ROOSEVELT’S MESSAGE BREATHES OF REFORM President’s Annual Communi cation Delivered to Congress at Washington. STRONG FOR RATE REFORM Makes Many Suggestions, but This Is the Chief One—Would Supervise Insurance—Not Ripe for Tariff Reform. Washington, D. O. Deo. 5.—President Roosevelt delivered his annual message to congress today. The document was a lengthy one of more than 25,000 words. It breathes reform from lirst to last. Chief and foremost is the demand for rate legislation which he goes into in great detail. He also rec ognizes the insurance evils and urges federal supervision of insurance and of other great corporations. He fails to recommend revision of the tariff, saying it is not required a3 yet. His message ill part follows: To the senate and house of representa tives: The people of this country continue to enjov great prosperity. Undoubtedly there will 'be ebb and How in such prosperity, and this ebb and tiow will be feit more or less by all members of the community, both by the deserving and the undeserving. Against the wrath of the Lord the wisdom of man can not avail; in times of Hood or drought human ingenuity can but partially repair the disaster. A general failure of crops would hurt all of us. Again, if the folly of man mars the general well-being, then those who are innocent of the folly will have to pay part of the penalty in curred 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 perma nent prosperity of the country is the high individual character of the average Amer ican 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. Control cf Corporations. 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. 1 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. The cor poration 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. State Legislation Impotent. 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 regu lation and supervision can only be eftec tiyely exercised by a sovereign whose jurisdiction is co extensive with the field of work of the corporation—that is, by the national government. I believe that this regulation and supervision can be obtained by the enactment of law by the congress. If it proves impossible, it will certainly be necessary ultimately to confer in fullest form such power upon the national govern ment by a proper amendment of the con stitution. It would obviously be unwise to endeavor to secure such an amendment until it is certain that the result can not be obtained under the constitution as it now is. What Is needed is not sweeping prohibi tion of every arrangement, good or bad, which may tend to restrict competition, but such adequate supervision and regu lation 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 com petition. Abuse of Over-Capitalization. Of these abuses, perhaps the chief, al though by no means the only one, is over capitalization- generally itself the result of dishonest promotion—because of the myriad evils it brings in its train; for such overcapitalization often means an inliation that invites business panic; it always con ceals the true relation of the profit earned to the capital actually invested, and it creates a burden of interest payments winch is a fertile cause of improper reduc tion in or limitation of wages; it damages the small investor, discourages thrift, and encourages gambling and speculation; while perhaps worst of all is the trickiness and dishonesty which it Implies—for harm to morals is worse than any possible harm to material interests, and the debauchery of politics and business by great dishonest corporations is far worse than any actual material evil they dy the public. Railroad Rate Legislation. The first thing to do is to deal with the great corporations engaged in the busi ness of interstate transportation. As I said in my message of December G last, the Immediate and most pressing need, so far as legislation Is concerned, is the enact ment into law of some scheme to secure to the agents of the government such su pervision and regulation of the rates charged by the railroads of the country engaged in interstate traffic as shall sum marily and effectively prevent the imposi tion of unjust or unreasonable rates. It must include putting a complete stop to rebates in every shape and form. This power to regulate rates, like all similar powers over the business world, should be exercised with moderation, cant.on, and BGlf restraint; but it should exist, so that it can be effectively exercised when the need arises. Commission Must Be Administrative. The first consideration to be kept in mind is that the power should be affima tive and should be g.ven to some adminis trative body created by the congress. If given to the present Interstate Commerce commission or to a reorganized Interstate Commerce commissitn, such commission should be made unequivocally administra • tive. Suggests the Terms. It is not my province to indicate the ex act terms of the law which should be en acted; but 1 call the attention of the con gress to certain existing conditions with which it is desirable to deal. In my judg ment the most important provision which such law should contain is that conferring upon some competent administrative body the power to decide, upon the case being brought before it, whether a given rate prescribed by a ra'.liiad is reasonable and just, and if it is found to be unreasonable and unjust, then, after full investigation of the complain.. to prescribe the limit of the rate beyond which it shall not be lawful to go—the maximum reasonable rate, as it is commonly called—this de cision to go into effect within a reasonable time and to obtain from thence onward, subject to review by the courts. Prohibit Too Low Rates. It sometimes happens at present, not that a rate is too high but that a favored ship per is given too low a rate. In such case the commission would have the right to fix this already established minimum rate as the maximum: and it would need only one or two such decisions by the commis sion to cure railroad companies of the practice of giving improper minimum rates. I call your attention to the fact that my proposal is not to give lho commission power In initiate or originate rates gen erally, but to regulate a rate already fixed or originated by the roads, upon com plaint and after Investigation. A heavy penalty ehould be -exacted from any cor | poratlon ■which fa 11s to respect .an order I of the commission. I regard this power to establish a maximum rate as being es sential to any scheme of real reform in the matter of railway regulation. The lirst necessity is to secure it; and unless it is granted to the commission there is llt j tie use of touching the subject at all. To Punish All Subterfuges. Illegal transactions often occur under the forms of law. It has often occurred that a shipper lias been told »>y a traffic officer to buy a large quantity of some commodity and then after it has been bought an open reduction is made in the rate to take effect immediately the ar rangement resulting to the protit of the one shipper and the one railroad and to the damage of all their competitors; for it must not be forgotten that the big ship pers are at least as much to blame as any railroad in the matter of rebates. The law should make it clear so that nobody can fail to understand that any kind of commission paid on freight shipments, whether in this form or in the form of fictitious damages, or of a concession, a free pass, reduced passenger rate, or pay ment of brokerage, is illegal. It is worth while considering whether it would not be wise to confer on the gov ernment the right of civil action against the beneficiary of a rebate for at least twice the value of the rebate; this would help stop what is really blackmail. Ele vator allowances should be stopped, for they have now grown to such an extent that they are demoralizing and are used as rebates. Control Over Private Car JLines. All private-car lines, industrial roads, re frigerator charges, and the like should be expressly put under the supervision of the Interstate Commerce commission or some similar body so far as rates, and agreements practically affecting rates, and concerned. The private-car owners and the owners of industrial railroads are en titled to a fair and reasonable compensa tion on their investment, but neither pri vate cars nor industrial railroads nor spur tracks should be utilized as devices for securing preferential rates. A rebate in icing charges, or in mileage, or in a division of the rate for refrigerating charges is just as pernicious as a rebate in any other way. No lower rates should apqly on goods imported than actually ob tains on domestic goods from the Ameri can seaboard to destination except in cases where water competition is the con trolling influence. Publicity Is Much Needed. There should be publicity of the ac counts of common carriers; no common carrier engaged In interstate business should keep any books of memoranda oth er than those reported pursuant to law or regulation, and these books or memoranda should be open to the inspection of the government. Only in this way can viola tions or evasions of the law be surely de tected. A system of examination of rail read accounts should be provided similar to that now conducted into the national banks by the bank examiners; a few first class railroad accountants, if they had proper direction and proper authority to inspect books and papers, could accom plish much in preventing willful viola tions of the law. Courts to Act Rapidly. I urge upon the congress the need of pro viding for expeditious action by the In terstate Commerce commission in all these matters, whether in regulating rates for transportation or for storing or for handl ing property or commodities in transit. The history of the cases litigated under the present commerce act shows that its efficacy has been to a great degree de stroyed by the weapon of delay, almost the most formidable weapon in the hands of those whose purpose it Is to violate the law. The Labor Question. The question of securing a healthy, self respecting and mutually sympathetic at titude as between employer and employe, capitalist and wage worker, is a difficult one. All phases of the labor problem prove difficult when approached. But the underlying principles, the root principles, in accordance with which the problem must be solved, are entirely simple. We can get justice and right dealing only if we put as of paramount importance the principle of treating a man on his worth as a man rather than with refer ence to his social position, his occupa tion, or the class to which he belongs. There are selfish and brutal men in all ranks of life. This government is not and never shall be government by a plutocracy. This government is not and never shall be government by a mob. It shall continue to be in the future what it has been in the past, a government based on the theory that each man, rich or poor, is to be treated simply and solely on his worth as a man, that all his personal and property rights are to be safeguarded, and that he is neither to wrong others nor to suffer wrong from others. To Regulate Life Insurance. The great insurance companies afford striking examples of corporations whose business has extended so far beyond the jurisdiction of the states which created them as to preclude strict enforcement of supervision and regulation by the parent states. In my last annual message I recom mended “that congress carefully consider whether the power of the bureau of cor porations can not constitutionally be ex tended to cover interstate transactions in insurance.” Recent events have emphasized the im portance of an early and exhaustive con sideration of this question, to see whether it is not possible to furnish better safe guards than the several states have been able to furnish against corruption of the flagrant kind which has been exposed. It has been only too clearly shown that certain of the men at the head of these large corporations take but small note of the ethical distinction between hone: ty and dishonesty; they draw the line only this side of what may be called law honesty, the kind of honesty necessary in order to avoid falling into the clutches of the law. State Supervision Inadequate. I repeat my previous recommendation that the congress should also consider whether the federal government has any power or owes any duty with respect to domestic transactions In insurance of an interstate character. That state supervi sion has proved inadequate is generally conceded. The burden upon insurance companies, and therefore their policy hold ers, of conflicting regulations of many states, is unquestioned, while but little effective check is imposed upon any able and unscrupulous man who desires to ex ploit the company in his own interest at the expense of the policy holders and of the public. As a remedy for this evil of conflicting, ineffective, and yet burdensome regulations there has been for many years a wide spread demand for federal supervision. Tne | congress has already recognized that in | terstate insurance may be a proper subject for federal legislation, for in creating the bureau of corporations It authorized it to i publish and supply useful Information ron I corning interstate corporations, "including i corporations engaged in insurance." Wnat I is said above applies with equal force to 1 fraternal and benevolent organizations j which contract for life insurance. Takes Up the Tariff. There is more need of stability than of ; the attempt to attain an ideal perfection i in the methods of raising revenue; and the I shock and strain to the business wor.d I certain to attend any serious change in these methods render such change inad visable unless for grave reason. U is not ! possible to lay down any general rule by which to determine the moment when the reasons for will outweigh the reasons against such a change. Much must de pend, not merely on ttie needs, but on the desires, of the people as a wlio e; lor n eds and desires are not necessarily identical. Of course no change can be made on lines beneficial to, or desired by, one sec tion or one state only. There must be some thing like a general agi- ement i among the citizens of the several states, as represented in the congress, that the change Is needed and desired in the inter est of the people as a whole. In time of peace arid revenues much on the average, taking a series of years together, equal the expenditures or else the revenues must be increased. Last year there was a de ficit. Unless our expenditures can be kept within the revenues then our revenue laws must be readjusted. Too Early fce. Revise Tariff. It is as yet too early to attempt to out line what shape such a readjustment should take, for it is as yet too early to say whether there wfll be need for it. It ehould be considered whether it is not desirable that the tariff laws should pro vide for applying as against or In favor of any other nation maximum and minimum tariff rates established by the congress, bo as to secure a certain reciprocity of treat ment between other nations and our selves. Need an Elastic Currency. Every consideration of prudence de mands the addition of the element of elasticity to our currency system. The evil does not consist in an inadequate volume of money, but in the rigidity of this volume, which does not respond as it should to the varying needs of com munities and of seasons. Inflation must be avoided; but some provision should be made that will insure a larger volume of money during the fall and winter months than In the loss active seasons of the year; so that the currency will contract against speculation, and will expand for the needs of legitimate bus iness. At present the treasury depart ment is at Irregularly recurring inter vals obliged, in the interest of the bus iness world—that is, in the interests of the American public—to try to avert financial crises by providing a remedy which should be provided by congres sional action. Scrutinize Campaign Gifts. I desire to repeat this recommendation: In political campaigns in a country as large and populous as ours it is inevit able that there should be much expense of an entirely legitimate kind. This, of course, mean;; that many contributions, and some of them of largo size, must be made, and, as a matter of fact, in any big political contest such contributions are always made to both sides. It is entirely proper both to give anc* receive them, unless there' is an improper motive connected with either gift or reception. If they are extorted by any kind of pres sure or promise, express or implied, di rect or indirect in the way of favor or immunity, then the giving or receiving becomes not only improper but criminal. It will undoubtedly be difficult as a matter of practical detail to shape an act which shall guard with reasonable certainty against such misconduct: but if it is possible to secure by law the full and verified publication in detail of all the stuns contributed to and expended by the candidates or committees of any political parties, the result can not but be wholesome. Stop Insurance Campaign Funds. All contributions by corporations to any political committee or for any political purpose should be forbidden by law; di rectors should not be permitted to use stockholders’ money for such purposes; and, moreover, a prohibition of this kind would be, as far as it went, an effective method of stopping the evils aimed at In corrupt practices acts. Not only should both the national and the several state legislatures forbid any officer of a corpo ration from using the money of the corporation In or about any election, but they should also forbid such use of money in connection with any legislation save by the employment of counsel in public manner for distinctly legal serv ices. Takes Up Peace Question. More and more war Is coming to be looked upon as In Itself a lamentable and evil thing. A -wanton or useless war, or a war of mere aggression—In short, any war begun or carried on in a conscience less spirit, is to be condemned as a pecu liarly atrocious crime against all hu manity. Whenever it is possible for a nation or an individual to work for real peace, assuredly it is failure of duty not so to strive; but if war Is necessary and righteous then either the man or the nation shrinking from it forfeits all title to self respect. Wo have scant sympathy with the sentimentalist who dreads op pression less than physical suffering, who would prefer a shameful peace to the pain and toil sometimes lamentably nec essary in order to secure a righteous peace. International Arbitration. Very much can be done through another Hague conference in this direction, and I most earnestly urge that this nation do all in Its power to try to further the move ment and to make the result of the de cisions of The Hague conference effective. I earnestly hope that the conference may be able to devise some way to make arbi tration between nations the customary way of settling international disputes In all save a few classes of cases, which should themselves be as sharply defined and rigidly limited as the present gov ernmental and social development of the world will permit. If possible there should be a general arbitration treaty negotiated among all the nations represented at the conference. The Monroe Doctrine. One of the most effective instruments for peace is the Monroe doctrine as it has been and is being gradually developed by this nation and accepted by other na tions. No other policy could have been Vs efficient in promoting peace In the western hemisphere and In giving to each nation thereon the chance to develop along its own lines. If we had refused to apply the doctrine to changing conditions it would now be completely outworn, would not meet any of the needs of the present day, and indeed would probably by this time have sunk into complete oblivion. That our rights and interests are deep ly concerned in the maintenance of the doctrine is so clear as hardly to need argument. This is especially true in view of the construction of the Panama canal. As a mere matter of self-defense we must exercise a close watch over the approaches to this canal; and this means that we must be thoroughly alive to our interests in the Caribbean sea. Not a Means of Aggression. There are certain essential points which must never be forgotten as regards the Monroe doctrine. In the first place we must as a nation make it evident that we do not intend to treat it in any shape or way as an excuse for aggrandizement on our part at the expense of the republics to the south. \Y> must recognize the fact that in some South American countries there has been much suspicion lest we should interpret the Monroe doctrine as in some way inimical to their interests, and wc must try to convince all the other na tions of this comment once and for all that no just and orderly government has anything to fear from us. Can’t Use It as a Shield. Moreover, we must make it evident that we do not intend to permit the Monroe doctrine to be used by any nation on this continent as a shield to protect it from the consequences of its own misdeeds against foreign nations. If a republic to the south of us commits a tort against a foreign nation, such as an outrage against a citizen of that nation, then the Monroe doctrine does not force us to in terfere to prevent punishment of the tort, save to see that the punishment does not assume the form of territorial occupation in any shape. On the on** hand, this country would certainly decline to go to war to prevent a foreign government lium collecting a just debt; on the other hand, it is very inadvisable to permit any foreign p >wer to take possession, even temporarily, of the custom houses of an American republic m order to en force the payment of its obligations; for such temporary occupation might turn into a permanent occupation. The only escape from these alternatives may at any time be that we must ourselves un dertake to bring about suine arrangement by which so much as possible of a just obligation shall be paid. If is far bet ter that this country should put through such an arrangement, rather than allow any foreign country to undertake it. The lisrrto Domingo Question. Santo Domingo, in her turn, has now mane an appea: to us to help her, and not only e\cry principle 01 wisdom but every generous instinct wiUim us bids us n spunu iu the appeal. i. is not ul tile .^.jglitest consequence whether we grant tin aid needed uy Samo Domingo a- ail incicK.ni cO the wise eleven.),mienc oi the Monroe doctrine, or be.ause we lcgaid me rasi of Santo Domingo as stanuing wholly by itself, and to bo treated as such, and not on general priiieip.es or with any reference to the Monroe doc trine. The conditions in Santo Domingo have fv-r a number of years grown from bad to worse until a year ago aii society was on the verge oi dissolution, for tunately, just at this time a ruler sprang up in Santo Domingo, who, with his colleagues, saw the dangers threatening their country and appeared to the friend ship of the on;y grea. and powerful neighbor who possessed the power, and as they hoped u.-so the will to help them. There was imminent danger of foreign intervention. The previous rulers of San to Domingo had recklessly incurred debts, and owing to her internal disorders she bad ceased to be able to provide means of paying the debts. The patience of her foreign creditors had become exhausted, and at least two foreign nations were on the point of Intervention, und were only prevented from intervening by the un official assurance of this government that it would Itself strive to help Santo Do mingo in her hour of need. In the case of one of these nations, only the ac tual opening of negotiations to this end by our government preveqted the seizure or territory In Santo Domingo by a Eu ropean power. Of the debts Incurred some were just, while some were not of a character which really renders it obli gatory on. or proper tor, feanto Domingo to pay them in full. But she could not pay any of them unless some stability was assured her government and people. Asks Support for Treaty. Accordingly the executive department of our government negotiated a treaty under which we are to try to help the Dominican people to straighten out their finances. This treaty is pending before ; the senate. In the meantime a temporary [ arrangement has been made which will last until the senate has had time to take action upon the treaty. Under this j arrangement the Dominican government l has appointed Americans to all the im ; portant positions in the customs service, and they are seeing to the honest collec tion of the revenues, turning over 45 per cent, to the government for running ex penses and putting the other 55 per cent, into a safe depository for equitable divi sion in case the treaty shall be ratified, among the various creditors, whether European or American. This has completely discouraged all rev olutionary movement, while It has al ready produced such an Increase in the revenues that the government is actually getting more from the 45 per cent, that the American collectors turn over to It than It got formerly when It took the entire revenue. It is enabling tho poor harassed people of Santo Domingo once more to turn their attention to industry and to be free from the curse of inter minable revolutionary disturbance. There Is, of course, opposition to the treaty from dishonest creditors, foreign and American, and from the professional revolutionists of the island Itself. The Army and Navy. We cannot consider the question of our foreign policy without at the same time treating of the army and navy. Wo now have a very small army—Indeed, one well nigh infinitesimal when compared with the army of any other large nation. Of course tho army we do have should be as nearly perfect of its kind and for its size as is possible. I do not believe that any army in the world has a better aver age of enlisted man or a better type of Junior officer; but the army should bo trained to act effectively In a mass. Pro vision should be made by sufficient appro priations for maneuvers of a practical kind so that the troops may learn how to lake care of themselves under actual service conditions. The number of posts in which the army is kept in time of peace should be mate rially diminished and tho posts that are left made correspondingly larger. To accomplish this end we must have not company or regimental garrisons, but brigade and division garrisons. For a Big Navy. Our navy must, relatively to tho navies of other nations, always be of greater size than our army. We have most wisely con tinued for a number of years to build up our navy, and It has now reached a fairly high standard of efficiency. This stand ard of efficiency must not only be main tained, but increased. It does not seem to mo necessary, however, that the navy should—at least in tho immediate future— be increased beyond the present number of units. What is now clearly necessary is to substitute efficient for inefficient units as the latter become worn out or as it be comes apparent that they are useless. Probably the result would be attained by adding a single battle ship to our navy each year, the superseded or outworn ves sels being laid up or broken up as they are thus replaced. Publio Land Laws. One again I call your attention to the condition of the public land laws. Recent developments have given new urgency to I the need for such changes as will fit these laws to actual present conditions. The honest disposal and right use of the re maining public lands is of fundamental im portance. The iniquitous methods by which the monopolizing of the public lands is being brought about under the present laws are becoming more generally known, but the existing laws do not furnish effective remedies. The recommendations of the public lands commission upon this subject are wise and should be given effect. As to the Grazing Land Claim. The greater part of the remaining public lands cannot be Irrigated. They are at present and will probably always be of greater value for grazing than for any other purpose. This fact has led to the grazing homestead of 640 acres In Ne braska and to the proposed extension of It to other states. It is argued that a family can not be supported on 160 acres of arid grazing land. This is obviously true; but neither can a family be supported on 640 acres of much of the land to which it is proposed to apply the grazing homestead. To establish universally any such arbitrary limit would be unwise at the present time. It would probably result on the one hand in enlarging the holdings of some of tho great land owners, and on tho other In needless suffering and failure on the part of a very considerable proportion of the bona fide settlers who give faith to the im plied assurance of the government that such an area is sufficient. The best use of the public grazing lands requires the careful examination and class ification of these lands in order to give each settler land enough to support Ills family and no more. While this work is being done, and until the land# are set tled, the government should take control of the open range, under reasonable regu lations suited to local needs, following the general policy already in successful opera tion on the forest reserves. It is probable that the present grazing value of the open public range is scarcely more than half what it once was or what it might easily be again under careful regulation. Favors Merchant Marine. To the spread of our trade in peace and the defense of our flag in w'ar a great and prosperous merchant marine is indispensi ble. We should have ships of our own and seamen ol’ our own to convey our goods to neutral markets, and in case of need to reenforce our battle* line. It can not but be a source of regret and Uneasiness to us that the lines of communication with our | sister republics of South America should i be chiefly under foreign control. It is not a good thing that American merchants ana manuiucturers should have to send their goods and letters to South America via Europe if they wish security and dis patch. Even on the Pacific, where our ships have held their own better than on the Atlantic, our merchant flag is now threatened through the liberal aid be- | stowed by other governments on their own steam lines. I ask your earnest consider ation of the report with which the Mer chant Marine commission has followed its long anti careful inquiry. The Immigration Question. The question of immigration is of vital interest to this country. In the year end ing June :«0, iy05, there came to the United Stale# 1,026,000 alien immigrants. In other words, in the single year that has just [ elapsed there came to this country a greater number of people than came here j during the one hundred and sixty-nine j years of our colonial life which inter vened betwe- n the first landing at James town and the Declaration ot Independ ence. it is clearly shown in the report of the.commissioner- general of immigration t that white much of this enormous imml | gration is undoubtedly healthy and natur al, a considerable proportion is undesirable i from one reason or another; moreov* r, a ; considerable proportion of it, probably a very huge proportion. Including most of I the undesirable class, docs not come her.* of its own initiative, but because of the activity of the agents of the great trans portat.on companies. These agents are distributed throughout Europe, and by the oner of all kinds of inducements they wlicedse and cajole many immigrants, oi ten against their last interest, to come litre. T he Chinese Question. The questions arising in connection with Cliiiiet-.c immigration stand by them selvc.-. The conditions in China are such j that the entire Chinese coolie class, that is, the elu.s of Chinese laborers, skilled and unskilled, legitimately come under the head of undesirable immigrants to | this count!y, because of their numbers, the low wages for which they work, and their h w Mandat’d of living. Not only is it to the interest of this country tv/'keep them out, but the Chinese authorities do not desire mat they should be admitted. At present their entrance Is prohibited by law's amply adequate to accomplish * ID is purp.se. Those laws have been, are being, and will be, thoroughly enforced. The violation* of them are so few in number as to be inflnAcsimal and can be entirely disregarded. There is no serious proposal to alter the Immigration law us regards the Chinese laborer, skilled or unskilled, and there 13 no excuse for any man feeling or affecting to feel the slightest alarm on the subject. Fcr Pure Food Law. 1 recommend that a law be enacted to regulate Interstate commerce In mlsbrawl v ed and adulterated foods, drinks, and drugs. Such law would protect legiti mate manufacture and commerce, and would tend to secure the health and wel fare of the consuming public. Traffic In foodstuffs which have been debased or adulterated so as to Injure health or to de ceive purchasers should be forbidden. Tho Indian Question. During the year just past, the phase of the Indian question which has been most sharply brought to public attention Is the larger legal significance of the Indian’s induction into citizenship. This has made itself manifest not only In a groat excess of litigation in which the citizen Irdian figures as a party defendant and in a more widespread disposition to levy local taxa tion upon his personality, but in a decision of the United States supreme court which struck away the main prop on which has hitherto rested tho government’s benevo lent effort to protect him against the evils of intemperance. Tho court holds, in ef fect. that when an Indian becomes, Ly virtue of an allotment of land to him, a Citizen of the state in which his land Is sit uated, he passes from under federal con trol In such matters as this, and the acts of the congress prohibiting the sale or gift to him of intoxicants become substan tially inoperative. It Is gratifying to note that the states and municipalities of the west which have most at stake in the wel fare of tho Indians are taking up this sub ject and are trying to supply, In a measure at least, the abdication of its trusteeship forced upon the federal government. Nevertheless, I would urgently press upon the attention of the congress the question whether some amendment of the internal revenue laws might not be of aid in prosecuting those malefactors, known in the Indian country at ’’bootleggers,” who are engaged at once in defrauding the United States treasury of taxes and, what is far more important, in debauching tho Indians by carrying liquors illicitly Into territory still completely under federal jurisdiction. Among the crying present needs of the Indians are more day schools situated in the midst of their settlements, more ef fective instruction In the industries pur sued on their own farms, and a more lib eral extension of the field-matron service, which means tho eduoation of the Indian women in the arts of home making. The Philippines. During the last year the Philippine Islands have been slowly recovering from tho series of disasters which, since Amer ican occupation, have greatly reduced the amount of agricultural products below what was produced in Spanish times. Tho war, the rinderpest, the locusts, tho drought, and the cholera have been unit ed as causes to prevent a return of the prosperity much needed In tho Islands. The most serious is tho destruction by tho rinderpest of more than 75 per cent, of the draft cattle, because It will take several years of breeding to restore tho necessary number of theso Indispensable aids to agriculture. Would Reduce Tariff. Tho agricultural conditions of the Islands enforce more strongly than ever tho uigument in favor of reducing the tariff on tho products of the Philippine islands entering tho United States. I earnestly recommend that the tariff now Imposed by the Dingley hill upon tho products of tho Philippine islunds be entirely removed, except the tariff on sugar and tobacco, and that that tariff bo reduced to 25 per cent, of the present rates under tho Dingley act; that after July 1, 1909, tho tariff upon tobacco and sugar produced In the Philippine islands be entirely removed, and that free trade between the Islands and the United Stutes In the products of each country then be provided for by law. A statute in force, enacted April 15. 1904, suspends the operation of tho coast wise laws of the United States upon the trade between the Philippine Islands and the United States until July 1, 190G. I earnestly recommend ‘hat this suspen sion be postponed until July 1, 1909. Would Fortify Hawaii. In my judgment Immediate steps should be taken for the fortification of Hawaii. This is the most important point in the Pacific to fortify In order to conservo the Interests of this country. It would be hard to overstate the importance of this need. Hawaii is too heavily taxed. Daws should be enacted setting aside for a period of, say, twenty years 75 per cent, of the internal revenue and customs receipts from Hawaii as a spe cial fund to be expended in the islands for educational and public buildings, and for harbor Improvements and military and naval defenses. It cannot be too often repeated that our aim must bo to develop the territory of Hawaii on tra ditional American lines. Citizenship for Porto Ricans. I earnestly advocate the adoption of legislation which will explicitly confer American citizenship on all citizens of Porto Rico. There Is, In my judgment, no excuse for failure to do this. The harbor of San Juan should be dredged and improved. The expenses of tho fed eral court of Porto Rico should be met from the federal treasury, and not from the Porto Rican treasury. Tho elections In Porto Rico should take place every four years, and tho legislature should meet In session every two years. The present form of government In Porto Rico, w'hich provides for the appointment by tho president of the members of the executive council or upper house of the legislature, has proved satisfactory and has inspired confidence in property own ers and investors. I do not *deem it ad visable at the present time to change this form in any material feature. The problems and needs of the island aro In dustrial and commercial rather than po litical. Needs of Alaska. I earnestly ask that Alaska be given an elective delegate. Some person should be chosen who can speak with authority of the needs of the territory. The gov ernment should aid in the construction of a railroad from the gulf of Alaska to the Yukon river, In American territory. In my last two messages 1 advocated certain additional action on behalf of Alaska. I shall not now repeat those recommendations, but I shall lay all my stress upon the one recommendation of giving to Alaska some one authorized to speak for it. I should prefer that the delegate was made elective 'but If this is not deemed wise then make him ap pointive. The Panama Canal. The treaty between the United States and the republic of Panama, under which the construction of the Panama canal was made possible, went into effect with its ratification by the United States senate on February 23, 1904. The canal properties of the French Canal company were trans ferred to the United States on April 23, 1904, on payment of $40,000,000 to that com pany. On April 1. 190T>, the commission was reorganized, and it now consists of Theodore P. Shonts, chairman, Charles K. Magoon, Benjamin M. Harrod. Rear-Ad miral Morderai T. Endicott, Brigadier Gen eral Peter C. Ha ins. and Colonel Oswald H. Ernst. John F. Stevens was appointed chief engineer on July 1 last. Active work in canal construction, mainly, preparatory, lias been in progress for less than a year Mid a half. During that period two points about the canal have ceased to be open to debate. First, the question of route; the canal will be built on th-o Isthmus of Panama. Second, the question of feasibil ity; there are no’physical obstacles on this route that American engineering skill will not b«* able to overcome without serious difficulty, or that will prevent th-e comple tion of the canal within a reasonable time and at a reasonable cost. This is virtually the unanimous testimony of the engineers who have investigated the matter for the government. Must Build It Rapidly. The American people is pledged to the speediest possible construction of a canal adequate to meet the demands which the comnn ice of the world will make upon it. ami i appeal most earnestly to the con gress to in the fulfillment of the pledge. Gratii.vii.g progress has been made during Liu- past year and especially during the past four mouths. What is needed now and without delay is an appropriation by the congress to meet the current and accruing expenses of the commission. The first appropriation of $10,0UU,c(X), out of the $135,000,000 authorized by the Spooner act, was made three years ago. It is nearly exhausted. There is barely enough of it remaining to carry the commission to the end of the year. Un less the congress shall appropriate before that time all work must cease. To arrest progress for any length of time now, when matters are advancing so satisfactorily, would be deplorable. Theodore Roosevelt. The White House. December B, 190a. Norfolk. Va., shipped recently the largest single cargo 6f lumber ever sent out—1,250,000 feet of .North Carolina pin* for New* York *vms. USUAL SCENES AT OPTIC SESSION Hepburn of Iowa Has the Honor of Nominating Speaker Can non for Re-Election. QUORUM IN ATTENDANCE Roth Houses Have Requisite Majority —Large Number of Biiis Introduced Senato Adjourns at 12:30 O’Clock. Washington, D. C„ Dec. 6.—The first! session of the Fifty-ninth congress, convened Monday. At high noon Vice President Fairbanks called the senate, to order, whllo the house was called to order by Clerk McDowell. The Fifty-ninth congress has beenj looked forward to as one likely to be more than ordinarily eventful. Pend ing matters of commercial and political. Interests have proved Intensely attrac tive during the long recess. Matters to be urged upon congress include the. questions of railroad rate legislation, ^ protecting Interests of policyholders Ini insurance companies, statehood for the> remaining territories. Panama canal! construction. Immigration, treatment of Chinese, raising revenue against a pos-j sible deficit, control of corporations, engaged in Interstate business, corrupt use of money at elections, the Philip pines, Santo Domingo and the tariff question. Proceedings in House, Preceding the formal opening of the; house, there were scenes of increasing! animation on the floor and in the gal-! lerles. Legislative veterans exchanged! cordial greetings and newly elected! members made acquaintances. Hundreds of public bills had beenj placed In a basket on the clerk’s desk, before 11 o'clock. Speaker Cannon held an enthusias tic reception In his office. Members of both political parties went to see him! and extend congratulations. A half hour before noon there was not an, empty seat In the galleries and long: lines had formed in the corridors. Exactly at noon Clerk McDowell! called the house to order. He an nounced prayer by Chaplain Couden. j Roll call by states to show the presence of a quorum was at once begun. j Hepburn of Iowa to the Fore. At the conclusion of the roll call the clerk announced 264 members present, j a quorum of the Fifty-ninth congress. Speaker Cannon was placed In nomi nation for speaker by Hepburn of Iowa, and the first applause of the session, followed. Williams, of Miss., was noml-, nated on behalf of the minority by Henry, of Texas, provoking democratic! applause. Neither made nominating speeches and the roll call for speaker at once proceeded. Cannon, 243; Williams, 128. Cannon received 243 votes and Wil liams 128. Cannon was brought Into the hall and escorted to his chair amidst a round of applause from both sides and galleries. After accepting the position In a few appropriate words, Cannon took the oath of office, which was administered by Bingham of Pennsylvania, father of the house. The speaker then admin istered the oath to all members. Hepburn Introduces Bill. Representative Hepburn today Intro duced a bill to amend the Panama canal law so as to facilitate sale of bonds and appropriating $16,500,000 to be immediately available for canal con struction. The Day in the Senate. Washington, Dec. 6.—It was a fam iliar scene when Vice Presluent Fair banks called the senate to order. There were few changes in membership. Death had taken away Senators Bates of Tennessee and Platt of Connecticut. There were no changes among the sen ate officials. The public galleries were well oc cupied as early as 10 o'clock. Several members of the diplomatic corps were present. Chaplain Edward Everett Hale mads the opening prayer. He referred briefly to the months since the senate had - been In session and to the work before members. He concluded by asking the senate to join with him in the Lord’s prayer. Sixty-eight senators responded to roll call and th" vice president an nounced the senate was ready to trans- , act business. At 12:20 the senate adjourned as a mark of respect to the late Senator Platt of Connecticut. PAT CROWE ON TRIAL j Large Crowd of Curious Spectator* Assemble in the Court Room at Omaha. Omaha, Neb., Doc. 6.—Pat’ Crown, charged with shooting Policeman A.', H. Jackson with intent to kill, was; brought to trial at 11 o'clock this morn-, lng before Judge Day in the criminal; court. The work of empaneling the, jury occupied the entire _ session andj the jurors have not bee.4 selected asl yet. The better class of citizens are' , averse to serving at Crowe’s trial. When Crowe was brought in, the court room was crowded with specta-i tors, ill of whom were men, excepting; one woman. Crowe was dressed as immaculately as usual, in a new suit of clothes and new shoes. He was brought in by the jailer and two deputies whoi stood guard during the entire proceed-; irgs. No intimation has been made asi to what the defense will be. The crime with which Crowe is; charged was committed on the night off September