No nation has greater resources than ours, and I think it can be truthfully said that the citizens of no nation possess greater energy and industrial ability. In no nation are the fundamental business conditions sounder than in ours at this very moment; and it is foolish, when such is the case, for people to hoard money instead of keeping it in sound banks; for it is such hoarding that is the immediate occasion of money stringency. Moreover, as a rule, the business of our people is conducted with honesty and probity, and this applies alike to farms and factories, to railroads and banks, to all our legitimate commercial enterprises. In any large body of men, however, there are certain to be some who are dishonest, and if the conditions are such that these men prosper or commit their misdeeds with impunity, their example is a very evil thing for the community. Where these men are business men of great sagacity and of temperament both unscrupulous and reckless, and where the conditions are such that they act without supervision or control and at first without effective check from public opinion, they delude many innocent people into making investments or embarking in kinds of business that are really unsound. When the misdeeds of these successfully dishonest men are discovered, suffering comes not only upon them, but upon the innocent men whom they have misled. It is a painful awakening, whenever it occurs; and, naturally, when it does occur those who suffer are apt to forget that the longer it was deferred the more painful it would be. In the effort to punish the guilty it is both wise and proper to endeavor so far as possible to minimize the distress of those who have been misled by the guilty. Yet it is not possible to refrain because of such distress from striving to put an end to the misdeeds that are the ultimate causes of the suffering, and, as a means to this end, where possible to punish those responsible for them. There may be honest differences of opinion as to many governmental policies; but surely there can be no such differences as to the need of unflinching perseverance in the war against successful dishonesty. In my Message to the Congress on December 5, 1905, I said: 
"If the folly of man mars the general well-being, then those who are innocent of the folly will have to pay part of the penalty incurred by those who are guilty of the folly. A panic brought on by the speculative folly of part of the business community would hurt the whole business community; but such stoppage of welfare, though it might be severe, would not be lasting. In the long run, the one vital factor in the permanent prosperity of the country is the high individual character of the average American worker, the average American citizen, no matter whether his work be mental or manual, whether he be farmer or wage-worker, business man or professional man. "In our industrial and social system the interests of all men are so closely intertwined that in the immense majority of cases a straight-dealing man, who by his efficiency, by his ingenuity and industry, benefits himself, must also benefit others. Normally, the man of great productive capacity who becomes rich by guiding the labor of many other men does so by enabling them to produce more than they could produce without his guidance; and both he and they share in the benefit, which comes also to the public at large. The superficial fact that the sharing may be unequal must never blind us to the underlying fact that there is this sharing, and that the benefit comes in some degree to each man concerned.. Normally, the wageworker, the man of small means, and the average consumer, as well as the average producer, are all alike helped by making conditions such that the man of exceptional business ability receives an exceptional reward for his ability Something can be done by legislation to help the general prosperity; but no such help of a permanently beneficial character can be given to the less able and less fortunate save as the results of a policy which shall inure to the advantage of all industrious and efficient people who act decently; and this is only another way of saying that any benefit which comes to the less able and less fortunate must of necessity come even more to the more able and more fortunate. If, therefore, the less fortunate man is moved by envy of his more fortunate brother to strike at the conditions under which they have both, though unequally, prospered, the result will assuredly be that while damage may come to the one struck at, it will visit with an even heavier load the one who strikes the blow. Taken as a whole, we must all go up or go down together. "Yet, while not merely admitting, but insisting upon this, it is also true that where there is no governmental restraint or supervision some of the exceptional men use their energies, not in ways that are for the common good, but in ways which tell against this common good. The fortunes amassed through corporate organization are now so large, and vest such power in those that wield them, as to make it a matter of necessity to give to the sovereign--that is, to the Government, which represents the people as a whole--some effective power of supervision over their corporate use. In order to insure a healthy social and industrial life, every big corporation should be held responsible by, and be accountable to, some sovereign strong enough to control its conduct. I am in no sense hostile to corporations. This is an age of combination, and any effort to prevent all combination will be not only useless, but in the end vicious, because of the contempt for law which the failure to enforce law inevitably produces. We should, moreover, recognize in cordial and ample fashion the immense good effected by corporate agencies in a country such as ours, and the wealth of intellect, energy, and fidelity devoted to their service, and therefore normally to the service of the public, by their officers and directors. The corporation has come to stay, just as the trade union has come to stay. Each can do and has done great good. Each should be favored so long as it does good. But each should be sharply checked where it acts against law and justice. "The makers of our National Constitution provided especially that the regulation of interstate commerce should come within the sphere of the General Government. The arguments in favor of their taking this stand were even then overwhelming. But they are far stronger to-day, in view of the enormous development of great business agencies, usually corporate in form. Experience has shown conclusively that it is useless to try to get any adequate regulation and supervision of these great corporations by State action. Such regulation and supervision can only be effectively exercised by a sovereign whose jurisdiction is coextensive with the field of work of the corporations--that is, by the National Government. I believe that this regulation and supervision can be obtained by the enactment of law by the Congress. Our steady aim should be by legislation, cautiously and carefully undertaken, but resolutely persevered in, to assert the sovereignty of the National Government by affirmative action. "This is only in form an innovation. In substance it is merely a restoration; for from the earliest time such regulation of industrial activities has been recognized in the action of the lawmaking bodies; and all that I propose is to meet the changed conditions in such manner as will prevent the Commonwealth abdicating the power it has always possessed, not only in this country, but also in England before and since this country became a separate nation. "It has been a misfortune that the National laws on this subject have hitherto been of a negative or prohibitive rather than an affirmative kind, and still more that they have in part sought to prohibit what could not be effectively prohibited, and have in part in their prohibitions confounded what should be allowed and what should not be allowed. It is generally useless to try to prohibit all restraint on competition, whether this restraint be reasonable or unreasonable; and where it is not useless it is generally hurtful. The successful prosecution of one device to evade the law immediately develops another device to accomplish the same purpose. What is needed is not sweeping prohibition of every arrangement, good or bad, which may tend to restrict competition, but such adequate supervision and regulation as will prevent any restriction of competition from being to the detriment of the public, as well as such supervision and regulation as will prevent other abuses in no way connected with restriction of competition." I have called your attention in these quotations to what I have already said because I am satisfied that it is the duty of the National Government to embody in action the principles thus expressed. No small part of the trouble that we have comes from carrying to an extreme the national virtue of self-reliance, of independence in initiative and action. It is wise to conserve this virtue and to provide for its fullest exercise, compatible with seeing that liberty does not become a liberty to wrong others. Unfortunately, this is the kind of liberty that the lack of all effective regulation inevitably breeds. founders of the Constitution provided that the National Government should have complete and sole control of interstate commerce. There was then practically no interstate business save such as was conducted by water, and this the National Government at once proceeded to regulate in thoroughgoing and effective fashion. Conditions have now so wholly changed that the interstate commerce by water is insignificant compared with the amount that goes by land, and almost all big business concerns are now engaged in interstate commerce. As a result, it can be but partially and imperfectly controlled or regulated by the action of any one of the several States; such action inevitably tending to be either too drastic or else too lax, and in either case ineffective for purposes of justice. Only the National Government can in thoroughgoing fashion exercise the needed control. This does not mean that there should be any extension of Federal authority, for such authority already exists under the Constitution in amplest and most far-reaching form; but it does mean that there should be an extension of Federal activity. This is not advocating centralization. It is merely looking facts in the face, and realizing that centralization in business has already come and can not be avoided or undone, and that the public at large can only protect itself from certain evil effects of this business centralization by providing better methods for the exercise of control through the authority already centralized in the National Government by the Constitution itself. There must be no ball in the healthy constructive course of action which this Nation has elected to pursue, and has steadily pursued, during the last six years, as shown both in the legislation of the Congress and the administration of the law by the Department of Justice. The most vital need is in connection with the railroads. As to these, in my judgment there should now be either a national incorporation act or a law licensing railway companies to engage in interstate commerce upon certain conditions. The law should be so framed as to give to the Interstate Commerce Commission power to pass upon the future issue of securities, while ample means should be provided to enable the Commission, whenever in its judgment it is necessary, to make a physical valuation of any railroad. As I stated in my Message to the Congress a year ago, railroads should be given power to enter into agreements, subject to these argreements being made public in minute detail and to the consent of the Interstate Commerce Commission being first obtained. Until the National Government assumes proper control of interstate commerce, in the exercise of the authority it already possesses, it will be impossible either to give to or to get from the railroads full justice. The railroads and all other great corporations will do well to recognize that this control must come; the only question is as to what governmental body can most wisely exercise it. The courts will determine the limits within which the Federal authority can exercise it, and there will still remain ample work within each State for the railway commission of that State; and the National Interstate Commerce Commission will work in harmony with the several State commissions, each within its own province, to achieve the desired end. Moreover, in my judgment there should be additional legislation looking to the proper control of the great business concerns engaged in interstate business, this control to be exercised for their own benefit and prosperity no less than for the protection of investors and of the general public. As I have repeatedly said in Messages to the Congress and elsewhere, experience has definitely shown not merely the unwisdom but the futility of endeavoring to put a stop to all business combinations. Modern industrial conditions are such that combination is not only necessary but inevitable. It is so in the world of business just as it is so in the world of labor, and it is as idle to desire to put an end to all corporations, to all big combinations of capital, as to desire to put an end to combinations of labor. Corporation and labor union alike have come to stay. Each if properly managed is a source of good and not evil. Whenever in either there is evil, it should be promptly held to account; but it should receive hearty encouragement so long as it is properly managed. It is profoundly immoral to put or keep on the statute books a law, nominally in the interest of public morality that really puts a premium upon public immorality, by undertaking to forbid honest men from doing what must be done under modern business conditions, so that the law itself provides that its own infraction must be the condition precedent upon business success. To aim at the accomplishment of too much usually means the accomplishment of too little, and often the doing of positive damage. In my Message to the Congress a year ago, in speaking of the antitrust laws, I said: "The actual working of our laws has shown that the effort to prohibit all combination, good or bad, is noxious where it is not ineffective. Combination of capital, like combination of labor, is a necessary element in our present industrial system. It is not possible completely to prevent it; and if it were possible, such complete prevention would do damage to the body politic. What we need is not vainly to try to prevent all combination, but to secure such rigorous and adequate control and supervision of the combinations as to prevent their injuring the public, or existing in such forms as inevitably to threaten injury. It is unfortunate that our present laws should forbid all combinations instead of sharply discriminating between those combinations which do evil. Often railroads would like to combine for the purpose of preventing a big shipper from maintaining improper advantages at the expense of small shippers and of the general public. Such a combination, instead of being forbidden by law, should be favored. It is a public evil to have on the statute books a law incapable of full enforcement, because both judges and juries realize that its full enforcement would destroy the business of the country; for the result is to make decent men violators of the law against their will, and to put a premium on the behavior of the willful wrongdoers. Such a result in turn tends to throw the decent man and the willful wrongdoer into close association, and in the end to drag clown the former to the latter's level; for the man who becomes a lawbreaker in one way unhappily tends to lose all respect for law and to be willing to break. it in many ways. No more scathing condemnation could be visited upon a law than is contained in the words of the Interstate Commerce Commission when, in commenting upon the fact that the numerous joint traffic associations do technically violate the law, they say: 'The decision of the United States Supreme Court in the Trans-Missouri case and the Joint Traffic Association case has produced no practical effect upon the railway operations of the country. Such associations, in fact, exist now as they did before these decisions, and with the same general effect. In justice to all parties, we ought probably to add that it is difficult to see how our interstate railways could be operated with due regard to the interest of the shipper and the railway without concerted action of the kind afforded through these asociations.' "This means that the law as construed by the Supreme Court is such that the business of the country can not be conducted without breaking it." As I have elsewhere said: 
'All this is substantially what I have said over and over again. Surely it ought not to be necessary to say that it in no shape or way represents any hostility to corporations as such. On the contrary, it means a frank recognition of the fact that combinations of capital, like combinations of labor, are a natural result of modern conditions and of our National development. As far as in my ability lies my endeavor is and will be to prevent abuse of power by either and to favor both so long as they do well. The aim of the National Government is quite as much to favor and protect honest corporations, honest business men of wealth, as to bring to justice those individuals and corporations representing dishonest methods. Most certainly there will be no relaxation by the Government authorities in the effort to get at any great railroad wrecker--any man who by clever swindling devices robs investors, oppresses wage-workers, and does injustice to the general public. But any such move as this is in the interest of honest railway operators, of honest corporations, and of those who, when they invest their small savings in stocks and bonds, wish to be assured that these will represent money honestly expended for legitimate business purposes. To confer upon the National Government the power for which I ask would be a check upon overcapitalization and upon the clever gamblers who benefit by overcapitalization. But it alone would mean an increase in the value, an increase in the safety of the stocks and bonds of law-abiding, honestly managed railroads, and would render it far easier to market their securities. I believe in proper publicity. There has been complaint of some of the investigations recently carried on, but those who complain should put the blame where it belongs--upon the misdeeds which are done in darkness and not upon the investigations which brought them to light. The Administration is responsible for turning on the light, but it is not responsible for what the light showed. I ask for full power to be given the Federal Government, because no single State can by legislation effectually cope with these powerful corporations engaged in interstate commerce, and, while doing them full justice, exact from them in return full justice to others. The conditions of railroad activity, the conditions of our immense interstate commerce, are such as to make the Central Government alone competent to exercise full supervision and control. "The grave abuses in individual cases of railroad management in the past represent wrongs not merely to the general public, but, above all, wrongs to fair-dealing and honest corporations and men of wealth, because they excite a popular anger and distrust which from the very nature of the case tends to include in the sweep of its resentment good and bad alike. From the standpoint of the public I can not too earnestly say that as soon as the natural and proper resentment aroused by these abuses becomes indiscriminate and unthinking, it also becomes not merely unwise and unfair, but calculated to defeat the very ends which those feeling it have in view. There has been plenty of dishonest work by corporations in the past. There will not be the slightest let-up in the effort to hunt down and punish every dishonest man. But the bulk of our business is honestly done. In the natural indignation the people feel over the dishonesty, it is essential that they should not lose their heads and get drawn into an indiscriminate raid upon all corporations, all people of wealth, whether they do well or ill. Out of any such wild movement good will not come, can not come, and never has come. On the contrary, the surest way to invite reaction is to follow the lead of either demagogue or visionary in a sweeping assault upon property values and upon public confidence, which would work incalculable damage in the business world and would produce such distrust of the agitators that in the revulsion the distrust would extend to honest men who, in sincere and same fashion, are trying to remedy the evils." The antitrust law should not be repealed; but it should be made both more efficient and more in harmony with actual conditions. It should be so amended as to forbid only the kind of combination which does harm to the general public, such amendment to be accompanied by, or to be an incident of, a grant of supervisory power to the Government over these big concerns engaged in interstate business. This should be accompanied by provision for the compulsory publication of accounts and the subjection of books and papers to the inspection of the Government officials. A beginning has already been made for such supervision by the establishment of the Bureau of Corporations. The antitrust law should not prohibit combinations that do no injustice to the public, still less those the existence of which is on the whole of benefit to the public. But even if this feature of the law were abolished, there would remain as an equally objectionable feature the difficulty and delay now incident to its enforcement. The Government must now submit to irksome and repeated delay before obtaining a final decision of the courts upon proceedings instituted, and even a favorable decree may mean an empty victory. Moreover, to attempt to control these corporations by lawsuits means to impose upon both the Department of Justice and the courts an impossible burden; it is not feasible to carry on more than a limited number of such suits. Such a law to be really effective must of course be administered by an executive body, and not merely by means of lawsuits. The design should be to prevent the abuses incident to the creation of unhealthy and improper combinations, instead of waiting until they are in existence and then attempting to destroy them by civil or criminal proceedings. A combination should not be tolerated if it abuse the power acquired by combination to the public detriment. No corporation or association of any kind should be permitted to engage in foreign or interstate commerce that is formed for the purpose of, or whose operations create, a monopoly or general control of the production, sale, or distribution of any one or more of the prime necessities of life or articles of general use and necessity. Such combinations are against public policy; they violate the common law; the doors of the courts are closed to those who are parties to them, and I believe the Congress can close the channels of interstate commerce against them for its protection. The law should make its prohibitions and permissions as clear and definite as possible, leaving the least possible room for arbitrary action, or allegation of such action, on the part of the Executive, or of divergent interpretations by the courts. Among the points to be aimed at should be the prohibition of unhealthy competition, such as by rendering service at an actual loss for the purpose of crushing out competition, the prevention of inflation of capital, and the prohibition of a corporation's making exclusive trade with itself a condition of having any trade with itself. Reasonable agreements between, or combinations of, corporations should be permitted, provided they are submitted to and approved by some appropriate Government body. The Congress has the power to charter corporations to engage in interstate and foreign commerce, and a general law can be enacted under the provisions of which existing corporations could take out Federal charters and new Federal corporations could be created. An essential provision of such a law should be a method of predetermining by some Federal board or commission whether the applicant for a Federal charter was an association or combination within the restrictions of the Federal law. Provision should also be made for complete publicity in all matters affecting the public and complete protection to the investing public and the shareholders in the matter of issuing corporate securities. If an incorporation law is not deemed advisable, a license act for big interstate corporations might be enacted; or a combination of the two might be tried. The supervision established might be analogous to that now exercised over national banks. At least, the antitrust act should be supplemented by specific prohibitions of the methods which experience has shown have been of most service in enabling monopolistic combinations to crush out competition. The real owners of a corporation should be compelled to do business in their own name. The right to hold stock in other corporations should hereafter be denied to interstate corporations, unless on approval by the Government officials, and a prerequisite to such approval should be the listing with the Government of all owners and stockholders, both by the corporation owning such stock and by the corporation in which such stock is owned. To confer upon the National Government, in connection with the amendment I advocate in the antitrust law, power of supervision over big business concerns engaged in interstate commerce, would benefit them as it has benefited the national banks. In the recent business crisis it is noteworthy that the institutions which failed were institutions which were not under the supervision and control of the National Government. Those which were under National control stood the test. National control of the kind above advocated would be to the benefit of every well-managed railway. From the standpoint of the public there is need for additional tracks, additional terminals, and improvements in the actual handling of the railroads, and all this as rapidly as possible. Ample, safe, and speedy transportation facilities are even more necessary than cheap transportation. Therefore, there is need for the investment of money which will provide for all these things while at the same time securing as far as is possible better wages and shorter hours for their employees. Therefore, while there must be just and reasonable regulation of rates, we should be the first to protest against any arbitrary and unthinking movement to cut them down without the fullest and most careful consideration of all interests concerned and of the actual needs of the situation. Only a special body of men acting for the National Government under authority conferred upon it by the Congress is competent to pass judgment on such a matter. Those who fear, from any reason, the extension of Federal activity will do well to study the history not only of the national banking act but of the pure-food law, and notably the meat inspection law recently enacted. The pure-food law was opposed so violently that its passage was delayed for a decade; yet it has worked unmixed and immediate good. The meat inspection law was even more violently assailed; and the same men who now denounce the attitude of the National Government in seeking to oversee and control the workings of interstate common carriers and business concerns, then asserted that we were "discrediting and ruining a great American industry." Two years have not elapsed, and already it has become evident that the great benefit the law confers upon the public is accompanied by an equal benefit to the reputable packing establishments. The latter are better off under the law than they were without it. The benefit to interstate common carriers and business concerns from the legislation I advocate would be equally marked. Incidentally, in the passage of the pure-food law the action of the various State food and dairy commissioners showed in striking fashion how much good for the whole people results from the hearty cooperation of the Federal and State officials in securing a given reform. It is primarily to the action of these State commissioners that we owe the enactment of this law; for they aroused the people, first to demand the enactment and enforcement of State laws on the subject, and then the enactment of the Federal law, without which the State laws were largely ineffective. There must be the closest cooperation between the National and State governments in administering these laws. In my Message to the Congress a year ago I spoke as follows of the currency: 
"I especially call your attention to the condition of our currency laws. The national-bank act has ably served a great purpose in aiding the enormous business development of the country, and within ten years there has been an increase in circulation per capita from $21.41 to $33.08. For several years evidence has been accumulating that additional legislation is needed. The recurrence of each crop season emphasizes the defects of the present laws. There must soon be a revision of them, because to leave them as they are means to incur liability of business disaster. Since your body adjourned there has been a fluctuation in the interest on call money from 2 per cent to 30 percent, and the fluctuation was even greater during the preceding six months. The Secretary of the Treasury had to step in and by wise action put a stop to the most violent period of oscillation. Even worse than such fluctuation is the advance in commercial rates and the uncertainty felt in the sufficiency of credit even at high rates. All commercial interests suffer during each crop period. Excessive rates for call money in New York attract money from the interior banks into the speculative field. This depletes the fund that would otherwise be available for commercial uses, and commercial borrowers are forced to pay abnormal rates, so that each fall a tax, in the shape of increased interest charges, is placed on the whole commerce of the country. "The mere statement of these facts shows that our present system is seriously defective. There is need of a change. Unfortunately, however, many of the proposed changes must be ruled from consideration because they are complicated, are not easy of comprehension, and tend to disturb existing rights and interests. We must also rule out any plan which would materially impair the value of the United States 2 per cent bonds now pledged to secure circulation, the issue of which was made under conditions peculiarly creditable to the Treasury. I do not press any especial plan. Various plans have recently been proposed by expert committees of bankers. Among the plans which are possibly feasible and which certainly should receive your consideration is that repeatedly brought to your attention by the present Secretary of the Treasury, the essential features of which have been approved by many prominent bankers and business men. According to this plan national banks should be permitted to issue a specified proportion of their capital in notes of a given kind, the issue to be taxed at so high a rate as to drive the notes back when not wanted in legitimate trade. This plan would not permit the issue of currency to give banks additional profits, but to meet the emergency presented by times of stringency. "I do not say that this is the right system. I only advance it to emphasize my belief that there is need for the adoption of some system which shall be automatic and open to all sound banks, so as to avoid all possibility of discrimination and favoritism. Such a plan would tend to prevent the spasms of high money and speculation which now obtain in the New York market; for at present there is too much currency at certain seasons of the year, and its accumulation at New York tempts bankers to lend it at low rates for speculative purposes; whereas at other times when the crops are being moved there is urgent need for a large but temporary increase in the currency supply. It must never be forgotten that this question concerns business men generally quite as much as bankers; especially is this true of stockmen, farmers, and business men in the West; for at present at certain seasons of the year the difference in interest rates between the East and the West is from 6 to 10 per cent, whereas in Canada the corresponding difference is but 2 per cent. Any plan must, of course, guard the interests of western and southern bankers as carefully as it guards the interests of New York or Chicago bankers, and must be drawn from the standpoints of the farmer and the merchant no less than from the standpoints of the city banker and the country banker." I again urge on the Congress the need of immediate attention to this matter. We need a greater elasticity in our currency; provided, of course, that we recognize the even greater need of a safe and secure currency. There must always be the most rigid examination by the National authorities. Provision should be made for an emergency currency. The emergency issue should, of course, be made with an effective guaranty, and upon conditions carefully prescribed by the Government. Such emergency issue must be based on adequate securities approved by the Government, and must be issued under a heavy tax. This would permit currency being issued when the demand for it was urgent, while securing its requirement as the demand fell off. It is worth investigating to determine whether officers and directors of national banks should ever be allowed to loan to themselves. Trust companies should be subject to the same supervision as banks; legislation to this effect should be enacted for the District of Columbia and the Territories. Yet we must also remember that even the wisest legislation on the subject can only accomplish a certain amount. No legislation can by any possibility guarantee the business community against the results of speculative folly any more than it can guarantee an individual against the results of his extravagance. When an individual mortgages his house to buy an automobile he invites disaster; and when wealthy men, or men who pose as such, or are unscrupulously or foolishly eager to become such, indulge in reckless speculation--especially if it is accompanied by dishonesty--they jeopardize not only their own future but the future of all their innocent fellow-citizens, for the expose the whole business community to panic and distress. The income account of the Nation is in a most satisfactory condition. For the six fiscal years ending with the 1st of July last, the total expenditures and revenues of the National Government, exclusive of the postal revenues and expenditures, were, in round numbers, revenues, $3,465,000,0000, and expenditures, $3,275,000,000. The net excess of income over expenditures, including in the latter the fifty millions expended for the Panama Canal, was one hundred and ninety million dollars for the six years, an average of about thirty-one millions a year. This represents an approximation between income and outgo which it would be hard to improve. The satisfactory working of the present tariff law has been chiefly responsible for this excellent showing. Nevertheless, there is an evident and constantly growing feeling among our people that the time is rapidly approaching when our system of revenue legislation must be revised. This country is definitely committed to the protective system and any effort to uproot it could not but cause widespread industrial disaster. In other words, the principle of the present tariff law could not with wisdom be changed. But in a country of such phenomenal growth as ours it is probably well that every dozen years or so the tariff laws should be carefully scrutinized so as to see that no excessive or improper benefits are conferred thereby, that proper revenue is provided, and that our foreign trade is encouraged. There must always be as a minimum a tariff which will not only allow for the collection of an ample revenue but which will at least make good the difference in cost of production here and abroad; that is, the difference in the labor cost here and abroad, for the. well-being of the wage-worker must ever be a cardinal point of American policy. The question should be approached purely from a business standpoint; both the time and the manner of the change being such as to arouse the minimum of agitation and disturbance in the business world, and to give the least play for selfish and factional motives. The sole consideration should be to see that the sum total of changes represents the public good. This means that the subject can not with wisdom be dealt with in the year preceding a Presidential election, because as a matter of fact experience has conclusively shown that at such a time it is impossible to get men to treat it from the standpoint of the public good. In my judgment the wise time to deal with the matter is immediately after such election. When our tax laws are revised the question of an income tax and an inheritance tax should receive the careful attention of our legislators. In my judgment both of these taxes should be part of our system of Federal taxation. I speak diffidently about the income tax because one scheme for an income tax was declared unconstitutional by the Supreme Court; while in addition it is a difficult tax to administer in its practical working, and great care would have to be exercised to see that it was not evaded by the very men whom it was most desirable to have taxed, for if so evaded it would, of course, be worse than no tax at all; as the least desirable of all taxes is the tax which bears heavily upon the honest as compared with the dishonest man. Nevertheless, a graduated income tax of the proper type would be a desirable feature of Federal taxation, and it is to be hoped that one may be devised which the Supreme Court will declare constitutional. The inheritance tax, however, is both a far better method of taxation, and far more important for the purpose of having the fortunes of the country bear in proportion to their increase in size a corresponding increase and burden of taxation. The Government has the absolute right to decide as to the terms upon which a man shall receive a bequest or devise from another, and this point in the devolution of property is especially appropriate for the imposition of a tax. Laws imposing such taxes have repeatedly been placed upon the National statute books and as repeatedly declared constitutional by the courts; and these laws contained the progressive principle, that is, after a certain amount is reached the bequest or gift, in life or death, is increasingly burdened and the rate of taxation is increased in proportion to the remoteness of blood of the man receiving the bequest. These principles are recognized already in the leading civilized nations of the world. In Great Britain all the estates worth $5,000 or less are practically exempt from death duties, while the increase is such that when an estate exceeds five millions of dollars in value and passes to a distant kinsman or stranger in blood the Government receives all told an amount equivalent to nearly a fifth of the whole estate. In France so much of an inheritance as exceeds $10,000,000 pays over a fifth to the State if it passes to a distant relative. The German law is especially interesting to us because it makes the inheritance tax an imperial measure while allotting to the individual States of the Empire a portion of the proceeds and permitting them to impose taxes in addition to those imposed by the Imperial Government. Small inheritances are exempt, but the tax is so sharply progressive that when the inheritance is still not very large, provided it is not an agricultural or a forest land, it is taxed at the rate of 25 per cent if it goes to distant relatives. There is no reason why in the United States the National Government should not impose inheritance taxes in addition to those imposed by the States, and when we last had an inheritance tax about one-half of the States levied such taxes concurrently with the National Government, making a combined maximum rate, in some cases as high as 25 per cent. The French law has one feature which is to be heartily commended. The progressive principle is so applied that each higher rate is imposed only on the excess above the amount subject to the next lower rate; so that each increase of rate will apply only to a certain amount above a certain maximum. The tax should if possible be made to bear more heavily upon those residing without the country than within it. A heavy progressive tax upon a very large fortune is in no way such a tax upon thrift or industry as a like would be on a small fortune. No advantage comes either to the country as a whole or to the individuals inheriting the money by permitting the transmission in their entirety of the enormous fortunes which would be affected by such a tax; and as an incident to its function of revenue raising, such a tax would help to preserve a measurable equality of opportunity for the people of the generations growing to manhood. We have not the slightest sympathy with that socialistic idea which would try to put laziness, thriftlessness and inefficiency on a par with industry, thrift and efficiency; which would strive to break up not merely private property, but what is far more important, the home, the chief prop upon which our whole civilization stands. Such a theory, if ever adopted, would mean the ruin of the entire country--a ruin which would bear heaviest upon the weakest, upon those least able to shift for themselves. But proposals for legislation such as this herein advocated are directly opposed to this class of socialistic theories. Our aim is to recognize what Lincoln pointed out: The fact that there are some respects in which men are obviously not equal; but also to insist that there should be an equality of self-respect and of mutual respect, an equality of rights before the law, and at least an approximate equality in the conditions under which each man obtains the chance to show the stuff that is in him when compared to his fellows. A few years ago there was loud complaint that the law could not be invoked against wealthy offenders. There is no such complaint now. The course of the Department of Justice during the last few years has been such as to make it evident that no man stands above the law, that no corporation is so wealthy that it can not be held to account. The Department of Justice has been as prompt to proceed against the wealthiest malefactor whose crime was one of greed and cunning as to proceed against the agitator who incites to brutal violence. Everything that can be done under the existing law, and with the existing state of public opinion, which so profoundly influences both the courts and juries, has been done. But the laws themselves need strengthening in more than one important point; they should be made more definite, so that no honest man can be led unwittingly to break them, and so that the real wrongdoer can be readily punished. Moreover, there must be the public opinion back of the laws or the laws themselves will be of no avail. At present, while the average juryman undoubtedly wishes to see trusts broken up, and is quite ready to fine the corporation itself, he is very reluctant to find the facts proven beyond a reasonable doubt when it comes to sending to jail a member of the business community for indulging in practices which are profoundly unhealthy, but which, unfortunately, the business community has grown to recognize as well-nigh normal. Both the present condition of the law and the present temper of juries render it a task of extreme difficulty to get at the real wrongdoer in any such case, especially by imprisonment. Yet it is from every standpoint far preferable to punish the prime offender by imprisonment rather than to fine the corporation, with the attendant damage to stockholders. The two great evils in the execution of our criminal laws to-day are sentimentality and technicality. For the latter the remedy must come from the hands of the legislatures, the courts, and the lawyers. The other must depend for its cure upon the gradual growth of a sound public opinion which shall insist that regard for the law and the demands of reason shall control all other influences and emotions in the jury box. Both of these evils must be removed or public discontent with the criminal law will continue. Instances of abuse in the granting of injunctions in labor disputes continue to occur, and the resentment in the minds of those who feel that their rights are being invaded and their liberty of action and of speech unwarrantably restrained continues likewise to grow. Much of the attack on the use of the process of injunction is wholly without warrant; but I am constrained to express the belief that for some of it there is warrant. This question is becoming more and more one of prime importance, and unless the courts will themselves deal with it in effective manner, it is certain ultimately to demand some form of legislative action. It would be most unfortunate for our social welfare if we should permit many honest and law-abiding citizens to feel that they had just cause for regarding our courts with hostility. I earnestly commend to the attention of the Congress this matter, so that some way may be devised which will limit the abuse of injunctions and protect those rights which from time to time it unwarrantably invades. Moreover, discontent is often expressed with the use of the process of injunction by the courts, not only in labor disputes, but where State laws are concerned. I refrain from discussion of this question as I am informed that it will soon receive the consideration of the Supreme Court. The Federal courts must of course decide ultimately what are the respective spheres of State and Nation in connection with any law, State or National, and they must decide definitely and finally in matters affecting individual citizens, not only as to the rights and wrongs of labor but as to the rights and wrongs of capital; and the National Government must always see that the decision of the court is put into effect. The process of injunction is an essential adjunct of the court's doing its work well; and as preventive measures are always better than remedial, the wise use of this process is from every standpoint commendable. But where it is recklessly or unnecessarily used, the abuse should he censured, above all by the very men who are properly anxious to prevent any effort to shear the courts of this necessary power. The court's decision must be final; the protest is only against the conduct of individual judges in needlessly anticipating such final decision, or in the tyrannical use of what is nominally a temporary injunction to accomplish what is in fact a permanent decision. The loss of life and limb from railroad accidents in this country has become appalling. It is a subject of which the National Government should take supervision. It might be well to begin by providing for a Federal inspection of interstate railroads somewhat along the lines of Federal inspection of steamboats, although not going so far; perhaps at first all that it would be necessary to have would be some officer whose duty would be to investigate all accidents on interstate railroads and report in detail the causes thereof. Such an officer should make it his business to get into close touch with railroad operating men so as to become thoroughly familiar with every side of the question, the idea being to work along the lines of the present steamboat inspection law. The National Government should be a model employer. It should demand the highest quality of service from each of its employees and it should care for all of them properly in return. Congress should adopt legislation providing limited but definite compensation for accidents to all workmen within the scope of the Federal power, including employees of navy yards and arsenals. In other words, a model employers' liability act, far-reaching and thoroughgoing, should be enacted which should apply to all positions, public and private, over which the National Government has jurisdiction. The number of accidents to wage-workers, including those that are preventable and those that are not, has become appalling in the mechanical, manufacturing, and transportation operations of the day. It works grim hardship to the ordinary wage-worker and his family to have the effect of such an accident fall solely upon him; and, on the other hand, there are whole classes of attorneys who exist only by inciting men who may or may not have been wronged to undertake suits for negligence. As a matter of fact a suit for negligence is generally an inadequate remedy for the person injured, while it often causes altogether disproportionate annoyance to the employer. The law should be made such that the payment for accidents by the employer would be automatic instead of being a matter for lawsuits. Workmen should receive certain and definite compensation for all accidents in industry irrespective of negligence. The employer is the agent of the public and on his own responsibility and for his own profit he serves the public. When he starts in motion agencies which create risks for others, he should take all the ordinary and extraordinary risks involved; and the risk he thus at the moment assumes will ultimately be assumed, as it ought to be, by the general public. Only in this way can the shock of the accident be diffused, instead of falling upon the man or woman least able to bear it, as is now the case. The community at large should share the burdens as well as the benefits of industry. By the proposed law, employers would gain a desirable certainty of obligation and get rid of litigation to determine it, while the workman and his family would be relieved from a crushing load. With such a policy would come increased care, and accidents would be reduced in number. The National laws providing for employers' liability on railroads engaged in interstate commerce and for safety appliances, as well as for diminishing the hours any employee of a railroad should be permitted to work, should all be strengthened wherever in actual practice they have shown weakness; they should be kept on the statute books in thoroughgoing form. The constitutionality of the employers' liability act passed by the preceding Congress has been carried before the courts. In two jurisdictions the law has been declared unconstitutional, and in three jurisdictions its constitutionality has been affirmed. The question has been carried to the Supreme Court, the case has been heard by that tribunal, and a decision is expected at an early date. In the event that the court should affirm the constitutionality of the act, I urge further legislation along the lines advocated in my Message to the preceding Congress. The practice of putting the entire burden of loss to life or limb upon the victim or the victim's family is a form of social injustice in which the United States stands in unenviable prominence. In both our Federal and State legislation we have, with few exceptions, scarcely gone farther than the repeal of the fellow-servant principle of the old law of liability, and in some of our States even this slight modification of a completely outgrown principle has not yet been secured. The legislation of the rest of the industrial world stands out in striking contrast to our backwardness in this respect. Since 1895 practically every country of Europe, together with Great Britain, New Zealand, Australia, British Columbia, and the Cape of Good Hope has enacted legislation embodying in one form or another the complete recognition of the principle which places upon the employer the entire trade risk in the various lines of industry. I urge upon the Congress the enactment of a law which will at the same time bring Federal legislation up to the standard already established by all the European countries, and which will serve as a stimulus to the various States to perfect their legislation in this regard. The Congress should consider the extension of the eight-hour law. The constitutionality of the present law has recently been called into question, and the Supreme Court has decided that the existing legislation is unquestionably within the powers of the Congress. The principle of the eight-hour day should as rapidly and as far as practicable be extended to the entire work carried on by the Government; and the present law should be amended to embrace contracts on those public works which the present wording of the act has been construed to exclude. The general introduction of the eight-hour day should be the goal toward which we should steadily tend, and the Government should set the example in this respect. Strikes and lockouts, with their attendant loss and suffering, continue to increase. For the five years ending December 31, 1905, the number of strikes was greater than those in any previous ten years and was double the number in the preceding five years. These figures indicate the increasing need of providing some machinery to deal with this class of disturbance in the interest alike of the employer, the employee, and the general public. I renew my previous recommendation that the Congress favorably consider the matter of creating the machinery for compulsory investigation of such industrial controversies as are of sufficient magnitude and of sufficient concern to the people of the country as a whole to warrant the Federal Government in taking action. The need for some provision for such investigation was forcibly illustrated during the past summer. A strike of telegraph operators seriously interfered with telegraphic communication, causing great damage to business interests and serious inconvenience to the general public. Appeals were made to me from many parts of the country, from city councils, from boards of trade, from chambers of commerce, and from labor organizations, urging that steps be taken to terminate the strike. Everything that could with any propriety be done by a representative of the Government was done, without avail, and for weeks the public stood by and suffered without recourse of any kind. Had the machinery existed and had there been authority for compulsory investigation of the dispute, the public would have been placed in possession of the merits of the controversy, and public opinion would probably have brought about a prompt adjustment. Each successive step creating machinery for the adjustment of labor difficulties must be taken with caution, but we should endeavor to make progress in this direction. The provisions of the act of 1898 creating the chairman of the Interstate Commerce Commission and the Commissioner of Labor a board of mediation in controversies between interstate railroads and their employees has, for the first time, been subjected to serious tests within the past year, and the wisdom of the experiment has been fully demonstrated. The creation of a board for compulsory investigation in cases where mediation fails and arbitration is rejected is the next logical step in a progressive program. It is certain that for some time to come there will be a constant increase absolutely, and perhaps relatively, of those among our citizens who dwell in cities or towns of some size and who work for wages. This means that there will be an ever-increasing need to consider the problems inseparable from a great industrial civilization. Where an immense and complex business, especially in those branches relating to manufacture and transportation, is transacted by a large number of capitalists who employ a very much larger number of wage-earners, the former tend more and more to combine into corporations and the latter into unions. The relations of the capitalist and wage-worker to one another, and of each to the general public, are not always easy to adjust; and to put them and keep them on a satisfactory basis is one of the most important and one of the most delicate tasks before our whole civilization. Much of the work for the accomplishment of this end must be done by the individuals concerned themselves, whether singly or in combination; and the one fundamental fact that must never be lost track of is that the character of the average man, whether he be a man of means or a man who works with his hands, is the most important factor in solving the problem aright. But it is almost equally important to remember that without good laws it is also impossible to reach the proper solution. It is idle to hold that without good laws evils such as child labor, as the over-working of women, as the failure to protect employees from loss of life or limb, can be effectively reached, any more than the evils of rebates and stock-watering can be reached without good laws. To fail to stop these practices by legislation means to force honest men into them, because otherwise the dishonest who surely will take advantage of them will have everything their own way. If the States will correct these evils, well and good; but the Nation must stand ready to aid them. No question growing out of our rapid and complex industrial development is more important than that of the employment of women and children. The presence of women in industry reacts with extreme directness upon the character of the home and upon family life, and the conditions surrounding the employment of children bear a vital relation to our future citizenship. Our legislation in those areas under the control of the Congress is very much behind the legislation of our more progressive States. A thorough and comprehensive measure should be adopted at this session of the Congress relating to the employment of women and children in the District of Columbia and the Territories. The investigation into the condition of women and children wage-earners recently authorized and directed by the Congress is now being carried on in the various States, and I recommend that the appropriation made last year for beginning this work be renewed, in order that we may have the thorough and comprehensive investigation which the subject demands. The National Government has as an ultimate resort for control of child labor the use of the interstate commerce clause to prevent the products of child labor from entering into interstate commerce. But before using this it ought certainly to enact model laws on the subject for the Territories under its own immediate control. There is one fundamental proposition which can be laid down as regards all these matters, namely: While honesty by itself will not solve the problem, yet the insistence upon honesty--not merely technical honesty, but honesty in purpose and spirit--is an essential element in arriving at a right conclusion. Vice in its cruder and more archaic forms shocks everybody; but there is very urgent need that public opinion should be just as severe in condemnation of the vice which hides itself behind class or professional loyalty, or which denies that it is vice if it can escape conviction in the courts. The public and the representatives of the public, the high officials, whether on the bench or in executive or legislative positions, need to remember that often the most dangerous criminals, so far as the life of the Nation is concerned, are not those who commit the crimes known to and condemned by the popular conscience for centuries, but those who commit crimes only rendered possible by the complex conditions of our modern industrial life. It makes not a particle of difference whether these crimes are committed by a capitalist or by a laborer, by a leading banker or manufacturer or railroad man, or by a leading representative of a labor union. Swindling in stocks, corrupting legislatures, making fortunes by the inflation of securities, by wrecking railroads, by destroying competitors through rebates--these forms of wrongdoing in the capitalist, are far more infamous than any ordinary form of embezzlement or forgery; yet it is a matter of extreme difficulty to secure the punishment of the man most guilty of them, most responsible for them. The business man who condones such conduct stands on a level with the labor man who deliberately supports a corrupt demagogue and agitator, whether head of a union or head of some municipality, because he is said to have "stood by the union." The members of the business community, the educators, or clergymen, who condone and encourage the first kind of wrongdoing, are no more dangerous to the community, but are morally even worse, than the labor men who are guilty of the second type of wrongdoing, because less is to be pardoned those who have no such excuse as is furnished either by ignorance or by dire need. When the Department of Agriculture was founded there was much sneering as to its usefulness. No Department of the Government, however, has more emphatically vindicated its usefulness, and none save the Post-Office Department comes so continually and intimately into touch with the people. The two citizens whose welfare is in the aggregate most vital to the welfare of the Nation, and therefore to the welfare of all other citizens, are the wage-worker who does manual labor and the tiller of the soil, the farmer. There are, of course, kinds of labor where the work must be purely mental, and there are other kinds of labor where, under existing conditions, very little demand indeed is made upon the mind, though I am glad to say that the proportion of men engaged in this kind of work is diminishing. But in any community with the solid, healthy qualities which make up a really great nation the bulk of the people should do work which calls for the exercise of both body and mind. Progress can not permanently exist in the abandonment of physical labor, but in the development of physical labor, so that it shall represent more and more the work of the trained mind in the trained body. Our school system is gravely defective in so far as it puts a premium upon mere literary training and tends therefore to train the boy away from the farm and the workshop. Nothing is more needed than the best type of industrial school, the school for mechanical industries in the city, the school for practically teaching agriculture in the country. The calling of the skilled tiller of the soil, the calling of the skilled mechanic, should alike be recognized as professions, just as emphatically as the callings of lawyer, doctor, merchant, or clerk. The schools recognize this fact and it should equally be recognized in popular opinion. The young man who has the farsightedness and courage to recognize it and to get over the idea that it makes a difference whether what he earns is called salary or wages, and who refuses to enter the crowded field of the so-called professions, and takes to constructive industry instead, is reasonably sure of an ample reward in earnings, in health, in opportunity to marry early, and to establish a home with a fair amount of freedom from worry. It should be one of our prime objects to put both the farmer and the mechanic on a higher plane of efficiency and reward, so as to increase their effectiveness in the economic world, and therefore the dignity, the remuneration, and the power of their positions in the social world. No growth of cities, no growth of wealth, can make up for any loss in either the number or the character of the farming population. We of the United States should realize this above almost all other peoples. We began our existence as a nation of farmers, and in every great crisis of the past a peculiar dependence has had to be placed upon the farming population; and this dependence has hitherto been justified. But it can not be justified in the future if agriculture is permitted to sink in the scale as compared with other employments. We can not afford to lose that preeminently typical American, the farmer who owns his own medium-sized farm. To have his place taken by either a class of small peasant proprietors, or by a class of great landlords with tenant-farmed estates would be a veritable calamity. The growth of our cities is a good thing but only in so far as it does not mean a growth at the expense of the country farmer. We must welcome the rise of physical sciences in their application to agricultural practices, and we must do all we can to render country conditions more easy and pleasant. There are forces which now tend to bring about both these results, but they are, as yet, in their infancy. The National Government through the Department of Agriculture should do all it can by joining with the State governments and with independent associations of farmers to encourage the growth in the open farming country of such institutional and social movements as will meet the demand of the best type of farmers, both for the improvement of their farms and for the betterment of the life itself. The Department of Agriculture has in many places, perhaps especially in certain districts of the South, accomplished an extraordinary amount by cooperating with and teaching the farmers through their associations, on their own soil, how to increase their income by managing their farms better than they were hitherto managed. The farmer must not lose his independence, his initiative, his rugged self-reliance, yet he must learn to work in the heartiest cooperation with his fellows, exactly as the business man has learned to work; and he must prepare to use to constantly better advantage the knowledge that can be obtained from agricultural colleges, while he must insist upon a practical curriculum in the schools in which his children are taught. The Department of Agriculture and the Department of Commerce and Labor both deal with the fundamental needs of our people in the production of raw material and its manufacture and distribution, and, therefore, with the welfare of those who produce it in the raw state, and of those who manufacture and distribute it. The Department of Commerce and Labor has but recently been founded but has already justified its existence; while the Department of Agriculture yields to no other in the Government in the practical benefits which it produces in proportion to the public money expended. It must continue in the future to deal with growing crops as it has dealt in the past, but it must still further extend its field of usefulness hereafter by dealing with live men, through a far-reaching study and treatment of the problems of farm life alike from the industrial and economic and social standpoint. Farmers must cooperate with one another and with the Government, and the Government can best give its aid through associations of farmers, so as to deliver to the farmer the large body of agricultural knowledge which has been accumulated by the National and State governments and by the agricultural colleges and schools. The grain producing industry of the country, one of the most important in the United States, deserves special consideration at the hands of the Congress. Our grain is sold almost exclusively by grades. To secure satisfactory results in our home markets and to facilitate our trade abroad, these grades should approximate the highest degree of uniformity and certainty. The present diverse methods of inspection and grading throughout the country under different laws and boards, result in confusion and lack of uniformity, destroying that confidence which is necessary for healthful trade. Complaints against the present methods have continued for years and they are growing in volume and intensity, not only in this country but abroad. I therefore suggest to the Congress the advisability of a National system of inspection and grading of grain entering into interstate and foreign commerce as a remedy for the present evils. The conservation of our natural resources and their proper use constitute the fundamental problem which underlies almost every other problem of our National life. We must maintain for our civilization the adequate material basis without which that civilization can not exist. We must show foresight, we must look ahead. As a nation we not only enjoy a wonderful measure of present prosperity but if this prosperity is used aright it is an earnest of future success such as no other nation will have. The reward of foresight for this Nation is great and easily foretold. But there must be the look ahead, there must be a realization of the fact that to waste, to destroy, our natural resources, to skin and exhaust the land instead of using it so as to increase its usefulness, will result in undermining in the days of our children the very prosperity which we ought by right to hand down to them amplified and developed. For the last few years, through several agencies, the Government has been endeavoring to get our people to look ahead and to substitute a planned and orderly development of our resources in place of a haphazard striving for immediate profit. Our great river systems should be developed as National water highways, the Mississippi, with its tributaries, standing first in importance, and the Columbia second, although there are many others of importance on the Pacific, the Atlantic and the Gulf slopes. The National Government should undertake this work, and I hope a beginning will be made in the present Congress; and the greatest of all our rivers, the Mississippi, should receive especial attention. From the Great Lakes to the mouth of the Mississippi there should be a deep waterway, with deep waterways leading from it to the East and the West. Such a waterway would practically mean the extension of our coast line into the very heart of our country. It would be of incalculable benefit to our people. If begun at once it can be carried through in time appreciably to relieve the congestion of our great freight-carrying lines of railroads. The work should be systematically and continuously carried forward in accordance with some well-conceived plan. The main streams should be improved to the highest point of efficiency before the improvement of the branches is attempted; and the work should be kept free from every faint of recklessness or jobbery. The inland waterways which lie just back of the whole eastern and southern coasts should likewise be developed. Moreover, the development of our waterways involves many other important water problems, all of which should be considered as part of the same general scheme. The Government dams should be used to produce hundreds of thousands of horsepower as an incident to improving navigation; for the annual value of the unused water-power of the United States perhaps exceeds the annual value of the products of all our mines. As an incident to creating the deep waterways down the Mississippi, the Government should build along its whole lower length levees which taken together with the control of the headwaters, will at once and forever put a complete stop to all threat of floods in the immensely fertile Delta region. The territory lying adjacent to the Mississippi along its lower course will thereby become one of the most prosperous and populous, as it already is one of the most fertile, farming regions in all the world. I have appointed an Inland Waterways Commission to study and outline a comprehensive scheme of development along all the lines indicated. Later I shall lay its report before the Congress. Irrigation should be far more extensively developed than at present, not only in the States of the Great Plains and the Rocky Mountains, but in many others, as, for instance, in large portions of the South Atlantic and Gulf States, where it should go hand in hand with the reclamation of swamp land. The Federal Government should seriously devote itself to this task, realizing that utilization of waterways and water-power, forestry, irrigation, and the reclamation of lands threatened with overflow, are all interdependent parts of the same problem. The work of the Reclamation Service in developing the larger opportunities of the western half of our country for irrigation is more important than almost any other movement. The constant purpose of the Government in connection with the Reclamation Service has been to use the water resources of the public lands for the ultimate greatest good of the greatest number; in other words, to put upon the land permanent home-makers, to use and develop it for themselves and for their children and children's children. There has been, of course, opposition to this work; opposition from some interested men who desire to exhaust the land for their own immediate profit without regard to the welfare of the next generation, and opposition from honest and well-meaning men who did not fully understand the subject or who did not look far enough ahead. This opposition is, I think, dying away, and our people are understanding that it would be utterly wrong to allow a few individuals to exhaust for their own temporary personal profit the resources which ought to be developed through use so as to be conserved for the permanent common advantage of the people as a whole. The effort of the Government to deal with the public land has been based upon the same principle as that of the Reclamation Service. The land law system which was designed to meet the needs of the fertile and well-watered regions of the Middle West has largely broken down when applied to the dryer regions of the Great Plains, the mountains, and much of the Pacific slope, where a farm of 160 acres is inadequate for self-support. In these regions the system lent itself to fraud, and much land passed out of the hands of the Government without passing into the hands of the home-maker. The Department of the Interior and the Department of Justice joined in prosecuting the offenders against the law; and they have accomplished much, while where the administration of the law has been defective it has been changed. But the laws themselves are defective. Three years ago a public lands commission was appointed to scrutinize the law, and defects, and recommend a remedy. Their examination specifically showed the existence of great fraud upon the public domain, and their recommendations for changes in the law were made with the design of conserving the natural resources of every part of the public lands by putting it to its best use. Especial attention was called to the prevention of settlement by the passage of great areas of public land into the hands of a few men, and to the enormous waste caused by unrestricted grazing upon the open range. The recommendations of the Public Lands Commission are sound, for they are especially in the interest of the actual homemaker; and where the small home-maker can not at present utilize the land they provide that the Government shall keep control of it so that it may not be monopolized by a few men. The Congress has not yet acted upon these recommendations; but they are so just and proper, so essential to our National welfare, that I feel confident, if the Congress will take time to consider them, that they will ultimately be adopted. Some such legislation as that proposed is essential in order to preserve the great stretches of public grazing land which are unfit for cultivation under present methods and are valuable only for the forage which they supply. These stretches amount in all to some 300,000,000 acres, and are open to the free grazing of cattle, sheep, horses and goats, without restriction. Such a system, or lack of system, means that the range is not so much used as wasted by abuse. As the West settles the range becomes more and more over-grazed. Much of it can not be used to advantage unless it is fenced, for fencing is the only way by which to keep in check the owners of nomad flocks which roam hither and thither, utterly destroying the pastures and leaving a waste behind so that their presence is incompatible with the presence of home-makers. The existing fences are all illegal. Some of them represent the improper exclusion of actual settlers, actual home-makers, from territory which is usurped by great cattle companies. Some of them represent what is in itself a proper effort to use the range for those upon the land, and to prevent its use by nomadic outsiders. All these fences, those that are hurtful and those that are beneficial, are alike illegal and must come down. But it is an outrage that the law should necessitate such action on the part of the Administration. The unlawful fencing of public lands for private grazing must be stopped, but the necessity which occasioned it must be provided for. The Federal Government should have control of the range, whether by permit or lease, as local necessities may determine. Such control could secure the great benefit of legitimate fencing, while at the same time securing and promoting the settlement of the country. In some places it may be that the tracts of range adjacent to the homesteads of actual settlers should be allotted to them severally or in common for the summer grazing of their stock. Elsewhere it may be that a lease system would serve the purpose; the leases to be temporary and subject to the rights of settlement, and the amount charged being large enough merely to permit of the efficient and beneficial control of the range by the Government, and of the payment to the county of the equivalent of what it would otherwise receive in taxes. The destruction of the public range will continue until some such laws as these are enacted. Fully to prevent the fraud in the public lands which, through the joint action of the Interior Department and the Department of Justice, we have been endeavoring to prevent, there must be further legislation, and especially a sufficient appropriation to permit the Department of the Interior to examine certain classes of entries on the ground before they pass into private ownership. The Government should part with its title only to the actual home-maker, not to the profit-maker who does not care to make a home. Our prime object is to secure the rights and guard the interests of the small ranchman, the man who plows and pitches hay for himself. It is this small ranchman, this actual settler and homemaker, who in the long run is most hurt by permitting thefts of the public land in whatever form. Optimism is a good characteristic, but if carried to an excess it becomes foolishness. We are prone to speak of the resources of this country as inexhaustible; this is not so. The mineral wealth of the country, the coal, iron, oil, gas, and the like, does not reproduce itself, and therefore is certain to be exhausted ultimately; and wastefulness in dealing with it to-day means that our descendants will feel the exhaustion a generation or two before they otherwise would. But there are certain other forms of waste which could be entirely stopped--the waste of soil by washing, for instance, which is among the most dangerous of all wastes now in progress in the United States, is easily preventable, so that this present enormous loss of fertility is entirely unnecessary. The preservation or replacement of the forests is one of the most important means of preventing this loss. We have made a beginning in forest preservation, but it is only a beginning. At present lumbering is the fourth greatest industry in the United States; and yet, so rapid has been the rate of exhaustion of timber in the United States in the past, and so rapidly is the remainder being exhausted, that the country is unquestionably on the verge of a timber famine which will be felt in every household in the land. There has already been a rise in the price of lumber, but there is certain to be a more rapid and heavier rise in the future. The present annual consumption of lumber is certainly three times as great as the annual growth; and if the consumption and growth continue unchanged, practically all our lumber will be exhausted in another generation, while long before the limit to complete exhaustion is reached the growing scarcity will make itself felt in many blighting ways upon our National welfare. About 20 per cent of our forested territory is now reserved in National forests; but these do not include the most valuable timber lauds, and in any event the proportion is too small to expect that the reserves can accomplish more than a mitigation of the trouble which is ahead for the nation. Far more drastic action is needed. Forests can be lumbered so as to give to the public the full use of their mercantile timber without the slightest detriment to the forest, any more than it is a detriment to a farm to furnish a harvest; so that there is no parallel between forests and mines, which can only be completely used by exhaustion. But forests, if used as all our forests have been used in the past and as most of them are still used, will be either wholly destroyed, or so damaged that many decades have to pass before effective use can be made of them again. All these facts are so obvious that it is extraordinary that it should be necessary to repeat them. Every business man in the land, every writer in the newspapers, every man or woman of an ordinary school education, ought to be able to see that immense quantities of timber are used in the country, that the forests which supply this timber are rapidly being exhausted, and that, if no change takes place, exhaustion will come comparatively soon, and that the effects of it will be felt severely in the every-day life of our people. Surely, when these facts are so obvious, there should be no delay in taking preventive measures. Yet we seem as a nation to be willing to proceed in this matter with happy-go-lucky indifference even to the immediate future. It is this attitude which permits the self-interest of a very few persons to weigh for more than the ultimate interest of all our people. There are persons who find it to their immense pecuniary benefit to destroy the forests by lumbering. They are to be blamed for thus sacrificing the future of the Nation as a whole to their own self-interest of the moment; but heavier blame attaches to the people at large for permitting such action, whether in the White Mountains, in the southern Alleghenies, or in the Rockies and Sierras. A big lumbering company, impatient for immediate returns and not caring to look far enough ahead, will often deliberately destroy all the good timber in a region, hoping afterwards to move on to some new country. The shiftless man of small means, who does not care to become an actual home-maker but would like immediate profit, will find it to his advantage to take up timber land simply to turn it over to such a big company, and leave it valueless for future settlers. A big mine owner, anxious only to develop his mine at the moment, will care only to cut all the timber that he wishes without regard to the future--probably net looking ahead to the condition of the country when the forests are exhausted, any more than he does to the condition when the mine is worked out. I do not blame these men nearly as much as I blame the supine public opinion, the indifferent public opinion, which permits their action to go unchecked. Of course to check the waste of timber means that there must be on the part of the public the acceptance of a temporary restriction in the lavish use of the timber, in order to prevent the total loss of this use in the future. There are plenty of men in public and private life who actually advocate the continuance of the present system of unchecked and wasteful extravagance, using as an argument the fact that to check it will of course mean interference with the ease and comfort of certain people who now get lumber at less cost than they ought to pay, at the expense of the future generations. Some of these persons actually demand that the present forest reserves be thrown open to destruction, because, forsooth, they think that thereby the price of lumber could be put down again for two or three or more years. Their attitude is precisely like that of an agitator protesting against the outlay of money by farmers on manure and in taking care of their farms generally. Undoubtedly, if the average farmer were content absolutely to ruin his farm, he could for two or three years avoid spending any money on it, and yet make a good deal of money out of it. But only a savage would, in his private affairs, show such reckless disregard of the future; yet it is precisely this reckless disregard of the future which the opponents of the forestry system are now endeavoring to get the people of the United States to show. The only trouble with the movement for the preservation of our forests is that it has not gone nearly far enough, and was not begun soon enough. It is a most fortunate thing, however, that we began it when we did. We should acquire in the Appalachian and White Mountain regions all the forest lands that it is possible to acquire for the use of the Nation. These lands, because they form a National asset, are as emphatically national as the rivers which they feed, and which flow through so many States before they reach the ocean. There should be no tariff on any forest product grown in this country; and, in especial, there should be no tariff on wood pulp; due notice of the change being of course given to those engaged in the business so as to enable them to adjust themselves to the new conditions. The repeal of the duty on wood pulp should if possible be accompanied by an agreement with Canada that there shall be no export duty on Canadian pulp wood. In the eastern United States the mineral fuels have already passed into the hands of large private owners, and those of the West are rapidly following. It is obvious that these fuels should be conserved and not wasted, and it would be well to protect the people against unjust and extortionate prices, so far as that can still be done. What has been accomplished in the great oil fields of the Indian Territory by the action of the Administration, offers a striking example of the good results of such a policy. In my judgment the Government should have the right to keep the fee of the coal, oil, and gas fields in its own possession and to lease the rights to develop them under proper regulations; or else, if the Congress will not adopt this method, the coal deposits should be sold under limitations, to conserve them as public utilities, the right to mine coal being separated from the title to the soil. The regulations should permit coal lands to be worked in sufficient quantity by the several corporations. The present limitations have been absurd, excessive, and serve no useful purpose, and often render it necessary that there should be either fraud or close abandonment of the work of getting out the coal. Work on the Panama Canal is proceeding in a highly satisfactory manner. In March last, John F. Stevens, chairman of the Commission and chief engineer, resigned, and the Commission was reorganized and constituted as follows: Lieut. Col. George W. Goethals, Corps. of Engineers, U. S. Army, chairman and chief engineer; Maj. D. D. Gall-lard, Corps of Engineers, U. S. Army; Maj. William L. Sibert, Corps of Engineers, U. S. Army; Civil Engineer H. H. Rousseau, U. S. Navy; Mr. J. C. S. Blackburn; Col. W. C. Gorgas, U. S. Army, and Mr. Jackson Smith, Commissioners. This change of authority and direction went into effect on April 1, without causing a perceptible check to the progress of the work. In March the total excavation in the Culebra Cut, where effort was chiefly concentrated, was 815,270 cubic yards. In April this was increased to 879,527 cubic yards. There was a considerable decrease in the output for May and June owing partly to the advent of the rainy season and partly to temporary trouble with the steam shovel men over the question of wages. This trouble was settled satisfactorily to all parties and in July the total excavation advanced materially and in August the grand total from all points in the canal prism by steam shovels and dredges exceeded all previous United States records, reaching 1,274,404 cubic yards. In September this record was eclipsed and a total of 1,517,412 cubic yards was removed. Of this amount 1,481,307 cubic yards were from the canal prism and 36,105 cubic yards were from accessory works. These results were achieved in the rainy season with a rainfall in August of 11.89 inches and in September of 11.65 inches. Finally, in October, the record was again eclipsed, the total excavation being 1,868,729 cubic yards; a truly extraordinary record, especially in view of the heavy rainfall, which was 17.1 inches. In fact, experience during the last two rainy seasons demonstrates that the rains are a less serious obstacle to progress than has hitherto been supposed. Work on the locks and dams at Gatun, which began actively in March last, has advanced so far that it is thought that masonry work on the locks can be begun within fifteen months. In order to remove all doubt as to the satisfactory character of the foundations for the locks of the Canal, the Secretary of War requested three eminent civil engineers, of special experience in such construction, Alfred Noble, Frederic P. Stearns and John R. Freeman, to visit the Isthmus and make thorough personal investigations of the sites. These gentlemen went to the Isthmus in April and by means of test pits which had been dug for the purpose, they inspected the proposed foundations, and also examined the borings that had been made. In their report to the Secretary of War, under date of May 2, 1907, they said: "We found that all of the locks, of the dimensions now propesed, will rest upon rock of such character that it will furnish a safe and stable foundation." Subsequent new borings, conducted by the present Commission, have fully confirmed this verdict. They show that the locks will rest on rock for their entire length. The cross section of the dam and method of construction will be such as to insure against any slip or sloughing off. Similar examination of the foundations of the locks and dams on the Pacific side are in progress. I believe that the locks should be made of a width of 120 feet. Last winter bids were requested and received for doing the work of canal construction by contract. None of them was found to be satisfactory and all were rejected. It is the unanimous opinion of the present Commission that the work can be done better, more cheaply, and more quickly by the Government than by private contractors. Fully 80 per cent of the entire plant needed for construction has been purchased or contracted for; machine shops have been erected and equipped for making all needed repairs to the plant; many thousands of employees have been secured; an effective organization has been perfected; a recruiting system is in operation which is capable of furnishing more labor than can be used advantageously; employees are well sheltered and well fed; salaries paid are satisfactory, and the work is not only going forward smoothly, but it is producing results far in advance of the most sanguine anticipations. Under these favorable conditions, a change in the method of prosecuting the work would be unwise and unjustifiable, for it would inevitably disorganize existing conditions, check progress, and increase the cost and lengthen the time of completing the Canal. The chief engineer and all his professional associates are firmly convinced that the 85 feet level lock canal which they are constructing is the best that could be desired. Some of them had doubts on this point when they went to the Isthmus. As the plans have developed under their direction their doubts have been dispelled. While they may decide upon changes in detail as construction advances they are in hearty accord in approving the general plan. They believe that it provides a canal not only adequate to all demands that will be made upon it but superior in every way to a sea level canal. I concur in this belief. I commend to the favorable consideration of the Congress a postal savings bank system, as recommended by the Postmaster-General. The primary object is to encourage among our people economy and thrift and by the use of postal savings banks to give them an opportunity to husband their resources, particularly those who have not the facilities at hand for depositing their money in savings banks. Viewed, however, from the experience of the past few weeks, it is evident that the advantages of such an institution are till more far-reaching. Timid depositors have withdrawn their savings for the time being from national banks, trust companies, and savings banks; individuals have hoarded their cash and the workingmen their earnings; all of which money has been withheld and kept in hiding or in safe deposit box to the detriment of prosperity. Through the agency of the postal savings banks such money would be restored to the channels of trade, to the mutual benefit of capital and labor. I further commend to the Congress the consideration of the Postmaster-General's recommendation for an extension of the parcel post, especially on the rural routes. There are now 38,215 rural routes, serving nearly 15,000,000 people who do not have the advantages of the inhabitants of cities in obtaining their supplies. These recommendations have been drawn up to benefit the farmer and the country storekeeper; otherwise, I should not favor them, for I believe that it is good policy for our Government to do everything possible to aid the small town and the country district. It is desirable that the country merchant should not be crushed out. The fourth-class postmasters' convention has passed a very strong resolution in favor of placing the fourth-class postmasters under the civil-service law. The Administration has already put into effect the policy of refusing to remove any fourth-class postmasters save for reasons connected with the good of the service; and it is endeavoring so far as possible to remove them from the domain of partisan politics. It would be a most desirable thing to put the fourth-class postmasters in the classified service. It is possible that this might be done without Congressional action, but, as the matter is debatable, I earnestly recommend that the Congress enact a law providing that they be included under the civil-service law and put in the classified service. Oklahoma has become a State, standing on a full equality with her elder sisters, and her future is assured by her great natural resources. The duty of the National Government to guard the personal and property rights of the Indians within her borders remains of course unchanged. I reiterate my recommendations of last year as regards Alaska. Some form of local self-government should be provided, as simple and inexpensive as possible; it is impossible for the Congress to devote the necessary time to all the little details of necessary Alaskan legislation. Road building and railway building should be encouraged. The Governor of Alaska should begiven an ample appropriation wherewith to organize a force to preserve the public peace. Whisky selling to the natives should be made a felony. The coal land laws should be changed so as to meet the peculiar needs of the Territory. This should be attended to at once; for the present laws permit individuals to locate large areas of the public domain for speculative purposes; and cause an immense amount of trouble, fraud, and litigation. There should be another judicial division established. As early as possible lighthouses and buoys should be established as aids to navigation, especially in and about Prince William Sound, and the survey of the coast completed. There is need of liberal appropriations for lighting and buoying the southern coast and improving the aids to navigation in southeastern Alaska. One of the great industries of Alaska, as of Puget Sound and the Columbia, is salmon fishing. Gradually, by reason of lack of proper laws, this industry is being ruined; it should now be taken in charge, and effectively protected, by the United States Government. The courage and enterprise of the citizens of the farnorth-west in their projected Alaskan-Yukon-Pacific Exposition, to be held in 1909, should receive liberal encouragement. This exposition is not sentimental in its conception, but seeks to exploit the natural resources of Alaska and to promote the commerce, trade, and industry of the Pacific States with their neighboring States and with our insular possessions and the neighboring countries of the Pacific. The exposition asks no loan from the Congress but seeks appropriations for National exhibits and exhibits of the western dependencies of the General Government. The State of Washington and the city of Seattle have shown the characteristic western enterprise in large donations for the conduct of this exposition in which other States are lending generous assistance. The unfortunate failure of the shipping bill at the last session of the last Congress was followed by the taking off of certain Pacific steamships, which has greatly hampered the movement of passengers between Hawaii and the mainland. Unless the Congress is prepared by positive encouragement to secure proper facilities in the way of shipping between Hawaii and the mainland, then the coastwise shipping laws should be so far relaxed as to prevent Hawaii suffering as it is now suffering. I again call your attention to the capital importance from every standpoint of making Pearl Harbor available for the largest deep water vessels, and of suitably fortifying the islan The Secretary of War has gone to the Philippines. On his return I shall submit to you his report on the islands. 
I again recommend that the rights of citizenship be conferred upon the people of Porto Rico. A bureau of mines should be created under the control and direction of the Secretary of the Interior; the bureau to have power to collect statistics and make investigations in all matters pertaining to mining and particularly to the accidents and dangers of the industry. If this can not now be done, at least additional appropriations should be given the Interior Department to be used for the study of mining conditions, for the prevention of fraudulent mining schemes, for carrying on the work of mapping the mining districts, for studying methods for minimizing the accidents and dangers in the industry; in short, to aid in all proper ways the development of the mining industry. I strongly recommend to the Congress to provide funds for keeping up the Hermitage, the home of Andrew Jackson; these funds to be used through the existing Hermitage Association for the preservation of a historic building which should ever be dear to Americans. I further recommend that a naval monument be established in the Vicksburg National Park. This national park gives a unique opportunity for commemorating the deeds of those gallant men who fought on water, no less than of those who fought on land, in the great civil War. Legislation should be enacted at the present session of the Congress for the Thirteenth Census. The establishment of the permanent Census Bureau affords the opportunity for a better census than we have ever had, but in order to realize the full advantage of the permanent organization, ample time must be given for preparation. There is a constantly growing interest in this country in the question of the public health. At last the public mind is awake to the fact that many diseases, notably tuberculosis, are National scourges. The work of the State and city boards of health should be supplemented by a constantly increasing interest on the part of the National Government. The Congress has already provided a bureau of public health and has provided for a hygienic laboratory. There are other valuable laws relating to the public health connected with the various departments. This whole branch of the Government should be strengthened and aided in every way. I call attention to two Government commissions which I have appointed and which have already done excellent work. The first of these has to do with the organization of the scientific work of the Government, which has grown up wholly without plan and is in consequence so unwisely distributed among the Executive Departments that much of its effect is lost for the lack of proper coordination. This commission's chief object is to introduce a planned and orderly development and operation in the place of the ill-assorted and often ineffective grouping and methods of work which have prevailed. This can not be done without legislation, nor would it be feasible to deal in detail with so complex an administrative problem by specific provisions of law. I recommend that the President be given authority to concentrate related lines of work and reduce duplication by Executive order through transfer and consolidation of lines of work. The second committee, that on Department methods, was instructed to investigate and report upon the changes needed to place the conduct of the executive force of the Government on the most economical and effective basis in the light of the best modern business practice. The committee has made very satisfactory progress. Antiquated practices and bureaucratic ways have been abolished, and a general renovation of departmental methods has been inaugurated. All that can be done by Executive order has already been accomplished or will be put into effect in the near future. The work of the main committee and its several assistant committees has produced a wholesome awakening on the part of the great body of officers and employees engaged in Government work. In nearly every Department and office there has been a careful self-inspection for the purpose of remedying any defects before they could be made the subject of adverse criticism. This has led individuals to a wider study of the work on which they were engaged, and this study has resulted in increasing their efficiency in their respective lines of work. There are recommendations of special importance from the committee on the subject of personnel and the classification of salaries which will require legislative action before they can be put into effect. It is my intention to submit to the Congress in the near future a special message on those subjects. Under our form of government voting is not merely a right but a duty, and, moreover, a fundamental and necessary duty if a man is to be a good citizen. It is well to provide that corporations shall not contribute to Presidential or National campaigns, and furthermore to provide for the publication of both contributions and expenditures. There is, however, always danger in laws of this kind, which from their very nature are difficult of enforcement; the danger being lest they be obeyed only by the honest, and disobeyed by the unscrupulous, so as to act only as a penalty upon honest men. Moreover, no such law would hamper an unscrupulous man of unlimited means from buying his own way into office. There is a very radical measure which would, I believe, work a substantial improvement in our system of conducting a campaign, although I am well aware that it will take some time for people so to familiarize themselves with such a proposal as to be willing to consider its adoption. The need for collecting large campaign funds would vanish if Congress provided an appropriation for the proper and legitimate expenses of each of the great national parties, an appropriation ample enough to meet the necessity for thorough organization and machinery, which requires a large expenditure of money. Then the stipulation should be made that no party receiving campaign funds from the Treasury should accept more than a fixed amount from any individual subscriber or donor; and the necessary publicity for receipts and expenditures could without difficulty be provided. There should be a National gallery of art established in the capital city of this country. This is important not merely to the artistic but to the material welfare of the country; and the people are to be congratulated on the fact that the movement to establish such a gallery is taking definite form under the guidance of the Smithsonian Institution. So far from there being a tariff on works of art brought into the country, their importation should be encouraged in every way. There have been no sufficient collections of objects of art by the Government, and what collections have been acquired are scattered and are generally placed in unsuitable and imperfectly lighted galleries. The Biological Survey is quietly working for the good of our agricultural interests, and is an excellent example of a Government bureau which conducts original scientific research the findings of which are of much practical utility. For more than twenty years it has studied the food habits of birds and mammals that are injurious or beneficial to agriculture, horticulture, and forestry; has distributed illustrated bulletins on the subject, and has labored to secure legislative protection for the beneficial species. The cotton boll-weevil, which has recently overspread the cotton belt of Texas and is steadily extending its range, is said to cause an annual loss of about $3,000,000. The Biological Survey has ascertained and gives wide publicity to the fact that at least 43 kinds of birds prey upon this destructive insect. It has discovered that 57 species of birds feed upon scale-insects--dreaded enemies of the fruit grower. It has shown that woodpeckers as a class, by destroying the larvae of wood-boring insects, are so essential to tree life that it is doubtful if our forests could exist without them. It has shown that cuckoos and orioles are the natural enemies of the leaf-eating caterpillars that destroy our shade and fruit trees; that our quails and sparrows consume annually hundreds of tons of seeds of noxious weeds; that hawks and owls as a class (excepting the few that kill poultry and game birds) are markedly beneficial, spending their lives in catching grasshoppers, mice, and other pests that prey upon the products of husbandry. It has conducted field experiments for the purpose of devising and perfecting simple methods for holding in check the hordes of destructive rodents--rats, mice, rabbits, gophers, prairie dogs, and ground squirrels--which annually destroy crops worth many millions of dollars; and it has published practical directions for the destruction of wolves and coyotes on the stock ranges of the West, resulting during the past year in an estimated saving of cattle and sheep valued at upwards of a million dollars. It has inaugurated a system of inspection at the principal ports of entry on both Atlantic and Pacific coasts by means of which the introduction of noxious mammals and birds is prevented, thus keeping out the mongoose and certain birds which are as much to be dreaded as the previously introduced English sparrow and the house rats and mice. In the interest of game protection it has cooperated with local officials in every State in the Union, has striven to promote uniform legislation in the several States, has rendered important service in enforcing the Federal law regulating interstate traffic in game, and has shown bow game protection may be made to yield a large revenue to the State--a revenue amounting in the case of Illinois to $128,000 in a single year. The Biological Survey has explored the faunas and floras of America with reference to the distribution of animals and plants; it has defined and mapped the natural life areas--areas in which, by reason of prevailing climatic conditions, certain kinds of animals and plants occur--and has pointed out the adaptability of these areas to the cultivation of particular crops. The results of these investigations are not only of high educational value but are worth each year to the progressive farmers of the country many times the cost of maintaining the Survey, which, it may be added, is exceedingly small. I recommend to Congress that this bureau, whose usefulness is seriously handicapped by lack of funds, be granted an appropriation in some degree commensurate with the importance of the work it is doing. I call your especial attention to the unsatisfactory condition of our foreign mail service, which, because of the lack of American steamship lines is now largely done through foreign lines, and which, particularly so far as South and Central America are concerned, is done in a manner which constitutes a serious barrier to the extension of our commerce. The time has come, in my judgment, to set to work seriously to make our ocean mail service correspond more closely with our recent commercial and political development. A beginning was made by the ocean mail act of March 3, 1891, but even at that time the act was known to be inadequate in various particulars. Since that time events have moved rapidly in our history. We have acquired Hawaii, the Philippines, and lesser islands in the Pacific. We are steadily prosecuting the great work of uniting at the Isthmus the waters of the Atlantic and the Pacific. To a greater extent than seemed probable even a dozen years ago, we may look to an American future on the sea worthy of the traditions of our past. As the first step in that direction, and the step most feasible at the present time, I recommend the extension of the ocean mail act of 1891. This act has stood for some years free from successful criticism of its principle and purpose. It was based on theories of the obligations of a great maritime nation, undisputed in our own land and followed by other nations since the beginning of steam navigation. Briefly those theories are, that it is the duty of a first-class Power so far as practicable to carry its ocean mails under its own flag;that the fast ocean steamships and their crews, required for such mail service, are valuable auxiliaries to the sea power of a nation. Furthermore, the construction of such steamships insures the maintenance in an efficient condition of the shipyards in which our battleships must be built. The expenditure of public money for the Performance of such necessary functions of government is certainly warranted, nor is it necessary to dwell upon the incidental benefits to our foreign commerce, to the shipbuilding industry, and to ship owning and navigation which will accompany the discharge of these urgent public duties, though they, too, should have weight. The only serious question is whether at this time we can afford to improve our ocean mail service as it should be improved. All doubt on this subject is removed by the reports of the Post-Office Department. For the fiscal year ended June 30, 1907, that Department estimates that the postage collected on the articles exchanged with foreign countries other than Canada and Mexico amounted to $6,579,043.48, or $3,637,226.81 more than the net cost of the service exclusive of the cost of transporting the articles between the United States exchange post-offices and the United States post-offices at which they were mailed or delivered. In other words, the Government of the United States, having assumed a monopoly of carrying the mails for the people, making a profit of over $3,600,000 by rendering a cheap and inefficient service. That profit I believe should be devoted to strengthening maritime power in those directions where it will best promote our prestige. The country is familiar with the facts of our maritime impotence in the harbors of the great and friendly Republics of South America. Following the failure of the shipbuilding bill we lost our only American line of steamers to Australasia, and that loss on the Pacific has become a serious embarrassment to the people of Hawaii, and has wholly cut off the Samoan islands from regular communication with the Pacific coast. Puget Sound, in the year, has lost over half (four out of seven) of its American steamers trading with the Orient. We now pay under the act of 1891 $4 a statute mile outward to 20-knot American mail steamships, built according to naval plans, available as cruisers, and manned by Americans. Steamships of that speed are confined exclusively to trans-Atlantic trade with New York. To steamships of 16 knots or over only $2 a mile can be paid, and it is steamships of this speed and type which are needed to meet the requirements of mail service to South America, Asia (including the Philippines), and Australia. I strongly recommend, therefore, a simple amendment to the ocean mail act of 1891 which shall authorize the Postmaster-General in his discretion to enter into contracts for the transportation of mails to the Republics of South America, to Asia, the Philippines, and Australia at a rate not to exceed $4 a mile for steamships of 16 knots speed or upwards, subject to the restrictions and obligations of the act of 1891. The profit of $3,600,000 which has been mentioned will fully cover the maximum annual expenditure involved in this recommendation, and it is believed will in time establish the lines so urgently needed. The proposition involves no new principle, but permits the efficient discharge of public functions now inadequately performed or not performed at all. Not only there is not now, but there never has been, any other nation in the world so wholly free from the evils of militarism as is ours. There never has been any other large nation, not even China, which for so long a period has had relatively to its numbers so small a regular army as has ours. Never at any time in our history has this Nation suffered from militarism or been in the remotest danger of suffering from militarism. Never at any time of our history has the Regular Army been of a size which caused the slightest appreciable tax upon the tax-paying citizens of the Nation. Almost always it has been too small in size and underpaid. Never in our entire history has the Nation suffered in the least particular because too much care has been given to the Army, too much prominence given it, too much money spent upon it, or because it has been too large. But again and again we have suffered because enough care has not been given to it, because it has been too small, because there has not been sufficient preparation in advance for possible war. Every foreign war in which we have engaged has cost us many times the amount which, if wisely expended during the preceding years of peace on the Regular Army, would have insured the war ending in but a fraction of the time and but for a fraction of the cost that was actually the case. As a Nation we have always been shortsighted in providing for the efficiency of the Army in time of peace. It is nobody's especial interest to make such provision and no one looks ahead to war at any period, no matter how remote, as being a serious possibility; while an improper economy, or rather niggardliness, can be practiced at the expense of the Army with the certainty that those practicing it will not be called to account therefor, but that the price will be paid by the unfortunate persons who happen to be in office when a war does actually come. I think it is only lack of foresight that troubles us, not any hostility to the Army. There are, of course, foolish people who denounce any care of the Army or Navy as "militarism," but I do not think that these people are numerous. This country has to contend now, and has had to contend in the past, with many evils, and there is ample scope for all who would work for reform. But there is not one evil that now exists, or that ever has existed in this country, which is, or ever has been, owing in the smallest part to militarism. Declamation against militarism has no more serious place in an earnest and intelligent movement for righteousness in this country than declamation against the worship of Baal or Astaroth. It is declamation against a non-existent evil, one which never has existed in this country, and which has not the slightest chance of appearing here. We are glad to help in any movement for international peace, but this is because we sincerely believe that it is our duty to help all such movements provided they are sane and rational, and not because there is any tendency toward militarism on our part which needs to be cured. The evils we have to fight are those in connection with industrialism, not militarism. Industry is always necessary, just as war is sometimes necessary. Each has its price, and industry in the United States now exacts, and has always exacted, a far heavier toll of death than all our wars put together. The statistics of the railroads of this country for the year ended June 30, 1906, the last contained in the annual statistical report of the Interstate Commerce Commission, show in that one year a total of 108,324 casualties to persons, of which 10,618 represent the number of persons killed. In that wonderful hive of human activity, Pittsburg, the deaths due to industrial accidents in 1906 were 919, all the result of accidents in mills, mines or on railroads. For the entire country, therefore, it is safe to say that the deaths due to industrial accidents aggregate in the neighborhood of twenty thousand a year. Such a record makes the death rate in all our foreign wars utterly trivial by comparison. The number of deaths in battle in all the foreign wars put together, for the last century and a quarter, aggregate considerably less than one year's death record for our industries. A mere glance at these figures is sufficient to show the absurdity of the outcry against militarism. But again and again in the past our little Regular Army has rendered service literally vital to the country, and it may at any time have to do so in the future. Its standard of efficiency and instruction is higher now than ever in the past. But it is too small. There are not enough officers; and it is impossible to secure enough enlisted men. We should maintain in peace a fairly complete skeleton of a large army. A great and long-continued war would have to be fought by volunteers. But months would pass before any large body of efficient volunteers could be put in the field, and our Regular Army should be large enough to meet any immediate need. In particular it is essential that we should possess a number of extra officers trained in peace to perform efficiently the duties urgently required upon the breaking out of war. The Medical Corps should be much larger than the needs of our Regular Army in war. Yet at present it is smaller than the needs of the service demand even in peace. The Spanish war occurred less than ten years ago. The chief loss we suffered in it was by disease among the regiments which never left the country. At the moment the Nation seemed deeply impressed by this fact; yet seemingly it has already been forgotten, for not the slightest effort has been made to prepare a medical corps of sufficient size to prevent the repetition of the same disaster on a much larger scale if we should ever be engaged in a serious conflict. The trouble in the Spanish war was not with the then existing officials of the War Department; it was with the representatives of the people as a whole who, for the preceding thirty years, had declined to make the necessary provision for the Army. Unless ample provision is now made by Congress to put the Medical Corps where it should be put disaster in the next war is inevitable, and the responsibility will not lie with those then in charge of the War Department, but with those who now decline to make the necessary provision. A well organized medical corps, thoroughly trained before the advent of war in all the important administrative duties of a military sanitary corps, is essential to the efficiency of any large army, and especially of a large volunteer army. Such knowledge of medicine and surgery as is possessed by the medical profession generally will not alone suffice to make an efficient military surgeon. He must have, in addition, knowledge of the administration and sanitation of large field hospitals and camps, in order to safeguard the health and lives of men intrusted in great numbers to his care. A bill has long been pending before the Congress for the reorganization of the Medical Corps; its passage is urgently needed. But the Medical Department is not the only department for which increased provision should be made. The rate of pay for the officers should be greatly increased; there is no higher type of citizen than the American regular officer, and he should have a fair reward for his admirable work. There should be a relatively even greater increase in the pay for the enlisted men. In especial provision should be made for establishing grades equivalent to those of warrant officers in the Navy which should be open to the enlisted men who serve sufficiently long and who do their work well. Inducements should be offered sufficient to encourage really good men to make the Army a life occupation. The prime needs of our present Army is to secure and retain competent noncommissioned officers. This difficulty rests fundamentally on the question of pay. The noncommissioned officer does not correspond with an unskilled laborer; he corresponds to the best type of skilled workman or to the subordinate official in civil institutions. Wages have greatly increased in outside occupations in the last forty years and the pay of the soldier, like the pay of the officers, should be proportionately increased. The first sergeant of a company, if a good man, must be one of such executive and administrative ability, and such knowledge of his trade, as to be worth far more than we at present pay him. The same is true of the regimental sergeant major. These men should be men who had fully resolved to make the Army a life occupation and they should be able to look forward to ample reward; while only men properly qualified should be given a chance to secure these final rewards. The increase over the present pay need not be great in the lower grades for the first one or two enlistments, but the increase should be marked for the noncommissioned officers of the upper grades who serve long enough to make it evident that they intend to stay permanently in the Army, while additional pay should be given for high qualifications in target practice. The position of warrant officer should be established and there should be not only an increase of pay, but an increase of privileges and allowances and dignity, so as to make the grade open to noncommissioned officers capable of filling them desirably from every standpoint. The rate of desertion in our Army now in time of peace is alarming. The deserter should be treated by public opinion as a man guilty of the greatest crime; while on the other hand the man who serves steadily in the Army should be treated as what he is, that is, as preeminently one of the best citizens of this Republic. After twelve years' service in the Army, my own belief is that the man should be given a preference according to his ability for certain types of office over all civilian applicants without examination. This should also apply, of course, to the men who have served twelve years in the Navy. A special corps should be provided to do the manual labor now necessarily demanded of the privates themselves. Among the officers there should be severe examinations to weed out the unfit up to the grade of major. From that position on appointments should be solely by selection and it should be understood that a man of merely average capacity could never get beyond the position of major, while every man who serves in any grade a certain length of time prior to promotion to the next grade without getting the promotion to the next grade should be forthwith retired. The practice marches and field maneuvers of the last two or three years have been invaluable to the Army. They should be continued and extended. A rigid and not a perfunctory examination of physical capacity has been provided for the higher grade officers. This will work well. Unless an officer has a good physique, unless he can stand hardship, ride well, and walk fairly, he is not fit for any position, even after he has become a colonel. Before he has become a colonel the need for physical fitness in the officers is almost as great as in the enlisted man. I hope speedily to see introduced into the Army a far more rigid and thoroughgoing test of horsemanship for all field officers than at present. There should be a Chief of Cavalry just as there is a Chief of Artillery. Perhaps the most important of all legislation needed for the benefit of the Army is a law to equalize and increase the pay of officers and enlisted men of the Army, Navy, Marine Corps, and Revenue-Cutter Service. Such a bill has been prepared, which it is hoped will meet with your favorable consideration. The next most essential measure is to authorize a number of extra officers as mentioned above. To make the Army more attractive to enlisted men, it is absolutely essential to create a service corps, such as exists in nearly every modern army in the world, to do the skilled and unskilled labor, inseparably connected with military administration, which is now exacted, without just compensation, of enlisted men who voluntarily entered the Army to do service of an altogether different kind. There are a number of other laws necessary to so organize the Army as to promote its efficiency and facilitate its rapid expansion in time of war; but the above are the most important. It was hoped The Hague Conference might deal with the question of the limitation of armaments. But even before it had assembled informal inquiries had developed that as regards naval armaments, the only ones in which this country had any interest, it was hopeless to try to devise any plan for which there was the slightest possibility of securing the assent of the nations gathered at The Hague. No plan was even proposed which would have had the assent of more than one first class Power outside of the United States. The only plan that seemed at all feasible, that of limiting the size of battleships, met with no favor at all. It is evident, therefore, that it is folly for this Nation to base any hope of securing peace on any international agreement as to the limitations of armaments. Such being the fact it would be most unwise for us to stop the upbuilding of our Navy. To build one battleship of the best and most advanced type a year would barely keep our fleet up to its present force. This is not enough. In my judgment, we should this year provide for four battleships. But it is idle to build battleships unless in addition to providing the men, and the means for thorough training, we provide the auxiliaries for them, unless we provide docks, the coaling stations, the colliers and supply ships that they need. We are extremely deficient in coaling stations and docks on the Pacific, and this deficiency should not longer be permitted to exist. Plenty of torpedo boats and destroyers should be built. Both on the Atlantic and Pacific coasts, fortifications of the best type should be provided for all our greatest harbors. We need always to remember that in time of war the Navy is not to be used to defend harbors and sea-coast cities; we should perfect our system of coast fortifications. The only efficient use for the Navy is for offense. The only way in which it can efficiently protect our own coast against the possible action of a foreign navy is by destroying that foreign navy. For defense against a hostile fleet which actually attacks them, the coast cities must depend upon their forts, mines, torpedoes, submarines, and torpedo boats and destroyers. All of these together are efficient for defensive purposes, but they in no way supply the place of a thoroughly efficient navy capable of acting on the offensive; for parrying never yet won a fight. It can only be won by hard hitting, and an aggressive sea-going navy alone can do this hard hitting of the offensive type. But the forts and the like are necessary so that the Navy may be footloose. In time of war there is sure to be demand, under pressure, of fright, for the ships to be scattered so as to defend all kind of ports. Under penalty of terrible disaster, this demand must be refused. The ships must be kept together, and their objective made the enemies' fleet. If fortifications are sufficiently strong, no modern navy will venture to attack them, so long as the foe has in existence a hostile navy of anything like the same size or efficiency. But unless there exists such a navy then the fortifications are powerless by themselves to secure the victory. For of course the mere deficiency means that any resolute enemy can at his leisure combine all his forces upon one point with the certainty that he can take it. Until our battle fleet is much larger than at present it should never be split into detachments so far apart that they could not in event of emergency be speedily united. Our coast line is on the Pacific just as much as on the Atlantic. The interests of California, Oregon, and Washington are as emphatically the interests of the whole Union as those of Maine and New York, of Louisiana and Texas. The battle fleet should now and then be moved to the Pacific, just as at other times it should be kept in the Atlantic. When the Isthmian Canal is built the transit of the battle fleet from one ocean to the other will be comparatively easy. Until it is built I earnestly hope that the battle fleet will be thus shifted between the two oceans every year or two. The marksmanship on all our ships has improved phenomenally during the last five years. Until within the last two or three years it was not possible to train a battle fleet in squadron maneuvers under service conditions, and it is only during these last two or three years that the training under these conditions has become really effective. Another and most necessary stride in advance is now being taken. The battle fleet is about starting by the Straits of Magellan to visit the Pacific coast.. Sixteen battleships are going under the command of Rear-Admiral Evans, while eight armored cruisers and two other battleships will meet him at San Francisco, whither certain torpedo destroyers are also going. No fleet of such size has ever made such a voyage, and it will be of very great educational use to all engaged in it. The only way by which to teach officers and men how to handle the fleet so as to meet every possible strain and emergency in time of war is to have them practice under similar conditions in time of peace. Moreover, the only way to find out our actual needs is to perform in time of peace whatever maneuvers might be necessary in time of war. After war is declared it is too late to find out the needs; that means to invite disaster. This trip to the Pacific will show what some of our needs are and will enable us to provide for them. The proper place for an officer to learn his duty is at sea, and the only way in which a navy can ever be made efficient is by practice at sea, under all the conditions which would have to be met if war existed. I bespeak the most liberal treatment for the officers and enlisted men of the Navy. It is true of them, as likewise of the officers and enlisted men of the Army, that they form a body whose interests should be close to the heart of every good American. In return the most rigid performance of duty should be exacted from them. The reward should be ample when they do their best; and nothing less than their best should be tolerated. It is idle to hope for the best results when the men in the senior grades come to those grades late in life and serve too short a time in them. Up to the rank of lieutenant-commander promotion in the Navy should be as now, by seniority, subject, however, to such rigid tests as would eliminate the unfit. After the grade of lieutenant-commander, that is, when we come to the grade of command rank, the unfit should be eliminated in such manner that only the conspicuously fit would remain, and sea service should be a principal test of fitness. Those who are passed by should, after a certain length of service in their respective grades, be retired. Of a given number of men it may well be that almost all would make good lieutenants and most of them good lieutenant-commanders, while only a minority be fit to be captains, and but three or four to be admirals. Those who object to promotion otherwise than by mere seniority should reflect upon the elementary fact that no business in private life could be successfully managed if those who enter at the lowest rungs of the ladder should each in turn, if he lived, become the head of the firm, its active director, and retire after he had held the position a few months. On its face such a scheme is an absurdity. Chances for improper favoritism can be minimized by a properly formed board; such as the board of last June, which did such conscientious and excellent work in elimination. If all that ought to be done can not now be done, at least let a beginning be made. In my last three annual Messages, and in a special Message to the last Congress, the necessity for legislation that will cause officers of the line of the Navy to reach the grades of captain and rear-admiral at less advanced ages and which will cause them to have more sea training and experience in the highly responsible duties of those grades, so that they may become thoroughly skillful in handling battleships, divisions, squadrons, and fleets in action, has been fully explained and urgently recommended. Upon this subject the Secretary of the Navy has submitted detailed and definite recommendations which have received my approval, and which, if enacted into law, will accomplish what is immediately necessary, and will, as compared with existing law, make a saving of more than five millions of dollars during the next seven years. The navy personnel act of 1899 has accomplished all that was expected of it in providing satisfactory periods of service in the several subordinate grades, from the grade of ensign to the grade of lieutenant-commander, but the law is inadequate in the upper grades and will continue to be inadequate on account of the expansion of the personnel since its enactment. Your attention is invited to the following quotations from the report of the personnel board of 1906, of which the Assistant Secretary of the Navy was president: "Congress has authorized a considerable increase in the number of midshipmen at the Naval Academy, and these midshipmen upon graduation are promoted to ensign and lieutenant (junior-grade). But no provision has been made for a corresponding increase in the upper grades, the result being that the lower grades will become so congested that a midshipman now in one of the lowest classes at Annapolis may possibly not be promoted to lieutenant until he is between 45 and 50 years of age. So it will continue under the present law, congesting at the top and congesting at the bottom. The country fails to get from the officers of the service the best that is in them by not providing opportunity for their normal development and training. The board believes that this works a serious detriment to the efficiency of the Navy and is a real menace to the public safety." As stated in my special Message to the last Congress: "I am firmly of the opinion that unless the present conditions of the higher commissioned personnel is rectified by judicious legislation the future of our Navy will be gravely compromised." It is also urgently necessary to increase the efficiency of the Medical Corps of the Navy. Special legislation to this end has already been proposed; and I trust it may be enacted without delay. It must be remembered that everything done in the Navy to fit it to do well in time of war must be done in time of peace. Modern wars are short; they do not last the length of time requisite to build a battleship; and it takes longer to train the officers and men to do well on a battleship than it takes to build it. Nothing effective can be done for the Navy once war has begun, and the result of the war, if the combatants are otherwise equally matched, will depend upon which power has prepared best in time of peace. The United States Navy is the best guaranty the Nation has that its honor and interest will not be neglected; and in addition it offers by far the best insurance for peace that can by human ingenuity be devised. I call attention to the report of the official Board of Visitors to the Naval Academy at Annapolis which has been forwarded to the Congress. The report contains this paragraph: "Such revision should be made of the courses of study and methods of conducting and marking examinations as will develop and bring out the average all-round ability of the midshipman rather than to give him prominence in any one particular study. The fact should be kept in mind that the Naval Academy is not a university but a school, the primary object of which is to educate boys to be efficient naval officers. Changes in curriculum, therefore, should be in the direction of making the course of instruction less theoretical and more practical. No portion of any future class should be graduated in advance of the full four years' course, and under no circumstances should the standard of instruction be lowered. The Academy in almost all of its departments is now magnificently equipped, and it would be very unwise to make the course of instruction less exacting than it is to-day." Acting upon this suggestion I designated three seagoing officers, Capt. Richard Wainwright, Commander Robert S. Griffin, and Lieut. Commander Albert L. Key, all graduates of the Academy, to investigate conditions and to recommend to me the best method of carrying into effect this general recommendation. These officers performed the duty promptly and intelligently, and, under the personal direction of Capt. Charles J. Badger, Superintendent of the Academy, such of the proposed changes as were deemed to be at present advisable were put into effect at the beginning of the academic year, October 1, last. The results, I am confident, will be most beneficial to the Academy, to the midshipmen, and to the Navy. In foreign affairs this country's steady policy is to behave toward other nations as a strong and self-respecting man should behave toward the other men with whom he is brought into contact. In other words, our aim is disinterestedly to help other nations where such help can be wisely given without the appearance of meddling with what does not concern us; to be careful to act as a good neighbor; and at the same time, in good-natured fashion, to make it evident that we do not intend to be imposed upon. The Second International Peace Conference was convened at The Hague on the 15th of June last and remained in session until the 18th of October. For the first time the representatives of practically all the civilized countries of the world united in a temperate and kindly discussion of the methods by which the causes of war might be narrowed and its injurious effects reduced. Although the agreements reached in the Conference did not in any direction go to the length hoped for by the more sanguine, yet in many directions important steps were taken, and upon every subject on the programme there was such full and considerate discussion as to justify the belief that substantial progress has been made toward further agreements in the future. Thirteen conventions were agreed upon embodying the definite conclusions which had been reached, and resolutions were adopted marking the progress made in matters upon which agreement was not yet sufficiently complete to make conventions practicable. The delegates of the United States were instructed to favor an agreement for obligatory arbitration, the establishment of a permanent court of arbitration to proceed judicially in the hearing and decision of international causes, the prohibition of force for the collection of contract debts alleged to be due from governments to citizens of other countries until after arbitration as to the justice and amount of the debt and the time and manner of payment, the immunity of private property at sea, the better definition of the rights of neutrals, and, in case any measure to that end should be introduced, the limitation of armaments. In the field of peaceful disposal of international differences several important advances were made. First, as to obligatory arbitration. Although the Conference failed to secure a unanimous agreement upon the details of a convention for obligatory arbitration, it did resolve as follows; "It is unanimous: (1) In accepting the principle for obligatory arbitration; (2) In declaring that certain differences, and notably those relating to the interpretation and application of international conventional stipulations are susceptible of being submitted to obligatory arbitration without any restriction." In view of the fact that as a result of the discussion the vote upon the definite treaty of obligatory arbitration, which was proposed, stood 32 in favor to 9 against the adoption of the treaty, there can be little doubt that the great majority of the countries of the world have reached a point where they are now ready to apply practically the principles thus unanimously agreed upon by the Conference. The second advance, and a very great one, is the agreement which relates to the use of force for the collection of contract debts. Your attention is invited to the paragraphs upon this subject in my Message of December, 1906, and to the resolution of the Third American Conference at Rio in the summer of 1906. The convention upon this subject adopted by the Conference substantially as proposed by the American delegates is as follows:: "In order to avoid between nations armed conflicts of a purely pecuniary origin arising from contractual debts claimed of the government of one country by the government of another country to be due to its nationals, the signatory Powers agree not to have recourse to armed force for the collection of such contractual debts. "However, this stipulation shall not be applicable when the debtor State refuses or leaves unanswered an offer to arbitrate, or, in case of acceptance, makes it impossible to formulate the terms of submission, or, after arbitration, fails to comply with the award rendered. "It is further agreed that arbitration here contemplated shall be in conformity, as to procedure, with Chapter III of the Convention for the Pacific Settlement of International Disputes adopted at The Hague, and that it shall determine, in so far as there shall be no agreement between the parties, the justice and the amount of the debt, the time and mode of payment thereof." Such a provision would have prevented much injustice and extortion in the past, and I cannot doubt that its effect in the future will be most salutary. A third advance has been made in amending and perfecting the convention of 1899 for the voluntary settlement of international disputes, and particularly the extension of those parts of that convention which relate to commissions of inquiry. The existence of those provisions enabled the Governments of Great Britain and Russia to avoid war, notwithstanding great public excitement, at the time of the Dogger Bank incident, and the new convention agreed upon by the Conference gives practical effect to the experience gained in that inquiry. Substantial progress was also made towards the creation of a permanent judicial tribunal for the determination of international causes. There was very full discussion of the proposal for such a court and a general agreement was finally reached in favor of its creation. The Conference recommended to the signatory Powers the adoption of a draft upon which it agreed for the organization of the court, leaving to be determined only the method by which the judges should be selected. This remaining unsettled question is plainly one which time and good temper will solve. A further agreement of the first importance was that for the creation of an international prize court. The constitution, organization and procedure of such a tribunal were provided for in detail. Anyone who recalls the injustices under which this country suffered as a neutral power during the early part of the last century can not fail to see in this provision for an international prize court the great advance which the world is making towards the substitution of the rule of reason and justice in place of simple force. Not only will the international prize court be the means of protecting the interests of neutrals, but it is in itself a step towards the creation of the more general court for the hearing of international controversies to which reference has just been made. The organization and action of such a prize court can not fail to accustom the different countries to the submission of international questions to the decision of an international tribunal, and we may confidently expect the results of such submission to bring about a general agreement upon the enlargement of the practice. Numerous provisions were adopted for reducing the evil effects of war and for defining the rights and duties of neutrals. The Conference also provided for the holding of a third Conference within a period similar to that which elapsed between the First and Second Conferences. The delegates of the United States worthily represented the spirit of the American people and maintained with fidelity and ability the policy of our Government upon all the great questions discussed in the Conference. The report of the delegation, together with authenticated copies of the conventions signed, when received, will be laid before the Senate for its consideration. When we remember how difficult it is for one of our own legislative bodies, composed of citizens of the same country, speaking the same language, living under the same laws, and having the same customs, to reach an agreement, or even to secure a majority upon any difficult and important subject which is proposed for legislation, it becomes plain that the representatives of forty-five different countries, speaking many different languages, accustomed to different methods of procedure, with widely diverse interests, who discussed so many different subjects and reached agreements upon so many, are entitled to grateful appreciation for the wisdom, patience, and moderation with which they have discharged their duty. The example of this temperate discussion, and the agreements and the efforts to agree, among representatives of all the nations of the earth, acting with universal recognition of the supreme obligation to promote peace, can. not fail to be a powerful influence for good in future international relations. A year ago in consequence of a revolutionary movement in Cuba which threatened the immediate return to chaos of the island, the United States intervened, sending down an army and establishing a provisional government under Governor Magoon. Absolute quiet and prosperity have returned to the island because of this action. We are now taking steps to provide for elections in the island and our expectation is within the coming year to be able to turn the island over again to government chosen by the people thereof. Cuba is at our doors. It is not possible that this Nation should permit Cuba again to sink into the condition from which we rescued it. All that we ask of the Cuban people is that they be prosperous, that they govern themselves so as to bring content, order and progress to their island, the Queen of the Antilles; and our only interference has been and will be to help them achieve these results. An invitation has been extended by Japan to the Government and people of the United States to participate in a great national exposition to be held at Tokyo from April 1 to October 31, 1912, and in which the principal countries of the world are to be invited to take part. This is an occasion of special interest to all the nations of the world, and peculiarly so to us; for it is the first instance in which such a great national exposition has been held by a great power dwelling on the Pacific; and all the nations of Europe and America will, I trust, join in helping to success this first great exposition ever held by a great nation of Asia. The geographical relations of Japan and the United States as the possessors of such large portions of the coasts of the Pacific, the intimate trade relations already existing between the two countries, the warm friendship which has been maintained between them without break since the opening of Japan to intercourse with the western nations, and her increasing wealth and production, which we regard with hearty goodwill and wish to make the occasion of mutually beneficial commerce, all unite in making it eminently desirable that this invitation should be accepted. I heartily recommend such legislation as will provide in generous fashion for the representation of this Government and. its people in the proposed exposition. Action should be taken now. We are apt to underestimate the time necessary for preparation in such cases. The invitation to the French Exposition of 1900 was brought to the attention of the Congress by President Cleveland in December, 1895; and so many are the delays necessary to such proceedings that the period of font years and a half which then intervened before the exposition proved none too long for the proper preparation of the exhibits. The adoption of a new tariff by Germany, accompanied by conventions for reciprocal tariff concessions between that country and most of the other countries of continental Europe, led the German Government to -ire the notice necessary to terminate the reciprocal commercial agreement with this country proclaimed July 13, 1900. The notice was to take effect on the 1st of March, 1906, and in default of some other arrangements this would have left the exports from the United States to Germany subject to the general German tariff duties, from 25 to 50 per cent higher than the conventional duties imposed upon the goods of most of our competitors for German trade. Under a special agreement made between the two Governments in February, 1906, the German Government postponed the operation of their notice until the 30th of June, 1907. In the meantime, deeming it to be my duty to make every possible effort to prevent a tariff war between the United States and Germany arising from misunderstanding by either country of the conditions existing in the other, and acting upon the invitation of the German Government, I sent to Berlin a commission composed of competent experts in the operation and administration of the customs tariff, from the Departments of the Treasury and Commerce and Labor. This commission was engaged for several mouths in conference with a similar commission appointed by the German Government, under instructions, so far as practicable, to reach a common understanding as to all the facts regarding the tariffs of the United States and Germany material and relevant to the trade relations between the two countries. The commission reported, and upon the basis of the report, a further temporary commercial agreement was entered into by the two countries, pursuant to which, in the exercise of the authority conferred upon the President by the third section of the tariff act of July 24, 1897, I extended the reduced tariff rates provided for in that section to champagne and all other sparkling wines, and pursuant to which the German conventional or minimum tariff rates were extended to about 96 1/2 per cent of all the exports from the United States to Germany. This agreement is to remain in force until the 30th of June, 1908, and until six months after notice by either party to terminate it. The agreement and the report of the commission on which it is based will be laid before the Congress for its information. This careful examination into the tariff relations between the United States and Germany involved an inquiry into certain of our methods of administration which had been the cause of much complaint on the part of German exporters. In this inquiry I became satisfied that certain vicious and unjustifiable practices had grown up in our customs administration, notably the practice of determining values of imports upon detective reports never disclosed to the persons whose interests were affected. The use of detectives, though often necessary, tends towards abuse, and should be carefully guarded. Under our practice as I found it to exist in this case, the abuse had become gross and discreditable. Under it, instead of seeking information as to the market value of merchandise from the well-known and respected members of the commercial community in the country of its production, secret statements were obtained from informers and discharged employees and business rivals, and upon this kind of secret evidence the values of imported goods were frequently raised and heavy penalties were frequently imposed upon importers who were never permitted to know what the evidence was and who never had an opportunity to meet it. It is quite probable that this system tended towards an increase of the duties collected upon imported goods, but I conceive it to be a violation of law to exact more duties than the law provides, just as it is a violation to admit goods upon the payment of less than the legal rate of duty. This practice was repugnant to the spirit of American law and to American sense of justice. In the judgment of the most competent experts of the Treasury Department and the Department of Commerce and Labor it was wholly unnecessary for the due collection of the customs revenues, and the attempt to defend it merely illustrates the demoralization which naturally follows from a long continued course of reliance upon such methods. I accordingly caused the regulations governing this branch of the customs service to be modified so that values are determined upon a hearing in which all the parties interested have an opportunity to be heard and to know the evidence against them. Moreover our Treasury agents are accredited to the government of the country in which they seek information, and in Germany receive the assistance of the quasi-official chambers of commerce in determining the actual market value of goods, in accordance with what I am advised to be the true construction of the law. These changes of regulations were adapted to the removal of such manifest abuses that I have not felt that they ought to be confined to our relations with Germany; and I have extended their operation to all other countries which have expressed a desire to enter into similar administrative relations. I ask for authority to reform the agreement with China under which the indemnity of 1900 was fixed, by remitting and cancelling the obligation of China for the payment of all that part of the stipulated indemnity which is in excess of the sum of eleven million, six hundred and fifty-five thousand, four hundred and ninety-two dollars and sixty-nine cents, and interest at four per cent. After the rescue of the foreign legations in Peking during the Boxer troubles in 1900 the Powers required from China the payment of equitable indemnities to the several nations, and the final protocol under which the troops were withdrawn, signed at Peking, September 7, 1901, fixed the amount of this indemnity allotted to the United States at over $20,000,000, and China paid, up to and including the 1st day of June last, a little over $6,000,000. It was the first intention of this Government at the proper time, when all claims had been presented and all expenses ascertained as fully as possible, to revise the estimates and account, and as a proof of sincere friendship for China voluntarily to release that country from its legal liability for all payments in excess of the sum which should prove to be necessary for actual indemnity to the United States and its citizens. This Nation should help in every practicable way in the education of the Chinese people, so that the vast and populous Empire of China may gradually adapt itself to modern conditions. One way of doing this is by promoting the coming of Chinese students to this country and making it attractive to them to take courses at our universities and higher educational institutions. Our educators should, so far as possible, take concerted action toward this end. On the courteous invitation of the President of Mexico, the Secretary of State visited that country in September and October and was received everywhere with the greatest kindness and hospitality. He carried from the Government of the United States to our southern neighbor a message of respect and good will and of desire for better acquaintance and increasing friendship. The response from the Government and the people of Mexico was hearty and sincere. No pains were spared to manifest the most friendly attitude and feeling toward the United States. In view of the close neighborhood of the two countries the relations which exist between Mexico and the United States are just cause for gratification. We have a common boundary of over 1,500 miles from the Gulf of Mexico to the Pacific. Much of it is marked only by the shifting waters of the Rio Grande. Many thousands of Mexicans are residing upon our side of the line and it is estimated that over 40,000 Americans are resident in Mexican territory and that American investments in Mexico amount to over seven hundred million dollars. The extraordinary industrial and commercial prosperity of Mexico has been greatly promoted by American enterprise, and Americans are sharing largely in its results. The foreign trade of the Republic already exceeds $240,000,000 per annum, and of this two-thirds both of exports and imports are exchanged with the United States. Under these circumstances numerous questions necessarily arise between the two countries. These questions are always approached and disposed of in a spirit of mutual courtesy and fair dealing. Americans carrying on business in Mexico testify uniformly to the kindness and consideration with which they are treated and their sense of the security of their property and enterprises under the wise administration of the great statesman who has so long held the office of Chief Magistrate of that Republic. The two Governments have been uniting their efforts for a considerable time past to aid Central America in attaining the degree of peace and order which have made possible the prosperity of the northern ports of the Continent. After the peace between Guatemala, Honduras, and Salvador, celebrated under the circumstances described in my last Message, a new war broke out between the Republics of Nicaragua, Honduras, and Salvador. The effort to compose this new difficulty has resulted in the acceptance of the joint suggestion of the Presidents of Mexico and of the United States for a general peace conference between all the countries of Central America. On the 17th day of September last a protocol was signed between the representatives of the five Central American countries accredited to this Government agreeing upon a conference to be held in the City of Washington "in order to devise the means of preserving the good relations among said Republics and bringing about permanent peace in those countries." The protocol includes the expression of a wish that the Presidents of the United States and Mexico should appoint "representatives to lend their good and impartial offices in a purely friendly way toward the realization of the objects of the conference." The conference is now in session and will have our best wishes and, where it is practicable, our friendly assistance. One of the results of the Pan American Conference at Rio Janeiro in the summer of 1906 has been a great increase in the activity and usefulness of the International Bureau of American Republics. That institution, which includes all the American Republics in its membership and brings all their representatives together, is doing a really valuable work in informing the people of the United States about the other Republics and in making the United States known to them. Its action is now limited by appropriations determined when it was doing a work on a much smaller scale and rendering much less valuable service. I recommend that the contribution of this Government to the expenses of the Bureau be made commensurate with its increased work.
No nation has greater resources than ours, and I think it can be truthfully said that the citizens of no nation possess greater energy and industrial ability. In no nation are the fundamental business conditions sounder than in ours at this very moment; and it is foolish, when such is the case, for people to hoard money instead of keeping it in sound banks; for it is such hoarding that is the immediate occasion of money stringency. Moreover, as a rule, the business of our people is conducted with honesty and probity, and this applies alike to farms and factories, to railroads and banks, to all our legitimate commercial enterprises. In any large body of men, however, there are certain to be some who are dishonest, and if the conditions are such that these men prosper or commit their misdeeds with impunity, their example is a very evil thing for the community. Where these men are business men of great sagacity and of temperament both unscrupulous and reckless, and where the conditions are such that they act without supervision or control and at first without effective check from public opinion, they delude many innocent people into making investments or embarking in kinds of business that are really unsound. When the misdeeds of these successfully dishonest men are discovered, suffering comes not only upon them, but upon the innocent men whom they have misled. It is a painful awakening, whenever it occurs; and, naturally, when it does occur those who suffer are apt to forget that the longer it was deferred the more painful it would be. In the effort to punish the guilty it is both wise and proper to endeavor so far as possible to minimize the distress of those who have been misled by the guilty. Yet it is not possible to refrain because of such distress from striving to put an end to the misdeeds that are the ultimate causes of the suffering, and, as a means to this end, where possible to punish those responsible for them. There may be honest differences of opinion as to many governmental policies; but surely there can be no such differences as to the need of unflinching perseverance in the war against successful dishonesty. In my Message to the Congress on December 5, 1905, I said: "If the folly of man mars the general well-being, then those who are innocent of the folly will have to pay part of the penalty incurred by those who are guilty of the folly. A panic brought on by the speculative folly of part of the business community would hurt the whole business community; but such stoppage of welfare, though it might be severe, would not be lasting. In the long run, the one vital factor in the permanent prosperity of the country is the high individual character of the average American worker, the average American citizen, no matter whether his work be mental or manual, whether he be farmer or wage-worker, business man or professional man. "In our industrial and social system the interests of all men are so closely intertwined that in the immense majority of cases a straight-dealing man, who by his efficiency, by his ingenuity and industry, benefits himself, must also benefit others. Normally, the man of great productive capacity who becomes rich by guiding the labor of many other men does so by enabling them to produce more than they could produce without his guidance; and both he and they share in the benefit, which comes also to the public at large. The superficial fact that the sharing may be unequal must never blind us to the underlying fact that there is this sharing, and that the benefit comes in some degree to each man concerned.. Normally, the wageworker, the man of small means, and the average consumer, as well as the average producer, are all alike helped by making conditions such that the man of exceptional business ability receives an exceptional reward for his ability Something can be done by legislation to help the general prosperity; but no such help of a permanently beneficial character can be given to the less able and less fortunate save as the results of a policy which shall inure to the advantage of all industrious and efficient people who act decently; and this is only another way of saying that any benefit which comes to the less able and less fortunate must of necessity come even more to the more able and more fortunate. If, therefore, the less fortunate man is moved by envy of his more fortunate brother to strike at the conditions under which they have both, though unequally, prospered, the result will assuredly be that while damage may come to the one struck at, it will visit with an even heavier load the one who strikes the blow. Taken as a whole, we must all go up or go down together. "Yet, while not merely admitting, but insisting upon this, it is also true that where there is no governmental restraint or supervision some of the exceptional men use their energies, not in ways that are for the common good, but in ways which tell against this common good. The fortunes amassed through corporate organization are now so large, and vest such power in those that wield them, as to make it a matter of necessity to give to the sovereign--that is, to the Government, which represents the people as a whole--some effective power of supervision over their corporate use. In order to insure a healthy social and industrial life, every big corporation should be held responsible by, and be accountable to, some sovereign strong enough to control its conduct. I am in no sense hostile to corporations. This is an age of combination, and any effort to prevent all combination will be not only useless, but in the end vicious, because of the contempt for law which the failure to enforce law inevitably produces. We should, moreover, recognize in cordial and ample fashion the immense good effected by corporate agencies in a country such as ours, and the wealth of intellect, energy, and fidelity devoted to their service, and therefore normally to the service of the public, by their officers and directors. The corporation has come to stay, just as the trade union has come to stay. Each can do and has done great good. Each should be favored so long as it does good. But each should be sharply checked where it acts against law and justice. "The makers of our National Constitution provided especially that the regulation of interstate commerce should come within the sphere of the General Government. The arguments in favor of their taking this stand were even then overwhelming. But they are far stronger to-day, in view of the enormous development of great business agencies, usually corporate in form. Experience has shown conclusively that it is useless to try to get any adequate regulation and supervision of these great corporations by State action. Such regulation and supervision can only be effectively exercised by a sovereign whose jurisdiction is coextensive with the field of work of the corporations--that is, by the National Government. I believe that this regulation and supervision can be obtained by the enactment of law by the Congress. Our steady aim should be by legislation, cautiously and carefully undertaken, but resolutely persevered in, to assert the sovereignty of the National Government by affirmative action. "This is only in form an innovation. In substance it is merely a restoration; for from the earliest time such regulation of industrial activities has been recognized in the action of the lawmaking bodies; and all that I propose is to meet the changed conditions in such manner as will prevent the Commonwealth abdicating the power it has always possessed, not only in this country, but also in England before and since this country became a separate nation. "It has been a misfortune that the National laws on this subject have hitherto been of a negative or prohibitive rather than an affirmative kind, and still more that they have in part sought to prohibit what could not be effectively prohibited, and have in part in their prohibitions confounded what should be allowed and what should not be allowed. It is generally useless to try to prohibit all restraint on competition, whether this restraint be reasonable or unreasonable; and where it is not useless it is generally hurtful. The successful prosecution of one device to evade the law immediately develops another device to accomplish the same purpose. What is needed is not sweeping prohibition of every arrangement, good or bad, which may tend to restrict competition, but such adequate supervision and regulation as will prevent any restriction of competition from being to the detriment of the public, as well as such supervision and regulation as will prevent other abuses in no way connected with restriction of competition." I have called your attention in these quotations to what I have already said because I am satisfied that it is the duty of the National Government to embody in action the principles thus expressed. No small part of the trouble that we have comes from carrying to an extreme the national virtue of self-reliance, of independence in initiative and action. It is wise to conserve this virtue and to provide for its fullest exercise, compatible with seeing that liberty does not become a liberty to wrong others. Unfortunately, this is the kind of liberty that the lack of all effective regulation inevitably breeds. founders of the Constitution provided that the National Government should have complete and sole control of interstate commerce. There was then practically no interstate business save such as was conducted by water, and this the National Government at once proceeded to regulate in thoroughgoing and effective fashion. Conditions have now so wholly changed that the interstate commerce by water is insignificant compared with the amount that goes by land, and almost all big business concerns are now engaged in interstate commerce. As a result, it can be but partially and imperfectly controlled or regulated by the action of any one of the several States; such action inevitably tending to be either too drastic or else too lax, and in either case ineffective for purposes of justice. Only the National Government can in thoroughgoing fashion exercise the needed control. This does not mean that there should be any extension of Federal authority, for such authority already exists under the Constitution in amplest and most far-reaching form; but it does mean that there should be an extension of Federal activity. This is not advocating centralization. It is merely looking facts in the face, and realizing that centralization in business has already come and can not be avoided or undone, and that the public at large can only protect itself from certain evil effects of this business centralization by providing better methods for the exercise of control through the authority already centralized in the National Government by the Constitution itself. There must be no ball in the healthy constructive course of action which this Nation has elected to pursue, and has steadily pursued, during the last six years, as shown both in the legislation of the Congress and the administration of the law by the Department of Justice. The most vital need is in connection with the railroads. As to these, in my judgment there should now be either a national incorporation act or a law licensing railway companies to engage in interstate commerce upon certain conditions. The law should be so framed as to give to the Interstate Commerce Commission power to pass upon the future issue of securities, while ample means should be provided to enable the Commission, whenever in its judgment it is necessary, to make a physical valuation of any railroad. As I stated in my Message to the Congress a year ago, railroads should be given power to enter into agreements, subject to these argreements being made public in minute detail and to the consent of the Interstate Commerce Commission being first obtained. Until the National Government assumes proper control of interstate commerce, in the exercise of the authority it already possesses, it will be impossible either to give to or to get from the railroads full justice. The railroads and all other great corporations will do well to recognize that this control must come; the only question is as to what governmental body can most wisely exercise it. The courts will determine the limits within which the Federal authority can exercise it, and there will still remain ample work within each State for the railway commission of that State; and the National Interstate Commerce Commission will work in harmony with the several State commissions, each within its own province, to achieve the desired end. Moreover, in my judgment there should be additional legislation looking to the proper control of the great business concerns engaged in interstate business, this control to be exercised for their own benefit and prosperity no less than for the protection of investors and of the general public. As I have repeatedly said in Messages to the Congress and elsewhere, experience has definitely shown not merely the unwisdom but the futility of endeavoring to put a stop to all business combinations. Modern industrial conditions are such that combination is not only necessary but inevitable. It is so in the world of business just as it is so in the world of labor, and it is as idle to desire to put an end to all corporations, to all big combinations of capital, as to desire to put an end to combinations of labor. Corporation and labor union alike have come to stay. Each if properly managed is a source of good and not evil. Whenever in either there is evil, it should be promptly held to account; but it should receive hearty encouragement so long as it is properly managed. It is profoundly immoral to put or keep on the statute books a law, nominally in the interest of public morality that really puts a premium upon public immorality, by undertaking to forbid honest men from doing what must be done under modern business conditions, so that the law itself provides that its own infraction must be the condition precedent upon business success. To aim at the accomplishment of too much usually means the accomplishment of too little, and often the doing of positive damage. In my Message to the Congress a year ago, in speaking of the antitrust laws, I said: "The actual working of our laws has shown that the effort to prohibit all combination, good or bad, is noxious where it is not ineffective. Combination of capital, like combination of labor, is a necessary element in our present industrial system. It is not possible completely to prevent it; and if it were possible, such complete prevention would do damage to the body politic. What we need is not vainly to try to prevent all combination, but to secure such rigorous and adequate control and supervision of the combinations as to prevent their injuring the public, or existing in such forms as inevitably to threaten injury. It is unfortunate that our present laws should forbid all combinations instead of sharply discriminating between those combinations which do evil. Often railroads would like to combine for the purpose of preventing a big shipper from maintaining improper advantages at the expense of small shippers and of the general public. Such a combination, instead of being forbidden by law, should be favored. It is a public evil to have on the statute books a law incapable of full enforcement, because both judges and juries realize that its full enforcement would destroy the business of the country; for the result is to make decent men violators of the law against their will, and to put a premium on the behavior of the willful wrongdoers. Such a result in turn tends to throw the decent man and the willful wrongdoer into close association, and in the end to drag clown the former to the latter's level; for the man who becomes a lawbreaker in one way unhappily tends to lose all respect for law and to be willing to break. it in many ways. No more scathing condemnation could be visited upon a law than is contained in the words of the Interstate Commerce Commission when, in commenting upon the fact that the numerous joint traffic associations do technically violate the law, they say: 'The decision of the United States Supreme Court in the Trans-Missouri case and the Joint Traffic Association case has produced no practical effect upon the railway operations of the country. Such associations, in fact, exist now as they did before these decisions, and with the same general effect. In justice to all parties, we ought probably to add that it is difficult to see how our interstate railways could be operated with due regard to the interest of the shipper and the railway without concerted action of the kind afforded through these asociations.' "This means that the law as construed by the Supreme Court is such that the business of the country can not be conducted without breaking it." As I have elsewhere said:  this is substantially what I have said over and over again. Surely it ought not to be necessary to say that it in no shape or way represents any hostility to corporations as such. On the contrary, it means a frank recognition of the fact that combinations of capital, like combinations of labor, are a natural result of modern conditions and of our National development. As far as in my ability lies my endeavor is and will be to prevent abuse of power by either and to favor both so long as they do well. The aim of the National Government is quite as much to favor and protect honest corporations, honest business men of wealth, as to bring to justice those individuals and corporations representing dishonest methods. Most certainly there will be no relaxation by the Government authorities in the effort to get at any great railroad wrecker--any man who by clever swindling devices robs investors, oppresses wage-workers, and does injustice to the general public. But any such move as this is in the interest of honest railway operators, of honest corporations, and of those who, when they invest their small savings in stocks and bonds, wish to be assured that these will represent money honestly expended for legitimate business purposes. To confer upon the National Government the power for which I ask would be a check upon overcapitalization and upon the clever gamblers who benefit by overcapitalization. But it alone would mean an increase in the value, an increase in the safety of the stocks and bonds of law-abiding, honestly managed railroads, and would render it far easier to market their securities. I believe in proper publicity. There has been complaint of some of the investigations recently carried on, but those who complain should put the blame where it belongs--upon the misdeeds which are done in darkness and not upon the investigations which brought them to light. The Administration is responsible for turning on the light, but it is not responsible for what the light showed. I ask for full power to be given the Federal Government, because no single State can by legislation effectually cope with these powerful corporations engaged in interstate commerce, and, while doing them full justice, exact from them in return full justice to others. The conditions of railroad activity, the conditions of our immense interstate commerce, are such as to make the Central Government alone competent to exercise full supervision and control. "The grave abuses in individual cases of railroad management in the past represent wrongs not merely to the general public, but, above all, wrongs to fair-dealing and honest corporations and men of wealth, because they excite a popular anger and distrust which from the very nature of the case tends to include in the sweep of its resentment good and bad alike. From the standpoint of the public I can not too earnestly say that as soon as the natural and proper resentment aroused by these abuses becomes indiscriminate and unthinking, it also becomes not merely unwise and unfair, but calculated to defeat the very ends which those feeling it have in view. There has been plenty of dishonest work by corporations in the past. There will not be the slightest let-up in the effort to hunt down and punish every dishonest man. But the bulk of our business is honestly done. In the natural indignation the people feel over the dishonesty, it is essential that they should not lose their heads and get drawn into an indiscriminate raid upon all corporations, all people of wealth, whether they do well or ill. Out of any such wild movement good will not come, can not come, and never has come. On the contrary, the surest way to invite reaction is to follow the lead of either demagogue or visionary in a sweeping assault upon property values and upon public confidence, which would work incalculable damage in the business world and would produce such distrust of the agitators that in the revulsion the distrust would extend to honest men who, in sincere and same fashion, are trying to remedy the evils." The antitrust law should not be repealed; but it should be made both more efficient and more in harmony with actual conditions. It should be so amended as to forbid only the kind of combination which does harm to the general public, such amendment to be accompanied by, or to be an incident of, a grant of supervisory power to the Government over these big concerns engaged in interstate business. This should be accompanied by provision for the compulsory publication of accounts and the subjection of books and papers to the inspection of the Government officials. A beginning has already been made for such supervision by the establishment of the Bureau of Corporations. The antitrust law should not prohibit combinations that do no injustice to the public, still less those the existence of which is on the whole of benefit to the public. But even if this feature of the law were abolished, there would remain as an equally objectionable feature the difficulty and delay now incident to its enforcement. The Government must now submit to irksome and repeated delay before obtaining a final decision of the courts upon proceedings instituted, and even a favorable decree may mean an empty victory. Moreover, to attempt to control these corporations by lawsuits means to impose upon both the Department of Justice and the courts an impossible burden; it is not feasible to carry on more than a limited number of such suits. Such a law to be really effective must of course be administered by an executive body, and not merely by means of lawsuits. The design should be to prevent the abuses incident to the creation of unhealthy and improper combinations, instead of waiting until they are in existence and then attempting to destroy them by civil or criminal proceedings. A combination should not be tolerated if it abuse the power acquired by combination to the public detriment. No corporation or association of any kind should be permitted to engage in foreign or interstate commerce that is formed for the purpose of, or whose operations create, a monopoly or general control of the production, sale, or distribution of any one or more of the prime necessities of life or articles of general use and necessity. Such combinations are against public policy; they violate the common law; the doors of the courts are closed to those who are parties to them, and I believe the Congress can close the channels of interstate commerce against them for its protection. The law should make its prohibitions and permissions as clear and definite as possible, leaving the least possible room for arbitrary action, or allegation of such action, on the part of the Executive, or of divergent interpretations by the courts. Among the points to be aimed at should be the prohibition of unhealthy competition, such as by rendering service at an actual loss for the purpose of crushing out competition, the prevention of inflation of capital, and the prohibition of a corporation's making exclusive trade with itself a condition of having any trade with itself. Reasonable agreements between, or combinations of, corporations should be permitted, provided they are submitted to and approved by some appropriate Government body. The Congress has the power to charter corporations to engage in interstate and foreign commerce, and a general law can be enacted under the provisions of which existing corporations could take out Federal charters and new Federal corporations could be created. An essential provision of such a law should be a method of predetermining by some Federal board or commission whether the applicant for a Federal charter was an association or combination within the restrictions of the Federal law. Provision should also be made for complete publicity in all matters affecting the public and complete protection to the investing public and the shareholders in the matter of issuing corporate securities. If an incorporation law is not deemed advisable, a license act for big interstate corporations might be enacted; or a combination of the two might be tried. The supervision established might be analogous to that now exercised over national banks. At least, the antitrust act should be supplemented by specific prohibitions of the methods which experience has shown have been of most service in enabling monopolistic combinations to crush out competition. The real owners of a corporation should be compelled to do business in their own name. The right to hold stock in other corporations should hereafter be denied to interstate corporations, unless on approval by the Government officials, and a prerequisite to such approval should be the listing with the Government of all owners and stockholders, both by the corporation owning such stock and by the corporation in which such stock is owned. To confer upon the National Government, in connection with the amendment I advocate in the antitrust law, power of supervision over big business concerns engaged in interstate commerce, would benefit them as it has benefited the national banks. In the recent business crisis it is noteworthy that the institutions which failed were institutions which were not under the supervision and control of the National Government. Those which were under National control stood the test. National control of the kind above advocated would be to the benefit of every well-managed railway. From the standpoint of the public there is need for additional tracks, additional terminals, and improvements in the actual handling of the railroads, and all this as rapidly as possible. Ample, safe, and speedy transportation facilities are even more necessary than cheap transportation. Therefore, there is need for the investment of money which will provide for all these things while at the same time securing as far as is possible better wages and shorter hours for their employees. Therefore, while there must be just and reasonable regulation of rates, we should be the first to protest against any arbitrary and unthinking movement to cut them down without the fullest and most careful consideration of all interests concerned and of the actual needs of the situation. Only a special body of men acting for the National Government under authority conferred upon it by the Congress is competent to pass judgment on such a matter. Those who fear, from any reason, the extension of Federal activity will do well to study the history not only of the national banking act but of the pure-food law, and notably the meat inspection law recently enacted. The pure-food law was opposed so violently that its passage was delayed for a decade; yet it has worked unmixed and immediate good. The meat inspection law was even more violently assailed; and the same men who now denounce the attitude of the National Government in seeking to oversee and control the workings of interstate common carriers and business concerns, then asserted that we were "discrediting and ruining a great American industry." Two years have not elapsed, and already it has become evident that the great benefit the law confers upon the public is accompanied by an equal benefit to the reputable packing establishments. The latter are better off under the law than they were without it. The benefit to interstate common carriers and business concerns from the legislation I advocate would be equally marked. Incidentally, in the passage of the pure-food law the action of the various State food and dairy commissioners showed in striking fashion how much good for the whole people results from the hearty cooperation of the Federal and State officials in securing a given reform. It is primarily to the action of these State commissioners that we owe the enactment of this law; for they aroused the people, first to demand the enactment and enforcement of State laws on the subject, and then the enactment of the Federal law, without which the State laws were largely ineffective. There must be the closest cooperation between the National and State governments in administering these laws. In my Message to the Congress a year ago I spoke as follows of the currency: "I especially call your attention to the condition of our currency laws. The national-bank act has ably served a great purpose in aiding the enormous business development of the country, and within ten years there has been an increase in circulation per capita from $21.41 to $33.08. For several years evidence has been accumulating that additional legislation is needed. The recurrence of each crop season emphasizes the defects of the present laws. There must soon be a revision of them, because to leave them as they are means to incur liability of business disaster. Since your body adjourned there has been a fluctuation in the interest on call money from 2 per cent to 30 percent, and the fluctuation was even greater during the preceding six months. The Secretary of the Treasury had to step in and by wise action put a stop to the most violent period of oscillation. Even worse than such fluctuation is the advance in commercial rates and the uncertainty felt in the sufficiency of credit even at high rates. All commercial interests suffer during each crop period. Excessive rates for call money in New York attract money from the interior banks into the speculative field. This depletes the fund that would otherwise be available for commercial uses, and commercial borrowers are forced to pay abnormal rates, so that each fall a tax, in the shape of increased interest charges, is placed on the whole commerce of the country. "The mere statement of these facts shows that our present system is seriously defective. There is need of a change. Unfortunately, however, many of the proposed changes must be ruled from consideration because they are complicated, are not easy of comprehension, and tend to disturb existing rights and interests. We must also rule out any plan which would materially impair the value of the United States 2 per cent bonds now pledged to secure circulation, the issue of which was made under conditions peculiarly creditable to the Treasury. I do not press any especial plan. Various plans have recently been proposed by expert committees of bankers. Among the plans which are possibly feasible and which certainly should receive your consideration is that repeatedly brought to your attention by the present Secretary of the Treasury, the essential features of which have been approved by many prominent bankers and business men. According to this plan national banks should be permitted to issue a specified proportion of their capital in notes of a given kind, the issue to be taxed at so high a rate as to drive the notes back when not wanted in legitimate trade. This plan would not permit the issue of currency to give banks additional profits, but to meet the emergency presented by times of stringency. "I do not say that this is the right system. I only advance it to emphasize my belief that there is need for the adoption of some system which shall be automatic and open to all sound banks, so as to avoid all possibility of discrimination and favoritism. Such a plan would tend to prevent the spasms of high money and speculation which now obtain in the New York market; for at present there is too much currency at certain seasons of the year, and its accumulation at New York tempts bankers to lend it at low rates for speculative purposes; whereas at other times when the crops are being moved there is urgent need for a large but temporary increase in the currency supply. It must never be forgotten that this question concerns business men generally quite as much as bankers; especially is this true of stockmen, farmers, and business men in the West; for at present at certain seasons of the year the difference in interest rates between the East and the West is from 6 to 10 per cent, whereas in Canada the corresponding difference is but 2 per cent. Any plan must, of course, guard the interests of western and southern bankers as carefully as it guards the interests of New York or Chicago bankers, and must be drawn from the standpoints of the farmer and the merchant no less than from the standpoints of the city banker and the country banker." I again urge on the Congress the need of immediate attention to this matter. We need a greater elasticity in our currency; provided, of course, that we recognize the even greater need of a safe and secure currency. There must always be the most rigid examination by the National authorities. Provision should be made for an emergency currency. The emergency issue should, of course, be made with an effective guaranty, and upon conditions carefully prescribed by the Government. Such emergency issue must be based on adequate securities approved by the Government, and must be issued under a heavy tax. This would permit currency being issued when the demand for it was urgent, while securing its requirement as the demand fell off. It is worth investigating to determine whether officers and directors of national banks should ever be allowed to loan to themselves. Trust companies should be subject to the same supervision as banks; legislation to this effect should be enacted for the District of Columbia and the Territories. Yet we must also remember that even the wisest legislation on the subject can only accomplish a certain amount. No legislation can by any possibility guarantee the business community against the results of speculative folly any more than it can guarantee an individual against the results of his extravagance. When an individual mortgages his house to buy an automobile he invites disaster; and when wealthy men, or men who pose as such, or are unscrupulously or foolishly eager to become such, indulge in reckless speculation--especially if it is accompanied by dishonesty--they jeopardize not only their own future but the future of all their innocent fellow-citizens, for the expose the whole business community to panic and distress. The income account of the Nation is in a most satisfactory condition. For the six fiscal years ending with the 1st of July last, the total expenditures and revenues of the National Government, exclusive of the postal revenues and expenditures, were, in round numbers, revenues, $3,465,000,0000, and expenditures, $3,275,000,000. The net excess of income over expenditures, including in the latter the fifty millions expended for the Panama Canal, was one hundred and ninety million dollars for the six years, an average of about thirty-one millions a year. This represents an approximation between income and outgo which it would be hard to improve. The satisfactory working of the present tariff law has been chiefly responsible for this excellent showing. Nevertheless, there is an evident and constantly growing feeling among our people that the time is rapidly approaching when our system of revenue legislation must be revised. This country is definitely committed to the protective system and any effort to uproot it could not but because widespread industrial disaster. In other words, the principle of the present tariff law could not with wisdom be changed. But in a country of such phenomenal growth as ours it is probably well that every dozen years or so the tariff laws should be carefully scrutinized so as to see that no excessive or improper benefits are conferred thereby, that proper revenue is provided, and that our foreign trade is encouraged. There must always be as a minimum a tariff which will not only allow for the collection of an ample revenue but which will at least make good the difference in cost of production here and abroad; that is, the difference in the labor cost here and abroad, for the. well-being of the wage-worker must ever be a cardinal point of American policy. The question should be approached purely from a business standpoint; both the time and the manner of the change being such as to arouse the minimum of agitation and disturbance in the business world, and to give the least play for selfish and factional motives. The sole consideration should be to see that the sum total of changes represents the public good. This means that the subject can not with wisdom be dealt with in the year preceding a Presidential election, because as a matter of fact experience has conclusively shown that at such a time it is impossible to get men to treat it from the standpoint of the public good. In my judgment the wise time to deal with the matter is immediately after such election. When our tax laws are revised the question of an income tax and an inheritance tax should receive the careful attention of our legislators. In my judgment both of these taxes should be part of our system of Federal taxation. I speak diffidently about the income tax because one scheme for an income tax was declared unconstitutional by the Supreme Court; while in addition it is a difficult tax to administer in its practical working, and great care would have to be exercised to see that it was not evaded by the very men whom it was most desirable to have taxed, for if so evaded it would, of course, be worse than no tax at all; as the least desirable of all taxes is the tax which bears heavily upon the honest as compared with the dishonest man. Nevertheless, a graduated income tax of the proper type would be a desirable feature of Federal taxation, and it is to be hoped that one may be devised which the Supreme Court will declare constitutional. The inheritance tax, however, is both a far better method of taxation, and far more important for the purpose of having the fortunes of the country bear in proportion to their increase in size a corresponding increase and burden of taxation. The Government has the absolute right to decide as to the terms upon which a man shall receive a bequest or devise from another, and this point in the devolution of property is especially appropriate for the imposition of a tax. Laws imposing such taxes have repeatedly been placed upon the National statute books and as repeatedly declared constitutional by the courts; and these laws contained the progressive principle, that is, after a certain amount is reached the bequest or gift, in life or death, is increasingly burdened and the rate of taxation is increased in proportion to the remoteness of blood of the man receiving the bequest. These principles are recognized already in the leading civilized nations of the world. In Great Britain all the estates worth $5,000 or less are practically exempt from death duties, while the increase is such that when an estate exceeds five millions of dollars in value and passes to a distant kinsman or stranger in blood the Government receives all told an amount equivalent to nearly a fifth of the whole estate. In France so much of an inheritance as exceeds $10,000,000 pays over a fifth to the State if it passes to a distant relative. The German law is especially interesting to us because it makes the inheritance tax an imperial measure while allotting to the individual States of the Empire a portion of the proceeds and permitting them to impose taxes in addition to those imposed by the Imperial Government. Small inheritances are exempt, but the tax is so sharply progressive that when the inheritance is still not very large, provided it is not an agricultural or a forest land, it is taxed at the rate of 25 per cent if it goes to distant relatives. There is no reason why in the United States the National Government should not impose inheritance taxes in addition to those imposed by the States, and when we last had an inheritance tax about one-half of the States levied such taxes concurrently with the National Government, making a combined maximum rate, in some cases as high as 25 per cent. The French law has one feature which is to be heartily commended. The progressive principle is so applied that each higher rate is imposed only on the excess above the amount subject to the next lower rate; so that each increase of rate will apply only to a certain amount above a certain maximum. The tax should if possible be made to bear more heavily upon those residing without the country than within it. A heavy progressive tax upon a very large fortune is in no way such a tax upon thrift or industry as a like would be on a small fortune. No advantage comes either to the country as a whole or to the individuals inheriting the money by permitting the transmission in their entirety of the enormous fortunes which would be affected by such a tax; and as an incident to its function of revenue raising, such a tax would help to preserve a measurable equality of opportunity for the people of the generations growing to manhood. We have not the slightest sympathy with that socialistic idea which would try to put laziness, thriftlessness and inefficiency on a par with industry, thrift and efficiency; which would strive to break up not merely private property, but what is far more important, the home, the chief prop upon which our whole civilization stands. Such a theory, if ever adopted, would mean the ruin of the entire country--a ruin which would bear heaviest upon the weakest, upon those least able to shift for themselves. But proposals for legislation such as this herein advocated are directly opposed to this class of socialistic theories. Our aim is to recognize what Lincoln pointed out: The fact that there are some respects in which men are obviously not equal; but also to insist that there should be an equality of self-respect and of mutual respect, an equality of rights before the law, and at least an approximate equality in the conditions under which each man obtains the chance to show the stuff that is in him when compared to his fellows. A few years ago there was loud complaint that the law could not be invoked against wealthy offenders. There is no such complaint now. The course of the Department of Justice during the last few years has been such as to make it evident that no man stands above the law, that no corporation is so wealthy that it can not be held to account. The Department of Justice has been as prompt to proceed against the wealthiest malefactor whose crime was one of greed and cunning as to proceed against the agitator who incites to brutal violence. Everything that can be done under the existing law, and with the existing state of public opinion, which so profoundly influences both the courts and juries, has been done. But the laws themselves need strengthening in more than one important point; they should be made more definite, so that no honest man can be led unwittingly to break them, and so that the real wrongdoer can be readily punished. Moreover, there must be the public opinion back of the laws or the laws themselves will be of no avail. At present, while the average juryman undoubtedly wishes to see trusts broken up, and is quite ready to fine the corporation itself, he is very reluctant to find the facts proven beyond a reasonable doubt when it comes to sending to jail a member of the business community for indulging in practices which are profoundly unhealthy, but which, unfortunately, the business community has grown to recognize as well-nigh normal. Both the present condition of the law and the present temper of juries render it a task of extreme difficulty to get at the real wrongdoer in any such case, especially by imprisonment. Yet it is from every standpoint far preferable to punish the prime offender by imprisonment rather than to fine the corporation, with the attendant damage to stockholders. The two great evils in the execution of our criminal laws to-day are sentimentality and technicality. For the latter the remedy must come from the hands of the legislatures, the courts, and the lawyers. The other must depend for its cure upon the gradual growth of a sound public opinion which shall insist that regard for the law and the demands of reason shall control all other influences and emotions in the jury box. Both of these evils must be removed or public discontent with the criminal law will continue. Instances of abuse in the granting of injunctions in labor disputes continue to occur, and the resentment in the minds of those who feel that their rights are being invaded and their liberty of action and of speech unwarrantably restrained continues likewise to grow. Much of the attack on the use of the process of injunction is wholly without warrant; but I am constrained to express the belief that for some of it there is warrant. This question is becoming more and more one of prime importance, and unless the courts will themselves deal with it in effective manner, it is certain ultimately to demand some form of legislative action. It would be most unfortunate for our social welfare if we should permit many honest and law-abiding citizens to feel that they had just because for regarding our courts with hostility. I earnestly commend to the attention of the Congress this matter, so that some way may be devised which will limit the abuse of injunctions and protect those rights which from time to time it unwarrantably invades. Moreover, discontent is often expressed with the use of the process of injunction by the courts, not only in labor disputes, but where State laws are concerned. I refrain from discussion of this question as I am informed that it will soon receive the consideration of the Supreme Court. The Federal courts must of course decide ultimately what are the respective spheres of State and Nation in connection with any law, State or National, and they must decide definitely and finally in matters affecting individual citizens, not only as to the rights and wrongs of labor but as to the rights and wrongs of capital; and the National Government must always see that the decision of the court is put into effect. The process of injunction is an essential adjunct of the court's doing its work well; and as preventive measures are always better than remedial, the wise use of this process is from every standpoint commendable. But where it is recklessly or unnecessarily used, the abuse should he censured, above all by the very men who are properly anxious to prevent any effort to shear the courts of this necessary power. The court's decision must be final; the protest is only against the conduct of individual judges in needlessly anticipating such final decision, or in the tyrannical use of what is nominally a temporary injunction to accomplish what is in fact a permanent decision. The loss of life and limb from railroad accidents in this country has become appalling. It is a subject of which the National Government should take supervision. It might be well to begin by providing for a Federal inspection of interstate railroads somewhat along the lines of Federal inspection of steamboats, although not going so far; perhaps at first all that it would be necessary to have would be some officer whose duty would be to investigate all accidents on interstate railroads and report in detail the causes thereof. Such an officer should make it his business to get into close touch with railroad operating men so as to become thoroughly familiar with every side of the question, the idea being to work along the lines of the present steamboat inspection law. The National Government should be a model employer. It should demand the highest quality of service from each of its employees and it should care for all of them properly in return. Congress should adopt legislation providing limited but definite compensation for accidents to all workmen within the scope of the Federal power, including employees of navy yards and arsenals. In other words, a model employers' liability act, far-reaching and thoroughgoing, should be enacted which should apply to all positions, public and private, over which the National Government has jurisdiction. The number of accidents to wage-workers, including those that are preventable and those that are not, has become appalling in the mechanical, manufacturing, and transportation operations of the day. It works grim hardship to the ordinary wage-worker and his family to have the effect of such an accident fall solely upon him; and, on the other hand, there are whole classes of attorneys who exist only by inciting men who may or may not have been wronged to undertake suits for negligence. As a matter of fact a suit for negligence is generally an inadequate remedy for the person injured, while it often causes altogether disproportionate annoyance to the employer. The law should be made such that the payment for accidents by the employer would be automatic instead of being a matter for lawsuits. Workmen should receive certain and definite compensation for all accidents in industry irrespective of negligence. The employer is the agent of the public and on his own responsibility and for his own profit he serves the public. When he starts in motion agencies which create risks for others, he should take all the ordinary and extraordinary risks involved; and the risk he thus at the moment assumes will ultimately be assumed, as it ought to be, by the general public. Only in this way can the shock of the accident be diffused, instead of falling upon the man or woman least able to bear it, as is now the case. The community at large should share the burdens as well as the benefits of industry. By the proposed law, employers would gain a desirable certainty of obligation and get rid of litigation to determine it, while the workman and his family would be relieved from a crushing load. With such a policy would come increased care, and accidents would be reduced in number. The National laws providing for employers' liability on railroads engaged in interstate commerce and for safety appliances, as well as for diminishing the hours any employee of a railroad should be permitted to work, should all be strengthened wherever in actual practice they have shown weakness; they should be kept on the statute books in thoroughgoing form. The constitutionality of the employers' liability act passed by the preceding Congress has been carried before the courts. In two jurisdictions the law has been declared unconstitutional, and in three jurisdictions its constitutionality has been affirmed. The question has been carried to the Supreme Court, the case has been heard by that tribunal, and a decision is expected at an early date. In the event that the court should affirm the constitutionality of the act, I urge further legislation along the lines advocated in my Message to the preceding Congress. The practice of putting the entire burden of loss to life or limb upon the victim or the victim's family is a form of social injustice in which the United States stands in unenviable prominence. In both our Federal and State legislation we have, with few exceptions, scarcely gone farther than the repeal of the fellow-servant principle of the old law of liability, and in some of our States even this slight modification of a completely outgrown principle has not yet been secured. The legislation of the rest of the industrial world stands out in striking contrast to our backwardness in this respect. Since 1895 practically every country of Europe, together with Great Britain, New Zealand, Australia, British Columbia, and the Cape of Good Hope has enacted legislation embodying in one form or another the complete recognition of the principle which places upon the employer the entire trade risk in the various lines of industry. I urge upon the Congress the enactment of a law which will at the same time bring Federal legislation up to the standard already established by all the European countries, and which will serve as a stimulus to the various States to perfect their legislation in this regard. The Congress should consider the extension of the eight-hour law. The constitutionality of the present law has recently been called into question, and the Supreme Court has decided that the existing legislation is unquestionably within the powers of the Congress. The principle of the eight-hour day should as rapidly and as far as practicable be extended to the entire work carried on by the Government; and the present law should be amended to embrace contracts on those public works which the present wording of the act has been construed to exclude. The general introduction of the eight-hour day should be the goal toward which we should steadily tend, and the Government should set the example in this respect. Strikes and lockouts, with their attendant loss and suffering, continue to increase. For the five years ending December 31, 1905, the number of strikes was greater than those in any previous ten years and was double the number in the preceding five years. These figures indicate the increasing need of providing some machinery to deal with this class of disturbance in the interest alike of the employer, the employee, and the general public. I renew my previous recommendation that the Congress favorably consider the matter of creating the machinery for compulsory investigation of such industrial controversies as are of sufficient magnitude and of sufficient concern to the people of the country as a whole to warrant the Federal Government in taking action. The need for some provision for such investigation was forcibly illustrated during the past summer. A strike of telegraph operators seriously interfered with telegraphic communication, causing great damage to business interests and serious inconvenience to the general public. Appeals were made to me from many parts of the country, from city councils, from boards of trade, from chambers of commerce, and from labor organizations, urging that steps be taken to terminate the strike. Everything that could with any propriety be done by a representative of the Government was done, without avail, and for weeks the public stood by and suffered without recourse of any kind. Had the machinery existed and had there been authority for compulsory investigation of the dispute, the public would have been placed in possession of the merits of the controversy, and public opinion would probably have brought about a prompt adjustment. Each successive step creating machinery for the adjustment of labor difficulties must be taken with caution, but we should endeavor to make progress in this direction. The provisions of the act of 1898 creating the chairman of the Interstate Commerce Commission and the Commissioner of Labor a board of mediation in controversies between interstate railroads and their employees has, for the first time, been subjected to serious tests within the past year, and the wisdom of the experiment has been fully demonstrated. The creation of a board for compulsory investigation in cases where mediation fails and arbitration is rejected is the next logical step in a progressive program. It is certain that for some time to come there will be a constant increase absolutely, and perhaps relatively, of those among our citizens who dwell in cities or towns of some size and who work for wages. This means that there will be an ever-increasing need to consider the problems inseparable from a great industrial civilization. Where an immense and complex business, especially in those branches relating to manufacture and transportation, is transacted by a large number of capitalists who employ a very much larger number of wage-earners, the former tend more and more to combine into corporations and the latter into unions. The relations of the capitalist and wage-worker to one another, and of each to the general public, are not always easy to adjust; and to put them and keep them on a satisfactory basis is one of the most important and one of the most delicate tasks before our whole civilization. Much of the work for the accomplishment of this end must be done by the individuals concerned themselves, whether singly or in combination; and the one fundamental fact that must never be lost track of is that the character of the average man, whether he be a man of means or a man who works with his hands, is the most important factor in solving the problem aright. But it is almost equally important to remember that without good laws it is also impossible to reach the proper solution. It is idle to hold that without good laws evils such as child labor, as the over-working of women, as the failure to protect employees from loss of life or limb, can be effectively reached, any more than the evils of rebates and stock-watering can be reached without good laws. To fail to stop these practices by legislation means to force honest men into them, because otherwise the dishonest who surely will take advantage of them will have everything their own way. If the States will correct these evils, well and good; but the Nation must stand ready to aid them. No question growing out of our rapid and complex industrial development is more important than that of the employment of women and children. The presence of women in industry reacts with extreme directness upon the character of the home and upon family life, and the conditions surrounding the employment of children bear a vital relation to our future citizenship. Our legislation in those areas under the control of the Congress is very much behind the legislation of our more progressive States. A thorough and comprehensive measure should be adopted at this session of the Congress relating to the employment of women and children in the District of Columbia and the Territories. The investigation into the condition of women and children wage-earners recently authorized and directed by the Congress is now being carried on in the various States, and I recommend that the appropriation made last year for beginning this work be renewed, in order that we may have the thorough and comprehensive investigation which the subject demands. The National Government has as an ultimate resort for control of child labor the use of the interstate commerce clause to prevent the products of child labor from entering into interstate commerce. But before using this it ought certainly to enact model laws on the subject for the Territories under its own immediate control. There is one fundamental proposition which can be laid down as regards all these matters, namely: While honesty by itself will not solve the problem, yet the insistence upon honesty--not merely technical honesty, but honesty in purpose and spirit--is an essential element in arriving at a right conclusion. Vice in its cruder and more archaic forms shocks everybody; but there is very urgent need that public opinion should be just as severe in condemnation of the vice which hides itself behind class or professional loyalty, or which denies that it is vice if it can escape conviction in the courts. The public and the representatives of the public, the high officials, whether on the bench or in executive or legislative positions, need to remember that often the most dangerous criminals, so far as the life of the Nation is concerned, are not those who commit the crimes known to and condemned by the popular conscience for centuries, but those who commit crimes only rendered possible by the complex conditions of our modern industrial life. It makes not a particle of difference whether these crimes are committed by a capitalist or by a laborer, by a leading banker or manufacturer or railroad man, or by a leading representative of a labor union. Swindling in stocks, corrupting legislatures, making fortunes by the inflation of securities, by wrecking railroads, by destroying competitors through rebates--these forms of wrongdoing in the capitalist, are far more infamous than any ordinary form of embezzlement or forgery; yet it is a matter of extreme difficulty to secure the punishment of the man most guilty of them, most responsible for them. The business man who condones such conduct stands on a level with the labor man who deliberately supports a corrupt demagogue and agitator, whether head of a union or head of some municipality, because he is said to have "stood by the union." The members of the business community, the educators, or clergymen, who condone and encourage the first kind of wrongdoing, are no more dangerous to the community, but are morally even worse, than the labor men who are guilty of the second type of wrongdoing, because less is to be pardoned those who have no such excuse as is furnished either by ignorance or by dire need. When the Department of Agriculture was founded there was much sneering as to its usefulness. No Department of the Government, however, has more emphatically vindicated its usefulness, and none save the Post-Office Department comes so continually and intimately into touch with the people. The two citizens whose welfare is in the aggregate most vital to the welfare of the Nation, and therefore to the welfare of all other citizens, are the wage-worker who does manual labor and the tiller of the soil, the farmer. There are, of course, kinds of labor where the work must be purely mental, and there are other kinds of labor where, under existing conditions, very little demand indeed is made upon the mind, though I am glad to say that the proportion of men engaged in this kind of work is diminishing. But in any community with the solid, healthy qualities which make up a really great nation the bulk of the people should do work which calls for the exercise of both body and mind. Progress can not permanently exist in the abandonment of physical labor, but in the development of physical labor, so that it shall represent more and more the work of the trained mind in the trained body. Our school system is gravely defective in so far as it puts a premium upon mere literary training and tends therefore to train the boy away from the farm and the workshop. Nothing is more needed than the best type of industrial school, the school for mechanical industries in the city, the school for practically teaching agriculture in the country. The calling of the skilled tiller of the soil, the calling of the skilled mechanic, should alike be recognized as professions, just as emphatically as the callings of lawyer, doctor, merchant, or clerk. The schools recognize this fact and it should equally be recognized in popular opinion. The young man who has the farsightedness and courage to recognize it and to get over the idea that it makes a difference whether what he earns is called salary or wages, and who refuses to enter the crowded field of the so-called professions, and takes to constructive industry instead, is reasonably sure of an ample reward in earnings, in health, in opportunity to marry early, and to establish a home with a fair amount of freedom from worry. It should be one of our prime objects to put both the farmer and the mechanic on a higher plane of efficiency and reward, so as to increase their effectiveness in the economic world, and therefore the dignity, the remuneration, and the power of their positions in the social world. No growth of cities, no growth of wealth, can make up for any loss in either the number or the character of the farming population. We of the United States should realize this above almost all other peoples. We began our existence as a nation of farmers, and in every great crisis of the past a peculiar dependence has had to be placed upon the farming population; and this dependence has hitherto been justified. But it can not be justified in the future if agriculture is permitted to sink in the scale as compared with other employments. We can not afford to lose that preeminently typical American, the farmer who owns his own medium-sized farm. To have his place taken by either a class of small peasant proprietors, or by a class of great landlords with tenant-farmed estates would be a veritable calamity. The growth of our cities is a good thing but only in so far as it does not mean a growth at the expense of the country farmer. We must welcome the rise of physical sciences in their application to agricultural practices, and we must do all we can to render country conditions more easy and pleasant. There are forces which now tend to bring about both these results, but they are, as yet, in their infancy. The National Government through the Department of Agriculture should do all it can by joining with the State governments and with independent associations of farmers to encourage the growth in the open farming country of such institutional and social movements as will meet the demand of the best type of farmers, both for the improvement of their farms and for the betterment of the life itself. The Department of Agriculture has in many places, perhaps especially in certain districts of the South, accomplished an extraordinary amount by cooperating with and teaching the farmers through their associations, on their own soil, how to increase their income by managing their farms better than they were hitherto managed. The farmer must not lose his independence, his initiative, his rugged self-reliance, yet he must learn to work in the heartiest cooperation with his fellows, exactly as the business man has learned to work; and he must prepare to use to constantly better advantage the knowledge that can be obtained from agricultural colleges, while he must insist upon a practical curriculum in the schools in which his children are taught. The Department of Agriculture and the Department of Commerce and Labor both deal with the fundamental needs of our people in the production of raw material and its manufacture and distribution, and, therefore, with the welfare of those who produce it in the raw state, and of those who manufacture and distribute it. The Department of Commerce and Labor has but recently been founded but has already justified its existence; while the Department of Agriculture yields to no other in the Government in the practical benefits which it produces in proportion to the public money expended. It must continue in the future to deal with growing crops as it has dealt in the past, but it must still further extend its field of usefulness hereafter by dealing with live men, through a far-reaching study and treatment of the problems of farm life alike from the industrial and economic and social standpoint. Farmers must cooperate with one another and with the Government, and the Government can best give its aid through associations of farmers, so as to deliver to the farmer the large body of agricultural knowledge which has been accumulated by the National and State governments and by the agricultural colleges and schools. The grain producing industry of the country, one of the most important in the United States, deserves special consideration at the hands of the Congress. Our grain is sold almost exclusively by grades. To secure satisfactory results in our home markets and to facilitate our trade abroad, these grades should approximate the highest degree of uniformity and certainty. The present diverse methods of inspection and grading throughout the country under different laws and boards, result in confusion and lack of uniformity, destroying that confidence which is necessary for healthful trade. Complaints against the present methods have continued for years and they are growing in volume and intensity, not only in this country but abroad. I therefore suggest to the Congress the advisability of a National system of inspection and grading of grain entering into interstate and foreign commerce as a remedy for the present evils. The conservation of our natural resources and their proper use constitute the fundamental problem which underlies almost every other problem of our National life. We must maintain for our civilization the adequate material basis without which that civilization can not exist. We must show foresight, we must look ahead. As a nation we not only enjoy a wonderful measure of present prosperity but if this prosperity is used aright it is an earnest of future success such as no other nation will have. The reward of foresight for this Nation is great and easily foretold. But there must be the look ahead, there must be a realization of the fact that to waste, to destroy, our natural resources, to skin and exhaust the land instead of using it so as to increase its usefulness, will result in undermining in the days of our children the very prosperity which we ought by right to hand down to them amplified and developed. For the last few years, through several agencies, the Government has been endeavoring to get our people to look ahead and to substitute a planned and orderly development of our resources in place of a haphazard striving for immediate profit. Our great river systems should be developed as National water highways, the Mississippi, with its tributaries, standing first in importance, and the Columbia second, although there are many others of importance on the Pacific, the Atlantic and the Gulf slopes. The National Government should undertake this work, and I hope a beginning will be made in the present Congress; and the greatest of all our rivers, the Mississippi, should receive especial attention. From the Great Lakes to the mouth of the Mississippi there should be a deep waterway, with deep waterways leading from it to the East and the West. Such a waterway would practically mean the extension of our coast line into the very heart of our country. It would be of incalculable benefit to our people. If begun at once it can be carried through in time appreciably to relieve the congestion of our great freight-carrying lines of railroads. The work should be systematically and continuously carried forward in accordance with some well-conceived plan. The main streams should be improved to the highest point of efficiency before the improvement of the branches is attempted; and the work should be kept free from every faint of recklessness or jobbery. The inland waterways which lie just back of the whole eastern and southern coasts should likewise be developed. Moreover, the development of our waterways involves many other important water problems, all of which should be considered as part of the same general scheme. The Government dams should be used to produce hundreds of thousands of horsepower as an incident to improving navigation; for the annual value of the unused water-power of the United States perhaps exceeds the annual value of the products of all our mines. As an incident to creating the deep waterways down the Mississippi, the Government should build along its whole lower length levees which taken together with the control of the headwaters, will at once and forever put a complete stop to all threat of floods in the immensely fertile Delta region. The territory lying adjacent to the Mississippi along its lower course will thereby become one of the most prosperous and populous, as it already is one of the most fertile, farming regions in all the world. I have appointed an Inland Waterways Commission to study and outline a comprehensive scheme of development along all the lines indicated. Later I shall lay its report before the Congress. Irrigation should be far more extensively developed than at present, not only in the States of the Great Plains and the Rocky Mountains, but in many others, as, for instance, in large portions of the South Atlantic and Gulf States, where it should go hand in hand with the reclamation of swamp land. The Federal Government should seriously devote itself to this task, realizing that utilization of waterways and water-power, forestry, irrigation, and the reclamation of lands threatened with overflow, are all interdependent parts of the same problem. The work of the Reclamation Service in developing the larger opportunities of the western half of our country for irrigation is more important than almost any other movement. The constant purpose of the Government in connection with the Reclamation Service has been to use the water resources of the public lands for the ultimate greatest good of the greatest number; in other words, to put upon the land permanent home-makers, to use and develop it for themselves and for their children and children's children. There has been, of course, opposition to this work; opposition from some interested men who desire to exhaust the land for their own immediate profit without regard to the welfare of the next generation, and opposition from honest and well-meaning men who did not fully understand the subject or who did not look far enough ahead. This opposition is, I think, dying away, and our people are understanding that it would be utterly wrong to allow a few individuals to exhaust for their own temporary personal profit the resources which ought to be developed through use so as to be conserved for the permanent common advantage of the people as a whole. The effort of the Government to deal with the public land has been based upon the same principle as that of the Reclamation Service. The land law system which was designed to meet the needs of the fertile and well-watered regions of the Middle West has largely broken down when applied to the dryer regions of the Great Plains, the mountains, and much of the Pacific slope, where a farm of 160 acres is inadequate for self-support. In these regions the system lent itself to fraud, and much land passed out of the hands of the Government without passing into the hands of the home-maker. The Department of the Interior and the Department of Justice joined in prosecuting the offenders against the law; and they have accomplished much, while where the administration of the law has been defective it has been changed. But the laws themselves are defective. Three years ago a public lands commission was appointed to scrutinize the law, and defects, and recommend a remedy. Their examination specifically showed the existence of great fraud upon the public domain, and their recommendations for changes in the law were made with the design of conserving the natural resources of every part of the public lands by putting it to its best use. Especial attention was called to the prevention of settlement by the passage of great areas of public land into the hands of a few men, and to the enormous waste caused by unrestricted grazing upon the open range. The recommendations of the Public Lands Commission are sound, for they are especially in the interest of the actual homemaker; and where the small home-maker can not at present utilize the land they provide that the Government shall keep control of it so that it may not be monopolized by a few men. The Congress has not yet acted upon these recommendations; but they are so just and proper, so essential to our National welfare, that I feel confident, if the Congress will take time to consider them, that they will ultimately be adopted. Some such legislation as that proposed is essential in order to preserve the great stretches of public grazing land which are unfit for cultivation under present methods and are valuable only for the forage which they supply. These stretches amount in all to some 300,000,000 acres, and are open to the free grazing of cattle, sheep, horses and goats, without restriction. Such a system, or lack of system, means that the range is not so much used as wasted by abuse. As the West settles the range becomes more and more over-grazed. Much of it can not be used to advantage unless it is fenced, for fencing is the only way by which to keep in check the owners of nomad flocks which roam hither and thither, utterly destroying the pastures and leaving a waste behind so that their presence is incompatible with the presence of home-makers. The existing fences are all illegal. Some of them represent the improper exclusion of actual settlers, actual home-makers, from territory which is usurped by great cattle companies. Some of them represent what is in itself a proper effort to use the range for those upon the land, and to prevent its use by nomadic outsiders. All these fences, those that are hurtful and those that are beneficial, are alike illegal and must come down. But it is an outrage that the law should necessitate such action on the part of the Administration. The unlawful fencing of public lands for private grazing must be stopped, but the necessity which occasioned it must be provided for. The Federal Government should have control of the range, whether by permit or lease, as local necessities may determine. Such control could secure the great benefit of legitimate fencing, while at the same time securing and promoting the settlement of the country. In some places it may be that the tracts of range adjacent to the homesteads of actual settlers should be allotted to them severally or in common for the summer grazing of their stock. Elsewhere it may be that a lease system would serve the purpose; the leases to be temporary and subject to the rights of settlement, and the amount charged being large enough merely to permit of the efficient and beneficial control of the range by the Government, and of the payment to the county of the equivalent of what it would otherwise receive in taxes. The destruction of the public range will continue until some such laws as these are enacted. Fully to prevent the fraud in the public lands which, through the joint action of the Interior Department and the Department of Justice, we have been endeavoring to prevent, there must be further legislation, and especially a sufficient appropriation to permit the Department of the Interior to examine certain classes of entries on the ground before they pass into private ownership. The Government should part with its title only to the actual home-maker, not to the profit-maker who does not care to make a home. Our prime object is to secure the rights and guard the interests of the small ranchman, the man who plows and pitches hay for himself. It is this small ranchman, this actual settler and homemaker, who in the long run is most hurt by permitting thefts of the public land in whatever form. Optimism is a good characteristic, but if carried to an excess it becomes foolishness. We are prone to speak of the resources of this country as inexhaustible; this is not so. The mineral wealth of the country, the coal, iron, oil, gas, and the like, does not reproduce itself, and therefore is certain to be exhausted ultimately; and wastefulness in dealing with it to-day means that our descendants will feel the exhaustion a generation or two before they otherwise would. But there are certain other forms of waste which could be entirely stopped--the waste of soil by washing, for instance, which is among the most dangerous of all wastes now in progress in the United States, is easily preventable, so that this present enormous loss of fertility is entirely unnecessary. The preservation or replacement of the forests is one of the most important means of preventing this loss. We have made a beginning in forest preservation, but it is only a beginning. At present lumbering is the fourth greatest industry in the United States; and yet, so rapid has been the rate of exhaustion of timber in the United States in the past, and so rapidly is the remainder being exhausted, that the country is unquestionably on the verge of a timber famine which will be felt in every household in the land. There has already been a rise in the price of lumber, but there is certain to be a more rapid and heavier rise in the future. The present annual consumption of lumber is certainly three times as great as the annual growth; and if the consumption and growth continue unchanged, practically all our lumber will be exhausted in another generation, while long before the limit to complete exhaustion is reached the growing scarcity will make itself felt in many blighting ways upon our National welfare. About 20 per cent of our forested territory is now reserved in National forests; but these do not include the most valuable timber lauds, and in any event the proportion is too small to expect that the reserves can accomplish more than a mitigation of the trouble which is ahead for the nation. Far more drastic action is needed. Forests can be lumbered so as to give to the public the full use of their mercantile timber without the slightest detriment to the forest, any more than it is a detriment to a farm to furnish a harvest; so that there is no parallel between forests and mines, which can only be completely used by exhaustion. But forests, if used as all our forests have been used in the past and as most of them are still used, will be either wholly destroyed, or so damaged that many decades have to pass before effective use can be made of them again. All these facts are so obvious that it is extraordinary that it should be necessary to repeat them. Every business man in the land, every writer in the newspapers, every man or woman of an ordinary school education, ought to be able to see that immense quantities of timber are used in the country, that the forests which supply this timber are rapidly being exhausted, and that, if no change takes place, exhaustion will come comparatively soon, and that the effects of it will be felt severely in the every-day life of our people. Surely, when these facts are so obvious, there should be no delay in taking preventive measures. Yet we seem as a nation to be willing to proceed in this matter with happy-go-lucky indifference even to the immediate future. It is this attitude which permits the self-interest of a very few persons to weigh for more than the ultimate interest of all our people. There are persons who find it to their immense pecuniary benefit to destroy the forests by lumbering. They are to be blamed for thus sacrificing the future of the Nation as a whole to their own self-interest of the moment; but heavier blame attaches to the people at large for permitting such action, whether in the White Mountains, in the southern Alleghenies, or in the Rockies and Sierras. A big lumbering company, impatient for immediate returns and not caring to look far enough ahead, will often deliberately destroy all the good timber in a region, hoping afterwards to move on to some new country. The shiftless man of small means, who does not care to become an actual home-maker but would like immediate profit, will find it to his advantage to take up timber land simply to turn it over to such a big company, and leave it valueless for future settlers. A big mine owner, anxious only to develop his mine at the moment, will care only to cut all the timber that he wishes without regard to the future--probably net looking ahead to the condition of the country when the forests are exhausted, any more than he does to the condition when the mine is worked out. I do not blame these men nearly as much as I blame the supine public opinion, the indifferent public opinion, which permits their action to go unchecked. Of course to check the waste of timber means that there must be on the part of the public the acceptance of a temporary restriction in the lavish use of the timber, in order to prevent the total loss of this use in the future. There are plenty of men in public and private life who actually advocate the continuance of the present system of unchecked and wasteful extravagance, using as an argument the fact that to check it will of course mean interference with the ease and comfort of certain people who now get lumber at less cost than they ought to pay, at the expense of the future generations. Some of these persons actually demand that the present forest reserves be thrown open to destruction, because, forsooth, they think that thereby the price of lumber could be put down again for two or three or more years. Their attitude is precisely like that of an agitator protesting against the outlay of money by farmers on manure and in taking care of their farms generally. Undoubtedly, if the average farmer were content absolutely to ruin his farm, he could for two or three years avoid spending any money on it, and yet make a good deal of money out of it. But only a savage would, in his private affairs, show such reckless disregard of the future; yet it is precisely this reckless disregard of the future which the opponents of the forestry system are now endeavoring to get the people of the United States to show. The only trouble with the movement for the preservation of our forests is that it has not gone nearly far enough, and was not begun soon enough. It is a most fortunate thing, however, that we began it when we did. We should acquire in the Appalachian and White Mountain regions all the forest lands that it is possible to acquire for the use of the Nation. These lands, because they form a National asset, are as emphatically national as the rivers which they feed, and which flow through so many States before they reach the ocean. There should be no tariff on any forest product grown in this country; and, in especial, there should be no tariff on wood pulp; due notice of the change being of course given to those engaged in the business so as to enable them to adjust themselves to the new conditions. The repeal of the duty on wood pulp should if possible be accompanied by an agreement with Canada that there shall be no export duty on Canadian pulp wood. In the eastern United States the mineral fuels have already passed into the hands of large private owners, and those of the West are rapidly following. It is obvious that these fuels should be conserved and not wasted, and it would be well to protect the people against unjust and extortionate prices, so far as that can still be done. What has been accomplished in the great oil fields of the Indian Territory by the action of the Administration, offers a striking example of the good results of such a policy. In my judgment the Government should have the right to keep the fee of the coal, oil, and gas fields in its own possession and to lease the rights to develop them under proper regulations; or else, if the Congress will not adopt this method, the coal deposits should be sold under limitations, to conserve them as public utilities, the right to mine coal being separated from the title to the soil. The regulations should permit coal lands to be worked in sufficient quantity by the several corporations. The present limitations have been absurd, excessive, and serve no useful purpose, and often render it necessary that there should be either fraud or close abandonment of the work of getting out the coal. Work on the Panama Canal is proceeding in a highly satisfactory manner. In March last, John F. Stevens, chairman of the Commission and chief engineer, resigned, and the Commission was reorganized and constituted as follows: Lieut. Col. George W. Goethals, Corps. of Engineers, YOU. S. Army, chairman and chief engineer; Maj. D. D. Gall-lard, Corps of Engineers, YOU. S. Army; Maj. William L. Sibert, Corps of Engineers, YOU. S. Army; Civil Engineer H. H. Rousseau, YOU. S. Navy; Mr. J. C. S. Blackburn; Col. W. C. Gorgas, YOU. S. Army, and Mr. Jackson Smith, Commissioners. This change of authority and direction went into effect on April 1, without causing a perceptible check to the progress of the work. In March the total excavation in the Culebra Cut, where effort was chiefly concentrated, was 815,270 cubic yards. In April this was increased to 879,527 cubic yards. There was a considerable decrease in the output for May and June owing partly to the advent of the rainy season and partly to temporary trouble with the steam shovel men over the question of wages. This trouble was settled satisfactorily to all parties and in July the total excavation advanced materially and in August the grand total from all points in the canal prism by steam shovels and dredges exceeded all previous United States records, reaching 1,274,404 cubic yards. In September this record was eclipsed and a total of 1,517,412 cubic yards was removed. Of this amount 1,481,307 cubic yards were from the canal prism and 36,105 cubic yards were from accessory works. These results were achieved in the rainy season with a rainfall in August of 11.89 inches and in September of 11.65 inches. Finally, in October, the record was again eclipsed, the total excavation being 1,868,729 cubic yards; a truly extraordinary record, especially in view of the heavy rainfall, which was 17.1 inches. In fact, experience during the last two rainy seasons demonstrates that the rains are a less serious obstacle to progress than has hitherto been supposed. Work on the locks and dams at Gatun, which began actively in March last, has advanced so far that it is thought that masonry work on the locks can be begun within fifteen months. In order to remove all doubt as to the satisfactory character of the foundations for the locks of the Canal, the Secretary of War requested three eminent civil engineers, of special experience in such construction, Alfred Noble, Frederic P. Stearns and John R. Freeman, to visit the Isthmus and make thorough personal investigations of the sites. These gentlemen went to the Isthmus in April and by means of test pits which had been dug for the purpose, they inspected the proposed foundations, and also examined the borings that had been made. In their report to the Secretary of War, under date of May 2, 1907, they said: "We found that all of the locks, of the dimensions now propesed, will rest upon rock of such character that it will furnish a safe and stable foundation." Subsequent new borings, conducted by the present Commission, have fully confirmed this verdict. They show that the locks will rest on rock for their entire length. The cross section of the dam and method of construction will be such as to insure against any slip or sloughing off. Similar examination of the foundations of the locks and dams on the Pacific side are in progress. I believe that the locks should be made of a width of 120 feet. Last winter bids were requested and received for doing the work of canal construction by contract. None of them was found to be satisfactory and all were rejected. It is the unanimous opinion of the present Commission that the work can be done better, more cheaply, and more quickly by the Government than by private contractors. Fully 80 per cent of the entire plant needed for construction has been purchased or contracted for; machine shops have been erected and equipped for making all needed repairs to the plant; many thousands of employees have been secured; an effective organization has been perfected; a recruiting system is in operation which is capable of furnishing more labor than can be used advantageously; employees are well sheltered and well fed; salaries paid are satisfactory, and the work is not only going forward smoothly, but it is producing results far in advance of the most sanguine anticipations. Under these favorable conditions, a change in the method of prosecuting the work would be unwise and unjustifiable, for it would inevitably disorganize existing conditions, check progress, and increase the cost and lengthen the time of completing the Canal. The chief engineer and all his professional associates are firmly convinced that the 85 feet level lock canal which they are constructing is the best that could be desired. Some of them had doubts on this point when they went to the Isthmus. As the plans have developed under their direction their doubts have been dispelled. While they may decide upon changes in detail as construction advances they are in hearty accord in approving the general plan. They believe that it provides a canal not only adequate to all demands that will be made upon it but superior in every way to a sea level canal. I concur in this belief. I commend to the favorable consideration of the Congress a postal savings bank system, as recommended by the Postmaster-General. The primary object is to encourage among our people economy and thrift and by the use of postal savings banks to give them an opportunity to husband their resources, particularly those who have not the facilities at hand for depositing their money in savings banks. Viewed, however, from the experience of the past few weeks, it is evident that the advantages of such an institution are till more far-reaching. Timid depositors have withdrawn their savings for the time being from national banks, trust companies, and savings banks; individuals have hoarded their cash and the workingmen their earnings; all of which money has been withheld and kept in hiding or in safe deposit box to the detriment of prosperity. Through the agency of the postal savings banks such money would be restored to the channels of trade, to the mutual benefit of capital and labor. I further commend to the Congress the consideration of the Postmaster-General's recommendation for an extension of the parcel post, especially on the rural routes. There are now 38,215 rural routes, serving nearly 15,000,000 people who do not have the advantages of the inhabitants of cities in obtaining their supplies. These recommendations have been drawn up to benefit the farmer and the country storekeeper; otherwise, I should not favor them, for I believe that it is good policy for our Government to do everything possible to aid the small town and the country district. It is desirable that the country merchant should not be crushed out. The fourth-class postmasters' convention has passed a very strong resolution in favor of placing the fourth-class postmasters under the civil-service law. The Administration has already put into effect the policy of refusing to remove any fourth-class postmasters save for reasons connected with the good of the service; and it is endeavoring so far as possible to remove them from the domain of partisan politics. It would be a most desirable thing to put the fourth-class postmasters in the classified service. It is possible that this might be done without Congressional action, but, as the matter is debatable, I earnestly recommend that the Congress enact a law providing that they be included under the civil-service law and put in the classified service. Oklahoma has become a State, standing on a full equality with her elder sisters, and her future is assured by her great natural resources. The duty of the National Government to guard the personal and property rights of the Indians within her borders remains of course unchanged. I reiterate my recommendations of last year as regards Alaska. Some form of local self-government should be provided, as simple and inexpensive as possible; it is impossible for the Congress to devote the necessary time to all the little details of necessary Alaskan legislation. Road building and railway building should be encouraged. The Governor of Alaska should begiven an ample appropriation wherewith to organize a force to preserve the public peace. Whisky selling to the natives should be made a felony. The coal land laws should be changed so as to meet the peculiar needs of the Territory. This should be attended to at once; for the present laws permit individuals to locate large areas of the public domain for speculative purposes; and because an immense amount of trouble, fraud, and litigation. There should be another judicial division established. As early as possible lighthouses and buoys should be established as aids to navigation, especially in and about Prince William Sound, and the survey of the coast completed. There is need of liberal appropriations for lighting and buoying the southern coast and improving the aids to navigation in southeastern Alaska. One of the great industries of Alaska, as of Puget Sound and the Columbia, is salmon fishing. Gradually, by reason of lack of proper laws, this industry is being ruined; it should now be taken in charge, and effectively protected, by the United States Government. The courage and enterprise of the citizens of the farnorth-west in their projected Alaskan-Yukon-Pacific Exposition, to be held in 1909, should receive liberal encouragement. This exposition is not sentimental in its conception, but seeks to exploit the natural resources of Alaska and to promote the commerce, trade, and industry of the Pacific States with their neighboring States and with our insular possessions and the neighboring countries of the Pacific. The exposition asks no loan from the Congress but seeks appropriations for National exhibits and exhibits of the western dependencies of the General Government. The State of Washington and the city of Seattle have shown the characteristic western enterprise in large donations for the conduct of this exposition in which other States are lending generous assistance. The unfortunate failure of the shipping bill at the last session of the last Congress was followed by the taking off of certain Pacific steamships, which has greatly hampered the movement of passengers between Hawaii and the mainland. Unless the Congress is prepared by positive encouragement to secure proper facilities in the way of shipping between Hawaii and the mainland, then the coastwise shipping laws should be so far relaxed as to prevent Hawaii suffering as it is now suffering. I again call your attention to the capital importance from every standpoint of making Pearl Harbor available for the largest deep water vessels, and of suitably fortifying the islan The Secretary of War has gone to the Philippines. On his return I shall submit to you his report on the islands. I again recommend that the rights of citizenship be conferred upon the people of Porto Rico. A bureau of mines should be created under the control and direction of the Secretary of the Interior; the bureau to have power to collect statistics and make investigations in all matters pertaining to mining and particularly to the accidents and dangers of the industry. If this can not now be done, at least additional appropriations should be given the Interior Department to be used for the study of mining conditions, for the prevention of fraudulent mining schemes, for carrying on the work of mapping the mining districts, for studying methods for minimizing the accidents and dangers in the industry; in short, to aid in all proper ways the development of the mining industry. I strongly recommend to the Congress to provide funds for keeping up the Hermitage, the home of Andrew Jackson; these funds to be used through the existing Hermitage Association for the preservation of a historic building which should ever be dear to Americans. I further recommend that a naval monument be established in the Vicksburg National Park. This national park gives a unique opportunity for commemorating the deeds of those gallant men who fought on water, no less than of those who fought on land, in the great civil War. Legislation should be enacted at the present session of the Congress for the Thirteenth Census. The establishment of the permanent Census Bureau affords the opportunity for a better census than we have ever had, but in order to realize the full advantage of the permanent organization, ample time must be given for preparation. There is a constantly growing interest in this country in the question of the public health. At last the public mind is awake to the fact that many diseases, notably tuberculosis, are National scourges. The work of the State and city boards of health should be supplemented by a constantly increasing interest on the part of the National Government. The Congress has already provided a bureau of public health and has provided for a hygienic laboratory. There are other valuable laws relating to the public health connected with the various departments. This whole branch of the Government should be strengthened and aided in every way. I call attention to two Government commissions which I have appointed and which have already done excellent work. The first of these has to do with the organization of the scientific work of the Government, which has grown up wholly without plan and is in consequence so unwisely distributed among the Executive Departments that much of its effect is lost for the lack of proper coordination. This commission's chief object is to introduce a planned and orderly development and operation in the place of the ill-assorted and often ineffective grouping and methods of work which have prevailed. This can not be done without legislation, nor would it be feasible to deal in detail with so complex an administrative problem by specific provisions of law. I recommend that the President be given authority to concentrate related lines of work and reduce duplication by Executive order through transfer and consolidation of lines of work. The second committee, that on Department methods, was instructed to investigate and report upon the changes needed to place the conduct of the executive force of the Government on the most economical and effective basis in the light of the best modern business practice. The committee has made very satisfactory progress. Antiquated practices and bureaucratic ways have been abolished, and a general renovation of departmental methods has been inaugurated. All that can be done by Executive order has already been accomplished or will be put into effect in the near future. The work of the main committee and its several assistant committees has produced a wholesome awakening on the part of the great body of officers and employees engaged in Government work. In nearly every Department and office there has been a careful self-inspection for the purpose of remedying any defects before they could be made the subject of adverse criticism. This has led individuals to a wider study of the work on which they were engaged, and this study has resulted in increasing their efficiency in their respective lines of work. There are recommendations of special importance from the committee on the subject of personnel and the classification of salaries which will require legislative action before they can be put into effect. It is my intention to submit to the Congress in the near future a special message on those subjects. Under our form of government voting is not merely a right but a duty, and, moreover, a fundamental and necessary duty if a man is to be a good citizen. It is well to provide that corporations shall not contribute to Presidential or National campaigns, and furthermore to provide for the publication of both contributions and expenditures. There is, however, always danger in laws of this kind, which from their very nature are difficult of enforcement; the danger being lest they be obeyed only by the honest, and disobeyed by the unscrupulous, so as to act only as a penalty upon honest men. Moreover, no such law would hamper an unscrupulous man of unlimited means from buying his own way into office. There is a very radical measure which would, I believe, work a substantial improvement in our system of conducting a campaign, although I am well aware that it will take some time for people so to familiarize themselves with such a proposal as to be willing to consider its adoption. The need for collecting large campaign funds would vanish if Congress provided an appropriation for the proper and legitimate expenses of each of the great national parties, an appropriation ample enough to meet the necessity for thorough organization and machinery, which requires a large expenditure of money. Then the stipulation should be made that no party receiving campaign funds from the Treasury should accept more than a fixed amount from any individual subscriber or donor; and the necessary publicity for receipts and expenditures could without difficulty be provided. There should be a National gallery of art established in the capital city of this country. This is important not merely to the artistic but to the material welfare of the country; and the people are to be congratulated on the fact that the movement to establish such a gallery is taking definite form under the guidance of the Smithsonian Institution. So far from there being a tariff on works of art brought into the country, their importation should be encouraged in every way. There have been no sufficient collections of objects of art by the Government, and what collections have been acquired are scattered and are generally placed in unsuitable and imperfectly lighted galleries. The Biological Survey is quietly working for the good of our agricultural interests, and is an excellent example of a Government bureau which conducts original scientific research the findings of which are of much practical utility. For more than twenty years it has studied the food habits of birds and mammals that are injurious or beneficial to agriculture, horticulture, and forestry; has distributed illustrated bulletins on the subject, and has labored to secure legislative protection for the beneficial species. The cotton boll-weevil, which has recently overspread the cotton belt of Texas and is steadily extending its range, is said to because an annual loss of about $3,000,000. The Biological Survey has ascertained and gives wide publicity to the fact that at least 43 kinds of birds prey upon this destructive insect. It has discovered that 57 species of birds feed upon scale-insects--dreaded enemies of the fruit grower. It has shown that woodpeckers as a class, by destroying the larvae of wood-boring insects, are so essential to tree life that it is doubtful if our forests could exist without them. It has shown that cuckoos and orioles are the natural enemies of the leaf-eating caterpillars that destroy our shade and fruit trees; that our quails and sparrows consume annually hundreds of tons of seeds of noxious weeds; that hawks and owls as a class (excepting the few that kill poultry and game birds) are markedly beneficial, spending their lives in catching grasshoppers, mice, and other pests that prey upon the products of husbandry. It has conducted field experiments for the purpose of devising and perfecting simple methods for holding in check the hordes of destructive rodents--rats, mice, rabbits, gophers, prairie dogs, and ground squirrels--which annually destroy crops worth many millions of dollars; and it has published practical directions for the destruction of wolves and coyotes on the stock ranges of the West, resulting during the past year in an estimated saving of cattle and sheep valued at upwards of a million dollars. It has inaugurated a system of inspection at the principal ports of entry on both Atlantic and Pacific coasts by means of which the introduction of noxious mammals and birds is prevented, thus keeping out the mongoose and certain birds which are as much to be dreaded as the previously introduced English sparrow and the house rats and mice. In the interest of game protection it has cooperated with local officials in every State in the Union, has striven to promote uniform legislation in the several States, has rendered important service in enforcing the Federal law regulating interstate traffic in game, and has shown bow game protection may be made to yield a large revenue to the State--a revenue amounting in the case of Illinois to $128,000 in a single year. The Biological Survey has explored the faunas and floras of America with reference to the distribution of animals and plants; it has defined and mapped the natural life areas--areas in which, by reason of prevailing climatic conditions, certain kinds of animals and plants occur--and has pointed out the adaptability of these areas to the cultivation of particular crops. The results of these investigations are not only of high educational value but are worth each year to the progressive farmers of the country many times the cost of maintaining the Survey, which, it may be added, is exceedingly small. I recommend to Congress that this bureau, whose usefulness is seriously handicapped by lack of funds, be granted an appropriation in some degree commensurate with the importance of the work it is doing. I call your especial attention to the unsatisfactory condition of our foreign mail service, which, because of the lack of American steamship lines is now largely done through foreign lines, and which, particularly so far as South and Central America are concerned, is done in a manner which constitutes a serious barrier to the extension of our commerce. The time has come, in my judgment, to set to work seriously to make our ocean mail service correspond more closely with our recent commercial and political development. A beginning was made by the ocean mail act of March 3, 1891, but even at that time the act was known to be inadequate in various particulars. Since that time events have moved rapidly in our history. We have acquired Hawaii, the Philippines, and lesser islands in the Pacific. We are steadily prosecuting the great work of uniting at the Isthmus the waters of the Atlantic and the Pacific. To a greater extent than seemed probable even a dozen years ago, we may look to an American future on the sea worthy of the traditions of our past. As the first step in that direction, and the step most feasible at the present time, I recommend the extension of the ocean mail act of 1891. This act has stood for some years free from successful criticism of its principle and purpose. It was based on theories of the obligations of a great maritime nation, undisputed in our own land and followed by other nations since the beginning of steam navigation. Briefly those theories are, that it is the duty of a first-class Power so far as practicable to carry its ocean mails under its own flag;that the fast ocean steamships and their crews, required for such mail service, are valuable auxiliaries to the sea power of a nation. Furthermore, the construction of such steamships insures the maintenance in an efficient condition of the shipyards in which our battleships must be built. The expenditure of public money for the Performance of such necessary functions of government is certainly warranted, nor is it necessary to dwell upon the incidental benefits to our foreign commerce, to the shipbuilding industry, and to ship owning and navigation which will accompany the discharge of these urgent public duties, though they, too, should have weight. The only serious question is whether at this time we can afford to improve our ocean mail service as it should be improved. All doubt on this subject is removed by the reports of the Post-Office Department. For the fiscal year ended June 30, 1907, that Department estimates that the postage collected on the articles exchanged with foreign countries other than Canada and Mexico amounted to $6,579,043.48, or $3,637,226.81 more than the net cost of the service exclusive of the cost of transporting the articles between the United States exchange post-offices and the United States post-offices at which they were mailed or delivered. In other words, the Government of the United States, having assumed a monopoly of carrying the mails for the people, making a profit of over $3,600,000 by rendering a cheap and inefficient service. That profit I believe should be devoted to strengthening maritime power in those directions where it will best promote our prestige. The country is familiar with the facts of our maritime impotence in the harbors of the great and friendly Republics of South America. Following the failure of the shipbuilding bill we lost our only American line of steamers to Australasia, and that loss on the Pacific has become a serious embarrassment to the people of Hawaii, and has wholly cut off the Samoan islands from regular communication with the Pacific coast. Puget Sound, in the year, has lost over half (four out of seven) of its American steamers trading with the Orient. We now pay under the act of 1891 $4 a statute mile outward to 20-knot American mail steamships, built according to naval plans, available as cruisers, and manned by Americans. Steamships of that speed are confined exclusively to trans-Atlantic trade with New York. To steamships of 16 knots or over only $2 a mile can be paid, and it is steamships of this speed and type which are needed to meet the requirements of mail service to South America, Asia (including the Philippines), and Australia. I strongly recommend, therefore, a simple amendment to the ocean mail act of 1891 which shall authorize the Postmaster-General in his discretion to enter into contracts for the transportation of mails to the Republics of South America, to Asia, the Philippines, and Australia at a rate not to exceed $4 a mile for steamships of 16 knots speed or upwards, subject to the restrictions and obligations of the act of 1891. The profit of $3,600,000 which has been mentioned will fully cover the maximum annual expenditure involved in this recommendation, and it is believed will in time establish the lines so urgently needed. The proposition involves no new principle, but permits the efficient discharge of public functions now inadequately performed or not performed at all. Not only there is not now, but there never has been, any other nation in the world so wholly free from the evils of militarism as is ours. There never has been any other large nation, not even China, which for so long a period has had relatively to its numbers so small a regular army as has ours. Never at any time in our history has this Nation suffered from militarism or been in the remotest danger of suffering from militarism. Never at any time of our history has the Regular Army been of a size which caused the slightest appreciable tax upon the tax-paying citizens of the Nation. Almost always it has been too small in size and underpaid. Never in our entire history has the Nation suffered in the least particular because too much care has been given to the Army, too much prominence given it, too much money spent upon it, or because it has been too large. But again and again we have suffered because enough care has not been given to it, because it has been too small, because there has not been sufficient preparation in advance for possible war. Every foreign war in which we have engaged has cost us many times the amount which, if wisely expended during the preceding years of peace on the Regular Army, would have insured the war ending in but a fraction of the time and but for a fraction of the cost that was actually the case. As a Nation we have always been shortsighted in providing for the efficiency of the Army in time of peace. It is nobody's especial interest to make such provision and no one looks ahead to war at any period, no matter how remote, as being a serious possibility; while an improper economy, or rather niggardliness, can be practiced at the expense of the Army with the certainty that those practicing it will not be called to account therefor, but that the price will be paid by the unfortunate persons who happen to be in office when a war does actually come. I think it is only lack of foresight that troubles us, not any hostility to the Army. There are, of course, foolish people who denounce any care of the Army or Navy as "militarism," but I do not think that these people are numerous. This country has to contend now, and has had to contend in the past, with many evils, and there is ample scope for all who would work for reform. But there is not one evil that now exists, or that ever has existed in this country, which is, or ever has been, owing in the smallest part to militarism. Declamation against militarism has no more serious place in an earnest and intelligent movement for righteousness in this country than declamation against the worship of Baal or Astaroth. It is declamation against a non-existent evil, one which never has existed in this country, and which has not the slightest chance of appearing here. We are glad to help in any movement for international peace, but this is because we sincerely believe that it is our duty to help all such movements provided they are sane and rational, and not because there is any tendency toward militarism on our part which needs to be cured. The evils we have to fight are those in connection with industrialism, not militarism. Industry is always necessary, just as war is sometimes necessary. Each has its price, and industry in the United States now exacts, and has always exacted, a far heavier toll of death than all our wars put together. The statistics of the railroads of this country for the year ended June 30, 1906, the last contained in the annual statistical report of the Interstate Commerce Commission, show in that one year a total of 108,324 casualties to persons, of which 10,618 represent the number of persons killed. In that wonderful hive of human activity, Pittsburg, the deaths due to industrial accidents in 1906 were 919, all the result of accidents in mills, mines or on railroads. For the entire country, therefore, it is safe to say that the deaths due to industrial accidents aggregate in the neighborhood of twenty thousand a year. Such a record makes the death rate in all our foreign wars utterly trivial by comparison. The number of deaths in battle in all the foreign wars put together, for the last century and a quarter, aggregate considerably less than one year's death record for our industries. A mere glance at these figures is sufficient to show the absurdity of the outcry against militarism. But again and again in the past our little Regular Army has rendered service literally vital to the country, and it may at any time have to do so in the future. Its standard of efficiency and instruction is higher now than ever in the past. But it is too small. There are not enough officers; and it is impossible to secure enough enlisted men. We should maintain in peace a fairly complete skeleton of a large army. A great and long-continued war would have to be fought by volunteers. But months would pass before any large body of efficient volunteers could be put in the field, and our Regular Army should be large enough to meet any immediate need. In particular it is essential that we should possess a number of extra officers trained in peace to perform efficiently the duties urgently required upon the breaking out of war. The Medical Corps should be much larger than the needs of our Regular Army in war. Yet at present it is smaller than the needs of the service demand even in peace. The Spanish war occurred less than ten years ago. The chief loss we suffered in it was by disease among the regiments which never left the country. At the moment the Nation seemed deeply impressed by this fact; yet seemingly it has already been forgotten, for not the slightest effort has been made to prepare a medical corps of sufficient size to prevent the repetition of the same disaster on a much larger scale if we should ever be engaged in a serious conflict. The trouble in the Spanish war was not with the then existing officials of the War Department; it was with the representatives of the people as a whole who, for the preceding thirty years, had declined to make the necessary provision for the Army. Unless ample provision is now made by Congress to put the Medical Corps where it should be put disaster in the next war is inevitable, and the responsibility will not lie with those then in charge of the War Department, but with those who now decline to make the necessary provision. A well organized medical corps, thoroughly trained before the advent of war in all the important administrative duties of a military sanitary corps, is essential to the efficiency of any large army, and especially of a large volunteer army. Such knowledge of medicine and surgery as is possessed by the medical profession generally will not alone suffice to make an efficient military surgeon. He must have, in addition, knowledge of the administration and sanitation of large field hospitals and camps, in order to safeguard the health and lives of men intrusted in great numbers to his care. A bill has long been pending before the Congress for the reorganization of the Medical Corps; its passage is urgently needed. But the Medical Department is not the only department for which increased provision should be made. The rate of pay for the officers should be greatly increased; there is no higher type of citizen than the American regular officer, and he should have a fair reward for his admirable work. There should be a relatively even greater increase in the pay for the enlisted men. In especial provision should be made for establishing grades equivalent to those of warrant officers in the Navy which should be open to the enlisted men who serve sufficiently long and who do their work well. Inducements should be offered sufficient to encourage really good men to make the Army a life occupation. The prime needs of our present Army is to secure and retain competent noncommissioned officers. This difficulty rests fundamentally on the question of pay. The noncommissioned officer does not correspond with an unskilled laborer; he corresponds to the best type of skilled workman or to the subordinate official in civil institutions. Wages have greatly increased in outside occupations in the last forty years and the pay of the soldier, like the pay of the officers, should be proportionately increased. The first sergeant of a company, if a good man, must be one of such executive and administrative ability, and such knowledge of his trade, as to be worth far more than we at present pay him. The same is true of the regimental sergeant major. These men should be men who had fully resolved to make the Army a life occupation and they should be able to look forward to ample reward; while only men properly qualified should be given a chance to secure these final rewards. The increase over the present pay need not be great in the lower grades for the first one or two enlistments, but the increase should be marked for the noncommissioned officers of the upper grades who serve long enough to make it evident that they intend to stay permanently in the Army, while additional pay should be given for high qualifications in target practice. The position of warrant officer should be established and there should be not only an increase of pay, but an increase of privileges and allowances and dignity, so as to make the grade open to noncommissioned officers capable of filling them desirably from every standpoint. The rate of desertion in our Army now in time of peace is alarming. The deserter should be treated by public opinion as a man guilty of the greatest crime; while on the other hand the man who serves steadily in the Army should be treated as what he is, that is, as preeminently one of the best citizens of this Republic. After twelve years' service in the Army, my own belief is that the man should be given a preference according to his ability for certain types of office over all civilian applicants without examination. This should also apply, of course, to the men who have served twelve years in the Navy. A special corps should be provided to do the manual labor now necessarily demanded of the privates themselves. Among the officers there should be severe examinations to weed out the unfit up to the grade of major. From that position on appointments should be solely by selection and it should be understood that a man of merely average capacity could never get beyond the position of major, while every man who serves in any grade a certain length of time prior to promotion to the next grade without getting the promotion to the next grade should be forthwith retired. The practice marches and field maneuvers of the last two or three years have been invaluable to the Army. They should be continued and extended. A rigid and not a perfunctory examination of physical capacity has been provided for the higher grade officers. This will work well. Unless an officer has a good physique, unless he can stand hardship, ride well, and walk fairly, he is not fit for any position, even after he has become a colonel. Before he has become a colonel the need for physical fitness in the officers is almost as great as in the enlisted man. I hope speedily to see introduced into the Army a far more rigid and thoroughgoing test of horsemanship for all field officers than at present. There should be a Chief of Cavalry just as there is a Chief of Artillery. Perhaps the most important of all legislation needed for the benefit of the Army is a law to equalize and increase the pay of officers and enlisted men of the Army, Navy, Marine Corps, and Revenue-Cutter Service. Such a bill has been prepared, which it is hoped will meet with your favorable consideration. The next most essential measure is to authorize a number of extra officers as mentioned above. To make the Army more attractive to enlisted men, it is absolutely essential to create a service corps, such as exists in nearly every modern army in the world, to do the skilled and unskilled labor, inseparably connected with military administration, which is now exacted, without just compensation, of enlisted men who voluntarily entered the Army to do service of an altogether different kind. There are a number of other laws necessary to so organize the Army as to promote its efficiency and facilitate its rapid expansion in time of war; but the above are the most important. It was hoped The Hague Conference might deal with the question of the limitation of armaments. But even before it had assembled informal inquiries had developed that as regards naval armaments, the only ones in which this country had any interest, it was hopeless to try to devise any plan for which there was the slightest possibility of securing the assent of the nations gathered at The Hague. No plan was even proposed which would have had the assent of more than one first class Power outside of the United States. The only plan that seemed at all feasible, that of limiting the size of battleships, met with no favor at all. It is evident, therefore, that it is folly for this Nation to base any hope of securing peace on any international agreement as to the limitations of armaments. Such being the fact it would be most unwise for us to stop the upbuilding of our Navy. To build one battleship of the best and most advanced type a year would barely keep our fleet up to its present force. This is not enough. In my judgment, we should this year provide for four battleships. But it is idle to build battleships unless in addition to providing the men, and the means for thorough training, we provide the auxiliaries for them, unless we provide docks, the coaling stations, the colliers and supply ships that they need. We are extremely deficient in coaling stations and docks on the Pacific, and this deficiency should not longer be permitted to exist. Plenty of torpedo boats and destroyers should be built. Both on the Atlantic and Pacific coasts, fortifications of the best type should be provided for all our greatest harbors. We need always to remember that in time of war the Navy is not to be used to defend harbors and sea-coast cities; we should perfect our system of coast fortifications. The only efficient use for the Navy is for offense. The only way in which it can efficiently protect our own coast against the possible action of a foreign navy is by destroying that foreign navy. For defense against a hostile fleet which actually attacks them, the coast cities must depend upon their forts, mines, torpedoes, submarines, and torpedo boats and destroyers. All of these together are efficient for defensive purposes, but they in no way supply the place of a thoroughly efficient navy capable of acting on the offensive; for parrying never yet won a fight. It can only be won by hard hitting, and an aggressive sea-going navy alone can do this hard hitting of the offensive type. But the forts and the like are necessary so that the Navy may be footloose. In time of war there is sure to be demand, under pressure, of fright, for the ships to be scattered so as to defend all kind of ports. Under penalty of terrible disaster, this demand must be refused. The ships must be kept together, and their objective made the enemies' fleet. If fortifications are sufficiently strong, no modern navy will venture to attack them, so long as the foe has in existence a hostile navy of anything like the same size or efficiency. But unless there exists such a navy then the fortifications are powerless by themselves to secure the victory. For of course the mere deficiency means that any resolute enemy can at his leisure combine all his forces upon one point with the certainty that he can take it. Until our battle fleet is much larger than at present it should never be split into detachments so far apart that they could not in event of emergency be speedily united. Our coast line is on the Pacific just as much as on the Atlantic. The interests of California, Oregon, and Washington are as emphatically the interests of the whole Union as those of Maine and New York, of Louisiana and Texas. The battle fleet should now and then be moved to the Pacific, just as at other times it should be kept in the Atlantic. When the Isthmian Canal is built the transit of the battle fleet from one ocean to the other will be comparatively easy. Until it is built I earnestly hope that the battle fleet will be thus shifted between the two oceans every year or two. The marksmanship on all our ships has improved phenomenally during the last five years. Until within the last two or three years it was not possible to train a battle fleet in squadron maneuvers under service conditions, and it is only during these last two or three years that the training under these conditions has become really effective. Another and most necessary stride in advance is now being taken. The battle fleet is about starting by the Straits of Magellan to visit the Pacific coast.. Sixteen battleships are going under the command of Rear-Admiral Evans, while eight armored cruisers and two other battleships will meet him at San Francisco, whither certain torpedo destroyers are also going. No fleet of such size has ever made such a voyage, and it will be of very great educational use to all engaged in it. The only way by which to teach officers and men how to handle the fleet so as to meet every possible strain and emergency in time of war is to have them practice under similar conditions in time of peace. Moreover, the only way to find out our actual needs is to perform in time of peace whatever maneuvers might be necessary in time of war. After war is declared it is too late to find out the needs; that means to invite disaster. This trip to the Pacific will show what some of our needs are and will enable us to provide for them. The proper place for an officer to learn his duty is at sea, and the only way in which a navy can ever be made efficient is by practice at sea, under all the conditions which would have to be met if war existed. I bespeak the most liberal treatment for the officers and enlisted men of the Navy. It is true of them, as likewise of the officers and enlisted men of the Army, that they form a body whose interests should be close to the heart of every good American. In return the most rigid performance of duty should be exacted from them. The reward should be ample when they do their best; and nothing less than their best should be tolerated. It is idle to hope for the best results when the men in the senior grades come to those grades late in life and serve too short a time in them. Up to the rank of lieutenant-commander promotion in the Navy should be as now, by seniority, subject, however, to such rigid tests as would eliminate the unfit. After the grade of lieutenant-commander, that is, when we come to the grade of command rank, the unfit should be eliminated in such manner that only the conspicuously fit would remain, and sea service should be a principal test of fitness. Those who are passed by should, after a certain length of service in their respective grades, be retired. Of a given number of men it may well be that almost all would make good lieutenants and most of them good lieutenant-commanders, while only a minority be fit to be captains, and but three or four to be admirals. Those who object to promotion otherwise than by mere seniority should reflect upon the elementary fact that no business in private life could be successfully managed if those who enter at the lowest rungs of the ladder should each in turn, if he lived, become the head of the firm, its active director, and retire after he had held the position a few months. On its face such a scheme is an absurdity. Chances for improper favoritism can be minimized by a properly formed board; such as the board of last June, which did such conscientious and excellent work in elimination. If all that ought to be done can not now be done, at least let a beginning be made. In my last three annual Messages, and in a special Message to the last Congress, the necessity for legislation that will because officers of the line of the Navy to reach the grades of captain and rear-admiral at less advanced ages and which will because them to have more sea training and experience in the highly responsible duties of those grades, so that they may become thoroughly skillful in handling battleships, divisions, squadrons, and fleets in action, has been fully explained and urgently recommended. Upon this subject the Secretary of the Navy has submitted detailed and definite recommendations which have received my approval, and which, if enacted into law, will accomplish what is immediately necessary, and will, as compared with existing law, make a saving of more than five millions of dollars during the next seven years. The navy personnel act of 1899 has accomplished all that was expected of it in providing satisfactory periods of service in the several subordinate grades, from the grade of ensign to the grade of lieutenant-commander, but the law is inadequate in the upper grades and will continue to be inadequate on account of the expansion of the personnel since its enactment. Your attention is invited to the following quotations from the report of the personnel board of 1906, of which the Assistant Secretary of the Navy was president: "Congress has authorized a considerable increase in the number of midshipmen at the Naval Academy, and these midshipmen upon graduation are promoted to ensign and lieutenant (junior-grade). But no provision has been made for a corresponding increase in the upper grades, the result being that the lower grades will become so congested that a midshipman now in one of the lowest classes at Annapolis may possibly not be promoted to lieutenant until he is between 45 and 50 years of age. So it will continue under the present law, congesting at the top and congesting at the bottom. The country fails to get from the officers of the service the best that is in them by not providing opportunity for their normal development and training. The board believes that this works a serious detriment to the efficiency of the Navy and is a real menace to the public safety." As stated in my special Message to the last Congress: "I am firmly of the opinion that unless the present conditions of the higher commissioned personnel is rectified by judicious legislation the future of our Navy will be gravely compromised." It is also urgently necessary to increase the efficiency of the Medical Corps of the Navy. Special legislation to this end has already been proposed; and I trust it may be enacted without delay. It must be remembered that everything done in the Navy to fit it to do well in time of war must be done in time of peace. Modern wars are short; they do not last the length of time requisite to build a battleship; and it takes longer to train the officers and men to do well on a battleship than it takes to build it. Nothing effective can be done for the Navy once war has begun, and the result of the war, if the combatants are otherwise equally matched, will depend upon which power has prepared best in time of peace. The United States Navy is the best guaranty the Nation has that its honor and interest will not be neglected; and in addition it offers by far the best insurance for peace that can by human ingenuity be devised. I call attention to the report of the official Board of Visitors to the Naval Academy at Annapolis which has been forwarded to the Congress. The report contains this paragraph: "Such revision should be made of the courses of study and methods of conducting and marking examinations as will develop and bring out the average all-round ability of the midshipman rather than to give him prominence in any one particular study. The fact should be kept in mind that the Naval Academy is not a university but a school, the primary object of which is to educate boys to be efficient naval officers. Changes in curriculum, therefore, should be in the direction of making the course of instruction less theoretical and more practical. No portion of any future class should be graduated in advance of the full four years' course, and under no circumstances should the standard of instruction be lowered. The Academy in almost all of its departments is now magnificently equipped, and it would be very unwise to make the course of instruction less exacting than it is to-day." Acting upon this suggestion I designated three seagoing officers, Capt. Richard Wainwright, Commander Robert S. Griffin, and Lieut. Commander Albert L. Key, all graduates of the Academy, to investigate conditions and to recommend to me the best method of carrying into effect this general recommendation. These officers performed the duty promptly and intelligently, and, under the personal direction of Capt. Charles J. Badger, Superintendent of the Academy, such of the proposed changes as were deemed to be at present advisable were put into effect at the beginning of the academic year, October 1, last. The results, I am confident, will be most beneficial to the Academy, to the midshipmen, and to the Navy. In foreign affairs this country's steady policy is to behave toward other nations as a strong and self-respecting man should behave toward the other men with whom he is brought into contact. In other words, our aim is disinterestedly to help other nations where such help can be wisely given without the appearance of meddling with what does not concern us; to be careful to act as a good neighbor; and at the same time, in good-natured fashion, to make it evident that we do not intend to be imposed upon. The Second International Peace Conference was convened at The Hague on the 15th of June last and remained in session until the 18th of October. For the first time the representatives of practically all the civilized countries of the world united in a temperate and kindly discussion of the methods by which the causes of war might be narrowed and its injurious effects reduced. Although the agreements reached in the Conference did not in any direction go to the length hoped for by the more sanguine, yet in many directions important steps were taken, and upon every subject on the programme there was such full and considerate discussion as to justify the belief that substantial progress has been made toward further agreements in the future. Thirteen conventions were agreed upon embodying the definite conclusions which had been reached, and resolutions were adopted marking the progress made in matters upon which agreement was not yet sufficiently complete to make conventions practicable. The delegates of the United States were instructed to favor an agreement for obligatory arbitration, the establishment of a permanent court of arbitration to proceed judicially in the hearing and decision of international causes, the prohibition of force for the collection of contract debts alleged to be due from governments to citizens of other countries until after arbitration as to the justice and amount of the debt and the time and manner of payment, the immunity of private property at sea, the better definition of the rights of neutrals, and, in case any measure to that end should be introduced, the limitation of armaments. In the field of peaceful disposal of international differences several important advances were made. First, as to obligatory arbitration. Although the Conference failed to secure a unanimous agreement upon the details of a convention for obligatory arbitration, it did resolve as follows; "It is unanimous: (1) In accepting the principle for obligatory arbitration; (2) In declaring that certain differences, and notably those relating to the interpretation and application of international conventional stipulations are susceptible of being submitted to obligatory arbitration without any restriction." In view of the fact that as a result of the discussion the vote upon the definite treaty of obligatory arbitration, which was proposed, stood 32 in favor to 9 against the adoption of the treaty, there can be little doubt that the great majority of the countries of the world have reached a point where they are now ready to apply practically the principles thus unanimously agreed upon by the Conference. The second advance, and a very great one, is the agreement which relates to the use of force for the collection of contract debts. Your attention is invited to the paragraphs upon this subject in my Message of December, 1906, and to the resolution of the Third American Conference at Rio in the summer of 1906. The convention upon this subject adopted by the Conference substantially as proposed by the American delegates is as follows:: "In order to avoid between nations armed conflicts of a purely pecuniary origin arising from contractual debts claimed of the government of one country by the government of another country to be due to its nationals, the signatory Powers agree not to have recourse to armed force for the collection of such contractual debts. "However, this stipulation shall not be applicable when the debtor State refuses or leaves unanswered an offer to arbitrate, or, in case of acceptance, makes it impossible to formulate the terms of submission, or, after arbitration, fails to comply with the award rendered. "It is further agreed that arbitration here contemplated shall be in conformity, as to procedure, with Chapter III of the Convention for the Pacific Settlement of International Disputes adopted at The Hague, and that it shall determine, in so far as there shall be no agreement between the parties, the justice and the amount of the debt, the time and mode of payment thereof." Such a provision would have prevented much injustice and extortion in the past, and I cannot doubt that its effect in the future will be most salutary. A third advance has been made in amending and perfecting the convention of 1899 for the voluntary settlement of international disputes, and particularly the extension of those parts of that convention which relate to commissions of inquiry. The existence of those provisions enabled the Governments of Great Britain and Russia to avoid war, notwithstanding great public excitement, at the time of the Dogger Bank incident, and the new convention agreed upon by the Conference gives practical effect to the experience gained in that inquiry. Substantial progress was also made towards the creation of a permanent judicial tribunal for the determination of international causes. There was very full discussion of the proposal for such a court and a general agreement was finally reached in favor of its creation. The Conference recommended to the signatory Powers the adoption of a draft upon which it agreed for the organization of the court, leaving to be determined only the method by which the judges should be selected. This remaining unsettled question is plainly one which time and good temper will solve. A further agreement of the first importance was that for the creation of an international prize court. The constitution, organization and procedure of such a tribunal were provided for in detail. Anyone who recalls the injustices under which this country suffered as a neutral power during the early part of the last century can not fail to see in this provision for an international prize court the great advance which the world is making towards the substitution of the rule of reason and justice in place of simple force. Not only will the international prize court be the means of protecting the interests of neutrals, but it is in itself a step towards the creation of the more general court for the hearing of international controversies to which reference has just been made. The organization and action of such a prize court can not fail to accustom the different countries to the submission of international questions to the decision of an international tribunal, and we may confidently expect the results of such submission to bring about a general agreement upon the enlargement of the practice. Numerous provisions were adopted for reducing the evil effects of war and for defining the rights and duties of neutrals. The Conference also provided for the holding of a third Conference within a period similar to that which elapsed between the First and Second Conferences. The delegates of the United States worthily represented the spirit of the American people and maintained with fidelity and ability the policy of our Government upon all the great questions discussed in the Conference. The report of the delegation, together with authenticated copies of the conventions signed, when received, will be laid before the Senate for its consideration. When we remember how difficult it is for one of our own legislative bodies, composed of citizens of the same country, speaking the same language, living under the same laws, and having the same customs, to reach an agreement, or even to secure a majority upon any difficult and important subject which is proposed for legislation, it becomes plain that the representatives of forty-five different countries, speaking many different languages, accustomed to different methods of procedure, with widely diverse interests, who discussed so many different subjects and reached agreements upon so many, are entitled to grateful appreciation for the wisdom, patience, and moderation with which they have discharged their duty. The example of this temperate discussion, and the agreements and the efforts to agree, among representatives of all the nations of the earth, acting with universal recognition of the supreme obligation to promote peace, can. not fail to be a powerful influence for good in future international relations. A year ago in consequence of a revolutionary movement in Cuba which threatened the immediate return to chaos of the island, the United States intervened, sending down an army and establishing a provisional government under Governor Magoon. Absolute quiet and prosperity have returned to the island because of this action. We are now taking steps to provide for elections in the island and our expectation is within the coming year to be able to turn the island over again to government chosen by the people thereof. Cuba is at our doors. It is not possible that this Nation should permit Cuba again to sink into the condition from which we rescued it. All that we ask of the Cuban people is that they be prosperous, that they govern themselves so as to bring content, order and progress to their island, the Queen of the Antilles; and our only interference has been and will be to help them achieve these results. An invitation has been extended by Japan to the Government and people of the United States to participate in a great national exposition to be held at Tokyo from April 1 to October 31, 1912, and in which the principal countries of the world are to be invited to take part. This is an occasion of special interest to all the nations of the world, and peculiarly so to us; for it is the first instance in which such a great national exposition has been held by a great power dwelling on the Pacific; and all the nations of Europe and America will, I trust, join in helping to success this first great exposition ever held by a great nation of Asia. The geographical relations of Japan and the United States as the possessors of such large portions of the coasts of the Pacific, the intimate trade relations already existing between the two countries, the warm friendship which has been maintained between them without break since the opening of Japan to intercourse with the western nations, and her increasing wealth and production, which we regard with hearty goodwill and wish to make the occasion of mutually beneficial commerce, all unite in making it eminently desirable that this invitation should be accepted. I heartily recommend such legislation as will provide in generous fashion for the representation of this Government and. its people in the proposed exposition. Action should be taken now. We are apt to underestimate the time necessary for preparation in such cases. The invitation to the French Exposition of 1900 was brought to the attention of the Congress by President Cleveland in December, 1895; and so many are the delays necessary to such proceedings that the period of font years and a half which then intervened before the exposition proved none too long for the proper preparation of the exhibits. The adoption of a new tariff by Germany, accompanied by conventions for reciprocal tariff concessions between that country and most of the other countries of continental Europe, led the German Government to -ire the notice necessary to terminate the reciprocal commercial agreement with this country proclaimed July 13, 1900. The notice was to take effect on the 1st of March, 1906, and in default of some other arrangements this would have left the exports from the United States to Germany subject to the general German tariff duties, from 25 to 50 per cent higher than the conventional duties imposed upon the goods of most of our competitors for German trade. Under a special agreement made between the two Governments in February, 1906, the German Government postponed the operation of their notice until the 30th of June, 1907. In the meantime, deeming it to be my duty to make every possible effort to prevent a tariff war between the United States and Germany arising from misunderstanding by either country of the conditions existing in the other, and acting upon the invitation of the German Government, I sent to Berlin a commission composed of competent experts in the operation and administration of the customs tariff, from the Departments of the Treasury and Commerce and Labor. This commission was engaged for several mouths in conference with a similar commission appointed by the German Government, under instructions, so far as practicable, to reach a common understanding as to all the facts regarding the tariffs of the United States and Germany material and relevant to the trade relations between the two countries. The commission reported, and upon the basis of the report, a further temporary commercial agreement was entered into by the two countries, pursuant to which, in the exercise of the authority conferred upon the President by the third section of the tariff act of July 24, 1897, I extended the reduced tariff rates provided for in that section to champagne and all other sparkling wines, and pursuant to which the German conventional or minimum tariff rates were extended to about 96 1/2 per cent of all the exports from the United States to Germany. This agreement is to remain in force until the 30th of June, 1908, and until six months after notice by either party to terminate it. The agreement and the report of the commission on which it is based will be laid before the Congress for its information. This careful examination into the tariff relations between the United States and Germany involved an inquiry into certain of our methods of administration which had been the because of much complaint on the part of German exporters. In this inquiry I became satisfied that certain vicious and unjustifiable practices had grown up in our customs administration, notably the practice of determining values of imports upon detective reports never disclosed to the persons whose interests were affected. The use of detectives, though often necessary, tends towards abuse, and should be carefully guarded. Under our practice as I found it to exist in this case, the abuse had become gross and discreditable. Under it, instead of seeking information as to the market value of merchandise from the well-known and respected members of the commercial community in the country of its production, secret statements were obtained from informers and discharged employees and business rivals, and upon this kind of secret evidence the values of imported goods were frequently raised and heavy penalties were frequently imposed upon importers who were never permitted to know what the evidence was and who never had an opportunity to meet it. It is quite probable that this system tended towards an increase of the duties collected upon imported goods, but I conceive it to be a violation of law to exact more duties than the law provides, just as it is a violation to admit goods upon the payment of less than the legal rate of duty. This practice was repugnant to the spirit of American law and to American sense of justice. In the judgment of the most competent experts of the Treasury Department and the Department of Commerce and Labor it was wholly unnecessary for the due collection of the customs revenues, and the attempt to defend it merely illustrates the demoralization which naturally follows from a long continued course of reliance upon such methods. I accordingly caused the regulations governing this branch of the customs service to be modified so that values are determined upon a hearing in which all the parties interested have an opportunity to be heard and to know the evidence against them. Moreover our Treasury agents are accredited to the government of the country in which they seek information, and in Germany receive the assistance of the quasi-official chambers of commerce in determining the actual market value of goods, in accordance with what I am advised to be the true construction of the law. These changes of regulations were adapted to the removal of such manifest abuses that I have not felt that they ought to be confined to our relations with Germany; and I have extended their operation to all other countries which have expressed a desire to enter into similar administrative relations. I ask for authority to reform the agreement with China under which the indemnity of 1900 was fixed, by remitting and cancelling the obligation of China for the payment of all that part of the stipulated indemnity which is in excess of the sum of eleven million, six hundred and fifty-five thousand, four hundred and ninety-two dollars and sixty-nine cents, and interest at four per cent. After the rescue of the foreign legations in Peking during the Boxer troubles in 1900 the Powers required from China the payment of equitable indemnities to the several nations, and the final protocol under which the troops were withdrawn, signed at Peking, September 7, 1901, fixed the amount of this indemnity allotted to the United States at over $20,000,000, and China paid, up to and including the 1st day of June last, a little over $6,000,000. It was the first intention of this Government at the proper time, when all claims had been presented and all expenses ascertained as fully as possible, to revise the estimates and account, and as a proof of sincere friendship for China voluntarily to release that country from its legal liability for all payments in excess of the sum which should prove to be necessary for actual indemnity to the United States and its citizens. This Nation should help in every practicable way in the education of the Chinese people, so that the vast and populous Empire of China may gradually adapt itself to modern conditions. One way of doing this is by promoting the coming of Chinese students to this country and making it attractive to them to take courses at our universities and higher educational institutions. Our educators should, so far as possible, take concerted action toward this end. On the courteous invitation of the President of Mexico, the Secretary of State visited that country in September and October and was received everywhere with the greatest kindness and hospitality. He carried from the Government of the United States to our southern neighbor a message of respect and good will and of desire for better acquaintance and increasing friendship. The response from the Government and the people of Mexico was hearty and sincere. No pains were spared to manifest the most friendly attitude and feeling toward the United States. In view of the close neighborhood of the two countries the relations which exist between Mexico and the United States are just because for gratification. We have a common boundary of over 1,500 miles from the Gulf of Mexico to the Pacific. Much of it is marked only by the shifting waters of the Rio Grande. Many thousands of Mexicans are residing upon our side of the line and it is estimated that over 40,000 Americans are resident in Mexican territory and that American investments in Mexico amount to over seven hundred million dollars. The extraordinary industrial and commercial prosperity of Mexico has been greatly promoted by American enterprise, and Americans are sharing largely in its results. The foreign trade of the Republic already exceeds $240,000,000 per annum, and of this two-thirds both of exports and imports are exchanged with the United States. Under these circumstances numerous questions necessarily arise between the two countries. These questions are always approached and disposed of in a spirit of mutual courtesy and fair dealing. Americans carrying on business in Mexico testify uniformly to the kindness and consideration with which they are treated and their sense of the security of their property and enterprises under the wise administration of the great statesman who has so long held the office of Chief Magistrate of that Republic. The two Governments have been uniting their efforts for a considerable time past to aid Central America in attaining the degree of peace and order which have made possible the prosperity of the northern ports of the Continent. After the peace between Guatemala, Honduras, and Salvador, celebrated under the circumstances described in my last Message, a new war broke out between the Republics of Nicaragua, Honduras, and Salvador. The effort to compose this new difficulty has resulted in the acceptance of the joint suggestion of the Presidents of Mexico and of the United States for a general peace conference between all the countries of Central America. On the 17th day of September last a protocol was signed between the representatives of the five Central American countries accredited to this Government agreeing upon a conference to be held in the City of Washington "in order to devise the means of preserving the good relations among said Republics and bringing about permanent peace in those countries." The protocol includes the expression of a wish that the Presidents of the United States and Mexico should appoint "representatives to lend their good and impartial offices in a purely friendly way toward the realization of the objects of the conference." The conference is now in session and will have our best wishes and, where it is practicable, our friendly assistance. One of the results of the Pan American Conference at Rio Janeiro in the summer of 1906 has been a great increase in the activity and usefulness of the International Bureau of American Republics. That institution, which includes all the American Republics in its membership and brings all their representatives together, is doing a really valuable work in informing the people of the United States about the other Republics and in making the United States known to them. Its action is now limited by appropriations determined when it was doing a work on a much smaller scale and rendering much less valuable service. I recommend that the contribution of this Government to the expenses of the Bureau be made commensurate with its increased work.
no nation has greater resources than ours and i think it can be truthfully said that the citizens of no nation possess greater energy and industrial ability in no nation are the fundamental business conditions sounder than in ours at this very moment and it is foolish when such is the case for people to hoard money instead of keeping it in sound banks for it is such hoarding that is the immediate occasion of money stringency moreover as a rule the business of our people is conducted with honesty and probity and this applies alike to farms and factories to railroads and banks to all our legitimate commercial enterprises in any large body of men however there are certain to be some who are dishonest and if the conditions are such that these men prosper or commit their misdeeds with impunity their example is a very evil thing for the community where these men are business men of great sagacity and of temperament both unscrupulous and reckless and where the conditions are such that they act without supervision or control and at first without effective check from public opinion they delude many innocent people into making investments or embarking in kinds of business that are really unsound when the misdeeds of these successfully dishonest men are discovered suffering comes not only upon them but upon the innocent men whom they have misled it is a painful awakening whenever it occurs and naturally when it does occur those who suffer are apt to forget that the longer it was deferred the more painful it would be in the effort to punish the guilty it is both wise and proper to endeavor so far as possible to minimize the distress of those who have been misled by the guilty yet it is not possible to refrain because of such distress from striving to put an end to the misdeeds that are the ultimate causes of the suffering and as a means to this end where possible to punish those responsible for them there may be honest differences of opinion as to many governmental policies but surely there can be no such differences as to the need of unflinching perseverance in the war against successful dishonesty in my message to the congress on december 5 1905 i said if the folly of man mars the general then those who are innocent of the folly will have to pay part of the penalty incurred by those who are guilty of the folly a panic brought on by the speculative folly of part of the business community would hurt the whole business community but such stoppage of welfare though it might be severe would not be lasting in the long run the one vital factor in the permanent prosperity of the country is the high individual character of the average american worker the average american citizen no matter whether his work be mental or manual whether he be farmer or business man or professional man in our industrial and social system the interests of all men are so closely intertwined that in the immense majority of cases a man who by his efficiency by his ingenuity and industry benefits himself must also benefit others normally the man of great productive capacity who becomes rich by guiding the labor of many other men does so by enabling them to produce more than they could produce without his guidance and both he and they share in the benefit which comes also to the public at large the superficial fact that the sharing may be unequal must never blind us to the underlying fact that there is this sharing and that the benefit comes in some degree to each man concerned normally the wageworker the man of small means and the average consumer as well as the average producer are all alike helped by making conditions such that the man of exceptional business ability receives an exceptional reward for his ability something can be done by legislation to help the general prosperity but no such help of a permanently beneficial character can be given to the less able and less fortunate save as the results of a policy which shall inure to the advantage of all industrious and efficient people who act decently and this is only another way of saying that any benefit which comes to the less able and less fortunate must of necessity come even more to the more able and more fortunate if therefore the less fortunate man is moved by envy of his more fortunate brother to strike at the conditions under which they have both though unequally prospered the result will assuredly be that while damage may come to the one struck at it will visit with an even heavier load the one who strikes the blow taken as a whole we must all go up or go down together yet while not merely admitting but insisting upon this it is also true that where there is no governmental restraint or supervision some of the exceptional men use their energies not in ways that are for the common good but in ways which tell against this common good the fortunes amassed through corporate organization are now so large and vest such power in those that wield them as to make it a matter of necessity to give to the sovereign that is to the government which represents the people as a whole some effective power of supervision over their corporate use in order to insure a healthy social and industrial life every big corporation should be held responsible by and be accountable to some sovereign strong enough to control its conduct i am in no sense hostile to corporations this is an age of combination and any effort to prevent all combination will be not only useless but in the end vicious because of the contempt for law which the failure to enforce law inevitably produces we should moreover recognize in cordial and ample fashion the immense good effected by corporate agencies in a country such as ours and the wealth of intellect energy and fidelity devoted to their service and therefore normally to the service of the public by their officers and directors the corporation has come to stay just as the trade union has come to stay each can do and has done great good each should be favored so long as it does good but each should be sharply checked where it acts against law and justice the makers of our national constitution provided especially that the regulation of interstate commerce should come within the sphere of the general government the arguments in favor of their taking this stand were even then overwhelming but they are far stronger in view of the enormous development of great business agencies usually corporate in form experience has shown conclusively that it is useless to try to get any adequate regulation and supervision of these great corporations by state action such regulation and supervision can only be effectively exercised by a sovereign whose jurisdiction is coextensive with the field of work of the corporations that is by the national government i believe that this regulation and supervision can be obtained by the enactment of law by the congress our steady aim should be by legislation cautiously and carefully undertaken but resolutely persevered in to assert the sovereignty of the national government by affirmative action this is only in form an innovation in substance it is merely a restoration for from the earliest time such regulation of industrial activities has been recognized in the action of the lawmaking bodies and all that i propose is to meet the changed conditions in such manner as will prevent the commonwealth abdicating the power it has always possessed not only in this country but also in england before and since this country became a separate nation it has been a misfortune that the national laws on this subject have hitherto been of a negative or prohibitive rather than an affirmative kind and still more that they have in part sought to prohibit what could not be effectively prohibited and have in part in their prohibitions confounded what should be allowed and what should not be allowed it is generally useless to try to prohibit all restraint on competition whether this restraint be reasonable or unreasonable and where it is not useless it is generally hurtful the successful prosecution of one device to evade the law immediately develops another device to accomplish the same purpose what is needed is not sweeping prohibition of every arrangement good or bad which may tend to restrict competition but such adequate supervision and regulation as will prevent any restriction of competition from being to the detriment of the public as well as such supervision and regulation as will prevent other abuses in no way connected with restriction of competition i have called your attention in these quotations to what i have already said because i am satisfied that it is the duty of the national government to embody in action the principles thus expressed no small part of the trouble that we have comes from carrying to an extreme the national virtue of of independence in initiative and action it is wise to conserve this virtue and to provide for its fullest exercise compatible with seeing that liberty does not become a liberty to wrong others unfortunately this is the kind of liberty that the lack of all effective regulation inevitably breeds founders of the constitution provided that the national government should have complete and sole control of interstate commerce there was then practically no interstate business save such as was conducted by water and this the national government at once proceeded to regulate in thoroughgoing and effective fashion conditions have now so wholly changed that the interstate commerce by water is insignificant compared with the amount that goes by land and almost all big business concerns are now engaged in interstate commerce as a result it can be but partially and imperfectly controlled or regulated by the action of any one of the several states such action inevitably tending to be either too drastic or else too lax and in either case ineffective for purposes of justice only the national government can in thoroughgoing fashion exercise the needed control this does not mean that there should be any extension of federal authority for such authority already exists under the constitution in amplest and most form but it does mean that there should be an extension of federal activity this is not advocating centralization it is merely looking facts in the face and realizing that centralization in business has already come and can not be avoided or undone and that the public at large can only protect itself from certain evil effects of this business centralization by providing better methods for the exercise of control through the authority already centralized in the national government by the constitution itself there must be no ball in the healthy constructive course of action which this nation has elected to pursue and has steadily pursued during the last six years as shown both in the legislation of the congress and the administration of the law by the department of justice the most vital need is in connection with the railroads as to these in my judgment there should now be either a national incorporation act or a law licensing railway companies to engage in interstate commerce upon certain conditions the law should be so framed as to give to the interstate commerce commission power to pass upon the future issue of securities while ample means should be provided to enable the commission whenever in its judgment it is necessary to make a physical valuation of any railroad as i stated in my message to the congress a year ago railroads should be given power to enter into agreements subject to these argreements being made public in minute detail and to the consent of the interstate commerce commission being first obtained until the national government assumes proper control of interstate commerce in the exercise of the authority it already possesses it will be impossible either to give to or to get from the railroads full justice the railroads and all other great corporations will do well to recognize that this control must come the only question is as to what governmental body can most wisely exercise it the courts will determine the limits within which the federal authority can exercise it and there will still remain ample work within each state for the railway commission of that state and the national interstate commerce commission will work in harmony with the several state commissions each within its own province to achieve the desired end moreover in my judgment there should be additional legislation looking to the proper control of the great business concerns engaged in interstate business this control to be exercised for their own benefit and prosperity no less than for the protection of investors and of the general public as i have repeatedly said in messages to the congress and elsewhere experience has definitely shown not merely the unwisdom but the futility of endeavoring to put a stop to all business combinations modern industrial conditions are such that combination is not only necessary but inevitable it is so in the world of business just as it is so in the world of labor and it is as idle to desire to put an end to all corporations to all big combinations of capital as to desire to put an end to combinations of labor corporation and labor union alike have come to stay each if properly managed is a source of good and not evil whenever in either there is evil it should be promptly held to account but it should receive hearty encouragement so long as it is properly managed it is profoundly immoral to put or keep on the statute books a law nominally in the interest of public morality that really puts a premium upon public immorality by undertaking to forbid honest men from doing what must be done under modern business conditions so that the law itself provides that its own infraction must be the condition precedent upon business success to aim at the accomplishment of too much usually means the accomplishment of too little and often the doing of positive damage in my message to the congress a year ago in speaking of the antitrust laws i said the actual working of our laws has shown that the effort to prohibit all combination good or bad is noxious where it is not ineffective combination of capital like combination of labor is a necessary element in our present industrial system it is not possible completely to prevent it and if it were possible such complete prevention would do damage to the body politic what we need is not vainly to try to prevent all combination but to secure such rigorous and adequate control and supervision of the combinations as to prevent their injuring the public or existing in such forms as inevitably to threaten injury it is unfortunate that our present laws should forbid all combinations instead of sharply discriminating between those combinations which do evil often railroads would like to combine for the purpose of preventing a big shipper from maintaining improper advantages at the expense of small shippers and of the general public such a combination instead of being forbidden by law should be favored it is a public evil to have on the statute books a law incapable of full enforcement because both judges and juries realize that its full enforcement would destroy the business of the country for the result is to make decent men violators of the law against their will and to put a premium on the behavior of the willful wrongdoers such a result in turn tends to throw the decent man and the willful wrongdoer into close association and in the end to drag clown the former to the latter level for the man who becomes a lawbreaker in one way unhappily tends to lose all respect for law and to be willing to break it in many ways no more scathing condemnation could be visited upon a law than is contained in the words of the interstate commerce commission when in commenting upon the fact that the numerous joint traffic associations do technically violate the law they say decision of the united states supreme court in the case and the joint traffic association case has produced no practical effect upon the railway operations of the country such associations in fact exist now as they did before these decisions and with the same general effect in justice to all parties we ought probably to add that it is difficult to see how our interstate railways could be operated with due regard to the interest of the shipper and the railway without concerted action of the kind afforded through these asociations this means that the law as construed by the supreme court is such that the business of the country can not be conducted without breaking it as i have elsewhere said this is substantially what i have said over and over again surely it ought not to be necessary to say that it in no shape or way represents any hostility to corporations as such on the contrary it means a frank recognition of the fact that combinations of capital like combinations of labor are a natural result of modern conditions and of our national development as far as in my ability lies my endeavor is and will be to prevent abuse of power by either and to favor both so long as they do well the aim of the national government is quite as much to favor and protect honest corporations honest business men of wealth as to bring to justice those individuals and corporations representing dishonest methods most certainly there will be no relaxation by the government authorities in the effort to get at any great railroad wrecker any man who by clever swindling devices robs investors oppresses and does injustice to the general public but any such move as this is in the interest of honest railway operators of honest corporations and of those who when they invest their small savings in stocks and bonds wish to be assured that these will represent money honestly expended for legitimate business purposes to confer upon the national government the power for which i ask would be a check upon overcapitalization and upon the clever gamblers who benefit by overcapitalization but it alone would mean an increase in the value an increase in the safety of the stocks and bonds of honestly managed railroads and would render it far easier to market their securities i believe in proper publicity there has been complaint of some of the investigations recently carried on but those who complain should put the blame where it belongs upon the misdeeds which are done in darkness and not upon the investigations which brought them to light the administration is responsible for turning on the light but it is not responsible for what the light showed i ask for full power to be given the federal government because no single state can by legislation effectually cope with these powerful corporations engaged in interstate commerce and while doing them full justice exact from them in return full justice to others the conditions of railroad activity the conditions of our immense interstate commerce are such as to make the central government alone competent to exercise full supervision and control the grave abuses in individual cases of railroad management in the past represent wrongs not merely to the general public but above all wrongs to and honest corporations and men of wealth because they excite a popular anger and distrust which from the very nature of the case tends to include in the sweep of its resentment good and bad alike from the standpoint of the public i can not too earnestly say that as soon as the natural and proper resentment aroused by these abuses becomes indiscriminate and unthinking it also becomes not merely unwise and unfair but calculated to defeat the very ends which those feeling it have in view there has been plenty of dishonest work by corporations in the past there will not be the slightest in the effort to hunt down and punish every dishonest man but the bulk of our business is honestly done in the natural indignation the people feel over the dishonesty it is essential that they should not lose their heads and get drawn into an indiscriminate raid upon all corporations all people of wealth whether they do well or out of any such wild movement good will not come can not come and never has come on the contrary the surest way to invite reaction is to follow the lead of either demagogue or visionary in a sweeping assault upon property values and upon public confidence which would work incalculable damage in the business world and would produce such distrust of the agitators that in the revulsion the distrust would extend to honest men who in sincere and same fashion are trying to remedy the evils the antitrust law should not be repealed but it should be made both more efficient and more in harmony with actual conditions it should be so amended as to forbid only the kind of combination which does harm to the general public such amendment to be accompanied by or to be an incident of a grant of supervisory power to the government over these big concerns engaged in interstate business this should be accompanied by provision for the compulsory publication of accounts and the subjection of books and papers to the inspection of the government officials a beginning has already been made for such supervision by the establishment of the bureau of corporations the antitrust law should not prohibit combinations that do no injustice to the public still less those the existence of which is on the whole of benefit to the public but even if this feature of the law were abolished there would remain as an equally objectionable feature the difficulty and delay now incident to its enforcement the government must now submit to irksome and repeated delay before obtaining a final decision of the courts upon proceedings instituted and even a favorable decree may mean an empty victory moreover to attempt to control these corporations by lawsuits means to impose upon both the department of justice and the courts an impossible burden it is not feasible to carry on more than a limited number of such suits such a law to be really effective must of course be administered by an executive body and not merely by means of lawsuits the design should be to prevent the abuses incident to the creation of unhealthy and improper combinations instead of waiting until they are in existence and then attempting to destroy them by civil or criminal proceedings a combination should not be tolerated if it abuse the power acquired by combination to the public detriment no corporation or association of any kind should be permitted to engage in foreign or interstate commerce that is formed for the purpose of or whose operations create a monopoly or general control of the production sale or distribution of any one or more of the prime necessities of life or articles of general use and necessity such combinations are against public policy they violate the common law the doors of the courts are closed to those who are parties to them and i believe the congress can close the channels of interstate commerce against them for its protection the law should make its prohibitions and permissions as clear and definite as possible leaving the least possible room for arbitrary action or allegation of such action on the part of the executive or of divergent interpretations by the courts among the points to be aimed at should be the prohibition of unhealthy competition such as by rendering service at an actual loss for the purpose of crushing out competition the prevention of inflation of capital and the prohibition of a corporation making exclusive trade with itself a condition of having any trade with itself reasonable agreements between or combinations of corporations should be permitted provided they are submitted to and approved by some appropriate government body the congress has the power to charter corporations to engage in interstate and foreign commerce and a general law can be enacted under the provisions of which existing corporations could take out federal charters and new federal corporations could be created an essential provision of such a law should be a method of predetermining by some federal board or commission whether the applicant for a federal charter was an association or combination within the restrictions of the federal law provision should also be made for complete publicity in all matters affecting the public and complete protection to the investing public and the shareholders in the matter of issuing corporate securities if an incorporation law is not deemed advisable a license act for big interstate corporations might be enacted or a combination of the two might be tried the supervision established might be analogous to that now exercised over national banks at least the antitrust act should be supplemented by specific prohibitions of the methods which experience has shown have been of most service in enabling monopolistic combinations to crush out competition the real owners of a corporation should be compelled to do business in their own name the right to hold stock in other corporations should hereafter be denied to interstate corporations unless on approval by the government officials and a prerequisite to such approval should be the listing with the government of all owners and stockholders both by the corporation owning such stock and by the corporation in which such stock is owned to confer upon the national government in connection with the amendment i advocate in the antitrust law power of supervision over big business concerns engaged in interstate commerce would benefit them as it has benefited the national banks in the recent business crisis it is noteworthy that the institutions which failed were institutions which were not under the supervision and control of the national government those which were under national control stood the test national control of the kind above advocated would be to the benefit of every railway from the standpoint of the public there is need for additional tracks additional terminals and improvements in the actual handling of the railroads and all this as rapidly as possible ample safe and speedy transportation facilities are even more necessary than cheap transportation therefore there is need for the investment of money which will provide for all these things while at the same time securing as far as is possible better wages and shorter hours for their employees therefore while there must be just and reasonable regulation of rates we should be the first to protest against any arbitrary and unthinking movement to cut them down without the fullest and most careful consideration of all interests concerned and of the actual needs of the situation only a special body of men acting for the national government under authority conferred upon it by the congress is competent to pass judgment on such a matter those who fear from any reason the extension of federal activity will do well to study the history not only of the national banking act but of the law and notably the meat inspection law recently enacted the law was opposed so violently that its passage was delayed for a decade yet it has worked unmixed and immediate good the meat inspection law was even more violently assailed and the same men who now denounce the attitude of the national government in seeking to oversee and control the workings of interstate common carriers and business concerns then asserted that we were discrediting and ruining a great american industry two years have not elapsed and already it has become evident that the great benefit the law confers upon the public is accompanied by an equal benefit to the reputable packing establishments the latter are better off under the law than they were without it the benefit to interstate common carriers and business concerns from the legislation i advocate would be equally marked incidentally in the passage of the law the action of the various state food and dairy commissioners showed in striking fashion how much good for the whole people results from the hearty cooperation of the federal and state officials in securing a given reform it is primarily to the action of these state commissioners that we owe the enactment of this law for they aroused the people first to demand the enactment and enforcement of state laws on the subject and then the enactment of the federal law without which the state laws were largely ineffective there must be the closest cooperation between the national and state governments in administering these laws in my message to the congress a year ago i spoke as follows of the currency i especially call your attention to the condition of our currency laws the act has ably served a great purpose in aiding the enormous business development of the country and within ten years there has been an increase in circulation per capita from to for several years evidence has been accumulating that additional legislation is needed the recurrence of each crop season emphasizes the defects of the present laws there must soon be a revision of them because to leave them as they are means to incur liability of business disaster since your body adjourned there has been a fluctuation in the interest on call money from 2 per cent to 30 percent and the fluctuation was even greater during the preceding six months the secretary of the treasury had to step in and by wise action put a stop to the most violent period of oscillation even worse than such fluctuation is the advance in commercial rates and the uncertainty felt in the sufficiency of credit even at high rates all commercial interests suffer during each crop period excessive rates for call money in new york attract money from the interior banks into the speculative field this depletes the fund that would otherwise be available for commercial uses and commercial borrowers are forced to pay abnormal rates so that each fall a tax in the shape of increased interest charges is placed on the whole commerce of the country the mere statement of these facts shows that our present system is seriously defective there is need of a change unfortunately however many of the proposed changes must be ruled from consideration because they are complicated are not easy of comprehension and tend to disturb existing rights and interests we must also rule out any plan which would materially impair the value of the united states 2 per cent bonds now pledged to secure circulation the issue of which was made under conditions peculiarly creditable to the treasury i do not press any especial plan various plans have recently been proposed by expert committees of bankers among the plans which are possibly feasible and which certainly should receive your consideration is that repeatedly brought to your attention by the present secretary of the treasury the essential features of which have been approved by many prominent bankers and business men according to this plan national banks should be permitted to issue a specified proportion of their capital in notes of a given kind the issue to be taxed at so high a rate as to drive the notes back when not wanted in legitimate trade this plan would not permit the issue of currency to give banks additional profits but to meet the emergency presented by times of stringency i do not say that this is the right system i only advance it to emphasize my belief that there is need for the adoption of some system which shall be automatic and open to all sound banks so as to avoid all possibility of discrimination and favoritism such a plan would tend to prevent the spasms of high money and speculation which now obtain in the new york market for at present there is too much currency at certain seasons of the year and its accumulation at new york tempts bankers to lend it at low rates for speculative purposes whereas at other times when the crops are being moved there is urgent need for a large but temporary increase in the currency supply it must never be forgotten that this question concerns business men generally quite as much as bankers especially is this true of stockmen farmers and business men in the west for at present at certain seasons of the year the difference in interest rates between the east and the west is from 6 to 10 per cent whereas in canada the corresponding difference is but 2 per cent any plan must of course guard the interests of western and southern bankers as carefully as it guards the interests of new york or chicago bankers and must be drawn from the standpoints of the farmer and the merchant no less than from the standpoints of the city banker and the country banker i again urge on the congress the need of immediate attention to this matter we need a greater elasticity in our currency provided of course that we recognize the even greater need of a safe and secure currency there must always be the most rigid examination by the national authorities provision should be made for an emergency currency the emergency issue should of course be made with an effective guaranty and upon conditions carefully prescribed by the government such emergency issue must be based on adequate securities approved by the government and must be issued under a heavy tax this would permit currency being issued when the demand for it was urgent while securing its requirement as the demand fell off it is worth investigating to determine whether officers and directors of national banks should ever be allowed to loan to themselves trust companies should be subject to the same supervision as banks legislation to this effect should be enacted for the district of columbia and the territories yet we must also remember that even the wisest legislation on the subject can only accomplish a certain amount no legislation can by any possibility guarantee the business community against the results of speculative folly any more than it can guarantee an individual against the results of his extravagance when an individual mortgages his house to buy an automobile he invites disaster and when wealthy men or men who pose as such or are unscrupulously or foolishly eager to become such indulge in reckless speculation especially if it is accompanied by dishonesty they jeopardize not only their own future but the future of all their innocent for the expose the whole business community to panic and distress the income account of the nation is in a most satisfactory condition for the six fiscal years ending with the 1st of july last the total expenditures and revenues of the national government exclusive of the postal revenues and expenditures were in round numbers revenues and expenditures the net excess of income over expenditures including in the latter the fifty millions expended for the panama canal was one hundred and ninety million dollars for the six years an average of about millions a year this represents an approximation between income and outgo which it would be hard to improve the satisfactory working of the present tariff law has been chiefly responsible for this excellent showing nevertheless there is an evident and constantly growing feeling among our people that the time is rapidly approaching when our system of revenue legislation must be revised this country is definitely committed to the protective system and any effort to uproot it could not but because widespread industrial disaster in other words the principle of the present tariff law could not with wisdom be changed but in a country of such phenomenal growth as ours it is probably well that every dozen years or so the tariff laws should be carefully scrutinized so as to see that no excessive or improper benefits are conferred thereby that proper revenue is provided and that our foreign trade is encouraged there must always be as a minimum a tariff which will not only allow for the collection of an ample revenue but which will at least make good the difference in cost of production here and abroad that is the difference in the labor cost here and abroad for the of the must ever be a cardinal point of american policy the question should be approached purely from a business standpoint both the time and the manner of the change being such as to arouse the minimum of agitation and disturbance in the business world and to give the least play for selfish and factional motives the sole consideration should be to see that the sum total of changes represents the public good this means that the subject can not with wisdom be dealt with in the year preceding a presidential election because as a matter of fact experience has conclusively shown that at such a time it is impossible to get men to treat it from the standpoint of the public good in my judgment the wise time to deal with the matter is immediately after such election when our tax laws are revised the question of an income tax and an inheritance tax should receive the careful attention of our legislators in my judgment both of these taxes should be part of our system of federal taxation i speak diffidently about the income tax because one scheme for an income tax was declared unconstitutional by the supreme court while in addition it is a difficult tax to administer in its practical working and great care would have to be exercised to see that it was not evaded by the very men whom it was most desirable to have taxed for if so evaded it would of course be worse than no tax at all as the least desirable of all taxes is the tax which bears heavily upon the honest as compared with the dishonest man nevertheless a graduated income tax of the proper type would be a desirable feature of federal taxation and it is to be hoped that one may be devised which the supreme court will declare constitutional the inheritance tax however is both a far better method of taxation and far more important for the purpose of having the fortunes of the country bear in proportion to their increase in size a corresponding increase and burden of taxation the government has the absolute right to decide as to the terms upon which a man shall receive a bequest or devise from another and this point in the devolution of property is especially appropriate for the imposition of a tax laws imposing such taxes have repeatedly been placed upon the national statute books and as repeatedly declared constitutional by the courts and these laws contained the progressive principle that is after a certain amount is reached the bequest or gift in life or death is increasingly burdened and the rate of taxation is increased in proportion to the remoteness of blood of the man receiving the bequest these principles are recognized already in the leading civilized nations of the world in great britain all the estates worth or less are practically exempt from death duties while the increase is such that when an estate exceeds five millions of dollars in value and passes to a distant kinsman or stranger in blood the government receives all told an amount equivalent to nearly a fifth of the whole estate in france so much of an inheritance as exceeds pays over a fifth to the state if it passes to a distant relative the german law is especially interesting to us because it makes the inheritance tax an imperial measure while allotting to the individual states of the empire a portion of the proceeds and permitting them to impose taxes in addition to those imposed by the imperial government small inheritances are exempt but the tax is so sharply progressive that when the inheritance is still not very large provided it is not an agricultural or a forest land it is taxed at the rate of 25 per cent if it goes to distant relatives there is no reason why in the united states the national government should not impose inheritance taxes in addition to those imposed by the states and when we last had an inheritance tax about of the states levied such taxes concurrently with the national government making a combined maximum rate in some cases as high as 25 per cent the french law has one feature which is to be heartily commended the progressive principle is so applied that each higher rate is imposed only on the excess above the amount subject to the next lower rate so that each increase of rate will apply only to a certain amount above a certain maximum the tax should if possible be made to bear more heavily upon those residing without the country than within it a heavy progressive tax upon a very large fortune is in no way such a tax upon thrift or industry as a like would be on a small fortune no advantage comes either to the country as a whole or to the individuals inheriting the money by permitting the transmission in their entirety of the enormous fortunes which would be affected by such a tax and as an incident to its function of revenue raising such a tax would help to preserve a measurable equality of opportunity for the people of the generations growing to manhood we have not the slightest sympathy with that socialistic idea which would try to put laziness thriftlessness and inefficiency on a par with industry thrift and efficiency which would strive to break up not merely private property but what is far more important the home the chief prop upon which our whole civilization stands such a theory if ever adopted would mean the ruin of the entire country a ruin which would bear heaviest upon the weakest upon those least able to shift for themselves but proposals for legislation such as this herein advocated are directly opposed to this class of socialistic theories our aim is to recognize what lincoln pointed out the fact that there are some respects in which men are obviously not equal but also to insist that there should be an equality of and of mutual respect an equality of rights before the law and at least an approximate equality in the conditions under which each man obtains the chance to show the stuff that is in him when compared to his fellows a few years ago there was loud complaint that the law could not be invoked against wealthy offenders there is no such complaint now the course of the department of justice during the last few years has been such as to make it evident that no man stands above the law that no corporation is so wealthy that it can not be held to account the department of justice has been as prompt to proceed against the wealthiest malefactor whose crime was one of greed and cunning as to proceed against the agitator who incites to brutal violence everything that can be done under the existing law and with the existing state of public opinion which so profoundly influences both the courts and juries has been done but the laws themselves need strengthening in more than one important point they should be made more definite so that no honest man can be led unwittingly to break them and so that the real wrongdoer can be readily punished moreover there must be the public opinion back of the laws or the laws themselves will be of no avail at present while the average juryman undoubtedly wishes to see trusts broken up and is quite ready to fine the corporation itself he is very reluctant to find the facts proven beyond a reasonable doubt when it comes to sending to jail a member of the business community for indulging in practices which are profoundly unhealthy but which unfortunately the business community has grown to recognize as normal both the present condition of the law and the present temper of juries render it a task of extreme difficulty to get at the real wrongdoer in any such case especially by imprisonment yet it is from every standpoint far preferable to punish the prime offender by imprisonment rather than to fine the corporation with the attendant damage to stockholders the two great evils in the execution of our criminal laws are sentimentality and technicality for the latter the remedy must come from the hands of the legislatures the courts and the lawyers the other must depend for its cure upon the gradual growth of a sound public opinion which shall insist that regard for the law and the demands of reason shall control all other influences and emotions in the jury box both of these evils must be removed or public discontent with the criminal law will continue instances of abuse in the granting of injunctions in labor disputes continue to occur and the resentment in the minds of those who feel that their rights are being invaded and their liberty of action and of speech unwarrantably restrained continues likewise to grow much of the attack on the use of the process of injunction is wholly without warrant but i am constrained to express the belief that for some of it there is warrant this question is becoming more and more one of prime importance and unless the courts will themselves deal with it in effective manner it is certain ultimately to demand some form of legislative action it would be most unfortunate for our social welfare if we should permit many honest and citizens to feel that they had just because for regarding our courts with hostility i earnestly commend to the attention of the congress this matter so that some way may be devised which will limit the abuse of injunctions and protect those rights which from time to time it unwarrantably invades moreover discontent is often expressed with the use of the process of injunction by the courts not only in labor disputes but where state laws are concerned i refrain from discussion of this question as i am informed that it will soon receive the consideration of the supreme court the federal courts must of course decide ultimately what are the respective spheres of state and nation in connection with any law state or national and they must decide definitely and finally in matters affecting individual citizens not only as to the rights and wrongs of labor but as to the rights and wrongs of capital and the national government must always see that the decision of the court is put into effect the process of injunction is an essential adjunct of the court doing its work well and as preventive measures are always better than remedial the wise use of this process is from every standpoint commendable but where it is recklessly or unnecessarily used the abuse should he censured above all by the very men who are properly anxious to prevent any effort to shear the courts of this necessary power the court decision must be final the protest is only against the conduct of individual judges in needlessly anticipating such final decision or in the tyrannical use of what is nominally a temporary injunction to accomplish what is in fact a permanent decision the loss of life and limb from railroad accidents in this country has become appalling it is a subject of which the national government should take supervision it might be well to begin by providing for a federal inspection of interstate railroads somewhat along the lines of federal inspection of steamboats although not going so far perhaps at first all that it would be necessary to have would be some officer whose duty would be to investigate all accidents on interstate railroads and report in detail the causes thereof such an officer should make it his business to get into close touch with railroad operating men so as to become thoroughly familiar with every side of the question the idea being to work along the lines of the present steamboat inspection law the national government should be a model employer it should demand the highest quality of service from each of its employees and it should care for all of them properly in return congress should adopt legislation providing limited but definite compensation for accidents to all workmen within the scope of the federal power including employees of navy yards and arsenals in other words a model employers liability act and thoroughgoing should be enacted which should apply to all positions public and private over which the national government has jurisdiction the number of accidents to including those that are preventable and those that are not has become appalling in the mechanical manufacturing and transportation operations of the day it works grim hardship to the ordinary and his family to have the effect of such an accident fall solely upon him and on the other hand there are whole classes of attorneys who exist only by inciting men who may or may not have been wronged to undertake suits for negligence as a matter of fact a suit for negligence is generally an inadequate remedy for the person injured while it often causes altogether disproportionate annoyance to the employer the law should be made such that the payment for accidents by the employer would be automatic instead of being a matter for lawsuits workmen should receive certain and definite compensation for all accidents in industry irrespective of negligence the employer is the agent of the public and on his own responsibility and for his own profit he serves the public when he starts in motion agencies which create risks for others he should take all the ordinary and extraordinary risks involved and the risk he thus at the moment assumes will ultimately be assumed as it ought to be by the general public only in this way can the shock of the accident be diffused instead of falling upon the man or woman least able to bear it as is now the case the community at large should share the burdens as well as the benefits of industry by the proposed law employers would gain a desirable certainty of obligation and get rid of litigation to determine it while the workman and his family would be relieved from a crushing load with such a policy would come increased care and accidents would be reduced in number the national laws providing for employers liability on railroads engaged in interstate commerce and for safety appliances as well as for diminishing the hours any employee of a railroad should be permitted to work should all be strengthened wherever in actual practice they have shown weakness they should be kept on the statute books in thoroughgoing form the constitutionality of the employers liability act passed by the preceding congress has been carried before the courts in two jurisdictions the law has been declared unconstitutional and in three jurisdictions its constitutionality has been affirmed the question has been carried to the supreme court the case has been heard by that tribunal and a decision is expected at an early date in the event that the court should affirm the constitutionality of the act i urge further legislation along the lines advocated in my message to the preceding congress the practice of putting the entire burden of loss to life or limb upon the victim or the victim family is a form of social injustice in which the united states stands in unenviable prominence in both our federal and state legislation we have with few exceptions scarcely gone farther than the repeal of the principle of the old law of liability and in some of our states even this slight modification of a completely outgrown principle has not yet been secured the legislation of the rest of the industrial world stands out in striking contrast to our backwardness in this respect since 1895 practically every country of europe together with great britain new zealand australia british columbia and the cape of good hope has enacted legislation embodying in one form or another the complete recognition of the principle which places upon the employer the entire trade risk in the various lines of industry i urge upon the congress the enactment of a law which will at the same time bring federal legislation up to the standard already established by all the european countries and which will serve as a stimulus to the various states to perfect their legislation in this regard the congress should consider the extension of the law the constitutionality of the present law has recently been called into question and the supreme court has decided that the existing legislation is unquestionably within the powers of the congress the principle of the day should as rapidly and as far as practicable be extended to the entire work carried on by the government and the present law should be amended to embrace contracts on those public works which the present wording of the act has been construed to exclude the general introduction of the day should be the goal toward which we should steadily tend and the government should set the example in this respect strikes and lockouts with their attendant loss and suffering continue to increase for the five years ending december 31 1905 the number of strikes was greater than those in any previous ten years and was double the number in the preceding five years these figures indicate the increasing need of providing some machinery to deal with this class of disturbance in the interest alike of the employer the employee and the general public i renew my previous recommendation that the congress favorably consider the matter of creating the machinery for compulsory investigation of such industrial controversies as are of sufficient magnitude and of sufficient concern to the people of the country as a whole to warrant the federal government in taking action the need for some provision for such investigation was forcibly illustrated during the past summer a strike of telegraph operators seriously interfered with telegraphic communication causing great damage to business interests and serious inconvenience to the general public appeals were made to me from many parts of the country from city councils from boards of trade from chambers of commerce and from labor organizations urging that steps be taken to terminate the strike everything that could with any propriety be done by a representative of the government was done without avail and for weeks the public stood by and suffered without recourse of any kind had the machinery existed and had there been authority for compulsory investigation of the dispute the public would have been placed in possession of the merits of the controversy and public opinion would probably have brought about a prompt adjustment each successive step creating machinery for the adjustment of labor difficulties must be taken with caution but we should endeavor to make progress in this direction the provisions of the act of 1898 creating the chairman of the interstate commerce commission and the commissioner of labor a board of mediation in controversies between interstate railroads and their employees has for the first time been subjected to serious tests within the past year and the wisdom of the experiment has been fully demonstrated the creation of a board for compulsory investigation in cases where mediation fails and arbitration is rejected is the next logical step in a progressive program it is certain that for some time to come there will be a constant increase absolutely and perhaps relatively of those among our citizens who dwell in cities or towns of some size and who work for wages this means that there will be an need to consider the problems inseparable from a great industrial civilization where an immense and complex business especially in those branches relating to manufacture and transportation is transacted by a large number of capitalists who employ a very much larger number of the former tend more and more to combine into corporations and the latter into unions the relations of the capitalist and to one another and of each to the general public are not always easy to adjust and to put them and keep them on a satisfactory basis is one of the most important and one of the most delicate tasks before our whole civilization much of the work for the accomplishment of this end must be done by the individuals concerned themselves whether singly or in combination and the one fundamental fact that must never be lost track of is that the character of the average man whether he be a man of means or a man who works with his hands is the most important factor in solving the problem aright but it is almost equally important to remember that without good laws it is also impossible to reach the proper solution it is idle to hold that without good laws evils such as child labor as the of women as the failure to protect employees from loss of life or limb can be effectively reached any more than the evils of rebates and can be reached without good laws to fail to stop these practices by legislation means to force honest men into them because otherwise the dishonest who surely will take advantage of them will have everything their own way if the states will correct these evils well and good but the nation must stand ready to aid them no question growing out of our rapid and complex industrial development is more important than that of the employment of women and children the presence of women in industry reacts with extreme directness upon the character of the home and upon family life and the conditions surrounding the employment of children bear a vital relation to our future citizenship our legislation in those areas under the control of the congress is very much behind the legislation of our more progressive states a thorough and comprehensive measure should be adopted at this session of the congress relating to the employment of women and children in the district of columbia and the territories the investigation into the condition of women and children recently authorized and directed by the congress is now being carried on in the various states and i recommend that the appropriation made last year for beginning this work be renewed in order that we may have the thorough and comprehensive investigation which the subject demands the national government has as an ultimate resort for control of child labor the use of the interstate commerce clause to prevent the products of child labor from entering into interstate commerce but before using this it ought certainly to enact model laws on the subject for the territories under its own immediate control there is one fundamental proposition which can be laid down as regards all these matters namely while honesty by itself will not solve the problem yet the insistence upon honesty not merely technical honesty but honesty in purpose and spirit is an essential element in arriving at a right conclusion vice in its cruder and more archaic forms shocks everybody but there is very urgent need that public opinion should be just as severe in condemnation of the vice which hides itself behind class or professional loyalty or which denies that it is vice if it can escape conviction in the courts the public and the representatives of the public the high officials whether on the bench or in executive or legislative positions need to remember that often the most dangerous criminals so far as the life of the nation is concerned are not those who commit the crimes known to and condemned by the popular conscience for centuries but those who commit crimes only rendered possible by the complex conditions of our modern industrial life it makes not a particle of difference whether these crimes are committed by a capitalist or by a laborer by a leading banker or manufacturer or railroad man or by a leading representative of a labor union swindling in stocks corrupting legislatures making fortunes by the inflation of securities by wrecking railroads by destroying competitors through rebates these forms of wrongdoing in the capitalist are far more infamous than any ordinary form of embezzlement or forgery yet it is a matter of extreme difficulty to secure the punishment of the man most guilty of them most responsible for them the business man who condones such conduct stands on a level with the labor man who deliberately supports a corrupt demagogue and agitator whether head of a union or head of some municipality because he is said to have stood by the union the members of the business community the educators or clergymen who condone and encourage the first kind of wrongdoing are no more dangerous to the community but are morally even worse than the labor men who are guilty of the second type of wrongdoing because less is to be pardoned those who have no such excuse as is furnished either by ignorance or by dire need when the department of agriculture was founded there was much sneering as to its usefulness no department of the government however has more emphatically vindicated its usefulness and none save the department comes so continually and intimately into touch with the people the two citizens whose welfare is in the aggregate most vital to the welfare of the nation and therefore to the welfare of all other citizens are the who does manual labor and the tiller of the soil the farmer there are of course kinds of labor where the work must be purely mental and there are other kinds of labor where under existing conditions very little demand indeed is made upon the mind though i am glad to say that the proportion of men engaged in this kind of work is diminishing but in any community with the solid healthy qualities which make up a really great nation the bulk of the people should do work which calls for the exercise of both body and mind progress can not permanently exist in the abandonment of physical labor but in the development of physical labor so that it shall represent more and more the work of the trained mind in the trained body our school system is gravely defective in so far as it puts a premium upon mere literary training and tends therefore to train the boy away from the farm and the workshop nothing is more needed than the best type of industrial school the school for mechanical industries in the city the school for practically teaching agriculture in the country the calling of the skilled tiller of the soil the calling of the skilled mechanic should alike be recognized as professions just as emphatically as the callings of lawyer doctor merchant or clerk the schools recognize this fact and it should equally be recognized in popular opinion the young man who has the farsightedness and courage to recognize it and to get over the idea that it makes a difference whether what he earns is called salary or wages and who refuses to enter the crowded field of the professions and takes to constructive industry instead is reasonably sure of an ample reward in earnings in health in opportunity to marry early and to establish a home with a fair amount of freedom from worry it should be one of our prime objects to put both the farmer and the mechanic on a higher plane of efficiency and reward so as to increase their effectiveness in the economic world and therefore the dignity the remuneration and the power of their positions in the social world no growth of cities no growth of wealth can make up for any loss in either the number or the character of the farming population we of the united states should realize this above almost all other peoples we began our existence as a nation of farmers and in every great crisis of the past a peculiar dependence has had to be placed upon the farming population and this dependence has hitherto been justified but it can not be justified in the future if agriculture is permitted to sink in the scale as compared with other employments we can not afford to lose that preeminently typical american the farmer who owns his own farm to have his place taken by either a class of small peasant proprietors or by a class of great landlords with estates would be a veritable calamity the growth of our cities is a good thing but only in so far as it does not mean a growth at the expense of the country farmer we must welcome the rise of physical sciences in their application to agricultural practices and we must do all we can to render country conditions more easy and pleasant there are forces which now tend to bring about both these results but they are as yet in their infancy the national government through the department of agriculture should do all it can by joining with the state governments and with independent associations of farmers to encourage the growth in the open farming country of such institutional and social movements as will meet the demand of the best type of farmers both for the improvement of their farms and for the betterment of the life itself the department of agriculture has in many places perhaps especially in certain districts of the south accomplished an extraordinary amount by cooperating with and teaching the farmers through their associations on their own soil how to increase their income by managing their farms better than they were hitherto managed the farmer must not lose his independence his initiative his rugged yet he must learn to work in the heartiest cooperation with his fellows exactly as the business man has learned to work and he must prepare to use to constantly better advantage the knowledge that can be obtained from agricultural colleges while he must insist upon a practical curriculum in the schools in which his children are taught the department of agriculture and the department of commerce and labor both deal with the fundamental needs of our people in the production of raw material and its manufacture and distribution and therefore with the welfare of those who produce it in the raw state and of those who manufacture and distribute it the department of commerce and labor has but recently been founded but has already justified its existence while the department of agriculture yields to no other in the government in the practical benefits which it produces in proportion to the public money expended it must continue in the future to deal with growing crops as it has dealt in the past but it must still further extend its field of usefulness hereafter by dealing with live men through a study and treatment of the problems of farm life alike from the industrial and economic and social standpoint farmers must cooperate with one another and with the government and the government can best give its aid through associations of farmers so as to deliver to the farmer the large body of agricultural knowledge which has been accumulated by the national and state governments and by the agricultural colleges and schools the grain producing industry of the country one of the most important in the united states deserves special consideration at the hands of the congress our grain is sold almost exclusively by grades to secure satisfactory results in our home markets and to facilitate our trade abroad these grades should approximate the highest degree of uniformity and certainty the present diverse methods of inspection and grading throughout the country under different laws and boards result in confusion and lack of uniformity destroying that confidence which is necessary for healthful trade complaints against the present methods have continued for years and they are growing in volume and intensity not only in this country but abroad i therefore suggest to the congress the advisability of a national system of inspection and grading of grain entering into interstate and foreign commerce as a remedy for the present evils the conservation of our natural resources and their proper use constitute the fundamental problem which underlies almost every other problem of our national life we must maintain for our civilization the adequate material basis without which that civilization can not exist we must show foresight we must look ahead as a nation we not only enjoy a wonderful measure of present prosperity but if this prosperity is used aright it is an earnest of future success such as no other nation will have the reward of foresight for this nation is great and easily foretold but there must be the look ahead there must be a realization of the fact that to waste to destroy our natural resources to skin and exhaust the land instead of using it so as to increase its usefulness will result in undermining in the days of our children the very prosperity which we ought by right to hand down to them amplified and developed for the last few years through several agencies the government has been endeavoring to get our people to look ahead and to substitute a planned and orderly development of our resources in place of a haphazard striving for immediate profit our great river systems should be developed as national water highways the mississippi with its tributaries standing first in importance and the columbia second although there are many others of importance on the pacific the atlantic and the gulf slopes the national government should undertake this work and i hope a beginning will be made in the present congress and the greatest of all our rivers the mississippi should receive especial attention from the great lakes to the mouth of the mississippi there should be a deep waterway with deep waterways leading from it to the east and the west such a waterway would practically mean the extension of our coast line into the very heart of our country it would be of incalculable benefit to our people if begun at once it can be carried through in time appreciably to relieve the congestion of our great lines of railroads the work should be systematically and continuously carried forward in accordance with some plan the main streams should be improved to the highest point of efficiency before the improvement of the branches is attempted and the work should be kept free from every faint of recklessness or jobbery the inland waterways which lie just back of the whole eastern and southern coasts should likewise be developed moreover the development of our waterways involves many other important water problems all of which should be considered as part of the same general scheme the government dams should be used to produce hundreds of thousands of horsepower as an incident to improving navigation for the annual value of the unused of the united states perhaps exceeds the annual value of the products of all our mines as an incident to creating the deep waterways down the mississippi the government should build along its whole lower length levees which taken together with the control of the headwaters will at once and forever put a complete stop to all threat of floods in the immensely fertile delta region the territory lying adjacent to the mississippi along its lower course will thereby become one of the most prosperous and populous as it already is one of the most fertile farming regions in all the world i have appointed an inland waterways commission to study and outline a comprehensive scheme of development along all the lines indicated later i shall lay its report before the congress irrigation should be far more extensively developed than at present not only in the states of the great plains and the rocky mountains but in many others as for instance in large portions of the south atlantic and gulf states where it should go hand in hand with the reclamation of swamp land the federal government should seriously devote itself to this task realizing that utilization of waterways and forestry irrigation and the reclamation of lands threatened with overflow are all interdependent parts of the same problem the work of the reclamation service in developing the larger opportunities of the western half of our country for irrigation is more important than almost any other movement the constant purpose of the government in connection with the reclamation service has been to use the water resources of the public lands for the ultimate greatest good of the greatest number in other words to put upon the land permanent to use and develop it for themselves and for their children and children children there has been of course opposition to this work opposition from some interested men who desire to exhaust the land for their own immediate profit without regard to the welfare of the next generation and opposition from honest and men who did not fully understand the subject or who did not look far enough ahead this opposition is i think dying away and our people are understanding that it would be utterly wrong to allow a few individuals to exhaust for their own temporary personal profit the resources which ought to be developed through use so as to be conserved for the permanent common advantage of the people as a whole the effort of the government to deal with the public land has been based upon the same principle as that of the reclamation service the land law system which was designed to meet the needs of the fertile and regions of the middle west has largely broken down when applied to the dryer regions of the great plains the mountains and much of the pacific slope where a farm of 160 acres is inadequate for in these regions the system lent itself to fraud and much land passed out of the hands of the government without passing into the hands of the the department of the interior and the department of justice joined in prosecuting the offenders against the law and they have accomplished much while where the administration of the law has been defective it has been changed but the laws themselves are defective three years ago a public lands commission was appointed to scrutinize the law and defects and recommend a remedy their examination specifically showed the existence of great fraud upon the public domain and their recommendations for changes in the law were made with the design of conserving the natural resources of every part of the public lands by putting it to its best use especial attention was called to the prevention of settlement by the passage of great areas of public land into the hands of a few men and to the enormous waste caused by unrestricted grazing upon the open range the recommendations of the public lands commission are sound for they are especially in the interest of the actual homemaker and where the small can not at present utilize the land they provide that the government shall keep control of it so that it may not be monopolized by a few men the congress has not yet acted upon these recommendations but they are so just and proper so essential to our national welfare that i feel confident if the congress will take time to consider them that they will ultimately be adopted some such legislation as that proposed is essential in order to preserve the great stretches of public grazing land which are unfit for cultivation under present methods and are valuable only for the forage which they supply these stretches amount in all to some acres and are open to the free grazing of cattle sheep horses and goats without restriction such a system or lack of system means that the range is not so much used as wasted by abuse as the west settles the range becomes more and more much of it can not be used to advantage unless it is fenced for fencing is the only way by which to keep in check the owners of nomad flocks which roam hither and thither utterly destroying the pastures and leaving a waste behind so that their presence is incompatible with the presence of the existing fences are all illegal some of them represent the improper exclusion of actual settlers actual from territory which is usurped by great cattle companies some of them represent what is in itself a proper effort to use the range for those upon the land and to prevent its use by nomadic outsiders all these fences those that are hurtful and those that are beneficial are alike illegal and must come down but it is an outrage that the law should necessitate such action on the part of the administration the unlawful fencing of public lands for private grazing must be stopped but the necessity which occasioned it must be provided for the federal government should have control of the range whether by permit or lease as local necessities may determine such control could secure the great benefit of legitimate fencing while at the same time securing and promoting the settlement of the country in some places it may be that the tracts of range adjacent to the homesteads of actual settlers should be allotted to them severally or in common for the summer grazing of their stock elsewhere it may be that a lease system would serve the purpose the leases to be temporary and subject to the rights of settlement and the amount charged being large enough merely to permit of the efficient and beneficial control of the range by the government and of the payment to the county of the equivalent of what it would otherwise receive in taxes the destruction of the public range will continue until some such laws as these are enacted fully to prevent the fraud in the public lands which through the joint action of the interior department and the department of justice we have been endeavoring to prevent there must be further legislation and especially a sufficient appropriation to permit the department of the interior to examine certain classes of entries on the ground before they pass into private ownership the government should part with its title only to the actual not to the who does not care to make a home our prime object is to secure the rights and guard the interests of the small ranchman the man who plows and pitches hay for himself it is this small ranchman this actual settler and homemaker who in the long run is most hurt by permitting thefts of the public land in whatever form optimism is a good characteristic but if carried to an excess it becomes foolishness we are prone to speak of the resources of this country as inexhaustible this is not so the mineral wealth of the country the coal iron oil gas and the like does not reproduce itself and therefore is certain to be exhausted ultimately and wastefulness in dealing with it means that our descendants will feel the exhaustion a generation or two before they otherwise would but there are certain other forms of waste which could be entirely stopped the waste of soil by washing for instance which is among the most dangerous of all wastes now in progress in the united states is easily preventable so that this present enormous loss of fertility is entirely unnecessary the preservation or replacement of the forests is one of the most important means of preventing this loss we have made a beginning in forest preservation but it is only a beginning at present lumbering is the fourth greatest industry in the united states and yet so rapid has been the rate of exhaustion of timber in the united states in the past and so rapidly is the remainder being exhausted that the country is unquestionably on the verge of a timber famine which will be felt in every household in the land there has already been a rise in the price of lumber but there is certain to be a more rapid and heavier rise in the future the present annual consumption of lumber is certainly three times as great as the annual growth and if the consumption and growth continue unchanged practically all our lumber will be exhausted in another generation while long before the limit to complete exhaustion is reached the growing scarcity will make itself felt in many blighting ways upon our national welfare about 20 per cent of our forested territory is now reserved in national forests but these do not include the most valuable timber lauds and in any event the proportion is too small to expect that the reserves can accomplish more than a mitigation of the trouble which is ahead for the nation far more drastic action is needed forests can be lumbered so as to give to the public the full use of their mercantile timber without the slightest detriment to the forest any more than it is a detriment to a farm to furnish a harvest so that there is no parallel between forests and mines which can only be completely used by exhaustion but forests if used as all our forests have been used in the past and as most of them are still used will be either wholly destroyed or so damaged that many decades have to pass before effective use can be made of them again all these facts are so obvious that it is extraordinary that it should be necessary to repeat them every business man in the land every writer in the newspapers every man or woman of an ordinary school education ought to be able to see that immense quantities of timber are used in the country that the forests which supply this timber are rapidly being exhausted and that if no change takes place exhaustion will come comparatively soon and that the effects of it will be felt severely in the life of our people surely when these facts are so obvious there should be no delay in taking preventive measures yet we seem as a nation to be willing to proceed in this matter with indifference even to the immediate future it is this attitude which permits the of a very few persons to weigh for more than the ultimate interest of all our people there are persons who find it to their immense pecuniary benefit to destroy the forests by lumbering they are to be blamed for thus sacrificing the future of the nation as a whole to their own of the moment but heavier blame attaches to the people at large for permitting such action whether in the white mountains in the southern alleghenies or in the rockies and sierras a big lumbering company impatient for immediate returns and not caring to look far enough ahead will often deliberately destroy all the good timber in a region hoping afterwards to move on to some new country the shiftless man of small means who does not care to become an actual but would like immediate profit will find it to his advantage to take up timber land simply to turn it over to such a big company and leave it valueless for future settlers a big mine owner anxious only to develop his mine at the moment will care only to cut all the timber that he wishes without regard to the future probably net looking ahead to the condition of the country when the forests are exhausted any more than he does to the condition when the mine is worked out i do not blame these men nearly as much as i blame the supine public opinion the indifferent public opinion which permits their action to go unchecked of course to check the waste of timber means that there must be on the part of the public the acceptance of a temporary restriction in the lavish use of the timber in order to prevent the total loss of this use in the future there are plenty of men in public and private life who actually advocate the continuance of the present system of unchecked and wasteful extravagance using as an argument the fact that to check it will of course mean interference with the ease and comfort of certain people who now get lumber at less cost than they ought to pay at the expense of the future generations some of these persons actually demand that the present forest reserves be thrown open to destruction because forsooth they think that thereby the price of lumber could be put down again for two or three or more years their attitude is precisely like that of an agitator protesting against the outlay of money by farmers on manure and in taking care of their farms generally undoubtedly if the average farmer were content absolutely to ruin his farm he could for two or three years avoid spending any money on it and yet make a good deal of money out of it but only a savage would in his private affairs show such reckless disregard of the future yet it is precisely this reckless disregard of the future which the opponents of the forestry system are now endeavoring to get the people of the united states to show the only trouble with the movement for the preservation of our forests is that it has not gone nearly far enough and was not begun soon enough it is a most fortunate thing however that we began it when we did we should acquire in the appalachian and white mountain regions all the forest lands that it is possible to acquire for the use of the nation these lands because they form a national asset are as emphatically national as the rivers which they feed and which flow through so many states before they reach the ocean there should be no tariff on any forest product grown in this country and in especial there should be no tariff on wood pulp due notice of the change being of course given to those engaged in the business so as to enable them to adjust themselves to the new conditions the repeal of the duty on wood pulp should if possible be accompanied by an agreement with canada that there shall be no export duty on canadian pulp wood in the eastern united states the mineral fuels have already passed into the hands of large private owners and those of the west are rapidly following it is obvious that these fuels should be conserved and not wasted and it would be well to protect the people against unjust and extortionate prices so far as that can still be done what has been accomplished in the great oil fields of the indian territory by the action of the administration offers a striking example of the good results of such a policy in my judgment the government should have the right to keep the fee of the coal oil and gas fields in its own possession and to lease the rights to develop them under proper regulations or else if the congress will not adopt this method the coal deposits should be sold under limitations to conserve them as public utilities the right to mine coal being separated from the title to the soil the regulations should permit coal lands to be worked in sufficient quantity by the several corporations the present limitations have been absurd excessive and serve no useful purpose and often render it necessary that there should be either fraud or close abandonment of the work of getting out the coal work on the panama canal is proceeding in a highly satisfactory manner in march last john stevens chairman of the commission and chief engineer resigned and the commission was reorganized and constituted as follows lieut george goethals corps of engineers you army chairman and chief engineer corps of engineers you army william sibert corps of engineers you army civil engineer rousseau you navy blackburn gorgas you army and jackson smith commissioners this change of authority and direction went into effect on april 1 without causing a perceptible check to the progress of the work in march the total excavation in the culebra cut where effort was chiefly concentrated was cubic yards in april this was increased to cubic yards there was a considerable decrease in the output for may and june owing partly to the advent of the rainy season and partly to temporary trouble with the steam shovel men over the question of wages this trouble was settled satisfactorily to all parties and in july the total excavation advanced materially and in august the grand total from all points in the canal prism by steam shovels and dredges exceeded all previous united states records reaching cubic yards in september this record was eclipsed and a total of cubic yards was removed of this amount cubic yards were from the canal prism and cubic yards were from accessory works these results were achieved in the rainy season with a rainfall in august of inches and in september of inches finally in october the record was again eclipsed the total excavation being cubic yards a truly extraordinary record especially in view of the heavy rainfall which was inches in fact experience during the last two rainy seasons demonstrates that the rains are a less serious obstacle to progress than has hitherto been supposed work on the locks and dams at gatun which began actively in march last has advanced so far that it is thought that masonry work on the locks can be begun within fifteen months in order to remove all doubt as to the satisfactory character of the foundations for the locks of the canal the secretary of war requested three eminent civil engineers of special experience in such construction alfred noble frederic stearns and john freeman to visit the isthmus and make thorough personal investigations of the sites these gentlemen went to the isthmus in april and by means of test pits which had been dug for the purpose they inspected the proposed foundations and also examined the borings that had been made in their report to the secretary of war under date of may 2 1907 they said we found that all of the locks of the dimensions now propesed will rest upon rock of such character that it will furnish a safe and stable foundation subsequent new borings conducted by the present commission have fully confirmed this verdict they show that the locks will rest on rock for their entire length the cross section of the dam and method of construction will be such as to insure against any slip or sloughing off similar examination of the foundations of the locks and dams on the pacific side are in progress i believe that the locks should be made of a width of 120 feet last winter bids were requested and received for doing the work of canal construction by contract none of them was found to be satisfactory and all were rejected it is the unanimous opinion of the present commission that the work can be done better more cheaply and more quickly by the government than by private contractors fully 80 per cent of the entire plant needed for construction has been purchased or contracted for machine shops have been erected and equipped for making all needed repairs to the plant many thousands of employees have been secured an effective organization has been perfected a recruiting system is in operation which is capable of furnishing more labor than can be used advantageously employees are well sheltered and well fed salaries paid are satisfactory and the work is not only going forward smoothly but it is producing results far in advance of the most sanguine anticipations under these favorable conditions a change in the method of prosecuting the work would be unwise and unjustifiable for it would inevitably disorganize existing conditions check progress and increase the cost and lengthen the time of completing the canal the chief engineer and all his professional associates are firmly convinced that the 85 feet level lock canal which they are constructing is the best that could be desired some of them had doubts on this point when they went to the isthmus as the plans have developed under their direction their doubts have been dispelled while they may decide upon changes in detail as construction advances they are in hearty accord in approving the general plan they believe that it provides a canal not only adequate to all demands that will be made upon it but superior in every way to a sea level canal i concur in this belief i commend to the favorable consideration of the congress a postal savings bank system as recommended by the the primary object is to encourage among our people economy and thrift and by the use of postal savings banks to give them an opportunity to husband their resources particularly those who have not the facilities at hand for depositing their money in savings banks viewed however from the experience of the past few weeks it is evident that the advantages of such an institution are till more timid depositors have withdrawn their savings for the time being from national banks trust companies and savings banks individuals have hoarded their cash and the workingmen their earnings all of which money has been withheld and kept in hiding or in safe deposit box to the detriment of prosperity through the agency of the postal savings banks such money would be restored to the channels of trade to the mutual benefit of capital and labor i further commend to the congress the consideration of the recommendation for an extension of the parcel post especially on the rural routes there are now rural routes serving nearly people who do not have the advantages of the inhabitants of cities in obtaining their supplies these recommendations have been drawn up to benefit the farmer and the country storekeeper otherwise i should not favor them for i believe that it is good policy for our government to do everything possible to aid the small town and the country district it is desirable that the country merchant should not be crushed out the postmasters convention has passed a very strong resolution in favor of placing the postmasters under the law the administration has already put into effect the policy of refusing to remove any postmasters save for reasons connected with the good of the service and it is endeavoring so far as possible to remove them from the domain of partisan politics it would be a most desirable thing to put the postmasters in the classified service it is possible that this might be done without congressional action but as the matter is debatable i earnestly recommend that the congress enact a law providing that they be included under the law and put in the classified service oklahoma has become a state standing on a full equality with her elder sisters and her future is assured by her great natural resources the duty of the national government to guard the personal and property rights of the indians within her borders remains of course unchanged i reiterate my recommendations of last year as regards alaska some form of local should be provided as simple and inexpensive as possible it is impossible for the congress to devote the necessary time to all the little details of necessary alaskan legislation road building and railway building should be encouraged the governor of alaska should begiven an ample appropriation wherewith to organize a force to preserve the public peace whisky selling to the natives should be made a felony the coal land laws should be changed so as to meet the peculiar needs of the territory this should be attended to at once for the present laws permit individuals to locate large areas of the public domain for speculative purposes and because an immense amount of trouble fraud and litigation there should be another judicial division established as early as possible lighthouses and buoys should be established as aids to navigation especially in and about prince william sound and the survey of the coast completed there is need of liberal appropriations for lighting and buoying the southern coast and improving the aids to navigation in southeastern alaska one of the great industries of alaska as of puget sound and the columbia is salmon fishing gradually by reason of lack of proper laws this industry is being ruined it should now be taken in charge and effectively protected by the united states government the courage and enterprise of the citizens of the in their projected exposition to be held in 1909 should receive liberal encouragement this exposition is not sentimental in its conception but seeks to exploit the natural resources of alaska and to promote the commerce trade and industry of the pacific states with their neighboring states and with our insular possessions and the neighboring countries of the pacific the exposition asks no loan from the congress but seeks appropriations for national exhibits and exhibits of the western dependencies of the general government the state of washington and the city of seattle have shown the characteristic western enterprise in large donations for the conduct of this exposition in which other states are lending generous assistance the unfortunate failure of the shipping bill at the last session of the last congress was followed by the taking off of certain pacific steamships which has greatly hampered the movement of passengers between hawaii and the mainland unless the congress is prepared by positive encouragement to secure proper facilities in the way of shipping between hawaii and the mainland then the coastwise shipping laws should be so far relaxed as to prevent hawaii suffering as it is now suffering i again call your attention to the capital importance from every standpoint of making pearl harbor available for the largest deep water vessels and of suitably fortifying the islan the secretary of war has gone to the philippines on his return i shall submit to you his report on the islands i again recommend that the rights of citizenship be conferred upon the people of porto rico a bureau of mines should be created under the control and direction of the secretary of the interior the bureau to have power to collect statistics and make investigations in all matters pertaining to mining and particularly to the accidents and dangers of the industry if this can not now be done at least additional appropriations should be given the interior department to be used for the study of mining conditions for the prevention of fraudulent mining schemes for carrying on the work of mapping the mining districts for studying methods for minimizing the accidents and dangers in the industry in short to aid in all proper ways the development of the mining industry i strongly recommend to the congress to provide funds for keeping up the hermitage the home of andrew jackson these funds to be used through the existing hermitage association for the preservation of a historic building which should ever be dear to americans i further recommend that a naval monument be established in the vicksburg national park this national park gives a unique opportunity for commemorating the deeds of those gallant men who fought on water no less than of those who fought on land in the great civil war legislation should be enacted at the present session of the congress for the thirteenth census the establishment of the permanent census bureau affords the opportunity for a better census than we have ever had but in order to realize the full advantage of the permanent organization ample time must be given for preparation there is a constantly growing interest in this country in the question of the public health at last the public mind is awake to the fact that many diseases notably tuberculosis are national scourges the work of the state and city boards of health should be supplemented by a constantly increasing interest on the part of the national government the congress has already provided a bureau of public health and has provided for a hygienic laboratory there are other valuable laws relating to the public health connected with the various departments this whole branch of the government should be strengthened and aided in every way i call attention to two government commissions which i have appointed and which have already done excellent work the first of these has to do with the organization of the scientific work of the government which has grown up wholly without plan and is in consequence so unwisely distributed among the executive departments that much of its effect is lost for the lack of proper coordination this commission chief object is to introduce a planned and orderly development and operation in the place of the and often ineffective grouping and methods of work which have prevailed this can not be done without legislation nor would it be feasible to deal in detail with so complex an administrative problem by specific provisions of law i recommend that the president be given authority to concentrate related lines of work and reduce duplication by executive order through transfer and consolidation of lines of work the second committee that on department methods was instructed to investigate and report upon the changes needed to place the conduct of the executive force of the government on the most economical and effective basis in the light of the best modern business practice the committee has made very satisfactory progress antiquated practices and bureaucratic ways have been abolished and a general renovation of departmental methods has been inaugurated all that can be done by executive order has already been accomplished or will be put into effect in the near future the work of the main committee and its several assistant committees has produced a wholesome awakening on the part of the great body of officers and employees engaged in government work in nearly every department and office there has been a careful for the purpose of remedying any defects before they could be made the subject of adverse criticism this has led individuals to a wider study of the work on which they were engaged and this study has resulted in increasing their efficiency in their respective lines of work there are recommendations of special importance from the committee on the subject of personnel and the classification of salaries which will require legislative action before they can be put into effect it is my intention to submit to the congress in the near future a special message on those subjects under our form of government voting is not merely a right but a duty and moreover a fundamental and necessary duty if a man is to be a good citizen it is well to provide that corporations shall not contribute to presidential or national campaigns and furthermore to provide for the publication of both contributions and expenditures there is however always danger in laws of this kind which from their very nature are difficult of enforcement the danger being lest they be obeyed only by the honest and disobeyed by the unscrupulous so as to act only as a penalty upon honest men moreover no such law would hamper an unscrupulous man of unlimited means from buying his own way into office there is a very radical measure which would i believe work a substantial improvement in our system of conducting a campaign although i am well aware that it will take some time for people so to familiarize themselves with such a proposal as to be willing to consider its adoption the need for collecting large campaign funds would vanish if congress provided an appropriation for the proper and legitimate expenses of each of the great national parties an appropriation ample enough to meet the necessity for thorough organization and machinery which requires a large expenditure of money then the stipulation should be made that no party receiving campaign funds from the treasury should accept more than a fixed amount from any individual subscriber or donor and the necessary publicity for receipts and expenditures could without difficulty be provided there should be a national gallery of art established in the capital city of this country this is important not merely to the artistic but to the material welfare of the country and the people are to be congratulated on the fact that the movement to establish such a gallery is taking definite form under the guidance of the smithsonian institution so far from there being a tariff on works of art brought into the country their importation should be encouraged in every way there have been no sufficient collections of objects of art by the government and what collections have been acquired are scattered and are generally placed in unsuitable and imperfectly lighted galleries the biological survey is quietly working for the good of our agricultural interests and is an excellent example of a government bureau which conducts original scientific research the findings of which are of much practical utility for more than twenty years it has studied the food habits of birds and mammals that are injurious or beneficial to agriculture horticulture and forestry has distributed illustrated bulletins on the subject and has labored to secure legislative protection for the beneficial species the cotton which has recently overspread the cotton belt of texas and is steadily extending its range is said to because an annual loss of about the biological survey has ascertained and gives wide publicity to the fact that at least 43 kinds of birds prey upon this destructive insect it has discovered that 57 species of birds feed upon dreaded enemies of the fruit grower it has shown that woodpeckers as a class by destroying the larvae of insects are so essential to tree life that it is doubtful if our forests could exist without them it has shown that cuckoos and orioles are the natural enemies of the caterpillars that destroy our shade and fruit trees that our quails and sparrows consume annually hundreds of tons of seeds of noxious weeds that hawks and owls as a class excepting the few that kill poultry and game birds are markedly beneficial spending their lives in catching grasshoppers mice and other pests that prey upon the products of husbandry it has conducted field experiments for the purpose of devising and perfecting simple methods for holding in check the hordes of destructive rodents rats mice rabbits gophers prairie dogs and ground squirrels which annually destroy crops worth many millions of dollars and it has published practical directions for the destruction of wolves and coyotes on the stock ranges of the west resulting during the past year in an estimated saving of cattle and sheep valued at upwards of a million dollars it has inaugurated a system of inspection at the principal ports of entry on both atlantic and pacific coasts by means of which the introduction of noxious mammals and birds is prevented thus keeping out the mongoose and certain birds which are as much to be dreaded as the previously introduced english sparrow and the house rats and mice in the interest of game protection it has cooperated with local officials in every state in the union has striven to promote uniform legislation in the several states has rendered important service in enforcing the federal law regulating interstate traffic in game and has shown bow game protection may be made to yield a large revenue to the state a revenue amounting in the case of illinois to in a single year the biological survey has explored the faunas and floras of america with reference to the distribution of animals and plants it has defined and mapped the natural life areas areas in which by reason of prevailing climatic conditions certain kinds of animals and plants occur and has pointed out the adaptability of these areas to the cultivation of particular crops the results of these investigations are not only of high educational value but are worth each year to the progressive farmers of the country many times the cost of maintaining the survey which it may be added is exceedingly small i recommend to congress that this bureau whose usefulness is seriously handicapped by lack of funds be granted an appropriation in some degree commensurate with the importance of the work it is doing i call your especial attention to the unsatisfactory condition of our foreign mail service which because of the lack of american steamship lines is now largely done through foreign lines and which particularly so far as south and central america are concerned is done in a manner which constitutes a serious barrier to the extension of our commerce the time has come in my judgment to set to work seriously to make our ocean mail service correspond more closely with our recent commercial and political development a beginning was made by the ocean mail act of march 3 1891 but even at that time the act was known to be inadequate in various particulars since that time events have moved rapidly in our history we have acquired hawaii the philippines and lesser islands in the pacific we are steadily prosecuting the great work of uniting at the isthmus the waters of the atlantic and the pacific to a greater extent than seemed probable even a dozen years ago we may look to an american future on the sea worthy of the traditions of our past as the first step in that direction and the step most feasible at the present time i recommend the extension of the ocean mail act of 1891 this act has stood for some years free from successful criticism of its principle and purpose it was based on theories of the obligations of a great maritime nation undisputed in our own land and followed by other nations since the beginning of steam navigation briefly those theories are that it is the duty of a power so far as practicable to carry its ocean mails under its own flag that the fast ocean steamships and their crews required for such mail service are valuable auxiliaries to the sea power of a nation furthermore the construction of such steamships insures the maintenance in an efficient condition of the shipyards in which our battleships must be built the expenditure of public money for the performance of such necessary functions of government is certainly warranted nor is it necessary to dwell upon the incidental benefits to our foreign commerce to the shipbuilding industry and to ship owning and navigation which will accompany the discharge of these urgent public duties though they too should have weight the only serious question is whether at this time we can afford to improve our ocean mail service as it should be improved all doubt on this subject is removed by the reports of the department for the fiscal year ended june 30 1907 that department estimates that the postage collected on the articles exchanged with foreign countries other than canada and mexico amounted to or more than the net cost of the service exclusive of the cost of transporting the articles between the united states exchange and the united states at which they were mailed or delivered in other words the government of the united states having assumed a monopoly of carrying the mails for the people making a profit of over by rendering a cheap and inefficient service that profit i believe should be devoted to strengthening maritime power in those directions where it will best promote our prestige the country is familiar with the facts of our maritime impotence in the harbors of the great and friendly republics of south america following the failure of the shipbuilding bill we lost our only american line of steamers to australasia and that loss on the pacific has become a serious embarrassment to the people of hawaii and has wholly cut off the samoan islands from regular communication with the pacific coast puget sound in the year has lost over half four out of seven of its american steamers trading with the orient we now pay under the act of 1891 4 a statute mile outward to american mail steamships built according to naval plans available as cruisers and manned by americans steamships of that speed are confined exclusively to trade with new york to steamships of 16 knots or over only 2 a mile can be paid and it is steamships of this speed and type which are needed to meet the requirements of mail service to south america asia including the philippines and australia i strongly recommend therefore a simple amendment to the ocean mail act of 1891 which shall authorize the in his discretion to enter into contracts for the transportation of mails to the republics of south america to asia the philippines and australia at a rate not to exceed 4 a mile for steamships of 16 knots speed or upwards subject to the restrictions and obligations of the act of 1891 the profit of which has been mentioned will fully cover the maximum annual expenditure involved in this recommendation and it is believed will in time establish the lines so urgently needed the proposition involves no new principle but permits the efficient discharge of public functions now inadequately performed or not performed at all not only there is not now but there never has been any other nation in the world so wholly free from the evils of militarism as is ours there never has been any other large nation not even china which for so long a period has had relatively to its numbers so small a regular army as has ours never at any time in our history has this nation suffered from militarism or been in the remotest danger of suffering from militarism never at any time of our history has the regular army been of a size which caused the slightest appreciable tax upon the citizens of the nation almost always it has been too small in size and underpaid never in our entire history has the nation suffered in the least particular because too much care has been given to the army too much prominence given it too much money spent upon it or because it has been too large but again and again we have suffered because enough care has not been given to it because it has been too small because there has not been sufficient preparation in advance for possible war every foreign war in which we have engaged has cost us many times the amount which if wisely expended during the preceding years of peace on the regular army would have insured the war ending in but a fraction of the time and but for a fraction of the cost that was actually the case as a nation we have always been shortsighted in providing for the efficiency of the army in time of peace it is nobody especial interest to make such provision and no one looks ahead to war at any period no matter how remote as being a serious possibility while an improper economy or rather niggardliness can be practiced at the expense of the army with the certainty that those practicing it will not be called to account therefor but that the price will be paid by the unfortunate persons who happen to be in office when a war does actually come i think it is only lack of foresight that troubles us not any hostility to the army there are of course foolish people who denounce any care of the army or navy as militarism but i do not think that these people are numerous this country has to contend now and has had to contend in the past with many evils and there is ample scope for all who would work for reform but there is not one evil that now exists or that ever has existed in this country which is or ever has been owing in the smallest part to militarism declamation against militarism has no more serious place in an earnest and intelligent movement for righteousness in this country than declamation against the worship of baal or astaroth it is declamation against a evil one which never has existed in this country and which has not the slightest chance of appearing here we are glad to help in any movement for international peace but this is because we sincerely believe that it is our duty to help all such movements provided they are sane and rational and not because there is any tendency toward militarism on our part which needs to be cured the evils we have to fight are those in connection with industrialism not militarism industry is always necessary just as war is sometimes necessary each has its price and industry in the united states now exacts and has always exacted a far heavier toll of death than all our wars put together the statistics of the railroads of this country for the year ended june 30 1906 the last contained in the annual statistical report of the interstate commerce commission show in that one year a total of casualties to persons of which represent the number of persons killed in that wonderful hive of human activity pittsburg the deaths due to industrial accidents in 1906 were 919 all the result of accidents in mills mines or on railroads for the entire country therefore it is safe to say that the deaths due to industrial accidents aggregate in the neighborhood of twenty thousand a year such a record makes the death rate in all our foreign wars utterly trivial by comparison the number of deaths in battle in all the foreign wars put together for the last century and a quarter aggregate considerably less than one year death record for our industries a mere glance at these figures is sufficient to show the absurdity of the outcry against militarism but again and again in the past our little regular army has rendered service literally vital to the country and it may at any time have to do so in the future its standard of efficiency and instruction is higher now than ever in the past but it is too small there are not enough officers and it is impossible to secure enough enlisted men we should maintain in peace a fairly complete skeleton of a large army a great and war would have to be fought by volunteers but months would pass before any large body of efficient volunteers could be put in the field and our regular army should be large enough to meet any immediate need in particular it is essential that we should possess a number of extra officers trained in peace to perform efficiently the duties urgently required upon the breaking out of war the medical corps should be much larger than the needs of our regular army in war yet at present it is smaller than the needs of the service demand even in peace the spanish war occurred less than ten years ago the chief loss we suffered in it was by disease among the regiments which never left the country at the moment the nation seemed deeply impressed by this fact yet seemingly it has already been forgotten for not the slightest effort has been made to prepare a medical corps of sufficient size to prevent the repetition of the same disaster on a much larger scale if we should ever be engaged in a serious conflict the trouble in the spanish war was not with the then existing officials of the war department it was with the representatives of the people as a whole who for the preceding thirty years had declined to make the necessary provision for the army unless ample provision is now made by congress to put the medical corps where it should be put disaster in the next war is inevitable and the responsibility will not lie with those then in charge of the war department but with those who now decline to make the necessary provision a well organized medical corps thoroughly trained before the advent of war in all the important administrative duties of a military sanitary corps is essential to the efficiency of any large army and especially of a large volunteer army such knowledge of medicine and surgery as is possessed by the medical profession generally will not alone suffice to make an efficient military surgeon he must have in addition knowledge of the administration and sanitation of large field hospitals and camps in order to safeguard the health and lives of men intrusted in great numbers to his care a bill has long been pending before the congress for the reorganization of the medical corps its passage is urgently needed but the medical department is not the only department for which increased provision should be made the rate of pay for the officers should be greatly increased there is no higher type of citizen than the american regular officer and he should have a fair reward for his admirable work there should be a relatively even greater increase in the pay for the enlisted men in especial provision should be made for establishing grades equivalent to those of warrant officers in the navy which should be open to the enlisted men who serve sufficiently long and who do their work well inducements should be offered sufficient to encourage really good men to make the army a life occupation the prime needs of our present army is to secure and retain competent noncommissioned officers this difficulty rests fundamentally on the question of pay the noncommissioned officer does not correspond with an unskilled laborer he corresponds to the best type of skilled workman or to the subordinate official in civil institutions wages have greatly increased in outside occupations in the last forty years and the pay of the soldier like the pay of the officers should be proportionately increased the first sergeant of a company if a good man must be one of such executive and administrative ability and such knowledge of his trade as to be worth far more than we at present pay him the same is true of the regimental sergeant major these men should be men who had fully resolved to make the army a life occupation and they should be able to look forward to ample reward while only men properly qualified should be given a chance to secure these final rewards the increase over the present pay need not be great in the lower grades for the first one or two enlistments but the increase should be marked for the noncommissioned officers of the upper grades who serve long enough to make it evident that they intend to stay permanently in the army while additional pay should be given for high qualifications in target practice the position of warrant officer should be established and there should be not only an increase of pay but an increase of privileges and allowances and dignity so as to make the grade open to noncommissioned officers capable of filling them desirably from every standpoint the rate of desertion in our army now in time of peace is alarming the deserter should be treated by public opinion as a man guilty of the greatest crime while on the other hand the man who serves steadily in the army should be treated as what he is that is as preeminently one of the best citizens of this republic after twelve years service in the army my own belief is that the man should be given a preference according to his ability for certain types of office over all civilian applicants without examination this should also apply of course to the men who have served twelve years in the navy a special corps should be provided to do the manual labor now necessarily demanded of the privates themselves among the officers there should be severe examinations to weed out the unfit up to the grade of major from that position on appointments should be solely by selection and it should be understood that a man of merely average capacity could never get beyond the position of major while every man who serves in any grade a certain length of time prior to promotion to the next grade without getting the promotion to the next grade should be forthwith retired the practice marches and field maneuvers of the last two or three years have been invaluable to the army they should be continued and extended a rigid and not a perfunctory examination of physical capacity has been provided for the higher grade officers this will work well unless an officer has a good physique unless he can stand hardship ride well and walk fairly he is not fit for any position even after he has become a colonel before he has become a colonel the need for physical fitness in the officers is almost as great as in the enlisted man i hope speedily to see introduced into the army a far more rigid and thoroughgoing test of horsemanship for all field officers than at present there should be a chief of cavalry just as there is a chief of artillery perhaps the most important of all legislation needed for the benefit of the army is a law to equalize and increase the pay of officers and enlisted men of the army navy marine corps and service such a bill has been prepared which it is hoped will meet with your favorable consideration the next most essential measure is to authorize a number of extra officers as mentioned above to make the army more attractive to enlisted men it is absolutely essential to create a service corps such as exists in nearly every modern army in the world to do the skilled and unskilled labor inseparably connected with military administration which is now exacted without just compensation of enlisted men who voluntarily entered the army to do service of an altogether different kind there are a number of other laws necessary to so organize the army as to promote its efficiency and facilitate its rapid expansion in time of war but the above are the most important it was hoped the hague conference might deal with the question of the limitation of armaments but even before it had assembled informal inquiries had developed that as regards naval armaments the only ones in which this country had any interest it was hopeless to try to devise any plan for which there was the slightest possibility of securing the assent of the nations gathered at the hague no plan was even proposed which would have had the assent of more than one first class power outside of the united states the only plan that seemed at all feasible that of limiting the size of battleships met with no favor at all it is evident therefore that it is folly for this nation to base any hope of securing peace on any international agreement as to the limitations of armaments such being the fact it would be most unwise for us to stop the upbuilding of our navy to build one battleship of the best and most advanced type a year would barely keep our fleet up to its present force this is not enough in my judgment we should this year provide for four battleships but it is idle to build battleships unless in addition to providing the men and the means for thorough training we provide the auxiliaries for them unless we provide docks the coaling stations the colliers and supply ships that they need we are extremely deficient in coaling stations and docks on the pacific and this deficiency should not longer be permitted to exist plenty of torpedo boats and destroyers should be built both on the atlantic and pacific coasts fortifications of the best type should be provided for all our greatest harbors we need always to remember that in time of war the navy is not to be used to defend harbors and cities we should perfect our system of coast fortifications the only efficient use for the navy is for offense the only way in which it can efficiently protect our own coast against the possible action of a foreign navy is by destroying that foreign navy for defense against a hostile fleet which actually attacks them the coast cities must depend upon their forts mines torpedoes submarines and torpedo boats and destroyers all of these together are efficient for defensive purposes but they in no way supply the place of a thoroughly efficient navy capable of acting on the offensive for parrying never yet won a fight it can only be won by hard hitting and an aggressive navy alone can do this hard hitting of the offensive type but the forts and the like are necessary so that the navy may be footloose in time of war there is sure to be demand under pressure of fright for the ships to be scattered so as to defend all kind of ports under penalty of terrible disaster this demand must be refused the ships must be kept together and their objective made the enemies fleet if fortifications are sufficiently strong no modern navy will venture to attack them so long as the foe has in existence a hostile navy of anything like the same size or efficiency but unless there exists such a navy then the fortifications are powerless by themselves to secure the victory for of course the mere deficiency means that any resolute enemy can at his leisure combine all his forces upon one point with the certainty that he can take it until our battle fleet is much larger than at present it should never be split into detachments so far apart that they could not in event of emergency be speedily united our coast line is on the pacific just as much as on the atlantic the interests of california oregon and washington are as emphatically the interests of the whole union as those of maine and new york of louisiana and texas the battle fleet should now and then be moved to the pacific just as at other times it should be kept in the atlantic when the isthmian canal is built the transit of the battle fleet from one ocean to the other will be comparatively easy until it is built i earnestly hope that the battle fleet will be thus shifted between the two oceans every year or two the marksmanship on all our ships has improved phenomenally during the last five years until within the last two or three years it was not possible to train a battle fleet in squadron maneuvers under service conditions and it is only during these last two or three years that the training under these conditions has become really effective another and most necessary stride in advance is now being taken the battle fleet is about starting by the straits of magellan to visit the pacific coast sixteen battleships are going under the command of evans while eight armored cruisers and two other battleships will meet him at san francisco whither certain torpedo destroyers are also going no fleet of such size has ever made such a voyage and it will be of very great educational use to all engaged in it the only way by which to teach officers and men how to handle the fleet so as to meet every possible strain and emergency in time of war is to have them practice under similar conditions in time of peace moreover the only way to find out our actual needs is to perform in time of peace whatever maneuvers might be necessary in time of war after war is declared it is too late to find out the needs that means to invite disaster this trip to the pacific will show what some of our needs are and will enable us to provide for them the proper place for an officer to learn his duty is at sea and the only way in which a navy can ever be made efficient is by practice at sea under all the conditions which would have to be met if war existed i bespeak the most liberal treatment for the officers and enlisted men of the navy it is true of them as likewise of the officers and enlisted men of the army that they form a body whose interests should be close to the heart of every good american in return the most rigid performance of duty should be exacted from them the reward should be ample when they do their best and nothing less than their best should be tolerated it is idle to hope for the best results when the men in the senior grades come to those grades late in life and serve too short a time in them up to the rank of promotion in the navy should be as now by seniority subject however to such rigid tests as would eliminate the unfit after the grade of that is when we come to the grade of command rank the unfit should be eliminated in such manner that only the conspicuously fit would remain and sea service should be a principal test of fitness those who are passed by should after a certain length of service in their respective grades be retired of a given number of men it may well be that almost all would make good lieutenants and most of them good while only a minority be fit to be captains and but three or four to be admirals those who object to promotion otherwise than by mere seniority should reflect upon the elementary fact that no business in private life could be successfully managed if those who enter at the lowest rungs of the ladder should each in turn if he lived become the head of the firm its active director and retire after he had held the position a few months on its face such a scheme is an absurdity chances for improper favoritism can be minimized by a properly formed board such as the board of last june which did such conscientious and excellent work in elimination if all that ought to be done can not now be done at least let a beginning be made in my last three annual messages and in a special message to the last congress the necessity for legislation that will because officers of the line of the navy to reach the grades of captain and at less advanced ages and which will because them to have more sea training and experience in the highly responsible duties of those grades so that they may become thoroughly skillful in handling battleships divisions squadrons and fleets in action has been fully explained and urgently recommended upon this subject the secretary of the navy has submitted detailed and definite recommendations which have received my approval and which if enacted into law will accomplish what is immediately necessary and will as compared with existing law make a saving of more than five millions of dollars during the next seven years the navy personnel act of 1899 has accomplished all that was expected of it in providing satisfactory periods of service in the several subordinate grades from the grade of ensign to the grade of but the law is inadequate in the upper grades and will continue to be inadequate on account of the expansion of the personnel since its enactment your attention is invited to the following quotations from the report of the personnel board of 1906 of which the assistant secretary of the navy was president congress has authorized a considerable increase in the number of midshipmen at the naval academy and these midshipmen upon graduation are promoted to ensign and lieutenant but no provision has been made for a corresponding increase in the upper grades the result being that the lower grades will become so congested that a midshipman now in one of the lowest classes at annapolis may possibly not be promoted to lieutenant until he is between 45 and 50 years of age so it will continue under the present law congesting at the top and congesting at the bottom the country fails to get from the officers of the service the best that is in them by not providing opportunity for their normal development and training the board believes that this works a serious detriment to the efficiency of the navy and is a real menace to the public safety as stated in my special message to the last congress i am firmly of the opinion that unless the present conditions of the higher commissioned personnel is rectified by judicious legislation the future of our navy will be gravely compromised it is also urgently necessary to increase the efficiency of the medical corps of the navy special legislation to this end has already been proposed and i trust it may be enacted without delay it must be remembered that everything done in the navy to fit it to do well in time of war must be done in time of peace modern wars are short they do not last the length of time requisite to build a battleship and it takes longer to train the officers and men to do well on a battleship than it takes to build it nothing effective can be done for the navy once war has begun and the result of the war if the combatants are otherwise equally matched will depend upon which power has prepared best in time of peace the united states navy is the best guaranty the nation has that its honor and interest will not be neglected and in addition it offers by far the best insurance for peace that can by human ingenuity be devised i call attention to the report of the official board of visitors to the naval academy at annapolis which has been forwarded to the congress the report contains this paragraph such revision should be made of the courses of study and methods of conducting and marking examinations as will develop and bring out the average ability of the midshipman rather than to give him prominence in any one particular study the fact should be kept in mind that the naval academy is not a university but a school the primary object of which is to educate boys to be efficient naval officers changes in curriculum therefore should be in the direction of making the course of instruction less theoretical and more practical no portion of any future class should be graduated in advance of the full four years course and under no circumstances should the standard of instruction be lowered the academy in almost all of its departments is now magnificently equipped and it would be very unwise to make the course of instruction less exacting than it is acting upon this suggestion i designated three seagoing officers capt richard wainwright commander robert griffin and lieut commander albert key all graduates of the academy to investigate conditions and to recommend to me the best method of carrying into effect this general recommendation these officers performed the duty promptly and intelligently and under the personal direction of capt charles badger superintendent of the academy such of the proposed changes as were deemed to be at present advisable were put into effect at the beginning of the academic year october 1 last the results i am confident will be most beneficial to the academy to the midshipmen and to the navy in foreign affairs this country steady policy is to behave toward other nations as a strong and man should behave toward the other men with whom he is brought into contact in other words our aim is disinterestedly to help other nations where such help can be wisely given without the appearance of meddling with what does not concern us to be careful to act as a good neighbor and at the same time in fashion to make it evident that we do not intend to be imposed upon the second international peace conference was convened at the hague on the 15th of june last and remained in session until the 18th of october for the first time the representatives of practically all the civilized countries of the world united in a temperate and kindly discussion of the methods by which the causes of war might be narrowed and its injurious effects reduced although the agreements reached in the conference did not in any direction go to the length hoped for by the more sanguine yet in many directions important steps were taken and upon every subject on the programme there was such full and considerate discussion as to justify the belief that substantial progress has been made toward further agreements in the future thirteen conventions were agreed upon embodying the definite conclusions which had been reached and resolutions were adopted marking the progress made in matters upon which agreement was not yet sufficiently complete to make conventions practicable the delegates of the united states were instructed to favor an agreement for obligatory arbitration the establishment of a permanent court of arbitration to proceed judicially in the hearing and decision of international causes the prohibition of force for the collection of contract debts alleged to be due from governments to citizens of other countries until after arbitration as to the justice and amount of the debt and the time and manner of payment the immunity of private property at sea the better definition of the rights of neutrals and in case any measure to that end should be introduced the limitation of armaments in the field of peaceful disposal of international differences several important advances were made first as to obligatory arbitration although the conference failed to secure a unanimous agreement upon the details of a convention for obligatory arbitration it did resolve as follows it is unanimous 1 in accepting the principle for obligatory arbitration 2 in declaring that certain differences and notably those relating to the interpretation and application of international conventional stipulations are susceptible of being submitted to obligatory arbitration without any restriction in view of the fact that as a result of the discussion the vote upon the definite treaty of obligatory arbitration which was proposed stood 32 in favor to 9 against the adoption of the treaty there can be little doubt that the great majority of the countries of the world have reached a point where they are now ready to apply practically the principles thus unanimously agreed upon by the conference the second advance and a very great one is the agreement which relates to the use of force for the collection of contract debts your attention is invited to the paragraphs upon this subject in my message of december 1906 and to the resolution of the third american conference at rio in the summer of 1906 the convention upon this subject adopted by the conference substantially as proposed by the american delegates is as follows in order to avoid between nations armed conflicts of a purely pecuniary origin arising from contractual debts claimed of the government of one country by the government of another country to be due to its nationals the signatory powers agree not to have recourse to armed force for the collection of such contractual debts however this stipulation shall not be applicable when the debtor state refuses or leaves unanswered an offer to arbitrate or in case of acceptance makes it impossible to formulate the terms of submission or after arbitration fails to comply with the award rendered it is further agreed that arbitration here contemplated shall be in conformity as to procedure with chapter iii of the convention for the pacific settlement of international disputes adopted at the hague and that it shall determine in so far as there shall be no agreement between the parties the justice and the amount of the debt the time and mode of payment thereof such a provision would have prevented much injustice and extortion in the past and i can not doubt that its effect in the future will be most salutary a third advance has been made in amending and perfecting the convention of 1899 for the voluntary settlement of international disputes and particularly the extension of those parts of that convention which relate to commissions of inquiry the existence of those provisions enabled the governments of great britain and russia to avoid war notwithstanding great public excitement at the time of the dogger bank incident and the new convention agreed upon by the conference gives practical effect to the experience gained in that inquiry substantial progress was also made towards the creation of a permanent judicial tribunal for the determination of international causes there was very full discussion of the proposal for such a court and a general agreement was finally reached in favor of its creation the conference recommended to the signatory powers the adoption of a draft upon which it agreed for the organization of the court leaving to be determined only the method by which the judges should be selected this remaining unsettled question is plainly one which time and good temper will solve a further agreement of the first importance was that for the creation of an international prize court the constitution organization and procedure of such a tribunal were provided for in detail anyone who recalls the injustices under which this country suffered as a neutral power during the early part of the last century can not fail to see in this provision for an international prize court the great advance which the world is making towards the substitution of the rule of reason and justice in place of simple force not only will the international prize court be the means of protecting the interests of neutrals but it is in itself a step towards the creation of the more general court for the hearing of international controversies to which reference has just been made the organization and action of such a prize court can not fail to accustom the different countries to the submission of international questions to the decision of an international tribunal and we may confidently expect the results of such submission to bring about a general agreement upon the enlargement of the practice numerous provisions were adopted for reducing the evil effects of war and for defining the rights and duties of neutrals the conference also provided for the holding of a third conference within a period similar to that which elapsed between the first and second conferences the delegates of the united states worthily represented the spirit of the american people and maintained with fidelity and ability the policy of our government upon all the great questions discussed in the conference the report of the delegation together with authenticated copies of the conventions signed when received will be laid before the senate for its consideration when we remember how difficult it is for one of our own legislative bodies composed of citizens of the same country speaking the same language living under the same laws and having the same customs to reach an agreement or even to secure a majority upon any difficult and important subject which is proposed for legislation it becomes plain that the representatives of different countries speaking many different languages accustomed to different methods of procedure with widely diverse interests who discussed so many different subjects and reached agreements upon so many are entitled to grateful appreciation for the wisdom patience and moderation with which they have discharged their duty the example of this temperate discussion and the agreements and the efforts to agree among representatives of all the nations of the earth acting with universal recognition of the supreme obligation to promote peace can not fail to be a powerful influence for good in future international relations a year ago in consequence of a revolutionary movement in cuba which threatened the immediate return to chaos of the island the united states intervened sending down an army and establishing a provisional government under governor magoon absolute quiet and prosperity have returned to the island because of this action we are now taking steps to provide for elections in the island and our expectation is within the coming year to be able to turn the island over again to government chosen by the people thereof cuba is at our doors it is not possible that this nation should permit cuba again to sink into the condition from which we rescued it all that we ask of the cuban people is that they be prosperous that they govern themselves so as to bring content order and progress to their island the queen of the antilles and our only interference has been and will be to help them achieve these results an invitation has been extended by japan to the government and people of the united states to participate in a great national exposition to be held at tokyo from april 1 to october 31 1912 and in which the principal countries of the world are to be invited to take part this is an occasion of special interest to all the nations of the world and peculiarly so to us for it is the first instance in which such a great national exposition has been held by a great power dwelling on the pacific and all the nations of europe and america will i trust join in helping to success this first great exposition ever held by a great nation of asia the geographical relations of japan and the united states as the possessors of such large portions of the coasts of the pacific the intimate trade relations already existing between the two countries the warm friendship which has been maintained between them without break since the opening of japan to intercourse with the western nations and her increasing wealth and production which we regard with hearty goodwill and wish to make the occasion of mutually beneficial commerce all unite in making it eminently desirable that this invitation should be accepted i heartily recommend such legislation as will provide in generous fashion for the representation of this government and its people in the proposed exposition action should be taken now we are apt to underestimate the time necessary for preparation in such cases the invitation to the french exposition of 1900 was brought to the attention of the congress by president cleveland in december 1895 and so many are the delays necessary to such proceedings that the period of font years and a half which then intervened before the exposition proved none too long for the proper preparation of the exhibits the adoption of a new tariff by germany accompanied by conventions for reciprocal tariff concessions between that country and most of the other countries of continental europe led the german government to the notice necessary to terminate the reciprocal commercial agreement with this country proclaimed july 13 1900 the notice was to take effect on the 1st of march 1906 and in default of some other arrangements this would have left the exports from the united states to germany subject to the general german tariff duties from 25 to 50 per cent higher than the conventional duties imposed upon the goods of most of our competitors for german trade under a special agreement made between the two governments in february 1906 the german government postponed the operation of their notice until the 30th of june 1907 in the meantime deeming it to be my duty to make every possible effort to prevent a tariff war between the united states and germany arising from misunderstanding by either country of the conditions existing in the other and acting upon the invitation of the german government i sent to berlin a commission composed of competent experts in the operation and administration of the customs tariff from the departments of the treasury and commerce and labor this commission was engaged for several mouths in conference with a similar commission appointed by the german government under instructions so far as practicable to reach a common understanding as to all the facts regarding the tariffs of the united states and germany material and relevant to the trade relations between the two countries the commission reported and upon the basis of the report a further temporary commercial agreement was entered into by the two countries pursuant to which in the exercise of the authority conferred upon the president by the third section of the tariff act of july 24 1897 i extended the reduced tariff rates provided for in that section to champagne and all other sparkling wines and pursuant to which the german conventional or minimum tariff rates were extended to about 96 per cent of all the exports from the united states to germany this agreement is to remain in force until the 30th of june 1908 and until six months after notice by either party to terminate it the agreement and the report of the commission on which it is based will be laid before the congress for its information this careful examination into the tariff relations between the united states and germany involved an inquiry into certain of our methods of administration which had been the because of much complaint on the part of german exporters in this inquiry i became satisfied that certain vicious and unjustifiable practices had grown up in our customs administration notably the practice of determining values of imports upon detective reports never disclosed to the persons whose interests were affected the use of detectives though often necessary tends towards abuse and should be carefully guarded under our practice as i found it to exist in this case the abuse had become gross and discreditable under it instead of seeking information as to the market value of merchandise from the and respected members of the commercial community in the country of its production secret statements were obtained from informers and discharged employees and business rivals and upon this kind of secret evidence the values of imported goods were frequently raised and heavy penalties were frequently imposed upon importers who were never permitted to know what the evidence was and who never had an opportunity to meet it it is quite probable that this system tended towards an increase of the duties collected upon imported goods but i conceive it to be a violation of law to exact more duties than the law provides just as it is a violation to admit goods upon the payment of less than the legal rate of duty this practice was repugnant to the spirit of american law and to american sense of justice in the judgment of the most competent experts of the treasury department and the department of commerce and labor it was wholly unnecessary for the due collection of the customs revenues and the attempt to defend it merely illustrates the demoralization which naturally follows from a long continued course of reliance upon such methods i accordingly caused the regulations governing this branch of the customs service to be modified so that values are determined upon a hearing in which all the parties interested have an opportunity to be heard and to know the evidence against them moreover our treasury agents are accredited to the government of the country in which they seek information and in germany receive the assistance of the chambers of commerce in determining the actual market value of goods in accordance with what i am advised to be the true construction of the law these changes of regulations were adapted to the removal of such manifest abuses that i have not felt that they ought to be confined to our relations with germany and i have extended their operation to all other countries which have expressed a desire to enter into similar administrative relations i ask for authority to reform the agreement with china under which the indemnity of 1900 was fixed by remitting and cancelling the obligation of china for the payment of all that part of the stipulated indemnity which is in excess of the sum of eleven million six hundred and thousand four hundred and dollars and cents and interest at four per cent after the rescue of the foreign legations in peking during the boxer troubles in 1900 the powers required from china the payment of equitable indemnities to the several nations and the final protocol under which the troops were withdrawn signed at peking september 7 1901 fixed the amount of this indemnity allotted to the united states at over and china paid up to and including the 1st day of june last a little over it was the first intention of this government at the proper time when all claims had been presented and all expenses ascertained as fully as possible to revise the estimates and account and as a proof of sincere friendship for china voluntarily to release that country from its legal liability for all payments in excess of the sum which should prove to be necessary for actual indemnity to the united states and its citizens this nation should help in every practicable way in the education of the chinese people so that the vast and populous empire of china may gradually adapt itself to modern conditions one way of doing this is by promoting the coming of chinese students to this country and making it attractive to them to take courses at our universities and higher educational institutions our educators should so far as possible take concerted action toward this end on the courteous invitation of the president of mexico the secretary of state visited that country in september and october and was received everywhere with the greatest kindness and hospitality he carried from the government of the united states to our southern neighbor a message of respect and good will and of desire for better acquaintance and increasing friendship the response from the government and the people of mexico was hearty and sincere no pains were spared to manifest the most friendly attitude and feeling toward the united states in view of the close neighborhood of the two countries the relations which exist between mexico and the united states are just because for gratification we have a common boundary of over miles from the gulf of mexico to the pacific much of it is marked only by the shifting waters of the rio grande many thousands of mexicans are residing upon our side of the line and it is estimated that over americans are resident in mexican territory and that american investments in mexico amount to over seven hundred million dollars the extraordinary industrial and commercial prosperity of mexico has been greatly promoted by american enterprise and americans are sharing largely in its results the foreign trade of the republic already exceeds per annum and of this both of exports and imports are exchanged with the united states under these circumstances numerous questions necessarily arise between the two countries these questions are always approached and disposed of in a spirit of mutual courtesy and fair dealing americans carrying on business in mexico testify uniformly to the kindness and consideration with which they are treated and their sense of the security of their property and enterprises under the wise administration of the great statesman who has so long held the office of chief magistrate of that republic the two governments have been uniting their efforts for a considerable time past to aid central america in attaining the degree of peace and order which have made possible the prosperity of the northern ports of the continent after the peace between guatemala honduras and salvador celebrated under the circumstances described in my last message a new war broke out between the republics of nicaragua honduras and salvador the effort to compose this new difficulty has resulted in the acceptance of the joint suggestion of the presidents of mexico and of the united states for a general peace conference between all the countries of central america on the 17th day of september last a protocol was signed between the representatives of the five central american countries accredited to this government agreeing upon a conference to be held in the city of washington in order to devise the means of preserving the good relations among said republics and bringing about permanent peace in those countries the protocol includes the expression of a wish that the presidents of the united states and mexico should appoint representatives to lend their good and impartial offices in a purely friendly way toward the realization of the objects of the conference the conference is now in session and will have our best wishes and where it is practicable our friendly assistance one of the results of the pan american conference at rio janeiro in the summer of 1906 has been a great increase in the activity and usefulness of the international bureau of american republics that institution which includes all the american republics in its membership and brings all their representatives together is doing a really valuable work in informing the people of the united states about the other republics and in making the united states known to them its action is now limited by appropriations determined when it was doing a work on a much smaller scale and rendering much less valuable service i recommend that the contribution of this government to the expenses of the bureau be made commensurate with its increased work
nation greater resources think truthfully said citizens nation possess greater energy industrial ability nation fundamental business conditions sounder moment foolish case people hoard money instead keeping sound banks hoarding immediate occasion money stringency moreover rule business people conducted honesty probity applies alike farms factories railroads banks legitimate commercial enterprises large body men however certain dishonest conditions men prosper commit misdeeds impunity example evil thing community men business men great sagacity temperament unscrupulous reckless conditions act without supervision control first without effective check public opinion delude many innocent people making investments embarking kinds business really unsound misdeeds successfully dishonest men discovered suffering comes upon upon innocent men misled painful awakening whenever occurs naturally occur suffer apt forget longer deferred painful would effort punish guilty wise proper endeavor far possible minimize distress misled guilty yet possible refrain distress striving put end misdeeds ultimate causes suffering means end possible punish responsible may honest differences opinion many governmental policies surely differences need unflinching perseverance war successful dishonesty message congress december 5 1905 said folly man mars general innocent folly pay part penalty incurred guilty folly panic brought speculative folly part business community would hurt whole business community stoppage welfare though might severe would lasting long run one vital factor permanent prosperity country high individual character average american worker average american citizen matter whether work mental manual whether farmer business man professional man industrial social system interests men closely intertwined immense majority cases man efficiency ingenuity industry benefits must also benefit others normally man great productive capacity becomes rich guiding labor many men enabling produce could produce without guidance share benefit comes also public large superficial fact sharing may unequal must never blind us underlying fact sharing benefit comes degree man concerned normally wageworker man small means average consumer well average producer alike helped making conditions man exceptional business ability receives exceptional reward ability something done legislation help general prosperity help permanently beneficial character given less able less fortunate save results policy shall inure advantage industrious efficient people act decently another way saying benefit comes less able less fortunate must necessity come even able fortunate therefore less fortunate man moved envy fortunate brother strike conditions though unequally prospered result assuredly damage may come one struck visit even heavier load one strikes blow taken whole must go go together yet merely admitting insisting upon also true governmental restraint supervision exceptional men use energies ways common good ways tell common good fortunes amassed corporate organization large vest power wield make matter necessity give sovereign government represents people whole effective power supervision corporate use order insure healthy social industrial life every big corporation held responsible accountable sovereign strong enough control conduct sense hostile corporations age combination effort prevent combination useless end vicious contempt law failure enforce law inevitably produces moreover recognize cordial ample fashion immense good effected corporate agencies country wealth intellect energy fidelity devoted service therefore normally service public officers directors corporation come stay trade union come stay done great good favored long good sharply checked acts law justice makers national constitution provided especially regulation interstate commerce come within sphere general government arguments favor taking stand even overwhelming far stronger view enormous development great business agencies usually corporate form experience shown conclusively useless try get adequate regulation supervision great corporations state action regulation supervision effectively exercised sovereign whose jurisdiction coextensive field work corporations national government believe regulation supervision obtained enactment law congress steady aim legislation cautiously carefully undertaken resolutely persevered assert sovereignty national government affirmative action form innovation substance merely restoration earliest time regulation industrial activities recognized action lawmaking bodies propose meet changed conditions manner prevent commonwealth abdicating power always possessed country also england since country became separate nation misfortune national laws subject hitherto negative prohibitive rather affirmative kind still part sought prohibit could effectively prohibited part prohibitions confounded allowed allowed generally useless try prohibit restraint competition whether restraint reasonable unreasonable useless generally hurtful successful prosecution one device evade law immediately develops another device accomplish purpose needed sweeping prohibition every arrangement good bad may tend restrict competition adequate supervision regulation prevent restriction competition detriment public well supervision regulation prevent abuses way connected restriction competition called attention quotations already said satisfied duty national government embody action principles thus expressed small part trouble comes carrying extreme national virtue independence initiative action wise conserve virtue provide fullest exercise compatible seeing liberty become liberty wrong others unfortunately kind liberty lack effective regulation inevitably breeds founders constitution provided national government complete sole control interstate commerce practically interstate business save conducted water national government proceeded regulate thoroughgoing effective fashion conditions wholly changed interstate commerce water insignificant compared amount goes land almost big business concerns engaged interstate commerce result partially imperfectly controlled regulated action one several states action inevitably tending either drastic else lax either case ineffective purposes justice national government thoroughgoing fashion exercise needed control mean extension federal authority authority already exists constitution amplest form mean extension federal activity advocating centralization merely looking facts face realizing centralization business already come avoided undone public large protect certain evil effects business centralization providing better methods exercise control authority already centralized national government constitution must ball healthy constructive course action nation elected pursue steadily pursued last six years shown legislation congress administration law department justice vital need connection railroads judgment either national incorporation act law licensing railway companies engage interstate commerce upon certain conditions law framed give interstate commerce commission power pass upon future issue securities ample means provided enable commission whenever judgment necessary make physical valuation railroad stated message congress year ago railroads given power enter agreements subject argreements made public minute detail consent interstate commerce commission first obtained national government assumes proper control interstate commerce exercise authority already possesses impossible either give get railroads full justice railroads great corporations well recognize control must come question governmental body wisely exercise courts determine limits within federal authority exercise still remain ample work within state railway commission state national interstate commerce commission work harmony several state commissions within province achieve desired end moreover judgment additional legislation looking proper control great business concerns engaged interstate business control exercised benefit prosperity less protection investors general public repeatedly said messages congress elsewhere experience definitely shown merely unwisdom futility endeavoring put stop business combinations modern industrial conditions combination necessary inevitable world business world labor idle desire put end corporations big combinations capital desire put end combinations labor corporation labor union alike come stay properly managed source good evil whenever either evil promptly held account receive hearty encouragement long properly managed profoundly immoral put keep statute books law nominally interest public morality really puts premium upon public immorality undertaking forbid honest men must done modern business conditions law provides infraction must condition precedent upon business success aim accomplishment much usually means accomplishment little often positive damage message congress year ago speaking antitrust laws said actual working laws shown effort prohibit combination good bad noxious ineffective combination capital like combination labor necessary element present industrial system possible completely prevent possible complete prevention would damage body politic need vainly try prevent combination secure rigorous adequate control supervision combinations prevent injuring public existing forms inevitably threaten injury unfortunate present laws forbid combinations instead sharply discriminating combinations evil often railroads would like combine purpose preventing big shipper maintaining improper advantages expense small shippers general public combination instead forbidden law favored public evil statute books law incapable full enforcement judges juries realize full enforcement would destroy business country result make decent men violators law put premium behavior willful wrongdoers result turn tends throw decent man willful wrongdoer close association end drag clown former latter level man becomes lawbreaker one way unhappily tends lose respect law willing break many ways scathing condemnation could visited upon law contained words interstate commerce commission commenting upon fact numerous joint traffic associations technically violate law say decision united states supreme court case joint traffic association case produced practical effect upon railway operations country associations fact exist decisions general effect justice parties ought probably add difficult see interstate railways could operated due regard interest shipper railway without concerted action kind afforded asociations means law construed supreme court business country conducted without breaking elsewhere said substantially said surely ought necessary say shape way represents hostility corporations contrary means frank recognition fact combinations capital like combinations labor natural result modern conditions national development far ability lies endeavor prevent abuse power either favor long well aim national government quite much favor protect honest corporations honest business men wealth bring justice individuals corporations representing dishonest methods certainly relaxation government authorities effort get great railroad wrecker man clever swindling devices robs investors oppresses injustice general public move interest honest railway operators honest corporations invest small savings stocks bonds wish assured represent money honestly expended legitimate business purposes confer upon national government power ask would check upon overcapitalization upon clever gamblers benefit overcapitalization alone would mean increase value increase safety stocks bonds honestly managed railroads would render far easier market securities believe proper publicity complaint investigations recently carried complain put blame belongs upon misdeeds done darkness upon investigations brought light administration responsible turning light responsible light showed ask full power given federal government single state legislation effectually cope powerful corporations engaged interstate commerce full justice exact return full justice others conditions railroad activity conditions immense interstate commerce make central government alone competent exercise full supervision control grave abuses individual cases railroad management past represent wrongs merely general public wrongs honest corporations men wealth excite popular anger distrust nature case tends include sweep resentment good bad alike standpoint public earnestly say soon natural proper resentment aroused abuses becomes indiscriminate unthinking also becomes merely unwise unfair calculated defeat ends feeling view plenty dishonest work corporations past slightest effort hunt punish every dishonest man bulk business honestly done natural indignation people feel dishonesty essential lose heads get drawn indiscriminate raid upon corporations people wealth whether well wild movement good come come never come contrary surest way invite reaction follow lead either demagogue visionary sweeping assault upon property values upon public confidence would work incalculable damage business world would produce distrust agitators revulsion distrust would extend honest men sincere fashion trying remedy evils antitrust law repealed made efficient harmony actual conditions amended forbid kind combination harm general public amendment accompanied incident grant supervisory power government big concerns engaged interstate business accompanied provision compulsory publication accounts subjection books papers inspection government officials beginning already made supervision establishment bureau corporations antitrust law prohibit combinations injustice public still less existence whole benefit public even feature law abolished would remain equally objectionable feature difficulty delay incident enforcement government must submit irksome repeated delay obtaining final decision courts upon proceedings instituted even favorable decree may mean empty victory moreover attempt control corporations lawsuits means impose upon department justice courts impossible burden feasible carry limited number suits law really effective must course administered executive body merely means lawsuits design prevent abuses incident creation unhealthy improper combinations instead waiting existence attempting destroy civil criminal proceedings combination tolerated abuse power acquired combination public detriment corporation association kind permitted engage foreign interstate commerce formed purpose whose operations create monopoly general control production sale distribution one prime necessities life articles general use necessity combinations public policy violate common law doors courts closed parties believe congress close channels interstate commerce protection law make prohibitions permissions clear definite possible leaving least possible room arbitrary action allegation action part executive divergent interpretations courts among points aimed prohibition unhealthy competition rendering service actual loss purpose crushing competition prevention inflation capital prohibition corporation making exclusive trade condition trade reasonable agreements combinations corporations permitted provided submitted approved appropriate government body congress power charter corporations engage interstate foreign commerce general law enacted provisions existing corporations could take federal charters new federal corporations could created essential provision law method predetermining federal board commission whether applicant federal charter association combination within restrictions federal law provision also made complete publicity matters affecting public complete protection investing public shareholders matter issuing corporate securities incorporation law deemed advisable license act big interstate corporations might enacted combination two might tried supervision established might analogous exercised national banks least antitrust act supplemented specific prohibitions methods experience shown service enabling monopolistic combinations crush competition real owners corporation compelled business name right hold stock corporations hereafter denied interstate corporations unless approval government officials prerequisite approval listing government owners stockholders corporation owning stock corporation stock owned confer upon national government connection amendment advocate antitrust law power supervision big business concerns engaged interstate commerce would benefit benefited national banks recent business crisis noteworthy institutions failed institutions supervision control national government national control stood test national control kind advocated would benefit every railway standpoint public need additional tracks additional terminals improvements actual handling railroads rapidly possible ample safe speedy transportation facilities even necessary cheap transportation therefore need investment money provide things time securing far possible better wages shorter hours employees therefore must reasonable regulation rates first protest arbitrary unthinking movement cut without fullest careful consideration interests concerned actual needs situation special body men acting national government authority conferred upon congress competent pass judgment matter fear reason extension federal activity well study history national banking act law notably meat inspection law recently enacted law opposed violently passage delayed decade yet worked unmixed immediate good meat inspection law even violently assailed men denounce attitude national government seeking oversee control workings interstate common carriers business concerns asserted discrediting ruining great american industry two years elapsed already become evident great benefit law confers upon public accompanied equal benefit reputable packing establishments latter better law without benefit interstate common carriers business concerns legislation advocate would equally marked incidentally passage law action various state food dairy commissioners showed striking fashion much good whole people results hearty cooperation federal state officials securing given reform primarily action state commissioners owe enactment law aroused people first demand enactment enforcement state laws subject enactment federal law without state laws largely ineffective must closest cooperation national state governments administering laws message congress year ago spoke follows currency especially call attention condition currency laws act ably served great purpose aiding enormous business development country within ten years increase circulation per capita several years evidence accumulating additional legislation needed recurrence crop season emphasizes defects present laws must soon revision leave means incur liability business disaster since body adjourned fluctuation interest call money 2 per cent 30 percent fluctuation even greater preceding six months secretary treasury step wise action put stop violent period oscillation even worse fluctuation advance commercial rates uncertainty felt sufficiency credit even high rates commercial interests suffer crop period excessive rates call money new york attract money interior banks speculative field depletes fund would otherwise available commercial uses commercial borrowers forced pay abnormal rates fall tax shape increased interest charges placed whole commerce country mere statement facts shows present system seriously defective need change unfortunately however many proposed changes must ruled consideration complicated easy comprehension tend disturb existing rights interests must also rule plan would materially impair value united states 2 per cent bonds pledged secure circulation issue made conditions peculiarly creditable treasury press especial plan various plans recently proposed expert committees bankers among plans possibly feasible certainly receive consideration repeatedly brought attention present secretary treasury essential features approved many prominent bankers business men according plan national banks permitted issue specified proportion capital notes given kind issue taxed high rate drive notes back wanted legitimate trade plan would permit issue currency give banks additional profits meet emergency presented times stringency say right system advance emphasize belief need adoption system shall automatic open sound banks avoid possibility discrimination favoritism plan would tend prevent spasms high money speculation obtain new york market present much currency certain seasons year accumulation new york tempts bankers lend low rates speculative purposes whereas times crops moved urgent need large temporary increase currency supply must never forgotten question concerns business men generally quite much bankers especially true stockmen farmers business men west present certain seasons year difference interest rates east west 6 10 per cent whereas canada corresponding difference 2 per cent plan must course guard interests western southern bankers carefully guards interests new york chicago bankers must drawn standpoints farmer merchant less standpoints city banker country banker urge congress need immediate attention matter need greater elasticity currency provided course recognize even greater need safe secure currency must always rigid examination national authorities provision made emergency currency emergency issue course made effective guaranty upon conditions carefully prescribed government emergency issue must based adequate securities approved government must issued heavy tax would permit currency issued demand urgent securing requirement demand fell worth investigating determine whether officers directors national banks ever allowed loan trust companies subject supervision banks legislation effect enacted district columbia territories yet must also remember even wisest legislation subject accomplish certain amount legislation possibility guarantee business community results speculative folly guarantee individual results extravagance individual mortgages house buy automobile invites disaster wealthy men men pose unscrupulously foolishly eager become indulge reckless speculation especially accompanied dishonesty jeopardize future future innocent expose whole business community panic distress income account nation satisfactory condition six fiscal years ending 1st july last total expenditures revenues national government exclusive postal revenues expenditures round numbers revenues expenditures net excess income expenditures including latter fifty millions expended panama canal one hundred ninety million dollars six years average millions year represents approximation income outgo would hard improve satisfactory working present tariff law chiefly responsible excellent showing nevertheless evident constantly growing feeling among people time rapidly approaching system revenue legislation must revised country definitely committed protective system effort uproot could widespread industrial disaster words principle present tariff law could wisdom changed country phenomenal growth probably well every dozen years tariff laws carefully scrutinized see excessive improper benefits conferred thereby proper revenue provided foreign trade encouraged must always minimum tariff allow collection ample revenue least make good difference cost production abroad difference labor cost abroad must ever cardinal point american policy question approached purely business standpoint time manner change arouse minimum agitation disturbance business world give least play selfish factional motives sole consideration see sum total changes represents public good means subject wisdom dealt year preceding presidential election matter fact experience conclusively shown time impossible get men treat standpoint public good judgment wise time deal matter immediately election tax laws revised question income tax inheritance tax receive careful attention legislators judgment taxes part system federal taxation speak diffidently income tax one scheme income tax declared unconstitutional supreme court addition difficult tax administer practical working great care would exercised see evaded men desirable taxed evaded would course worse tax least desirable taxes tax bears heavily upon honest compared dishonest man nevertheless graduated income tax proper type would desirable feature federal taxation hoped one may devised supreme court declare constitutional inheritance tax however far better method taxation far important purpose fortunes country bear proportion increase size corresponding increase burden taxation government absolute right decide terms upon man shall receive bequest devise another point devolution property especially appropriate imposition tax laws imposing taxes repeatedly placed upon national statute books repeatedly declared constitutional courts laws contained progressive principle certain amount reached bequest gift life death increasingly burdened rate taxation increased proportion remoteness blood man receiving bequest principles recognized already leading civilized nations world great britain estates worth less practically exempt death duties increase estate exceeds five millions dollars value passes distant kinsman stranger blood government receives told amount equivalent nearly fifth whole estate france much inheritance exceeds pays fifth state passes distant relative german law especially interesting us makes inheritance tax imperial measure allotting individual states empire portion proceeds permitting impose taxes addition imposed imperial government small inheritances exempt tax sharply progressive inheritance still large provided agricultural forest land taxed rate 25 per cent goes distant relatives reason united states national government impose inheritance taxes addition imposed states last inheritance tax states levied taxes concurrently national government making combined maximum rate cases high 25 per cent french law one feature heartily commended progressive principle applied higher rate imposed excess amount subject next lower rate increase rate apply certain amount certain maximum tax possible made bear heavily upon residing without country within heavy progressive tax upon large fortune way tax upon thrift industry like would small fortune advantage comes either country whole individuals inheriting money permitting transmission entirety enormous fortunes would affected tax incident function revenue raising tax would help preserve measurable equality opportunity people generations growing manhood slightest sympathy socialistic idea would try put laziness thriftlessness inefficiency par industry thrift efficiency would strive break merely private property far important home chief prop upon whole civilization stands theory ever adopted would mean ruin entire country ruin would bear heaviest upon weakest upon least able shift proposals legislation herein advocated directly opposed class socialistic theories aim recognize lincoln pointed fact respects men obviously equal also insist equality mutual respect equality rights law least approximate equality conditions man obtains chance show stuff compared fellows years ago loud complaint law could invoked wealthy offenders complaint course department justice last years make evident man stands law corporation wealthy held account department justice prompt proceed wealthiest malefactor whose crime one greed cunning proceed agitator incites brutal violence everything done existing law existing state public opinion profoundly influences courts juries done laws need strengthening one important point made definite honest man led unwittingly break real wrongdoer readily punished moreover must public opinion back laws laws avail present average juryman undoubtedly wishes see trusts broken quite ready fine corporation reluctant find facts proven beyond reasonable doubt comes sending jail member business community indulging practices profoundly unhealthy unfortunately business community grown recognize normal present condition law present temper juries render task extreme difficulty get real wrongdoer case especially imprisonment yet every standpoint far preferable punish prime offender imprisonment rather fine corporation attendant damage stockholders two great evils execution criminal laws sentimentality technicality latter remedy must come hands legislatures courts lawyers must depend cure upon gradual growth sound public opinion shall insist regard law demands reason shall control influences emotions jury box evils must removed public discontent criminal law continue instances abuse granting injunctions labor disputes continue occur resentment minds feel rights invaded liberty action speech unwarrantably restrained continues likewise grow much attack use process injunction wholly without warrant constrained express belief warrant question becoming one prime importance unless courts deal effective manner certain ultimately demand form legislative action would unfortunate social welfare permit many honest citizens feel regarding courts hostility earnestly commend attention congress matter way may devised limit abuse injunctions protect rights time time unwarrantably invades moreover discontent often expressed use process injunction courts labor disputes state laws concerned refrain discussion question informed soon receive consideration supreme court federal courts must course decide ultimately respective spheres state nation connection law state national must decide definitely finally matters affecting individual citizens rights wrongs labor rights wrongs capital national government must always see decision court put effect process injunction essential adjunct court work well preventive measures always better remedial wise use process every standpoint commendable recklessly unnecessarily used abuse censured men properly anxious prevent effort shear courts necessary power court decision must final protest conduct individual judges needlessly anticipating final decision tyrannical use nominally temporary injunction accomplish fact permanent decision loss life limb railroad accidents country become appalling subject national government take supervision might well begin providing federal inspection interstate railroads somewhat along lines federal inspection steamboats although going far perhaps first would necessary would officer whose duty would investigate accidents interstate railroads report detail causes thereof officer make business get close touch railroad operating men become thoroughly familiar every side question idea work along lines present steamboat inspection law national government model employer demand highest quality service employees care properly return congress adopt legislation providing limited definite compensation accidents workmen within scope federal power including employees navy yards arsenals words model employers liability act thoroughgoing enacted apply positions public private national government jurisdiction number accidents including preventable become appalling mechanical manufacturing transportation operations day works grim hardship ordinary family effect accident fall solely upon hand whole classes attorneys exist inciting men may may wronged undertake suits negligence matter fact suit negligence generally inadequate remedy person injured often causes altogether disproportionate annoyance employer law made payment accidents employer would automatic instead matter lawsuits workmen receive certain definite compensation accidents industry irrespective negligence employer agent public responsibility profit serves public starts motion agencies create risks others take ordinary extraordinary risks involved risk thus moment assumes ultimately assumed ought general public way shock accident diffused instead falling upon man woman least able bear case community large share burdens well benefits industry proposed law employers would gain desirable certainty obligation get rid litigation determine workman family would relieved crushing load policy would come increased care accidents would reduced number national laws providing employers liability railroads engaged interstate commerce safety appliances well diminishing hours employee railroad permitted work strengthened wherever actual practice shown weakness kept statute books thoroughgoing form constitutionality employers liability act passed preceding congress carried courts two jurisdictions law declared unconstitutional three jurisdictions constitutionality affirmed question carried supreme court case heard tribunal decision expected early date event court affirm constitutionality act urge legislation along lines advocated message preceding congress practice putting entire burden loss life limb upon victim victim family form social injustice united states stands unenviable prominence federal state legislation exceptions scarcely gone farther repeal principle old law liability states even slight modification completely outgrown principle yet secured legislation rest industrial world stands striking contrast backwardness respect since 1895 practically every country europe together great britain new zealand australia british columbia cape good hope enacted legislation embodying one form another complete recognition principle places upon employer entire trade risk various lines industry urge upon congress enactment law time bring federal legislation standard already established european countries serve stimulus various states perfect legislation regard congress consider extension law constitutionality present law recently called question supreme court decided existing legislation unquestionably within powers congress principle day rapidly far practicable extended entire work carried government present law amended embrace contracts public works present wording act construed exclude general introduction day goal toward steadily tend government set example respect strikes lockouts attendant loss suffering continue increase five years ending december 31 1905 number strikes greater previous ten years double number preceding five years figures indicate increasing need providing machinery deal class disturbance interest alike employer employee general public renew previous recommendation congress favorably consider matter creating machinery compulsory investigation industrial controversies sufficient magnitude sufficient concern people country whole warrant federal government taking action need provision investigation forcibly illustrated past summer strike telegraph operators seriously interfered telegraphic communication causing great damage business interests serious inconvenience general public appeals made many parts country city councils boards trade chambers commerce labor organizations urging steps taken terminate strike everything could propriety done representative government done without avail weeks public stood suffered without recourse kind machinery existed authority compulsory investigation dispute public would placed possession merits controversy public opinion would probably brought prompt adjustment successive step creating machinery adjustment labor difficulties must taken caution endeavor make progress direction provisions act 1898 creating chairman interstate commerce commission commissioner labor board mediation controversies interstate railroads employees first time subjected serious tests within past year wisdom experiment fully demonstrated creation board compulsory investigation cases mediation fails arbitration rejected next logical step progressive program certain time come constant increase absolutely perhaps relatively among citizens dwell cities towns size work wages means need consider problems inseparable great industrial civilization immense complex business especially branches relating manufacture transportation transacted large number capitalists employ much larger number former tend combine corporations latter unions relations capitalist one another general public always easy adjust put keep satisfactory basis one important one delicate tasks whole civilization much work accomplishment end must done individuals concerned whether singly combination one fundamental fact must never lost track character average man whether man means man works hands important factor solving problem aright almost equally important remember without good laws also impossible reach proper solution idle hold without good laws evils child labor women failure protect employees loss life limb effectively reached evils rebates reached without good laws fail stop practices legislation means force honest men otherwise dishonest surely take advantage everything way states correct evils well good nation must stand ready aid question growing rapid complex industrial development important employment women children presence women industry reacts extreme directness upon character home upon family life conditions surrounding employment children bear vital relation future citizenship legislation areas control congress much behind legislation progressive states thorough comprehensive measure adopted session congress relating employment women children district columbia territories investigation condition women children recently authorized directed congress carried various states recommend appropriation made last year beginning work renewed order may thorough comprehensive investigation subject demands national government ultimate resort control child labor use interstate commerce clause prevent products child labor entering interstate commerce using ought certainly enact model laws subject territories immediate control one fundamental proposition laid regards matters namely honesty solve problem yet insistence upon honesty merely technical honesty honesty purpose spirit essential element arriving right conclusion vice cruder archaic forms shocks everybody urgent need public opinion severe condemnation vice hides behind class professional loyalty denies vice escape conviction courts public representatives public high officials whether bench executive legislative positions need remember often dangerous criminals far life nation concerned commit crimes known condemned popular conscience centuries commit crimes rendered possible complex conditions modern industrial life makes particle difference whether crimes committed capitalist laborer leading banker manufacturer railroad man leading representative labor union swindling stocks corrupting legislatures making fortunes inflation securities wrecking railroads destroying competitors rebates forms wrongdoing capitalist far infamous ordinary form embezzlement forgery yet matter extreme difficulty secure punishment man guilty responsible business man condones conduct stands level labor man deliberately supports corrupt demagogue agitator whether head union head municipality said stood union members business community educators clergymen condone encourage first kind wrongdoing dangerous community morally even worse labor men guilty second type wrongdoing less pardoned excuse furnished either ignorance dire need department agriculture founded much sneering usefulness department government however emphatically vindicated usefulness none save department comes continually intimately touch people two citizens whose welfare aggregate vital welfare nation therefore welfare citizens manual labor tiller soil farmer course kinds labor work must purely mental kinds labor existing conditions little demand indeed made upon mind though glad say proportion men engaged kind work diminishing community solid healthy qualities make really great nation bulk people work calls exercise body mind progress permanently exist abandonment physical labor development physical labor shall represent work trained mind trained body school system gravely defective far puts premium upon mere literary training tends therefore train boy away farm workshop nothing needed best type industrial school school mechanical industries city school practically teaching agriculture country calling skilled tiller soil calling skilled mechanic alike recognized professions emphatically callings lawyer doctor merchant clerk schools recognize fact equally recognized popular opinion young man farsightedness courage recognize get idea makes difference whether earns called salary wages refuses enter crowded field professions takes constructive industry instead reasonably sure ample reward earnings health opportunity marry early establish home fair amount freedom worry one prime objects put farmer mechanic higher plane efficiency reward increase effectiveness economic world therefore dignity remuneration power positions social world growth cities growth wealth make loss either number character farming population united states realize almost peoples began existence nation farmers every great crisis past peculiar dependence placed upon farming population dependence hitherto justified justified future agriculture permitted sink scale compared employments afford lose preeminently typical american farmer owns farm place taken either class small peasant proprietors class great landlords estates would veritable calamity growth cities good thing far mean growth expense country farmer must welcome rise physical sciences application agricultural practices must render country conditions easy pleasant forces tend bring results yet infancy national government department agriculture joining state governments independent associations farmers encourage growth open farming country institutional social movements meet demand best type farmers improvement farms betterment life department agriculture many places perhaps especially certain districts south accomplished extraordinary amount cooperating teaching farmers associations soil increase income managing farms better hitherto managed farmer must lose independence initiative rugged yet must learn work heartiest cooperation fellows exactly business man learned work must prepare use constantly better advantage knowledge obtained agricultural colleges must insist upon practical curriculum schools children taught department agriculture department commerce labor deal fundamental needs people production raw material manufacture distribution therefore welfare produce raw state manufacture distribute department commerce labor recently founded already justified existence department agriculture yields government practical benefits produces proportion public money expended must continue future deal growing crops dealt past must still extend field usefulness hereafter dealing live men study treatment problems farm life alike industrial economic social standpoint farmers must cooperate one another government government best give aid associations farmers deliver farmer large body agricultural knowledge accumulated national state governments agricultural colleges schools grain producing industry country one important united states deserves special consideration hands congress grain sold almost exclusively grades secure satisfactory results home markets facilitate trade abroad grades approximate highest degree uniformity certainty present diverse methods inspection grading throughout country different laws boards result confusion lack uniformity destroying confidence necessary healthful trade complaints present methods continued years growing volume intensity country abroad therefore suggest congress advisability national system inspection grading grain entering interstate foreign commerce remedy present evils conservation natural resources proper use constitute fundamental problem underlies almost every problem national life must maintain civilization adequate material basis without civilization exist must show foresight must look ahead nation enjoy wonderful measure present prosperity prosperity used aright earnest future success nation reward foresight nation great easily foretold must look ahead must realization fact waste destroy natural resources skin exhaust land instead using increase usefulness result undermining days children prosperity ought right hand amplified developed last years several agencies government endeavoring get people look ahead substitute planned orderly development resources place haphazard striving immediate profit great river systems developed national water highways mississippi tributaries standing first importance columbia second although many others importance pacific atlantic gulf slopes national government undertake work hope beginning made present congress greatest rivers mississippi receive especial attention great lakes mouth mississippi deep waterway deep waterways leading east west waterway would practically mean extension coast line heart country would incalculable benefit people begun carried time appreciably relieve congestion great lines railroads work systematically continuously carried forward accordance plan main streams improved highest point efficiency improvement branches attempted work kept free every faint recklessness jobbery inland waterways lie back whole eastern southern coasts likewise developed moreover development waterways involves many important water problems considered part general scheme government dams used produce hundreds thousands horsepower incident improving navigation annual value unused united states perhaps exceeds annual value products mines incident creating deep waterways mississippi government build along whole lower length levees taken together control headwaters forever put complete stop threat floods immensely fertile delta region territory lying adjacent mississippi along lower course thereby become one prosperous populous already one fertile farming regions world appointed inland waterways commission study outline comprehensive scheme development along lines indicated later shall lay report congress irrigation far extensively developed present states great plains rocky mountains many others instance large portions south atlantic gulf states go hand hand reclamation swamp land federal government seriously devote task realizing utilization waterways forestry irrigation reclamation lands threatened overflow interdependent parts problem work reclamation service developing larger opportunities western half country irrigation important almost movement constant purpose government connection reclamation service use water resources public lands ultimate greatest good greatest number words put upon land permanent use develop children children children course opposition work opposition interested men desire exhaust land immediate profit without regard welfare next generation opposition honest men fully understand subject look far enough ahead opposition think dying away people understanding would utterly wrong allow individuals exhaust temporary personal profit resources ought developed use conserved permanent common advantage people whole effort government deal public land based upon principle reclamation service land law system designed meet needs fertile regions middle west largely broken applied dryer regions great plains mountains much pacific slope farm 160 acres inadequate regions system lent fraud much land passed hands government without passing hands department interior department justice joined prosecuting offenders law accomplished much administration law defective changed laws defective three years ago public lands commission appointed scrutinize law defects recommend remedy examination specifically showed existence great fraud upon public domain recommendations changes law made design conserving natural resources every part public lands putting best use especial attention called prevention settlement passage great areas public land hands men enormous waste caused unrestricted grazing upon open range recommendations public lands commission sound especially interest actual homemaker small present utilize land provide government shall keep control may monopolized men congress yet acted upon recommendations proper essential national welfare feel confident congress take time consider ultimately adopted legislation proposed essential order preserve great stretches public grazing land unfit cultivation present methods valuable forage supply stretches amount acres open free grazing cattle sheep horses goats without restriction system lack system means range much used wasted abuse west settles range becomes much used advantage unless fenced fencing way keep check owners nomad flocks roam hither thither utterly destroying pastures leaving waste behind presence incompatible presence existing fences illegal represent improper exclusion actual settlers actual territory usurped great cattle companies represent proper effort use range upon land prevent use nomadic outsiders fences hurtful beneficial alike illegal must come outrage law necessitate action part administration unlawful fencing public lands private grazing must stopped necessity occasioned must provided federal government control range whether permit lease local necessities may determine control could secure great benefit legitimate fencing time securing promoting settlement country places may tracts range adjacent homesteads actual settlers allotted severally common summer grazing stock elsewhere may lease system would serve purpose leases temporary subject rights settlement amount charged large enough merely permit efficient beneficial control range government payment county equivalent would otherwise receive taxes destruction public range continue laws enacted fully prevent fraud public lands joint action interior department department justice endeavoring prevent must legislation especially sufficient appropriation permit department interior examine certain classes entries ground pass private ownership government part title actual care make home prime object secure rights guard interests small ranchman man plows pitches hay small ranchman actual settler homemaker long run hurt permitting thefts public land whatever form optimism good characteristic carried excess becomes foolishness prone speak resources country inexhaustible mineral wealth country coal iron oil gas like reproduce therefore certain exhausted ultimately wastefulness dealing means descendants feel exhaustion generation two otherwise would certain forms waste could entirely stopped waste soil washing instance among dangerous wastes progress united states easily preventable present enormous loss fertility entirely unnecessary preservation replacement forests one important means preventing loss made beginning forest preservation beginning present lumbering fourth greatest industry united states yet rapid rate exhaustion timber united states past rapidly remainder exhausted country unquestionably verge timber famine felt every household land already rise price lumber certain rapid heavier rise future present annual consumption lumber certainly three times great annual growth consumption growth continue unchanged practically lumber exhausted another generation long limit complete exhaustion reached growing scarcity make felt many blighting ways upon national welfare 20 per cent forested territory reserved national forests include valuable timber lauds event proportion small expect reserves accomplish mitigation trouble ahead nation far drastic action needed forests lumbered give public full use mercantile timber without slightest detriment forest detriment farm furnish harvest parallel forests mines completely used exhaustion forests used forests used past still used either wholly destroyed damaged many decades pass effective use made facts obvious extraordinary necessary repeat every business man land every writer newspapers every man woman ordinary school education ought able see immense quantities timber used country forests supply timber rapidly exhausted change takes place exhaustion come comparatively soon effects felt severely life people surely facts obvious delay taking preventive measures yet seem nation willing proceed matter indifference even immediate future attitude permits persons weigh ultimate interest people persons find immense pecuniary benefit destroy forests lumbering blamed thus sacrificing future nation whole moment heavier blame attaches people large permitting action whether white mountains southern alleghenies rockies sierras big lumbering company impatient immediate returns caring look far enough ahead often deliberately destroy good timber region hoping afterwards move new country shiftless man small means care become actual would like immediate profit find advantage take timber land simply turn big company leave valueless future settlers big mine owner anxious develop mine moment care cut timber wishes without regard future probably net looking ahead condition country forests exhausted condition mine worked blame men nearly much blame supine public opinion indifferent public opinion permits action go unchecked course check waste timber means must part public acceptance temporary restriction lavish use timber order prevent total loss use future plenty men public private life actually advocate continuance present system unchecked wasteful extravagance using argument fact check course mean interference ease comfort certain people get lumber less cost ought pay expense future generations persons actually demand present forest reserves thrown open destruction forsooth think thereby price lumber could put two three years attitude precisely like agitator protesting outlay money farmers manure taking care farms generally undoubtedly average farmer content absolutely ruin farm could two three years avoid spending money yet make good deal money savage would private affairs show reckless disregard future yet precisely reckless disregard future opponents forestry system endeavoring get people united states show trouble movement preservation forests gone nearly far enough begun soon enough fortunate thing however began acquire appalachian white mountain regions forest lands possible acquire use nation lands form national asset emphatically national rivers feed flow many states reach ocean tariff forest product grown country especial tariff wood pulp due notice change course given engaged business enable adjust new conditions repeal duty wood pulp possible accompanied agreement canada shall export duty canadian pulp wood eastern united states mineral fuels already passed hands large private owners west rapidly following obvious fuels conserved wasted would well protect people unjust extortionate prices far still done accomplished great oil fields indian territory action administration offers striking example good results policy judgment government right keep fee coal oil gas fields possession lease rights develop proper regulations else congress adopt method coal deposits sold limitations conserve public utilities right mine coal separated title soil regulations permit coal lands worked sufficient quantity several corporations present limitations absurd excessive serve useful purpose often render necessary either fraud close abandonment work getting coal work panama canal proceeding highly satisfactory manner march last john stevens chairman commission chief engineer resigned commission reorganized constituted follows lieut george goethals corps engineers army chairman chief engineer corps engineers army william sibert corps engineers army civil engineer rousseau navy blackburn gorgas army jackson smith commissioners change authority direction went effect april 1 without causing perceptible check progress work march total excavation culebra cut effort chiefly concentrated cubic yards april increased cubic yards considerable decrease output may june owing partly advent rainy season partly temporary trouble steam shovel men question wages trouble settled satisfactorily parties july total excavation advanced materially august grand total points canal prism steam shovels dredges exceeded previous united states records reaching cubic yards september record eclipsed total cubic yards removed amount cubic yards canal prism cubic yards accessory works results achieved rainy season rainfall august inches september inches finally october record eclipsed total excavation cubic yards truly extraordinary record especially view heavy rainfall inches fact experience last two rainy seasons demonstrates rains less serious obstacle progress hitherto supposed work locks dams gatun began actively march last advanced far thought masonry work locks begun within fifteen months order remove doubt satisfactory character foundations locks canal secretary war requested three eminent civil engineers special experience construction alfred noble frederic stearns john freeman visit isthmus make thorough personal investigations sites gentlemen went isthmus april means test pits dug purpose inspected proposed foundations also examined borings made report secretary war date may 2 1907 said found locks dimensions propesed rest upon rock character furnish safe stable foundation subsequent new borings conducted present commission fully confirmed verdict show locks rest rock entire length cross section dam method construction insure slip sloughing similar examination foundations locks dams pacific side progress believe locks made width 120 feet last winter bids requested received work canal construction contract none found satisfactory rejected unanimous opinion present commission work done better cheaply quickly government private contractors fully 80 per cent entire plant needed construction purchased contracted machine shops erected equipped making needed repairs plant many thousands employees secured effective organization perfected recruiting system operation capable furnishing labor used advantageously employees well sheltered well fed salaries paid satisfactory work going forward smoothly producing results far advance sanguine anticipations favorable conditions change method prosecuting work would unwise unjustifiable would inevitably disorganize existing conditions check progress increase cost lengthen time completing canal chief engineer professional associates firmly convinced 85 feet level lock canal constructing best could desired doubts point went isthmus plans developed direction doubts dispelled may decide upon changes detail construction advances hearty accord approving general plan believe provides canal adequate demands made upon superior every way sea level canal concur belief commend favorable consideration congress postal savings bank system recommended primary object encourage among people economy thrift use postal savings banks give opportunity husband resources particularly facilities hand depositing money savings banks viewed however experience past weeks evident advantages institution till timid depositors withdrawn savings time national banks trust companies savings banks individuals hoarded cash workingmen earnings money withheld kept hiding safe deposit box detriment prosperity agency postal savings banks money would restored channels trade mutual benefit capital labor commend congress consideration recommendation extension parcel post especially rural routes rural routes serving nearly people advantages inhabitants cities obtaining supplies recommendations drawn benefit farmer country storekeeper otherwise favor believe good policy government everything possible aid small town country district desirable country merchant crushed postmasters convention passed strong resolution favor placing postmasters law administration already put effect policy refusing remove postmasters save reasons connected good service endeavoring far possible remove domain partisan politics would desirable thing put postmasters classified service possible might done without congressional action matter debatable earnestly recommend congress enact law providing included law put classified service oklahoma become state standing full equality elder sisters future assured great natural resources duty national government guard personal property rights indians within borders remains course unchanged reiterate recommendations last year regards alaska form local provided simple inexpensive possible impossible congress devote necessary time little details necessary alaskan legislation road building railway building encouraged governor alaska begiven ample appropriation wherewith organize force preserve public peace whisky selling natives made felony coal land laws changed meet peculiar needs territory attended present laws permit individuals locate large areas public domain speculative purposes immense amount trouble fraud litigation another judicial division established early possible lighthouses buoys established aids navigation especially prince william sound survey coast completed need liberal appropriations lighting buoying southern coast improving aids navigation southeastern alaska one great industries alaska puget sound columbia salmon fishing gradually reason lack proper laws industry ruined taken charge effectively protected united states government courage enterprise citizens projected exposition held 1909 receive liberal encouragement exposition sentimental conception seeks exploit natural resources alaska promote commerce trade industry pacific states neighboring states insular possessions neighboring countries pacific exposition asks loan congress seeks appropriations national exhibits exhibits western dependencies general government state washington city seattle shown characteristic western enterprise large donations conduct exposition states lending generous assistance unfortunate failure shipping bill last session last congress followed taking certain pacific steamships greatly hampered movement passengers hawaii mainland unless congress prepared positive encouragement secure proper facilities way shipping hawaii mainland coastwise shipping laws far relaxed prevent hawaii suffering suffering call attention capital importance every standpoint making pearl harbor available largest deep water vessels suitably fortifying islan secretary war gone philippines return shall submit report islands recommend rights citizenship conferred upon people porto rico bureau mines created control direction secretary interior bureau power collect statistics make investigations matters pertaining mining particularly accidents dangers industry done least additional appropriations given interior department used study mining conditions prevention fraudulent mining schemes carrying work mapping mining districts studying methods minimizing accidents dangers industry short aid proper ways development mining industry strongly recommend congress provide funds keeping hermitage home andrew jackson funds used existing hermitage association preservation historic building ever dear americans recommend naval monument established vicksburg national park national park gives unique opportunity commemorating deeds gallant men fought water less fought land great civil war legislation enacted present session congress thirteenth census establishment permanent census bureau affords opportunity better census ever order realize full advantage permanent organization ample time must given preparation constantly growing interest country question public health last public mind awake fact many diseases notably tuberculosis national scourges work state city boards health supplemented constantly increasing interest part national government congress already provided bureau public health provided hygienic laboratory valuable laws relating public health connected various departments whole branch government strengthened aided every way call attention two government commissions appointed already done excellent work first organization scientific work government grown wholly without plan consequence unwisely distributed among executive departments much effect lost lack proper coordination commission chief object introduce planned orderly development operation place often ineffective grouping methods work prevailed done without legislation would feasible deal detail complex administrative problem specific provisions law recommend president given authority concentrate related lines work reduce duplication executive order transfer consolidation lines work second committee department methods instructed investigate report upon changes needed place conduct executive force government economical effective basis light best modern business practice committee made satisfactory progress antiquated practices bureaucratic ways abolished general renovation departmental methods inaugurated done executive order already accomplished put effect near future work main committee several assistant committees produced wholesome awakening part great body officers employees engaged government work nearly every department office careful purpose remedying defects could made subject adverse criticism led individuals wider study work engaged study resulted increasing efficiency respective lines work recommendations special importance committee subject personnel classification salaries require legislative action put effect intention submit congress near future special message subjects form government voting merely right duty moreover fundamental necessary duty man good citizen well provide corporations shall contribute presidential national campaigns furthermore provide publication contributions expenditures however always danger laws kind nature difficult enforcement danger lest obeyed honest disobeyed unscrupulous act penalty upon honest men moreover law would hamper unscrupulous man unlimited means buying way office radical measure would believe work substantial improvement system conducting campaign although well aware take time people familiarize proposal willing consider adoption need collecting large campaign funds would vanish congress provided appropriation proper legitimate expenses great national parties appropriation ample enough meet necessity thorough organization machinery requires large expenditure money stipulation made party receiving campaign funds treasury accept fixed amount individual subscriber donor necessary publicity receipts expenditures could without difficulty provided national gallery art established capital city country important merely artistic material welfare country people congratulated fact movement establish gallery taking definite form guidance smithsonian institution far tariff works art brought country importation encouraged every way sufficient collections objects art government collections acquired scattered generally placed unsuitable imperfectly lighted galleries biological survey quietly working good agricultural interests excellent example government bureau conducts original scientific research findings much practical utility twenty years studied food habits birds mammals injurious beneficial agriculture horticulture forestry distributed illustrated bulletins subject labored secure legislative protection beneficial species cotton recently overspread cotton belt texas steadily extending range said annual loss biological survey ascertained gives wide publicity fact least 43 kinds birds prey upon destructive insect discovered 57 species birds feed upon dreaded enemies fruit grower shown woodpeckers class destroying larvae insects essential tree life doubtful forests could exist without shown cuckoos orioles natural enemies caterpillars destroy shade fruit trees quails sparrows consume annually hundreds tons seeds noxious weeds hawks owls class excepting kill poultry game birds markedly beneficial spending lives catching grasshoppers mice pests prey upon products husbandry conducted field experiments purpose devising perfecting simple methods holding check hordes destructive rodents rats mice rabbits gophers prairie dogs ground squirrels annually destroy crops worth many millions dollars published practical directions destruction wolves coyotes stock ranges west resulting past year estimated saving cattle sheep valued upwards million dollars inaugurated system inspection principal ports entry atlantic pacific coasts means introduction noxious mammals birds prevented thus keeping mongoose certain birds much dreaded previously introduced english sparrow house rats mice interest game protection cooperated local officials every state union striven promote uniform legislation several states rendered important service enforcing federal law regulating interstate traffic game shown bow game protection may made yield large revenue state revenue amounting case illinois single year biological survey explored faunas floras america reference distribution animals plants defined mapped natural life areas areas reason prevailing climatic conditions certain kinds animals plants occur pointed adaptability areas cultivation particular crops results investigations high educational value worth year progressive farmers country many times cost maintaining survey may added exceedingly small recommend congress bureau whose usefulness seriously handicapped lack funds granted appropriation degree commensurate importance work call especial attention unsatisfactory condition foreign mail service lack american steamship lines largely done foreign lines particularly far south central america concerned done manner constitutes serious barrier extension commerce time come judgment set work seriously make ocean mail service correspond closely recent commercial political development beginning made ocean mail act march 3 1891 even time act known inadequate various particulars since time events moved rapidly history acquired hawaii philippines lesser islands pacific steadily prosecuting great work uniting isthmus waters atlantic pacific greater extent seemed probable even dozen years ago may look american future sea worthy traditions past first step direction step feasible present time recommend extension ocean mail act 1891 act stood years free successful criticism principle purpose based theories obligations great maritime nation undisputed land followed nations since beginning steam navigation briefly theories duty power far practicable carry ocean mails flag fast ocean steamships crews required mail service valuable auxiliaries sea power nation furthermore construction steamships insures maintenance efficient condition shipyards battleships must built expenditure public money performance necessary functions government certainly warranted necessary dwell upon incidental benefits foreign commerce shipbuilding industry ship owning navigation accompany discharge urgent public duties though weight serious question whether time afford improve ocean mail service improved doubt subject removed reports department fiscal year ended june 30 1907 department estimates postage collected articles exchanged foreign countries canada mexico amounted net cost service exclusive cost transporting articles united states exchange united states mailed delivered words government united states assumed monopoly carrying mails people making profit rendering cheap inefficient service profit believe devoted strengthening maritime power directions best promote prestige country familiar facts maritime impotence harbors great friendly republics south america following failure shipbuilding bill lost american line steamers australasia loss pacific become serious embarrassment people hawaii wholly cut samoan islands regular communication pacific coast puget sound year lost half four seven american steamers trading orient pay act 1891 4 statute mile outward american mail steamships built according naval plans available cruisers manned americans steamships speed confined exclusively trade new york steamships 16 knots 2 mile paid steamships speed type needed meet requirements mail service south america asia including philippines australia strongly recommend therefore simple amendment ocean mail act 1891 shall authorize discretion enter contracts transportation mails republics south america asia philippines australia rate exceed 4 mile steamships 16 knots speed upwards subject restrictions obligations act 1891 profit mentioned fully cover maximum annual expenditure involved recommendation believed time establish lines urgently needed proposition involves new principle permits efficient discharge public functions inadequately performed performed never nation world wholly free evils militarism never large nation even china long period relatively numbers small regular army never time history nation suffered militarism remotest danger suffering militarism never time history regular army size caused slightest appreciable tax upon citizens nation almost always small size underpaid never entire history nation suffered least particular much care given army much prominence given much money spent upon large suffered enough care given small sufficient preparation advance possible war every foreign war engaged cost us many times amount wisely expended preceding years peace regular army would insured war ending fraction time fraction cost actually case nation always shortsighted providing efficiency army time peace nobody especial interest make provision one looks ahead war period matter remote serious possibility improper economy rather niggardliness practiced expense army certainty practicing called account therefor price paid unfortunate persons happen office war actually come think lack foresight troubles us hostility army course foolish people denounce care army navy militarism think people numerous country contend contend past many evils ample scope would work reform one evil exists ever existed country ever owing smallest part militarism declamation militarism serious place earnest intelligent movement righteousness country declamation worship baal astaroth declamation evil one never existed country slightest chance appearing glad help movement international peace sincerely believe duty help movements provided sane rational tendency toward militarism part needs cured evils fight connection industrialism militarism industry always necessary war sometimes necessary price industry united states exacts always exacted far heavier toll death wars put together statistics railroads country year ended june 30 1906 last contained annual statistical report interstate commerce commission show one year total casualties persons represent number persons killed wonderful hive human activity pittsburg deaths due industrial accidents 1906 919 result accidents mills mines railroads entire country therefore safe say deaths due industrial accidents aggregate neighborhood twenty thousand year record makes death rate foreign wars utterly trivial comparison number deaths battle foreign wars put together last century quarter aggregate considerably less one year death record industries mere glance figures sufficient show absurdity outcry militarism past little regular army rendered service literally vital country may time future standard efficiency instruction higher ever past small enough officers impossible secure enough enlisted men maintain peace fairly complete skeleton large army great war would fought volunteers months would pass large body efficient volunteers could put field regular army large enough meet immediate need particular essential possess number extra officers trained peace perform efficiently duties urgently required upon breaking war medical corps much larger needs regular army war yet present smaller needs service demand even peace spanish war occurred less ten years ago chief loss suffered disease among regiments never left country moment nation seemed deeply impressed fact yet seemingly already forgotten slightest effort made prepare medical corps sufficient size prevent repetition disaster much larger scale ever engaged serious conflict trouble spanish war existing officials war department representatives people whole preceding thirty years declined make necessary provision army unless ample provision made congress put medical corps put disaster next war inevitable responsibility lie charge war department decline make necessary provision well organized medical corps thoroughly trained advent war important administrative duties military sanitary corps essential efficiency large army especially large volunteer army knowledge medicine surgery possessed medical profession generally alone suffice make efficient military surgeon must addition knowledge administration sanitation large field hospitals camps order safeguard health lives men intrusted great numbers care bill long pending congress reorganization medical corps passage urgently needed medical department department increased provision made rate pay officers greatly increased higher type citizen american regular officer fair reward admirable work relatively even greater increase pay enlisted men especial provision made establishing grades equivalent warrant officers navy open enlisted men serve sufficiently long work well inducements offered sufficient encourage really good men make army life occupation prime needs present army secure retain competent noncommissioned officers difficulty rests fundamentally question pay noncommissioned officer correspond unskilled laborer corresponds best type skilled workman subordinate official civil institutions wages greatly increased outside occupations last forty years pay soldier like pay officers proportionately increased first sergeant company good man must one executive administrative ability knowledge trade worth far present pay true regimental sergeant major men men fully resolved make army life occupation able look forward ample reward men properly qualified given chance secure final rewards increase present pay need great lower grades first one two enlistments increase marked noncommissioned officers upper grades serve long enough make evident intend stay permanently army additional pay given high qualifications target practice position warrant officer established increase pay increase privileges allowances dignity make grade open noncommissioned officers capable filling desirably every standpoint rate desertion army time peace alarming deserter treated public opinion man guilty greatest crime hand man serves steadily army treated preeminently one best citizens republic twelve years service army belief man given preference according ability certain types office civilian applicants without examination also apply course men served twelve years navy special corps provided manual labor necessarily demanded privates among officers severe examinations weed unfit grade major position appointments solely selection understood man merely average capacity could never get beyond position major every man serves grade certain length time prior promotion next grade without getting promotion next grade forthwith retired practice marches field maneuvers last two three years invaluable army continued extended rigid perfunctory examination physical capacity provided higher grade officers work well unless officer good physique unless stand hardship ride well walk fairly fit position even become colonel become colonel need physical fitness officers almost great enlisted man hope speedily see introduced army far rigid thoroughgoing test horsemanship field officers present chief cavalry chief artillery perhaps important legislation needed benefit army law equalize increase pay officers enlisted men army navy marine corps service bill prepared hoped meet favorable consideration next essential measure authorize number extra officers mentioned make army attractive enlisted men absolutely essential create service corps exists nearly every modern army world skilled unskilled labor inseparably connected military administration exacted without compensation enlisted men voluntarily entered army service altogether different kind number laws necessary organize army promote efficiency facilitate rapid expansion time war important hoped hague conference might deal question limitation armaments even assembled informal inquiries developed regards naval armaments ones country interest hopeless try devise plan slightest possibility securing assent nations gathered hague plan even proposed would assent one first class power outside united states plan seemed feasible limiting size battleships met favor evident therefore folly nation base hope securing peace international agreement limitations armaments fact would unwise us stop upbuilding navy build one battleship best advanced type year would barely keep fleet present force enough judgment year provide four battleships idle build battleships unless addition providing men means thorough training provide auxiliaries unless provide docks coaling stations colliers supply ships need extremely deficient coaling stations docks pacific deficiency longer permitted exist plenty torpedo boats destroyers built atlantic pacific coasts fortifications best type provided greatest harbors need always remember time war navy used defend harbors cities perfect system coast fortifications efficient use navy offense way efficiently protect coast possible action foreign navy destroying foreign navy defense hostile fleet actually attacks coast cities must depend upon forts mines torpedoes submarines torpedo boats destroyers together efficient defensive purposes way supply place thoroughly efficient navy capable acting offensive parrying never yet fight hard hitting aggressive navy alone hard hitting offensive type forts like necessary navy may footloose time war sure demand pressure fright ships scattered defend kind ports penalty terrible disaster demand must refused ships must kept together objective made enemies fleet fortifications sufficiently strong modern navy venture attack long foe existence hostile navy anything like size efficiency unless exists navy fortifications powerless secure victory course mere deficiency means resolute enemy leisure combine forces upon one point certainty take battle fleet much larger present never split detachments far apart could event emergency speedily united coast line pacific much atlantic interests california oregon washington emphatically interests whole union maine new york louisiana texas battle fleet moved pacific times kept atlantic isthmian canal built transit battle fleet one ocean comparatively easy built earnestly hope battle fleet thus shifted two oceans every year two marksmanship ships improved phenomenally last five years within last two three years possible train battle fleet squadron maneuvers service conditions last two three years training conditions become really effective another necessary stride advance taken battle fleet starting straits magellan visit pacific coast sixteen battleships going command evans eight armored cruisers two battleships meet san francisco whither certain torpedo destroyers also going fleet size ever made voyage great educational use engaged way teach officers men handle fleet meet every possible strain emergency time war practice similar conditions time peace moreover way find actual needs perform time peace whatever maneuvers might necessary time war war declared late find needs means invite disaster trip pacific show needs enable us provide proper place officer learn duty sea way navy ever made efficient practice sea conditions would met war existed bespeak liberal treatment officers enlisted men navy true likewise officers enlisted men army form body whose interests close heart every good american return rigid performance duty exacted reward ample best nothing less best tolerated idle hope best results men senior grades come grades late life serve short time rank promotion navy seniority subject however rigid tests would eliminate unfit grade come grade command rank unfit eliminated manner conspicuously fit would remain sea service principal test fitness passed certain length service respective grades retired given number men may well almost would make good lieutenants good minority fit captains three four admirals object promotion otherwise mere seniority reflect upon elementary fact business private life could successfully managed enter lowest rungs ladder turn lived become head firm active director retire held position months face scheme absurdity chances improper favoritism minimized properly formed board board last june conscientious excellent work elimination ought done done least let beginning made last three annual messages special message last congress necessity legislation officers line navy reach grades captain less advanced ages sea training experience highly responsible duties grades may become thoroughly skillful handling battleships divisions squadrons fleets action fully explained urgently recommended upon subject secretary navy submitted detailed definite recommendations received approval enacted law accomplish immediately necessary compared existing law make saving five millions dollars next seven years navy personnel act 1899 accomplished expected providing satisfactory periods service several subordinate grades grade ensign grade law inadequate upper grades continue inadequate account expansion personnel since enactment attention invited following quotations report personnel board 1906 assistant secretary navy president congress authorized considerable increase number midshipmen naval academy midshipmen upon graduation promoted ensign lieutenant provision made corresponding increase upper grades result lower grades become congested midshipman one lowest classes annapolis may possibly promoted lieutenant 45 50 years age continue present law congesting top congesting bottom country fails get officers service best providing opportunity normal development training board believes works serious detriment efficiency navy real menace public safety stated special message last congress firmly opinion unless present conditions higher commissioned personnel rectified judicious legislation future navy gravely compromised also urgently necessary increase efficiency medical corps navy special legislation end already proposed trust may enacted without delay must remembered everything done navy fit well time war must done time peace modern wars short last length time requisite build battleship takes longer train officers men well battleship takes build nothing effective done navy war begun result war combatants otherwise equally matched depend upon power prepared best time peace united states navy best guaranty nation honor interest neglected addition offers far best insurance peace human ingenuity devised call attention report official board visitors naval academy annapolis forwarded congress report contains paragraph revision made courses study methods conducting marking examinations develop bring average ability midshipman rather give prominence one particular study fact kept mind naval academy university school primary object educate boys efficient naval officers changes curriculum therefore direction making course instruction less theoretical practical portion future class graduated advance full four years course circumstances standard instruction lowered academy almost departments magnificently equipped would unwise make course instruction less exacting acting upon suggestion designated three seagoing officers capt richard wainwright commander robert griffin lieut commander albert key graduates academy investigate conditions recommend best method carrying effect general recommendation officers performed duty promptly intelligently personal direction capt charles badger superintendent academy proposed changes deemed present advisable put effect beginning academic year october 1 last results confident beneficial academy midshipmen navy foreign affairs country steady policy behave toward nations strong man behave toward men brought contact words aim disinterestedly help nations help wisely given without appearance meddling concern us careful act good neighbor time fashion make evident intend imposed upon second international peace conference convened hague 15th june last remained session 18th october first time representatives practically civilized countries world united temperate kindly discussion methods causes war might narrowed injurious effects reduced although agreements reached conference direction go length hoped sanguine yet many directions important steps taken upon every subject programme full considerate discussion justify belief substantial progress made toward agreements future thirteen conventions agreed upon embodying definite conclusions reached resolutions adopted marking progress made matters upon agreement yet sufficiently complete make conventions practicable delegates united states instructed favor agreement obligatory arbitration establishment permanent court arbitration proceed judicially hearing decision international causes prohibition force collection contract debts alleged due governments citizens countries arbitration justice amount debt time manner payment immunity private property sea better definition rights neutrals case measure end introduced limitation armaments field peaceful disposal international differences several important advances made first obligatory arbitration although conference failed secure unanimous agreement upon details convention obligatory arbitration resolve follows unanimous 1 accepting principle obligatory arbitration 2 declaring certain differences notably relating interpretation application international conventional stipulations susceptible submitted obligatory arbitration without restriction view fact result discussion vote upon definite treaty obligatory arbitration proposed stood 32 favor 9 adoption treaty little doubt great majority countries world reached point ready apply practically principles thus unanimously agreed upon conference second advance great one agreement relates use force collection contract debts attention invited paragraphs upon subject message december 1906 resolution third american conference rio summer 1906 convention upon subject adopted conference substantially proposed american delegates follows order avoid nations armed conflicts purely pecuniary origin arising contractual debts claimed government one country government another country due nationals signatory powers agree recourse armed force collection contractual debts however stipulation shall applicable debtor state refuses leaves unanswered offer arbitrate case acceptance makes impossible formulate terms submission arbitration fails comply award rendered agreed arbitration contemplated shall conformity procedure chapter iii convention pacific settlement international disputes adopted hague shall determine far shall agreement parties justice amount debt time mode payment thereof provision would prevented much injustice extortion past doubt effect future salutary third advance made amending perfecting convention 1899 voluntary settlement international disputes particularly extension parts convention relate commissions inquiry existence provisions enabled governments great britain russia avoid war notwithstanding great public excitement time dogger bank incident new convention agreed upon conference gives practical effect experience gained inquiry substantial progress also made towards creation permanent judicial tribunal determination international causes full discussion proposal court general agreement finally reached favor creation conference recommended signatory powers adoption draft upon agreed organization court leaving determined method judges selected remaining unsettled question plainly one time good temper solve agreement first importance creation international prize court constitution organization procedure tribunal provided detail anyone recalls injustices country suffered neutral power early part last century fail see provision international prize court great advance world making towards substitution rule reason justice place simple force international prize court means protecting interests neutrals step towards creation general court hearing international controversies reference made organization action prize court fail accustom different countries submission international questions decision international tribunal may confidently expect results submission bring general agreement upon enlargement practice numerous provisions adopted reducing evil effects war defining rights duties neutrals conference also provided holding third conference within period similar elapsed first second conferences delegates united states worthily represented spirit american people maintained fidelity ability policy government upon great questions discussed conference report delegation together authenticated copies conventions signed received laid senate consideration remember difficult one legislative bodies composed citizens country speaking language living laws customs reach agreement even secure majority upon difficult important subject proposed legislation becomes plain representatives different countries speaking many different languages accustomed different methods procedure widely diverse interests discussed many different subjects reached agreements upon many entitled grateful appreciation wisdom patience moderation discharged duty example temperate discussion agreements efforts agree among representatives nations earth acting universal recognition supreme obligation promote peace fail powerful influence good future international relations year ago consequence revolutionary movement cuba threatened immediate return chaos island united states intervened sending army establishing provisional government governor magoon absolute quiet prosperity returned island action taking steps provide elections island expectation within coming year able turn island government chosen people thereof cuba doors possible nation permit cuba sink condition rescued ask cuban people prosperous govern bring content order progress island queen antilles interference help achieve results invitation extended japan government people united states participate great national exposition held tokyo april 1 october 31 1912 principal countries world invited take part occasion special interest nations world peculiarly us first instance great national exposition held great power dwelling pacific nations europe america trust join helping success first great exposition ever held great nation asia geographical relations japan united states possessors large portions coasts pacific intimate trade relations already existing two countries warm friendship maintained without break since opening japan intercourse western nations increasing wealth production regard hearty goodwill wish make occasion mutually beneficial commerce unite making eminently desirable invitation accepted heartily recommend legislation provide generous fashion representation government people proposed exposition action taken apt underestimate time necessary preparation cases invitation french exposition 1900 brought attention congress president cleveland december 1895 many delays necessary proceedings period font years half intervened exposition proved none long proper preparation exhibits adoption new tariff germany accompanied conventions reciprocal tariff concessions country countries continental europe led german government notice necessary terminate reciprocal commercial agreement country proclaimed july 13 1900 notice take effect 1st march 1906 default arrangements would left exports united states germany subject general german tariff duties 25 50 per cent higher conventional duties imposed upon goods competitors german trade special agreement made two governments february 1906 german government postponed operation notice 30th june 1907 meantime deeming duty make every possible effort prevent tariff war united states germany arising misunderstanding either country conditions existing acting upon invitation german government sent berlin commission composed competent experts operation administration customs tariff departments treasury commerce labor commission engaged several mouths conference similar commission appointed german government instructions far practicable reach common understanding facts regarding tariffs united states germany material relevant trade relations two countries commission reported upon basis report temporary commercial agreement entered two countries pursuant exercise authority conferred upon president third section tariff act july 24 1897 extended reduced tariff rates provided section champagne sparkling wines pursuant german conventional minimum tariff rates extended 96 per cent exports united states germany agreement remain force 30th june 1908 six months notice either party terminate agreement report commission based laid congress information careful examination tariff relations united states germany involved inquiry certain methods administration much complaint part german exporters inquiry became satisfied certain vicious unjustifiable practices grown customs administration notably practice determining values imports upon detective reports never disclosed persons whose interests affected use detectives though often necessary tends towards abuse carefully guarded practice found exist case abuse become gross discreditable instead seeking information market value merchandise respected members commercial community country production secret statements obtained informers discharged employees business rivals upon kind secret evidence values imported goods frequently raised heavy penalties frequently imposed upon importers never permitted know evidence never opportunity meet quite probable system tended towards increase duties collected upon imported goods conceive violation law exact duties law provides violation admit goods upon payment less legal rate duty practice repugnant spirit american law american sense justice judgment competent experts treasury department department commerce labor wholly unnecessary due collection customs revenues attempt defend merely illustrates demoralization naturally follows long continued course reliance upon methods accordingly caused regulations governing branch customs service modified values determined upon hearing parties interested opportunity heard know evidence moreover treasury agents accredited government country seek information germany receive assistance chambers commerce determining actual market value goods accordance advised true construction law changes regulations adapted removal manifest abuses felt ought confined relations germany extended operation countries expressed desire enter similar administrative relations ask authority reform agreement china indemnity 1900 fixed remitting cancelling obligation china payment part stipulated indemnity excess sum eleven million six hundred thousand four hundred dollars cents interest four per cent rescue foreign legations peking boxer troubles 1900 powers required china payment equitable indemnities several nations final protocol troops withdrawn signed peking september 7 1901 fixed amount indemnity allotted united states china paid including 1st day june last little first intention government proper time claims presented expenses ascertained fully possible revise estimates account proof sincere friendship china voluntarily release country legal liability payments excess sum prove necessary actual indemnity united states citizens nation help every practicable way education chinese people vast populous empire china may gradually adapt modern conditions one way promoting coming chinese students country making attractive take courses universities higher educational institutions educators far possible take concerted action toward end courteous invitation president mexico secretary state visited country september october received everywhere greatest kindness hospitality carried government united states southern neighbor message respect good desire better acquaintance increasing friendship response government people mexico hearty sincere pains spared manifest friendly attitude feeling toward united states view close neighborhood two countries relations exist mexico united states gratification common boundary miles gulf mexico pacific much marked shifting waters rio grande many thousands mexicans residing upon side line estimated americans resident mexican territory american investments mexico amount seven hundred million dollars extraordinary industrial commercial prosperity mexico greatly promoted american enterprise americans sharing largely results foreign trade republic already exceeds per annum exports imports exchanged united states circumstances numerous questions necessarily arise two countries questions always approached disposed spirit mutual courtesy fair dealing americans carrying business mexico testify uniformly kindness consideration treated sense security property enterprises wise administration great statesman long held office chief magistrate republic two governments uniting efforts considerable time past aid central america attaining degree peace order made possible prosperity northern ports continent peace guatemala honduras salvador celebrated circumstances described last message new war broke republics nicaragua honduras salvador effort compose new difficulty resulted acceptance joint suggestion presidents mexico united states general peace conference countries central america 17th day september last protocol signed representatives five central american countries accredited government agreeing upon conference held city washington order devise means preserving good relations among said republics bringing permanent peace countries protocol includes expression wish presidents united states mexico appoint representatives lend good impartial offices purely friendly way toward realization objects conference conference session best wishes practicable friendly assistance one results pan american conference rio janeiro summer 1906 great increase activity usefulness international bureau american republics institution includes american republics membership brings representatives together really valuable work informing people united states republics making united states known action limited appropriations determined work much smaller scale rendering much less valuable service recommend contribution government expenses bureau made commensurate increased work
nation great resource think truthfully say citizen nation possess great energy industrial ability nation fundamental business condition sounder moment foolish case people hoard money instead keep sound bank hoard immediate occasion money stringency moreover rule business people conduct honesty probity applies alike farm factory railroad bank legitimate commercial enterprise large body men however certain dishonest condition men prosper commit misdeed impunity example evil thing community men business men great sagacity temperament unscrupulous reckless condition act without supervision control first without effective check public opinion delude many innocent people make investment embark kind business really unsound misdeed successfully dishonest men discover suffer come upon upon innocent men mislead painful awaken whenever occur naturally occur suffer apt forget longer defer painful would effort punish guilty wise proper endeavor far possible minimize distress mislead guilty yet possible refrain distress strive put end misdeed ultimate cause suffer mean end possible punish responsible may honest difference opinion many governmental policy surely difference need unflinching perseverance war successful dishonesty message congress december 5 1905 say folly man mar general innocent folly pay part penalty incur guilty folly panic bring speculative folly part business community would hurt whole business community stoppage welfare though might severe would last long run one vital factor permanent prosperity country high individual character average american worker average american citizen matter whether work mental manual whether farmer business man professional man industrial social system interest men closely intertwine immense majority case man efficiency ingenuity industry benefit must also benefit others normally man great productive capacity become rich guide labor many men enable produce could produce without guidance share benefit come also public large superficial fact share may unequal must never blind u underlying fact share benefit come degree man concern normally wageworker man small mean average consumer well average producer alike help make condition man exceptional business ability receive exceptional reward ability something do legislation help general prosperity help permanently beneficial character give less able less fortunate save result policy shall inure advantage industrious efficient people act decently another way say benefit come less able less fortunate must necessity come even able fortunate therefore less fortunate man move envy fortunate brother strike condition though unequally prosper result assuredly damage may come one struck visit even heavy load one strike blow take whole must go go together yet merely admit insist upon also true governmental restraint supervision exceptional men use energy way common good way tell common good fortune amass corporate organization large vest power wield make matter necessity give sovereign government represent people whole effective power supervision corporate use order insure healthy social industrial life every big corporation hold responsible accountable sovereign strong enough control conduct sense hostile corporation age combination effort prevent combination useless end vicious contempt law failure enforce law inevitably produce moreover recognize cordial ample fashion immense good effect corporate agency country wealth intellect energy fidelity devote service therefore normally service public officer director corporation come stay trade union come stay do great good favor long good sharply checked act law justice maker national constitution provide especially regulation interstate commerce come within sphere general government argument favor take stand even overwhelm far strong view enormous development great business agency usually corporate form experience show conclusively useless try get adequate regulation supervision great corporation state action regulation supervision effectively exercise sovereign whose jurisdiction coextensive field work corporation national government believe regulation supervision obtain enactment law congress steady aim legislation cautiously carefully undertaken resolutely persevere assert sovereignty national government affirmative action form innovation substance merely restoration early time regulation industrial activity recognize action lawmaking body propose meet change condition manner prevent commonwealth abdicate power always possess country also england since country become separate nation misfortune national law subject hitherto negative prohibitive rather affirmative kind still part seek prohibit could effectively prohibit part prohibition confound allow allow generally useless try prohibit restraint competition whether restraint reasonable unreasonable useless generally hurtful successful prosecution one device evade law immediately develop another device accomplish purpose need sweeping prohibition every arrangement good bad may tend restrict competition adequate supervision regulation prevent restriction competition detriment public well supervision regulation prevent abuse way connect restriction competition call attention quotation already say satisfied duty national government embody action principle thus express small part trouble come carry extreme national virtue independence initiative action wise conserve virtue provide full exercise compatible see liberty become liberty wrong others unfortunately kind liberty lack effective regulation inevitably breed founder constitution provide national government complete sole control interstate commerce practically interstate business save conduct water national government proceed regulate thoroughgoing effective fashion condition wholly change interstate commerce water insignificant compare amount go land almost big business concern engage interstate commerce result partially imperfectly control regulate action one several state action inevitably tend either drastic else lax either case ineffective purpose justice national government thoroughgoing fashion exercise need control mean extension federal authority authority already exist constitution ample form mean extension federal activity advocate centralization merely look fact face realize centralization business already come avoided undone public large protect certain evil effect business centralization provide good method exercise control authority already centralize national government constitution must ball healthy constructive course action nation elect pursue steadily pursue last six year show legislation congress administration law department justice vital need connection railroad judgment either national incorporation act law license railway company engage interstate commerce upon certain condition law frame give interstate commerce commission power pas upon future issue security ample mean provide enable commission whenever judgment necessary make physical valuation railroad state message congress year ago railroad give power enter agreement subject argreements make public minute detail consent interstate commerce commission first obtain national government assume proper control interstate commerce exercise authority already possess impossible either give get railroad full justice railroad great corporation well recognize control must come question governmental body wisely exercise court determine limit within federal authority exercise still remain ample work within state railway commission state national interstate commerce commission work harmony several state commission within province achieve desire end moreover judgment additional legislation look proper control great business concern engage interstate business control exercise benefit prosperity less protection investor general public repeatedly say message congress elsewhere experience definitely show merely unwisdom futility endeavor put stop business combination modern industrial condition combination necessary inevitable world business world labor idle desire put end corporation big combination capital desire put end combination labor corporation labor union alike come stay properly manage source good evil whenever either evil promptly hold account receive hearty encouragement long properly manage profoundly immoral put keep statute book law nominally interest public morality really put premium upon public immorality undertake forbid honest men must do modern business condition law provide infraction must condition precedent upon business success aim accomplishment much usually mean accomplishment little often positive damage message congress year ago speak antitrust law say actual work law show effort prohibit combination good bad noxious ineffective combination capital like combination labor necessary element present industrial system possible completely prevent possible complete prevention would damage body politic need vainly try prevent combination secure rigorous adequate control supervision combination prevent injure public exist form inevitably threaten injury unfortunate present law forbid combination instead sharply discriminate combination evil often railroad would like combine purpose prevent big shipper maintain improper advantage expense small shipper general public combination instead forbidden law favor public evil statute book law incapable full enforcement judge jury realize full enforcement would destroy business country result make decent men violator law put premium behavior willful wrongdoer result turn tends throw decent man willful wrongdoer close association end drag clown former latter level man become lawbreaker one way unhappily tend lose respect law willing break many way scathing condemnation could visit upon law contain word interstate commerce commission comment upon fact numerous joint traffic association technically violate law say decision united state supreme court case joint traffic association case produce practical effect upon railway operation country association fact exist decision general effect justice party ought probably add difficult see interstate railway could operate due regard interest shipper railway without concerted action kind afford asociations mean law construe supreme court business country conduct without break elsewhere say substantially say surely ought necessary say shape way represent hostility corporation contrary mean frank recognition fact combination capital like combination labor natural result modern condition national development far ability lie endeavor prevent abuse power either favor long well aim national government quite much favor protect honest corporation honest business men wealth bring justice individual corporation represent dishonest method certainly relaxation government authority effort get great railroad wrecker man clever swindle device rob investor oppress injustice general public move interest honest railway operator honest corporation invest small saving stock bond wish assure represent money honestly expend legitimate business purpose confer upon national government power ask would check upon overcapitalization upon clever gambler benefit overcapitalization alone would mean increase value increase safety stock bond honestly manage railroad would render far easy market security believe proper publicity complaint investigation recently carry complain put blame belongs upon misdeed do darkness upon investigation bring light administration responsible turn light responsible light show ask full power give federal government single state legislation effectually cope powerful corporation engage interstate commerce full justice exact return full justice others condition railroad activity condition immense interstate commerce make central government alone competent exercise full supervision control grave abuse individual case railroad management past represent wrong merely general public wrong honest corporation men wealth excite popular anger distrust nature case tend include sweep resentment good bad alike standpoint public earnestly say soon natural proper resentment arouse abuse becomes indiscriminate unthinking also become merely unwise unfair calculate defeat end feel view plenty dishonest work corporation past slight effort hunt punish every dishonest man bulk business honestly do natural indignation people feel dishonesty essential lose head get draw indiscriminate raid upon corporation people wealth whether well wild movement good come come never come contrary sure way invite reaction follow lead either demagogue visionary sweeping assault upon property value upon public confidence would work incalculable damage business world would produce distrust agitator revulsion distrust would extend honest men sincere fashion try remedy evils antitrust law repeal make efficient harmony actual condition amend forbid kind combination harm general public amendment accompany incident grant supervisory power government big concern engage interstate business accompany provision compulsory publication account subjection book paper inspection government official begin already make supervision establishment bureau corporation antitrust law prohibit combination injustice public still less existence whole benefit public even feature law abolish would remain equally objectionable feature difficulty delay incident enforcement government must submit irksome repeat delay obtain final decision court upon proceeding institute even favorable decree may mean empty victory moreover attempt control corporation lawsuit mean impose upon department justice court impossible burden feasible carry limit number suit law really effective must course administer executive body merely mean lawsuit design prevent abuse incident creation unhealthy improper combination instead wait existence attempt destroy civil criminal proceeding combination tolerate abuse power acquire combination public detriment corporation association kind permit engage foreign interstate commerce form purpose whose operation create monopoly general control production sale distribution one prime necessity life article general use necessity combination public policy violate common law door court close party believe congress close channel interstate commerce protection law make prohibition permission clear definite possible leave least possible room arbitrary action allegation action part executive divergent interpretation court among point aim prohibition unhealthy competition render service actual loss purpose crush competition prevention inflation capital prohibition corporation make exclusive trade condition trade reasonable agreement combination corporation permit provided submit approved appropriate government body congress power charter corporation engage interstate foreign commerce general law enact provision exist corporation could take federal charter new federal corporation could create essential provision law method predetermine federal board commission whether applicant federal charter association combination within restriction federal law provision also make complete publicity matter affect public complete protection invest public shareholder matter issue corporate security incorporation law deem advisable license act big interstate corporation might enact combination two might try supervision establish might analogous exercised national bank least antitrust act supplement specific prohibition method experience show service enable monopolistic combination crush competition real owner corporation compel business name right hold stock corporation hereafter denied interstate corporation unless approval government official prerequisite approval listing government owner stockholder corporation own stock corporation stock own confer upon national government connection amendment advocate antitrust law power supervision big business concern engage interstate commerce would benefit benefited national bank recent business crisis noteworthy institution fail institution supervision control national government national control stand test national control kind advocate would benefit every railway standpoint public need additional track additional terminal improvement actual handle railroad rapidly possible ample safe speedy transportation facility even necessary cheap transportation therefore need investment money provide thing time secure far possible good wage short hour employee therefore must reasonable regulation rate first protest arbitrary unthinking movement cut without full careful consideration interest concern actual need situation special body men act national government authority confer upon congress competent pas judgment matter fear reason extension federal activity well study history national banking act law notably meat inspection law recently enact law oppose violently passage delay decade yet work unmixed immediate good meat inspection law even violently assail men denounce attitude national government seek oversee control working interstate common carrier business concern assert discredit ruin great american industry two year elapse already become evident great benefit law confers upon public accompany equal benefit reputable packing establishment latter well law without benefit interstate common carrier business concern legislation advocate would equally mark incidentally passage law action various state food dairy commissioner show striking fashion much good whole people result hearty cooperation federal state official secure give reform primarily action state commissioner owe enactment law arouse people first demand enactment enforcement state law subject enactment federal law without state law largely ineffective must closest cooperation national state government administer law message congress year ago speak follow currency especially call attention condition currency law act ably serve great purpose aid enormous business development country within ten year increase circulation per capita several year evidence accumulate additional legislation need recurrence crop season emphasize defect present law must soon revision leave mean incur liability business disaster since body adjourn fluctuation interest call money 2 per cent 30 percent fluctuation even great precede six month secretary treasury step wise action put stop violent period oscillation even bad fluctuation advance commercial rate uncertainty felt sufficiency credit even high rate commercial interest suffer crop period excessive rate call money new york attract money interior bank speculative field deplete fund would otherwise available commercial use commercial borrower force pay abnormal rate fall tax shape increase interest charge place whole commerce country mere statement fact show present system seriously defective need change unfortunately however many propose change must rule consideration complicate easy comprehension tend disturb exist right interest must also rule plan would materially impair value united state 2 per cent bond pledge secure circulation issue make condition peculiarly creditable treasury press especial plan various plan recently propose expert committee banker among plan possibly feasible certainly receive consideration repeatedly bring attention present secretary treasury essential feature approve many prominent banker business men accord plan national bank permit issue specify proportion capital note give kind issue tax high rate drive note back want legitimate trade plan would permit issue currency give bank additional profit meet emergency present time stringency say right system advance emphasize belief need adoption system shall automatic open sound bank avoid possibility discrimination favoritism plan would tend prevent spasm high money speculation obtain new york market present much currency certain season year accumulation new york tempts banker lend low rate speculative purpose whereas time crop move urgent need large temporary increase currency supply must never forget question concern business men generally quite much banker especially true stockman farmer business men west present certain season year difference interest rate east west 6 10 per cent whereas canada correspond difference 2 per cent plan must course guard interest western southern banker carefully guard interest new york chicago banker must draw standpoint farmer merchant less standpoint city banker country banker urge congress need immediate attention matter need great elasticity currency provide course recognize even great need safe secure currency must always rigid examination national authority provision make emergency currency emergency issue course make effective guaranty upon condition carefully prescribed government emergency issue must base adequate security approved government must issue heavy tax would permit currency issue demand urgent securing requirement demand fell worth investigate determine whether officer director national bank ever allow loan trust company subject supervision bank legislation effect enact district columbia territory yet must also remember even wise legislation subject accomplish certain amount legislation possibility guarantee business community result speculative folly guarantee individual result extravagance individual mortgage house buy automobile invite disaster wealthy men men pose unscrupulously foolishly eager become indulge reckless speculation especially accompany dishonesty jeopardize future future innocent expose whole business community panic distress income account nation satisfactory condition six fiscal year end 1st july last total expenditure revenue national government exclusive postal revenue expenditures round number revenue expenditure net excess income expenditure include latter fifty million expend panama canal one hundred ninety million dollar six year average million year represent approximation income outgo would hard improve satisfactory work present tariff law chiefly responsible excellent show nevertheless evident constantly grow feel among people time rapidly approach system revenue legislation must revise country definitely commit protective system effort uproot could widespread industrial disaster word principle present tariff law could wisdom changed country phenomenal growth probably well every dozen year tariff law carefully scrutinize see excessive improper benefit confer thereby proper revenue provide foreign trade encourage must always minimum tariff allow collection ample revenue least make good difference cost production abroad difference labor cost abroad must ever cardinal point american policy question approach purely business standpoint time manner change arouse minimum agitation disturbance business world give least play selfish factional motif sole consideration see sum total change represent public good mean subject wisdom deal year precede presidential election matter fact experience conclusively show time impossible get men treat standpoint public good judgment wise time deal matter immediately election tax law revise question income tax inheritance tax receive careful attention legislator judgment tax part system federal taxation speak diffidently income tax one scheme income tax declare unconstitutional supreme court addition difficult tax administer practical work great care would exercise see evaded men desirable taxed evade would course worse tax least desirable tax tax bear heavily upon honest compare dishonest man nevertheless graduate income tax proper type would desirable feature federal taxation hop one may devise supreme court declare constitutional inheritance tax however far well method taxation far important purpose fortune country bear proportion increase size corresponding increase burden taxation government absolute right decide term upon man shall receive bequest devise another point devolution property especially appropriate imposition tax law impose tax repeatedly place upon national statute book repeatedly declare constitutional court law contain progressive principle certain amount reach bequest gift life death increasingly burden rate taxation increase proportion remoteness blood man receive bequest principle recognize already lead civilize nation world great britain estate worth less practically exempt death duty increase estate exceeds five million dollar value pass distant kinsman stranger blood government receives tell amount equivalent nearly fifth whole estate france much inheritance exceeds pay fifth state pass distant relative german law especially interesting u make inheritance tax imperial measure allot individual state empire portion proceeds permit impose tax addition impose imperial government small inheritance exempt tax sharply progressive inheritance still large provide agricultural forest land tax rate 25 per cent go distant relative reason united state national government impose inheritance tax addition impose state last inheritance tax state levy tax concurrently national government make combine maximum rate case high 25 per cent french law one feature heartily commend progressive principle apply high rate impose excess amount subject next low rate increase rate apply certain amount certain maximum tax possible make bear heavily upon reside without country within heavy progressive tax upon large fortune way tax upon thrift industry like would small fortune advantage come either country whole individual inherit money permit transmission entirety enormous fortune would affect tax incident function revenue raise tax would help preserve measurable equality opportunity people generation grow manhood slight sympathy socialistic idea would try put laziness thriftlessness inefficiency par industry thrift efficiency would strive break merely private property far important home chief prop upon whole civilization stand theory ever adopt would mean ruin entire country ruin would bear heavy upon weak upon least able shift proposal legislation herein advocate directly oppose class socialistic theory aim recognize lincoln point fact respect men obviously equal also insist equality mutual respect equality right law least approximate equality condition man obtain chance show stuff compare fellow year ago loud complaint law could invoke wealthy offender complaint course department justice last year make evident man stand law corporation wealthy hold account department justice prompt proceed wealthy malefactor whose crime one greed cunning proceed agitator incite brutal violence everything do exist law exist state public opinion profoundly influence court jury do law need strengthen one important point make definite honest man lead unwittingly break real wrongdoer readily punish moreover must public opinion back law law avail present average juryman undoubtedly wish see trust break quite ready fine corporation reluctant find fact proven beyond reasonable doubt come send jail member business community indulging practice profoundly unhealthy unfortunately business community grow recognize normal present condition law present temper jury render task extreme difficulty get real wrongdoer case especially imprisonment yet every standpoint far preferable punish prime offender imprisonment rather fine corporation attendant damage stockholder two great evil execution criminal law sentimentality technicality latter remedy must come hand legislatures court lawyer must depend cure upon gradual growth sound public opinion shall insist regard law demand reason shall control influence emotion jury box evils must remove public discontent criminal law continue instance abuse grant injunction labor dispute continue occur resentment mind feel right invade liberty action speech unwarrantably restrain continue likewise grow much attack use process injunction wholly without warrant constrain express belief warrant question become one prime importance unless court deal effective manner certain ultimately demand form legislative action would unfortunate social welfare permit many honest citizen feel regard court hostility earnestly commend attention congress matter way may devise limit abuse injunction protect right time time unwarrantably invade moreover discontent often express use process injunction court labor dispute state law concerned refrain discussion question inform soon receive consideration supreme court federal court must course decide ultimately respective sphere state nation connection law state national must decide definitely finally matter affect individual citizen right wrong labor right wrong capital national government must always see decision court put effect process injunction essential adjunct court work well preventive measure always well remedial wise use process every standpoint commendable recklessly unnecessarily use abuse censure men properly anxious prevent effort shear court necessary power court decision must final protest conduct individual judge needlessly anticipate final decision tyrannical use nominally temporary injunction accomplish fact permanent decision loss life limb railroad accident country become appal subject national government take supervision might well begin provide federal inspection interstate railroad somewhat along line federal inspection steamboat although go far perhaps first would necessary would officer whose duty would investigate accident interstate railroad report detail cause thereof officer make business get close touch railroad operate men become thoroughly familiar every side question idea work along line present steamboat inspection law national government model employer demand high quality service employee care properly return congress adopt legislation provide limited definite compensation accident workman within scope federal power include employee navy yard arsenal word model employer liability act thoroughgoing enact apply position public private national government jurisdiction number accident include preventable become appalling mechanical manufacturing transportation operation day work grim hardship ordinary family effect accident fall solely upon hand whole class attorney exist incite men may may wrong undertake suit negligence matter fact suit negligence generally inadequate remedy person injure often cause altogether disproportionate annoyance employer law make payment accident employer would automatic instead matter lawsuit workman receive certain definite compensation accident industry irrespective negligence employer agent public responsibility profit serve public start motion agency create risk others take ordinary extraordinary risk involve risk thus moment assume ultimately assume ought general public way shock accident diffuse instead fall upon man woman least able bear case community large share burden well benefit industry propose law employer would gain desirable certainty obligation get rid litigation determine workman family would relieve crush load policy would come increase care accident would reduce number national law provide employer liability railroad engage interstate commerce safety appliance well diminish hour employee railroad permit work strengthen wherever actual practice show weakness keep statute book thoroughgoing form constitutionality employer liability act pass precede congress carry court two jurisdiction law declare unconstitutional three jurisdiction constitutionality affirm question carry supreme court case hear tribunal decision expect early date event court affirm constitutionality act urge legislation along line advocate message precede congress practice put entire burden loss life limb upon victim victim family form social injustice united state stand unenviable prominence federal state legislation exception scarcely go far repeal principle old law liability state even slight modification completely outgrown principle yet secure legislation rest industrial world stand strike contrast backwardness respect since 1895 practically every country europe together great britain new zealand australia british columbia cape good hope enact legislation embody one form another complete recognition principle place upon employer entire trade risk various line industry urge upon congress enactment law time bring federal legislation standard already establish european country serve stimulus various state perfect legislation regard congress consider extension law constitutionality present law recently call question supreme court decide exist legislation unquestionably within power congress principle day rapidly far practicable extended entire work carry government present law amend embrace contract public work present word act construe exclude general introduction day goal toward steadily tend government set example respect strike lockouts attendant loss suffering continue increase five year end december 31 1905 number strike great previous ten year double number precede five year figure indicate increase need provide machinery deal class disturbance interest alike employer employee general public renew previous recommendation congress favorably consider matter create machinery compulsory investigation industrial controversy sufficient magnitude sufficient concern people country whole warrant federal government take action need provision investigation forcibly illustrate past summer strike telegraph operator seriously interfere telegraphic communication cause great damage business interest serious inconvenience general public appeal make many part country city council board trade chamber commerce labor organization urge step take terminate strike everything could propriety do representative government do without avail week public stand suffer without recourse kind machinery exist authority compulsory investigation dispute public would place possession merit controversy public opinion would probably bring prompt adjustment successive step create machinery adjustment labor difficulty must take caution endeavor make progress direction provision act 1898 create chairman interstate commerce commission commissioner labor board mediation controversy interstate railroad employee first time subject serious test within past year wisdom experiment fully demonstrate creation board compulsory investigation case mediation fail arbitration reject next logical step progressive program certain time come constant increase absolutely perhaps relatively among citizen dwell city town size work wage mean need consider problem inseparable great industrial civilization immense complex business especially branch relate manufacture transportation transact large number capitalist employ much large number former tend combine corporation latter union relation capitalist one another general public always easy adjust put keep satisfactory basis one important one delicate task whole civilization much work accomplishment end must do individual concerned whether singly combination one fundamental fact must never lose track character average man whether man mean man work hand important factor solve problem aright almost equally important remember without good law also impossible reach proper solution idle hold without good law evils child labor woman failure protect employee loss life limb effectively reach evil rebate reach without good law fail stop practice legislation mean force honest men otherwise dishonest surely take advantage everything way state correct evils well good nation must stand ready aid question grow rapid complex industrial development important employment woman child presence woman industry react extreme directness upon character home upon family life condition surround employment child bear vital relation future citizenship legislation area control congress much behind legislation progressive state thorough comprehensive measure adopt session congress relate employment woman child district columbia territory investigation condition woman child recently authorize directed congress carry various state recommend appropriation make last year begin work renew order may thorough comprehensive investigation subject demand national government ultimate resort control child labor use interstate commerce clause prevent product child labor enter interstate commerce use ought certainly enact model law subject territory immediate control one fundamental proposition lay regard matter namely honesty solve problem yet insistence upon honesty merely technical honesty honesty purpose spirit essential element arrive right conclusion vice cruder archaic form shock everybody urgent need public opinion severe condemnation vice hide behind class professional loyalty denies vice escape conviction court public representative public high official whether bench executive legislative position need remember often dangerous criminal far life nation concern commit crime know condemn popular conscience century commit crime render possible complex condition modern industrial life make particle difference whether crime committed capitalist laborer lead banker manufacturer railroad man lead representative labor union swindle stock corrupt legislature make fortune inflation security wreck railroad destroy competitor rebate form wrongdoing capitalist far infamous ordinary form embezzlement forgery yet matter extreme difficulty secure punishment man guilty responsible business man condones conduct stand level labor man deliberately support corrupt demagogue agitator whether head union head municipality say stood union member business community educator clergymen condone encourage first kind wrongdoing dangerous community morally even bad labor men guilty second type wrongdoing less pardoned excuse furnish either ignorance dire need department agriculture found much sneer usefulness department government however emphatically vindicated usefulness none save department come continually intimately touch people two citizen whose welfare aggregate vital welfare nation therefore welfare citizen manual labor tiller soil farmer course kind labor work must purely mental kind labor exist condition little demand indeed make upon mind though glad say proportion men engage kind work diminish community solid healthy quality make really great nation bulk people work call exercise body mind progress permanently exist abandonment physical labor development physical labor shall represent work trained mind train body school system gravely defective far put premium upon mere literary training tend therefore train boy away farm workshop nothing need best type industrial school school mechanical industry city school practically teach agriculture country call skilled tiller soil call skilled mechanic alike recognize profession emphatically calling lawyer doctor merchant clerk school recognize fact equally recognize popular opinion young man farsightedness courage recognize get idea make difference whether earns call salary wage refuse enter crowd field profession take constructive industry instead reasonably sure ample reward earnings health opportunity marry early establish home fair amount freedom worry one prime object put farmer mechanic high plane efficiency reward increase effectiveness economic world therefore dignity remuneration power position social world growth city growth wealth make loss either number character farm population united state realize almost people begin existence nation farmer every great crisis past peculiar dependence place upon farm population dependence hitherto justify justified future agriculture permit sink scale compare employment afford lose preeminently typical american farmer own farm place take either class small peasant proprietor class great landlord estate would veritable calamity growth city good thing far mean growth expense country farmer must welcome rise physical science application agricultural practice must render country condition easy pleasant force tend bring result yet infancy national government department agriculture join state government independent association farmer encourage growth open farm country institutional social movement meet demand best type farmer improvement farm betterment life department agriculture many place perhaps especially certain district south accomplish extraordinary amount cooperate teach farmer association soil increase income manage farm well hitherto manage farmer must lose independence initiative rugged yet must learn work hearty cooperation fellows exactly business man learn work must prepare use constantly well advantage knowledge obtain agricultural college must insist upon practical curriculum school child teach department agriculture department commerce labor deal fundamental need people production raw material manufacture distribution therefore welfare produce raw state manufacture distribute department commerce labor recently found already justified existence department agriculture yield government practical benefit produce proportion public money expend must continue future deal grow crop dealt past must still extend field usefulness hereafter deal live men study treatment problem farm life alike industrial economic social standpoint farmer must cooperate one another government government best give aid association farmer deliver farmer large body agricultural knowledge accumulate national state government agricultural college school grain produce industry country one important united state deserve special consideration hand congress grain sell almost exclusively grades secure satisfactory result home market facilitate trade abroad grade approximate high degree uniformity certainty present diverse method inspection grade throughout country different law board result confusion lack uniformity destroy confidence necessary healthful trade complaint present method continue year grow volume intensity country abroad therefore suggest congress advisability national system inspection grade grain enter interstate foreign commerce remedy present evils conservation natural resource proper use constitute fundamental problem underlies almost every problem national life must maintain civilization adequate material basis without civilization exist must show foresight must look ahead nation enjoy wonderful measure present prosperity prosperity use aright earnest future success nation reward foresight nation great easily foretell must look ahead must realization fact waste destroy natural resource skin exhaust land instead use increase usefulness result undermining day child prosperity ought right hand amplify develop last year several agency government endeavor get people look ahead substitute plan orderly development resource place haphazard strive immediate profit great river system develop national water highway mississippi tributary stand first importance columbia second although many others importance pacific atlantic gulf slope national government undertake work hope begin make present congress great river mississippi receive especial attention great lake mouth mississippi deep waterway deep waterway lead east west waterway would practically mean extension coast line heart country would incalculable benefit people begin carried time appreciably relieve congestion great line railroad work systematically continuously carry forward accordance plan main stream improve high point efficiency improvement branch attempt work keep free every faint recklessness jobbery inland waterways lie back whole eastern southern coast likewise develop moreover development waterway involve many important water problem consider part general scheme government dam use produce hundred thousand horsepower incident improve navigation annual value unused united state perhaps exceed annual value product mine incident create deep waterway mississippi government build along whole low length levee take together control headwater forever put complete stop threat flood immensely fertile delta region territory lie adjacent mississippi along low course thereby become one prosperous populous already one fertile farm region world appoint inland waterways commission study outline comprehensive scheme development along line indicate later shall lay report congress irrigation far extensively developed present state great plain rocky mountain many others instance large portion south atlantic gulf state go hand hand reclamation swamp land federal government seriously devote task realize utilization waterway forestry irrigation reclamation land threaten overflow interdependent part problem work reclamation service develop large opportunity western half country irrigation important almost movement constant purpose government connection reclamation service use water resource public land ultimate great good great number word put upon land permanent use develop child child child course opposition work opposition interested men desire exhaust land immediate profit without regard welfare next generation opposition honest men fully understand subject look far enough ahead opposition think die away people understand would utterly wrong allow individual exhaust temporary personal profit resource ought develop use conserved permanent common advantage people whole effort government deal public land base upon principle reclamation service land law system design meet need fertile region middle west largely broken apply dryer region great plain mountain much pacific slope farm 160 acre inadequate region system lent fraud much land pass hands government without pass hand department interior department justice join prosecute offender law accomplish much administration law defective change law defective three year ago public land commission appoint scrutinize law defect recommend remedy examination specifically show existence great fraud upon public domain recommendation change law make design conserve natural resource every part public land put best use especial attention call prevention settlement passage great area public land hand men enormous waste cause unrestricted grazing upon open range recommendation public land commission sound especially interest actual homemaker small present utilize land provide government shall keep control may monopolize men congress yet act upon recommendation proper essential national welfare feel confident congress take time consider ultimately adopt legislation propose essential order preserve great stretch public graze land unfit cultivation present method valuable forage supply stretch amount acre open free graze cattle sheep horse goat without restriction system lack system mean range much use waste abuse west settle range becomes much use advantage unless fence fence way keep check owner nomad flock roam hither thither utterly destroy pasture leave waste behind presence incompatible presence exist fence illegal represent improper exclusion actual settler actual territory usurp great cattle company represent proper effort use range upon land prevent use nomadic outsider fence hurtful beneficial alike illegal must come outrage law necessitate action part administration unlawful fence public land private grazing must stop necessity occasion must provide federal government control range whether permit lease local necessity may determine control could secure great benefit legitimate fencing time secure promote settlement country place may tracts range adjacent homestead actual settler allot severally common summer graze stock elsewhere may lease system would serve purpose lease temporary subject right settlement amount charge large enough merely permit efficient beneficial control range government payment county equivalent would otherwise receive tax destruction public range continue law enact fully prevent fraud public land joint action interior department department justice endeavor prevent must legislation especially sufficient appropriation permit department interior examine certain class entry grind pass private ownership government part title actual care make home prime object secure right guard interest small ranchman man plow pitch hay small ranchman actual settler homemaker long run hurt permit theft public land whatever form optimism good characteristic carry excess becomes foolishness prone speak resource country inexhaustible mineral wealth country coal iron oil gas like reproduce therefore certain exhaust ultimately wastefulness deal mean descendant feel exhaustion generation two otherwise would certain form waste could entirely stop waste soil wash instance among dangerous waste progress united state easily preventable present enormous loss fertility entirely unnecessary preservation replacement forest one important mean preventing loss make begin forest preservation begin present lumber fourth great industry unite state yet rapid rate exhaustion timber united state past rapidly remainder exhaust country unquestionably verge timber famine felt every household land already rise price lumber certain rapid heavy rise future present annual consumption lumber certainly three time great annual growth consumption growth continue unchanged practically lumber exhaust another generation long limit complete exhaustion reach grow scarcity make felt many blighting way upon national welfare 20 per cent forest territory reserve national forest include valuable timber lauds event proportion small expect reserve accomplish mitigation trouble ahead nation far drastic action need forest lumber give public full use mercantile timber without slight detriment forest detriment farm furnish harvest parallel forest mine completely use exhaustion forest use forest use past still use either wholly destroy damage many decade pass effective use make fact obvious extraordinary necessary repeat every business man land every writer newspaper every man woman ordinary school education ought able see immense quantity timber used country forest supply timber rapidly exhausted change take place exhaustion come comparatively soon effect felt severely life people surely facts obvious delay take preventive measure yet seem nation willing proceed matter indifference even immediate future attitude permit person weigh ultimate interest people person find immense pecuniary benefit destroy forest lumber blame thus sacrifice future nation whole moment heavier blame attach people large permit action whether white mountain southern allegheny rockies sierras big lumbering company impatient immediate return care look far enough ahead often deliberately destroy good timber region hop afterwards move new country shiftless man small mean care become actual would like immediate profit find advantage take timber land simply turn big company leave valueless future settler big mine owner anxious develop mine moment care cut timber wish without regard future probably net look ahead condition country forest exhaust condition mine work blame men nearly much blame supine public opinion indifferent public opinion permit action go unchecked course check waste timber mean must part public acceptance temporary restriction lavish use timber order prevent total loss use future plenty men public private life actually advocate continuance present system unchecked wasteful extravagance use argument fact check course mean interference ease comfort certain people get lumber less cost ought pay expense future generation person actually demand present forest reserve throw open destruction forsooth think thereby price lumber could put two three year attitude precisely like agitator protest outlay money farmer manure take care farm generally undoubtedly average farmer content absolutely ruin farm could two three year avoid spend money yet make good deal money savage would private affair show reckless disregard future yet precisely reckless disregard future opponent forestry system endeavor get people united state show trouble movement preservation forest go nearly far enough begin soon enough fortunate thing however begin acquire appalachian white mountain region forest land possible acquire use nation land form national asset emphatically national river fee flow many state reach ocean tariff forest product grown country especial tariff wood pulp due notice change course give engage business enable adjust new condition repeal duty wood pulp possible accompanied agreement canada shall export duty canadian pulp wood eastern united state mineral fuel already pass hand large private owner west rapidly follow obvious fuel conserve waste would well protect people unjust extortionate price far still do accomplished great oil field indian territory action administration offer striking example good result policy judgment government right keep fee coal oil gas field possession lease right develop proper regulation else congress adopt method coal deposit sell limitation conserve public utility right mine coal separate title soil regulation permit coal land work sufficient quantity several corporation present limitation absurd excessive serve useful purpose often render necessary either fraud close abandonment work get coal work panama canal proceeding highly satisfactory manner march last john stevens chairman commission chief engineer resign commission reorganize constituted follow lieut george goethals corps engineer army chairman chief engineer corp engineer army william sibert corp engineer army civil engineer rousseau navy blackburn gorgas army jackson smith commissioner change authority direction go effect april 1 without cause perceptible check progress work march total excavation culebra cut effort chiefly concentrate cubic yard april increase cubic yard considerable decrease output may june owe partly advent rainy season partly temporary trouble steam shovel men question wage trouble settle satisfactorily party july total excavation advance materially august grand total point canal prism steam shovel dredge exceed previous united state record reach cubic yard september record eclipse total cubic yard remove amount cubic yard canal prism cubic yard accessory work result achieve rainy season rainfall august inch september inch finally october record eclipse total excavation cubic yard truly extraordinary record especially view heavy rainfall inch fact experience last two rainy season demonstrate rain less serious obstacle progress hitherto suppose work lock dam gatun begin actively march last advanced far think masonry work lock begin within fifteen month order remove doubt satisfactory character foundation lock canal secretary war request three eminent civil engineer special experience construction alfred noble frederic stearns john freeman visit isthmus make thorough personal investigation site gentleman go isthmus april mean test pit dig purpose inspect propose foundation also examine boring make report secretary war date may 2 1907 say find lock dimension propesed rest upon rock character furnish safe stable foundation subsequent new boring conduct present commission fully confirm verdict show lock rest rock entire length cross section dam method construction insure slip slough similar examination foundation lock dam pacific side progress believe lock make width 120 foot last winter bid request received work canal construction contract none find satisfactory reject unanimous opinion present commission work do well cheaply quickly government private contractor fully 80 per cent entire plant need construction purchase contract machine shop erect equipped make need repair plant many thousand employee secure effective organization perfect recruit system operation capable furnish labor use advantageously employee well shelter well fed salary pay satisfactory work go forward smoothly produce result far advance sanguine anticipation favorable condition change method prosecuting work would unwise unjustifiable would inevitably disorganize exist condition check progress increase cost lengthen time complete canal chief engineer professional associate firmly convince 85 foot level lock canal constructing best could desire doubt point go isthmus plan develop direction doubt dispel may decide upon change detail construction advance hearty accord approve general plan believe provide canal adequate demand make upon superior every way sea level canal concur belief commend favorable consideration congress postal saving bank system recommend primary object encourage among people economy thrift use postal saving bank give opportunity husband resource particularly facility hand deposit money saving bank view however experience past week evident advantage institution till timid depositor withdraw saving time national bank trust company savings bank individual hoard cash workingman earnings money withhold keep hide safe deposit box detriment prosperity agency postal saving bank money would restore channel trade mutual benefit capital labor commend congress consideration recommendation extension parcel post especially rural route rural route serve nearly people advantage inhabitant city obtain supply recommendation draw benefit farmer country storekeeper otherwise favor believe good policy government everything possible aid small town country district desirable country merchant crush postmaster convention pass strong resolution favor place postmaster law administration already put effect policy refuse remove postmaster save reason connect good service endeavor far possible remove domain partisan politics would desirable thing put postmaster classify service possible might do without congressional action matter debatable earnestly recommend congress enact law provide included law put classified service oklahoma become state stand full equality elder sister future assure great natural resource duty national government guard personal property right indian within border remain course unchanged reiterate recommendation last year regard alaska form local provide simple inexpensive possible impossible congress devote necessary time little detail necessary alaskan legislation road build railway building encourage governor alaska begiven ample appropriation wherewith organize force preserve public peace whisky sell native make felony coal land law change meet peculiar need territory attend present law permit individual locate large area public domain speculative purpose immense amount trouble fraud litigation another judicial division establish early possible lighthouse buoy established aid navigation especially prince william sound survey coast complete need liberal appropriation light buoy southern coast improve aid navigation southeastern alaska one great industry alaska puget sound columbia salmon fishing gradually reason lack proper law industry ruin take charge effectively protect united state government courage enterprise citizen project exposition hold 1909 receive liberal encouragement exposition sentimental conception seek exploit natural resource alaska promote commerce trade industry pacific state neighbor state insular possession neighbor country pacific exposition ask loan congress seek appropriation national exhibit exhibit western dependency general government state washington city seattle show characteristic western enterprise large donation conduct exposition state lend generous assistance unfortunate failure shipping bill last session last congress follow take certain pacific steamship greatly hamper movement passenger hawaii mainland unless congress prepare positive encouragement secure proper facility way ship hawaii mainland coastwise shipping law far relaxed prevent hawaii suffer suffer call attention capital importance every standpoint make pearl harbor available large deep water vessel suitably fortify islan secretary war go philippines return shall submit report island recommend right citizenship confer upon people porto rico bureau mine create control direction secretary interior bureau power collect statistic make investigation matter pertain mine particularly accident danger industry do least additional appropriation give interior department use study mine condition prevention fraudulent mining scheme carry work map mining district study method minimize accident danger industry short aid proper way development mining industry strongly recommend congress provide fund keep hermitage home andrew jackson fund use exist hermitage association preservation historic building ever dear american recommend naval monument establish vicksburg national park national park give unique opportunity commemorate deed gallant men fight water less fought land great civil war legislation enact present session congress thirteenth census establishment permanent census bureau affords opportunity well census ever order realize full advantage permanent organization ample time must give preparation constantly grow interest country question public health last public mind awake fact many disease notably tuberculosis national scourge work state city board health supplement constantly increase interest part national government congress already provide bureau public health provide hygienic laboratory valuable law relate public health connect various department whole branch government strengthen aid every way call attention two government commission appoint already do excellent work first organization scientific work government grow wholly without plan consequence unwisely distribute among executive department much effect lose lack proper coordination commission chief object introduce plan orderly development operation place often ineffective group method work prevail do without legislation would feasible deal detail complex administrative problem specific provision law recommend president give authority concentrate relate line work reduce duplication executive order transfer consolidation line work second committee department method instruct investigate report upon change need place conduct executive force government economical effective basis light best modern business practice committee make satisfactory progress antiquate practice bureaucratic way abolish general renovation departmental method inaugurate do executive order already accomplish put effect near future work main committee several assistant committee produce wholesome awaken part great body officer employee engage government work nearly every department office careful purpose remedy defect could make subject adverse criticism lead individual wider study work engage study result increase efficiency respective line work recommendation special importance committee subject personnel classification salary require legislative action put effect intention submit congress near future special message subject form government vote merely right duty moreover fundamental necessary duty man good citizen well provide corporation shall contribute presidential national campaign furthermore provide publication contribution expenditures however always danger law kind nature difficult enforcement danger l obey honest disobey unscrupulous act penalty upon honest men moreover law would hamper unscrupulous man unlimited mean buy way office radical measure would believe work substantial improvement system conduct campaign although well aware take time people familiarize proposal willing consider adoption need collect large campaign fund would vanish congress provide appropriation proper legitimate expense great national party appropriation ample enough meet necessity thorough organization machinery require large expenditure money stipulation make party receiving campaign fund treasury accept fixed amount individual subscriber donor necessary publicity receipt expenditure could without difficulty provide national gallery art establish capital city country important merely artistic material welfare country people congratulate fact movement establish gallery take definite form guidance smithsonian institution far tariff work art brought country importation encourage every way sufficient collection object art government collection acquire scatter generally place unsuitable imperfectly light gallery biological survey quietly work good agricultural interest excellent example government bureau conduct original scientific research finding much practical utility twenty year study food habit bird mammal injurious beneficial agriculture horticulture forestry distribute illustrated bulletin subject labored secure legislative protection beneficial specie cotton recently overspread cotton belt texas steadily extend range say annual loss biological survey ascertain give wide publicity fact least 43 kind bird prey upon destructive insect discover 57 specie bird fee upon dreaded enemy fruit grower show woodpecker class destroy larvae insect essential tree life doubtful forest could exist without show cuckoo orioles natural enemy caterpillar destroy shade fruit tree quail sparrow consume annually hundred ton seed noxious weed hawk owls class except kill poultry game bird markedly beneficial spending life catch grasshopper mice pest prey upon product husbandry conduct field experiment purpose devise perfect simple method hold check horde destructive rodent rat mice rabbit gopher prairie dog ground squirrel annually destroy crop worth many million dollar publish practical direction destruction wolves coyote stock range west result past year estimate save cattle sheep value upwards million dollar inaugurated system inspection principal port entry atlantic pacific coast mean introduction noxious mammal bird prevent thus keep mongoose certain bird much dread previously introduce english sparrow house rat mice interest game protection cooperate local official every state union striven promote uniform legislation several state render important service enforce federal law regulate interstate traffic game show bow game protection may make yield large revenue state revenue amount case illinois single year biological survey explore faunas flora america reference distribution animal plant define mapped natural life area area reason prevail climatic condition certain kind animal plant occur point adaptability area cultivation particular crop result investigation high educational value worth year progressive farmer country many time cost maintain survey may add exceedingly small recommend congress bureau whose usefulness seriously handicap lack fund grant appropriation degree commensurate importance work call especial attention unsatisfactory condition foreign mail service lack american steamship line largely do foreign line particularly far south central america concern do manner constitute serious barrier extension commerce time come judgment set work seriously make ocean mail service correspond closely recent commercial political development begin make ocean mail act march 3 1891 even time act know inadequate various particular since time event move rapidly history acquire hawaii philippine lesser island pacific steadily prosecute great work unite isthmus water atlantic pacific great extent seem probable even dozen year ago may look american future sea worthy tradition past first step direction step feasible present time recommend extension ocean mail act 1891 act stand year free successful criticism principle purpose base theory obligation great maritime nation undisputed land follow nation since begin steam navigation briefly theory duty power far practicable carry ocean mail flag fast ocean steamship crew require mail service valuable auxiliary sea power nation furthermore construction steamships insures maintenance efficient condition shipyard battleship must build expenditure public money performance necessary function government certainly warrant necessary dwell upon incidental benefit foreign commerce shipbuilding industry ship owning navigation accompany discharge urgent public duty though weight serious question whether time afford improve ocean mail service improve doubt subject remove report department fiscal year end june 30 1907 department estimate postage collect article exchange foreign country canada mexico amount net cost service exclusive cost transporting article unite state exchange united state mail deliver word government unite state assume monopoly carry mails people make profit rendering cheap inefficient service profit believe devote strengthen maritime power direction best promote prestige country familiar fact maritime impotence harbor great friendly republic south america follow failure shipbuilding bill lose american line steamer australasia loss pacific become serious embarrassment people hawaii wholly cut samoan island regular communication pacific coast puget sound year lose half four seven american steamer trade orient pay act 1891 4 statute mile outward american mail steamship build accord naval plan available cruiser man american steamship speed confine exclusively trade new york steamship 16 knot 2 mile pay steamship speed type need meet requirement mail service south america asia include philippine australia strongly recommend therefore simple amendment ocean mail act 1891 shall authorize discretion enter contract transportation mail republic south america asia philippine australia rate exceed 4 mile steamship 16 knot speed upwards subject restriction obligation act 1891 profit mention fully cover maximum annual expenditure involve recommendation believe time establish line urgently need proposition involve new principle permit efficient discharge public function inadequately perform perform never nation world wholly free evil militarism never large nation even china long period relatively number small regular army never time history nation suffer militarism remotest danger suffer militarism never time history regular army size cause slight appreciable tax upon citizen nation almost always small size underpaid never entire history nation suffer least particular much care give army much prominence give much money spend upon large suffer enough care give small sufficient preparation advance possible war every foreign war engage cost u many time amount wisely expend precede year peace regular army would insure war end fraction time fraction cost actually case nation always shortsighted provide efficiency army time peace nobody especial interest make provision one look ahead war period matter remote serious possibility improper economy rather niggardliness practiced expense army certainty practice call account therefor price pay unfortunate person happen office war actually come think lack foresight trouble u hostility army course foolish people denounce care army navy militarism think people numerous country contend contend past many evil ample scope would work reform one evil exist ever exist country ever owe small part militarism declamation militarism serious place earnest intelligent movement righteousness country declamation worship baal astaroth declamation evil one never exist country slight chance appear glad help movement international peace sincerely believe duty help movement provide sane rational tendency toward militarism part need cure evil fight connection industrialism militarism industry always necessary war sometimes necessary price industry unite state exacts always exact far heavy toll death war put together statistic railroad country year end june 30 1906 last contain annual statistical report interstate commerce commission show one year total casualty person represent number person kill wonderful hive human activity pittsburg death due industrial accident 1906 919 result accident mill mine railroad entire country therefore safe say death due industrial accident aggregate neighborhood twenty thousand year record make death rate foreign war utterly trivial comparison number deaths battle foreign war put together last century quarter aggregate considerably less one year death record industry mere glance figure sufficient show absurdity outcry militarism past little regular army render service literally vital country may time future standard efficiency instruction high ever past small enough officer impossible secure enough enlist men maintain peace fairly complete skeleton large army great war would fight volunteer month would pass large body efficient volunteer could put field regular army large enough meet immediate need particular essential possess number extra officer train peace perform efficiently duties urgently require upon break war medical corp much large need regular army war yet present small need service demand even peace spanish war occur less ten year ago chief loss suffer disease among regiment never leave country moment nation seem deeply impressed fact yet seemingly already forget slight effort make prepare medical corp sufficient size prevent repetition disaster much large scale ever engage serious conflict trouble spanish war exist official war department representative people whole precede thirty year decline make necessary provision army unless ample provision make congress put medical corp put disaster next war inevitable responsibility lie charge war department decline make necessary provision well organize medical corp thoroughly trained advent war important administrative duty military sanitary corp essential efficiency large army especially large volunteer army knowledge medicine surgery possess medical profession generally alone suffice make efficient military surgeon must addition knowledge administration sanitation large field hospital camp order safeguard health life men intrust great number care bill long pending congress reorganization medical corp passage urgently need medical department department increase provision make rate pay officer greatly increase high type citizen american regular officer fair reward admirable work relatively even great increase pay enlist men especial provision make establish grade equivalent warrant officer navy open enlist men serve sufficiently long work well inducement offer sufficient encourage really good men make army life occupation prime need present army secure retain competent noncommissioned officer difficulty rest fundamentally question pay noncommissioned officer correspond unskilled laborer corresponds best type skilled workman subordinate official civil institution wage greatly increase outside occupation last forty year pay soldier like pay officer proportionately increase first sergeant company good man must one executive administrative ability knowledge trade worth far present pay true regimental sergeant major men men fully resolve make army life occupation able look forward ample reward men properly qualify give chance secure final reward increase present pay need great low grade first one two enlistment increase mark noncommissioned officer upper grade serve long enough make evident intend stay permanently army additional pay give high qualification target practice position warrant officer establish increase pay increase privilege allowance dignity make grade open noncommissioned officer capable fill desirably every standpoint rate desertion army time peace alarm deserter treat public opinion man guilty great crime hand man serve steadily army treat preeminently one best citizen republic twelve year service army belief man give preference accord ability certain type office civilian applicant without examination also apply course men serve twelve year navy special corp provide manual labor necessarily demand private among officer severe examination weed unfit grade major position appointment solely selection understood man merely average capacity could never get beyond position major every man serve grade certain length time prior promotion next grade without get promotion next grade forthwith retire practice march field maneuver last two three year invaluable army continue extended rigid perfunctory examination physical capacity provide high grade officer work well unless officer good physique unless stand hardship ride well walk fairly fit position even become colonel become colonel need physical fitness officer almost great enlisted man hope speedily see introduced army far rigid thoroughgoing test horsemanship field officer present chief cavalry chief artillery perhaps important legislation need benefit army law equalize increase pay officer enlist men army navy marine corp service bill prepare hop meet favorable consideration next essential measure authorize number extra officer mention make army attractive enlist men absolutely essential create service corp exist nearly every modern army world skilled unskilled labor inseparably connect military administration exact without compensation enlist men voluntarily enter army service altogether different kind number law necessary organize army promote efficiency facilitate rapid expansion time war important hop hague conference might deal question limitation armament even assemble informal inquiry develop regard naval armament one country interest hopeless try devise plan slight possibility secure assent nation gather hague plan even propose would assent one first class power outside united state plan seem feasible limit size battleship meet favor evident therefore folly nation base hope secure peace international agreement limitation armament fact would unwise u stop upbuilding navy build one battleship best advanced type year would barely keep fleet present force enough judgment year provide four battleship idle build battleship unless addition provide men mean thorough train provide auxiliary unless provide dock coal station collier supply ship need extremely deficient coal station dock pacific deficiency longer permit exist plenty torpedo boat destroyer build atlantic pacific coast fortification best type provide great harbor need always remember time war navy use defend harbor city perfect system coast fortification efficient use navy offense way efficiently protect coast possible action foreign navy destroy foreign navy defense hostile fleet actually attack coast city must depend upon fort mine torpedo submarine torpedo boat destroyer together efficient defensive purpose way supply place thoroughly efficient navy capable act offensive parrying never yet fight hard hit aggressive navy alone hard hit offensive type fort like necessary navy may footloose time war sure demand pressure fright ship scatter defend kind port penalty terrible disaster demand must refuse ship must keep together objective make enemy fleet fortification sufficiently strong modern navy venture attack long foe existence hostile navy anything like size efficiency unless exists navy fortification powerless secure victory course mere deficiency mean resolute enemy leisure combine force upon one point certainty take battle fleet much large present never split detachment far apart could event emergency speedily unite coast line pacific much atlantic interest california oregon washington emphatically interest whole union maine new york louisiana texas battle fleet move pacific time keep atlantic isthmian canal build transit battle fleet one ocean comparatively easy build earnestly hope battle fleet thus shift two ocean every year two marksmanship ship improve phenomenally last five year within last two three year possible train battle fleet squadron maneuver service condition last two three year train condition become really effective another necessary stride advance take battle fleet start strait magellan visit pacific coast sixteen battleship go command evans eight armored cruiser two battleship meet san francisco whither certain torpedo destroyer also go fleet size ever make voyage great educational use engage way teach officer men handle fleet meet every possible strain emergency time war practice similar condition time peace moreover way find actual need perform time peace whatever maneuver might necessary time war war declare late find need mean invite disaster trip pacific show need enable u provide proper place officer learn duty sea way navy ever make efficient practice sea condition would meet war exist bespeak liberal treatment officer enlist men navy true likewise officer enlist men army form body whose interest close heart every good american return rigid performance duty exact reward ample best nothing less best tolerate idle hope best result men senior grade come grade late life serve short time rank promotion navy seniority subject however rigid test would eliminate unfit grade come grade command rank unfit eliminate manner conspicuously fit would remain sea service principal test fitness pass certain length service respective grade retire give number men may well almost would make good lieutenant good minority fit captain three four admiral object promotion otherwise mere seniority reflect upon elementary fact business private life could successfully manage enter low rung ladder turn live become head firm active director retire hold position month face scheme absurdity chance improper favoritism minimize properly form board board last june conscientious excellent work elimination ought do do least let begin make last three annual message special message last congress necessity legislation officer line navy reach grade captain less advanced age sea train experience highly responsible duty grade may become thoroughly skillful handle battleship division squadron fleet action fully explain urgently recommend upon subject secretary navy submit detailed definite recommendation receive approval enact law accomplish immediately necessary compare exist law make save five million dollar next seven year navy personnel act 1899 accomplish expect provide satisfactory period service several subordinate grade grade ensign grade law inadequate upper grade continue inadequate account expansion personnel since enactment attention invite following quotation report personnel board 1906 assistant secretary navy president congress authorize considerable increase number midshipman naval academy midshipman upon graduation promote ensign lieutenant provision make corresponding increase upper grade result low grade become congested midshipman one low class annapolis may possibly promote lieutenant 45 50 year age continue present law congest top congesting bottom country fail get officer service best provide opportunity normal development train board believe work serious detriment efficiency navy real menace public safety state special message last congress firmly opinion unless present condition higher commissioned personnel rectify judicious legislation future navy gravely compromise also urgently necessary increase efficiency medical corp navy special legislation end already propose trust may enact without delay must remember everything do navy fit well time war must do time peace modern war short last length time requisite build battleship take long train officer men well battleship take build nothing effective do navy war begin result war combatant otherwise equally match depend upon power prepare best time peace united state navy best guaranty nation honor interest neglect addition offer far best insurance peace human ingenuity devise call attention report official board visitor naval academy annapolis forward congress report contains paragraph revision make course study method conduct mark examination develop bring average ability midshipman rather give prominence one particular study fact keep mind naval academy university school primary object educate boy efficient naval officer change curriculum therefore direction make course instruction less theoretical practical portion future class graduate advance full four year course circumstance standard instruction lower academy almost department magnificently equip would unwise make course instruction less exact act upon suggestion designate three seagoing officer capt richard wainwright commander robert griffin lieut commander albert key graduate academy investigate condition recommend best method carry effect general recommendation officer perform duty promptly intelligently personal direction capt charles badger superintendent academy propose change deem present advisable put effect begin academic year october 1 last result confident beneficial academy midshipman navy foreign affair country steady policy behave toward nation strong man behave toward men bring contact word aim disinterestedly help nation help wisely give without appearance meddling concern u careful act good neighbor time fashion make evident intend impose upon second international peace conference convene hague 15th june last remain session 18th october first time representative practically civilized country world united temperate kindly discussion method cause war might narrowed injurious effect reduce although agreement reach conference direction go length hop sanguine yet many direction important step take upon every subject programme full considerate discussion justify belief substantial progress make toward agreement future thirteen convention agree upon embody definite conclusion reach resolution adopt mark progress make matter upon agreement yet sufficiently complete make convention practicable delegate united state instruct favor agreement obligatory arbitration establishment permanent court arbitration proceed judicially hear decision international cause prohibition force collection contract debt allege due government citizens country arbitration justice amount debt time manner payment immunity private property sea good definition right neutral case measure end introduce limitation armament field peaceful disposal international difference several important advance make first obligatory arbitration although conference fail secure unanimous agreement upon detail convention obligatory arbitration resolve follow unanimous 1 accept principle obligatory arbitration 2 declare certain difference notably relate interpretation application international conventional stipulation susceptible submit obligatory arbitration without restriction view fact result discussion vote upon definite treaty obligatory arbitration propose stand 32 favor 9 adoption treaty little doubt great majority country world reach point ready apply practically principle thus unanimously agree upon conference second advance great one agreement relate use force collection contract debts attention invite paragraphs upon subject message december 1906 resolution third american conference rio summer 1906 convention upon subject adopt conference substantially propose american delegate follow order avoid nation arm conflict purely pecuniary origin arise contractual debt claim government one country government another country due national signatory power agree recourse arm force collection contractual debt however stipulation shall applicable debtor state refuse leaf unanswered offer arbitrate case acceptance make impossible formulate term submission arbitration fail comply award render agreed arbitration contemplate shall conformity procedure chapter iii convention pacific settlement international dispute adopt hague shall determine far shall agreement party justice amount debt time mode payment thereof provision would prevent much injustice extortion past doubt effect future salutary third advance make amend perfect convention 1899 voluntary settlement international dispute particularly extension part convention relate commission inquiry existence provision enable government great britain russia avoid war notwithstanding great public excitement time dogger bank incident new convention agree upon conference give practical effect experience gain inquiry substantial progress also make towards creation permanent judicial tribunal determination international cause full discussion proposal court general agreement finally reach favor creation conference recommend signatory power adoption draft upon agree organization court leave determine method judge select remain unsettled question plainly one time good temper solve agreement first importance creation international prize court constitution organization procedure tribunal provide detail anyone recall injustice country suffer neutral power early part last century fail see provision international prize court great advance world making towards substitution rule reason justice place simple force international prize court mean protect interest neutral step towards creation general court hear international controversy reference make organization action prize court fail accustom different country submission international question decision international tribunal may confidently expect result submission bring general agreement upon enlargement practice numerous provision adopt reduce evil effect war define right duty neutral conference also provide hold third conference within period similar elapse first second conference delegate united state worthily represent spirit american people maintain fidelity ability policy government upon great question discuss conference report delegation together authenticate copy convention sign receive laid senate consideration remember difficult one legislative body compose citizen country speak language live law custom reach agreement even secure majority upon difficult important subject propose legislation become plain representative different country speak many different language accustom different method procedure widely diverse interest discuss many different subject reach agreement upon many entitle grateful appreciation wisdom patience moderation discharge duty example temperate discussion agreement effort agree among representative nation earth act universal recognition supreme obligation promote peace fail powerful influence good future international relation year ago consequence revolutionary movement cuba threaten immediate return chaos island united state intervene send army establish provisional government governor magoon absolute quiet prosperity return island action take step provide election island expectation within coming year able turn island government chosen people thereof cuba door possible nation permit cuba sink condition rescue ask cuban people prosperous govern bring content order progress island queen antilles interference help achieve result invitation extend japan government people united state participate great national exposition hold tokyo april 1 october 31 1912 principal country world invite take part occasion special interest nation world peculiarly u first instance great national exposition hold great power dwell pacific nation europe america trust join help success first great exposition ever hold great nation asia geographical relation japan united state possessor large portion coast pacific intimate trade relation already exist two country warm friendship maintain without break since open japan intercourse western nation increase wealth production regard hearty goodwill wish make occasion mutually beneficial commerce unite make eminently desirable invitation accept heartily recommend legislation provide generous fashion representation government people propose exposition action take apt underestimate time necessary preparation case invitation french exposition 1900 bring attention congress president cleveland december 1895 many delay necessary proceeding period font year half intervene exposition prove none long proper preparation exhibit adoption new tariff germany accompany convention reciprocal tariff concession country country continental europe lead german government notice necessary terminate reciprocal commercial agreement country proclaim july 13 1900 notice take effect 1st march 1906 default arrangement would leave export united state germany subject general german tariff duty 25 50 per cent high conventional duty impose upon good competitor german trade special agreement make two government february 1906 german government postpone operation notice 30th june 1907 meantime deem duty make every possible effort prevent tariff war united state germany arise misunderstand either country condition exist act upon invitation german government send berlin commission compose competent expert operation administration custom tariff department treasury commerce labor commission engage several mouth conference similar commission appoint german government instruction far practicable reach common understanding fact regard tariff united state germany material relevant trade relation two country commission report upon basis report temporary commercial agreement enter two country pursuant exercise authority confer upon president third section tariff act july 24 1897 extend reduce tariff rate provide section champagne sparkle wine pursuant german conventional minimum tariff rate extend 96 per cent export unite state germany agreement remain force 30th june 1908 six month notice either party terminate agreement report commission base laid congress information careful examination tariff relation united state germany involve inquiry certain method administration much complaint part german exporter inquiry become satisfied certain vicious unjustifiable practice grow custom administration notably practice determine value import upon detective report never disclose person whose interest affect use detective though often necessary tends towards abuse carefully guard practice find exist case abuse become gross discreditable instead seek information market value merchandise respect member commercial community country production secret statement obtain informer discharge employee business rival upon kind secret evidence value import good frequently raise heavy penalty frequently impose upon importer never permit know evidence never opportunity meet quite probable system tend towards increase duty collect upon import good conceive violation law exact duty law provide violation admit good upon payment less legal rate duty practice repugnant spirit american law american sense justice judgment competent expert treasury department department commerce labor wholly unnecessary due collection custom revenue attempt defend merely illustrates demoralization naturally follow long continued course reliance upon method accordingly cause regulation govern branch custom service modify value determine upon hear party interested opportunity heard know evidence moreover treasury agent accredited government country seek information germany receive assistance chamber commerce determine actual market value good accordance advise true construction law change regulation adapt removal manifest abuse felt ought confine relation germany extend operation country express desire enter similar administrative relation ask authority reform agreement china indemnity 1900 fix remit cancel obligation china payment part stipulate indemnity excess sum eleven million six hundred thousand four hundred dollar cent interest four per cent rescue foreign legation peking boxer trouble 1900 power require china payment equitable indemnity several nation final protocol troop withdraw sign peking september 7 1901 fixed amount indemnity allot united state china pay include 1st day june last little first intention government proper time claim present expense ascertain fully possible revise estimate account proof sincere friendship china voluntarily release country legal liability payment excess sum prove necessary actual indemnity united state citizen nation help every practicable way education chinese people vast populous empire china may gradually adapt modern condition one way promote come chinese student country make attractive take course universities high educational institution educator far possible take concert action toward end courteous invitation president mexico secretary state visit country september october receive everywhere great kindness hospitality carry government united state southern neighbor message respect good desire well acquaintance increase friendship response government people mexico hearty sincere pain spar manifest friendly attitude feel toward united state view close neighborhood two country relation exist mexico united state gratification common boundary mile gulf mexico pacific much mark shift water rio grande many thousand mexican reside upon side line estimate american resident mexican territory american investment mexico amount seven hundred million dollar extraordinary industrial commercial prosperity mexico greatly promoted american enterprise american share largely result foreign trade republic already exceed per annum export import exchange united state circumstance numerous question necessarily arise two country question always approach disposed spirit mutual courtesy fair deal americans carry business mexico testify uniformly kindness consideration treat sense security property enterprise wise administration great statesman long held office chief magistrate republic two government unite effort considerable time past aid central america attain degree peace order make possible prosperity northern port continent peace guatemala honduras salvador celebrate circumstance describe last message new war break republic nicaragua honduras salvador effort compose new difficulty result acceptance joint suggestion president mexico united state general peace conference country central america 17th day september last protocol sign representative five central american country accredit government agree upon conference hold city washington order devise mean preserve good relation among say republic bring permanent peace country protocol include expression wish president united state mexico appoint representative lend good impartial office purely friendly way toward realization object conference conference session best wish practicable friendly assistance one result pan american conference rio janeiro summer 1906 great increase activity usefulness international bureau american republic institution include american republic membership bring representative together really valuable work inform people united state republic make united state know action limited appropriation determine work much small scale render much less valuable service recommend contribution government expense bureau make commensurate increase work