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PRESIDENT OUTLINES
ISSUES OF THE DAY
Important Recommendations as to Legislation Made
in Annual Message to Congress Large Part of
Document Devoted to Corporations and Railroad
Rate Legislation Relations of Labor and Capital
Dealt With Fully.
The message of President Roose
velt, read at the first session of the
Fifty-ninth Congress, congratulates
the people on the continued prosper
ity of the nation. The close relation
ship and mutual dependence upon
each other of capital and labor are
pointed out, and the message con
tinues: Corporations.
Tct, while not merely admitting, but In
sisting upon this, it is also tiue that
where there is no governmental restraint
or supervision some of the exceptional
men use their energies not in ways that
are for the common good, hut in ways
which tell against till common good.
The fortune;, amassed thiough corporate
oiganlzation aie now so laige and vest
euch iioivcr in those that wie'd them, as
to make It a matter of necessity to give
to the hoverolgn that is. to the Govern
ment, which represents the people as a
whole some effective power of supervis
ion over their corporate, use. In oider to
insure :t healthy social and industrial life,
every hig corporation should he held re
spoiislhle hj. and he accountable to. some
boveieign strong enough to control Its
conduct. I am in no sense hostile to cor
porations. This Is an age of combination,
and anv effort to prevent all combina
tion will be not only useless, but in the
enil vicious, because of the contempt for
law which the faihue to enforce law in
evitably produces. Vv'c should, moreover,
recognize in coidial and ample fashion the
Immense gcod effected by corporate
agencies In a country such as ours, and
the wealth of intellect, energy, and fidel
ity devoted to their soivice .and there
fore normally to the service of the public.
by their oiliceis and diiectors. The cor
poration has ccme to stay, just as the
trade union has ccme to stay. Each can
do and has done gieat good. Each should
be favored so long as it does good. Hut
each .should be sharply checked where it
acts against law and justice.
The President shows the impossi
bility of the individual states deal
ing successfully with corporation
greed, and the necessity of conferring
power upon the general government
even to the extent of a proper amend
ment to the constitution. He says:
It has been a misfortune that the
national laws on this subject have hither
to been of a negative r piohil.itive rather
than an aihrmative kind, and still more
that thev have in part sought to rno
hibit what could not be- effectively pro
hibited, and have in part in their pro
hibitions confounded what should be
allowed and what should not be allowed.
It is genemlly u-eless to try to prohibit
all restraint on competition, whether chis
restraint be reasonable or unreasonable;
and where it Is not useless It Is
generally hurtful. Events have shown
that it is not possible adequately to
secure the enforcement of any law of this
kind by incessant appeal to the courts.
The Department of Justice has for the
last four eais devoted more attention
to the enforcement of the anti-trust legis
lation than to anything ele. Much has
been accomplished; particularly marked
has been the moral effect of the piosecu
tlons; but it Is increasingly evident that
there will be a very insutlicicnt beneficial
result in the way of economic change.
The successful prosecution of one device
to evade the law immediately develops
another device to accomplish the same
punose. What is needed Is not sweeping
f imbibition of every arrangement, good or
iad. which may tend to restrict competi
tion, but such adequate supet vision and
regulation as will prevent any restriction
of competition fiom being to the detri
ment of the public as well as such
supervision and regu'ation as will pre
vent other abuses in no way connected
with lestriction of competition. Of these
abuses, pet haps the chief, although by
no means the only one. ,is overcapitaliza
tiongenerally itse'f the tesult of dis
honest promotion because of the myriad
evils it brings in Its train: for such over
capitalization often means an intlation
that invites business panic; it always con
ceals the true relation of the profit earned
to the actual capital invested, and It
creates a but den of interest payments
Which is a fertile cause of improper re
duction or in limitation of wages: it
damages the small investor, discourages
thrift, and encourages gambling and spec
ulation: while perhaps woist of a I Is the
trlckiness and dishonesty which It implies '
-TOr harm to morals alld wotse than any
possible harm to material intetests. and
the debauchery of politics and business
by Rieat dishonest corporations js far
worse than any actual materi il evil they
do the public. Until the national govern
ment obtains, in some manner which the t
wisdom of the Congiess may suggest,
pioper control over the big corporations
engaged in intei state commeice that is.
over the great majoi ity of the big cor
porations it w ill lo impossible to deal
adequately with these evils. '
I am well awaie of tne difficulties of
the legislation that I am suggesting, and
of the need of temperate and cautious
action in securing it. I should emphatic
ally protest against improper radical or
hasty action. The first thing to do is
to deal with the great corporations en
paged in the business of interstate trans
Jiortation. As I said in my message of
)ec. C last, the immediate and most
pressing need, so far as legislation is
concerned, is the enactment into law of
some scheme to secure to the agents of
the government such supervision and
regulation of the rates cnargcu uy the
railroads of the ccuntrv engaged in Inter
state traffic as si'all summarily and
effectively prevent the imposition of un
just or unreasonable rates. It must in
clude putting a complete stop to rebates
in every shape and form. This power to
regulate lates. like all similar powers
over the business world, should be exer
cised with moderation, caution, and self
restraint; but it should exist, so that it
can be effectively exercised when the
need arises.
The first consideration to be kept in
mind is that the power should be affirm
ative and should be given to some ad
ministrative body created by the Congress.
If given to the present Interstate Com
merce commission or to a reorganized
Interstate Commerce commission, such
commission should be made unequivocally
administrative. I do not believe in the
government Interfering with private busi
ness more than is necessary. I do not
believe in the government undertaking
any work which can with propriety be
left in private hands. Rut neither do I
believe in the government flinching from
ovei seeing any work when it becomes
evident that abuses are sure to obtain
theiein unless there is governmental
supervision. It is not my province to
indicate the exact terms of the law which
should be enacted; but I cill the attention
of the Congress to ceitain existing con
ditions with which It is deirab'e to deal.
In m judgment the most important pro
vision which such law should contain
is that ennfening upon some competent
administrative boely the power to decide,
upon the case being brought before it.
whether a given rate prescribed by a rail
road is reasonatle ard iu.t. and if it is
found to be unreasonable and unjust,
then, after full investigation of the com
plaint, to prescribe the limit of jat
fcejond which it shall rnt be lawful to go
the maximum reasonable rate, as It is
commonly cal ed this decision to go into
effect within a reasonable time and to
obtain fiom thence onwaid. subject to
review by the courts it sometimes hap
pens at present, not that a rate is too
high but that a favored shipper is given
too low a rate. In such case the commis
sion would have the right to fix this
already estab'ished minimum rate as
the rmximum and it would need
only one or two such decisions
by the commission to cure railroad com
panies of the practice of giving improper
minimum rates. I call your attention to
the fact that my proposal is not to give
the commission power to initiate or
originate rates generally. but to regulate
a rate already fixed or originated by the
roads, upon complaint and after investi
gation. A heavy nenalty should be ex
acted from any corporation which fails
to respect an order of the commission. I
regard this power to establish a maximum
rate as being essential to any scheme of
real reform In the matter of railway
regulation. The first necessity is to se
cure it: and unless it is granted to the
commission there is little use in touch
ing the subject at all.
Continuing, the President earnestly
disclaims any spirit of hostility to
the railroads, pointing out the bene
fit to be derived by the fair-dealing
Giads in the even-handed administra
te of justice. In this both the hon
est railroad man and the honest ship
per alike would be benefited. Ending
the subject, the President says:
All private-car lines, industrial roads,
refrigerator charges, and the like should
be expressly put under the supervision
of the Interstate Commerce commission or
some similar body so far as rates, and
agreements practically affecting rates, are
concerned. The private-car owners and
the owners of industrial railroads are
entitled to a fair and reasonable compen
sation on their investment, but neither
private cars nor industrial railroads nor
spur tracks should be utilized as devices
for securing preferential rates. A rebate
in icing charges, or in mileage, or in a
division of the rate for refrigerating
charges is just as pernicious as a rebate
in any other way. Xo lower rate should
apply on goods imported than actually
obtains to domestic goods from the
American seaboard to destination except
in cases where water competition is the
controlling influence. There should be
publicity of the accounts of common car
riers; 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 inspection of the government. Only
in this way can violations or evasions of
the law be suiely detected. A sjstem of
examination of railroad accounts should
be provided similar to that now conducted
into the national banks by the bank
examiners; a few first-class railroad ac
countants, if they had pioper direction
and proper authority to inspect books
and papers, could accomplish much in
preventing willful violations of the law.
It would not be necessary for them to
examine into the accounts of any railroad
unless for good reasons they were direct
ed to do so bv the Interstate Commerce
commission. It is greatly to be desired
that some way might be found by which
an agieement as to transportation with
in a state intended to operate as a fraud
upon the federal interstate commerce
laws could be brought under the juris
diction of the federal authorities. At
present it occuis that large shipments
of interstate traffic are control'ed by con
cessions on purely state business, which
of course amounts to an evasion of the
law. The commission should have power
to enforce fair treatment by the great
trunk lines of lateral and branch lines.
I urge upon the Congress the need for
expeditious action by the Interstate Com
merce commission in all these matters,
whether in regulating rates for transpor
tation or for storing or for handling
property or commodities in transit. The
history of the cases litigated under the
present commeice act shows that its
efficiency has been to a gieat degree
destioyed by the weapon of delay, almost
the most formidable weapon in the hands
of those whose purpose it is to violate
the law.
The question of transportation lies at
the root of all industrial success, and the
revolution in transportation which has
taken place during the last half century
has been the most Important factor in the
growth of the new industrial conditions.
Most emphatically we do not wish to see
the man of great talents refused the re
ward for his talents. Still less do we wish
to see him penalized; but we do desire to
see the system of railroad transportation
so handled that the strong man shall be
given no advantage over the weak man.
We wish to insure as fair treatment for
the small town as for the big city, for the
small shipper as for the big shipper. In
the old days the highway of commerce,
whether by water or by a road on land,
was open to all; it belonged to the public
and the traffic along it was fiee. At
present the railway is this highway, and
we must do our best to see that it is kept
open to all on equal terms. Unlike the
old highway it is a very difficult and
complex thing to manage, and it is far
better that it should be managed by
private individuals than by the govern
ment. But it can only be so managed on
condition that justice is done the public.
IP Is because, in my judgment, public
ownership of railroads Is highly undesir
able and would probably in this country
entail far-reaching disaster, that I wish
to see such supervision and regulation
of them in the interest of the public as
will make it evident that there is no need
for public ownership. The opponents of
government regulation dwell upon the
difficulties to be encountered and the
Intricate and Involved nature of the prob
lem. Their contention is true. It is a
complicated and delicate problem, and all
kinds of difficulties are sure to arise in
connection with any plan of solution,
while no plan will bring all the benefits
hoped for by Its more optimistic adher
ents. Moreover, under any healthy plan,
the benefits will develop gradually and not
rapidly, finally, we must clearly under
stand that the public servants who are
to do this pecu'iarly responsible and
delicate work must themselves be of the
high".st type both as regards integrity and
efficiency. They must be well paid, for
otherwise able men can not In the long
run be secured: and they must possess
a lofty probity which will revolt as quick
ly at the thought of pandering to any
gust of popular prejudice against rich
men as the thought of anything even
remotely resembling subserv iency to rich
men. Hut while I fully admit the diffi
culties in the way, I do not for a moment
admit that these difficulties warrant us
in ,stoppir.g in our effort to secure a wise
and just system. They should have no
other effect than to spur us on to the
exercise of the resolution, the even-handed
justice, and the fertility of resource,
which we like to think of as typica'ly
American, and which will in the end
achieve good results in this as in other
fields of activity. The task is a great
one and underlies the task of dealing
with the whole industrial problem. But
the fact that it is a great problem does
not warrant us in shrinking from the
attempt to solve it. At present we face
sucn utter lacK or supervision, sucn
freedom from the restraints of law, that
excellent men have often been literally
forced into doing what they deplored
because otherwise they were left at the
mercy of unscrupulous competitors. To
rail at and assail the men who have done
as they best could under the conditions
accomplishes little. What we need to do
is to develop an orderly system; and
such a system can only come through
the gradually Increased exercise of the
right of efficient government control.
The necessity for safety appliances
on railroads, recommended in the
President's message to the last Con
gress, is emphasized, together with
the necessity for a law regulating the
hours of labor of railroad men.
On the labor question, the mes
sage says:
There has been demand for depriving
couits of the power to issue injunctions
in labor disputes. Such special limitation
of the equity powers of our courts wou!d
be most unwise. It is true that some
judges have misused this power; but this
does not justify a denial of the power
any moie than an improper exercise of
the power to call a strike by a labor
bader would justify the denial of the right
to strike. The remedy is to regulate the
piocedure by requiring the judge to give
due notice to the adverse parties before
granting the writ, the hearing to be ex
parte if the adverse party does not ap
pear at the time and place ordered.
What is due notice must depend upon the
facts of the case; it should not be ued
as a pretext to permit violation of law,
or the jeopardizing of life or properly.
Of course, this would not authorize the
issuing ef a restraining order or injunc
tion in any case in which it is not already
authorized by existing law.
I renew the recommendation I made in
my last annual message for an investiga
tion by the Department of Commerce and
Labor of general labor conditions, especial
attention to be paid to the conditions of
child labor and child-labor legislation in
the several states. Such an investigation
should take into account the various prob
lems with which the question of child
labor is connected. It is true that these
problems can be actually met In most
cases only by the states themselves, but
it would be well for the nation to endeav
or to secure and publish comprehensive
information as to the conditions of the
labor of children in the different states,
so as to spur up those that are behind
hand, and to secure approximately uni
form legislation of a high character
among the several states. In such a
Republic as ours the one thing that we
can not afford to neglect is the problem
of turning out decent citizens. The
future of the nation depends upon the
citizenship of the generations to come;
the children of to-day are those who to
morrow will shape the destiny of our land,
and we can not afford to neglect them.
The legislature of Colorado has recom
mended that the national government
provide some general measure for the
protection from abuse of children and
dumb animals throughout th United
States. I lay i.ie matter before yon for
what I trust will be your favorable con
sideration. In any great labor disturbance not only
are employer and employe interested, but
also a third party the general public.
Every considerable labor difficulty In
which interstate commerce is involved
should be investigated by the government
and the facts officially reported to the
oublic
The question of securing a healthy, self
respecting, and mutually sympathetic at
titude as between emp'oyer and employe,
capitalist and wage-worker, is a difficult
one. AH phases of the labor problem
prove difficult when approached. But the
underlying principles, the root principles,
in accordance with which the problem
must be solved are entirely simple. We
can get justice and right dealing only if
We must face accomplished facts, and the
principle of treating a man on his worth
as a man rather than with reference to
his social position, his occupation, or the
class to which he belongs. There are
selfish and brutal men in all ranks of life.
If they are capitalists their selfishness
and brutalitv may take the form of hard
indifference to suffering, greedy disregard
of every moral restraint which Interferes
with the accumulation of wealth, and
cold-blooded exploitation of the weak; or.
if they are laborers, the form of laziness,
of sullen envy of the more fortunate, and
of willingness to perform deeds of mur
derous violence. Such conduct Is just
as reprehensible In one case as In the
other, and all honest and farseelng men
should join In warring against it wherever
it becomes manifest. Individual capital
ist and Individual wage-worker, corpora
tion and union, are alike entitled to the
protection of the law, and must alike
obey the law. Moreover, in addition to
mere obedience to the law. each man.
If he be a really good citizen, must show
broad sympathy for his neighbor and
genuine desire to look at any question
arising between them from the standpoint
of that neighbor no les3 than from his
own: and to this end it Is essential that
capitalist and wage-worker should con
sult freely one with the other, should each
strive to bring closer the day when both
shall realize that they are properly part
ners and not enemies. To approach the
questions which inevitably arise between
them solely from the standpoint which
treats each side in the mass as the en
cmv of the other side in the mass is both
wicked and foolish. In the past the most
direful among the influences which have
brought about the downfall of republics
has ever been the growth of the class
spirit, the growth of the spirit which
tends to make a man subordinate the wel
fare of the public as a whole to the wel
fare of the particular class to which he
belongs. This inevitably brings about a
tendancy to treat each man not on his
merits as an individual, but on his posi
tion as belonging to a certain class in
the community. If such a spirit grows up
in this Republic it will ultimately prove
fatal to us, as In the -ast it has proved
fatal to every community in which it has
become dominant. Unless w;e .con
tinue to keep a quick and lively
sense of the great .fundamental
truth that our concern is with the individual
worth of the Individual man, this govern
ment cannot permanently hold the place
which it has achieved among the nations. The
vital lines of cleavage among our people do
not correspond, and indeed run at right an
gles to, the lines of cleavage which divide
occupation from occupation, which divide
wage-workers from capitalists, farmers from
bankers, men of small means from men of
large means, men who live in the towns from
men who live in the country: for the vital
line of cleavage is the line which divides the
honest man who tries to do well by his
neighbor from the dishonest man who does ill
by his neighbor. In o'her words, the stand
ard we shoulJ establish is the standard
of conduct, not the standard of occupation,
of means or of social position. It is the
man's moral quality, his attitude toward the
great questions which concern all humanity,
his cleanlinegs of life, his power to do his
duty toward himself and toward others, which
really count; and if we substitute for the
standard of personal judgment which treats
each man according to his merits, another
standard in accordance with which all men
o. one class are favored and all men of an
other class discriminated against, we shall do
irreparable damage to the body politic. I be
lieve that our people are too sane, too self
respecting, too fit for self-government, ever
to adopt such an attitude. This government
is not and never shall be government by a
plutocracy. This government is not and
never shall be government by a mob. It
shall continue to be in the future what it
has been In the past, a government based on
the theory that each man. rich or poor, is to
ue treated simply and solely on his worth as
a man, that ell his personal and property
rights are to be safeguarded, and that he Is
neither to wrong others nor to suffer wrong
from others.
Insurance.
The great Insurance companies afford strik
ing examples of corporations whose business
has extended so lar beyond the jurisdiction of
the states which created them as to pre
clude strict enforcement of supervision and
regulation by the parent States. In my last
annual message I recommended "that the
Congress carefully consider whether the pow
er of the Bureau of Corporations cannot con
stitutionally be extended to cover interstate
transactions In Insurance." Recent events
have emphasized the importance of an early
and exhaustive consideration of this ques
tion, to see whether it is not possible to fur
nish better safeguards than the several
states have been able to furnish against cor
ruption of the flagrant kind which has been
exposed.
The Revenues.
Touching the question of tariff and
revenue .the views of the President are
as follows:
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
less for grave reason. It is not possible to
lay down any general rule by which to de
termine the moment when the reasons for
will outweigh (he reasons against such a
cuange. Much must depend, not merely on
the needs, but on the desires, of the people
as a whole; for needs and desires are not nec
essarily identical. Of course no change can
be made on lines beneficial to, or desired
by. one section of one state only. There must
be something like a general agreement among
the citizens of the several states, as repre
sented in the Congress, that the change is
needed and desired in the interest of the
people as a whole; and there should then be
a sincere. Intelligent, and disinterested effort
to make it in such shape as will combine, so
far as possible, the maximum of good to the
people at large with the minimum of neces
sary disregard for the special interests of
localities or classes. But in time of peace
the revenue must on the average, taking
a series of years together, equal the expendi
tures or else the revenues must be Increased.
Last year there was a deficit. Unless our ex
penditures can be kept within the revenues
then our revenue laws must bo readjusted.
It is as yet too early to attempt to outline
what shape such a readjustment should take,
for it is as yet too early to say whether
there will be need for it. It should be con
sidered whether it is not desirable that the
tariff laws should provide for applying as
against or In favor of any other nation maxi
mum and minimum tariff rates established by
the Congress, so as to secure a certain reci
procity of treatment between other nations
and ourselves. Having in view even larger
considerations of policy than those of a
purely economic nature, it would, in my
judgment, be well to endeavor to bring about
closer commercial connections with the other
people of this continent. I am happy to be
able to announce to you that Russia now
treats us on the most-favored-nation basis.
Economy in Expenditures.
The necessity for economy and a
rigid scrutiny of appropriations is
made manifest, with this proviso:
Yet. in speaking of economy. I must in no
wise be understood as advocating the false
economy which is in the end the worst ex
travagance. To cut down on the navy, for
instance, would be a crime against the na
tion. To fail to push forward all work on
t'e Panama canal would be as great a folly.
Currency.
The currency question i3 dealt with
as follows:
Every consideration of prudence demands
the addition of the element of elasticity to
our currency system. The evil does not con
sist in an adequate volume of money, but in
the rigidity of this volume, which docs not
respond as it should to the varying needs of
communities and of seasons. Inflation must
be avoided, but some provision should be
nrade 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 Isgitinrate business. At present the Treas
ury department is at irregularly recurring in
tervals obliged, in the interest of the busi
ness world that is, in the interests of the
American public to try to avert financial
crises by providing a remedy which should
be provided by Congressional action.
Federal Elections.
On the subject of federal elections,
the President says:
"The power of the government to protect
the Integrity of the elections of its own of
ficials is inherent and has been recognized
and affirmed by repeated declarations of the
Supreme court. There is no enemy of free
government more dangerous and none so in
sidious as the corruption of the electorate.
No one defends or excuses corruption, and
it would seem to follow that none would op
pose vigorous measures to eradicate it. I
recommend the enactment of a law directed
against bribery and corruption in federal
elections. The details of such a law may be
safely left to the wise discretion of the Con
gress, but it should go as fa as under the
constitution it is possible to go. and should
include severe penalties against him who
gives or receives a bribe intended te influ
ence his act or opinion as an elector: anfl
provisions fcr the publication not only of
the expenditures for nominations and elec
tions of all candidates, but also of all con
tributions received and expenditures made by
political committees."
I desire to repeat this recommendation. In
political campaigns In a country as largo
and populous as ours It Is inevitable that
there should be much expense of an entirely
leg'timate kind. This, of course, means that
many contributions, and some of them of
laree size, must be made, and. as a matter
of fact, in any big political contest such con
tributions are always mads to both sides. It
is entirely proper both to give and receive
them, unless there Is an improper motive
connected with either gift or reception. If
they are extorted by any kind of pressure
or promise, express or implied, direct or in
direct, in the way of favor or immunity, then
the giving or receiving becomes not only im
proper but criminal. It will undoubtedly be
difficult as a matter of practical detail to
shape an act which shall guard with reason
able certainty against such misconduct: but
If it is possible to secure by law the full and
verified publication in detail of all the sums
contributed to and expended by the candi
dates or committees of any political parties
the result cannot but be wholesome. All con
tributions by corporations to any political
committee or for any political purpose should
be forbidden by law; directors should not
be permitted to use stockholders' money for
such purposes; and, moreover, a prohibition
of this kind would be. as far as it went, an
effective method of stopping the evils aimed
at In corrupt practices acts. Not only should
both the national and the several state legis
latures forbid any officer of a corporation
from using the money of the corporation In
or about any election, but they should also
forbid such use of money In connections with
any legislation save by the employment of
counsel in public manner for distinctly legal
services.
The position of the United States
with regard to The Hague confer
ence is clearly shown, the desire of
the United States for continuance of
the world's peace being made appar
ent and the necessity for strength to
maintain a righteous position insisted
upon.
Elaborating on the many reasons ex
isting for the maintenance of the
Monroe doctrine, the message points
out how the interests of our southern
neighbors are identified with our own
and the impossibility of the United
States using the doctrine as a means
for aggrandizement. The help af
forded Santo Domingo in her escape
from the importunities of foreign cred
itors and rapacious revolutionists at
home is shown as a case in point.
Army and Navy.
The President insists upon the ne
cessity for a well trained body of sol
diers as a nucleus for an army in
time of trouble, and that maneuvers
of a practical kind should be under
taken to adapt the forces to actual
conditions of warfare. An increase in
the artillery force so that the coast
fortifications can be adequately man
ned is also recommended, with lib
eral appropriations for the building
and bringing to a state of perfection
of the United States navy. .
Naturalization Laws.
Of our present naturalization laws,
the message says:
During the past year evidence has accu
mulated te confirm the expressions con
tained in my last two annual messages as
to the Importance of revising by appropriate
legislation our system of naturalizing aliens.
I appointed last March a commission to make
a careful examination of our naturalizing
laws, and to suggest appropriate measures
to avoid the notorious abuses resulting from
the improvident or unlawful granting of cit
izenship. This commission, composed of an
officer of the Department of State, of the
Department of Justice, and of the Depart
ment of Commerce and Labor, has dis
charged the duty imposed upon it, and has
submitted a report, which will be transmitted
to the Congress for its consideration, and, I
hope, for its favorable action.
The distinguishing recommendations of the
commission are:
First. A federal bureau of naturalization,
to be established in the Department of Com
merce and Labor, to supervise the adminis
tration of the naturalization laws and to re
ceive returns of naturalizations pending and
accomplished.
Second. Uniformity of naturalization cer
tificates, fees to be charged and procedure.
Third. More exacting qualifications for cit
izenship. Fourth. The preliminary declaration of In
tention to be abolished and no alien to be
naturalized until at least ninety days after
the filiug of his petition.
Fifth. Jurisdiction to naturalize aliens
to be confined to United States district courts
and to such State courts as have jurisdiction
in civil actions in which the amount in con
troversy is unlimited: in cities of over 100.
000 inhabitants the United States district
courts to have exclusive jurisdiction in the
naturalization of the alien residents of such
cities.
Criminal Laws.
Legislation to make our criminal
laws more effective and to provide ad
equate punishment for breaches of
trust by public officals is urged, and
the promise made that all the power
of the administration shall be devoted
to the detection and punishment of
such wrongdoers.
The President continues:
Once 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 tit these laws
to actual present conditions. The honest dis
posal and right use of the remaining public
lands is of fundamental Importance. The
Iniquitous methods by which the monopoliz
ing of the public lands is being brought
about under the present laws are becoming
more generally known, but the existing laws
do not furnish effective remedies. The rec
ommendations of the Public Lands commis
sion upon this subject are wise and should
be given effect.
The policy of creating forest re
serves is shown to have met popular
approval, as has the initiation of for
est reserves.
Merchant Marine.
On the subject of the merchant ma
rine, the message says:
To the spread of our trade in peace and
the defense of our flag in war a great and
prosperous merchant marine is indispensable.
We should have ships of our own and sea
men of our own to convey our goods to neu
tral markets, and in case of need to rein
force our battle line. It cannot but be a
source of regret and uneasiness to us that
the lines of communication with our sister
republics of South America should be chief
ly under foreign control. It is not a good
thing that American merchants and manu
facturers should have to send their goods
and letters to South America via Europe if
they wish security and dispatch. Even on
the Pacific, where our ships have held their
own better than on the Atlantic, our mer
chant flag Is now threatened through the lib
eral aid bestowed by other governments on
their own steam lines. I ask your earnest
consideration of the report with which the
Merchant Marine commission has followed
its long and careful Inquiry.
Praise of the good work of the pen
sion bureau with an acknowledge
ment of the debt the country owes
to the veterans of the Civil war fol
lows. Immigration.
Continuing, the message shows
clearly the necessity for checking the
steamship companies in their activity
in promoting the importation of unde
sirable immigrants, while pointing
out how warmly welcome is the man
of good health and moral character,
who bids fair to add value to the
community. An increase in the strin
gency of the immigration law is advo
cated. On the subject of Chinese immigra
tion the message urges the necessity
for courteous treatment of the Chi
nese students, business and profes
sional men who visit this country,
while asserting unalterable opposition
to the admission of coolies or skilled
or unskilled labor from China.
Civil Service.
Some paragraphs of the message
are devoted to an elucidation of the
workings of the civil service law. The
assertion Is made that the effects of
the law have been excellent.
A recommendation is made for in
creased appropriations and payment
of more attention to the needs of the
Indians.
The Ph:"j.pines.
Despite the series of disasters
which have afflicted the Philippine
islands since the American occupa
tion the rinderpest, the locust's, and
the drought conditions are shown to
have steadily improved and tranquil
ity is now almost universal. The Fil
ipinos are beginning to realize the
benefits of education, and a school at
tendance of 70 per cent is the result
Referring to trade between the islands
and the United States, the message
says:
A statute In force, enacted April 13. 1904.
suspeiids the operation of the cuastwi.ie laws
of toe United States upon the trade between
the Philippine Island and the United States
until July 1. 19u. I earnestly recommend that
this suspension be postponed until July 1. 1909.
I think it of doubtful utility to apply the coast
wise laws to the trade between the United
States and the Philippines tinder any circum
stances, because I am convlncoU that It will
do no good whatever to American bottoms, and
will only Interfere and be an obstacle to the
trade between the Philippine and the United
States; but If the coastwise law must be thus
applied, certainly It ought not to bare effect
until free trade is eujoyed between tbe peo
ple of tbe United States ami the people of tbe
Philippine Islands in their respectlTe products.
I do not anticipate tat free trade between
the Islands and tbe United States will produce
revolution in the sugar and tobacco produc
tion of tbe Philippine islands. So primitive
are tbe methods of agriculture In tbe Philip
pine islands, so slow is capital In going to tbe
islands, so many difficulties surround a large
agricultural enterprise in the Islands, that It
will be many, many years before the products
of those islands will huTe any effect whatever
upon the markets of tbe United States. The
problem of labor is atso a formidable one with
the sugar and tobacco producers in the islands.
The best friend of the KUIiliu in-ople and the
jM-ople themselves are utterly o;ped to the
admission of Chinese coolie I ilwr. Hence the
only solution is the training of Filipino labor,
and tbis will take a long time. The enactment
of a law by the Congress of the United States
making provision .for free trade N-tweeii the
inlands and the United States, however, will be
of great Importance from a political and senti
mental standpoint: and while Its actual bene
fit ha doubtles been exaggerated by the peo
ple of the Islands, they will accept this meas
ure of Justice as an Indication that the people
of the United States are anxious to aid the peo
ple of the Philippine Islands In every way.
nnd especially In the agricultural development
of their Ar hipelago. It will aid the Kl I linos
without Injnri'ig Interests In America.
The President urges that immediate
steps be taken for the fortification of
Hawaii and the development of the
territory on traditional American
lines. Admission of Chinese labor
under statute restrictions is con
demned as leading to a status of ser
vility which, the message declares,
can never again be tolerated on Amer
ican soil. The President says: "Our
aim must be to develop the territory
on the same basis of stable citizen
ship as exists on this continent."
Porto Rico.
Dealing with the affairs of Porto
Rco. the President says:
I earnestly advocate the adoption of legisla
tion which will explicitly confer American citl
enshlp on all citizens of Porto KIco. There Is.
in my Judirmi nt. no excuse for failure to do
this. The harbor of S in Juan should be dredged
and improved. The expen-cs of the Keihr.il
court of Porto KIco should be met from the
Federal treasury, and not from the Porto Itican
treasury. The elections In Porto Ilicu should
take piece every four years, and the legisla
ture should meet in session every two years.
The present form of government in Porto I.lc-o.
which provides for the itppointcieut by the
President of the members of the executive coun
cil or upr house of the legislature, has proved
satisfactory and has .umpired consilience in
property owners and Investors. I do not deem
it advisable at the present time to change thlt
form in any material feature. The problem
and needs of the Island are Industrial and com
mercial rather than political.
Discussing the needs of Alaska, the
President recommends that the terri
tory be given an elective delegate
who will be able to speak with au
thority on the needs of that section
of our country. The message con
cludes: Admission to Statehood.
I recommend that Indias Te-ritory and Okla
homa be admitted as one State and that Net
Mexico and Arizona be admitted as one Stale.
There Is no obligation upuu Us to treat ter
ritorial subdivisions, width are milters of con
venience only, as binding us n the ijiiestion of
admission to statehood. Nothing has taken up
more time In the I'oiigress duri ig the pt few
years than tbe question a m the statehood to
lie granted to the four Territories above men
tioned, and after careful coi.sideratlon of all
that has been developed in the discussions of
the ipiest'on I recommend that they be Im
mediately admitted as two Stater. There is
no justification for further d-lay: m the ad
visability of making the fiajr Territories Into
two States has been dearly established.
In some of the Te r I lories the legislative as
semblies issue licenses for gambling. The
Congress should by law forbid tbis practice,
the harmful results of which arc envious at
glance.
The Panama Canal.
The treaty between the United States and
the Republic of Panama, under which the
construction of the Panama canal was made
possible, went Into effect 'villi its ratllicr.tlou
tiy the United States Senate on Feb. "M. VH.
The canal proierties of the French Canl Com
uny were transferred to the United States on
April 2:5. 11) H. on payment of JfliJ.UOn.Wi to
that company. On April 1. l'MS. the Commis
sion was reorganized, and It now consists of
Theodore P. Shouts, chairman. Charles K. Ma
goon. Itcnjnuiiu M. Harrod. Rear-Admiral Mor
decal T. Kudicott. ltrlg.-Geu. Peter C. Halus.
and Col. Oswald H. Krnst. John K. Stevens
was appointed thief engineer on July 1 last.
Active work in canal construction, mainly pre
paratory, has l en in progress for bss than a
vear and a half. During that period two points
about the canal have ceaed to be open to de
bate. First, the question of route; the canal
will be built on the lthmti of Panama. Sec
ond, the question of feasibility; there are no
ihyslcal obstacles on this route that American
engineering skill will not be able to overcome
without serious ilithculty. or that will prevent
the completion of the canal within a reason
able time and at a reasonable cost. This is
virtually the unanimous testimony of the en
gineers who have investigated the matter for
the government.
The jmlnt which Tmalns unsettled Is the
question of typ. whether the canal shall lie
one of several locks above sea level, or at sea
level with a single tide lock. Oi this point I
hoiie to lay before tbe Congress at an e-rly i!aj
the findings of the Advisory Board of Ameri
can and Kuropean Engineers, that st my invi
tation have been considering the subject, to
gether with the report of the commission there
on; and such comments thereon or recommenda
tions lu reference thereto as may seem neces
sary. What Is needed now and without delay Is an
appropriation by the Congress to meet the cur
rent and accruing expenses of the commission.
The first appropriation of ?1(.iki().lm. out of
the $i:"j dhu.imnj autho-lzed by the Snootier act.
was made three years ago. It Is nearly es
hsusted. There Is barelj enough of It remain
ing to carry the comml-slon to the end of the
jear. Unless the Congress shall appropriate
before that time all w k must cease. To ar
rest progress for any leiigth of time now. when
matters are advancing so satisfactorily, would
lie deplorable. Th-re will lie no money with
which to meet a.i-n!l obligations and none
with which to mnt MIL coming due for mi
terlals and supplies; ami there will be demoral
ization of the forces, here and on the Uthmus.
now working so harmor.tnu-.Iy anil effectively,
if there Is delay In granting an emergency ap
oronrlatlon. Kstlcintts of the an omit neces
sary will lie found In the aicompanvln re
jorts of the Sec etary of War i-ud the com
L'issiou. Department of State.
Neither at home nor ab oad Is there a nf
ficient working force to do the business properly.
In many respects the system which was ade
quate to the work of twenty-five, or even ten.
rars ago. Is Inadequate now. and should be
ibiingid. hir consular force should ! rlsssl
ti.'d "and apisitntments hoiiM be made to the
several clasM-s. with authority t.) the Kticii
tlve to assign the meiiln-rs of each class to
dutv at such (sists as tbe l.iteret of th- ser
vice require. Instead ef the appointments U
lug made as at present to specified Posts.
There should be an adequate Inspection ser
vice, so that the Department mar bp able to
Inform itself how the business of each consu
late Is being done. Instead of depending upon
casual jrlvate Information or minor. The fee
svstem should be entlrelr almlbhed. and a due
equivalent made In salary to the oU cers who
now- eke out their subsistence by means of
fees Sufficient provl-ions should be made for
a clerical force to every consulate, composed
entirely of Ame-lcans. In-tead of the In
sutficient provision now made, which compels
the employment of great numbers of citizens
of foreign countries whose services can be ob
tained for less money. At a large rsrt f n
eonulates the office quarters and tbe clrbal
fo-ce are Inadequate to the performance of the
onerous duties Imposed by the recent pruv!sint
of our Immigration laws as well as by our In
creasing trade.
s-ultable p ovislon should bo made for the ex
pense f keeping our diplomatic oScers more
fullv informed of w-l.at Is being done from
day to day In the progresi of our diplomatic
affairs with other countries. The lack of uh
In'o-matlon. caused by rnnr5c-Ient approp-ia
tlo-is available for able tolls and for clerical
and messenger service, frequently puts our
othcers at a great disadvantage and detracts
f.-oin their usefulness. The salnry list should be
readjusted. It does not now eorrespond either
n ti,- imDortance of tbe servlc-e to be rendered
ami the degrees of ability and experience re
quired In the different positions, or to ths
differences in cue cose oi nin. ia
lbs salaries axe quite laadtquat.
SENATORMILLARD
WHERE HE STANDS QN THE RATE
QUESTION.
INTERVIEWS m PRESIDENT
Promises to Stand by Roosevelt on
Much Discussed Question Repre
sentative Hinshaw of Nebraska Also
Sees the President.
WASHINGTON. The Evening Star
has the following on Senator Millard's
rate position:
"The attitude of Senator Millard of
Nebraska, who is a member of the sen
ate committee on interstate com
merce, has been one of doubt for some
time, but there is strong belief that
Senator Millard has pledged himself
to the president, voluntarily, to sup
port a measure in keeping with the
president's views. Senator Millard
saw the president a few days ago and
had a conference with him. The Ne
braska senator is a candidate for re
election and there would he absolute
ly no chance in the world of his com
ing back to the senate if he should go
astray on the rate proposition. The
Nebraska republicans last year started
the habit of indorsing candidates for
United States senator in their state
conventions. This was done in the
case of Senator Burkett. The next
state convention, to be held next sum
mer, probably will make an indorse
ment for a successor to Senator Mil
lard. Even in case he stands by the
administration on the railroad rate
proposition Senator Millard will have
a hard time coming to the senate
again. Among those who will oppose
him are Norris Brown of Kearney,
present attorney general of the state;
Ross Hammond, a well known editor
of Fremont, and Gurdon W. Wattles,
a prominent banker and citizen of
Omaha."
Hinshaw Sees President.
Representative Hinshaw saw the
president for a few moments. On
emerging from the cabinet room Mr.
Hinshaw said it was his positive con
viction that a rate bill in strict accord
with the president's policy would pass
both bodies. "The people of Nebraska
are unanimous in support of the presi
dent's position as to rate legislation."
Senator Dolliver of Iowa, a member
of the committee on interstate com
merce, talked with the president brief
ly. After his interview the senator
remarked when asked about rate leg
islation: "We are now moving along
toward a practically unanimous stand
for the president's policy."
President Silent Until Message.
It developed today that the subject
under discussion at the White house
conference which was participated in
by the president. Secretaries Root,
Taft and Bonaparte, Senator Knox and
Commissioner of Corporations Gar
field, was proposed legislation affect
ing freight rates. It has been posi
tively decided that there shall be no
further expression of the administra
tion's views on this subject pending
the publication of the president's mes
sage to congress in which it is treated
at great length.
It was also learned that there has
been no change whatever in the presi
dent's view as to the best form of rate
legislation. In othe- words, his views
have not been affected by any of the
propositions recently made public.
SUBMITS A COPY
OF THE RATE BILL
WASHINGTON The senate com
mittee on interstate commerce receiv
ed a copy of the rate bill prepared
by the interstate commerce commis
sion to be submitted to congress for
amendment to the interstate com
merce law. The members of the com
mittee who were present at the ses
sion read the bill, but took no action
and adjourned until Friday. The bill
is very extensive, covering twenty
seven pages of typewritten sheets, and
it proposes to amend very materially
the present law.
LORD ROBERTS HAS RESIGNED.
Due to Differences with Premier. Bal
four. LONDON It is officially announced
that Field Marshal Lord Roberts has
resigned from the committee for im
perial defense in order to take up the
organization throughout the country
of work connected with his proposals
for universal military training. Vis
count Eslier. deputy governor of
Windsor castle, and Lieutenant Gen
eral Sir John French, commander of
the First army corps at Aldershot.
have been requested to act on the com
mittee for imperial defense.
The resignation of Lord Roberts is
understood to have been to a great ex
tent due to differences of opinion be
tween himself and other members of
the committee on military policy, and
especiallj to the fact that Premier Bal
four rejected his advice regarding the
strength of the forces required for the
defense of India. Lord Roberts, by re
signing, renounces a salary of ?2,Q00
yearly.
IOWA INSURANCE LAW
UPHELD BY COURTS
WASHINGTON The Iowa state
law prohibiting insurance companies
from entering into agreements fixing
insurance rates is declared constitu
tional by a decision of the supreme
court of the United States in the case
of Beryl F. Carroll. Iowa state audi
tor, against the Greenwich Insurance
company, et al. The decision reverses
the decision of the United States dis
trict court of southern Iowa.
Carnegie is Finding Fault.
SYRACUSE, N. Y. In a letter to
the Syracuse library board congratu
lating tbe city upon completion of its
new $:JOO.O0O library building, Andrew
Carnegie, the donor, takes occasion to
criticise the commission that erected
the building for the expenditure of
118,000, or nearly 10 per cent of the
cost of the building, for inspectors'
fees, attorneys' fees and architects'
fees. Mr. Carnegie says he never
heard of such things and knows noth
ing as to attorneys in connection with
the building of his libraries.
THE GUARDS FAIL.
Troops Protecting Imperial Family
Show Discontent.
ST. PETERSBURG The most
alarming indication of the spread of
the disaffection in the army, extend
ing even to regiments near the person
of the emperor, was given in the ar
rest at Tsarskoe Selo of a number of
soldiers belonging to the Yellow Cuir
assiers of the Guard, the Hussars of
the Guard and the Life Guard Rille
ment for presenting a series of peti
tions, including one against the use of
troops for police purposes.
The regiments in question are thoso
which have been specially selected by
General Trepoff to guard the emperor
and his family. They have been
counted upon as being loyal to the
last, ready even to be torn to pieces
in defense of his majesty, like the
Swiss guards of Louis XVI. Their ar
rest, however, although not for open
sedition, shows how the leaven of dis
content is working even within the
precincts of the imperial park at Tsar
skoe Selo.
The incident gave rise to most
alarming rumors in St. Petersburg, in
cluding one to the effect that the em
peror actually had been attacked anil
that a grand duke had been wounded
whilo defending him; but the Asso
ciated Press is assured by a member
of the imperial entourage at Tsar
skoe Selo that this is absolutely un
true. UNITED STATES OFFICIAL
ATTACKED BY ROWDIES
ST. PETERSBURG Robert Wood
Bliss, second secretary of the Ameri
can embassy, who has just returned
here after a three months' vacation
in Paris, was the victom of an out
rage by rowdies in one of the most
fashionable streets of the capital lato
last night, and only escaped being
beaten to death through the timely
arrival of the police.
Charge d'Affaires Eddy has report
ed the affair to the authorities at
Washington, but as the incident was
a plain case of rowdyism he probably
will not make official representations
at the foreign office here unless in
structed to do so.
HAVE NOT CHANGED MINDS.
Canal Consulting Engineers Stick to
Their Views.
WASHINGTON The five foreign
delegates to the board of consulting
engineers of the isthmian canal com
mission left for New York and will
soon sail for their homes. They will
meet again in Brussels during the
first days of next January. General
Davis will go to that city as repre
sentative of the American members
of the board, and will take with htm
the documents which are not yet
drawn up and which will then havo
to be signed by the foreign delegates.
Speaking of published stories that
they had reconsidered their first vote,
one of the delegates made the follow
ing statement:
"Whatever we have had to say will
be found in the report which will
shortly be in the hands of Presurent
Roosevelt. That we should cliango
our vote on a subject to which ror
three months we have given our clos
est attention, and should change it
merely because some parties are not
contented with it, is a great absurd
ity." MR. LIES BOUNCED.
United States Assistant Treasurer Re
moved. WASHINGTON. President Roose
velt on Monday removed from olfico
William S. Lieb, assistant United
States treasurer at Philadelphia, for
"constant and persistent violation of
the civil service law while in oiriee."
In a formal statement issued at the
White house by President Roosevelt
Mr. Lieb's removal is announced. Tho
president gave Mr. Lieb a hearing last
Friday at the request of Senator Pen
rose and Senator Knox of Pennsyl
vania. Mr. Lieb submitted a long
statement in answer to the charges
made against him and was supported
in his defense by Representative Pat
terson of Pennsylvania.
The statement says:
"After careful consideration of all
the facts developed by the inquiry, tho
president decided to remove Mr. Lieb
from office, it being shown, according
to the statement, that there was 'con
stant and consistent effort on your
(Mr. Lieb's) part to evade the provi
sions of the civil service law, to ham
per its workings as far as possible and
to obstruct in every way the action of
the commission.' "
DISASTROUS SEASON ON LAKES.
Seventy Ships Wrecked and 149 Lives
Lost.
DETROIT. Mich. Tho Journal to
day says 149 lives have been sacri
ficed, over seventy ships wrecked and
a loss of nearly $7,000,000 has been
sustained in the three big storms on
the Great Lakes this season. That
this is the most disastrous season in,
the history of shipping on the lakes is
beyond doubt.
Redmond's Predictions.
WATERFORD, Ireland. John Red
mond, addressing his constituents
here Thursday night, said that his
speech was practically his election ad
dress, for he believed that they wero
on the eve of a general election and
that the life of the government might
be counted by hours. Mr. Redmond
then proceeded to speak on the para
mouncy of the home rule question, be
side which he said the question of the
welfare and the good will or the col
onies sank into insignificance.
Good Price for a Stallion.
RICHMOND, Intl. W. R. Janvier of '
New York bought for a price reported
to be $12,500 the Indiana stallion Di
rector General. Director General is
the sire of the noted grand circuit
trotter Mainsheet, 2:08".
Widow of Bishop Merrill.
CHICAGO, III. Mrs. Anna Merrill,
widow of the late Bishop Stephen M.'
Merrill, who died in New Jersey Nol
vember 12, died in this city of paraly
sis of the heart.
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