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; j THE PRESIDENT'S
\
) . , ANNUAL MESSAGE
" . TO LAWMAKERS
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t. . Recommends Legislaton on
'l . New and Important
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'
Subjects.
;
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' . : INCOME - TAX
: / INCOMEINHERIANCE
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,
, . " , : .
. \ # He Beleves Such Laws Would Curb
I " Growth of Fortunes to Dan-
t gerous Proportions.
, W ,
'
I
H' I Views on Negro -
Queston-Asks
; , ' -t for Currency Reform , and
" Shlppln
" , r Bil-Would Make CIHzens of Japs ,
1 Many fther Important Subjects
tlscussed.
Wnsnlngton , ; Roose-
, Vel'R message to the second session " of
, . the FICty.nlnth congress' deals , with a
, number of new and Importtnt subjects ,
chief of which Is the govermeI proso-
buton of the trustR , the abuse of Injunc-
lens In labor troubles , the negro ques-
ton , the preachln of cass hatred
btween capital and labor , addllona logls-
laton for the control or large corpora-
. tons. 1 federal Inherltrmco and Income
tax law'nnd currency reform.
The message opens with n statement ,
Dr what the last congress left unfnished ,
and of this he says :
"I again recommend a law prohibitng
al corporatons from contributng to the
campaign expenses of un ' party. Such
a bi has alread ' past ono house of con-
. Lt Inlvldulls contrlbuto as they
goss.
desire ; but let us Ilrohlbit In oltectvo
. fashion al corportons Crom mlltng
contributons for any poltcal purpose ,
or .
directy Indirecty.
"Anothor bi which hls just past ono
house or the congress and which Is 'r-
I cnty necessary should be enacted Into
law Is that conferln upon the government -
ment the right of appeal In criminal
. . cases on questons of la . This right
oxlsts In mlny of the sltes ; I exists In
> Ule District of Columbia. ly act of the
ongress. I Is of course not proposed'
that In any case 1 ver lct for .ho defendant -
fondant n the merits should be set
nslde. RccenUy In one distrIct whor"
he sovernment had Indicted certain IJer-
sons for conspiracy In connecton wltl
I rebates. . the court sustaJn d the defond-
. Int.s demurrer : whie In' another jurls-
Wcton nn Indictment Cor conspiracy to
obtin rebates his been sustained by
the court , convictons obtained under It.
ad two defendants sentenced to Imllrls-
onmert. The two cases referred to may
not be In real conlct with each othor.
but It Is unfortunate thut there 'should '
ven be an apparent conllct. At 'pres-
ent there Is nQ WiY by which te go v-
" onment can cause such a con1ct. when
; It occurs , to be solved by an appeal to
n hllher court ; and the wheels oC justco'
are blocked without any re I decision of
. rlo Queston. 1 cln not too strongly
the passae of the bl In .
Queston.
/go !
Calure to pass wl re8ult In seriously ,
mprln the Iovernment In Is etorl
, obtain justce , especialy aalnst
wealhY Individuals or corportons : who
10 wr n ; and may also prevent the
government Cram obtining justce , 10-
! "leWorlwrs who" lUl not themselves
nble etectvely to contest n case where
the jud enl or an Inforlor court has
been against them. I have specifcaly
In vlow a recent decision by a district
judge leaving raiway employees wih.
out remedy for violaton of a certain so-
labor statute. I seems an absurd-
caled
Iy to permit a slnllo district judge ,
against what Jay bo the judment of
:
the Immense his
majorly o coleagues
on the bench , to' declare a law solemnly
enacted b ' the ' to be "uncon-
conlI'OSS
attutonal , " and' thcn to deny to the
govorment the rlht to have the supreme -
premo court dcfnltey dcclde the Ques-
tion. "
Evasion by Technicaltes.
"In connecton with this matter , I would
like to cal attenton to the very tmsat-
sfactory state 'of our criminal law1 re-
aUltlng In large part from the hab t of
lettng aside the judgments of Inferior
courts on technicaltes absolutely unconnected -
\ connected with the merits OC' the case ,
vnd where thcre Is no atempt to show
, that there has becn anr' faiure of sul-
atanta ] justce. I wou d be wen to on-
act a law providing something to the
I that :
etect
" 0 juelgment shal be set , aside or new
tral gmnted In Iny cause. civi or rlm-
Innl , on the ground o misdirecton or the
jury or the Improper udmlsslon or re-
jecton of evldencu , or for error as to any
mater of pleading or procedure unless ,
In the opinion of th court to which' the
npplcaton Is made. afer In examina-
of the cause , It -
ton entre aUrma-
tlvel appear that the error complained
ot hnR resuled In a mlscarrlagu of
"
-
justce"
Injunctlcns.
On the subject at the abolton of In-
junctons In labor disputes , he KI 'S :
"In my last message I Buggesled the enactment -
actment of / law In connecton with the
bstance or Injunctons , attenton hav-
Ing been sharplY drawn to the matter
y the demand that the right of applyIng -
Ing Injunctons In labor cases should be
Wholy abolshed. I Is at least doubtful
whether I law abolshing alogether the
ule of Injunctons In such cuses would
stand the test of the courts ; In which
ot course the ] eslliaton would he
Snetectve. co Moreover , I beleve I WoUld
be wrong altogether to prohibit the use
of Injunctons , I Is criminal to permit
smpathy with criminals to wealeen our
hands In upholding the law : and It. men
to destroy lfe or property by mob
violence there should le no Impairment
of the power of the courts to deal with
them In the most summary and etectve
way possible. But so far as possible the
abuse at the power should be provided
against by some such law as 1 advocated
lut year.
"In mater of Injunctons there Is
tis the hands of the judiciar 1
necessary power which Is nevertheless
subject to the possibity of grave abuse.
It { a power that should be exercised
I extreme care and should b& lub.
wih to the jealous scrutny ot al men ,
and condemnaton should be meted out
al much to the judge who Cals to USE
It boldly when necessary as to the judge
ho use It wantonly or oppresl1vely ,
. Ot course , a judge strong enough to be
tor his ofoe wi enjoin any resort
tt volence or Intmidaton. especialy b
conspiracy , no mater what his oplnlo )
may be of the rights of the original quar.
tel. There must be no hesitaton I
ealng with disorder. Dut there musl
bo no such abuse of the In'
lkewise
junctv power as Is Impled In torblddln
1lborll men to strive for tholr own bet.
tement In peaceful and lawful ways
nor must the Injuncton be used morel )
to aid lome big corporaton In carryln !
, out schemes for is own aggrandizement
must be remembered that
I I prelm
In.ry Injuncton In R In lar case , I
granted wihout adequate proof ( evel
when authority can be Cound to luppor
the conclusions of Inw on which It II
tounded ) , may ofen settl the dlsputl
between the partos : and therefore I
ImproperlY granted may do Irreparabl ,
wrong. Yet there aru many judles whe
.
Assume a mater-of.fact course
grlntnl
of I prelminary Injuncton to be thl
ordinary and prOller judicial dlsposltol
ot such cases ; and there lu\e undoubt
edly been Ialrant wrongs commltel
by judges In connecton wih labor dls
putes even wihIn the .ast tew year
"lho 1 think much lels ofen than II
ormer yenrs. Such judges by tholr un
wise acton Immensely Itrengthen th' '
,
IUI 0 : those Wi , are atrlvlng. entrel :
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.t' , . , . ,
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to do awny with the power of InJuncton :
and theretoro such of
cnrelNIs Ule tie
' . tends to
Injunct' , threBen Is
vor eXIS ( nCe , for If the American peo-
plo ever become convinced that this
proccl ! Is haliualy abuscd , whothcr In
labor or In maters nt.
maters atcctn ! It be .
fcctn corrtons , wi wel.nlgh
Imposslblo to prvent Its nbolton. "
The Negro Problem.
The ncro ) Iroblem Is given ( Rid ora-
; 110 atenton. , afer caling ntenton ti
the tnct that 10 socton of the country
Is ( "ce from CnOlR , that no
anl secton
hns occasion to jeer at the lhortcomlngs
of any other locton , ho turns to the subject -
ject oC Iynchlnc ! Rnd " " < al ) ' as lP-
plod to the nelro of the south. 10 snys
the greatest existng caUle for mob Inw
Is the perpetrton by the blncks of the
crlmo of rnpo. I crime which ho terms
even worse than murder. lo quotcs .he
ndmonltons to the whlo people spokln
by Oov , Cnndler. of Oeorgln , Bore years
and by 00Jolks , oC Alabnma , re-
ngol Iy , amt then says : '
. "Evory colored man hould realzo
that the worst enemy of ts race 18 the
nlgro crhnlnnl. nnd nbove ni the 10-
Kro criminal who comml8 the drend-
ful crime of ; and It should bo Cel
as In the highest degree nn otense
against the whole country. and agnlnst
the colored race In partcular , Cor a
colored man to fal to help the o cerB
of the law In huntng down with ni
pos81blo earnestne8S and ZN\I every
such Infamous otonder. Moreover. In
my julgment. the crime ot rnpe Ihould
always 10 punl8hed wlh death , a8 Is
the cn80 with murder ; assault wih Intent -
tent to commit rale should be mndo I
caplll crime. at leaRt In the discreton
ot the court : and provision should bo
mndo by which the punishment mny
Colow Immediately upon the heels of
the otense : whlo the trial should bo
10 conducted that tto victm noel not
be wnntonly shnmed whlC giving ts-
tmony. nnl thnt the lelst possible
given to the .
publciy shnl 10 dotals.
The members of the whlto rnce on
the Qther hand should underatand that
every lynching representR by JURt so
much a loosonlng ot the band8 of clv-
Iznton ; that the spirit of lynching
Inevitably throws Into prominence In
the community al the toul and ovl
creatures who dwel theroln. No mnn
cnn take pnrt In the torture oC a human -
man being without having his own
moral nature lowered ,
Every I 'nchlng menns just so much
moral deterioraton In ni the chidren
who have any knowledge oC It , nnil
thercore just so much additonal
trouble Cor the next of
generaton
Americans.
"Let justco bo both sure and swif ;
but let It bo justce under the Inw.
and not the wid nnd croolted aavagery
of I mob.
Need for Negro Educaton.
"There Is another mater which has
1 direct bearing upon this mater oC
I'nchlng and oC the lrutal crime which
sometmea cals It forth and nt oher
tmes merely furnishes the excuse for
Is oxlatence. I Is out of the queston
for our people ns a whole
pormanonty
to rise by treading down nny of tholr
own numbor. Even those who themselves -
selves for the moment proft b ' luch
malreatment of their folows wil In
the long run also surer. No more
Ihortslrhted polcy can bo Imagined
than , In the fancied Interest of one
class. to prevent the educnton of nn-
other class. The tree publc , school , the
chance for each 10y or girl to get a
goOd elementary oducatlon , les nt the
foundaton of our whole situ-
YOltcnl
aton. In every commun ty the poor-
est citzens. th03e who need the schools
most. would bo deprived oC thom If
they only received school facltos
proportonnte ! to the taxes they paid.
This Is 19 true of ono porton ot our
country as oC another. I Is as true ,
Cor the negro as f r the white mnn.
'he white man , l he Is 'Ise. wl de-
cine to alow the negroef In a mass to
to manhood and womanhood
without educaton. Unquestonably ed-
ucnton such as , Is obtained In our pub-
schools oes not do everything towards -
wards making a man I good citzen ;
hut It does much. The 10weRt and most
brltnl criminals , those tor Instancc
who commit the crime of rape. Ire In
the great majority men who have had
elthcr no educaton or \ery Hto ; just
as they are nlmost Invariably men who
own no property : Cor the man who
puts money by out of his carnlngs.
1ea th ! man who acquires educaton.
Is usualy lfted above mere brutal
criminalty. , or eourle the best type
ot educaton for the colored 'mnn , t-
] tcn as \vholo , . Is lucb educatpn as
Is conCerted In sChools Ilte Hampton
and TusJegie ; where the boys , and
girls , the } 'oung men and young women -
men , are trained' Industrialy as wel
as In th ordln ry pUblc school
hranches. , 'fhe Bradu te oC these
lchools turn out wel In the great majority -
jority of ' . rnd bardly any oC them
hecome crlmlnas , whl0 what ltte
crlmlnafty there Is never taltes the
form of that brutal vlolenco which Invites -
vites lynch law , Every graduate - oC
thele 'Hchools-and COI the mater of
that every ohor colored man or \\0-
man-who Icads 1 Ute so setul and
honorahle , as to win the &ood wil and
r spect of those whies whose' neighbor -
bor he or she Is. thereby helps the
whole oolored race as It can hu hoped
In no other wny : for next to the necro
hlmsllt. the man who can do most to
help the nCATO Is his whlto nolghbor
who lves nelu him ; and 'our , steady
should be to th
etort bqtcr rolatons
between the , two. Great the the bono-
of these schools has been to tholr
colored puplf nnd to the . olored peo-
ple. It may wel bu questoned whether
the beneft has not been nt 10It as
great to the white people among whom
these colored PUpis lve' atter they
graduate. " .
Capital and Labor.
On the subject of capital nnd lalr
the president takes the arltatorl of
hatred to task nnd Bays "to cnAR
hltled to the rich man. al such , . . .
to seee to mlsleRd nnd Inlamo to mld-
WhOSD harel
ness honest men lves Ire
and who have not the kind of mental
tllnln which wi plrmlt them to np-
preclate the danger In the doctrines
preachHl Is to commit a crime azalmt :
the body poltc and to be false to every
wprth ' principle nnd traditon ot Amer-
Icnn natonal lte. " Contnuing on this
sublect he says :
"rho IJlaln people who think-the
mechanics , farmers , merchants. workers -
ers with hend or hand. the men to
whom American traditons are dear ,
who love their country and try to act
eTtCnty b ' thclr nelJhbors. owe I to
themselves to rom ember that the moat
dama lng blow that can be given pop-
ulnr government Is to elect an unworthy -
worthy and slnl/ter aFlttor on n
platorm oC vlolenco and hypocrl : ' .
'Vhenever such nn Issue Is raised In
this country nothlnr can be glnod by
fnching Cram It. Cor In such case dem-
ocracy Is Itsel on trial , popular self-
government unrer republcln forms II
Itself on trlnl. The triumph ot the
mob Is just as ovl a thing al the triumph -
umph of the plutocracy , and to have
escaped one danger avais nothing
whntever If we sucuumb to the other.
In the In(1 thb honest man , whether richer
or poor. who earns his own lving and
trils to dlal justy by hi" felows. has
as much to Cear Cram the Insincere
and unworthy demago . promising
much nnd performing nothing , or else
performing nothln but evi who
!
would set on the mob to plunder the
rloh. as from the craCty corruptonist
who. tor his own ends , would permit
the common people to ba exploited by
the very wealhy. I we over let thla
government Cal Into the hands of men
of either of these two clasles. we shal
show ourselves false to America's past
Moreover. the ( lemlgo a"d corrup-
ofen work hand In hand. hcre
tonist
are a this moment woalhy reacton-
aries of such obtuse moralty that they
relard the pUblo strvant who prose.
cut s them when they violate the law ,
or who seeks to make them benr their
proper shnro of the pUblc burdens. I
being oven more objcctonnblt than
the violent nglator who hounds on
the mob to plundr the rich. 'fhore h
to choose bet ween such I reo
nothlnr nml such nn a later ; Cunda.
mental ' they nre alko In their selnsl !
disregard at the rlhts of othera ; and
It II natural that they Ihoutt join 1/
oppositon to any movement of whlct
the aim II fearlelsly to cia exact anv
even justce to ni. "
Rairoad Employees' Hours.
He nsks for the passlngof the bi 1m ,
Itng the number of hours" 01
emplo 'ment of rnlroad employes. nnl
classe8 the measure as a very modert !
one , le sa 's the aim of should bl
ta at"adlv r"h'lp L.numbar nt hnur.
.
,
"
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.
of Inbor , with ns n Real the Ienornl In.
troucton of an clah.hour day , but In-
81stl that on the Isthmus of lanlml the
conditons are BO dlteront from whl
they Ire hlrn thnt the Introelucton of nn
tIKnt.hour day on the cnnal woull bo
absur. nnd conlnucl , "Just I\bout as nb-
lurd ns It lB. , 10 Cnr ns the Ilthmus Ie
conclrncd , where white labor cnll0t be
omlloycd. to hothel 18 to whether the
yelow work Is men. done " by nlen blacle 10n or nlon
Investgaton of Disputes.
Ho urges the ennctmont ot 1 tlrallc
chid labor Inw Cor the DI8trict of Co-
lumbll anel the terrlol'lep. nml a ( eteral
Investgnton of the subject of chlht Ind
fNuale labor throUlhout the country.
He ro\lo\8 the work of the oOlml/llon
Investgato Inlor coniltonl
In the coni 10lds of lennsylvnnla In 192 ,
nnd refer to the wllh of the commlBslon
"that the Itnhl nnd Cedern lovernmentR
should pro\'ldo the machinery for what
mny be calN\ the compulBory In\(8tln-
of tween
ton c ntro\crelc8 le cmployers
Ind employes when they nrlsl. " Aftlr
roerrlng to the Cnet that a bi has 11-
ready been Introduced to this eml ho
sat" :
.
Many of thele strikes nnd lockout
wouh not have occurreel had the partoa
to the dlslJto ben rlQulrll to nppear
before bed '
In unprejudiced ) ropreRentnl
the nnton amI , face to fnco , stnte the
rensons for their contenton. In most
Instnnces the dlsputo wou ) tloubtess bo
found to be duo to I mlsundettandlng
by each of the other'l rlghtl asgrlvltlc
of to ne-
by nn unWII/lnos8 eltler party
cept as truu t 1e statements of the other
a to the justco or Injustce ot the 1nt-
tor8 In dispute. The exorclso ot I ju-
dical spirit ly n disinterested body
representng the Cederl Iovornmont ,
such 1 would be provided by I commis
sion , on concilaton nnd nrbltrnton
would tend to create nn ntmospherc of
trlendlnoss nnd conciiaton between con-
tending partes ; and the glvlng , ach sldo
nn equal opportunity to present fuly Its
cas In the presence ot the other would ,
prevent mnn dlsputos from devolophll
Into serious Itrlkos or lockouts , nnd In
other cnsel would enable the commission -
sion to persuade the opposing partes , to
como to term8.
"In this ago at great corpornlo nnd 11-
lar combinatons ! nelthor Cmployers nor ,
' at
employees ehoulu be IoU uomplool
the mercy of the BtrOnger party to 1 diD.
pute. regardless of the rl hteousnes8 of
their resJectvo clnlms. The proposed
measure would bo In the Ino of securing
recogniton of the Cact that In mnny
the hn an Interest
etrlcs publc Is41
which cannot wisely be dlsrognrdod ; nn.
Interest not merely of general con\'on-
lence , for the queston of : ' just anl
.
proper must also be con.
sldored. pUllc polcy oC this Idnd
Ii al legislate
It to aelvance ,
11 wel cautously testn/
each stop ly the nctual resuls ; the ItOP
proposed can surel be safely taken. tor
the decisions of the comllllonoul(1
not bld the In legal fushlon , and
partes
yet wouhl give n chance Cor opinIon -
'ublc
Ion to exert Is ful rorce for ' the right. "
. Control of Corporations.
A consldernlle porton or the message
IB devoted to the sUbject of federal control -
trol of corporatons In wha he refers to
the pnssago nt the last Icsslo" at the
rate , meat Inspecton and fem } Inws , and
8ays that nl of the so , lave alreaty just-
their onactment. but recommends
fed
the ! umm ment of the mcnt Inspecton
law ns to put dates on the labels of
10
mcnt rOduct8. nnl also to place the
cost a 0tho packers rnthor
than [ Inspecton .overnment , Contnuing on
this nUbject of . the contol of corporatons
by the federal government ho 8nys :
"It cannot too ofen be repented that experience -
perience has concluslvel ' shown the Im-
of securing b ' the nctons of
posBlblly
nearly half a hundred dltorent 8tate
legislatures anything but Ineectve
chaos In the wa ' at denlng with the
great which do not operate
corJratons
cxcluDlvey within the lmits oC anyone
state. In some method , whether by a
law or In other fashion ,
we must exercise , that at nn early
date , a far more complete control than
at present over these great corpora-
- control that wi among ether
things pre\'ent the ovls at excesalve
. and that wi compel
ovorcapltalzaton.
the dlsclosuros by each big corpornton
of Its stockholders nnd of Its proportes
and buslress. 'whother owned dlrcty or
thru subsidiary or aflated corporntons ,
This wi tend to put 1 atop to the securIng -
Ing or Inordlnato profs by fnvored
nt the whethcr of
Indlvldund oxpnse
. the . genernl pUblc , the ntocltholders1 or
\VImvorkbrs. . - Oul eftort shoulu be
not so much to prevent contldaton as
luch. but 'so to super.lso and contol 'It
as to see that It resljll In no hlrl to
the . The react onar or ultrcon-
teoplo.
. apologists Cor thel miluso oC
ser.vatye
the to secure such
control as n' step toward 'socialsm. As a
mater qf Cact It Is these reatolules
and who are themselves -
ulraconservatves Increasing loclals-
. One at the most emolent
methods ot the conseQuences ot
a avertn agitaton , which In 8 IJer
danlerous Is to the 20 per cont.
wong remey
of us to which the agitaton Is wel
evi
founded. Tie best 'way to avert the very
undeKlrable move for the governmental
ownership of Is to secure by
rulways
the on behal of the pcople
as a whole such adeQuate control and
at the Interstate com-
regulnton carrlerl as gelt away with the
evls 10n which give rlso to the agitaton
against them. So the proplr antdote
to the , anlwlckod agitaton
galnst danrerous ot wcnlth as suoh Is to
: and execu-
ecure by proper leglslnton
: of the grave
abuses which actualy abolton obtain In con-
the business use of wealth
wih
necton
under our present system-or rathtr no
to any adc-
- talure exercso
Quato control at al. Some persons foak
It the exeroile of such governmonll
control would do awny with the freedom
.
of Individual dwart Indl.
vidual . Initatve not a flct I
would etort. vorlablo calamity to fal to
put promlum upon Indlvldunl Inltatvo ,
1
Individual capacity and 'otort ' ; upon the
anergy. character nnd Coroslght wJ11ch
It Ie so Important to encourage In the
nut as of fact the
a mater
Individual nnd degrading ecect at pure
, and of extreme
Is
especialy
form communism , and the destructon o (
Indtvldual character which the ' would
brln about. are In pllrt achieved by the
! c which
mpetton
wholy unreglated
In single Individual or corpor-
resuls rising I nt the expense of al others
aton his or Its rlso etectualy checks al
unt and reduces Carmer compot-
competton I postton . of utter Inferioriy and
subordinaton. nnd enforcing such legis-
laton enactng congr el nlrpndy hae to Is
credit. we nro working on a coherent
111an , with the Gtcd ' endeavor to locuro
the needed reform by the joint acton of
the moderate men , the praln men who
do not wish anything hysterical or
dangerous , but who do Intend to deal
, In resolute commonsense Clhlon wih
the real and great ovls of the present
system. The reactonaries and the vlo-
lent show symptoml or join-
extremist us. Doth assert tor
Instance , that I logcal. we shou ( d go
to government ownership of rairoads
and the ' the rectonarlesh because
on such lke' , ssue they think t e people
would stnd with them. whlo the 'ex-
tremists cre rather to preach discontent
and than to achieve sold reo
suIt. agitaton I matter of fact , our positon
Is as remote from that of the bourbon
as trom thlt ot the 'Imprac.
roactonary slnlstor visionary. We hold
that the government should not conducl
the business at the naton. but that I
should exercise luch supervision as wil
Insure Its being conducted In the Inter.
est of the naton. Our nlm Is. so tar a !
may be , to ! ecure. for al decent hard.
working men , equaly ot opportuniy anv
equalY of burdep.
Combinations Arc Necesary.
"The actull working of our laws ha !
shown that the etort to prolllhlt al com.
blnaton , good 01' bad , Is noxlou ! where
It Is not Inetect\o. Combinaton 01
of labor Is
capltll combinaton /
ike
necessary element of our present Indus.
trial system. I Is not posslblo completel
)
to prevent It ; and It It were p08slblc ,
such complete prevonUon would do dam.
uge to the body Iloltc.Vhat we nebv
Is not \alnly to 11revent 11 combinaton ,
but to such adequah
lecure rl/o\ous Ind
control nd suporvlslon ot the comllna ,
as to prevent their Injuring the
publc. ton8 or exlltlJ In such form IS Inev.
Iably to threntln Injurer the mer
fnot that I combinaton has eecure'
' compelo ! control or a neces.
practcal
sary of le woull uncer nny circum.
Itances Ihow thnt such comblnnton wnl
to be presumell to le ad\erse to the pub ,
Interest. I Is unfortunnte that OUI
present laws should forbid ni comblna'
tons , Inltoac of shnrly clscrlmlnatnJ
between those combinatons which d (
ovl. Hebates , for Instance , are as oCer
dUQ to tlu pealuru at bit ahlppera ( I
.
was shown 11 the h1\'NJtht\ton of the
8tlnlnll 01 company 1m , ni hns 110n
Ihown since by the InveRt Kntbn of the
trusts ) to the -
toblceo nnl SUIar al InU-
\ ' or bl ralrol\dl , OWm ralronds
11\0 , comlino tor the purpose ot
woul1 lke
prq\ontnc I bil Ihlpper tOI Inniltnln-
In nel'nntng ! ' nt the oXllen"e
of hn\lrOPtr \ I ) nnel of the sentrnl pub- ,
RhIJlHB
le. Slch n combinaton , Inltel\1 oC behu ;
be . In
forbidden by law , Ihoult ( n\orcd.
It be to
other werll ! Ihouh permlteet
rnlrontls to make alreemonl , . provlIcd
these lreOmontl were ennctolee\ the
IntlrRtalo l'ommerco . commlslion and
were I1Ublshl1. " .lh thelo two conel-
t\onR \ cmnplee ) with It Is Impolslble to
whnt hnrm Buch n combinaton coull
110 to the ) Iublc at largo. I II n pUblo
. ha\o on the Blatute boolt8 n Inw
ovl.to \
of enforcement
ful bocaulo
Incnllblo
lloth jldges nnel juriIl realzo thnt Its
ful enorlemont would dCltroy the 111/1-
neS8 of the country ; for the reRul I to
make elecent rnlrond /en vloh\tors of
the law "lnlnst tholr wi , anel to put a
premium on the behavior of the wlul
wrongdoers. Such 1 resUl In turn tunet'
to threw , the decent man nnd the wlhl
wrongdoer Into close nB80cllton , nnet In
the end to drng clown the tormer to the
lator'l level : for the lal who becomes
a In wbrcnlcor In oue wny ulhapply tOlels
to lese ni repect for l\w nn to be
\.llnC to brlak condelnnton I in /n\Y ways. coult No be
visited ullon n law thal II contnlneet jl
the WOrd9 of the Intortato conlnorco
'
when In
comml1810n , commentng 'Ulol
the fnct thnt the nUl8rOl8 joint trnle
l\ssoclatol8 do tcchnlcnly'Iolnto the
l\w. they lay : "The ! eclRlon of the
Unlteet Statot IUllremo Cllrt In the
TransmluelRBllpl calo nnd the Joint
TI'a ] o n/soclaton cnRo hae pro\tucel1 no
upon the ralwa ' olorn-
practcal otect
tonl of the country. Buch assocatoll.
In fact , exilt now ns the ' did booro
thelo (1eclslons , ald wllh the Bamo nen.
ernl etect. II justce to ni pnrtes wo
ouht probnbly to ndd that It Is ell\clit \
to see how our Interstnte rnlhvaY8 coull
be oporatott wih Ilue relnrel to the Interest -
est o ( the shlPIJr nnd the rnlway
concerted ncton of the kind afforded -
forded thru theM alsoclntons. "
This meanR that the law IS conltrueel
by the Rupromo court Is luch thnt the
bu lne81 of th country annot bo con-
elucted without broaklng I. I recommend
that 'Ol h'e cnroful early conBlder-
nnt
Iton to thll sUbject , Ind I you Ind the .
opinion of the Interstate eommerco com.
ml8slon justfed. that you Imemt the
law so ns to obviae the ovl dlscloseel. :
Inheritance and Income Tax. I
I was expected thlt the esldont
would rotor In Homo wny to hil belef
In the necessity Cor the curbln of enormous -
mous fortWeB , nnd he has done 90 b
recommondln fo both Income )
como and an Ictsllton tnx. Ho be-
Inorltnce
10vos the govermont I10ul(1 Imlloso n
Jrduated Inherltnnco tax. nmI If pOII-
blo. a craetuntei InC0l10 tlX. He BIWS :
"I such n subject
11 wel awathlt
ns this needs long nnd careful stud ' In
order thnt the peole mny become flml-
Inr with whlt 18 ) to be done ,
propone
may clearly see the necosslty ot proceedIng -
Ing with wisdom nnd solf.restralnt , nuel
mlY mnke up their minds jU8t how fnr
they are wilng to go 11 the 1lter :
whlo only tnlned loglslators cn worlt
out the project In neccllluy doll. Bul
1 Ceel that In the near tuturo our naton-
nl lellelntorA Ihould unact n law provhl-
In for I graeluatcd Inherltnnco tax b '
which a stcluly Ilcrel lnl rnto of duty
shoull be ut upon nl moneys or other
vnlulblea coming by gif lequest , or
elevlso to Iny Indlvldul ] or cOr10raton.
I may bo wol to maleo the tax hen vy
In a8 the Individual benefed
Is remote of kin. In nny event , In / '
judHent the pro rl\tn of the tnx nhouhl
Increae very heavl ' wih the Incrlnse
of the amount left to Iny one Indlvilual
Iter n cortlin point lUl been renchel ] .
I Is most doslrblo to encournc , thrif
and ambiton , and a potent source of
thrift and Imblton Is the deslro on the
part of the hrendWlnner to leave hl8 chi-
dren wel ot. 'fhls object can le ntllnCd
by maldn" the tax very smnl on moderato -
ate amounts of property let ; beclLUlo
the prime object shoul be to put a con-
Increasing burden on the Inher-
stanty of those s\"olen tort un os which
Iance
It Is certnlnlY of no benelt to this country -
try to perpetuate.
'hcro can bo no qUeston of the eth-
Icl propriety of the Kovernment thus do-
tormlnln the Ullon wh1ch
conditons
or nhcrltnnce should be nnr
If how Car' ' the InherlltcI. tnx
Exacty . ns an Incldont , hlvo the otcct of
transmllslon by dqvlso or
thl
Iml\n thu enormous fortuncl 11 qUtUon ,
git not necesslry nt present to dl8uSI
I Is wile thnt progress In this directon
should be grdual. At 1ut n permanent
natonal Inherltnnco tax. whlo It might
beoro than uny 8uch tax
/oro 8ubstnntal
has hlthorto , not npproxlmato ,
leen
either In nmount nee the extent of the
. to what such C
Increlse ly uradunton.
should be.
ta ultmately
Inheritance Tax Constutonal.
"This Ipecles of tax ha again and again
been Imposed , alho only temporariy , hy
the govtrnmlnt. was
natonal I Iret
Impoled by the nct ot July 6. } 797 , when
the malcrs of the Consttuton were
and nt the head ot atalrs. It was
n graduatcd tax ; the smal In anIunt.
the amount
the rate wal Increase wih
lett to any Individual , exceptons helng
made In the cnse of certain cloBe Idn. A
tax was'lgaln Imposed by the
simiar July 1 , 1862 ; 'I minimum sum of
$ IQO In personnl prperty being excepted
from , ' the tax then becoming
taxnton accorilng to the remoteness
kin. The war-revenue nct of June 13 ,
ot
1&98 , provldcd for an Inhorltance tax on
any sum exceeding the value of $10.00
the rate ot tax Incroashl both In accordance -
ance with the nmounts ler and In accordance -
cordanco the leglltee's remoteness
of kin. The supreme court his held that
the succesion tax Imposell at th tme
of the war was not direct tax but
civi .
an Impose of exclso which was bth con.
and . Moro the
vnld. recenty
sttutonnl , an ollinion delvcred by Mr.
Justce 'Whlte. which contalncl u ex-
discussion
able and olaborto
at the powers of the congress to Impose
( Ieath dutls , sustained the consttuton-
ot the Inhorltance tux teature of the
war-revenue act of lE98.
Ie Income Tax Consttutonal ?
' 'In Its Incidents. and apart trom the
main purpose of rnlslng revenue un
Income tax ntands Qn nn entroly dlor-
ont from nn Inheritance tax , because -
cause It Involves no queston of the per-
of fortunes swolen to an unhealthy -
healthy size. The Queston Is In Its
essence 1 QuesUon tt tl0 propcr adjull-
ment of burdens to bonelts. As the
law now stands It Is undoubteily dif-
cult to devllo Income
I nltonll lx
which shal le constutonll. lut
whether I Is absolutely Imposslblo II nn-
ether queston ; and If p0811ble It Is most
certainly . 'fhe frst purely Income -
leslrnble.
come tex law was ast by the congress
In 18611 but the most Important law dealIng -
Ing with the subject wa that of 1&14 ,
Thts the court h ld to bo unconsttu.
.
tonll.
"The queston Is undoubtedly very In.
trlcatf dolcato , nnd troubleuome. 'he
docllion of the court wau only reuchcc
by one majority , I Is tl. law of the
land , Ind , oC coure , II excepted ns suct
nnd loyaly obeyed by 'al ' good citzens ,
Neverthele. th hesitaton evldent ,
telt by the oourt ni a whole In comlnl
to I conclusion , when considered to.
gether with the prevloul deolslons 0/
the subject , may perhaps Indicate thE
ot devising 4 consttutonal
pOllblty law which Ihal subltan.
the almee
ncccomplsh resuls
taly
The oC the con ,
at dlnlcult nmendln.
sttuton Is 80 great that only real ne.
cesslty can justfy I resort thereto
Every otort should be made In dealn
wih thll subject , a8 with the subjeci
oC thl proper control by the natona'
government over the use of corporatl
wealh Interstate business , to devlsl
which without Buch
leglslnton actor
atliin the desird end : but If thll
shal fals , there wi ulhnately be no aI ,
to amend ,
ternatve . I consttutonnl
He makes n strong plea Cor teehnlca
amI Industrial educlton tor the masses
nnt whie the federal Iovermont can d (
lte In thl8 Inu. ho Iskl thl
l4t
8cllools of this character he estallshe (
In the DIs11ct of Columbia ns In ex
ample to the vllous : sta tos.
Agrlculurnl Interests.
le appeals tor every oncourngemon
thlt the congress cnn glvo to the agrl
culural Interasts of the country. I ,
Ilolnts to the good that Is being done b'
the \arlouK forms of grange organlzn
, sa's :
tons /nd )
"Several ( nctorl must cooperto In thl
Imlrovement of the farmer's conditon
He must have the chance to be cducatC
In the wldolt possible sense-In the sonsl
whlcl kcep ever In view the Iltmutl
. .
.
- . " _ , . , . . . ' . ' ' 0
.
. ,
-
reintOn8hly hetwcon the theory or 0(11-
nne the tacts ot . In
( nton Ifo. nl
cdlcnton wo fhould whlon our nhns , I
I. Jomt thin" to prOIUce 1 certin number -
ber ot trnhlle1 se1holnre amI ItUetents ;
but the IllUraton sUlcrlntemled by the
stnte mUlt leelc rnther to 11Wduce I hun-
drctt geol ) Clh l'l" thun , "urely one
fholnr , nnl1 It mlat bo trned now 111
the/ from the clnss book to the 8tle1y
o ( the grrat hoolt ot nltlre Iself. Thlf
Is es eCaly true of the farmer , Ill ha ,
\len polntCI out nKaln and ngaln by ni
obBor\'er 10nt competent to IJS ! Ilrnc-
on the problem8 of our
trnl Judrtont
countr ' le , Al stUIOts now roalzo
thnt educnton Ilst seek to tmln the
IJWerR of ) ' nnd to
execUtvo 'oun/ peollo
con for lore ronl . slllllcnnce Iilon the
phmlo "dlgnl } of Inbor , " Rnlto pro-
the RO thnt In to
pupll 1llltol
laro : elo\'ololhl/ II the hlJhllt degree
/
his Im'lvhlunl capnolty for work , the '
may to\"othor holV create 1 rlllt pUblc
olllnon. ( 'ne ) " ! : .w In mnny WIYI luclnl
become nccosllry . : \ In the . OrllnlzatO/ worltt
amt It hlI nceonllsheluch for gOO
In the worhl of lalor. I 190 lels ne008-
Rnry tor Clrl0r8. , Buch R movement ni
the 10\010nt hI In Ilel
eec
\
, rl\le of - rur-
Imt II rallble 1 wel-nigh Innnlo
ther IxtlnBlon for KOOI so long .1S It Is
kOllt to Is own logltmate bUllnlR. ' 'ho
bonontl to 11 dorlvlet hr the nssoclatun
o ( farmerl tor mutun 11v ltlJe nro
plrty economlf nnt JI\rty Ioclolo"lcal ,
"Moreo' 'or , whlo II . the Ion ! rll vohl-
tnry orort wi pro..o mor elcacions
al/lstnno , the
thal IOVemlclt / ( whie
fnrmorR IUlt prlmnrl ) ' tto most for
t1clscl\e . yt the ! o\'Cmmont ( n/ also
. The of
mich. ( Ioartmlnt Igrlculturo
10 ) .
haR brnkon 10W ground Inlny elroc.
tons , anel ) 'tI\r bY ' .nr It fhuls how It
CIIlllrOVO Its mothoels ntt 110\010p
frlah ulefulnesl. II conslnnt ttort Is
to glvo the RO\"erlentul 1\lllslnncE In
the most otocU\o Wl ' ; thnt Is , thru \s.
of fnrmors rnthol' to or
loclntonR tmn
thru lnt\hunl ( nrror8. I IR Ilso Rtr\-
InK to coorelnntl I ! worle wih the aKrl.
dopartmentl of the Hlwernl
culural , nnt 10 tnr ns It I mvn work 11
] . to l'oonlhu\te I wih the
cetucatonn
work of other cducat011 luthorltcl.
Agrlcullrl oluclUon Is nlollarly
balOI uon gelorul lluratou , lut olr
ngrlculural rincatolli tnlttulolH l'l
' \'IAel ' Ipeclalzlng thcmlolvel. rnklll
their courlo relate to the Icllnl tcahhl
of the aRrlculuml Il ! Itnlrel Iclonccs
peollle t
to young country or yolng
] lCOllo , who wlll to Ivl II the cOlntry. {
.
" . lrcndy hon
"OI.tlllrO/rQsa hal ! ( muco
the
amonlf farn1rR by ' elton of
farmorl' Insttutes , or cnlr ' nRAocll-
, ot breoders' nssocinthll. -
tO/l 11rU-
culurul nRsoclnto11. nlHl the 1ee. A
exnmlllo how the ' -
Rtrldng n
/ont Inel the tlrmOr8 cnn coolrato II
) I
shown In connlctol with the 1t'lllce'/
otereel to the cotton /loWorl of til'
Routhern flnt ( by the allvnne10 of thl'
bol weevi , 'l'ho delnrtucnt II elollA
al It cnn to o1 n'1h0 the fnrl 'rs In
the throltolcel elltrlcls , jUlt IH t hnH
been colnA 11 It cnn o or"unlzo thlm
In aid of IR worlt to ernelcato the elt-
In the , 'J'ho -
to lent Ce\or can tclt wll conlJrutl louth wi c1lart- ! ni
lucl a810ciltonH , anc It 1 I lt hn\o
tholr hclp It Il own worlt II to bo
clone II the most olciont Rty10. "
lo ur/el the oxtelliol or the Irrhn-
lon anel Corest preservatol S'Rtcm , nli
alIes tOI' In IIIlropl'\tnn ror \ulhlhlg n
' then tor at Arlngton ,
MarrlaD nnd Dlvorco.
AR I melnR or ! rll/lll ! abolt IllOmt
of ali \ ' ho
relulnton mnnlnlo el\'orco
! UgKelts n cunRltutonl1 umfldment. aud
snYI It II nol sufC to lenvo these qlel-
to ho wllh ' the
tons 10al 1) vnrllul
saYR stntes. : Contuulng Oi this sUbject he
When llomo tcs are ) oosonNl ; when
mon Ind womln claso to rc ard 1
' . with Its '
worthy fUII lto. ni dutt'l
performed. and ( -
fulY 1 Is r(8)oull-
bi ties Ivec up to , I " ! the Ifo ) belt
worth : then ror the
Ivln ! evi tlYI
commo wealth uro at hlnl. There nl'o
rt'glonl In our Innd. Ind ellses or our
populaton , \\'hero the l'lrth ' rlto hl"
suule below the leath ruto. Buroh' It
should need no t show
that wiful Htorllty 10monstrnto1 the
standpoint of ( ho naton , fror mo
stantpolnt of the hunHn race. the one
sin for which the Ilonulty II natolnl
denth , ra o dcnth : 1 II n for which
th 1Hln which 18
ro II no Itonomont ; 1\
the moro croaelul eXlcty In propor-
as the men und
ton wOlon Kulty
thereof Ire In other rC81otS. In ohar-
aoter. Inll bocI ) ' ITI moutal poVlrR.
those whom Cor the 1leo oC the Itlto
It would \0 wel to { leo the Cnlhors
and mothers oC mlny healhy chllron.
wol ! roulht UI II hnnHs mule ImrJpy
by tholr prosence. No mln , no womnn ,
. hlrlt the of ,
can Ilrl/nry dutes lfo
for of . ,
whlther lo\o { ISO nIHI.plelllr {
or for nny other caulo. amI rotaln hil
or her 10If-relpert.
The 11relident asles for the enlct/ent
, Into Inw of a Rhlppln , hi that wi 1IIIco
Amorlcnn Intorlltl on thu IOIS on I pnr
with these of ether countrl ! . Ind Ir/IS
cspeclnly thnt sO/ethln ho done thnt
. '
wi establRh Itroc 8tenmshl ] comlu.
nlcaton wih SQulh Amerlcln ports.
Currency 'eform.
AmendmentR to the prOmnt currency
law8 are nskel\ for , nnll Ifer Ihnwln
tmt prcsent law nr Innl\ellnto hecallo
of the wldo luctul1ton ot Interest
chnrles , ho saYR :
"Tho moro slLtemont of these Cnct8
shows that our prflont 1 "ltom IR 81rl-
, '
oURly dCrectve 'rhcro II need of
change. , Unfortullttly , howovl'r.an (
ot the propoleel chnnlel IUlt bo ruled
from because they
consideraton 11
complcatell. Ire not eaHY oC compro-
heniiol , 1111 tend to dlfturh IxlHln"
rlrhtl anll Iltorests. ' ' 0 must ulso
rule out any plnn which wOlld IJI-
Impnlr the value ot the
terlaly Unlell
Stnte two pur cent. 1D111 now plod"lll
to lecuro circullinn. the IHIII of
whloh wnlado Ildor coneltonH pe-
' to the .
culnr ! oreeltahlo treallry. I
do 10t prelH nny IPeelnl plnn. VarlouH
plnns , hnve recent ! heen propnsol hy
expert pomml te1 of banlecrs. Amon"
the 1IIInl which nro possibly Censlble
and whlcl certlinly should rlcllve
IH that
your consideraton repeatedly
brouFht tn 'our Itenton h ) ' the pros-
ent secrotnry of the t'eallry. the .IH-
sental COltUI't'H of which have hoen
npproved hy many prominent banlelrl
[ \d IlslnelH mel Aceordll" to thll
.
plnn nntopnl banles Ihnld bo per.
to fssue 1 speciled
mlted proporton
ot their cnplnl In notel of \ "Iven
kind. the Ilsuo to he taxed at so hl"h
' \ rate as to drlvo the notel baclt wlln
not wnnt'et In lo ltmato trnde. 'hl
plan would not permit the Ilsuo oJ
currency to glvo bnnlU
addltohal
proftl. hut to meet the omerKonoy pre.
sented by tmes of stringency.
Need of Automatic System.
"I do not say that this Is the rlghl
sYltem. Innudvanco It to omplm.
size my hole that there Is need fOI
the IdoPton of Iome sYltem whlcl
shal be Iutomatc and open to al
slblty sound banltl of discriminaton , 10 as to Ivold and Cavorlt ' ,
11m. Buch a plln WO/lld / tend to IJrl'
the of Ilgh
vent sp lms money anl
Ipeculaton which now 'obtnln In
New York mlrket ; for nt prel tl '
there Is too much currunoy at certlh
lealons ot the year. nnd It I ICCUml'
at Now York tempts banker !
laton
to 1