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PRESIDENT
TO CONGRESS
Message Read to Both
Houses of National
Assembly
LEGISLATION CALLED FOR
Financial Standing of the Nation De
clared Excellent Control of Cor.
poratlons, the President Thinks,
Should Be Left to the National
Government Labor Leaders Come
In for Criticism Respect for Law
Vital to the Well-Delng of Country.
Vaahlngton. The mossago of 1'rosl
dent Hoosovclt wan rend In both
housco of congrcHs Tuesday. In cub
Unco tho doctimont was ns follows:
To (lis Senate and Houso of Represen
tatives: Tho financial standing of the
nation at the present tlmo la excellent,
and tho financial management of tho na
tion's Interests by the government dur
ing tho last flovon yoars has shown tho
most satisfactory results. Hut our cur
rency system Is Imperfect, and It Is ear
nestly to be hoped that tho currency
commission will bo able to propone a
thorouchly Rood system which will do
array with the existing dofects.
During tho period from July 1, 1001, to
September 30, IMS, thcto was an Increaso
In the nmount of money In circulation of
tMl,ti91,399. The Increase In tho per capita
during this period was $7.0G. Within this
Urn there wcro several occasions when
It was necessary for the treasury de
partment to come to tho relief of the
money market by purchases or redemp
tions of United States bonds; by Increas
ing deposits In national banks; by stim
ulating additional Issues of national bank
notes, and by facilitating Importations
from abroad of gold. Our Imperfect cur
rency system tins mnds these proceedings
necessary, and they were effective until
the monetary disturbance In tho fall of
1107 Immensely Increased tho dtfllculty of
ordinary methods of relief, by the mid
dle of November tho avallablo working
balance In the treasury had been reduced
to approximately $5,000,000. Clearing
houso associations throughout the coun
try had been obliged to resort to tho
expedient of Issuing clearing house cer
tificates, to be used as money. In this
emergency It wan determined to Invite
Subscriptions for 150,000,000 Panama canal
wuiiui, anu ivu,vw,vw inrco per cent,
certificates of Indebtedness authorized by
the act of June 13. 1S9S. It was proposed
to redepostt In the national banks tho
proceeds of these Issues, and to permit
their use as a basis for additional circu
lating notes of national banks. Tho
moral effect of this procedure was so
Treat that It wits necessary to Issue only
$24,031,980 of tho Panama bonds and $16,
4JG.GO0 of tho certificates of Indebtedness.
During the period from July 1, 1901, to
September 80, 1003, the balance between
the net ordinary receipts and tho net
ordinary expenses of (he government
bowed a surplus In the four years 1902.
DOS, 100C, and 1907, and a deficit In tho
years 1904, 1905, 1903 and a fractional part
Of the fiscal year 1909. Tho net result
was a surplus of $99,233,413.54. The finan
cial operations of tho government during
this period, based upon these differences
(between receipts and expenditures, re.
ulted In a net reduction of tho Interest
bearing debt of the United States from
1937,141,040 to tS97,2C3.930. notwithstanding
that thero had been two sales of Panama
canal bonds amounting In tho aggrcgato
to tJ4.C31,9S0. and an Issue of throo per
cent, certificates of Indebtedness under
the act of June 13, 1S9S, amounting to
io,i3!),wv, uerunuing operations of tho
treasury department under the act of
March 14, 1900, resulted In the conver
sion Into two per cent, consols of 1930 of
1200,309,400 bonds bearing higher rates of
Interest. A decrease of $3,087,950 In the
annual Interest charge resulted from
these operations.
In short, during tho seven years and
three months there has been a net sur
plus of nearly one hundred millions of
receipts over expenditures, a reduction
of the Interest-bearing debt by ninety
millions. In splto of the extraordinary ex
pense of the Panama canal, and a saving
of nearly nine millions on the annual
Interest charge.
Control of Corporations.
As regards the great corporations en
gaged In Interstate business, and espe
cially tho rallroadu, I can only repeat
what I have already again and again said
In my messages to the congress. I be
llevo that under the Interstate clause of
the constitution the United States has
complete and paramount right to con
trol all (agencies of Intoratato commerce,
and I believe that the national govern
ment alone can exercise this right with
wisaom ana erroctivencss so as both to
tcure Justice from, and to do Justice to,
the great corporations which are tho
most important factors In modern busi
ness. I believe that It Is worse than
Colly to attempt to prohibit all com
binations as Is dono by the Sherman
anti-trust law, becauso such a law can
bs enforced only Imperfectly and un
equally, and Its enforcement works al
most as much hardship as good, I
strongly advocate that Instead of an un
wise effort to prohibit all combinations,
thero shall be substituted a law which
shall expressly permit combinations
which are In the Interest of tho publlo,
but shall at the same tlmo give to some
agency In the national government full
power of control and supervision over
them. One of the chief features of this
control should be securing entire pub
licity In all matters which the public
has a right to kn6w, and furthermore,
tho power, not by Judicial but by execu
tive action, to prevent or put a stop to
every form of Improper favoritism or
othor wrongdoing.
The railways of the country should be
put completely under the Interstate com
merce commission and removed from
the domain of the anti-trust law. Tho
power of the commission should be made
thoroughgoing, so that It could exerclso
complote supervision and control over
the Issue of securities as well as over
the raising and lowering of rates. As
regards rates, at least, this power should
be summary. . . . Rates must be made
as low as Is compatible with giving prop
er returns to all the employes of the rail
road, from the highest to tho lowest,
and proper returns to the shareholders,
but they must not. for Instance, be re
duced u such fashion as to necessitate
a enffin the wages of the emnloves or
rrfc!fo abortion of the proper and legitimate
lirouia ut uuiirni auurenoiuers.
Telegraph and telephone companies en
gaged In Interstate business should be
put under the Jurisdiction of the Inter
state commerce J commission.
'It is very earnestly to be wished that
eur people, through their representatives,
hould act In this matter. It la to
ithe Interest ofi all of us that
there should be .a (premium put upon In-
t ., . iiumniiuiu .WJ,V"'U'." vuv """
parity, and an amplo reward for the
great directing Intelligences alone com
petent to manage tho great business op
erations of to-day. It Is well to keep In
mind that exactly as the anarchist Is the
worst enemy of liberty and tho reaction
ary the worst enemy of order, so the
men who defend the rights of property
liao most to fear from tho wrongdoers
of great wealth, and tho men who are
championing popular rights have most
to fear from tho demagogues who In tho
name of popular lights would do wrong
to and oppress honest business men,
honent men of wealth; for the success of
either typo of wrongdoer necessarily In
vites a vlolont reaction ngalnnt the cause
tho wrongdoer nominally upholds. . . .
Need of Centralization.
The proposal to mako the Ra
tional government supremo over, and
therefore to give It complete control over,
tho railroads and other Instruments of
Interstate commerce Is merely a propos
al to carry out to the letter one of the
prlino purposes, If not tho prlmo purpose,
for which tho constitution was foundod.
It does not represent centrallxatlon. It
represents merely tho acknowledgment
of the pntent fact that centralization has
already come In business. If this Irre
sponsible outside business power Is to be
controlled In the Interest of tho goncral
public It ran only bo controlled In one
way; by giving adequate power of con
trol to the one sovereignty capable of ex
ercising such power the national govern
ment. To abandon tho effort for national
control means to abandon the effort for
all adequuto control and yet to rondcr like
ly contlnunl bursts of action by state leg
islatures, which cannot nchlevo tho pur
pone sought for, but which can do a
great deal of damage to the corporation
without conferring nny roa! bonoflt on
the public,
Thoro should be regulation by tho na
tional government nf tho great Interstate
corporations, Including n simple method
of account keeping, publicity, supervision
of tho Issue of securities, abolition of
rebates and of special privileges. Thero
should bo short-tlmo franchises for nil
corporations engaged In publlo business;
Including tho corporations which get
power from water rights. Thero should
lin national as well as stato guardianship
of mine and forests. Tho labor legisla
tion hereinafter referred to should con
currently be enacted Into law.
To accomplish this, means a certain In
creaso In tho uso of not tho creation of
power, by tho central government, Tho
power ulrcady exists; It does not bavo
to bo created; tho only question la
whether It Bhnll bo used or left idle
and meanwhile tho corporations over
which tho power ought to bo exercised
will not remain Idlo. The danger to Amer
ican democracy lies not In tho least In tho
concentration of ndmlnlstratlvo power In
responsible and accountable hands. It
lies In having the power Insufficiently
concentrated, so that no one can be held
rcsponslblo to the peoplo for Its use.
Concentrated power Is palpablo, visible
responsible, easily reached, quickly hold
to account. Democracy Is In peril
wherover the administration of po
litical power is scattered among
a variety of men who work in
secret, whoso very names are un
known to tho common people. It Is not
In peril from any man who derives au
thority front the people, who exercises
It In sight of tho people, and who Is
from tlmo to tlmo compelled to give an
account of Its exorcise to the people.
Legislation for Wageworker.
Thore uro many matters affecting labor
and tho status of tho wagoworker to
which I should like to draw your atten
tion, but an exhaustive discussion of the
problem In all Its aspects is not now nec
essary. I bcllevo In a steady ef
fort, or perhaps It would bo more
accurato to say In steady efforts
In many different directions, to bring
about a condition of affairs under which
tho men who work with hand or with
brain', the laborers, tho superintendents,
tho men who produco the market and tho
men who find a market for tho articles
produced, shall own a far greater sharo
than at present of tho wealth they pro
duce, and bo enabled to Invest It In tho
tools and Instruments by which all work
la carried on. As far as possible I hopo
tn sco a frank recognition of the advan
tages conferred by machinery, organiza
tion and division of labor, accompanied
by an effort to bring about a larger sharo
In tho ownership by wage-worker of rail
way, mill and factory.
Postal Savings banks will make It
eaay for the poorest to keep their sav
ings In absolute safety. Tho regulation
of tho national highways must be such
that thoy shall serve all people with
equal Justlco. Corporate finances must
be suVorvtsed bo as to mako It far safer
than at present for tho man of small
means to Invest his money In stocks.
Thero must be prohibition of child la
bor, u.mlnutlon of women labor, short
ening of hourn of all mechanical labor;
stock watering should bo prohibited,
and stock gambling so far as Is possi
ble discouraged. Thero should be a
progrcRslvo Inheritance tax on largo
fortunes. Industrial education should
bo encouraged. As far as posslblo we
should lighten the burden of taxation
on the small man. We should put a
premium upon thrift, hard work, and
business energy; but theso qualities
coaso to bo the main factors In accu
mulating a fortune long before that
fortune reaches a point where It would
tie seriously affected by any inheri
tance tax such as I propose It Is emi
nently right that tho nation should fix
tho terms upon which tho great for
tunes aro Inherited. They rarely do
good and they often do harm to those
who Inherit them In their cntlroty.
Thero should no longer be any palter
ing with the question of taking care of
the wagoworkers who, under our pres
ent Industrial system, become killed,
crippled, or worn out as part of tho
regular incidents of a given busi
ness. As far as concerns those
who have been worn out, It call your
attention to the fact that definite
steps toward providing old-age pen
sions have been taken In many of our
private Industries, These may be In
definitely extended through voluntary
association and contributory schemes,
or through tho agenoy of savings
banks, as under the Massachusetts
plan.
Urgent Need of Reform.
Our present system, or rather no oys.
tern, works drendful wrong, and is of
benefit to only ono class of people tho
lawyers. When a workman Is injured
what he needs Is not an expensive and
doubtful lawsuit, but the certainty of
relief through immediato administra
tive action. No academic theory
about "freedom of contract" or "consti
tutional liberty to contract" should be
permitted to Interfere with this and
similar movements.
Pending a thoroughgoing Investiga
tion and action thero Is certain legis
lation which should be enacted at once.
The law, passed at the last session of
the congress .granting compensation to
certain classes of employes of the gov
ernment .should be extonded to Include
all employes of the government and
should bo made more liberal in Its
terms. There Is no good ground for
the distinction made In tho law be
tween those engaged In hazardous oc
cupations and those not so en
gaged. The terms of tho act pro
viding compensation should be made
ruoro liberal than in the present
act. A year's compensation Is not ade
quate for a wago-earner's family In the
ovont of his death by accident in the
course of his employment. And in the
ovont of death occurring, say, ten or
eleven months nfter the accident, the
'""A family
family would only receive as compen-
the equlvalent-of one or tw
months' earnings, In this respect the
generosity of tho United States towards
Its employes compares most unfavora
bly with that of every country in Eu
rope oven the poorest.
I renow my recommendation made in
n previous messago that half-holidays
be granted during summer to all wago
workers In government employ .
I also renew my recommendation that
tho prlnclplo of the eight-hour day
should as rlpldly and as far as practi
cable bo extended to tho entire work
being carried on by the government;
tho present law should be amended to
embrace contracts on thoso publlo
works which tho present wording of
the net seem to exclude.
Would Double Salaries of Judges.
I most earnestly urge upon the con
gress the duty of increasing tho totally
inadequate salaries now given to our
Judges. On the wholo thero Is no body
of publlo servants who do as valuable
work, nor whose moneyed roward Is so
Inadequate compared to their work, Be
ginning with tho supremo court the
judges should have their salaries dou
bled. It Is not befitting the dignity of
the nation that its most honored publlo
scrvnnts should bo paid sums so small
compared to what they would earn In
private life that the performance of
publlo scrvlco by them Implies an ex
ceedingly heavy pecuniary sacrifice.
It Is earnestly to bo desired that some
method should bo devised for doing
away with tho long delays which now
obtain in tho administration of Justice,
and which operate with peculiar sever
ity against persons of small means, and
favor only tho very criminals whom It
In most dcsirablo to punish, Thcso
long delays in tho final decisions of
cases mako In tho nggrcgate a crying
evil; and a remedy shorn J bo devised.
Much of this Intolerable delay Is due
to improper regard paid to technicali
ties which are a mcro hlnderanco to
JubMcr. In some noted recent cases this
over-regard for technicalities has re
sulted In a striking denial of Justlco,
and flagrant wrong to Mm body politic'
Labor Leaders Criticised.
At the last election certain leaders of
organized labor mado a violent and
nwccplng attack upon the entire Judi
ciary of tho country, an attack couchod
In such terms as to Include- tho most
upright, honest and broad-minded
Judges, no less than thoso of narrower
mind and moro restricted outlook.
Last year, bofore tho house com
mlttco on Judiciary, thcso same
labor leaders formulated their de
mands, specif) Ing the bill that
contained thorn, rofuslng all compro
mise, stating thoy wished tho prlnclplo
of that bill or nothing. They Insisted
on a provision that In a labor dlsputo
no Injunction should Issue except to
protect a property right, and specifical
ly provided that the right to carry on
business should not bo construed as a
property right; and In a second provis
ion their bill mado legal in a labor dis
pute any net or agreement by or be
tween two or more persons that would
not havo been unlawful if dono by a
single person. In other words, this bill
legalized blacklisting and boycotting
In every form, legalizing, for Instance,
thoso forms of the secondary boycott
which the nnthraclte coal strlko com
mission so unrcsorvedly condemned;
while tho right to carry on a business
was explicitly taken out from under
that protection which tho law throws
over property. Tho demand wns mado
that thero should bo trial by Jury in
contempt cases, thereby most seriously
Impairing tho authority of tho courts.
All this represented a courso of policy
which, If carried out, would mean tho
enthronement of class privilege In Its
crudest nnd most brutal form, and tho
destruction of ono of tho most essen
tial functions of tho Judllcary tn all civ
ilized lands. m
Tho violence of the crusado for this
legislation, and Its complete failure,
lllustrato two truths which it is essen
tial our people should learn. In tho
first place, they ought to teach tho
worklngman, the lahoror, tho wage
worker, that by demanding what Is Im
proper and impossible ho plays into tho
hands of his foes. Such a crudo nnd
vicious attack upon the courts, even If
it were temporarily successful, would
inevitably In tho end causo a violent
reaction nnd would band the great
mass of citizens together, forcing them
to stand by all the Judges, competent
and Incompetent alike, rather than to
see the wheels of Justice stopped.
Tho wagoworkers, the worklngmen,
the laboring men of the country by tho
way in which they repudiated tho ef
fort to get them to cast their votes in
response to nn appeal to class hatred,
have emphasized their sound patriotism
and Americanism. Such an attltudo
Is an object lesson in good citizenship to
the entlro nation.
Judicial System Sound.
Our Judicial system is sound and
effective at coro, and It remains,
nnd must ever bo maintained, as
tho safeguard of those principles of lib
erty and Justice which stand at tho
foundation of American Institutions; for,
as Burko finely said, when liberty and
Justice are separated, neither Is safe.
There are, however, some members of
the Judicial body who have lagged be
hind in their understanding of thrso
great and vital changes in tho body
politic, whose minds have never been
opened to the new applications of the old
principles mado necessary by tho new
conditions. Judges of this stamp do last
ing harm by their decisions, bocauso they
convince poor men In need of protection
that the courts of the land aro pro
foundly Ignorant of nnd out of sympathy
with their neods, and profoundly Ignorant
or hostllo to any proposed remedy. To
such men It seems a cruel mockery to
havo any court decide against them on
tho ground that it desires to preserve
"liberty" In a purely technical form, by
withholding liberty In any real and con
structive sense.
Thero are certain decisions by various
courts which have been exceedingly det
rimental to the rights of wage-workers.
This Is truo of all decisions that decide
that men are, by tho constitution, "guar
anteed their liberty" to contract to enter
a dangerous occupation, or to work an
undeslrablo or Improper number of hours,
or to work In unhealthy surroundings;
and therefore cannot rocover damages
when maimed In that occupation, and
cannot bo forbidden to work what tho
legislature decides is an oxcesslvo num
ber of hours, or to carry on the work
under conditions which tho legislature
decides to be unhealthy. Decisions
such as those nullify tho legislative
effort to protect the wago-workera who
most need protection from those employ
ers who take advantage of their grind
ing need. They halt or hamper the move
ment for securing better and more equi
table conditions of labor.
There Is also, I think, ground for tho
bellof that substantial Injustice Is often
suffered by employes In consequence of
the cUBtonjofcourta Issuing temporary
InJunctloruLjjvIthout notice to them, and
punishing Am for contempt of court In
Instances where, as a mattor of fact,
they hove" no knowledge of any proceed
ings. Organized labor Is chafing
under the unjust restraint which
comes from repoated rosort to this
plan of procedure. Its discontent
has been unwisely expressed, and
often Improperly expressed, but there
Is a sound basts for It, and the or
derly and law-abiding people of a com
munity would be in a far stronger posi
tion for upholding the courts It tho un
doubtedly existing abuses could be pro
vided against.
Injunction Must Remain.
The power of Injunction Is a groat
equitable remedy, which should on no
account he destroyed. But ' safeguards
should be erected against Its abuse,
In substance, provision should bo made
that no Injunction or temporary re
straining order Issue otherwise than on
notice, except whero Irreparable Injury
would otherwise result; and In such caso
a hearing on the merits of tho order
should be had within a short fixed pe
riod, and. If not then continued after
hoarlng, It should forthwith lapse. De
cisions should be rendered Immediately,
and tho chance of delay minimized In
every way. Moreover, I bellovo that the
proceduro should bo sharply defined, and
tho Judge required minutely to stato tho
particulars both of his action and of his
reasons therefor, so that the congress
can If It desires examine and investigate
tho same.
For many of the shortcomings of
Justice in our country our peoplo as a
whole aro themselves to blame, and tho
Judges and Juries merely bear their
share together with the public as a
whole. It Is discreditable to us as a
people that thero should be difficulty In
convicting murderers, or in bringing to
Justice men who as publlo servants
havo been guilty of corruption, or who
have profited by the corruption of
public servants. Tho result Is equally
tinfortunate, whether due to hairsplit
ting technicalities In tho Interpretation
of law by Judges, to sentimentality and
class consciousness on tho part of
Juries, or to hysteria and sensational
ism In the dally press. For much of
this failure of Justlco no responsibility
whatover lies on rich men as such. Wo
who mako up tho mass of the peoplo
cannot shift the responsibility from our
own shoulders. Hut there Is an Impor
tant part of the fullure wutch has spe
cially to do with Inability to hold
to proper account men of wealth who
behave badly.
The Modern Corporation.
Tho hugo wealth that has been accu
mulated by a fow Individuals of recent
years, In what has amounted to a oo
ctal and Industrial revolution, has been
as regards Bomo of these Individuals
mado posslblo only by tho Improper use
of tho modern corporation. A certain
typo of modern corporation, with Its
officers and agents, Its many Issues of
securities, nnd Its constant consolida
tion with nllled undertakings, finally
become! nn instrument so complex as
to contain a greater number of clo
monts that, under various Judicial de
cision", lend themselves to fraud and
oppression than any device yet evolved
In tho human brain. Corporations aro
necessary Instruments of modern busi
ness. Thoy havo been permitted to
becomo a menace largely becauso the
governmental representatives of the
peoplo havo worked slowly in provid
ing for ndequato control over them.
Our great clusters of corpora
tions, hugo trusts and fabulously
wealthy multimillionaires, employ tho
very best lawyers thoy can obtain to
pick flaws in statutes after their
passage; but they also employ a class
of secret agents who seek, under tho
advice of experts, to render hostile
lcglsla.lon Innocuous by mnklng It un
constitutional, often through the Inser
tion of what appear on their face to be
drastic and sweeping provisions ugalnst
tho Interests of tho parties inspiring
them; whllo the demagogues, the cor
rupt crenturon who Introduce black
mailing echomes to "strlko" corpora
tions, and all who demand extreme,
and undesirably radical, measures,
show themselves to bo tho worst ene
mies of tho very public whoso loud
mouthed champions they profess to be.
Real damage has been done by the
manifold and conflicting Interpretations
oi tho Interstate commerco law. Con
trol over tho great corporations doing
Interstate business can be cffectlvo only
if It Is vested with full power In an
administrative department, a branch of
tho federal executive, carrying out a
federal law; It can novcr bo effective if
n. divided responsibility Is left in both
tho states and tho nation; It can never
be effective if left in tho hands of the
courts to be decided by lawsuits.
Respect for Law Must Be Upheld.
The courtH hold a placo of peculiar and
deserved sanctity under our form of gov
ernment. Respect for tho law Is essen
tial to tho permanence of our Institu
tions: and respect for tho law Is largely
conditioned upon respect for the courts.
It Is an offense against the republic to
say anything which can weaken this re
spect, save for the gravest reason and In
tho most carofully guarded manner. In no
other nation In the world do tho courts
wield such vast and far-reaching power
as In tho United States. All that Is nec
essary Is that tho courts as a whole
should exercise this power with tho far
sighted wisdom already shown by those
Judges who scan tho future while they
act in the present. Let them exorcise
this great power not only honestly and
bravely, but with wise Insight Into the
neods and fixed purposes of tho people,
so that they may do Justlco, and work
equity, so that thoy may protect all per
sons In their rights, and yet break down
tho barriers of privilege, which Is the foe
of right.
Forest Preservation.
If there Is any one duty which more
than anothor we owo it to our children
to pcrfim at once, It is to save tho for
tt,' of this country, for thoy constitute
the first and most Important elomont In
tho conservation of the natural re
sources of tho country. . . . Just as
a farmer, after all his life making his
living from his farm, will, If ho Is an ex
pert farmer, leave It as an assot of In
creased value to his son, so wo should
leavo our national domain to our chil
dren, Increased In value and not worn
out. Thero are small sections of otir own
country, In tho east and in the west, In
tho Adlrondacks, tho White mountains
and tho Appalachians, and in the Rocky
mountains, whero we can already see for
ourselves the damage In tho sliapo of
permanent Injury to the soil and tho
river systems which comes from reckless
deforestation. It matters not whether
this deforestation Is duo to the actual
reckless cutting of timber, to the fires
that Inovltably follow such reckless cut-
ting of timber, or to reckless and uncon
trolled grazing, especially by tho greut
migratory bands of sheep, the un
checked wandering of. which over tho
country means destruction to forests and
disaster to the small home-makers, the
settlors of limited means.
Thanks to our own recklessness
in tho use of our splendid forests,
we havo alraady crossed the verge of a
timber famlno In this country, and no
measures that wo now take can, at least
for many years, undo tho mischief that
has already been done. Rut we can pre
vent furthor mlschlof being done; and it
would be in the highest degree reprehen
sible to let any consideration of tem
porary convenience or temporary cost
intorfero with such action, especially as
regards the national forests wtlch the
nation can now, at this vary moment,
control.
The lesson of deforestation in China
Is a lesson which mankind should havo
learned many times already from what
has occurred tn other places. Denuda
tion leaves naked soil; then gullying
cuts down to the bare rock; and mean
whllo the rock-waste buries tho bottom
lands. When tho soli Is gone, men
must go; and tho process does not take
long.
Plea for Inland Waterways.
Action should be begun forthwith, dur
ing tho present session of tho congress,
for the Improvement of our Inland water
waysaction which will result In giving
us not only navigable but navigated
rivers.
Until the work of river Improvement Is
undertaken In a modern way It can not
have results that will meet tho needs of
this modern nation. The plan
which promises the best and quick
est results Is that of a per
manent commission authorized to co-ordinate
the work of all the government
departments relating to waterways, and
to frame and supervise the execution of
a comprehensive plan. Under such a
commission the actual work of construc
tion might bo entrusted to the reclama
tion service; or to tho military engineers
acting with a sufficient numbor of civili
ans to continue the work In tlmo of war;
or It might bo divided between the rec
lamation service and the corps of en
gineers. Funds should be provided from
jurront rovenues If It is deemed wise
)therwlse from tho sale of bonds. The
jssentlal thing Is that the work should
go forward under tho best possible plan,
and with tho least posslblo dolay. The
time for playing with our waterways Is
past. The country demands results.
Tho president urgos thrtt national
parks adjacent to national forests bo
placed under tho control of tho forest
eorvlco of tho agricultural depart
ment; ho also points out tho boncQts
derived from puro food legislation.
Tho mossago continues:
Needs of the Secret 8ervlce.
Last year an amendment was Incor
porated in tho mcasuro providing for tho
secret service, which provided that thore
should bo no detail from tho secret ocrv
Ico and no transfer therefrom. Tho
amendment In question was of benefit to
no ono excepting to criminals, and
It seriously hampers tho government In
tho detection of crime and tho securing
of Justice. Tho chief argument In
favor of tho provision was that
tho congressmen did not them
selves wish to bo investigated by the
secret service men. Very little of such
Investigation has been done In tho past;
but It Is true that the work of tho secret
service agents was partly responsible for
the Indictment and conviction of a sen
ator and a congressman for land frauds
In Oregon. I do not believe that It Is
In tho public Interest to protect criminals
In any branch of the public service, and
exactly as wo have again and again dur
ing the past seven years prosecuted and
convicted such criminals who were In
tho executive branch of tho government,
so In my belief we should bo given ample
means to prosecute them It found In tho
legislative branch. But if this Is not
considered desirable a special exception
could be mado In the law prohibiting tho
uso of tho secret service force In Inves
tigating members of tho congress.
Postal Savings Banks.
I again renew my recommendation
for postal savings banks, for deposit
ing savings with tho security of tho
government behind them. The object
Is to encourage thrift and economy in
the wage-earner and person of mod
erate means. It Is belloved that In the
aggregate vast sums of money would bo
brought Into circulation through tho In
strumentality of the postal savings
banks.
Parcel Post.
In my last annual messago I com
mended tho postmaster-general's
recommendation for an extension of tho
parcel poit on tho rural routes. The
establishment of a local parcel post on
rural routes would be to tho mutual
benefit of the farmor and the country
storekeeper, and It Is dcsirablo that the
routes, serving moro than 15,000,000
people, should bo utilized to the fullest
practicable extent.
Education.
With the limited means hitherto pro
vided, tho bureau of e ducatlon has
rendered efficient service, but the con
grens has neglected to adequately sup
ply the bureau with means to meet tho
educational growth of tho country.
I earnestly recommend that this un
fortunntn Htato of affairs as regards
the national educational offlco bo reme
died by adequate appropriations. This
recommendation Is urged by the repro
sentnttvex of nur common schools and
great state universities and the leading
educators, who nil unite in requesting
favorable consideration and action by
tho congress upon this subject.
Tho president points out tho neces
sity of better organization of tho vari
ous bureaus rcsponslblo for tho public
health, and urges the placing of all
soldiers' homes undor tho jurisdiction
of the war department.
Statehood.
On the question of statehood tho
president says:
I advocato the Immediate admission of
New Mexico and Arizona as states. This
should be dono at the present session of
the congress. Tho peoplo of the two ter
ritories havo made It ovldont by their
votes that thoy will not come In as one
stato. The only alternative is to admit
them as two, and I trust that this will be
dono without delay.
Interstate Fisheries.
I call the attention of the congress to
the importance of the problem of the
fisheries In the Interstate waters. On tho
Great Lakes wo aro now, under the very
wise treaty of April 11 of this yoar, en
deavoring to como to an International
agreement for tho preservation and sat
isfactory uso of the fisheries of these wa
ters which can not othorwlso bo achieved.
Lake Erie, for example, has tho richest
fresh water fisheries In, the world; but It
la now controlled by tho statutes of two
nations, four elates, and one province,
and this province by two different ordi
nances In different counties. All these
political divisions work at cross pur
poses, and In no case can they achieve
protection to tho fisheries, on the one
hand, and Justlco to the localities and In
dividuals on tho othor.
Foreign Affairs.
This nation's foreign policy is based
on the theory that right must bo dono
between nations precisely as between
Individuals, and In our actions for tho
last ton years we havo in this matter
proven our faith by our deeds. We
have behaved, and aro behaving, to
wards other nations, as in private life
an honorable man would behave to
wards his fellows.
Latin-American Republics.
Tho commercial and material prog
ress of tho 20 Latin-American republics
Is worthy of tbn careful attention of
the congress. The International Bureau
of the American Republics 1b doing a
useful work Ih making these nations
and their resources hotter known to
us. and In acquainting them not only
with us as a peoplo and with our pur
poses towards them, but with what we
havo to oxchango for their goods.
Panama Canal.
The work on tho Panama canal is bo
Ing done with a speed, efficiency and
entlro devotion to duty, which make It
a model for all work of tho kind. The
men on tho Isthmus, from Col. Oaethals
ana his fellow commissioners through
the entlro list of employes who are
faithfully doing their duty, havo won
their right to tho ungrudging respect
and gratitude of tho American people.
Ocean Mall Lines.
I again recommend tho extension of
the ocean mall act of 1891 so that satis,
factory American ocean mall linos to
South Amorlca, Asia, the Philippines,
and Australasia may bo established.
Hawaii.
I call particular attention to the Ter
ritory of Hawaii. The Importance of
thoso Islands is apparent, nnd tho need
of Improving their condition and de
veloping their resources Is urgent.
The Philippines.
Real progress toward self-government
Is being made in the Philippine Islands.
I trust that within a generation
the time wilt arrlvo when the Philippines
can decide for themselves whether It Is
well for them to becomo Independent, or
to continue under the protection of a ,
strong and disinterested power, able t
guarantee to the Islands order at home
and protection from foreign Invasion.
Porto Rico.
I again 'recommend that Amorlcan cit
izenship be conferred upon the people of
Porto Rico.
Cuba.
In Cuba our occupancy wilt cease In
nbout two months' time; the Cubans
have In orderly manner elected their own
governmental authorities, and the Island
will be turned over to them. Our occu
pation on.thls occasion has lasted a lit
tlo over two years, and Cuba has thriv
en ond prospered under It Our earnest
hopo and one desire Is that tho people
of the Island shall now govern them
selves with Justice, so that peace and or
der may bo secure.
Japanese Exposition.
The Japanese government has post
poned until 1917 the date of the great
international exposition, the action be
ing taken so as to Insure ample time
In which to prepare to make the expo
sition all that it should bo made. The
American commissioners havo visited
Japan and tho postponement will mere
ly give ampler opportunity for Ameri
ca to bo represented at the exposition.
Not slnco tho first international expo
sition has thero been ono of greater
Importance than this will be, marking,
ns It does, tho fiftieth anniversary of
tho ascension to the throne of tho em
peror of Japan. The extraordinary
leap to tho foremost placo among the
nations of the world mado by Japan
during this half century is something
unparalleled In all provlous history.
I take this opportunity publicly to
stato my appreciation of the way tn
which In Japan, In Australia, In New
Zealand, and In all tho states of South
America, tho battle fleet haa been ro
cMvcd nn its practice voyage around
tho world. Tho American government
enn not too ntrongly express Its appre
ciation of tho abounding and generous
hospitality shown our ships tn every
port they visited.
The Army.
As regards the army I call attention
to tho fact that while our Junior offi
cers and enlisted men stand very high,
tho present system of promotion by
seniority results In bringing into the
higher grades many men of mediocre,
capacity who have but a nhort time to
serve. No man should regard It as his
vested right to rise to tho highest rank
in tho army any moro than In any
other profession. It is a curious and
by no means creditable fact that there
should bo oo often a failure on the
part of tho publlo and Its representa
tives to understand the great need,
from tho standpoint of the service and
tho nation, of refusing to promote re
spectable, elderly incompetents. The
higher places should be given to the
most deserving men without regard to
seniority; at least seniority should be
treated as only one consideration. In
tho stress of modern Industrial com
petition no business firm could succeed
If those responsible for its management
wcro chosen simply on tho ground that
they were tho oldest people In Its em
ployment; yet this is tho course advo
cated as regards the army, and re
quired by law for all grades except
thoso of general officer. As a mattor
of fact all of the best officers In the
highest ranks of tho army are those
who have attained their present posi
tion wholly or in part by a process of
selection.
Tho scope of retiring boards should
be extended so that they could con
sider general unfitness to command for
nny cause, tn order to secure a far more
rigid enforcement than at present In
tho elimination of officers for mental,
physical or temperamental disabilities.
But this plan is recommended only it
the congress does not soo fit to provld
what In my Judgment is far betV
mat is, ior selection in promotion,
for elimination for age. Officers i.
fall to attain a certain rank by a fc'c,
tain ngc, should bo retired for In
stance, ''At a m.in nhould not attain
Held rank by the time he Is 45 he
should of courso be placed on the re-'
tired list. General ofllcera should be
selected ns at present, and one-third
of tho other promotions should be
mado by selection, tho selection to be
mado by tho president or secretary of
war from a list of at least two candi
dates proposed for each vacanoy by a
board of officers from tho arm of the
service from which tho promotion Is
to be made. A bill Is now before the
congress having for Its object to se
cure the promotion of officers to vari
ous grades at reasonable ages through
a process of selection, -by boards of of
ficers, of the least efflolontfor retire
ment with a porcentago of their pay
depending upon length of service. The
bill, although not accomplishing all
that should be done. Is a long step In
the right direction; and I earnestly '
recommend Its passage, or that of a
moro completely effective measure.
National Guard.
Now that the organized militia, the
National Guard, has been Incorporated
with the army as a part of the national
forces, It behooves the government to
do every reasonable thing In Its power
to perfect Its efficiency. It should be
assisted in Its Instruction and other
wise aided more liberally than hereto
fore. Tho continuous services of many
well-trained regular officers will be
essential In this connection. A
bill is now pcndng before the
congress creating a number of extra
officers In tho army, which If passed,
as it ought to be, will enable more
officers to be trained as Instructors of
National Guard and assigned to that
duty. In caso of war it will be of the
utmost Importance to have a large
number of trained officers to use for
turning raw levies Into good troops.
The Navy.
I approve tho recommendations of
the general board for tho In- .
crease of the navy, calling especial
attention to tho need of addi
tional destroyers and colliers, and above
ftll, of tho four buttleshtps. It Is desir
able to completo as soon as possible a
squadron of eight battleships of the best
existing type.
I most earnestly recommend that the
goncral board be by law turned Into a
general staff. Thero Is literally no ex
cuse whatever for continuing the pres
ent bureau organization of tho navy. The
navy should be treated as a purely mili
tary organization, and everything should
be subordinated to the ono object of se
curing military efficiency. A system
of promotion by morlt, cither by selec
tion or by exclusion, or by both
processes, should be introduced. It is out
of the question, if the present principle
of promotion by moro seniority Is kept,
to expect to get the best rosulUt from the
higher officers. Our men come loo old,
and stay for too short u tlmo, In tho high
command positions.
Nothing better for the navy from every
standpoint has ever occurred than the
cruise of tho battle fleet around the
world. The Improvement of the ships in
every way has been extraordinary, and
they have gained far more experience
In battle tactics than they would have
gained If they had stayed in tho Atlantic
waters. The American people have cause
for profound gratification, both in view
of the excellent condition of the Meet as
shown by this cruise, and In view of the
Improvement the crulso has workod In
this already high condition. I do not
bcllevo that thero Is any other service in
the world in which the average of char
acter and efficiency In the enlisted men
Is as high as Is now the case In our own,
THEODORU ROOSEVELT.
The White House, Tuesday. December
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