TJU5 OUSTER 66UJNTY BE BUBUOAU
V
\
President Creaks Uncord For
Length o ! Document ,
DEFENDS PAYilE TARIFF ACT ,
Denis With Panama Canal , Postal Sav
ings Bank , Parcels Post and Conservation
vation Asks For Rniso of Judicial
Salaries Recommendation For Fit
ting Honor For Peary.
Washington , Doc. C. The president
soul the following message to congress
today :
To the Senate and House of Kopre-
sentntlves ; '
During the past year the foreign re-
lalioiw of the United States have con
tinued upon a basis of friendship aud
good understanding.
The year lias been notable as wit
nessing the pacific settlement : of two
Important International controversies
before the permanent court of The
Hague.
The arbitration of the llshcrlos dis
pute between the United States and
Great Britain , which has been the
source of nearly continuous diplomatic
correspondence since the fisheries con
vention of ISIS , lias given an award
which Is satisfactory to both parties. '
Peace Commission ,
Appreciating these enlightened tend
encies of modern times , the congress
at its last session passed a law provid
ing for the appointment of a commis
sion of live members "to bo appointed
by1 the pnsldent of the United States
to consider the expediency of utilising
existing International agencies for the
purpose of limiting the armaments of
the nations of the world by Internation
al agreement and of constituting the
combined mnies of the world an Inter
national foi-o for the preservation of
universal pence and to consider and
report upon any other means to dimin
ish the expenditures of government for
military purposes and to lessen the
probabilities of war , "
The work of the International fish
eries commission appointed in 1S10S ,
under the treaty of April 11 , 100S , be
tween Great liritnln and the United
States , has resulted In the formula
tion and recommendation of uniform
regulations governing the fisheries of
the boundary waters of Canada and
the United States for the purpose of
protecting and Increasing the supply
of food Dsh In such waters.
The Far East.
The center of interest In far eastern
affairs during the past year has again
been China.
It is gratifying to note that the ne
gotiations for a loan to the Chinese
government for the construction of the
trunk railway lines from Hankow
southward to Canton and westward
through the Yangtso valley , known as
the Ilukuang loan , were concluded by
the representatives of the various
financial groups in May last and the
results approved by their respective
governments.
Tariff Negotiations.
The new tariff law in section 2 respecting -
specting the maximum and minimum
tariffs of the United State.s , which pro
visions came Into effect on April 1 ,
1010 , Imposed upon the president the
t responsibility of determining prior to
that date whether or not any undue
discrimination existed against the
i United States and its products in any
V ' country of the/world with which wo
f ' sustained commercial relations.
'
? The policy of broader and closer
/ " trade relations with the Dominion of
{ ' Canada which was Initiated In the ad
justment of the maximum and minimum -
" . mum provisions of the tariff act of
. - August. 1000 , lias proved mutually ben-
iv . ellcial. It justifies further efforts for
V , the readjustment of the commercial
' i relations of the two countries so that
_ their commerce may follow the channels -
' nels natural to contiguous countries
and be commensurate with the steady
expansion of trade and Industry on
both sides of the boundary line.
The Department of State ,
All tariff negotiations , so vital to our
commerce and industry , and the duty
of jealously guarding the equitable anil
just treatment of our products , capital
and industry abroad devolve upon the
department of state.
The efforts of that department to secure -
cure for citizens of the United States
equal opportunities in the markets of
the world and to expand American
commerce have been most successful.
The volume of business obtained In
now Holds of competition and upon
now lines Is already very great , and
congress is urged to continue to sup
port tlio department of state In Its en
deavors for further trade expansion.
An instrumentality Indispensable to
the unhampered and natural develop
ment of American commerce Is mer
chant marine. All maritime and com
mercial nations recognise the impor
tance of this factor. The greatest com
mercial nations , our competitors , jeal
ously foster their merchant marine.
I alluded to this most important sub
ject In my last annual message. It has
often been before yon , and I need not
recapitulate the reasons for Its recom
mendation. Unless prompt action betaken
taken the completion of the Panama
canal will find this the only great com
mercial nation unable to avail In Inter
national maritime business cf this great
contribution to the means of the world's
commercial intercourse.
l''or maliy f colons 1 cnnnotTbosTrong-
I/ urge upon the congress the passage
of a measure by mall subsidy or other
subvention adequate to guarantee the
establishment and rapid development
of an American merchant marine , the
restoration of the American Hag to Us
ancient place upon the seas.
Estimates For Next Year's Expenses.
The final estimate- * for the year endIng -
Ing June . .0 , If-1 ) ! , as they have been
sent to the treasury on Nov. 20 of tills
year for the ordinary expenses of the
government , Including those -for pub
lic buildings , rivers and harbors and
the navy building program , amount to
SWO.-ini.OKU'J. Thtii Is $ r > 2lOI.8S7.UJ ) :
less than the appropriations for the
fiscal year ending June ItO , 1011. It is
$10Ssir ; ? > ; 5.-M less than the total esti
mates. Including suplementnl esti
mates submitted to congress by the
treasury for the year 11)11 ) , and is $5.-
57'lr ( ! > 0.jO : le.ss than the orlgliial esti
mates submitted by the treasury for ,
1011. I
These ilgnros do not include the ap
propriations for the Panama canal , the
policy In respect to which ought to bo
-Mid is to spend as much each year as ,
can be economically and effectively ex-j
pended lu order to complete the canal I
'
as promptly as possible , and therefore -
fore Hie ordinary motive for cutting
down the expense of the government
does not apply to appropriations for
tills purpose. It will be noted that the
estimates for the Panama canal for
the ensuing year are more than $5(1-1 (
000.000. an increase of $20,000,000
over thi amount appropriated for this
year , a difference duo to the fact Unit
the estimates for 1)12 ! ) include some
thing over $10,000,000 for the fortifica
tion of the canal.
Against the estimates of expendi
tures. SlMO.-ll ) 1,01:5.12 : , wo have esti
mated receipts for next year $ OSO-
UOlU.0. ( making a probable surplus of
ordinary receipts over ordinary ex
penditures of about $50.000,000 , or ,
taking Into account the estimates for
the- Panama canal , which are $30,020-
S-17.C ! ) and which will ultimately bo
paid in bonds , it will leave a deficit
for tlie next year of about 7.000.000
if congress shall conclude to fortify the
canal. The cost of the fortifications
Is about $ U.lKu ) , < ) dO. Should there be
no appropriations this year for fortifi
cations then there would bo. even In
cluding tlie Panama canal appropria
tion , a surplus of about $12,000,000.
It Is not essential to the preventing
of smuggling that customs districts
should be increased In number. The
violation of the customs laws can be
quite as easily prevented and much
more economically by the revenue cut
ter service and by tlie use of the spe
cial agent traveling force of the treas
ury department. _
Very great Improvements have been
made In-respect to the mints and as
say offices. ' ' Diminished appropriations
have been asked for those whose con
tinuance Is unnecessary , and this
year's estimate of expenses Is $320,000
less than two years ago.
In the "bureau of engraving and
printing great economies have been
effected. Useless divisions have been
abolished , with tlie result of saving
$ -4-10.000 tills year in the total ex
penses of the bureau despite Increased
business.
|
Revenues.
(
As the treasury department Is the
one through which the income of the
,
government Is collected and Its expend
itures are disbursed this seems a
proper place to consider tlie operation
of the existing tariff bill , which be
came a law Aug. 0 , 1000. As an in
come producing measure the existing
In riff bill has never been exceeded by
any customs bill in the history of the
country.
The corporation excise lax , proportioned
tioned to the net income of in cry busi
ness corporation in the country , has
worked well. The lax has been easily
collected. Its prompt payment indi
cates that tlio incidence of the lax has
not been heavy. It offers , moreover ,
an opportunity for knowledge by the
government of the general condition
and business of all corporations , and
that means by far ( lie most important
part of tlio l.uslncss of the country. In
the original act provision was made
for the publication of returns. This
provision was subsequently amended
by congress and the matter left to the
regulation of the president. 1 have di
rected tlie Issue of the needed regula
tions and have made it possible for the
public generally to know from an ex
amination of the record the returns of
all corporations the stock of which is
listed on any public stock exchange oi
ls offered for sale to the general pub
lic by advertisement or otherwise. The
returns of those corporations whoso
stock Is not so listed or offered for
sale are directed to bo open to the in
spection and examination of creditors
and stockholders of the corporation
whoso record Is sought. The returns
of nil corporations are subject to the
inspection of any government officer or
to the examination of any court , In
which tlie return made by the corpora
tion Is relevant and competent evi
dence.
The Payne Tariff Act.
Tlie schedules of the rates of duty
in the Payne tariff act have been sub
jected to n great deal of criticism ,
some of It just , more of It unfounded ,
anil to much misrepresentation. The
act was adopted in pursuance of a
declaration by the party which Is re
sponsible for It that a customs bill
should bo a tariff for the protection
of home industries , tlie measure of the
protection to bo the difference between
the cost of producing the Imported ar
ticle abroad and the co-4 of producing
it at home , together with such addi
tion to that difference as might gl\i >
n reasonably profit to the homo pro
dneor.
The ba-l-i for the criticism of this
tariff Is that In respect to n number
of the schedules tlie declared measure
WIM not followed , but n higher differ
ence retained or Inserted by way of
undue dlvrlmlinitlon In favor of cer
tain Industries and manufactures.
Little. If any. of the criticism of the
tariff has been directed against the
protective principle above stated , but
the main body of the criticism has been
bused on the charge that tin * attempt
to conform to the measure of protec
tion was not honestly and sincerely nrt-
hered to.
Tariff Board.
The time In which the tariff was pre
pared undoubtedly was so short as to
make it Impossible for the congress
and Its experts to acquire the Informa
tion necessary strictly to conform to
the declared measure. In order to avoid
criticism of this kind in the future and
for the purpose of more nearly conform
ing to the party promise congress at Its
last session made provision at my re
quest for tlie continuance of a board cre
ated under the authority of the maxi
mum and minimum clause of the tariff
bill and authorized this board to expend
the money appropriated under my di
rection for the ascertainment of the
cost of production at homo and abroad
of the various articles Included In the
fichedules of the tariff. The tariff
board thus appointed and authorized
has been diligent In preparing Itself for
the necessary Investigations. Tlie hope
of those who have advocated the use
of this board for tariff purposes Is that
the question of the rate of a duty Im
posed shall become more of n business
question and less of n political ques
tion , to be ascertained by experts of
long training and accurate knowledge.
Thv halt In business and the shock to
business due to the announcement that
a new tariff bill Is to be prepared and
put In operation will bo avoided by
treating the schedules one by one as
occasion shall arise for a change In the
rates of each and only after n report
upon the schedule by the tariff board
competent to make such report.
It Is not HUclv that the board will be
able to make a report during the pres
ort sf-islon of congress on any of the
schedules , because a proper examina
tion involves an enormous amount of
detail and a great deal of care , but I
hope to be able at the opening of the
new congress , or nt least during the
session of that congress , to bring to
Its attention the facts In regard to
those schedules In the present tariff
that may prove to need amendment. .
Tlie carrying out of this plau , of
course , involves the full co-opcrntlon
of congress in limiting the considera
tion in tariff matters to one schedule
at a time , because If a proposed amend
ment to a tariff bill Is to Involve a
complete consideration of all the
schedules and another revision then
we shall only repeat the evil from
which the business of this country has
In times past suffered most grievously
liy stagnation and uncertainty , prnrt-
, Ing a resettlement of n law affecting
all business directly or Indirectly , and
I the effect of which no wise business
man would ignore In new projects and
new Investments.
I
I The inquiries which the members of
the tariff board made during the last
summer into tlio methods pursued by
other governments with reference to
the fixing of tariffs and the detcrmlua-
tion of their effect upon trade show
that each government maintains an of-
lice or bureau , the ofllccrs and em
ployees of which have made their life
work the study of tariff matters , of
foreign and homo prices and cost of
articles imported and the effect of the
tariff upon trade , so that whenever a
change is thought to be necessary in
the tariff law this oflice Is the source
of the most reliable information as to
the propriety of the change and its ef
fect.
I am strongly convinced that we
need In this government just such an
ollloe and that it can bo secured by
making tlio tariff board already ap
pointed n permanent tariff commission ,
with such duties , powers and emolu
ments as It may seem wise to congress
to give. It has been proposed to enlarge -
largo tlio board from three to live. The
present number Is convenient , but 1
do not know that an increase of two
members would be objectionable.
I recommend that congress establish
a commission to determine ns early as
practicable a comprehensive policy for
the organization , mobilization and ad
ministration of the regular army , the
organized militia and the volunteer
forces In the event of war.
Need For Additional Officers.
One of the great difficulties In tlie
prompt organization and mobilization
of militia and volunteer forces Is the
absence of competent officers of the
rank of captain to teach the new army ,
by tlie unit of the company , the busi
ness of being soldiers and of taking
care of themselves so as to render ef
fective service. This need of army
officers can only be supplied by pro
visions of law authorizing the appoint-
/cut of a greater number of army of
ficers than are needed to supply the
commands of regular army troops now
enlisted In the service.
In order that tlie militia of each
state should bo properly drilled and
made more like the regular army , reg
ular army officers should be detailed
to assist the adjutant general of each
state In the supervision of the state
militia , lint this is Impossible unless
provision Is made by congress for a
very considerable Increase in tlie num
ber of company and field officers of
the army.
Fortifications.
I have directed that the estimates
for appropriation for the Improvement
of coast defenses in the United States
should bo reduced to n minimum ,
while those for tlie completion of the
needed fortifications at Corregldor , In
the Philippine Islands , and at Pearl
Harbor , In the Hawaiian Islands ,
should 1)6"expedited as mticli as possl- ] '
ble.
Philippine Islands.
During the last summer at my re
quest the secretary of war visited tln >
Philippine Islands and has described
Ills trip In his report. He found tlie
Islands In a state of tranquillity and
growing prosperity , due largely to the
change In the tariff laws which lias
opened the markets of America to the
products of the Philippines and Ics
opened the Philippine markets To
American manufactures.
Pannmn Canal.
At the Instance of Colonel Gopthals.
the army engineer officer In charge of
the work on the Panama canal , I have
just made a visit to the Isthmus to In
spect the work done and to consult
with him on tlio ground as to certain
problems which are likely to arise In
the near future. The progress of the
work is most satisfactory. If no un
expected obstacle presents Itself the
canal will lie completed well within the
time fixed by Colonel Cioethnls to wit ,
Ian. 1 , lllir > and within the estimate
of cost. sa'.OOO.OOO.
Among questions arising for present
solution Is the decision whether the
canal shall be fortified. 1 have already
stated to tlie congress that 1 siru.rjlv
favor fortification , and I now reiterate
this opinion and ask your consideration
of the subject In the light of the report
already before you made by a compe
tent board.
If In our discretion we believe mod
ern fortifications to be necessary to the
adequate protection and policing of the
canal , then It Is our duty to construct
them. We have built the canal. It is
our property. By convention we have
Indicated our desire for and Indeed un
dertaken Its universal and equal use.
It Is also well known that one of the
chief objects In the construction of the
canal has been to Increase the military
effectiveness of our navy.
Failure to fortify the canal would
leave the attainment of both these
alms In tlie position of rights and ob
ligations which wo should bo powerless
to enforce and which could never In
any other way bo absolutely safeguard
ed against a desperate and Irrosponsl-
> le enemy.
In determining what the tolls In the
canal should be wo certainly ought note
[ o Insist that for a good many years
.0 come they should amount to enough
to pay the Interest on the Investment
of100.000.000 which the United
States bus made. In the construction
of tlie canal. We ought not to do this ,
first , because the benefits to b'o derived
by the United States from this ex
penditure are not to bo measured solely
by a return upon the investment.
My own Impression Is that the tolls
ought not to exceed $1 per net ton. On
Jan. 1 , 1011 , the tolls In the Suez canal
are to be 7 francs and 2S centimes for
one net ton by Suez canal measure
ment , which Is a modification of
Danube measurement. A dollar a ton
will secure under the figures above a
gross annual Income from the Panama
canal of nearly $7,000,000. The cost
of maintenance and operation Is esti
mated to exceed $ n,000,000.
Tlie next question that arises is as
to the maintenance , management and.
general control of tlie canal after Its
complctlc.i. : It should be premised
that It Is nn essential part of our navy
establishment to have the coal , oil and
other ship supplies , a drydock and
opair shops c ( nvcnicntly located with
reference to naval vessels passing
through the canal. Now , If the govern
ment for naval purposes is to under
take to furnish these conveniences to
thi' navy , and they are conveniences
equally required by commercial ves
sels , there would scorn to be strong
reasons \ -hy the government should
take over and include in its manage
ment tlie furnishing not only to the
navy , lu.t to the public , drydock and
repair shop facilities and the sale of
coal , oil and other ship supplies.
The maintenance of a lock canal of
this enormous size In a sparsely popu
lated country and In the tropics , where
the danger from disease is always
press nt. requires n largo and complete
and well trained organization with
full police powers , exercising the ut
most care.
1 cannot close Mils reference to the
canal without suggesting as a wise
amendment to the Interstate commerce
law a provision prohibiting Interstate
commerce railroads from owning or
controlling s'.ilps engaged in the trade
through the Panama canal. 1 believe
such a provision may bo needed to
save to the people of the United States
the bcnclKn of the competition In trade
between the eastern ana western sea
boards which this canal was construct
ed to secure.
Department of Justice.
I am glad to nay that under the ap
propriations made for the department
of Justice the attorney general has so
Improved Its organization that a vast
amount of litigation of a civil and
criminal character has been disposed
of during the current year. This will
explain I he necessity for slightly In
creasing the estimates for the ex
penses of the department. His report
shows the recoveries made on behalf
of the government , of duties fraudu
lently withheld , public lands Improp
erly patented , lines and penalties for
trespass , prosecutions and convictions
under the anti-trust law aud prosecu
tions under Interstate commerce law.
I Invite especial attention to the
prosecutions under the federal law of
the so called "bucket shops" and of
those schemes to defraud in which the
use of the mail Is an essential part
of the fraudulent conspiracy , prosecu
tions which have saved ignorant and
weak members of the public and are
Raving them millions of dollars.
Tlie violations of the anti-trust law
present perhaps the most Important
litigation before the department , and
the number of cases filed shows the
nctlvltj of the government In enforc
Ing that statute.
Judicial Procedure. j
One great crying need in the United ,
Btates Is cheapening the cost of litiga
tion by simplifying judicial procedure
and expediting final judgment. Under
present conditions the poor man Is at
a woeful disadvantage In a legal con
test with a corporation or n rich op
ponent. Tlie necessity for the reform
exists both In United States courts
and In all state courts. In order to
bring It nbout , however , it naturally
falls to the general government by Us
example to furnish a model to all
states. A legislative commission ap
pointed by joint resolution of congress
to revise the procedure In the United
'States courts has as yet made no re
port.
I am strongly convinced that the
best method of improving judicial pro
cedure at law Is to empower the mi-
promo court to do It through tlio me
dium of the rules of the , court , as In
equity. Tills Is the way In which It
has been done in Kngland.
Relief of Supreme Court From Un
necessary Appeals ,
No man ought to have as a matter of
right a review of his case by the supreme
premo court. lie should bo satisfied
by one hearing before a court of first
instance and one review by a court of
appeals. The proper and chief useful
ness of the supreme court , and espe
cially the supreme court of the United
Stales , Is In the cases which come be
fore It so to expound the law and espe
cially the fundamental law the con-
htltutlon-as to furnish precedents for
tlie Inferior courts In future litigation
and for tlie executive officers In the
construction of statutes and the per
formance of tlicit" legal duties. There
fore any provisions for review of cases
by the supreme court that cast upon
that court the duty of passing on ques
tions of evidence and the construction
of particular forms of instruments , Ilka
Indictments or wills or contracts , de
cisions not of general application or
importance , merely clog and burden
the court and render more difficult Its
higher function , which makes it so Im
portant a part of tlio framework of
our government. The supreme court Is
now carrying an unnecessary burden
of appeals of this kind , and I earnestly
urge that It lie removed.
Judicial Salaries.
I further recommend to congress the
passage of the bill now pending for
the Increase In the salaries of the fed
eral Judges , by which the chief justice
of the supreme court shall receive $17-
500 and the associate justices $17,000 ,
the circuit judges constituting the cir
cuit court of appeals shall receive $10-
000 and the district Judges $0,000. The
positions they occupy ought to be filled
by men who have shown the greatest
ability in their professional work nt
the bar , and It Is the poorest economy
possible for the government to pay
salaries so low for Judicial service as
not to be able to command the best
talent of the legal profession in every
part of tlie country.
Wiping Out of Postal Deficit.
For many years there has been a
deficit In the operations of the post-
office department which lias been met
by appropriation from the treasury.
The appropriation estimated for last
year from the treasury over and above
the receipts of tlie department was
$17,500,000. I am glad to record the
fact that of that $17r > 00,000 estimated
for $11,500,000 were saved and return
ed to tlie treasury. It Is gratifying
to report that the reduction in tlio
deficit has been accomplished without
any curtailment of postal facilities.
Upon the recommendation of the
postmaster general I have Included In
the classified service ; all assistant post
masters , and I believe that tills giving
a secure tenure to those who are the
most important subordinates of post
masters will add much to the efficiency
of their offices and an economical ad
ministration.
The Franking Privilege.
The unrestricted manner in which
the franking privilege Is now being
used by the several federal services
and by congress has laid it open to se
rious abuses.
Parcels Post.
With respect to the parcels post , I
respectfully recommend Its adoption
on all rural delivery routes and that
eleven pounds , the International limit ,
be made tlie limit of carriage In such
post The postolllce department has a
great plant and a great organization ,
reaching Into the most remote hamlet
of the United State.s. and with tills
machinery it Is able to do a great
many things economically that If a
new organization were necessary It
would be Impossible to do without ex
travagant expenditure. That Is the
reason why the postal savings bank
can be carried on at a small additional
cost and why it Is possible to Incor
porate at n very Inconsiderable ex
pense n parcels post In the rural de
livery system.
Peary.
I unite with the secretary In the rec
ommendation that an appropriation
be made to construct a suitable crypt
at Annapolis for the custody of the
remains of John Paul Jones.
The unparalleled achievement ol
Peary In reaching tlie north pole , April
0 , 1000. approved by critical examina
tion of the most expert scientists , has
added to the distinction of our navy ,
to which lie belongs , and reflects credit
upon his country. Ills unique success
lias received generous acknowledgment
from scientific bodies and Institutions
of learning In IJuropo and America. I
recommend fitting recognition by con
gress of the great achievement of Hob-
crt Kdwln Peary.
For Eight Hour Day.
It seems to me from the past history
that the government has been com
mitted to a policy of encouraging the
limitation of the day's work to clglic
hours in nil works of construction lull
atcd by Itself , and It seems to me li-
loglcnl to maintain a difference bctweciu
government work done on government :
soli and government work done in m
private establishment.
Workmen's Compensation.
In view of the keen , widespread IIH
tcrest now felt In the United States Ini
a system of compensation for Industrial - '
trial accidents to supplant our present :
thoroughly unsatisfactory system of
employers' liability ( n subject the Im
portance of which congress has al
ready recognized by the appointment
of a commission ) , I recommend that-
the International congress on Indus
trial Insurance be Invited to hold Its
meeting In 10it : In Washington and
that an appropriation of $10,000 ln
made to cover the necessary cxponso'i
of organizing and carrying on tin *
meeting.
Safety Appliances nnd Provisions.
Tlie protection of railroad employees
from personal injury is n subject of
the highest Importance nnd demands
continuing attention.
Negro Exposition.
I also renew my recommendation
that stwps be taken looking to the holdIng -
Ing of i negro exposition lu celebra
tion of the fiftieth anniversary of the
Issuing by Mr. Lincoln of the emanci
pation proclamation.
Conservation.
Nothing can be more Important In
the matter of conservation than the
treatment of our forest lands. Speak
ing generally , the government has re
served of tlie existing forests about 70
per cent of all the ttmberlands of the
government. Within these forests ( In
cluding 20.000,000 acres In two forests
in Alaska ) are 102,000,000 acres , oC
which 100,000,000 acres are in tlio
United States proper and Include with
in their boundaries something like 22.-
000,000 acres that belong to the states
or to private Individuals. Wo have ,
then , excluding Alaska forests , a total
of about M'1,000,000 acres of forests
belonging to the government which
are being treated In accord with tlio
principles of scientific forestry.
The law now prohibits the reserva
tion of any moro forest lands In Oregon
gen , Washington , Idaho , Montana.
Colorado and Wyoming except by
act of congress. I am informed by
the department of agriculture that the
government owns other tracts of tlm-
berlaud in these states which should
bo Included In the forest reserves. 1
recommend to congress that the limi
tation heroin Imposed be repealed. In
the present forest reserves there nro
lands which are not properly forest
land and which ought to bo subject to > ,
homestead entry. i
Coal Lands. I
Tlie next subject , nnd one most 1m- '
portant for your consideration , la the
disposition of the coal lands in the.
United State.s and In Alaska. At the
beginning of this administration there
were classified coal lands In the United
'
ed States amounting to r > . ' 170,000 acres ,
and there were withdrawn from entry
for purposes of classification 17,807,000
acres. Since that time there have been
withdrawn by my order from entry
for classification 78,077,7-15 acres , mak
ing a total withdrawal of OG,8-M,7-I5
acres. Meantime of the acres thus
withdrawn 10,001,880 have been clnssl-
led and found not to contain coal and
lave been restored to agricultural on-
: ry and -1,720,001 acres have been clas
sified nn coal lands'while 70,003,2:50 :
acres remain withdrawn from entry
nnd await classification. In addition
n17.)00 { ( ) acres have been classified as
coal lands without prior withdrawal ,
thus Increasing the classified coal lands
to 10I20:572 : acres.
Tlie question as to how great an
area ought to be Included In a lease to
one individual or corporation is not
free from difficulty , but in view of tlio
fact that the government retains con
trol as owner I think there might be
some liberality In the amount leased
and that 2.500 acres would not be too
great a maximum. The leases should
only lie granted after advertisement
and public competition.
The secretary of the Interior thinks
there are difficulties In the way of
leasing public coal lands. I entirely
approved his stating at length In his
report the objections in order that the
whole subject may bo presented to
congress , but after n full consideration
I favor a leasing system and recom
mend it.
The needed oil and gas law Is essen
tially a leasing law. In their natural
occurrence oil and gas cannot lie
measured In terms of acres , like coal ,
and It follows that exclusive title to
these products can normally be se
cured only after they reach the sur
face. Oil should be disposed of as a
commodity In terms of barrels of
transportable product rather than In
acres of real estate.
Water Powerf Rates.
The water power sites subject Is one
that calls for now legislation. It has
been thought that there was danger
of combination to obtain possession of
all the power sites and to unite them
under one control. Whatever the evi
dence of this or lack of it , at present
we have lind enough experience to
know that combination would be prof
itable , and tlio control of a great num
ber of power sites would enable the
holders or owners trf raise the price
of power at will within certain sec
tions , and the temptation would
promptly attract Investors , nnd the
danger of monopoly and extortion
would not bo n remote one.
However this may be. It Is the plain
duty of the government to see to It
that In the utilization and develop
ment of all this Immense amount of
water power conditions shall bo Im
posed that will prevent extortionate
charges , which are tlie usual accompa
niment of monopoly.
