A.-
J
I
the Senate and House of Repre
sentatives :
JTIie people o this country continut
* to .enjoy great prosperity. Undoubtedly
there will be ebb and flow in such pros
, perity , and this ebb and flow will be fel
iznore or less byall members of the com
tinunity. A general failure of crop :
xroulel hurt all of us. Again , if the foil :
of man mars the general well-being , thei
thoso who are innocent of the folly vril
iiiavo to pay part of the penalty incurree
& > y those who are guilty of the folly.
tpanic brought on by the speculative foil :
-of part of the business community woule
Aurt the whole business community. Bui
rcuch stoppage of welfare , though ii
.might be severe , woulel not be lasting
"In the long run the one vital factor ii
'the permanent prosperity of the country
: ls the high individual character of tin
.average American worker , no mattci
whether his work be mental or manual
whether he be farmer or wage-worker
'business ' man or nrofessional man.
In our industrial and social system tin
Interests of all men arc so closely inter
twined that in the immense majority o :
1 .easels a straight-dealing man who by his
efficiency , by his ingenuity anel industry
'benefits himself must also benefit others
j Normally the man of great productivi
' .capacity who becomes rich by guidinj
-the labor of many other men does so bj
-enabling them to produce more than the :
. .could produce without his guidance ; am
both he and they share in the benefit
which comes also to the public at large
'The superficial fact that the sharing maj
' be unequal must never blind us to tin
i rnnderlying fact that there is this shar
I1 -ing , and that the benefit comes in SOUK
.degree to each man concerned. Nor
mally the wage-worker , the man of smal
vzneaus , and the average consumer , a ;
well as the average producer , are al
Alike helped by making conditions sucl
that the man of exceptional business
ability receives an exceptional reware
-for his ability. Something can be don <
'by legislation to help the general pros
perity ; but no such help of a perma
' -ciently beneficial character can be givei
1 -to the less able and less fortunate , sav <
.as the results of a policy which shal
inure to the advantage of nil industrious
and efficient people who act decently
If. therefore , the less fortunate man i ;
moved by envy of his more fortunate
brother to 'strike at the conditions undei
which they have both , though unequally
prospered , the result will assuredly b <
-that while damage may come to the one
-struck at , it will visit with an even hcav
ier load the one who strikes the blow
Taken as a whole , we must all go up 01
,4:0 11 own together.
Curb for Corporations.
It is true that where there is no gov
. .ernmental restraint or supervision som <
-of the exceptional men use their energies
not in ways that are for the commoi
. .good , but in ways which tell against this
-common good. The fortunes amassee
through corporate organization are nov
-so large , and vest such power in those
-that wield them , as to make it a inattei
of necessity to give to the sovereign
that is , to the government , which rcpre
sents the people as a whole some cilec
tive power of supervision over their cor
porate use. In orelcr to insure a healthj
social and industrial life , every big cor
poration should be held responsible by
.nnd be accountable to. some sovereigi
strong enough to control its conduct.
I am in no sense hostile to corpora
* tions. This is an age of combination
and any effort to prevent all combiuatioi
will be not only useless , but in the one
vicious , because of the contempt for I.TVI
which the failure to enforce law iuevit
ably produces. We should , moreover
recognize in cordial and ample fashior
-the immense good effected by corporate
agencies in a country such as ours , am
the wealth of intellect , energy , and fidel
ity devoted to their sen-ice , and there
fore normally to the service of the pub
lie , by their oflicers and directors. The
-corporation has come to stay , just as the
ratle union has come to stay. Bach car
do and has done great good. Each should
be favored so long as it docs good. Bui
-each should be sharply checked where ii
.acts against law anel justice. So long
as the finances of the nation are kepi
upon an honest basis no other question
of internal economy with which the Con
gress has the power to deal begins tc
approach in importance the matter oj
-endeavoring to secure proper imlu lrjn'
conelitions under which the individuals
.nnd especially the great corporations-
doing aa interstate business are to act.
'The makers of our national constitution
provided especially that the regulation
of interstate commerce should come
within the sphere of the general govern
ment. The arguments in favor of their
taking this stand were even then over
whelming. But they are far stronger
to-day , in view of the enormous develop-
'inent'of great business agencies , usually
corporate in form. Experience has
-shown conclusively that it i-j useless to
try to got any a iequate regulation and
supervision of these great corporations
by State action. Such regulation and
supervision can only be effectively exer
cised by a sovereign whose jurisdiction
is co-extensive with the field of work of
-the corporations that is. by tho national
government. I believe that this regula
tion and supervision can be obtained by
'the enactment of law by the Congress.
If this proves impossible , it will certainly
"be ; necessary ultimately to confer in full
est form such power upon the national
government by a proper amendment of
-the constitution.
The Department of Justice has for the
Instfour years devoted more attention lo
-the enforcement of the anti-trust legisla
tion than to anything else. Much has
' been accomplished : particularly marked
* bas been the moral effect of the prose
cutions ; but it is increasingly evident
"that there willbe a very insufficient
beneficial result in the way of economic
change. The successful prosecution of
one device to evade the law immediately
develops another elevice to accomplish
the same purpose. What is needed is not
' .sweeping prohibition of every arrnnge-
ment , good or bad , which may tend to
restrict competition , but such adequate
supervision and regulation as will pre
vent any restriction of competition from
being to the detriment of the public
, - s well as such supervision and regula-
tion as will prevent other abuses in no
wav connected wfth restriction of com
petition. Of these abuses , perhaps , the
. chief , although by no means the only one.
is overcapitalization generally itself the
result of dishonest proinotionbecause
of ihe myriafl evils it brings in its train ;
for suejh overcapitalization often means
. .an inflation that invites business panic ;
" -alV/ajo conceals the true relation of
thCijinfont earned to the capital actually
/Invested , ad it creates a burden of in-
.payments which is a fertile cause
*
B ti _ flsSJl ' figS
of improper reduction in or limitation ol
wages ; it damages the small investor
discourages thrift , and encourages gam
bliug and speculation ; while perhaps
worst of all is the trickiness and dishon
esty which it implies for harm to mor
als is worse than any possible harm te
material interests , and the debaucherj
of politics and business by great dishon
est corporations is far worse than anj
actual material evil they do the public
Until the national government obtains
in some manner which the wisdom of the
Congress may suggest , proper contro
over the big corporations engaged in in
1 terstate commerce that is , over the
great majority of the big corporations-
it will be impossible to deal adcquatelj
with these evils.
Railroad Rate Regulation.
The first thing to do is to deal witl
the great corporations engaged hi the
business of interstate transportation. The
immediate and most pressing need , se
far as legislation is concerned , is the en
actmcnt into law of some scheme tc
secure to the agents of the government
such supervision and regulation of the
rates charged by the railroads of the
country engaged in interstate traffic as
shall summarily and effectively prevent
the imposition of unjust or unreasonable
rates. It must include putting a com
plete stop to rebates in every shape am"
form. This power to regulate rates , like
all similar powers over the business
world , should be exercised with modera
tion , caution and self-restraint ; but il
should exist , so that it can be effectively
exercised when , the need arises. The
first consideration to be kept in mind ii
that the power should be affirmative aneJ
should be given to some administrative
body created by the Congress. If giver
lo the present interstate commerce com'
mission or to a reorganized interstate
commerce commission , such commissipr
should be made unequivocally adminis
trative. I 'do not believe in the govern
ment interfering with private business
more than is necessary. I do not believe
in the government undertaking any wort
which can with propriety be left in pri
vate hands. But neither do I believe ir
the government flinching from overseeing
any work when it becomes eviilent thai
abuses are sure to obtain therein unless
there is governmental supervision. II
is not my province to indicate the exact
terms of the law which should be en
acted ; but 1 call the attention of the
Congress to certain existing conditions
with which it is desirable to deal. Ii ;
my judgineut the most important pro
vision which such law should contain is
that conferring upon some competent ad
ministrative body the power to decide
upon the case being brought before it
whether a given rate prescribed by a
railroad is reasonable and just , and il
it is found to be unreasonable and un
just , then , after full investigation oi
the complaint , to prescribe the limit oi
rate beyond which it shall not be lawful
to go the maximum reasonable rate , as
it is commonly called this decision to gc
into effect within a reasonable time anel
to obtain from theuce onward , subjecl
to review by the courts. A heavy pen
alty should be exacted from any corpora
tion which fails to respect an order oi
the commission.
Illegal transactions often occur undei
the forms of law. It has often occurre'el
that a shipper has been told by a traffic
officer to buy a. large quantity of sonic
commodity and then after it has been
bought an opqn reduction is made in the
rate to take effect immediately , the ar
rangement resulting to the profit of the
on j shipper and the one railroad and tc
the damage of all their competitors ; foi
it must not be forgotten that the big
shippers are at least as much to blame
as any railroad in the matter of rebates ,
The law should make it clear so that no
body can fail to understand that any
kind of commission paid on freight ship
ments , whether in this form or in .the
form of fictitious damages , or of a con
cession. a free pass , reduced passenger
rate , or payment of broker-age , is illegal.
It is worth while considering whetiier
it would not be AVISO to confer on the
government the right of civil action
against the beneficiary of a rebate for
at least twice the value of the rebate ;
this would help stop what is really black
mail. Elevator allowances should be
stopped , for they have now grown to
such an extent that they are demoraliz
ing and are used as rebates.
The best possible regulation of rates
would , of course , be that regulation se
cured by an honest agreement among
the railroads themselves to carry out the
law. Such a general agreement would.
for instance , .at once put a stop to the
efforts of any one big shipper or oig rail
road to discriminate against or secure
advantages over some rival ; and such
agreement would make the railroads
themselves agents for enforcing the law.
There should be publicity of the ac
counts of common carriers ; no common
carrier engaged in interstate business
should keep any books or memoranda
other than those reported pursuant to
law or regulation , and these books or
memoranda should be open to the inspec
tion of the government. Only in this
way can violations or evasions of the
law bo surely detected. A system of ex
amination of railroad accounts should
be provided similar to that now conduct
ed into the national bands by the bank
examiners ; a few first-class railroad ac
countants , if the } * had proper direction
and proper authority to inspect books
and papers , could accomplish much in
preventing willful violations of the law.
I urge upon the Congress the need of
providing for expeditious action by the
interstate commerce commission in all
these matters.
and Capital.
The national government has ns a rule
but little occasion to eleal with the formld-
nble group of problems connected more or
less 'directly with what is known as the
labor question , for in the great majority of
cases those problems must be dealt with
by the state anil municipal authorities anel
not by the national government. The na
tional government has control of the Dis
trict oC Columbia , however , nnd it should
see to it that the city of Washington is
uiarte a model city in all respects.
There has been demand for depriving
courts of the power to IBSUC injunctions in
labor disputes. Such special limitation of
the equity powers of our courts would be
most unwise. It is true that some judges
liave mi&usod this power ; but this does not
justify a denial of tiic power any more than
an improper oxerelso of the power to call
a strike by .1 labor leader would justify
the deninl of the right to strike. The rem
edy is to regulate the procedure by requir
ing the judge to give due notice to the ad-
k'crse parties before granting the writ , the
licurlug to be ex parte if the adverse party
Iocs not appear at the time and place or-
iered.
The question of securing a healthy , self-
respecting and mutually sympathetic atti
tude as between employer and employe.
capitalist and wage worker , U a difficult
\
oar. But the underlying principles , tht
root principles , in accordance with wh'icl
the problem must be solved are entirely
simple. Wo can get justice and righ'
dealing only if we put as of paramoum
importance the principle of treating a mai
on his worth as n man rather than witl
reference to his social position , his occu
pation , or the class to which he belongs
There are selfish and brutal men in al
ranks of life. If they are capitalists theli
selfishness anel brutality may take the
form of hard Indifference to suffering
greedy disregard of every moral rcstrulni
which interferes with the accumulation oi
wealth , and cold-blooded exploitation oi
the weak : or , if they are laborers , the forrr
of laziness , of sullen envy of the more
fortunate , and of willingness to perforrr
deeds of murderous violence. Such con
duct is just as reprehensible In one case
as in the other , and all honest and fur
seeing men should join in warring againsl
it wherever it becomes manifest. Individ
ual capitalist and individual wage worker ,
corporation anel union , are alike entitled
to the protection of the law , and musl
alike obey the law. Moreover , in additiot
to mere obedience to the law , each man ,
if he be really a good citizen , must show
broad sympathy for his neighbor and gcnu
Ine desire to look at any question arising
between them from the standpoint of thai
neighbor no less than from his own ; anei
to this end it is essential that capitalist
anel wage worker should consult freely one
with the other , should each strive to brin ?
closer the day when both shall realize thai
they are properly partners and not ene
mies.
This government is not and never shall
be government by a plutocracy. This gov
ernment is not and never shall be govern
ment by a mob. It shall continue to be In
the future what it has been in the past , n
government based on the theory that oacli
man , rich or poor , is to be treated simpl.v
and solely on his worth as a man , that all
his personal and property rights are to be
safeguarded , and that he is neither tc
wrong others nor to suffer wrong from oth
ers.
IVeeil of Insurance Reform.
The great insurance companies afford
striking examples of corporations whose
business has extended so far beyond the
jurisdiction of the States which created
them as to preclude strict enforcement ol
supervision and regulation by the parent
States. In my last annual jncssage I rccom-
niendcel "that the Congress carefully con
sider whether the power of the bureau ol
corporations can not constitutionally be ex
tended lo cover interstate transactions in
insurance. " Iteccnt events have emphasized
the importance of an early and exhaustive
consideration of this question , to see wheth
er it is not possible to furnish better safe
guards than the several States have been
able to furnish against corruption of the
llagrant kind which has been exposed. It
has been only too clearly shown that cer
tain of the men at the head of these large
corporations take but small note of the
ethical distinction between honesty and dis
honesty ; they draw the line only this side
of what may be called law-honesty , the
kind of hcnesty necessary in order to avoid
falling into the clutches of the law. 01
course the only complete remedy for this
condition must be found in an aroused pub
lic conscience , a higher sense of ethical con
duct in the community at large , and espe
cially among business men and in the great
profession of the law , and in the growth ol
a spirit which condemns all dishonesty ,
whether in rich man or in poor man , wheth
er it takes the shape of bribery or of black
mail. But much can be done by legislation
which is not only dr.istic but practical.
There is need of a far stricter and more
uniform regulation of the vast insurance
interests of this country. The United
States should in this respect follow the
policy of other nations by providing ade
quate national supervision of commercial
interests which are clearly national in char
acter.
Rcvenncs ami Expenditures.
There is more need of stability than of
the attempt to attain an ideal perfection in
the methods of raising revenue ; and the
shock and strain to the business world cer
tain to attend any serious change in these
methods render such change * inadvisable un
ions for grave reason. There must be
something like a general agreement among
the citizens of the several States , as rep
resented in the Congress , that the change
is needed and desired in the interest of the
people as a whole : and there shoulel then
be a sincere , intelligent and disinterested
effort to make it in such shape as will com
bine , so far as possible , the maximum of
good to the people at large with the mini
mum of necessary disregard for the special
interests of localities or classes. Unless
our expenditures can be kept within the
revenues then our revenue laws must be re
adjusted.
It should be considered whether it is not
desirable that the tariff laws should pro
vide for applying as against or in favor of
any other nation maximum and minimum
tariff rates established by the Congress , so
as to secure p certain reciprocity of treat
ment between other nations and ourselves.
Onr Currency Sy.stem.
Every consideration of prudence de
mands the addition of the element of elas
ticity to our currency system. The evil
does not consist in an inadequate volume
of money , but in the ridigity of this vol
ume , which does not respond.- it should
to the varying needs of communities and
of seasons. Inflation must be avoided ; but
some provision should be made that will
insure a larger volume of money during
the fall and winter months than in the
less active seasons of the year ; so that the
currency will contract against speculation ,
and will expand for the needs of legiti
mate business.
Purity of Federal Elections.
The power of the government to protect
the integrity of the elections of Its own
oOicials is inherent and has been recognized
nud affirmed by repeated declarations of
the Supreme Court. There Is no enemy of
free government more dangerous and none
so insidious as the corruption of theelec
torate. I recommend the enactment of a
law directeel against bribery anel corrup
tion in federal elections. Such a law
should include severe penalties against
liim who gives or receives a bribe Intended
to influence his act or opinion as an elect
or ; and provisions for the publication not
3iily of the expenditures for nominations
und elections of all candidates , but also of
ill contributions received and expenditures
made by political committees.
All contributions by corporations to any
political couiinitte or for any political pur
pose should be forbidden by law ; directors
should not be permitted to use stockhold
ers' money for such purposes ; and , more-
aver , a prohibition of tills kind would be ,
is far as it went , an effective method < Jf
stopping the evils aimed at in corrupt prac
tices acts.
The Comiiipr Ha ue Conference.
The first conference of nations held at
The Hague in 1890 , being unable to dispose
) f all the .business before it , recommended
: he consideration and settlement of a num-
) er of important questions by another con-
'erence to be called subsceinently and at an
Mrty date. In October , 1904 , at the in
stance of the Interparliamentary Union , I
ssued invitations to all the powers signa-
ory to The Hague convention to send dele
gates to such u conference and suggested
hat it be again held at The Hague. From
ill the powers acceptance was received ,
: oupled in some cases with the condition
hat we should wait until the end of the
var then waging between llussiii and ,7a-
inn. The Emperor of Russia , immediately
iftor the treaty of peace which so happily
ermiuated this war. in a note presented
o the President on Sept. 13 , through Am-
mssndor Rosen , took the initiative In rec-
miincnding that the conference be now
sailed. The United States government in
espouse expressed its cordial acqules-
lence. We assume that all civilized govern-
nents will support the movement , and
hut the conference Is now an assured fact.
This renders It proper at this time to say
omcthing as to the generalattitude of this
* *
government toward peace. A wanton o :
useless war , or a war of mere aggression-
in short , any war begun or carried on in !
conscienceless spirit , is to be condemnee
as a peculiarly atrocious crime against nl
humanity. We can , however , do nothinj
of permanent value for peace unless wi
keep ever clearly in mind the ethical ele
raent which lies at the root of the prob
lem. Our aim Is righteousness. Peace ii
normally the handmaiden of righteousness
but when peace and righteousness conflic
then a great and upright people can nevei
for a moment hesitate to follow the patl
which leads toward righteousness , ever
though that path also leads to war. Then
can be no worse foe of mankind In gen
eral , and of his own country in particular
than the demagogue of war , the man whe
in mere folly or to serve his own selfisl
ends continually rails at and abuses othe :
nations , who seeks to excite Ills country
men against foreigners on insufficient pre
texts , who excites and inflames a perverse
and aggressive national vanity , anel whe
may on occasions wantonly bring on con
flict between his nation ami some other na
tion. But there are elemagogues of peace
just ns there are demagogues of war
anel in any such movement as thi ;
for The Hague conference It is es
sentl.il not io be misled by one sol
of extremists any more than by the other
No object Is better worthy the attention
of enlightened statesmanship than the es
tablishmcnt of a surer method than now
exists of securing justice as between na
tions , both for the protection of the little
nations and for the prevention of war be
tween the big nations. To this aim we
should endeavor not only to avert blood
shed , but , above all , effectively to strength
en the forces of right. The golden rule
should be , and as the world grows in
morality it will be , the guiding rule of con
duct among nations as among individuals ;
though the golden rule must not be con
strued , in fantastic manner , as forbidding
the exercise of the police power. This
mighty and free republic should ever deal
with all other States , great or small , on a
basis of high honor , respecting their rights
as jealously as it safeguards its own.
Expounds the Monroe Doctrine.
One of the most effective instruments for
peace is the Monroe doctrine as it has been
anel is being gradually developed by this
nation and acccpteel by other nations. No
other policy could have been as efficient In
prompting peace in the western hemisphere
and in giving to each nation thereon the
chance to develop along its own lines. It
we had refused to apply the doctrine to
changing conditions it woulel now be com
pletely outworn , would not meet any of the
needs of the present day , and inelocd woulel
probably by this time have sunk into com
plete oblivion. It is useful at home , and
is meeting with recognition abroad because
we have adapted our application of it tc
meet the growing and changing needs .of
the hemisphere. That our rights and inter
ests are deeply concerned in the maintenance
of the doctrine is so clear as hardly to need
argument. This is especially true in view
of the construction of the Panama canal.
There are certain essential points which
must never be forgotten as regards the
Monroe doctrine. It must be understood
that under no circumstances will the Uni-
teel States use the Monroe doctrine as a
cloak for territorial aggression. We desire
peace with all the world , but perhaps most
of all with the other peoples of the Ameri
can continent. Moreover , we must make it
evident that we do not intend to permit the
Monroe doctrine to be used by any nation
on this continent as a shield to protect it
from the consequences of its own misdeeds
ngainst foreign nations. If a. republic to
the south of us commits a tort against a
foreign nation , such as an outrage against
a citizen of that nation , then the Monroe
doctrine does not force us to interfere to
prevent punishment of the tort , save to see
that the punishment does not assume the
form of territorial occupation in any shape.
Urgrca Santo Dominpro Action.
Santo Domingo , In her turn , has made
an appeal to us to help her , and not only
every principle of wisdom but every gen
erous instinct within us bids us respond
to the appeal. The conditions In Santo
Domingo have for a number of years
grown from bad to worse until a year
ago all society was on the verge of dis
solution. Fortunately , just at this time
a ruler sprang up in Santo Domingo , who ,
with his colleagues , saw the dangers
threatening their country and appealed to
the friendship of the only great and power
ful neighbor who possessed the power , and
as they hoped also the will to help them.
Accordingly the executive department of
our government negotiated a treaty under
which we are to try to help the Dominican
people to straighten out their finances.
This treaty is pending before the Senate.
In the meantime a temporary arrangement
has been made which will last until the
Senate has had time to take action upon the
treaty. Under this arrangement the Do
minican government has appointed Ameri
cans to all the important positions in the
customs service , and they are seeing to the
honest collection of the revenues , turning
over 4r per cent to the government for run-
nine expenses and putting the other oZ per
cent into a safe depositary for equitable
division , in case the treaty shall be ratified ,
among the various creditors , whether Euro
pean or American.
This has completely discouraged all revo
lutionary movement , while it has already
produced such an increase in the revenues
that the government is actually getting
more from the 4.1 per cent that the Ameri
can collectors turn over to it than it got
formerly when it took the entire revenue.
Under the course taken , stability and
order and all the benefits of peace are at
last coming to tranto Dotningo , danger of
foreign intervention has been suspended ,
and there is at last a prospect that all
creditors will get justice , no more and no
less. If the > arrangement is terminated by
the failure of the treaty chaos will follow ;
nnd if chaos follows , sooner or later this
uovernmont may lie involved in serious dif
ficulties with foreign governments ovor the
Island , or else may be forced itself to in
tervene in the island in some unpleasant
fashion.
Army nnd ? Tavy A Hairs.
We cannot consider the question of our
foreign policy without at the same time
treating of the army and the navy. AVe
now have a very small army indeed , one
ivell-nigh infinitesimal when compared with
the army of any other large nation. Of
course th * > army we do have should be as
nearly perfect of its kind and for its size
is is possible. I do not believe that any
irmy in the world has n better average of
? nlisted men or a better type of junior of-
licer : but the army should be trained to
ict effectively In a mass. Provision should
ic made by sufficient appropriations for
naneuvers of a practical kind , so that the
troops may learn how to take care of them
selves under actual service conditions.
Our navy must , relatively to the navies
) f other nations , always be of greater size
ban our army. We have most wisely con-
: inue > d for a number of years to build up
mr navy , nnel it has now reached a fairly
ilgh standard of efficiency. This standard
if efficiency must not only be maintained ,
nit increased. It does not seem to me
icccssary , however , that the navy should
it least in the iuimeumte future be in-
Teased beyond the present number of
mils. What Is now clearly necessary is to
: iibstitutp efficient for Inefficient units as
he latter become worn-out or as it be-
; omes apparent that they are useless.
Recent naval history has emphasized cor-
ain lessons which ought not to , but which
lo. need emphasis. Seagoing jorpcdo : boats
ir destroyers are indispensable , not ; only
! or making night attacks by surprise upon
: n enemy , but even in Oattle for finishing
ilrcady crippled ships. Under exceptional
ircumstances submarine boats would doubt-
ess be of use. Fast scouts arc needed.
Hie main strength of the navy , however ,
ies and can only lie in the great battle-
hips , the heavily-armored , heavily-gunned
esucls which decide the mastery of the
; eafi. Hoavy-armcd cruisers also play n
nost useful part , and unarmed cruisers , If
iwlft enough , are very useful as scouts.
in IVainrnllzntlon.
During the past year evidence has accu
mulated to confirm the expressions con
tallied in my last two annual messages a
to the Importance of revising by approprl
ate legislation our system of naturalizinf
aliens. I appointed last March a cominls
sion to make a careful examination o :
our naturalization laws , and to sug
gest appropriate measures to avoid the
notorious abuses resulting from the
improvident or unlawful granting
of citizenship. This commission
has discharged the duty imposed upon It ,
and has submitted a report , which will be
transmitted to the Congress for Its con
sideratlon , and , I hope , for its favorable
action.
Breaches of Trait in Public Service ,
There seems to be no statute of the Uni
ted States which provides for the punish
ment of a Uniteel States attorney or other
officer of the government who corruptly
agrees to wrongfully do or wrongfully re
frain from doing any act when the consid
eration for such corrupt agreement is oth
er than one possessing money value. This
ought to be remedied by appropriate legis
lation. Lcglslatin bhuhl also be enacted
to cover , explicitly , unequivocally and be
yond question , breach of trust in the shape
of prematurely divulging official secrets by
an officer or employe of the Uniteel States ,
and to provide a suitable penalty therefor.
Condition of 1'ulilic Land X > : iivs.
Onc9 again I call your attention to the
condition of the public land laws. Recent
developments have given new urgency to
the need for such changes as will lit these
laws to actual present conditions. The
honest disposal and right use of the re
maining public lands is of fundamental Im
portance. The iniquitous methods by which
the monopolizing of the public lands is be
ing brought about under the present laws
are becoming more generally known , but
the existing laws do not furnish effective
remedies. The recommendation of the pub
lic lands commission upon this subject arc
wise and should be given effect.
The creation of small irrigated farms un
der the reclamation act is a powerful offset
to the tendency of certain other laws to
foster or permit monopoly of the land.
The greater part of the remaining public
lands cannot be irrigated. They are at
present and will probably always be of
greater value lor grazing than for any
other purpose. This fact has led to the
grazing homestead of G40 acres in Nebras
ka and to the proposed extension of it to
other States. It Is argued that a family
cannot be supported on 1UO acres of arid
grazing land. This is obviously true ; but
neither can a family be supported on 010
acres of much of the land to which it iH
proposed to apply the grazing homestead.
To establish universally any such arbitrary
limit would be unwise at the present time.
Merchant Marine Indispensable.
To the spread of our trade in peace and
the defense of our flag in war a great and
prosperous merchant marine is indispensa
ble. We should have ships of our own and
seamen of our own to convey our goods to
neutral markets , and in case of need to re
inforce our battle Hue.
The Immigration Question.
We cannot have too much immigration
of the right sort , and we should have none
whatever of the wrong sort. Of course it
is desirable that even the right kind of im
migration should be properly distributed in
this country. We need more of such immi
gration for the South ; and special effort
should be made to secure it. In actual
practice it has proved so elifficult to en
force the immigration laws where long
stretches of frontier marked by an imagin
ary line alone intervene between us and
our neighbors that I recommend that no
immigrants be allowed to come in from
Canada and Mexico , save natives of the
two countries themselves. As much us pos
sible should be done to distribute the immi
grants upon the laud and. keep them away
from the congesteel tenement-house lit > -
tricts of the great cities. But distribution
is n palliative , not a cure. The prime
need is to keep out all immigrants who
will not make good American citizens.
The laws now existing for ihe exclusion
of unelesirable immigrants should be
strengthened. Adequate means should be
adopted , and enforced by sufficient penal
ties , to compel steamship companies en
gaged in the passenger business to observe
in good faith the law which forbids them
to encourage or solicit immigration to the
United States. Provision should be made
for the surer punishment of those who in
duce aliens to come to this country nudor
promise or assurance of employment. It
should be made possible to inflict a suffi
ciently heavy penalty on any employer vio
lating this law to deter him from taking
the risk. It seems to me wise that then-
should be an international conference held
to deal with this question of immigration ,
which has more than a merely national
significance.
The questions arising in connection with
Chinese immigration stand by themselves.
The conditions in China are such that the
entire Chinese coolie class , that is. the
class of Chinese laborers , skilled aud un
skilled , legitimately come under the head
of undesirable immigrants to this country ,
because ? of their numbers , the low wages
for which they work , and their low stand
ard of living. Not only is it to the
Interest of this country to keep them
out , but the Chinese authorities do
not desire that they should be ad
mitted. At present their entrance is
prohibited by laws amply adequate to
accomplish this purpose. But in tne effort
to carry out tho policy of e-u-Iuding Chi
nese laborers , Chineseoolies , grave injus
tice and wrong have been done by this
nation to the people of China , and there
fore ultimately to this nation itslf. . Chi
nese students , business and profi'ssiunal
men of all kinds not only merchant'but ,
bankers , dootors. manufacturers , professors ,
travelers and the like should be Micf r-
igcd to come here and treated on precisely
the same footing that we treat students ,
business men , travelers and tho liko of.
other nations. Our laws and treaties should
be framed , not so as to put tlu-se people-
In the excepted classes , but to state that
ive will aelmit all Chinese , except Chinese
it the coolie class , Chinese skilled or un
skilled laborers.
Mtio-li trouble has come during the p.ist
summer from the organized boycott agninst
'
American goods which has bee'n started in
[ Jhina. The main factor in producing this
boycott liaaj been the resentment felt by
: he students and business people of China ,
ly all the Chinese leaders , against th
liarshness of our law toward educated
L'hinanien of the professional and business
lasses. This government has the friondii-
jst feeling for China and desires China's
ivell-belng. We cordially sympathize with
he announced purpose of Japan to stand
or the integrity of China. Such an attl-
Lude tends to the peace of the world.
Adulteration of Foods.
I recommend that a law be enacted to
egulate Interstate commerce in mishram-
'el and adulterated foods , drinks , and drugs ,
such law woulel protect legitimate manu-
'acture and commerce , and would tenel to
secure the health and welfare of the con
suming publieTraffic In foodstuffs which
i.ive been debased or adulterated so as io
niure health or to deceive purchase-K
; honld be forbidden.
Tfational Parks and Shovr Places.
I call your attention to the generous act
> f the State of California In conferring
ipon the United State's government the
iwnership of the Yc niite Valley aud the
vlarlposa Big Tree grove. There"should be
10 delay in accepting the gift , and appro
bations shemld be made for the Including
hereof in the Yosemite National Park , ami
or the care and policing of the park. Cal-
foruia has actoel most wisely aa well as
vlth great magnanimity In the matter.
L'here are certain mighty natural features
) ' our land which should be preserved In
> erpetulty for our children and our chil-
Iren's children. In my judgment the Grand
-auyon of. the Colorado should be made
uto a national park. It is greatly to be
viBheel that tne State of New York should
copy as regards Niagara what the State of
California has doue as regards the Yosem
ite. Nothing should be allowed to Interfere
with the preservation of Niagara Falls la
all their beauty and majesty.
The Philippine l.ilnml * .
During the past year the Philippine Inl
ands have been slowly recovering from
the series of disasters which , since Ameri
can occupation , have greatly reduced th
amount of agricultural products belotr
what was produced In Spanish times. Th
war , the rinderpest , the locusts , tho
drought , and the cholera have been united
as causes to preve > nt n return of the pros
perity much needed In the Islands. Tho
Income of the Philippine government has
necessarily been reduced by reason of the
business and agricultural depression , in tho
islands , and the government has been ,
obliged to exercise great economy , to cut
down Its expenses , to reduce salaries , and
in every way to avoid a deficit. It
has adopted an Internal-revenue lair
imposing taxes on cigars , cigarettes ,
and distilled liquors , and abolishing
the old Spanish industrial taxes. Tho
come derived from It has partly made np
for the reduction In customs revenue. There
has been a markeel Increase' In the number
of Filipinos employed In the civil service ,
and a corresponding decrease In the num
ber of Americans.
Improvements of harbors , roaels , and
bridges continue , although the cutting down ,
of the revenue forbids the expenditure of
any great amount from current income for
these purposes. Disturbances have , all now-
been suppressed , and it is hoped that with ,
these lessons local governments can bo
formed which will secure quiet and pence
to the deserving Inhabitants. Tlie inci
dent is another proof of the fact that If
there has been any error as regards giving
self-government in the Philippines It has
been in the direction of giving it too quicTc-
ly. not too slowly.
The agricultural conditions of the islands
enforce more strongly than ever the argu
ment in favor of reducing the tariff on tho
products of the Philippine Inlands entering :
tho United States. I earnestly recommend
that the tariff now imposed by theDingley
bill upon the products of the Philippine Isl
ands be entirely removed , except the tariff
on sugar and tobacco , and that that tariff
be reduced to 23 per cent of the present
rates under the Dingley act ; that after
July 1 , 1909 , the tariff upon tobacco and
sugar produced in the Philippine Islands
be entirely removed , and that free trade
between the islands and the United States
in the products of each country then be >
provided for by law.
Problems of Ilav/ail.
In my judgment immediate steps should
be taken feir tho fortification of Hawaii.
This is the most important point in the Pa
cific to fortify in order to conserve the In
terests of this country. Hawaii is too heav
ily taxe-d. She has serious commercial and
industrial problems to reckon with ; but no-
measure of relief can be considered which ,
looks to legislation admitting Chinese and
restricting them by statute to field Jabor
and domestic service. The status of ser
vilityan never again be tolerated on Amer
ican soil.
Piirfo Itican Affairs.
I earnestly advocate the adoption qf leg
islation which will explicitly confer Amer
ican citizenship on all citizens of Porto
Kico. The problems and neeels of the island
are industrial and commercial rather than
political.
Jiixulnr Affairs in General.
I wisli also to call the attention of the
Congress to one question which afferts
our insular possessions generally : name
ly , the nceyl of an Increased liberality in
the treatment of the whole franchise
question in those islands. In the proper
( k'siro to prevent the inlands being ex
ploited by speculators and to have
them develop in the interest of their
own people an error has been made in re
fusing to grant sufficiently liberal terms to
induce the investment of American capH.il
in tho Philippines and in Porto Itico. We
luve been paying all possible heed to the
political and educational Interests of the
islands , but , important though these ob-
Jevts are , it is not less important that we
should favor their industrial development.
Admission < o Statehood.
I recommend that Indian Territory and
Oklahoma be admitted as one State and
that New Mexico and Arizona be admitted
as one .State. There is no justification for
further delay : and the advisability of mak
ing the four territories Into two States hai
been clearly established.
Tho Panama Canal.
The tre > aty between the United States
and the lie-public of Panama , under which
the construction of the Panama caunl was
made possible , went into effect with Its
ratification by the United States Senate
im Feb. : ; , JJ104. The canal properties of.
the French Canal Company were trans
ferred to the United States on April , ' .
131M , on paymont of § -IO00OCO ; to that
company. Active work in canal construc
tion , mainly preparatory , has been la
progress for less than : i year and a half.
During that period two points about the
[ anal haveceased to be open to debate.
Fir > r. the question of route ; the canal will
bo built on the Isthmus of Panama. Sec-
jnd. the question of feasibility ; there are *
no physical obstacles on this route that
Amt-rn-an engineering skill will not be able
to overcome without serious difficulty , or
that will prevent the < ompituo , a * iu -
: -anaI within a reasonable time and at a
; enson.ible cost.
Th < ' point which remains unsettled is tho
luostioii of type , whether the canal shall
lie one of several locks above .sea level , or
it tea level with a single tide : lock. . On
this point I hope Jo lay before the C m-
rress at an early day the findings of the
ulvisorr board of American ai.el European
. iijtiiu-crs. luat at my invitation hu\- * * u
onside-rrng tho subject , together with the
report of the commission thereon ; ami such
- ommt'r.is thereon or recommendations hi
: efereiu > ; thereto as may seem neccssarv.
The American people are pledged to the
Reediest possible construction of a. canal
ult'quato to meet the demands which the
. - oinnn'rceof the world will make upon It ,
ind I appeal most earnestly to the Con
gress to aid in the fulfillment of the
. ) U'dgo. Gratifying progress has been.
: nuli during the past year and especially
luring the past four months. The greater
tart of the necessary preliminary work
las boon done. Actual work of excavation
vnild IKbegun only on a limited sc4Ie till
he ran.il zone was made a healthful placa
o live in and to work in. The isthmus had
: < bo sanitated first. This task haff beea
= o thoroughly accomplished that yellovr
'ever has beon virtually extirpated from
; he isthmus and general health condition *
rastly improved.
In addition to sanitating the Isthmus ,
satisfactory quarters are being provided
'or employes and an adequate Sysleim
) f supplying them with wholesome
'ood at reasonable prices has beea
-rented. Hospitals have been cstab-
isheel and equipped that arc. with-
> ut superiors of their kind anywhere ,
[ luriiu : the past yoar a large portion of
: hc plant with which the work fs lo be
lone lias b eii ordered. It is confidently
> elicved that by the middle of t & ap-
iruachlng year a sufficient pronoctida of
: h's plant will havo been installed to en-
iblo us to resume the work of excavatloa
> u a large scale.
What is needed now and without dcjay Is
in appropriation by the Congress to" .meet
he current and accruing expenses df tho
ominissiou. The first appropriation of $10-
KX.00 < > , out of the $1 5,000,000 outtttized
iy the Speioner act , was made three years
igo. It is nearly exhausted. < Dhore Is
mrely enough of it remaining to carry the
'omailssion to the pnd of the year. Un
less the Congress shall appropriatcfajefor *
: hat time all work uinsi cease , aid there
svill be demoralization of the forcuis , her *
ind on the isthmus , now working go har
moniously and effectively. If there 13 delajr
In crantiag nn emergency
TJIEODOKB