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About The Falls City tribune. (Falls City, Neb.) 1904-191? | View Entire Issue (Dec. 6, 1907)
1 10 THls PALLS CITY TRIBUNE. FRIDAY. DECEMBER 6. 1907 CAUSES OF THE PRESENT FINAN CIAL CONDITIONS IS MADE THE CHIEF TOPIC. SUGGESTS REMEDIES FOR ILLS CONTROL OF CORPORATIONS AND RAILROADS TO PREVENT OVERCAPITALIZATION. llevei This Would Solve the Prob lem Together with Provision for More EUillo Currency Recom mends Postal Banki and A kn for Leglilatlon Along Many Llnei. Washington. Dec. S. President lloosovoll's ntimml metisage to congress 1 * a voluminous document of nearly 30.000 words , by far the longest mes sage ho haa ever Biilimlttfd to congress. The opening subject of tin- message Is the financial condition of thn country , and for which thn president luys much of the blnmo upon unscrupulous stock peculatom , ntid says "Iti any largo hotly of men , however , Ihero nro certain to ho some who nrn dishonest , nrul If thn condition * m'u BUCI tlmt these men prosper or com mit their misdeed * wllli Impunity , their example ti n very ovll thing for tliu community. Where these man nro busi ness men of ireat sagacity nnd of tem perament botli unHrrupuloim ami reck less , nnd where llu conditions r i such th'at they net without mipervlslon or control nnd at first without effective check from public opinion , they delude mnny Innocent people Into making In vestments or embarking In kinds of business that are really unsound. When the misdeeds of these Huccessful- ly illahont.it men urn discovered , mif- ferlnK comes not only upon them , but upon thn Innocent men whom they liavo misled. It IH n painful awakening , whenever It occurs ; and , niiturully , when It does occur those who suffer aru apt to forgot that the longer It WIIH deferred the more painful It would bo. In the effort to punish the guilty It IB both wlsu nnd' proper to endeavor BO fnr nm jmunUil" In minimize the dis tress of these who have been misled by the guilty. Yet It I * not possible to refrain because of wiich distress from striving to put an end to thn misdeeds that arc the ultimate causes of thn nuf- ferlng , and. ns a means to this nnd , where possible to punish those re- Bponslblo for them. There may bo hon- nt difference ! * of opinion ns to muny covcrnineiitnl policies ; but surely there can bo no such differences na to tlie need of unflinching perseverance tn the war against successful dishonesty. " Ho quotes at length from his mes sage of last year In which ha advo cated federal control of corporations doing Interstate business , and believes that In such control would be found the remedy for overcapitalization and stock speculation which he. believes have brought about the present llnun- clal conditions. Ho tmys : "Our steady aim Hhould bn by legls- latlon. cautiously and carefully under taken , but resolutely persevered In , to assert the sovereignty of the national government l > y alllrmutlvo action. "This IN only In form an Innovation , In sutiutance It Is merely a restoration ; for from the earliest limn such regula tion of Industrial activities linn been recognized In thn action of the lawmaking - making bodies ; and nil that 1 propose la to meet thn changed conditions In auch manner an will prevent the com monwealth abdicating the pownr It has nlwnys possessed , not only In this coun try , but also In England before and Blnco this country became n separate nation. Kcilrrnl Control of llullrouila In I'nvnrril. "No small part of the trouble that wo hnvo comes from carrying to an ex treme the national virtue of self-re liance , of Independence In Initiative and action. It Is wise to consnrvo this virtue nnd to provide for UB fullest ex ercise , compatible with seeing that lib erty doc not become a liberty to wrong others. Unfortunately , this Is the kind of liberty that thn lack of all effective refutation Inevitably breeds , The founders of the constitution pro vided that the national government tihould have complete and sole control of Interstate commerce. Them was then practically no Interstate business save such as was conducted by water , and this the national government at once proceeded to r gulateln thorough going and effective fashion , Condi tions have now so wholly changed tlmt the Interstate commerce by water Is In- slgnlllcunt compared with the amount that goes by land , and almost all big business concerns are now engaged In Interstate commerce. As a result. It can be but partially and Imperfectly controlled or regulated by the action of any one of the several states ; auch ac tion Inevitably tending to be either too drastic or else too lax , and In either case Ineffective for purposes of Justice. Only the national government can In thoroughgoing fashion exercise the needrd control. This does not mean that there should be any extension of federal authority , for such authority already exists under the constitution In amplust and most far-reaching form , but It docs mean that there Hhould be an extension of federal activity. Thl la not advocating centralization. It U merely looking facts In the. face , and realising that centralization In business has a'ready come and can not bo avoid ed rr undone , and that the public at large can only protect Itself from cer tain ovll effects of this business cen tralization by providing better methods for the exercise of control through the authority already centralized In the national government by the constitu tion Itself. There must bo no halt in the healthy constructive course of ac tion which this nation has elected to pursue , and has steadily pursued , dur ing the last six yearn , as shown both in the legislation of the congress and the administration of the law by the de partment of justice. The most vital need Is in connection with the railroads. As to these , in my judgment ther * should now bo either a national Incor poration net or n law licensing railway companies to In engage Interstate com merce upon certain conditions. The law should be so framed aa to give to the Interstate commerce commission power to pass upon the future issue of securi ties , while ample means should b pro vided to enable the commission , when ever in iti judgment it la neceuiary. to make a physical valuation of any rail road. As I stated in my message to the congress a ytar ago , railroads should be given power to enter Into agree- taints , subject to these agreements b - Ina ; made public In minute detail and to the consent of the Inter.italn commerce commission being first obtained. Until the national government assumes proper control of Interstate commerce , In the exercise of tin' authority It nl- rcndy possessi-H , It will bo Impossible either to glvo to or to get from the railroads full justice. The railroads nnd all other great corporations will In well to recognize that this control must come : the only question la as to what governmental body can most wisely exercise It. The courts will do- tnrmlini the limits within which the federal authority can exorcise It , and there will still ronmln ample work within each state for the railway com mission of that Htnte ; and the national Interstate commerce commission will work In harmony with the several ntat * commissions , each within Its own prov ince , to achieve the desired end. Control of llu lne ( ' rerni Dreed , "Moreover , In my judgment there should be additional legislation looking U Ihe proper control of the great business con cerns engaged In Interstate business , this Control to be exercised for their own benefit and prosperity no less than for the protection et Investors and of the genera ! public. Aa I have repeatedly uld In messages to coniress and elsewhere - whore , experience has definitely shown not merely the unwisdom but the futility of endeavoring to put a stop to all bustn ness combinations. Modern Industrial conditions are such that combination la not only necessary but Inevitable. It Is BO In the world of business just aa It la so In the world of labor , and It Is as Idle to ileslro to put an nnd to all corporau ( Ions , to nil big combinations of capital , as to doslro to put an und to coinblna- lions of labor. Corporation and labor union alike hnvo coma to stay. Kach It piopcrly managed Is n source of good and not uvll , Whunovur In either there Is evil , It should bo promptly held to acIt count , but It Hhould n-celvo hourly enn couniKemcnl HO long as It Is properly munaxt'd. It Is profoundly Immoral to put or kenp on the statute books 11 law , nominally In the lntcie.it of public moinl- Ity , that really putu n premium upon' ' public Immorality , by undertaking to forbid honest mmi from doing what must be diinu under modern htDilnoxs condi tions , so that thn law Itself provides that Its own Infraction must In ; the condition precedent upon InmlnrBS success , To aim ut the accomplishment of too much usu ally means the accomplishment of too lit tle , and often the doing of positive dam age. age."Tho "Tho antitrust laxv Hhould not bu re pealed , but It Hhould ho made both more elllclent and morn In harmony with act ual conditions. It should bo HO amended as to forbid only the kind of combination which doeu harm to the general public , such amendment to bo accompanied by , or to bn an Incident of , u grant of su pervisory power to the government over IIPHO big corpuratloim engaged In Inter- Into liUHlnoHH , This should bo nccoin- anlcd by provision for the compulsory ubllcatlon of accounts and ti HUbjoc- lon of books nnd papers to the Inapec- lon of the government olllclals. A bo- { Innliig has already boon made for auch uporvlslon by the establishment of the itiroau of corporations , "The antitrust law should not prohibit oinblnatlons that do no Injustlco to the niullr , ntlll less tho.iA the existence ol which Is on thn wholn of benefit to the iiibllc. Hut oven If this feature of the aw were uboIlHhed , tlioro would remain H an eaually objectionable ! feature the llftlctilty and delay now Incident to Ita nforci'inont. The government must now ubmlt to Irksome and repeated delays nefore obtaining u final decision of the ourts upon proceedings Instituted , and ven a favorable decree may mcnn an mpty victory. Moreover , to attempt to control these corporations by lawsuits means to Impo.so upon both the depart ment of justlrn and the courts an Im possible burden ; It Is not feaslblo to carry ii more than n limited number of auch ulls. Much n law to bo really effective must of course be administered by an xecutlvo body , and not merely by means f lawsuits. The dotilgn should bo to prevent the abtiHes Incident to the crea- Ion of unhealthy nnd Improper comblim- lens , limtcad of waiting until they nro n existence nnd then attempting to dn- itroy them by civil or criminal proceed- UBS. nteating I'utillc Should le Amply Safeguarded , "Tho congress has thn power to charter 'orporatlons to cngago In Interstate nnd 'otelgn ' commerce , and a general law can 10 onai'tml under the provisions of which ixlstlng corporations could take out fed- ral charters and now federal corpora- Ions could bo created. An essential pro- . 'Islon of such u law should bo n method uf predetermining by some federal board or commission whether the applicant for a federal charter was nn association or combination within thn restrictions of the Vderul law. Provision should also bo for complete publicity In alt matters itffectlng the public nnd complete protoc- Ion to the Investing public nnd the share holders In the matter of Issuing corporate securities. If an Incorporation law is not lecmed advisable , a license act for big nterstatc corporations might bo enacted , or a combination of the two might be rled. The supervision established might bo annluKoUH to that now exercised over national bunks. At least , thn antitrust net should bo supplemented by spectfla prohibitions of the methods which ex perience has shown have boon of most service In enabling monopolistic combina tions to crush out competition. The 'rear owners of a curpurulloit nhould be com- pnlled to do ImMnrns In their own name. The right to hold stock In other corpora tions should heareafter bu dented to Inter state corporations , unless on approval by the proper government onicUls , and a prerequisite to auch approval should be the listing with the government of all owners and stockholders , both by th corporation owning such atock and by the corporations In which such stock Is owned. "To confer upon the national govern ment , In connection with the amendment I advocate In the antitrust law , power of supervision over big business concerns engaged In Interstate commerce , would benefit them as It has benefited the na tional banks. In the recent business crisis It Is noteworthy that the Institu tions which failed were Institutions which were not under the supervision nnd control of the national government. Those which were under national con trol stood tlis test. "National control of the kind above nd- vocated would be to the benefit of every well-managed railway From the stand point of the public there la need for ad ditional tracks , adttlonal terminals , and Improvements In the actual handling of the railroads , and all this as rapidly aa possible. Ample , safe , and speedy trans portation facilities are even more neces sary than cheap transportation , There fore , there U need for the Investment of money which will provide for nil these things while at the same time securing as fas as la possible better wages and shorter hours for their employes. Therefore - fore , whllo there must bo just and rea sonable regulation of rates , we should be the first to protest uealnst nny arbitrary and unthinking movement to cut them down without the fullest and moat care ful consideration of all interests con cerned and of the actual needs of the situation. Only a special body of men acting for the national government un der authority conferred upon It by the congnfia ia competent to pass Judgment on such a matter. Greater UUatleltr In Currency U Urged. The prejldent quotes extensively from tU hut wejjaj. in dealing ; with the di- reel subjf 11 of curtency lofilalnllon , nnd says : "I ngaln urgn on the congress the need of Immediate attention to this matter. Wo need n greater elasticity In our l'"r- rency , provided , of course , thai we' recog nize the oven greater need of a safe and ecure currency. There must always b thn most rigid examination by the ni- tlonal authorities. Provision should be made for an emergency currency. The emergency Issue 'should , of course , 'ba made with an effoatlvo guaranty , nnd up on conditions carefully prescribed by the government. Such emergency Issu6 must be bnned on adequate securities approved by the government , and must bo Issued under a heavy tax. This would permit currency being Issued when the demand for It wns urgent , wlillo securing Its re tirement ns the demand fell off. It Is worth Investigating to determine whether officers and directors of national banks should ever be allowed to loan to them- selves. Trust companies should be sub ject to the sums supervision aa banks ; legislation to thla effect should be enacted - acted for the District of Columbia and the territories. "Tel we muat also remember that even the wisest legislation on Ilia subject cin only accomplish a certain amount. No legislation can by any possibility guar antee the business community against the results of speculative folly any more than It can guarantee an Individual against the results of his extravagance. When an In dividual mortgages his house to buy an automobile he Invites disaster ; and when wealthy men , or men who pose aa such , or are unscrupulously or foolishly eager to become such , Indulge In reckless spec ulation especially If It Is accompanied by dishonesty they Jeopardize not only their own futurn but the future of all their In nocent fellow-rltlzens , for they expose tha ! whole business community to panic nnd distress. " Ho advises against nny general tariff legislation this session of congress , and says : "In n country of such phenomenal growth ns ours It Is probably well that every dozen years or so the tariff laws should bo carefully scrutinized sd ns to HCO that no oxcosslvn or Improper bene fits nro conferred thereby , thnt proper revenue Is provided , nnd that our foreign trnda Is encouraged. There must nlwnys bo an a minimum a tnrlff which will not only al low for the collection of nn nmplo rev- nnun but which will nt least make good the difference In cost of production here nnd nbrond ; that Is , the difference In the labor cost hero and abroad , for the well-being of the wage-worker must over bo a cardinal point of American policy. Thn question should bo approached pure ly from n business standpoint ; both the tlmo nnd the manner of the change being nuch ns to arouse the minimum of agi tation and disturbance In the business world , and to glvo the len.st piny for Hellish nnd factional motives. The sole consideration should bo to sea that the sum total of changes represent the pub lic good. This means that the subject cannot with wisdom bo dealt with In the year preceding n presidential election , be cause ns n matter of fact experience bus conclusively nhown tlmt nt such a time It Is Impossible to get men to treat It from the standpoint of the public good. In my judgment the wise tlmo to dual with the matter la Immediately after such elec tion. " Ho asks for the repeal of the tariff on paper and wood pulp. He reviews and enlarges upon his pre vious recommendations for the enactment - mont of federal Inheritance and Income tax laws. Attention Is railed to thn prosecution of wealthy offenders against the national laws , and In this connection he asks thnt the laws under which these prosecutions nro brought be strengthened and made moro definite. The I/He nnd the Abusp of Injunctions. "Instances of abuse In the granting of Injunctions I In labor disputes continue to occur , nnd the resentment In the minds of those who feel thnt their rights nro being Invaded and their liberty of action and of speech unwarrantably restrained continues to grow. Much of the attack on the use of the process of Injunction Is wholly without warrant ; but I am con strained to express the belief that for Homo of It there Is warrant. This ques tion IB becoming moro and moro of prime Importance , nnd unless the courts will themselves ' deal with It In effective man ner. It Is certain ultimately to demand some . form of legislative action. It would bo J most unfortunate for our aoclal wel fare If we nhould permit many honest and law-nbldlng citizens to feel that they had Just cause for regarding our courts with hostility. I earnestly com mend to the attention of the congress this ' matter , so thnt some wny may bo devised which will limit the abuse of In junctions nnd protect these rights which from tlmo to tlmo It unwarrantably In vadcs. Moreover , discontent Is often ex pressed with the use of the process of Injunction by the courts , not only In la bor disputes , but where state laws are concerned. I refrain from discussion of this question as I am Informed that It will soon receive the consideration of the supreme court. " Of other legislation In the Interest of labor he favors federal Inspection of rail roads ; providing limited but definite com pcnsntlon for accidents to all workmen employed In any wny by the government , and says : "The constitutionality of the employers' liability act passed by the preceding con- srcss has been carried before the courts. In two' jurisdictions the law has been de clared unconstitutional , and in three Juris dictions Its constitutionality has been af firmed. The question has been carried to tne supreme court , the case has been heard by that tribunal , and a decision Is expected at an early date. In the event that the court should affirm the consti tutionality of the act , I urge further leg. ( station along the lines advocated In my message to the preceding congress. The practice of putting the entlro burden 01 loss of life or limb upon the victim or the victim's family la a form of social In justice In which the United States stands In unenviable prominence. In both our federal and our state legislation we have with few exceptions , scarcely gone farther than the repeal of the fellow- servant principle of the old law of { jabll- ity , and In some of our states even this slight modification of a complete , out grown principle has not yet been se cured. " He favors the extension of the eight hour law to all departments of the gov eminent , and to nil work carried on by the government. He urges legislation for the compulsory Investigation of in dustrlal disputes , and says : "Tho need for some provision for such Investigation was forcibly illustrated during the past summer. A strike o telegraph operators seriously Interfered with telegraphic communication , caus Ing great damage to business interests and serious inconvenience to the gen eral public. Appeals were made to nib from many parts of the country , from city councils , from boards of trade , from chambers of commerce , and from labor organizations , urging that steps be taken to terminate the strike. Everything that could with any pro- prlety be done by a representative of the government was done without avail , and for weeks the public stood by and suffered without recourse of any kind , Had the machinery existed and had there been authority for compulsory Investigation of the dispute , the public would have been placed in possession of the merits of the controversy , und public opinion would probably ha\ brought about prompt aujustment. "It U idle to hold that without gooa > Inw.s evil * such ns child labor , nn the ovor-worKlng of ' Wolnen. its thc'fnlN uro to protect employes from los.s of llfn or limb , cnn bo effectively reached , iny moro Until the e.vll of ralmtn , * nnd Mock-watering cnn bo rcnchrd without good laws' . To fall to stop those prac tices by legislation incnna to force hnnest men Into them , because other- wine the dlBlioncst who surely will tnko advantage of them will have everything their own way. If the stntes will correct these evils , well and good ; hut the nation must stand ready to nld them , Inland Wntervrny .S ) lemn .Should lie DeeTloped. "The conservation of our national re- Hourccs nnd their proper UHB constitute the fundamental problem which under lies almost every other problem of our national life. We muat 'maintain for , our civilization the aOquate material > asls without which that civilization cannot oxlat. We muat show foresight , wa must look ahead. Aa a natlcn we not only enjoy a wonderful measure ef > re ent prosperity but If thla prosper- ty Is used aright It ia an earnest of uture Bucceaa such aa ne other nation will have. The reward of foresight fet his nation la great and easily foretold. lut there muat be the lo k ahead , here must be a realization of the fact .hat to waste , to destroy , our nntural resources , to akin and exhaust the land nitead of using It no as to Increase Its jsefulneos , will result In undermining n the days of our children the very prosperity which we ought by right to land down to them amplified nnd devel oped. Vor the last few yours , through several agencies , the government has > een endeavoring to get our people to ook ahead and to substitute n planned tnd orderly development of our re sources In place of n haphazard strlv- ng for Immediate profit. Our great river systems should bo developed ns uitlonal water highways ; the Missis sippi , with Ita tributaries , standing first n Importance , nnd the Columbia nec- end , nlthough there are many others of mportanco on the Pacific nnd Atlantic ilid the gulf slopes. The national KOV- eminent should undertake this work , uid I hopu n beginning will bo made n the present congress ; nnd the great est of all our rivers , the Mississippi , should receive especial attention. From .ho Great I aken to the mouth of the Mississippi there should be a deep wa- terwny , with deep waterways loading from It to the cant nnd the west. Such i waterway would practically moan the extension of our coast line Into the very heart of our country. It would be 'it Incalculable benefit to our people. If liegun at once It can bo carried through n time appreciably to rellnvo the con gestion of our grent frelght-cnrrylng lines of railroads. The work should be systematically and continuously carried fprwnrd In accordance with uomo well- conceived plan. The main streams should bo Improved to the highest point of oftlclency before the Improve- incut of the branches Is attempted ; nnd the work should be kept free from every taint of recklessness or Jobbery. " Attention IB called to the work of ir rigation und reclamation of govern ment lands. In thn. same connection he asks for n revision of the public land laws along the lines proposed by the public lands commission. Uelleves the government should Increase Its efforts to conserve our forests nnd should In crease by purchase the existing forest preserves. On the subject of the natural resources of the nation he says : "In the eastern United States the mineral fuels hnvo already passed Into the hands of large private owners , and these of the west nro rapidly following. It Is obvious that these fuels should be conserved nnd not wasted , and It would bo well to protect the people against unjust nnd extortionate prices , so far as that can still bo done. What has been accomplished In the great oil fields of the Indian Territory by the action of the administration offers a Htrlklng example of the good results of such n policy. In my Judgment the government should have the right to keep the fee of the coal , oil nnd gas fields In Its own possession nnd to lease the rights to develop them under proper regulations ; or else. If the con gress will not adopt this method , the coal deposits Hhould bo sold under lim itations , to conserve thorn as public utilities , the right to mine coal being sop.\ratod from the title to the soil. The regulations should permit coal j lands to bo worked In sufllclcnt quan tity by the several corporations. The present limitations have been absurd , excessive , and servo no useful purpose , nnd often render It necessary that there should bo cither fraud or else abandonment of the work of getting out the coal. " of the Work On the Paumiin Cnnnl. "Work on the Panama canal Is pro ceeding In a highly satisfactory man ner. In March the total excavation In the Culobra Cut , where effort was chiefly concentrated , was 815,270 cubic yards. In April this was Increased to 879,527 cubic yards. There wns n con- sldcrnblo decrease In the output for Mny nnd June owing partly to the nd- vent of the rainy season nnd partly to temporary trouble with the steam stiovel men over the question of wages. This \roublo was settled satisfactorily to all parties and In July the total ex cavation advanced materially and In August the grand total from all paints In the canal prism by steam shovels and dredges exceeded all previous United Statea records , reaching 1,274- 404 cubic yards. In September this rec- ord was eclipsed and a total of 1,517.- 412 cublo yards was removed. Of this amount 1,481,307 cubic yards were from the canal prism und 36,105 cubic yards were from accessory works. These re sults were achieved in the rainy season - son with a rainfall in. August of 11.89 Inches and in September of 11.65 inches. Finally , in October , the record was again eclipsed , the total excavation be ing 1,853,729 cubic yards ; a truly ex traordinary record , especially in view of the heavy rainfall , which was 17.1 Inches , In fact , experience during the last two rainy seasons demonstrates that the rains are a less sorlous ob stacle to progress than has hitherto been supposed. "Work on the locks and dams at Gatun , which began actively In March last , has advanced so far that It is thought that masonry work on the locks can ba begun within 15 months. "Last winter bids were requested and received for doing the work of canal construction by contract. None of them was found to bo satisfactory and all were rejected. It Is the unanimous opinion of the present commission that the work can be done better , more cheaply , nnd more quickly by the gov ernment than by private contractors. Kully SO per cent , of the entire plant needed for construction has been pur chased or contracted for ; machine shops have been erected and equipped for making all needed repairs to the plant ; many thousands of employes have been secured , an effective organi zation has been perfected ; a recruiting system la In operation which Is capable of furnishing more labor than can be -advantageously ; employes are well sheltered and well fed ; silarles paid are satisfactory , and the work Is not only going forward smoothly , but it Is producing result * far In idv nc > if th nid'J1.111511 nj snt ! - ' > tions th i ivo ibl > < > nnil ti < vM a ! in ; i'i th < m1 > ! of ir i * ut n : P i M. b > s n ' i > J aljt. . . t - * - * * u d . /j u. o * a . .4- lao existing conditions , check progress , nnd Increase the dost nnd lengthen the tlmo of completing the canal. I'resldent HrroininriiiN I'orftnl * \IIK * Ilimldi. "I commend to the favorable consid eration of the congress n postal snv- IngB bank system , as recommended by the postmaster general. Tha primary object Is to encourage ftrndng our poo- pie economy and thrift nnd by tlio use of postal Having * banks to glvo thorn an opportunity to husband their re sources , particularly those who have not the facilities at hand for depositing their money In savings banks. Viewed , howcvar , from the experience * of the past few weeks , U Is evident that the J advantages ( of such nn institution are still more far-reaching. Timid depos itors have withdrawn their savings for the time being from national banks ; in dividuals have hoarded their each and the ' worklncmen their earnings ; all of which money has been withdrawn and ke t in hiding or In the safe de posit | box t the detriment of pros perity. ' Through thn agency of the pa- tal savings banka such money would be f ! tension of the parcel post , especially on the rural routes. There are noYf 38- ' 21G rural routes , serving nearly 15,000- 000 people who do not have the advantages - vantages of the Inhabitants of cities in obtaining their supplies. These rocom- mendntlons have been drawn up to benefit the farmer and the country storekeeper ; otherwise , I should not favor them , for I believe that It Is good policy for our government to do everything - thing possible to nld the small town und the country district. It Is desirable that the country merchant should not bo crushed out. "Tho fourth-class postmasters' con vention lias passed u very strong reso lution In favor of placing the fourth- class postmasters under the clvll-scrv- Ice ' law. Tha administration has al ready , ' put Into effect the policy of re fusing j to remove any fourth-class post masters save for reasons connected with the good of the service ; nnd It is endeavoring so far ns possible to re- move them from the domain of partisan politics. J ! It would be a most deslrablo thing to put the fourth-class postmas ters in the classified service. " Ho renews his recommendations of lust year In regard to Alaska ; calls at tention to the admission of Oklahoma as a Htnto ; urges the Importance of pro viding shipping relief for Hawaii ; asks for citizenship for Porto Rlcann , nnd promises submission of Secretary Tuft's report on Philippines when that official returns. Ho nsks for the crentlon of a bureau of mines ; recommends the providing of funds for preserving The Hermitage , the home of. Andrew Jackson ; and the erection of a naval monument nt Vlcksburff. Corporation Contribution * ( u Coinpiilun KxpcnMes. "Under our form of government voting Is not merely a right but a duty , and , moreover , a fundamental and necessary duly If a man IB to bo a good citizen. It Is well to provide that corporations shall not contribute to presidential or national campaigns , and furthermore to provide for the publication of both con- tilbutions and expenditures. There Is , however , nlwnys danger In laws of this kind , \\hlch from their very nature are difficult of enforcement ; the dnnger being lest they be obeyed only by the honest , und disobeyed by the unscrupulous as to net only as a penalty upon honest men. Moreover , no such law would bum per an unscrupulous man of unlimited means from buying his own way Into of fice. There la a very radical measure which would , I believe , work a. substan tial Improvement In our system of con ducting a campaign , although I am well .uvaro that It will take Home tlmo for people to so familiarize themselves with nuch a proposal ns to be willing to con sider Its adoption. Thn need for collect- Ing largo campaign funds would vanish It congress provided nn appi opilatlon for the proper and le ; tlmato expenses of each of the great n i emil parties , nn ap propriation nmplo.i , i gh to meet the necessity for thorough organization and machinery , which requires n large ex penditure of money. Then the stipula tion should b made that no party re- colvlng campaign funds from'the treasury should accept moro than n fixed amount from nny Individual subscriber or donor ; und the necessary publicity for receipts and expenditures lould without dltllculty ba provided. " \VnnlN Iiiiprntomen ! In Deenn Mnll Service. "I call your especial attention to the un satisfactory condition of our foreign mall service , which , because of the lack of American steamship linen. Is now largely done through foreign lines , and which , particularly so far ns South and Central America uro concerned , Is done In a manner nor which constitutes a scilous barrier to the extensions of our commerce. "Tho tlmo has come. In my judgment , to sot to work seriously to make our ocean mall service correspond more closely with our recent commercial and political development. A beginning wns made by the ocean mall act of March 5 , IS01 , hut even at that time the act was known to be Inadequate In various par ticulars. Since that time events have moved rapidly In our history. "We have acquired Hawaii , thn Philippines , anil lesser Islands in tha Pacific. We are steadily prosecuting the great work t uniting ut the Isthmus the waters of the Atlantic and the Pacific. To a greater extent than seemed probably even a dozen years ago we may look to an American future on the sea worthy ol the tradition of our past. As the firs I step In that direction , and the step mosl feasible at the present time , I recommend the extension of the ocean mall act ol 1S91. That act has stood for some years free from successful criticism jof Us prin ciple and purpose. It was based on theo , rles of the obligations of a great mari time nation , undisputed In our own land and followed by other nations since the beginning of steam navigation. Briefly those theories are , that It Is the duty of a first-class power so far as practicable to carry Its ocean malls under Its owr f'.ng , that the fast ocean steamships and their crows , required for such mall serv tee , are valuable auxiliaries to the sea power of a nation. Furthermore , the construction of such steamships Insures the maintenance In on efficient condition of the shipyards In which our battleships must be built. "Thn expenditure of public money for the performance of such necessary func tlons of government Is certainly war ranted , nor Is It necessary to dwell upon the Incidental benefits to our foreign commerce , to the shipbuilding industry and to ship owning and navigation which will accompany the discharge of these urgent public duties , though they , too , should have weight. " Al n Incrrnne In Pay for Army OHleer nnd Men , The president devotes much space to the affairs of the army , and strongly urces that our regular military organi zation be kept up to the highest possible standard of efficiency , and says : "Tho medical corps should be much greater than the needs of our regular army In war. Yet at present It Is small , er than the needs of the service demand uven In peace. The Spanish war oc > curr d less than ten years ago. The chief | O H o suffered In It was by dl - . a * * -non : t''e re ? rr Ti which nevr ' ' " ' ' 1 > mu'ntni thu n- . n iufj L ! " > ply Impressed by UiU , fncl ! yol scomlngly It lia alrcnily be-T forgolt ii ; for 'not the slightest effort has been made to prepare' n medical corps of sufficient slzo to prevent the repetition of the same disaster on n much larger scale If .we sh&uld ever be engaged in n serious conflict. "Hut the medical department is not thn . pnly department for which Increased provision - - vision should bo mado. The rnto of | my for the officers should bis grenty | in creased ; there Is no higher typo of citizen- than the American regulnr ofllcer , and ha should hnvo a fair reward for his ad- mlrnblo work. There should bo a rela tively even greater Incrcnso in the pay for the enlisted men. An especlnl provision should be made for establishing grades Equivalent to those of warrant ofllcors In the navy , which should be open to tha enlisted men who serve sufficiently long and who do their work wollMnducemenU should bo offered sufllclcnt to encourage really good men to make the army a Ufa occupation. The prime needs of our pres ent army la to secure and retain compe tent noncommissioned officers. Thla diffi culty rests fundamentally on the ques tion of pay. The noncommissioned officer doea not correspond with an unskilled la- berer ; he corresponds to the beat type of skilled workman or to the subordinate official In civil Institutions. Wages have greatly Increased In outatde occupational In the last 40 years and the pay of tha soldier ' , like the pay of the officers , ahould be proportionately Increased. The Drat aergeant of a company , If a good m n , muat be one of such executive and ad ministrative ability , and such knowledge of his trade , as to bo worth far moro than we at present pay him. The same is true of the regimental sergeant major. Thesa men should be men who had fully re solved . , to make the army a life occupa tion nnd they should bo able to look for ward to ample reward ; whllo only men properly qualified should be given a chance to secure these final rewards. The Increase over the present pay need not be great In the lower grades for the first t-.J ! one or two enlistments , but the increase should bo marked for the noncommis sioned olllcers of the upper grades who serve long enough to make it evident that they Intend to stay permanently in the army , whllo additional pay should bo given for high qualifications in target practice. ' "Among the ofllcers there should ba covoro examinations to weed out the unfit up to the grade of major. From that position on appointments should bo solely by selection nnd It should bo understood that n mnn of merely av erage capacity could never got beyond the position of mnjor , whllo every man who serves In nny grade n certain length of tlmo prior to promotion to the next Rrndo without getting the promotion to the next grade should ba forthwith retired. " President Sees Need of I.nr eljr Inorenweil Xnvy. The president nsks for a continuous Increase in the navy , nnd nsks present congress for approprlntlons for four new battleships , nnd snya * . "Wo need always to remember that In tlmo of war the navy Is not to bo used to defend harbors and sea-coast cities ; wo should perfect our system of coast fortifications. Thn only efficient use for the navy Is for offense. The onlyway In which It can efficiently pro tect our own coast against the possible action of n foreign navy is by destroy ing that foreign navy. For defense ngutnst a hostile fleet which actually attacks them , the coast cities must de pend upon their forts , mines , torpedoes , submarines nnd torpedo boats and de stroyers. All of these together are of- flclent for defensive purposes , but they In no way supply the place of a thor oughly efficient navy capable of acting ; on the offensive ; for parrying never yet won a fight. It can only be won by hard hltlng , and an aggressive. Ben-go ing navy alone can do this hard hitting : of the offensive type. But the forts and the llko are necessary BO that the navy may bo footloose. In time of war there Is sure to be demand , under pres sure of fright , for the ships to bo scat tered so as to defend nil kind of ports. Under penalty of terrible disaster , this dcmnnd must bo refused. The ships must bo kept together , nnd their ob jective made the enemies' fleet. If fortifications are sufficiently strong , no modern navy will venture to attack : them , so long as the fee hns In exist ence a hostile navy of anything llko the same slzo or efficiency. But unless there exists such a navy then the forti fications are powerless by thomsclvea to' secure , the victory. For of course the mere deficiency means that nny resolute enemy cnn at his leisure com bine nil his forces upon ono point with . the certainty that ho can take It. Gl > e IlenKoiiH fur DeKpntch Of Fleet to the Pacific. "Until our bnttlo licet Is much larger than nt present It should never be split Into detachments so far apart that they could not In event of emergency bo spocdlly united. Our coast line Is on the Pacific Just nH much ns on the At lantic. The Interests of California. Oregon nnd Washington are as em phatically the Interests of the whole union as these of Maine nnd Now York , of Louisiana nnd Texas , The battle fleet should now and then bo moved to the Pacific , just as at other times it should be kept in the Atlantic. When the isthmian' canal Is built the transit of the battle fleet from one ocean to the other will bo comparatively easy. Until it Is built I earnestly hope that the battle fleet will be thus shifted be tween the two oceans every year or two. The marksmanship on alt our ships has Improved phenomenally dur ing the last five years. Until within the last two or three years it was not possible to train a battle fleet In squad ron maneuvers under service conditions , and It Is only during these last two or three years that the training under these conditions has become really ef fective. Another and most necessary stride in advance la now being taken. Uhe battle fleet Is about starting by the Straits of Magellan to visit tha Pacific coast. Sixteen battleships are going under the command of Hear Ad miral Evans , while eight armored cruisers and two other battleships will meet htm at San Francisco , whither certain torpedo destroyers are also go- Ing. No fleet of such size has ever made such a voyage , nnd It will be of very great educational use to all en gaged In it. The only way by which to tench ofllcers and men how to handle the fleet so as to meet every possible strain and " emergency in time of war is to have "them practice under similar conditions in time of peace. Moreover , the only way to flnd out our actual needs Is to perform in time of peace whatever maneuvers might be neces sary in time of war. After war Is de clared it Is too late to find out the needs ; that means to Invite disaster. The trip to the Pacific will show what some of our needs are and will enable us to provide for them. The proper place for nn ofllcer to learn his duty Is at sea , and the only way in which a navy can ever bo made efllclent Is by practice at sea , under all the condi tions which would have to be met If waV existed , " He reviews the work accomplished by the second pence conference at Tha Hague ; notes the improvement of af fairs in Cuba , and the preparations be ing made to reestablish the govern ment of the Island republic ; asks per mission to cancel the remainder of China's Indemnity obligation to us , and revlewa the effect of Secretary Root'a vlsll to Mexico. THEODORE ROOSEVELT. The White House , December I , 1)07.
