress washington capital nation maintenance great beautiful city national control every lover country much heart present every way model respect economy expenditure sanitation tenement reform thorough public instruction proper regulation public utility sensible extended charity proper care criminal youth need reform healthful playground opportunity popular recreation beautiful system park glad think progress make direction venture point certain specific improvement toward end congress wisdom might adopt speak generally think ought concentration authority respect accomplishment purpose economy expenditure attention invite peculiar situation exist regard park washington park system proper comprise 343 different area office public building ground however nothing control rock creek park zoological park ground department agriculture botanic garden ground capitol public ground regularly open public ought part park system exclusive ground soldier home washington barrack public ground use park district columbia comprise acre ten different control official body division jurisdiction unfortunate large sum money spend yearly beautify keep good condition park ground connected government building institution work do general character work office public building ground provide congress special organization equipment lack ground office doubt work care improvement upon ground belong united state district columbia put far possible one responsible head result would great efficiency economy work great harmony development public park garden city congress last session provide two park call meridian hill montrose park district commissioner also include estimate sum use acquisition much need park land adjoin zoological park know klingle ford tract expense three park include estimate commissioner aggregate think would lead economy improvement care park public ground describe transferred office public building ground equipment well economically adapt carry public purpose respect improvement kind prevent encroachment upon park area recommend erection permanent structure land district columbia belong united state prohibit except specific authority congress already previous communication congress refer importance acquire district columbia least part territory side potomac virginia originally grant district state virginia retroceded act congress 1846 evident conference senator representative virginia hope regranting state land thus give back frank say far tract include town alexandria land remote potomac river would particular advantage bring within national control land lie along potomac river railroad bridge across potomac include arlington cemetery fort myer government experiment farm village rosslyn palisade potomac reach old district line intersect river sparsely settle could admirably utilize increase system park washington suggest virginia senator representative government acquire government park land describe great value present law virginia would work creation federal jurisdiction complete enough legislature virginia would probability enlarge jurisdiction enable congress include within control government district columbia actually make part washington earnestly recommend step take carry plan sufficient number corporation enjoy use public utility district columbia justify require enactment law provide supervision regulation public interest consistent vest right secure charter part corporation wit street railway put control interstate commerce commission commission recommend power take intimate broadly important duty make impossible give requisite supervision seem wise place general power supervision regulation district commissioner say present duty absorb would prevent proper discharge new function present jurisdiction bring closely frequently contact corporation make know detail corporation discharge duty law serve public interest commissioner peculiarly fit work hope congress impose upon intrust power respect corporation similar public utility commission new york city similar board massachusetts think present control school system washington commend efficient economical thorough instrument carry public instruction cost education district columbia excessive compare cost city similar size apparent result general satisfactory average cost per pupil per day washington 38 cent average cost 13 american city fairly comparable washington population standard education cent dollar spend salary school teacher officer district day instruction per pupil give 13 city refer dollar expend salary affords average day instruction current fiscal year estimate board education amount entire revenue locally collect district purpose may say seem lack definite plan expansion school system erection new building proper economy use building indicate necessity concentration control plan improvement expansion school system school board limitation expense district commissioner think would much well put complete control responsibility district commissioner provide board school visitor appoint supreme court district president different school district washington represent local need shall meet make recommendation commissioner superintendent education educator ability experience appointee responsible district commissioner among item permanent improvement appear district estimate 1912 one design substitute willow tree alley notorious record police health department playground build contain bath gymnasium helpful feature hope congress approve estimate fair washington seem beautiful street shade tree free expanse territory occupies would seem make slum insanitary congestion population center interior square poor criminal class well huddle together filth noisome surroundings primary importance nuclei disease suffer vice remove substitute small park breathe space model tenement sufficient air space meeting hygienic requirement estimate reform willow tree alley bad place city begin movement ought attract earnest attention support congress congress escape responsibility existence human pest hole estimate district columbia fiscal year 1912 provide repayment united state float debt remain june 30 1911 bond debt reduce 1912 amount district columbia excellent financial condition share indebtedness estimate less june 30 1912 compare june 30 1909 bond debt owe half half united state district extinguish 1924 float debt district probably long time revenue double last ten year population period increase per cent believe due economy practice district soon emerge debt even finance permanent improvement reasonable rapidity current revenue end recommend enactment law bill congress know judson bill insure gradual extinguishment district debt time require many permanent improvement need complete fitting capital city shall carry year year proper rate progress fund derive rapidly increase revenue renew recommendation claim depositor freedman bank recognize pay passage pending bill subject also renew recommendation step take look hold negro exposition celebration fiftieth anniversary issuing lincoln emancipation proclamation civil service commission continue useful duty year necessity maintenance provision civil service law never great officer responsible policy administration immediate personal assistant deputy include within classify service judgment public opinion advance point would support bill provide secure tenure efficiency purely administrative official entertain profound conviction would greatly aid efficient economical government well politics congress could enact bill provide executive shall power include classified service local office treasury department department justice department interior department department commerce labor appointment require confirmation senate upon classification advice consent senate shall cease required appointment certainty tenure dependent good service freedom necessity political activity local officer would induce become efficient public servant civil service law attempt solve problem proper selection enter service well system law promotion ought devise give select employee remain still question promote efficiency usefulness government bring careful comparison unit work do individual point necessity improvement regard improvement possible increase activity annual expenditures federal government rapid great time come check expansion government activity new direction test economy efficiency government carry responsibility rest upon head administration hold accountable public properly despite unselfish patriotic effort head department others charge responsibility government grown country conviction expense government great fundamental reason existence undetected waste duplication bad management lack prompt accurate information president private corporation vast business government transacts would competent specialist maintain close scrutiny comparative efficiency comparative cost division department business would know precisely duties activity bureau division order prevent overlap adequate machinery present exists supply president united state information respect business responsible first time history government congress last session supply need make appropriation enable president inquire economy efficiency executive department assemble organization purpose outset find comparison department bureaus impossible reason two department estimate expenditure display classify alike first step reduce common standard classification judgment work do complete foundation lay businesslike national budget comparison economy efficiency several bureau division conduct enable president head department detect waste eliminate duplication encourage intelligent effective civil servant whose effort often go unnoticed secure public service low possible cost committee appropriation congress diligently work reduce expense government find effort often block lack accurate information contain proper analysis requirement actual reasonable cost result inquiry enable executive communication congress give information congress entitle enable promote economy experience lead believe government method much criticise bad result bad result due lack zeal willingness part civil servant contrary believe fine spirit willingness work exist personnel properly encourage produce result equal secure best managed private enterprise handle government expenditure aim profit aim maximum public service minimum cost wish reduce expenditure government wish save money enable government go beneficial project debar take ought increase expenditure request head department appoint committee economy efficiency order secure full cooperation movement employee government later date shall send congress special message general subject urge continuance appropriation request fiscal year 1912 impossible proceed far investigation without perceive need suitable mean eliminate service superannuate do one two way either straight civil pension form contributory plan careful study experiment make foreign government show three serious objection civil pension payable public treasury may bring taxpayer administrative officer civil employee respectively civil pension bound become enormous continuous increase tax public exchequer demoralize service since make difficult dismissal incompetent employee partly earn pension disadvantageous main body employee since always take account fix salary survive remain service pensionable age receive value defer pay reason half century experience liberal pension system civil servant england succeed year ago system modify make virtually contributory plan provision refund theoretical contribution experience england country show neither contributory plan successful human nature make provision return contribution interest case death resignation pensionable age follow logical conclusion mean simple independent solution problem employee government compulsory saving arrangement employee set aside salary sum sufficient help liberal rate interest government purchase adequate annuity retirement accumulation inalienably claimable leaf service reach retirement age heirs case death principle upon gillett bill pending drawn gillett bill however go provide government shall contribute pension fund employee advance age personal contribution sufficient create annuity reach retirement age judgment provision amend annuity employee shall pay salary appropriate position vacate retirement difference annuity thus grant salary may use employment efficient clerk low grade bill thus amend recommend passage initiate valuable system ultimately result great save public expenditure time test benefit utility amendment interstate commerce law contain act approve june 18 1910 law enact contain feature recommend specifically denounce unlawful purchase one two parallel compete road stock subject restrain influence interstate commerce commission power corporation engage operate interstate railroad issue new stock bond authorize make temporary agreement railroad limit thirty day fix rate traffic place press consideration object upon congress session object first provision probably generally cover antitrust law second provision act refer consideration commission appoint executive report upon matter congress commission appoint engaged investigation consideration question submit law consist president arthur hadley yale university chairman frederick strauss frederick judson walter fisher meyer william griswold secretary third proposal lead much misconstruction object weaken effectiveness antitrust law dispose press consideration intend permit railroad company avoid useless rate cut mere temporary acquiescence rate service compete railroad obligation whatever maintain rate time protection railroad employee personal injury subject high importance demand continue attention two measure pending congress one supervision boiler enlargement dangerous clearance certainly measure ought adopt look prevention accident cause seem respect boiler bill might well draw require enforce penalty proper system inspection railway company would accomplish purpose entire removal outside clearance would attend enormous expense remedy must adopt act may 6 1910 interstate commerce commission authorize directed investigate accident report cause recommendation suggest commission request make special report injury outside clearance best method reduce interstate commerce commission recommend appropriation purpose enable enter upon valuation railroad always within jurisdiction commission requisite fund want statistic value railroad would valuable many purpose especially ultimately enact limitation upon power interstate railroad issue stock bond hope may think therefore order permit correct understanding fact would wise make reasonable appropriation enable interstate commerce commission proceed due dispatch valuation railroad doubt railroad company greatly facilitate valuation make much less costly time money suppose forge fraudulent hill lade purport issue cotton month since result loss several million dollar american foreign banking cotton interest foreign banker notify american banker october 31 1910 would accept bill exchange drawn bill lade cotton issue american railroad company unless american banker would guarantee integrity bill lade american banker rightly maintain justified give guarantee united state would country world whose bill discredit whose foreign trade carry guaranty foreign banker extend time guaranty demand december 31 1910 rely upon u protection meantime money furnish move cotton crop great value country protection people preservation credit foreign trade urge upon congress immediate enactment law one good faith advance money credit upon bill lade issued common carrier upon interstate foreign shipment hold carrier liable value good describe bill valuation specify bill least extent advance make reliance upon liability exists law many state see objection permit two class bill lade issue carrier shall absolutely liable suggest 2 respect carrier shall assume liability except good actually deliver agent issue bill carrier might permit make small separate specific charge addition rate transportation guarantee bill insurance premium loss add risk thus remove principal objection understand make railroad company imposition liability suggest ordinary transportation rate would compensate liability assume absolute guaranty accuracy bill lade recommend punishment fine imprisonment impose upon railroad agent shipper fraud misrepresentation connection issue bill lade issue upon interstate foreign shipment except recommend amendment law stand recommend amendment law word seem exist legislation reference regulation corporation restraint business reach point stop witness effect vigorous execution law statute book restrain abuse certainly exist rouse public demand reform test develop need legislation well good let u execute due reform movement present decade undoubtedly great improvement business method standard great body business men country responsible commercial development earnest desire obey law square conduct business requirement limitation doubtless make clearer decision supreme court case pending interest people country time activity government addition enforce earnestly impartially exist law direct economy administration enlargement opportunity foreign trade conservation improvement agricultural land natural resource building home industry strengthen confidence capital domestic investment