'resident '
ess
To the Senate and House of Representa
tives :
The financial standing of the nation at
the present time is excellent , and the
financial management of the nation's in
terests by the government during the last
seven years has shown the most satisfac
tory results. But our currency system is
imperfect , and it is earnestly to he hoped
that the currency commission will be able
to propose a thoroughly good system which
will do away with the existing defects.
During the period from July 1 , 1)01 ! ) , to
Sept. 30 , 1SKS. ) there was an increase in
the amount of money in circulation of
$002)01.HpO. ! ) This increase Jn the _ _ per
capita during this period was $7.00. With
in this time there were several occasions
when it xras necessary for the Treasury
Department to come to the relief of the
money market by purchases or redemp
tions of United States bonds ; by increas
ing deposits in national banks : by stimu
lating additional issues of national bank
notes , and by facilitating importations
from abroad of gold. Onr imperfect cur
rency system has made these proceedings
necessary , and they were effective until
the monetary disturbance in the fall of
1907 immensely increased the difficulty/ >
4 ordinary methods of relief. By the mid
dle of 'November the available working
balance in the treasury had been reduced
to approximately $ .1,000.000. Clearing
house associations throughout the country
had been obliged to resort to the expedient
of issuing charing house certificates , to
bo used as money. In this emergency it
was determined to invite subscriptions for
SnO,000,000 Panama canal bonds , and
5100,000,000 three per cent certificates of
indebtedness authorized by tn < ? act of .Tune
13 , 1SOS. It was proposed to re-deposit
in the national banks the proceeds of
these issues , and to permit their use as
a basis for additional circulating notes of
national banks. The moral effect of this
procedure was so great that it was neces
sary to issue only $24.0:51.080 : of the Pan
ama canal bonds and ? 15,430,000 ot the
certificates of indebtedness.
During the period from July 1 , 1003. to
Sept. 30 , 1008 , the balance between the
net ordinary receipts and the net ordinary
expenses of the government showed a sur
plus in the four years 1002 , 1003 , T.JOG
and 1907. and a deficit in the years 1904 ,
1905 , 190S , and a fractional part of the
fiscal year 1909. The net result was a
surplus of $99.283.413.54. The financial
operations of the government during this
period , based upon those differences be
tween receipts a ml expenditures , resulted in
a net reduction of the interest-bearing debt
of the United States from $ n.S7.U1.040
to . $897.253.990 , notwithstanding that
there had boon two sales of Panama canal
bonds amounting in the aggregate to $54.-
G31.9SO. and an issue of throe per cent
certificates of indebtedness under the act
of June 13. 1898 , amounting to $15.430.-
HOO. Refunding operations of the Treas
ury Department under the act of March
14 , 1900 , resulted in the conversion into
two per cent consols of 1930 of $200.309.-
400 bonds bearing higher rates of interest.
A decrease of $ S.OS7.95i in the annual in
terest charge resulted from these opera
tions.
In short , during the seven years and
three months there has been a net surplus
of nearly one hundred millions of receipts
over expenditures , a reduction of the in
terest-bearing debt by ninety millions , in
spite of the extraordinary expense of the
Panama canal , and a saving of nearly
nine millions on the anual interest charge.
This isan exceedingly satisfactory show
ing , especially in view of the fact that
during this period the nation has never
hesitated to undertake any expenditure
that it regarded as necessary. There have
been no new taxes and no increases of
taxes : on the contrary , some taxes have
been taken off : there has been a reduction
of taxation.
Corporations.
As regards the great corporations en-
paged in interstate business , and especial
ly the railroads , I can only repeat what I
have already again and again said in my
messages to the Congress. I believe that
under the interstate clause of the Consti
tution the United States has complete
and paramount right to control all agen
cies of interstate commerce , and I believe
that the national government alone can
exercise this right with wisdom and effec
tiveness so as both to secure justice from ,
and to do justice to , the great corpora
tions which are the most important fac
tors in modern business. I believe that
it is worse than folly to attempt to pro
hibit all combinations as is done by the
Sherman anti-trust law , because such a
law can be enforced only imperfectly and
unequally , and its enforcement works al
most as much hardship as good. I strong
ly advocate that instead ot an unwise
effort to prohibit all combinations , there
shall be substituted a law which shall
expressly permit combinations which are
in tihe interest of the public , but shall at
the same time give to some agency of the
national government full power of control
and supervision over them. One of the
chief features of this control should be
securing entire publicity in all matters
which the public has a right to know , and
furthermore , the power , not by judicial
but by executive action , to prevent or put
a stop to every form of improper favorit
ism or other wrongdoing.
The railways of the country should be
put completely under the interstate com
merce commission and removed from the
domain of the anti-trust law. The power
of the commission should be made thor
oughgoing , so that it could exercise com
plete supervision and control over the
issue of securities as well as over the rais
ing and lowering of rates. As regards
rates , at least , this power should be sum
mary. The power to investigate the finan
cial operations and accounts of the rail
ways has been one of the most valuable
features In recent legislation. Power to
make combinations and traffic agreements
should be explicitly conferred upon the
railroads , the permission of the commis
sion being first gained and the combina
tion or agreement being published in all
its details. In the interest of the public ,
the representatives of the public should
have complete power to see that the rail
roads do their duty by the public , and as
a matter of course this power should also
be exercised so as to see that no injustice
is done to the railroads.
Telegraph and telephone companies en
gaged in interstate business should be put
under the jurisdiction of the interstate
commerce commission.
It is very earnestly to be wished that
our people , through their representatives ,
should act in this matter. It is hard to
say whether most damage to the country
at large would come from entire failure
on the part of the public to supervise and
control the actions of the great corpora
tions , or from the exercise of the neces
sary governmental power in a way which
would do injustice and wrong to the cor
porations. Both the preachers of an un
restricted individualism , and the preachers
of an oppression which would deny to able
men of business the just reward of their
initiative and business sagacity , are advo
cating policies that would be fraught with
the gravest harm to the whole country.
To permit every lawless capitalist , every
law-defying corporation , to take any ac
tion , no matter how iniquitous , in the
effort to secure nn improper profit and
to build tip privilege , would be ruinous
to the republic and would mark the aban
donment of the effort to secure in the
industrial world the spirit of democratic
fair-dealing. On the other hand , to at
tack thes.e wrongs in that spirit of dein-
ajogy ; which can see wrong only when
committed by the man of wealth , and is
dumb and blind in the presence of wrong
committed against men of property or by
IITMI of no property , is exactly as evil as
cornrptly to defend the wrongdoing of
men of wealth. The \yar we wage must
be waged against misconduct , against
wrongdoing wherever it is found ; and we
must stand heartily for the rights , of ev
ery decent man. whether he be a man of
great wealth or a man who earns his live
lihood as a wageworker or a tiller of the
soil.
It is well to keep in mind that exactly
as the anarchist is the worst enemy of lib
erty and the reactionary the worst enemy
of order , so the men who defend the rights
of property have most to fear from the
wrongdoers of great wealth , and the men
who are championing popular rights have
most to fear from the demagogues who in
the name of popular rights would do
wrong to and oppress honest business
men , honest men of wealth ; for the suc
cess of either type of wrongdoer neces
sarily invites a violent reaction against
the cause the wrongdoer nominally up
holds. In point of danger to the nation
there is nothing to choose between on the
one hand the corruptionist , the bribe-
giver , the bribe-taker , the man who em
ploys his great talent to swindle his fel
low-citizens on a large scale , and , on the
other hand , the preacher of class hatred ,
the man who. whether from ignorance or
from willingness to sacrifice his country
to his ambition , persuades well-meaning
but wrong-headed men to try to destroy
the instruments upon which our prosper
ity mainly rests. Let each group of men
beware of and guard against the shortcem-
ings to which that group is itself most
liable. Too often we see the business
community in a spirit of unhealthy class
consciousness deplore the effort to hold to
account under the law the wealthy men
who in their management of great corpo
rations , whether railroads , street railways ,
or other industrial enterprises , have be
have ; ! in a way that revolts the conscience
of the plain , decent people. Such an atti
tude cannot be condemned too severely ,
for men of property should recognize that
they jeopardize the rights of property
when they fail heartily to join in the ef
fort to < lo away with the abuses of wealth.
On the other hand , those who advocate
proper control on behalf of the public ,
through the State , of those great corpora
tions , and of the wealth engaged on a
giant scale in business operrrtions. must
ever keep in mind that unless they do
scrupulous justice to the corporation , un
less they permit ample profit , and cordial
ly encourage capable men of business so
long as they net with honesty , they are
striking at the root of our national well-
being : for in the long run. under the mere
pressure of material distress , the people
as a whole would probably go back to the
reign of an unrestricted individualism
rather than submit to a control by the
State so drastic and so foolish , conceived
in a spirit of such unreasonable and nar
row hostility to wealth , as to prevent busi
ness operations from being profitable , and
therefore to bring ruin upon the entire
business community , and ultimately upon
the entire body of citizens. We do not
for -a moment believe that the problem
will be solved by any short and easy
method. The solution will come only by
pressing various concurrent remedies ,
which the federal government alone can
enact and which is absolutely vital in or
der to secure the attainment of our pur
pose. Many laws are needed. There
should be regulation by the national gov
ernment of the great interstate corpora
tions , including a simple method of ac
count keeping , publicity , supervision of
the issue of securities , abolition of rebates
and of special privileges. There should
be short time franchises for all corpora
tions engaged in public business ; includ
ing the corporations which get power from
water rights. There should be national
as well as State guardianship of mines
and forests. The labor legislation herein
after referred to should concurrently be
enacted into law.
To accomplish this , means of course a
certain increase in the use of not the cre
ation of power by the general government.
The power already exists ; it does not have
to ho created ; the only question is wheth
er It shall be used or left idle and mean
while the corporations over which the
power ought to be exercised will not re
main idle. Let those who object to this
increase In the use of the only power
available , the national power , be frank , and
admit openly that they propose to aban
don any effort to control the great busi
ness corporations and to exercise super
vision over the accumulation and distribu
tion of wealth : for such supervision and
control can only come through this par
ticular kind of increase of power. We no
more believe in that empiricism which de
mands absolutely unrestrained Individual
ism than we do in that empiricism which
clamors for a deadening socialism which
would destroy all Individual initiative and
would ruin the country with a complete
ness that not even an unrestrained indi
vidualism Itself could achieve. The danger
to American democracy lies not In the least
in the concentration of administrative pow
er in responsible and accountable hands. It
lies in having the power insufficiently con
centrated , so that no one can be held re
sponsible to the people for its use. Con
centrated power is palpable , visible , re
sponsible , easily reached , quickly held to
account. Power scattered through many
administrators , many legislators , many men
who work behind and through legislators
and administrators , is impalpable , Is un
seen , is irresponsible , cannot be reached ,
cannot be held to account. Democracy is
in peril wherever the administration of po
litical power is scattered among a variety
of men who work in secret , whose very
names are unknown to the common people.
It is not in peril from any man who de
rives authority from the people , who ex
ercises it in sight of the people , and who
is from time to time compelled to give an
account of its exercise to the people.
Labor.
There are many matters affecting labor
and the status of the wageworker to which
I should like to draw your attention , but
an exhaustive discussion of the problem in
all its aspects is not now necessary. This
administration is ncaring its end ; and ,
moreover , under our form of government
the solution of the problem depends upon
the action of the States , as much as upon
the action of the nation. 1 believe in a
steady effort , or perhaps it would be more
accurate to stay In steady efforts In many
different directions , to bring t&out a condi
tion of affairs under which the men who
work with hand or with brain , the laborers ,
the superintendents , th men who produce
for the market and the men who find a
market tor the articles produced , shall own
a far greater share than at present of the
wealth thrj protect , and la nutted to
Invest It In the tools and ' Instruments by
which all the work is ca'rried on. As far as
possible I hope to sec a frank recognition
of the advantages conferred by machinery ,
organization and division of labor , accom
panied by an effort to bring about a larger
sjiare in the ownership of wageworker of
railway , mill and factory. In farming , this
simply means that we wish to see the farm
er own iiis own land ; wo do not wish to see
the farms so large that they become the
property of absentee landlords who farm
them by tenants , nor yet so small that the
farmer becomes like a European peasant.
Again , the depositors In our savings banks
now number over one-tenth of our entire
population. These are all capitalists , who
through the savings banks loan their
money to the workers that is , in many
cases to themselves to carry on their va
rious industries. The more we increase
their number , the more we introduce the
principles of co-operation into our indus
try. Every Increase in the number of small
stockholders In corporations is a good thing ,
for the same reasons ; and where the em
ployes are the stockhol'ders the" result is
particularly good. Very much of this move
ment must be outside of anything that can
be accomplished 1)3leglgiatleK : but legis
lation ca"n do a good deal. Postal savings
hanks will make it easy for the poorest to
keep their savings in absolute safety. The
regulation of the national highways nnist be
such that they shall serve all the people
with equal justice. Corporate finances
must be supervised so as to make it far
safer than at present for the man of small
means to invest his inOney in stocks. There
must be prohibition of child labor , diminu
tion of woman labor , shortening of hours of
all mechanical labor ; stock watering should
be prohibited , ajid slock gambling so far
as is possible discouraged. There should
be a progressive inheritance tax on lar | |
fortunes. Industrial education should be
encouraged. As far as possible we should
lighten the burden of taxation on the small
man. We should put a premium upon
thrift , hard work and business energy ; but
these qualities cease to be the mai fac
tors in accumulating a fortune long before
that fortune reaches a point where it would
be seriously affected by any inheritance tax
sucli as I propose. 'It is eminently right
that the nation should lix the terms upon
which the great fortunes are inherited.
Thev rarely do any good and they often do
harm to those who inherit them in their
entirety.
Protection fop Wagre Workers.
There should no longer be any paltering
with the question of taking care of the
wageworkers who , under our present na
tional system , become killed , crippled or
worn out as part of the regular Incidents
of a given business. The majority of wage-
workers must have their rights secured for
them by State action ; but the national
government should legislate in thorough
going and far-reaching fashion not only for
all employes of the national government ,
but for all persons engaged in interstate
commerce.
rending a thorough-going Investigation
and action there is certain legislation
which should be enacted at oace. The law ,
passed at the last session of the Congress ,
granting compensation to certain classes of
employes of the government , should be ex
tended to include all employes of the gov-
ejument and should be made more liberal in
its terms.
1 renew my recommendation that the
principle of the eight-hour day should as
rapidly and as far as practicable be ex
tended to the entire work being carried on
bv the government : the present law should
bo amended to embrace contracts on those
public works which the present wording of
the act seems to exclude.
The Courts.
I most earnestly urge upon- the Congress
the duty of increasing the totally inade
quate salaries now givin to our judges. On
the whole there is no body of public serv
ants who do as valuable work , nor whose
moneyed reward is so inadequate compared
to their work. Beginning with the Supreme
Court the judges should have their salaries
doubled. It is not bci'.tiinir the dignity of
the nation that its most honored public
servants should be paid sums so small com
pared to what they would earn in private
life that the performance of public service
by them implied an exceedingly heavy pe
cuniary sacrifice.
It is earnestly to be desired that some
method should be devised for doing away
with the long delays which now obtain in
the administration of justice , and which
operate with peculiar severity against per
sons of small means , and favor only the
very criminals whom it is most desirable
to punish.
At the last election certain leaders of
organized labor made a violent and sweep
ing attack upon the entire judiciary of the
country , an attack couched in such terms
as. to include the most upright , honest and
broad-minded judges , no less than those of
narrower mind and more restricted outlook.
It was the kind of attack admirably titled
to prevent any successful attempt to reform
abuses of the judiciary , because it gave the
champions of the unjust judge their eagerly
desired opportunity to shift their ground
into a championship of just judges who
were unjustly assailed. Last year , before
the House Committee on , the Judiciary
these same leaders formulated their de
mands , specifying the bill that contained
them , refusing all compromise , stating they
wished the principle of that bill or nothing.
They insisted on a provision that in a
labor dispute no injunction should issue
except to protect a property right , and spe
cifically provided that the right to carry
on business should not be construed as a
property right ; ajid in a second provision
their bill made legal iu a labor dispute
any act or agreement by or between two
or more persons that would not have been
unlawful if done by a single person. In
other words , this bill legalized blacklisting
and boycotting in every form , legalizing ,
for instance , those forms of the secondary
boycott which The anthracite coal strike
commission so unreservedly condemned ;
while the right to carry ou a business was
explicitly taken out from under that pro
tection whicli the law throws over proper
ty. The demand was made that there
should be trial by jury in contempt cases ,
thereby most seriously impairing the au
thority of the courts. All this represented
a course of policy which , If carried out ,
would mean the enthronement of class priv
ilege In its , crudest and most brutal form ,
and the destruction of one of the most
essential functions of the judiciary in all
civilized lands.
The violence of the crusade for this legis
lation , and its complete failure , illustrate
two truths which It is essential our people
should learn. In the first place , they ought
to teach the workingman , the laborer , the
wageworker , that by demanding what is
improper and impossible he plays Into the
hands of his foes. Such a crude and vi
cious attack upon the courts , even if it were
temporarily successful , would inevitably in
the end cause a violent reaction and would
band the great mass of citizens together ,
forcing them to stand by all the judges ,
competent and incompetent alike , rather
than to see the wheels of justice stopped.
A movement of this kind can ultimately re
sult in nothing but damage to those In
whose behalf It is nominally undertaken.
The wageworkers , the workingmen , the
laboring men of the country by the way in
which they repudiated the effort to get
them to cast their votes in respons/j to an
appeal to class hatred , have emphasized
their sound patriotism and Americanism.
The whole country lias cause to feel pride
in this attitude of sturdy independence , in
this uncompromising insistence upon acting
simply as good citizens , as good Americans ,
without regard to fancied and improper
class interests. Such an attitude is an ob
ject lesson in good citizenship to the en
tire nation.
But the extreme reactionaries , the per
sons who bind themselves to the wrongs
now and then committed by the courts on
laboring men , should also think seriously
as to what such a movement as this per
tends. The judges who have shown them-
sejves able and willing effectively to check
the dishonest activity of the very rich man
who works iniquity by the mismanagement
of corporations , who have shown them
selves alert to do justice to the wagework
er , and sympathetic with the needs of the
mass of our people , so that the dweller in
the tenement houses , the man who prac
tices a dangerous trade , the nfan who is
crushed by excessive hours of labor , feel
that their needs are understood bv the
courts these judges are the real bulwark
of the courts ; these judges , the judges of
the stamp of the President-elect , who have
been fearless in opposing labor when It
has gone wrong , but fearless also In holdIng -
Ing to strict account corporations that work
iniquity , and far-sighted in seeing that
the worklngman gets his rights , are the
men of all others to whom we owe it that
th appeal for such violent and mistaken
has faltea a deaf con ; , tbat tfee
agitation for its passage proved to Re with
out substantial basis. The courts are
Jeoparded primarily by the action of these
Federal and State judges who show in
ability or unwillingness to put a stop to
the wrongdoing of very rich men under
modern industrial conditions , and inability
or unwillingness to give relief to men of
small means or wageworkers who are
crushed down by these modern industrial
conditions ; who , in other words , fail to
understand and apply the needed remedies
for the new wrongs produced by the new
and highly complex social and industrial
civilization which has grown up in the
last half century.
There are certain decisions by various
courts which have been exceedingly detri
mental to the rights of wageworkers. This
Is true of all the decisions that decide that
men and women are. by the constitution ,
"guaranteed their liberty" to contract to
enter a dangerous occupation , or to work
an undesirable or improper number of
hours , or to work in unhealthy surround
ings , ; and therefore cannot recover dam
ages when maimed in that occupation , anil
cannot be forbidden to work what the leg
islature decides is an excessive number
of hours , or to carry on the work under
conditions which the Legislature decides
to be unhealtliy. Decisions such as these
alluded to above nullify the legislative
effort to protect the wageworkers jvho most
need protection from those employers , who
take advantage of their grinding need.
There is also , I think , ground for the be
lief that substantial injustice is often suf
fered by employes in consequence of the
custom of courts issuing temporary injunc
tions without notice to them , and punishing -
ing them for contempt of court in instances
where , as a matter of fact , they have no
knowledge of any proceedings. Outside of
organized labor there is a widespread feel
ing that this system oiten works gceat in
justice to wageworkers when their efforts
to better their working conditions result in
industrial disputes. A temporary Injunction
procured ex parte may as a matter of fact
have all the effect of a permanent injunc
tion in causing disaster to th-e wagework
ers' side in such a dispute. Organized labor
is dialing under the unjust restraint which
comes from repeated resort to this plan of
procedure. Its discontent has been unwise
ly expressed , and often improperly ex
pressed , but there is a sound basis for it ,
and the orderly and law-abiding people of a
community wouhl be in a far stronger posi
tion for upholding the courts If the un
doubtedly existing abuses could be provided
against.
Such proposals as those mentioned above
as advocated by the extreme labor leaders ,
contain the vital error of being class legis
lation of the most offensive kind , and even
if enacted into law I believe that the law
would rightly be held unconstitutional.
Moreover , the labor people are themselves
now beginning to invoke the tis/e / of the
power of injunction. During the last ten
years , and within my own knowledge , at
least fifty injunctions have been obtained
by labor unions in New York City alone ,
most of them being to protect the union
label ( a "property right" ) , but some being
obtained for other reasons against employ
ers. The power of injunction is a great
equitable remedy which should on no ac
count be destroyed. But safeguards should
be erected against its abuse. I believe that
some such provisions as those I advocated
a year ago for checking the abuse of the
issuance of temporary injunctions should be
adopted.
The chief lawmakers in our country may
be , and often are , the judges , because they
are the tinal seat of authority. Every time
they interpret contract , property , vested
rights , due process of law. liberty , they
necessarily enact into law parts of a sys
tem of social philosophy : and as such in
terpretation is fundamental , they give di
rection to all law-making. The decisions
of the courts on economic and social ques
tions depend upon their economic and so
cial philosophy : and for the peaceful prog-
rev > 3 of our people during the twentieth
century we shall owe most to those judges
who hold to a twentieth century economic
and social philosophy and not to a lout :
outgrown philosophy , which was itself the
pro'duct of primitive economic conditions.
The legislators and executives are chosen
to represent the people in enacting and ad
ministering the laws. The judges are not
chosen to rcpres.en the people in this soiise.
Their function is to interpret the laws. The
legislators are responsible for the laws ;
the judges for the spirit in which they in
terpret and enforce the laws. We stand
aloof from the reckless agitators who would
make the judges mere pliant tools of popu
lar prejudice and passion ; and we s.tand
aloof from those equally unwise partisans
of reaction and privilege , who deny the
proposition that , inasmuch as judges are
chosen to serve the interests of the whole
people , they snould strive to find out what
those interests are , and , so , far as they con
scientiously can , should strive to give effect
to popular conviction when deliberately and
duly expressed by the lawmaking body. The
courts are to be highly commended and
staunchly upheld when they set their faces
against wrongdoing or tyranny by a major
ity ; but they are to be blamed when they
fail to recognize under a government like
ours the deliberate judgment of the major
ity as to a matter of legitimate policy , when
duly expressed by the Legislature. Such
lawfully expressed and deliberate judgments
should be given effect by the courts , save
in the extreme and exceptional cases where
there lias been a clear violation of a consti
tutional provision. Anything like frivolity
or wantonness in upsetting such clearly tak
en governmental action is a grave offense
against the republic.
For many of the shortcomings of justice
In our country our people as a whole are
themselves to blame , and the judges and
juties merely bear their share together with
the public as a whole. It is discreditable to
us as a people that thcru should be diffi
culty in convicting murderers , or in bring
ing to justice men who as public servants
have profited by the corruption of public
servants. The result is equally unfortu
nate , whether due to hairsplitting techni
calities in the interpretation of laws by
judges , to sentimentality and class con
sciousness on the part of juries , or to hys
teria and sensationalism in the daily press.
For much of this failure of justice no re
sponsibility whatever lies on rich men as
such. We who make up the mass of the
people cannot shift the responsibility from
our own shoulders. But there is an im
portant part of the failure which has spe
cially to de with inability to hold to proper
account men of wealth who behave badly.
The chief breakdown Is in dealing with
the new relations that arose from the mu
tualism , the interdependence of our time.
Every new social relation begets a new
type of wrongdoing of sin , to use an old-
fashioned word and many years always
elapse before society Is able to turn this
sin into crime which can be effectively pun
ished at law. During the lifetime of the
older men now alive the social relations
have changed far more rapidly than in the
preceding two centuries. The immense
growth of corporations , of business , done bv
associations , and the extreme strain and
pressure of modern life , have produced con
ditions which render the public confused
as to who its really dangerous foes are ;
and among the public servants who have
not only shared this confusion , but by some
of their acts have increased it , are certain
judges. Marked inefficiency has been shown
in dealing with corporations and in re
settling the proper attitude to be taken
by the public not only towards corporations ,
but towards labor , and towards the social
questions arising out of the factory svs-
tem , and the enormous growth of our great
cities.
The huge wealth that has been accumu
lated by a few individuals of recent years ,
in what has amounted to a social and in
dustrial revolution , lias been as regards
some of these individuals made possible
only by the improper use of the modern
corporation. A certain type of modern
corporation , with its officers and agents , its
many issues of securities , and its constant
consolidation with allied undertakings ,
finally becomes an instrument so complex
as to contain a greater number of elements
thpt. under various judicial decisions , lend
themselves to fraud and oppression than
any device yet evolved in t ie human brain.
Corporations are necessary instruments of
modern business. They have been permit
ted to become a menace largely because
the governmental representatives of the
people have worked slowly in providing for
adequate control over them.
The courts hold a place of peculiar and
deserved sanctity under our form of gov
ernment. Itespect for the law is essential
to the permanence of our Institutions ; and
respect for the law Is largely conditioned
upon respect for the courts. It is an of
fense against the republic to say anything
which can weaken this respect , save for
the gravest reason and in the most care
fully guarded manner. Our judges should
bo held In peculiar flonor. On on
they stand above any other servants of the
community , and the greatest judges have
reached th highest level held by those few
greatest patriots whom the whole country
delights to honor. But we must face the
fact that there are wise and unwise judges ,
just as there arc wlso and unwise execu
tives and legislators. When a 1'resident era
a governor behaves improperly or unwise
ly , the remedy is easy , for his term Is
short : the same is true with the legislator ,
although not to the same dogrco. for ho is
one of many who belong to some given
legislative body , ai.d it Is therefore less
easy to fix his personal responsibility and
hold him accountable therefor. With a
juoVa. who , being human , is also likely to
err. but whose renuro is for life , there is
no similar way of holding him to responsi
bility. Under ordinary conditions the onlv
forms of pressure to which he Is in any
way amenable are public opinion , and the
art ion of his follow judiros. It is the last
which is most immediately effective , and to
which we should look for the reform of
abuses. Any remedy applied from without
is fraught with risk"It is far better , from
every standpoint , that the remedy should
come from within. In no other nation in
the world do the courts wield such vast
and far-reaching power an in the t'nited
States. All that Is neoes-nry i that the
courts as a whole should exorcise this
power with tw ! ? farsighted wisdom already
shown by those judges who scan tJ > e fu
ture while they act in the present.
Kure.st * .
If there is any one uiity which more
than another wo owe it to our children atd
. our children's children to perform at once.
' it is to save the forests of this country , for
they constitute the first and most impo ,
tant element in the conservation of the
natural resources of the country. It matters -
tors not whether this deforestation Is due
to the actual reckless cutting of timber , to
the fires that inevitably follow such reck
less and uncontrolled grazing , especially by
the great migratory bauds of slee : > . the
unchecked wandering of which over the
country moans destruction to forests and
disasteV to the small home makers , the
settlers of limited means.
Shortsighted persons , or persons blinded
to the future by desire to make money in
every way out of the present , sometimes
speak as if no great damage would lie done
by the reckless destruction of our forests.
It is difficult to have patience with the ar
guments of these persons. Thanks to our
own recklessness in the use of our splen
did forests , we have already crossed the
verge of a timber famine in this country ,
and no measure that wo now take can. at
least for many years , undo the mischief
that has already boon done. But we can
prevent further mischief being done ; and
it would 1)0 in the highest degree repre-
hnsible to let any consideration of temporary
ary convenience or temporary cost inter
fere with such action , especially as regards
the national forests which the nation can
now , at this very moment , control.
Inland "Waterway * .
Action should be begun forthwith , during
the present session of the Congress , for the
improvement of our inland waterways -
action which will result in giving us not
only navigable but navigated rivers. We
have spent hundreds of millions of dollars'
upon these waterways , yet the traffic on
nearly all of them is steadily declining.
This condition is the direct result of the
absence of any comprenensivo and farseeing
ing plan of waterway improvement. Ob
viously wo can not continue thus to expend
the revenues of the government without re
turn. It is poor business to spend , money
for inland navigation unless we get it.
Sur-li shortsighted , vacillating , and futile
methods are accompanied bv decreasing
wator-borne commerce and increasing traf
fic congestion c.t ! laud , by increasing iloods.
and by the waste of public money. Tlie
remedy lies in abandon in ; , ' the methods
which have so signally failed and adopting
new ones in keeping with the needs and
demands of our people. The time for play
ing with our waterways is past. The coun
try demands results.
Xatioal Parks.
I urge that all our national paries adja
cent to national forests be placed com
pletely under Mie control of the forest
service of the agricultural department , in
stead of leaving them as they now are.
under the interior department and policed
by the army.
Pnre Pood.
The pure food legislation has already
worked a benefit difficult to overestimate.
Indian Service.
It has been my purpose from the begin
ning of my administration to take the In
dian service completely out of the- atmos
phere of political activity , and there has
been steady progress toward that end.
Secret Service.
Last year an amendment was incorpor
ated in the measure providing for the se
cret service , which provided that there
should be no detail from the secret service
and no transfer therefrom. It is not too
much to say that in its present form the
restriction operates only to the advantage
of the criminal or the wrongdoer.
Po.stal Saving : * Banks.
I again renew my recommendation for
postal savings banks , , for depositing sav
ings with the security of the Government
behind them. The object is to encourage
thrift and economy in the wage-earner and
person of moderate means. There are
many localities in the United States where
, sufficient opportunity is not given to the
'people to deposit their savings. The re
sult is that money is kept iu hiding and
unemployed. It is believed that in the
aggregate vast sums of money would be
brought into circulation through the instru
mentality of the postal savings bank.
Parcels Post.
In my last annual message I commended
the postmaster general's recommendation
for an extension of the parcel post ou the
rural routes. The establishment of a local
parcel post on rural routes would he to the
mutual benefit of the farmer and the coun
try storekeeper , and it is desirable that the
routes , serving more than lo.OOO.OOO people
ple , should be utilized to the fullest prac
ticable extent. It would seem only proper
that an experiment should be tried in order
to demonstrate the practicability , of the
proposition.
Education.
The share that the national government
should take in the broad work of education
has not received the attention and the care
it rightly deserves. The immediate respon
sibility for the support and improvement
of our educational systems and institutions
rests and should always rest with the people
ple of the several states acting through
their state and local governments , but the
nation has an opportunity In educational
work which must not be lost and a duty
which should no longer be neglected.
With the limited means hitherto pro
vided , th bureau of education has rendered
efficient service , but the Congress has neg
lected to adequately supply the bureau with
means to meet the educational growth of
the country. I earnestly recommend that
this unfortunate state of affairs as re
gards the national educational office be
remedied by adequate appropriations.
Census.
I commend to the Congress the careful
consideration of the admirable report of
the director of the census , and I trust that
his recommendations will be adopted and
immediate action thereon taken.
Public Health.
It is highly advisable that there should
be intelligent action on the part of the na
tion on the question of preserving the
health of the country. The first legisla
tive step to be taken is that for the con
centration of the '
proper bureaus' into one
of the existing departments. I therefore
urgently recommend the passage of a bill
which shall authorize a redistribution of
the bureaus which shall best accomplish
this end.
Government Printing Olliee.
I recommend that legislation be enacted
placing under the jurisdiction of the de
partment of commerce and labor the gov
ernment printing office.
Soldiers' Homes.
AM Soldiers' Homes should be placed un
der the complete jurisdiction and control
of the war department.
Independent Bureaus and Commis
sions.
Economy and sound business policy re
quire that all existing Independent bureaus
and commissions should be placed under
the jurisdiction of appropriate executive
departments.
Statehood.
I adrocate the immediate admission of
! Now Merit. * anlrzon ; ! as states , tali
J should IM- dune ; tiiu present session at
' the Congress.
' Interstate FIrIierle .
I call the attention of the Congress to
the Importance o' the probiom of the fish
eries in the interstate \ > : iti-rs. In this a *
in similar p-o ! > Iem. * tbo obvious iind simple
rn'.e should be foMowe.l of bavin- ; those
in-ittorn v.'hli'b no particular state can man
age taken in hand by the t'nkod States.
Ki.slieriex ami Kiir Seals.
The federal statute re iila'Ing interstate
traffic in game should be extended to in
clude fish. Now federal fish natcneries
should bo established. The administration
of the Alaskan fur-so.'il service should be
vested In the bureau of fisheries.
PorelKa Affalr.H.
This nation's foreign policy Is based on
the theory that right must be done between
nations precisely as between individual : .
an-1 in our actions for the last ten year *
wo have in this matter proven our faith fay
our ( Jecds. Wo have behaved , and are be
having , towards other nations , as in pri
vate life nn honorable man wouid behave
towards his follows.
I.a I in-American It epu I > 11 CM.
The commercial and material progress at
tne twenty Latin- American republics i
worthy of the careful attention of the Con
gress. No other section of the world has
Rhown a greater proportionate development
or its foreign trailo during the last ten
years and none other lias more special
claims on the interests of the United States.
Panama Canal.
The work on the Panama Canal Is bolnj ;
dor.t- with a spet-.l. ctliciency and entire de
votion to duty , which make it model for
all work of the kind. No task of such
magnitude has over before been undertaken
by any natiin : ami no tas-k of the kind has
ever been better performed.
Ocean Mull Lines.
I again recommend the extension of the.
ocean mail act of 1S01 so that satisfactory
American ocean mail lines to South Amer
ica. Asia , the Philippines , and Australasia
may be established.
Hawaii.
I call particular attention to the Terri
tory of Hawaii. The importance of those
islands is apparent , and the need of improv
ing their condition and developing their re
sources is urgent.
The Philippine. * .
Real progress toward self-government Is
beini ; made iu the Philippine islands. The
gathering of a Philippine legislative body
and Philippine assembly marks a process
absolutely new la Asia , not only as regards
Asiatic colonies of European powers , but as
regards Asiatic possessions of other Asiatic
powers , and , indeed , always excepting the
striking and wonderful example afforded hy
the great Empire of Japan , It opens nn
entirely new departure when compared with
anything whicli has happcued among Asiatic
powers which are their own masters. I
hope nn < l Leliovo that these steps mark the
beginning of a course which will continue
tiil the Filipinos become fit to decide for
themselves whether they desire to be an in
dependent nation. All wo can do is to give
them the opportunity to develop the capac
ity for self-government. 1 trust that with
in n generation the time will arrive when
the Philippines can decide for themselves
whether it is well for them to become inde
pendent , or to conti'iuo under the protec
tion of a strong and disinterested power ,
able to guarantee to tiio inlands order at
home and protection from foreign invasion.
Pnrio Itico.
I agin : recommend that American citi
zenship be conferred upon the people of
Porto Hico.
Ctiha.
In Cuba our occupancy will cease in
abo.it two months' time : } he Cubans have
in orderly manner elected their own govern
mental authorities , and the island will be
turned over to them. Our occupation on
this occasion has lasted a little over twa
years , and Cuba has thrivvu and prospered
under it.
The Army.
As regards the army. I can attonUcs t
the fact that while our junior officer.an6
oniistoil men stand very liiqh. the present
system of promotion by seniority results la
bringing into the higher grades many men
of mediocre capacity who have but a short
time to serve. No man should regard It na
his vested right to rise to the highest rank
in the Army any more than in any other
profession. It is a curious and by DO
means'creditable fact that there should b
so often a failure on the part of the public
and its representatives to understand th r
great need , from the standpoint of the ser
vice and the nation , of refusing to promote r
respectable , elderly incompetents. The
hlsriier places should be given to the most
deserving men without regard to seniority ;
at least seniority should be treated as only
ono consideration. In tiy stres.s of modem
industrial competition no business firm could
succeed if those responsible for its manage
ment wore chosen simply on the ground
that they wore the oldest people in fts em
ployment : yet this is the course advocated
as regards the army , and required by law
for all grades except those of general offi
cer. The cavalry arm should be reorgan
ized upon modern lines. This is an arm
in which it is peculiarly necessary that the
field officers should not be old.
Now that the organized militia , the National -
tional C.uard , has been incorporated with
the army as a part of the national forces ,
it behooves the government to do every rea
sonable thing in its power to perfect its
efficiency. There should bo legislation to
provide a complete plan for organizing ths
great body of volunteers behind the regular
army and national guard when war has.
come.
The Xavy.
I approve the recommendations o * tha
general board for the increase of the navy ,
calling especial attention to the need ot
additional destroyers and colliers , and
above all of the four battleships. It la
desirable to complete as soon as possiSla
a squadron of eight battleships of the best
existing type. Nothing better for the navy
from every standpoint has ever occurred
than the cruise of the battle fleet around
the world. The improvement of the ship *
in every way has been extraordinary , and
they have gained far more experience in
battle tactics than they would have gained
if they had stayed in the Atlantic waters.
Tht American people Iiave cause for pro
found gratification , both in view of th
excellent condition of the fleet as shown by
this cruise , and In view of the improvement
the cruise has worked in this already hlglj
condition.
Bis : Electrical Contract.
The directors of the Pennsylvania rail *
road has announced the signing of a $ o >
000,000 contract with the WestinghouSS
Electric and Manufacturing Company for
the complete electrification of the new
terminal station and tunnels under th
Hudson at New York. The system is to
he that of the overhead trolley and not
that of the third rail. The engines will
be of entirely new type and the most pow
erful in existence. They will be built to
pull any train on the grades of the Penn
sylvania from under the river to the street
surface level at a high speed. An en
gine now being tested in Long Island City
has already done more than 90 miles an
hour and is capable of doing 120 miles.
To run the system. 2oO,000 horse-power
will bT required. The contract is to bft
completed in twenty months. The plans
are made for the handling of 1,000 trains
daily , twice as many as will be on the
schedule of the New York Central system.
President-elect Taft accepted an invi
tation to berome the guest of Mr. and
Mrs. Landon A. Thomas of Augusta ,
Ga. The Taft family will arrive at At
lanta Dec. 18 and spend the holiday *
there.
Premier Asquith announced in tiha
House of Commons that because of the
opposition of the Anglican church to ti
education bill the government had
drawn the measure.