TAFTS MESSAGE IS
SENT TO CONGRESS
Currency Reform, Waterways, Creation of Body
to Deal With Interstate Commerce
and Other Topics Handled.
Government Expenditures and Revenues a Most Important Question
Relations with Other Nations, Nicaragua Excepted,
v Are Declared To Be Generally Satisfactory.
Washington, Dec. 7. The president
today transmitted to congress a mes
sage substantially as follows:
To the Senate and House of Repre
sentatives: The relations of the United States with
all foreign governments liuve continued
upon the normal basis of utility and good
understanding, and are very generally
utUUctury.
Europe.
Pursuant to the provisions of the gen
eral treaty of arbit i utlvti concluded, be
tween lliu United Sutcs und Oreat Bri
tain, April 4, llHS. a special Utficement
was entered Into between the twu coun
tries on January 27, l'JU'J, fur the subinls-
lun of questions relating to the fisher
ies on the North Atlantic coast to a tribu
nal to be formed from members of the
permanent court of arbitration at The
Hague.
In uernrdnnce with the provisions of
the special agreement the printed rase
of each government wan, on October 4
lust, submitted to the other and to the
urbitral tribunal at The Hague., and the
counter cane of the United States Is now
In course of preparation.
The American rights under the fisher
ies article of the tieaty of 1M8 have been
a cause of difference between the United
Ktatc and Great Itrituin for nearly 70
years. Tho Interests Involved are of
gnat Importance, to the American tlshlnif
Industry, and the llnal settlement of the
controversy will remove a source of con
tant Irritation and complaint. This Is
the flist case Involving such great In
ternational questions which bus been sub
mitted to the permanent court of arbitra
tion at Tho Hague.
The president tells of the sending
of a commission to Investigate the
Interests of the United States and Its
citizens la Liberia, the commission's
report now being under examination
ty the department of state.
He also notes the Invitation extend
ed by the Norwegian government to
take part In an International confer
ence next year to devise means to
remedy existing conditions in tho
Spltzbergen Islands, and of Its accept
ance under cortaln reservations. Men
tion Is made tf several international
conferences, and then tho president
urges that provision be made for
American participation in the world's
fair at lirussels next yenr. The ques
tions nrlsing out of the Belgian an
nexation of the Congo Free State, bo
says, are in a more hopeful stage.
Latin America.
The message speaks with enthusi
asm of the settlement of the boun
dary dispute between Bolivia and
I'eru, and of the fourth Pan-American
conference, to be held In Buenos Aires
oext July. Mention Is made of the
Argentine republic's great Internation
al agricultural exhibition, which Is to
open In May, 1910, and the president
continues:
To-duy, more thnn ever before, Ameri
can capital Is seeking Investment in for
eign, countries and American products are
more and more generally seeking foreign
markets. As a consequence; in ull coun
tries there are American citizens and
American Interests to be protected, on
occasion, by tholr government. These
movements of men, of capital and of
commodities bring peoples and govern
ments closer together and so form bonds
of peace and mutual dependency, as they
must also naturally sometimes make
passing points of friction. The resultant
situation Inevitably Imposes upon this
government vnstly Increased responsibili
ties. This administration, through the
department of state and the foreign ser
vice. Is lending all proper support to le
gitimate and beneficial American enter
prises In foreign countries, the degree of
such support being measured by the na
tlonal advantages tq be expected. A cltl
ten himself cannot by contract or other
wise divest himself of tho right, nor can
this government escape the obligation of
his protection In his personal and prop
erty rights when these are unjustly In
fringed In a foreign country. To avoid
ceaseless vexatious It Is proper that In
considering whether American enterprise
should be encouraged or supported in a
particular country, the government
should give full weight not only to the
national, as opposed to the Individual
benefit to accrue, but also to the fact
whether or not the government of the
country In question Is In Its administra
tion and In Its diplomacy faithful to
the principles of moderation, equity and
Justice upon w hich alone depend Interna
tlonal credit, In diplomacy as well as In
finance.
Tho Pan-Amcrlcnn policy of this govern
ment has long been llxcd In tts principles
and remains unchanged. With the
changed circumstances of the I'nlted
States and of the republics to the south
of us, most of which have great natural
resources, stable government and pro
creBSlve Ideals, the apprehension which
gave rise to the Monroe doctrine may bo
aid to have nonrly disappeared and nei
ther the doctrine as It exists nor any oth
r doctrine of American policy should be
permitted to operate for the perpetuation
Of Irresponsible government, the escape
of just obligations or the Insidious allega
tion of dominating ambitions on the part
of the united States.
Beside the fundamental doctrines of our
JPan-Amerlcan policy there have grown
up a realization of political Interests,
community of Institutions and Ideals ami
a flourishing commerce. All these bonds
will be greatly strengthened as time goes
on and Increased facilities, such as the
great bank aoon to be established In
Latin America, supply the means for
building up the colossal Intercontinental
commeice of the future.
My meeting with President Diss and
the greeting exchanged on both American
and Mexican soli served, I nope, to stg
nallze the close and cordial relation
which so well bind together this republic
and the great republic Immediately to the
south, between which there la so vast
network of material Interests.
) am happy W Mr that til but on ei
the cases which for so long vexed our
relations with Venezuela have been set
tled within the past few months and that,
under the enlightened regime now direct
ing the government of Venezuela, provi
sion lias been made for arbitration of the
remaining case before The Hague tri
bunal. On July 30, 1900, the government of
Panama agreed, after considerable nego
tiation, to indemnify the relatives of the
American olllcers and sailors who were
brutally treated, one of them having, In
deed, been killed by the 1'unumu police
this year.
The sincere desire of the government of
Panama to do away with a situation
where such an accident could occur Is
manifest In the recent request In compli
ance with which this government has
lent the services of an olllcer of the army
to be employed by the government of
Panama as Instructor of police.
This government was obliged to Inter
vene diplomatically to bring about arbi
tration or settlement of the claim of the
Kmery Company ngnlnst Nicaragua,
which It had long before been agreed
should be arbitrated. A settlement of
this troublesome case was reached by
the signature of a protocol on September
II, 1509.
Many yenrs ago diplomatic Intervention
became necessary to tho protection of the
Interests In tho American claim of Alsop
& Co. ng-ilnst the government of Chllfl.
The government of Chile hud frequently
admitted obllgutlon In the case and hud
promised this government to settle It.
There had been two abortive attempts to
do so through arbitral commissions,
which failed through lack of Jurisdiction.
Now, happily, as the result of the recent
diplomatic negotiations, the governments
of the United States and of Chile, actu
ated by the sincere desire to free from
any strain those cordial and friendly re
lations upon which both set such store,
have agreed by a protocol to submit the
controversy to dcllnltlve settlement by
bis Britannic majesty, Edward VII.
Since the Washington conventions of
1007 were communicated to the govern
ment of the United States as a consult
ing and advisory party, this government
has boon almost continuously called upon
by one or another, and In turn by all of
the five Central American republics, to
exort Itself for the maintenance of the
conventions. Nearly every complaint has
been against the Zelnya government of
Nicaragua, which has kept Central
Amerea In constant tension and turmoil
The responses mnde to the represcntn-
tlon of Central American republics, as
due from the United Stntes on account
of Its relation to the Washington conven
tions, have been at all times conservative
and have avoided, so far as possible, any
emblnnre ef Interference, although It Is
very apparent that the considerations of
geographic proximity to the Canal Zone
and of the very substantial American In
terests In Central America glvo to the
United Stntes a special position In the
tone of these republics and the Carlb
bean sea.
I need not rehearse here the patient ef'
forts of this government te promote
peace and welfare among these republics
efforts which are fully appreciated hy
the majority of them, who are loyal to
their true Interests. It would be no less
unnecessary to rehoarse here the sad
tale of unspeakable barbarities and op
presslon alleged to have been committed
by the Zelnya government. Kccently two
Amerlrnns were put to death by order of
President Zelnya himself. They were of
fleers In tho organized forces of a revo
lutlon which had continued many weeks
and was In control of about half of the
republic, and as such, according to the
modern enlightened practice of civilized
nations, they were entitled to be dealt
with as prisoners of war.
At the date when this message Is print
d this government has terminated dip
lomatlc relations with the Zelnya govern
ment, for reasons made public In a com
munlratlon to the former Nicaragua
charge d affaires, and Is Intending to take
such future steps as may be found most
consistent with Its dignity, Its duty to
American Interests and Its moral obllga
lions to Central America and to clvlltza'
tlon.
The Far East,
In the far east this government pre-
serves unchanged Its policy of support
Ing the principle of equality of opportu
nlty and scrupulous respect for the Integ
rlty of the Chinese empire, to which pol
Icy are pledged the Interested powers of
both east and west.
Mention Is made of the sending of
studeuts to America by tho Chinese
government, of China's progress
toward the eradication of the opium
evl and of this government's con
tlnued cordial relations with the Jap
anese empire.
The Department of State.
Favorable action by congress on the
estimates submitted by the deport
ment of state is urged, especially legis
lation for the development und reor
ganization of the department to make
It efficient in furthering our foreign
trade. Improvement In the consular
service Is noted. Mr. Taft then says:
Under a provision of the act of Au
gust 5. 1909, I have appointed three
officials to assist the officers of the
government In collecting Information
necessary to n wise administration of
the tnriff act ef August 6, 1903. As to
questions of customs administration
they are cooperating with the officials
of the treasury department and aa to
matters ef the needs and the exigen
cies of our manufacturers and export
ers, with the department of commerce
and labor. In Its relation to the domes
tin aspect of the subject of foreign
commerce. In the study of foreign
tariff treatment they will assist the
bureau of trade relations of the de
partment of state. It It hoped thus te
co-ordinate and bring to bear upon this
most Important subject all the agencies
of the government which can contrib
ute tnythlag to Its efficient handling.
As a consequence of Section 2 of
the tariff act of August S. 1909, It be
comes the duty of the secretary of
state to conduct as diplomatic, business
all the negotiations necessary to plaee
him In a position to advise me as to
whether or not a particular country
unduly discriminates against the
Hnlted Ptats In ttt sen ef the stat
ute referred to. Tho great scope and
omplexlty of this work, as well as
the obligation to lend all proper aid
to our expanding- commerce, It met by
the expansion of the bureau of trade
relations as set forth In the estimates
for the department of state.
Government expenditures and Reve
nues.
Perhaps the most Important question
presented to this administration Is that
of economy In expenditure and auftl-
lency of revenue. The deficit of the
last fiscal year, and the certain deficit
of the current year, prompted congress
to throw a greater responsibility on
the executive and the secretary of the
reasury than hnd heretofore been de-
lareit by rtatute. Tills declaration
Imposes upon the secretary of the
treasury the duty of assembling all the
estimates of the executive departments
bureaus, and offices, of the expondl-
ures necessary In the ensuing fiscal
year, and of making an estimate of
the revenue of the government for
the same period; and if a probable
deficit Is thus shown, It Is mnde the
duty of the president to recommend
the method by which such deficit can
be met.
The report of the secretary shows
that the ordinary expenditure for the
current fiscal yenr ending June 30. 1910,
will exceed the estimated receipt by
4. 075.620. If to this deficit Is added
the sum to be disbursed for the Pan
ama Cnnnl. amounting to JUS. 000.000,
and 11,000,000 to be paid nn the public
debt, the deficit of ordinary receipts
and expenditures will he Increased to
a total deficit of J73.075.C20. This de
ficit the secretary proposes to meet by
the proceeds of bonds Issued to pay
the cost of constructing the Panama
Canal. .1 approve this proposal.
The policy of paying for the con
struction of the Panama Canal, not out
of current revenue, but by bond Issues.
was adopted In tho Sponner act of
1890. and there seems to be no good
reason for departing from the prin
ciple by which a part nt least of the
burden of tho cost of tho canal shall
fall upon our posterity who are to en-
Joy It; and there Is all the more rea
son for thl view because the nctual
cost to date, of the cnnnl. which Is now
half done nnd which will be completed
nnunry 1. 1915, shows that the cost of
engineering nnd construction will be
1297.7nii.000. Instcnd of I139.70a.200. as
orlglnnlly estimated. In addition to
engineering nnd construction, thn other
expenses, Including sanitation and gov
ernment, nnd tho amount paid for the
properties, thn franchise, and the privi
lege of building the canal, Increase the
cost of J75.43S.noo, to a total of 1375.-
201.000. The Increase In the cost of
engineering nnd construction is due to
substantial enlargement of the plan
of construction by widening the canal
100 feet In the Culehra cut nnd by In
creasing the dimension of the locks
to the underestimate of the quantity of
the work to be done under the orlg
Inal plan, nnd to an underestimate of
the cost of labor and materials, both of
which have greatly enhanced In price
since the original cstimmnto was made.
In order to avoid a diflclt for tho
ensuing fiscal yenr, I directed the
heads of departments In tho prepara
tlon of their estimate to make them
as low as possible consistent with Im
perntlve governmental necessity. The
result hn been, ns I am advised hy the
secretary of the treasury, that the es
tlmates for the expenses of the gov
rnment for the next fiscal year end-
Ins; June 30. 1911, are less than the ap
proprlatlons for this current fiscal
year by I42.81S.000. So far as the sec
retnry of the treasury Is ablo to form
a Judgment n to future Income and
compare It with the expenditures for
the next fiscal year ending June 30.
1911, and excluding payment on ac
count of the Tnnnma Cnnnl. which will
(lonhtleBs be taken up by bonds, there
will he a surplus of $35,931,000.
In the present estimate the need
of the departments and of the govern
ment have been cut to the quick, so to
speak, nnd any assumption on the
part of congress, so often made In
times past, that the estimates have
been prepared with the expectation
that they may be reduced, will result
In seriously hampering proper admin
lstraflon.
To reduce the cost of permanent
administration, says tho president, a
thorough reorganization of bureaus
offices and departments would be nec
essary. An expert accountant has
been making nn investigation into this
matter and the result of his work
shows opportunity for both substan
tial reductions in cost and Increase of
efficiency.
Frauds in the Collection of Customs
I regret to refer to the fart of the dls
covery of extensive frauds In the collec
tion of the customs revenue nt New York
city, In which a number of the subor
dlnate employes In the weighing and
other departments were directly con
rerned. and In which the beneficiaries
were the American Sugar Refining Com
pany and others. The frauds consisted
In the payment of duty on underweight
of sugar. The government has recovered
from the American Sugar Kenning Com
oanv all that It Is shown to have been de
frauded of. The sum was received In full
of the amount due. which might hnve
been recovered by civil suit ngainst the
beneficiary of the fraud, but there was
nn express reservotlon in thn contract of
settlement by which the settlement should
not Interfere with, or prevent the crim
inal prosecution of everyone who wn
found to be sublect to the same.
Criminal prosecutions lire now proceed
ing against n number of thn government
officers. The treasury department and the
Cepnrtment of Justice arc exerting every
effort to discover all the wrongdoers, In
eluding the officers and employes of the
companies who may hnve been privy to
the fraud. It would seem to me that an
Investigation of the frauds hy congress at
present, pending the probing by the treas
ury department nnd the department of
Justice, as proposed, might by giving Im
munity nnd otherwise prove an embar
rassment In securing conviction of the
guilty parties.
Maximum and Minimum Clause In
Tariff Act.
Two features of the new tariff act call
for speclul reference. Hy virtue of the
clause known as the "maximum nnd min
imum" clause, tt Is the duty of the exec
utive to consider the laws end practices
of other countries with reference to the
Importation Into those countries of the
products and merchandise of the United
States, and If the executive finds such
laws and practices not to be unduly dis
criminatory against the I'nlted 8tates, the
minimum duties provided In the bill are
to go Into force. Unless the president
makes such a finding, then the maximum
duties provided In the bill, that Is, an In
crease of 25 per cent, ad valorem over the
minimum duties, are to be In force. Fear
has been expressed that this power con
ferred and duty Imposed on the execu
tive Is likely to lend to a tariff war. I
beg to express the hope and belief that
no such result need be anticipatea.
The discretion granted to the executive
by the terms "unduly discriminatory" Is
wide. In order that the maximum duty
shall be charged against the Imports from
a country. It It necessary that he shall
find on the part of that country not only
discriminations In Its laws or the prac
tire under them against the trade of the
United States, but that the discrimina
tions found shall be undue: that Is, with
out good and fair reason. I foncelve
that tMs pewer wn reposed in the prer-
dei.t with the hope that the maximum du
ties might never be applied In any case,
but that the power to apply them would
enable the president and the state depart
ment through friendly negotiation to se
cure the elimination from the laws and
the practice under them of any foreign
country of that which Is unduly discrim
inatory. No one la seeking a tariff war
or a condition In which the spirit of re
taliation shall be aroused.
The new tariff law enables me to ap
point a tariff board to assist me In con
nection with the department of state in
the administration of the minimum and
maximum clause of the act and also to
assist officers of the government In the
administration of the entire law. An ex
amination of the law and anunderstand-
Ing of the nature of the fucts which
should be considered In discharg
ing the function Imposed upon the execu
tive show that I have the power t. direct
the tariff board to make a comprehensive
glossary and encyclopedia of the term
used end articles embraced In the tariff
law, and to secure Information as to the
cost of production of such goods In this
rountry and the cost of their production
In foreign countries. I have therefore ap
pointed a tariff board consisting of three
member and have directed them to per
form all the duties above described. This
work will perhaps take two or three
years, and I ask from congress a continu
ing annual appropriation equal to that al
ready made for It prosecution. I believe
that the work of this board will be of
prime utility and importance whenever
congress shall deem It wise again to re
adjust the customs duties. If the facts
secured by the tariff board are of such a
character a to show generally that the
rates of duties Imposed by the present I
tariff law are excessive under the prin
ciples of protection as described In the
platform of the successful party at the
late election, I shall not hesitate to In
vite the attention of congress to this fact
nnd to the necessity for action predicated
thereon. Nothing, however, halts busi
ness and Interferes with the course of
prosperity so much as the threatened re
vision of the tariff, and until the facts are
at hand, after careful and deliberate In
vestigation, upon which such revision can
properly be undertaken. It seems to me
unwise to attempt It. The amount of mis
information thut creeps Into arguments
pro and con in respect to tariff rates Is
such B9 to require the kind of Investiga
tion that I have directed the tariff board
to make, an Investigation undertaken by
It wholly without respect to the effect
which the fncts may have In calling for a
readjustment of the rates of duty.
War Department.
In the Interest of Immediate economy
and because of the prospect of a deficit.
I have required a reduction In the esti
mates of the war department for the
coming fiscal year, which brings the to
tal estimates down to an amount forty
five millions less than the corresponding
estimates for last year. This could only
bo accomplished by cutting off now
projects and suspending for the period
of one year ull progress In military mat
ters, tor tho same reason I have direct
ed that the army shall not be recruited
up to Its present authorized strength.
These measures can hardly bo more than
temporary to last until our revenues are
In better condition und until the whole
question of the expediency of adopting
a definite military policy can be submitted
to congress, for I am sure that the Inter
ests of the military establishment are se
riously In need of careful consideration by
congress. The laws regulating the organ
ization of our armed forces In the event
of war need to be revised In order that
the organization can be modified so as
to produce a force which would be more
consistently apportioned throughout Its
numerous branches. To explain the cir
cumstances upon which this opinion Is
based would necessitate a lengthy discus
sion, nnd I, postpone It until the first con
venient opportunity shell arise to send to
congress a special message upon this sub
ject.
Of the changes recommended by
the secretary of war, the president
especially urges the passage of a bill
that will permit the elimination of the
less efficient officers. Ho concurs in
the opinion of the military and naval
Joint board in favor of making an ex
tensive naval base at Pearl Harbor,
near Honolulu, and not in the Philip
pines.
The Navy.
The return ef the battleship fleet from
Its voyage around the world. In more ef
Relent condition than when It started, was
noteworthy event of Interest alike to
our citizen and the naval authorities of
the world. Besides the beneficial and far-
reaching effect en our personal and dip
lomatic relations In the countrlci
which the fleet visited, the marked suc
cess of the ships In steaming around the
world In all weathers on schedule time
has Increased respect for our navy nnd
ha added to our national prestige.
Ksrly In the coming session a compre
benalve plan for the reorganization of the
officers of all corps of the nevy will be
presented to congress, nnd I hope It will
meet with action suited to Its urgency.
Owing to the necessity for economy In
expenditures, I have directed the curtail
ment of recommendations for naval ap
propriations so that they are thirty-eight
millions less than the corresponding es
tlmates of last year, and the request for
new naval construction Is limited to two
first-class battleships and one repair vet
set.
Mr. Taft urges upon congress that
the naval observatory be dedicated to
science under control of some emi
nent astronomer.
Expedition in Legal Procedure.
The deplorable delays in the admlnls
trnlton of civil and criminal law have re
celved the attention of committees of the
American Bar association and of many
state bar associations, as well as the con
sidered thought of judges and Jurists. In
my Judgment a change In Judicial pro
cedure, with a view to reducing It ex
pense to private litigants In civil case
and facilitating the dispatch of business
and final derision In both civil and crim
inal rases constitutes the greatest need
In our American Institutions. I do not
doubt for one moment that much of the
lawless violence nnd cruelty exhibited
In lynching Is directly due to the uncer
tnlntle and Injustice growing out of the
delay In trials. Judgment and the exe
eutlons thereof by our courts. Of courte
these remarks apply quite a well to the
administration of Justice In state courts
as to that In federal courts, and without
making Invidious distinction It Is per
haps not too much to say that, speaking
generally, the defects are less In the
federal courts than In tho state courts.
But they are very great In the federal
courts. The expedition with wnicn oust
ncss Is disposed of both on tho civil and
the criminal tide of Engllth courts under
modern rules of procedure makes the
delays In our cotirtt teem archaic ana
barbarous. The procedure In the federal
courts should furnish an example for the
state courtt. I presume It Is Impossible,
without an amendment to the constitu
tlon, to unite under one form of action
the proceedings at common law ana pro
reedings In equity tn the federal courts,
but It It certainly not impossible oy
statute to simplify and make short and
direct the procedure both at law and in
enulty In those courts. It is not impos
slble to cut down stUl more than It Is cut
down, the Jurisdiction of the supreme
court, so as to confine It almost wholly to
statutory and constitutional questions.
Under the present statutes the equity
and admiralty procedure in the federal
courts U under the control or vu su
preme court, but tn the pressure of busi
ness to which that court la subjected It
Is Impossible to hope that a radical and
proper reform of the federal equity pro
cedure can be brought about. 1 therefore
recommend legislation providing for the
appointment by the presldonl of a com
mission with authority to examine the
law and equity procedure of the federal
courtt of first Instance, the law of ap
peals from those courtt to the courts of
appeals and to the supreme court, and the
cottt Imposed in such procedure upon the
private litigants and upon the public treas
ury and make recommendations with a
view to simplifying and expediting the
procedure at far as possible and making
it as Inexpensive as may be to the liti
gant of little means.
Injunctions Without Notice.
The platform of the successful party In
the last election contained the following:
"The Republican pnrty will uphold at
all time the authority and integrity of
the courts, state and federal, and will
ever Insist that their powers to enforce
their process and to protect life, liberty
and property shnll be preserved inviolate.
We believe, however, that the rules of
procedure In the federal courts with re
spect to the Issuance of the writ of In
junction should be more accurately de
fined by statute and that no Injunction
or temporary restraining order should be
Issued without notice, except where Ir
reparable Injury would result from delay,
In which case a speedy hearing there
after should be granted."
I recommend that In compliance with
the promise thus made appropriate legis
lation be adopted. The ends of Justice
will best be met and the chief cause of
complaint against Ill-eons! Jered Injunc
tions without notice will be removed by
the enactment of a statute forbidding
hereafter the Issuing of any injunction
or restraining order, whether temporary
or permanent, by any federal court.
without previous notice and a reasonable
ipportunity to be heard on behalf of tho
parties to be enjoined; unless It shall ap
pear to the satisfaction of the court that
the delay necessary to give such notice
and bearing would result in Irreparable
Injury to the complainant and unless nlso
the court shall from the evidence make
a written finding, which shall be spread
upon the court minutes, that Immediate
and Irreparnblo Injury I likely to ensue
to the complainant, and shall define the
Injury, state why It Is irreparable nnd
hall also Indorse on the order issued the
date nnd the hour of the Issuance of the
order. Moreover, every such Injunction
or restraining order Issued without pre
vious notice and opportunity by the de
fendant to be hard should by force of
the statute expire nnd be of no effect
after seven days from tho Issuance there
of or within any time less thnn that pe
riod which the court may tlx, unless
within such seven days or such less pe
riod the Injunction or order Is extended
or renewed after previous notice and op
portunity to be heard.
My judgment Is that the passage of
such an act which really embodies the
best practice In equity and Is very
like the rule now In force In some
courts will prevent the Issuing of ill
advised order of Injunction without
notice nnd will render such orders
when Issued much less objectionable
by the short time In which they may
remain effective.
New Laws Needed.
The Jurisdiction of the general gov
ernment over Interstate commerce has
led to the passage of the so-called
Sherman anti-trust law" nnd the "In
terstate commerce law" nnd its amend
ments. The developments In the oper
ation of those laws, ns shown by In
dictments, trials. Judicial decisions,
and other sources of Information, call
for a discussion and some suggestions
as to amendments. These I prefer to
embody In a special message instead
of Including them In the present com
munication, and I shall avail myself
of the first convenient opportunity to
bring; these subjects to the attention of
congress.
Second-Class Mail Matter.
The deficit every yenr In the post-
office department Is largely caused by
the low rate of postage of 1 cent a
pound charged on second-class mall
matter, which Includes not only news
papers but magazine and miscellan
eous periodicals. The actual loss
growing out of the transmission of
this second-class moil matter at 1 cent
a pound amounts tn about $63,000,000
a year. The average cost of the trans
portntlon of this matter Is more than
9 cents a pound.
It appears that the average distance
over which newspapers ore delivered
to their customers Is 291 miles, while
the average hnnl of magazines Is 1.049.
and of miscellaneous periodicals 1,128
miles. Thus, the average haul of the
magazine Is three nnd one-hnlf times
and thnt of the miscellaneous period
ical nearly four times the haul of the
dally newspaper, yet all of them pny
the tame postage rate of 1 cent a
pound. The statistics of 1907 show
that second class mall matter consti
tuted 63.91 per cent of the weight of
all the mail, and yielded only 5.19 per
cent of the revenue.
The figures (riven are startling, and
show the payment hy the government
of an enormous subsidy to the news
papers, magazines nnd periodicals, nnd
congress mny well consider whether
radical step should not be taken to
reduce the deficit In the post-office de
partment caused by this discrepancy
between the actual cost of transporta
tion and the compensation exacted
therefor.
A great saving might be made,
amounting to much more thnn half of
the loss, by Imposing upon magazines
nnd periodicals a higher rate of post
age. They are much heavier than
newspnpers, and contain a much higher
proportion of advertising to rendinc
matter, and the nverngn distance of
their transportation Is three and a half
times as great.
The total deficit for the Inst fiscal
year In the postofllce department
amounted to $17,500,000. The branches
of Its business which It did nt a loss
were the second-class mail service, In
which the loss, ns already said, was
tfi3,000.000. and the free rural delivery In
which the loss wa $2S,000,000. These
losses were in part offset by the
profits of the letter postage end
other sources of Income. It would
seem wise to reduce the loss upon
second-class mail matter, at least
to the extent of preventing a deficit
In the total operations of the post
ofllce. I commend the whole subject to con
gress, not unmindful of the spread of
Intelligence which a low charge for
carrying newspapers and periodical
assists. I very much doubt, however,
the wisdom of a policy which consti
tutes so large a subsidy and requires
additional taxation to moet It.
Postal Savings Banks.
The tecond subject worthy of men
tion In the postofllce department I tho
real necessity and entire practicability
of establishing postal savings banks.
The successful party at the last elec
tion declared In favor of postal sav
ings banks, and although the proposi
tion finds opponents In many parts of
the country, I am convinced that the
people desire such banks, and am sure
that when the bnnks are furnished
they will be productive of the utmost
good. The postal savings banks are
not constituted for the purpose of cre
ating competition with other banks.
The rate of Interest upon deposits lo
which they would be limited would be
so small as to prevent their drawing
deposits away from other banks.
T believe them to be necessary In
order to offer a proper Inducement to
thrift and saving to a great many
people of small means who do not
now have banking facilities, and to
whom such a system would offer an
opportunity for the accumulation of
capital. They will furnish a satisfac
tory substitute, based on sound prin
ciple and actual successful trial In
nearly all the countries of the world,
for the system of government guar
anty of deposits now being adopted In
several western states, which with
deference to those whe advoo&te It
seems to me to have In It the seeds of
demoralization to conservative banking
and certain financial disaster.
Ship Subsidy.
Following the course of my distin
guished predecessor. I earnestly recom
mend to congress the consideration
and passage of a ship subsidy bill,
looking to the establishment of lines
between our Atlantic seaboard and the
eastern coast of South America, as
well a line from the west coast of
the United States to South America,
China, Japan and the Philippines. The
profits on foreign mails are perhaps a
sufficient measure of the expenditures
which might first be tentatively ap
plied to this method of Inducing
American capital to undertake the es
tablishment of American lines of
steamships in those directions in which
we now feel It most Important that we
should have mean of transportation
controlled In the Interest of the expan
sion of our trade.
rhe president recommends the ad
mission of New Mexico and Arizona
ns separate states, and strongly op
poses legislation looking to the elec
tion of a territorial legislature for
Alaska.
Conservation of National Resources.
In several departments there Is present
ed the necessity for legislation looking to
the further conservation of our national ,
resources, and the subject Is one of such
importance ns to require a more detailed
and extended discussion than can be en
tered upon In this communication. For
that reason I shall take an early oppor
tunity to send a special message to con
gress on the subject of the Improvement
of our waterways, upon the reclamation
and Irrigation of arid, seml-arld, and
swamp lands; upon the preservation of
our forests and the reforesting of sult
ablo arens; upon the reclassification of
the public domain with a view of sep
arating from agricultural settlement min
eral, coal, nnd phosphate lands and sites
belonging to the government bordering on
streams suitable for the utilization of
water power.
The White Slave Trade.
I greatly regret to have to say that the
Investigations made in the bureau of Im
migration and other sources of Informa
tion lead to the view that there Is urgent
necessity for additional legislation and
greater executive activity to suppress the
recruiting of the ranks of prostitutes from
the streams of Immigration Into this
country an evil which, for want of a bet
ter nume. has been called "The White
Slave Trade." I believe It to be constitu
tional to forbid, under penalty, the trans
portation of persons for purposes of pros
titution across national nnd state line;
nnd by appropriating a fund of 150,000 to
be used by the secretary of commerce
and labor for the employment of special
Inspectors It will bo possible to bring
those responsible for this trade to Indict
ment and conviction under a federal law.
Bureau of Health.
For a very considerable period a move
ment has been gathering strength, espe
daily among the members of the medi
cal profession, In favor of a concentra
tion of the Instruments of the national
government which hnve to do with the
promotion of public health, in the nature
of things, the medical department of the
army and the medical department of the
navy must bo kept separate. But there
seems to bo no rensen why all the othet
bureaus and offices In the general gov
ernment which hnve to de with the pub
lie health or subjects nkln thereto should
not be united In a bureau to be called ft
"bureau of public health." This wouul
necessitate the transfer of the martne
hospltal service to such a bureau. I am
aware that there Is a wide field In re
spect to the public health committed to
the states In which the federal govern
ment ennnot exercise Jurisdiction, but we
hnve seen In the agricultural department
the expansion Into widest usefulness of
a department giving attention to agricul
ture when that subject Is plainly on
over which the states properly exercise
direct Jurisdiction. Tho opportunities of
fered for useful research and tbe spread
of useful Information In regard to the
cultivation of the soil nnri lh hmoiina
of stock nnd the solution of manv of the
Intricate problems In progressive nrrlml.
ture have demonstrated the wisdom of
establishing that department. 8lmriar
reasons, of equal force, can be given for
the establishment of a bureau of health
that shall not only exercise the police
Jurisdiction of the federal government re
specting quurantlne. but which shall alto
afford an opportunity for Investigation
and research by competent experts Into
questions of health affecting the whole
country, or Important sections thereof,
questions which, In the absence of fed
eral governmental work, are not likely
to be promptly solved.
Political Contribution.
I urgently recommend to congress that
a Inw be passed requiring that candi
dates In elections of members of the
house of representatives and committees
in chnrgo of their candidacy nnd cam
paign file In a proper office of the United
States government a statement of the
contributions received and of the expen
ditures Incurred In the campaign for such
elections and that slmllnr legislation be
enacted In respect to nil other elections
which are constitutionally within the
control of congress.
Conclusion.
I have thus, In a message compressed
a much as the subjects will permit, re
ferred to mnny of the legislative needs
of the country, with the exceptions al
ready noted. Speaking generally, the
country la In a high state of prosperity.
There Is every reason to believe that we
nre nn the eve of a substantial business
expansion and we have Just garnered a
harvest unexumpled in the market value
of our agricultural products. The high
price which such products bring mean
great prosperity for the farming com
munity, but on the other hand they
meun a very considerably Increased bur
don upon those classes In the commu
nity whoso yearly compensation does not
expand with, the Improvement In busi
ness and the general prosperity. Various
reasons are given for the high prices.
The proportionate Increase In the output
of gold, which to-duy Is the chief medi
um of exchange and la In some retpecta
a measure of value, furnishes a substan
tial explanation of at least part of the.
Increase In price. The Increuse In pop.
ulatlon and the more expensive mod of
living of the people, which have not been
accompanied by a proportionate Increaa
In acreuge production, may furnish a fur
ther reueon. It Is well to note that the
Increase In the cost of living It not con
fined to this country, but prevails the
world over and that those who wouldl
charge Increaset In prices to the existing
protective tariff must meet the fact that
the rise in prices ho tuken place almost
wholly In those product of the factory
and farm In respect to which there has
been either no Increase In the tariff or la
many Instances a very considerable re
duction. W Jt U m 1 nn
u nuiu (iwiM, iacaniBef T,