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.