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EDITORIAL
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I ' OMAHA, WEDNESDAY MORNING, DECEM BEK 8, 1909.
VOL XXXIX NO. 132.
SINGLE COPY TWO CENTS.
ANNUAL MESSAGE OF PRESIDENT TAFT TO THE CONGRESS
Recommendations for Legislation on Matters Much Discussed and of Real Importance in Connection With the Prosperity of the People
PRESIDENT TAFT'S annual mes
sage to the congress was read In
both houses at noon -today. It
vm very short In comparison
.with recent documents of a
similar nature, containing fewer
than 14,000 words. In It la found
brief but pointed reference to all matter
f publle Importance, wj.th direct recom
mendation or Significant suggestion for
legislative, action. The message, oondensed
In part, la aa follows:-'
To the Senate and the Hour of Repre-,
aentatlves:
The relatlona of the United States with
all foreign governments have continued
upon the normal basis of amity and good
understanding and Are very generally sat
isfactory, j"
(The president riches briefly on the
teference to the ffeherleg case between the
United States and .Qrtut Britain to The
Hague tribunal; 'to the work of the In
ternationaj Fisheries commission; the ad
justment' of International boundaries and
ther disputes ,olween the United States
and Canada; further orbteetlon for the
eeal fisheries; 4he second peace conference
t The Haguej tjie International conference
on maritime law, and on uniform hills of
xchange; the invitation of Belgium to
participate In the exposition at Brussels,
for which he urges acceptance and an ap
propriation; the adjustment of affairs in
tha Congo and the commission to Liberia,
th report of the latter to be submitted
later; the convention with Oermanv con
cerning patents; the Invitation of Norway
to participate In a conference to determine
tha status of the Spitsbergen Islands, and
tha result of tha revolution in Turkey).
Relatione with Sooth America. '
Ona of, tha ha priest events In recnt Pan
American diplomacy xVas the pacific Inde
pendent settlement by the governments of
Bolivia and Peru of a boundary difference
between them, which for aome weeks
threatened to cause war and even to en
train embltterments affecting other re
publics less directly concerned. From vari
ous quarters, directly or indirectly con
aerrwd, tha Intermediation of the United
State was sought to assist In a solution
f tha controversy. Desiring at all times
t abstain from any undue mingling In the
affairs of sister republlea and having faith
In the ability , of tha governments of Peru
and Bolivia themselves to settle their dif
ference In a manner satisfactory to them
selves, which, .viewed with magnanimity,
would esstiape all embltterment, this gov
ernment steadily abstained from being
drawn Into the 'controversy and was much
gratified to find Its confidence justified by
event.
On the th of July next ther will open
at Buenos Ayrei the fourth Pan-American
conference, This conference will have a
special meaning to the hearts of all Amer
icans, because around its date are clus
tered the anniversaries of the Independence
of so many of tha American republics, it
la not necessary for tn to remind ' the
congress of the political, social and oom-
merclal Importance ol thee gatherings.
You are asked - to make liberal appropria
tion for our participation. If this be
granted, it la my purpoa to appoint a dis
tinguished and representative delegation,
qualified fittingly to represent thia country
and to deal with the problems of inter
continental interest which will there be
discussed. ' ' . 1 '
. Tha Argentine rpubllo will also hold
from May to November, 1910, at Buenos
Ay res, a great International agricultural
exposition, In which the United States has
been invited to participate! . Conaldertng
the rapid growth of tha trade of the United
States with tha Argentina republic and the
cordial, relatlona existing between the two
nations, together with tha fact that it pro
vides an opportunity to show defereno to
a alster rapubllo on tha occasion of the
celebration of tta national independence,
the proper department of this govern
ment are taking steps to apprise the Inter
ests concerned of the opportunity afforded
by this exposition, , in which appropriate
participation by thla country la so deslr
able. Th designation of an official repre
sentative la also receiving consideration.
rtetestlea for America Cltlsena.
STnAAW wmmrm Avar thfMr ArtterleAH
capital la seeking Investment In ferelgn
OvtMtriea, and Amerlean predoet are mora
and user frally seeking frtgn mar
,, ket. Aa ae;uae la all countries
tbor ar American elrtseas and Amerlean
laUreoU to be protest, n etn, by
their ajrajat- Tks mvaat f
Hie a. of aopltel ant f eemmedltle bring
people and gvrnmat isr together
aad ee fenn bonds ef peace and mutual
4enev, aa they muat also naturally
oematlmea n-iak passing points of friction
Th resultant situation Inevitably Imposes
upan this government vastly increased le
sponstbilltles. This administration, through
the Department of 6tate and the foreign
eervlce. Is lending all proper support to
legitimate and beneficial Amerlean enter
prtet In foreign countries, the drgi-ee cf
vueh support being measured by t'ie na
tional advantages to be expre'.'fl. A e',11
s.i alo-eelf cannot by contract or other
wise alvt hlmelf of the iVht. nr ran
this ovtrrtmeat escape the eti'jratlon. it
Us (rtt.ortlea In his prettl and property
rlgU wbtu thu are ujurtly Infringed
la a (grtlyn auuntry. T avtd eeoeeler
viatluus It Is preper that In considering
wbtU-er Aauaileen enterprise should be en-
sour ged r supported la a partleular
country, th government should glv full
weight net nly te th national, a opposed
to th tadrrtdual benefit to aeerne, but
els the faet whether r set th gvrn
sseat ef the country In question la In Its
administration and' In lta diplomacy faith
ful to th principles ef moderation, equity
and luetic upon which alone depend in
ternational credit. In diplomacy aa well aa
tn finance.
Application of SI ob roe Doetrlae.
. The Fan-American policy of thia govern
ment has long been fixed In Its principles
end remains unchanged. With the changed)
circumstances of the TTnlted Statea and of
the republics to the south of us, moat of
which hav great natural resources, stable
government and progressive Ideals, the ap
prehension which gave rise to the Monroe
dtrla may be said to hav nearly dis
appeared, and neither th doctrine as It
axljiia nor any thr deetrrne of American
pollay anewlg be permitted t prat for
th piBtuaUoa ef !rrsns1bl govern
ment, th eooap c Juet eWtarattone, r tb
lnji'.dJoua ollegoU f salntlng ambi
tion oa th port ec th Ualt aval.
Eeald th fiiiyaaai tel dortrta of ur
ao-AsiTla poller later hav grown up
a I aalte la ee poMtl! latonata, em
Buaxr ef iatMrtUeiis and ldsala. aad a
tlewsshsac wsroo. All the bends will
be greatly strengthened as time goes on
and Increased 'faculties, such as the greet
bank soon to be established in' Latin Amer
lea, supply the means for building up the
coloeral Intercontinental commerce of the
future. ' . " ,
My meeting with President Diaz and the
greeting exchanged on both American and
Mexican soil served, I hope, to signalize
the close and cot dial relations which so
well bind together this republic and th
great' republic Immediately to the south,
between which there Is so vast a network
of material Interests.
I am happy to say that all but on of the
cases which for so long vexed our relations
with Venezuela have been settled within
the last few months and that, under the
enlightened regime now directing the gov
ernment of Venesuela, provision hat been
mad for arbitration of the remaining caso
before The Hague tribunal.
Claims of American Cltlsena.
On July SO. 1905, the government of
ran am a agreed, after considerable nego
tiation, to indemnify the relatives of the
American officers and sailors who were
brutally treated, one of them having, in
deed, been killed by the Panaman police
this year.
This government was obliged to Intervene
diplomatically to bring about arbitration
or settlement of the claim of, tha Emery
company against Nicaragua, which it had
long before been agreed thould be arbi
trated. A settlement of this troublesome
case was reached by the signature of a
protocol on September 18, 1909.
Many years ago diplomatic Intervention
became necessary to the protection of the
Interests In the American claim of Alsop
& Co. against the , government of
Chile. The government of Chile had fre
quently admitted obligation In the case
and had promised .this government to
settle It' There had been two abortive at
tempts to do so through arbitral com
mission, which failed through lack' ef
Jurisdiction.' Now,' happily, as th result
of the recent diplomatic negotiations, th
governments of th United States and of
Chile, actuated by .the sincere desire to
free from any strain ' thoso cordial and
friendly relations upon ' which' both aet
such store, have agreed by a protocol- ,t
submit the controversy to definitive set
tlement by His Brltannlo Majesty, Edward
VII.- '
Case of Zelaya.
Slnco the Washington convention of 1W1
wer communicated to the government of
the United States as a consulting and
advising party, thla government has been
almost continuously called upon by on or
another, and In turn by all of the five
Central American republics, to exert Itself
for the maintenance of tha conventions.
Nearly every complaint has been against
the Zelaya government of Nicaragua,
which hat kept Central America In con
stant ten-Ion or turmoil. The responses made
to the representations of Central American
republics, as due from the United States
on kecount rjf its relation to the washing-!
ton conventions, have been, at all ' times
conservative and have avoided, so far as
possible, any semblance of Interference,
although It Is very apparent that the con-,
alterations of geographic' proximity of the
Canal Zone and of the very substantial
American Interests in Central America
give to th United States a apeolal position
In the sone of . these republics and th
Caribbean sea.
- I need not rehearse here the patient ef
forts of this government to promote peace
and w el far among these republics, efforts
which are; fully appreciated by the ma
jority of them who are loyal to their true
Interests. , It would be no less unneces
sary to rehearse her the sad ta'.e of un
speakable barbarities and oppression air
leged ' to ' have been committed by the
Zelaya government. ' Recently two Ameri
cans were put to death by order of Presi
dent Zelaya himself. They wer reported
to have been regularly commissioned of
ficers In the organized forces of a revolu
tion which had continued many weeks and
was proceeding In an orderly ' fashion in
control, of about half of the republic, and
as auch, according to the modem enlight
ened practice of . civilized nations, they
would be entitled to be dealt with as
prisoners of war.
At th data when thla message la printed
thla government Is proceeding with de
liberate' circumspection to determine th
exact truth In relation te thee report
and upon th eeuree In th premises moat
consistent with Its dignity, Its duty to
Amerlean Interests and Its moral obliga
tions to Central America and to civiliza
tion. Work of a Bureau.
Th International bureau of American
republics has carried on an Important and
Increasing work during th lost' vear.
In the exerels ef Its peculiar functions as
sn Internationa: agency, maintained by all
the American republics for the develop'
ment of Pan-American commerce and
friendship, It has accomplished a great
practical good which could be done In the
ma way by no Individual department cr
bureau of one government, and is there
fore deserving of your liberal support. The
fact that It Is abcut to enter a new build
ing, erected through the munificence of an
American philanthropist and tb contrlbu
lions ef all the American nstlcns. where
both Its efficiency of administration and
expense of malntenence will naturally b
much augmented, further entltlea It to
special consideration.
In th far cast thla government preserve
unchanged Its policy of supporting th
principle ef equality, ' of opportunity, and
scrupulous respect for the Intergrlty of the
Chinese Empire, to which policy are pledged
th latrsted powers of both east and
west. - '
Relatlona with China.
By the treaty of 1903 China boa under
taken the abolition of llkln with a moderate
and proportionate raising of th customs
tariff along with currency reform. These
reforms being of manifest advantage to
J foreign commerce aa welj as to th Interests
of China, thla government Is endeavoring
to facilitate these measure and th need
ful acqulscence of th treaty powers. When
It appearead that Chinese llkln revenues
were to be hypothecated to foreign bankers
In connection with a great railway project.
It was obvious that the government whose
nationals held this loan would hav a
certain direct Interest la the question of
th Mrrylng ut by China of th rfrm
la queetlon. Because this railreed lean
rprnted a practical and real epplloa
Ua of th open doer pellcy threusb o
oparatlea with China by lntrtd pes' era,
a well aa beoauda ( lu rlaUaa to to
referm referred I obov. th. ad mini tro
ll dnd American prtle1p4ia t he
f great aaltoaeX later. Happily, whaa
It waa a a matter of bread policy argent
participation in the Pan-American Congress at Bnenoa
Ayrrs la desirable and slronld b supported by congress.
Amerioans should also tak part in th xp'osltlon. to b
held at Pneros Ayres next summer.
American citizens ar to be proteoted In person and
property In any fore lrn country.
Th Monro doctrin has not been abandoned th de
velopment of Central and South American oonntrles has
largely removed th necessity for Its assertion, and It will
not b lnvkd to enable any government to cceap its
obligation or payment of just debt.
Belaya baa proven a constant source of Irritation and
strife, and 1 to b dealt with aa anoh.
elation with China and Jaoan nr most pleasant.
Btrletar control of th opium trafflo la ursrd.
X,erislstlon looking to th reorganisation of the De
partment of atat is Immediately aaoessary. Relatlona
with foreign frovernmtnts reanire thla. Th Improved
condition In th consular servloe ar dn to executive
rders, th principles of which should b embodied Into
law.
Tb appointment of experts to assist official of tha
Btst department In fathering data on the tariff la ex
pected to accomplish much good.
Rigid economy la necessary to avoid th recurrence of
a dsflcli. ertlmatea hav bn ont far enough below cur
rent appropriations to avoid a deficit, but oongTesa la
warned that further cuts means curtailment of efficiency
In administration.
Reorganisation of administrative department of th
government la necoeasary, that greater tffloiency may ba
secured at a leaa expenditure of time, effort and money.
This will require a reclassification of th civil servioe. A
civil ssrvlce pension list la recommended.
Investigation of custom hens fraud and prosecution
of th guilty 1 undr way and an Inquiry by oongrss la
deprecated, because It might result la giving Immunity to
cm of th guilty person.
wo one is seeking a tariff war la which th spirit of
Mtallatlcn will ha reused, and In th xrcls of th dls
' oretlonary pewr eted In hint by law th president
hope to avoid any auch result.
Three year will b required for th tariff hoard to
tha this opportunity should not be lost,
th lndlspensabl inatrumentallty presented
itself when a group of American bankers,
of international reputation and great re
sources, agreed at once to ahar i the
I nun unon nreclsely such terms as this
government ahould approve. The chief of
those terms was that American railway
material should be upon an xaet equality
with that of the other nationals Joining in
the loan in the placing of orders for this
whole railroad system. After months of
negotiation the equal participation of
American aeems at last assured. It is
gratifying that Americans will thus take
their ahar in thla extension of thtse great
highways of trade, and to believ that auch
activities will give a real Impetus to our
commerce And . will , provts a. practical
corollary to our nistorio poucy in me wr
east.
Thv'ImPer1!- Chinese ' governrtfent In
pursuance' of lta decision to devote funds
from the portion of th indemnity remitted
by the United States to the sending of
students to this country hss already com
pleted' arrangements for carrying out this
purpose, and a considerable body of
students have arrived to take up their
work in our schools and universities. No
one can doubt the happy effect that the
associations formed by these representa
tive young men will have when they re
turn to take up their work In the pro
gressive development of their country.
Control of Opium Traffic, .
The results of the opium conference held
at Shanghai .last spring at the ' Invitation
of the United States have been laid be
fore the government. The 'report shows
that China Is making remarkable progress
and admirable efforts toward the eradica
tion of the opium evil and that the govern
menta concerned have not allowed their
commercial interest to Interfere with a
he'pful co-operation In this reform. Col
lateral Investigations of the opium ques
tion is this country lead me to recommend
that the manufacture, sale and use , of
opium and Its derivatives In the United
States should be so far possible more rigor
ously controlled by legislation.
Our traditional relatlona with th Jap
anea mpir continue cordial aa usual.
Aa the representative of Japan, HI Im
perial Hlghn Princ Kunl visited the
Hudson-Fulton celebration. The recent
visit of a delegation of prominent buslneo
men a guest of the chamber of.com
merc ef the Pacific elope, who repre
sentative had been so agrsoably received
In Japan, will ioubtlees contribute to the
growing trsde serene the Paclfln, as well
ss to that triatrial understanding which
leads to mutua! appreciation. The arrange
ment" of 151 for a co-operative control of
the coming of laborers to the United
Statea has proved to work satisfactory.
The matter of a revision of the existing
treaty between the United Statea and
.lapan which is terminable In 1912 is al
vesdy receiving tha study of both coun
tries. The Pepartment of State Is considering
the revision In whole or in part, of the
existing treaty with Slam, which was con
cluded In lSf.4 and is now, In respect te
many of Its provisions, out of data.
Reorganlslaa- Department of State.
I earnestly rermmend te the favorable
action of th cngros th estimate sub
mitted by the Department ef State and
moat erpectelly the legislation eaggeat4
In th secretary of states letter ef this
data wbareby It will b peostbl t de
velop and make permanent tb rrpanloa
tlon ef th department upn modern tinea
In a manner to make it a thoroughly ef
ficient Instrument In the furtherance of
our (orelgn trade and of American In
terests abroad.
Th consular aervlc haa been greatly
Improved under the law of April . l'.06,
and the executive order of June 17, 190S,
and I commend to your consideration the
question of embodying In a statute the
principles of the present executive order
upon which the efficiency of our consular
aervlco la wholly dependent.
Under a provision of the act of August
5. VM3, I have appointed three offi
ciate to aaeist th officer of the
government In collecting Information
neeatary to a wis administration of th
tariff act of August &. 1900. As to questions
0 customs administration they or co
operating with th fflclal of th Treasury
department and oa ' to matters f th
need and the exigencies of ur inanufao
turr aad xportra, with th Ipartmnt
of Ceruiuor aad lAbor, la lta relation te
th kraeoUa aspect, of too ubjat of
forolga coaunor. la th Huiy of foreign
tariff Ihoy wlU oetet th bureau of trad
relation of the Doparanot of Seat. It 1
hoped thus t -orduaat and bring to
bear upon thla moot Important avbjoot all
' Points Made by the President
complete tta work, and an appropriation for its support 1
requested.
An elimination bill, which shall operate to retire army
offloers who have proven Inefficient I asked.
A new fort at th mouth of th Cheiaptak bay ought
to b added to tb ooaat defense program. Tb naval has
and station la the Philippines Is to be abandoned In favor
of on at Psarl Harbor, near Honolulu. Porty-flv millions
ar cut from th army appropriation of tb last congress
and $38,000,000 from th naval. Th reorganization cf th
personnel of the navp and tha bureana of th Havy de
partment la nrped.
More expedition la th administration of Justice, both
In civil au a criminal cases, I required. Laws reforming
procedure la the federal court should b enacted and
t&es should serv a guides for stat courts.
A law thould ba passed limiting th lssuanc of Injuno
tons and prohibiting th issuar.ee of a restraining order
unless notloe has been riven, except in certain extreme
case. Tn event an order la leaned without notloe It should
not b fcr longar than seven days, and can only he re
newed sfter giving notice and a hearing- la had thereon.
A special rr.sae; will ho tent dealing with th Sher
man anti-trust law. v
Th deflolt In pottofflce revenue, duo to th handling
of second-class matter at a low rata, can be partly over
corn by cbarglng a higher rat oa magaxln and miscel
laneous periodical.
A law establishing postal savings banka ahould be en
acted, without waltlnj for th report of th monetary
commission.
A ship subsidy bill, to cover lines along th Atlantio
seaboard ard from tb west coast, ahould be passed.
Conservation of natural rtsonroes should ha given im
mediate and proper attention.
Whit tlav trafflo thould bo suppressed by stringent
laws.
A bureau of publlo health should b established.
The seu-l-centennlal of negro freedom In 1913 should
b jlven fitting recognition. Authority to appoint a com
mission to report en the desirability of holding aa expo
itloa to show tha porsress of th negro la requested.
the agencies of the government which
can contribute anything to Its efficient
handling.
As a consequence of section I of the
tariff aet of August 6. 1903, it become
the duty of the secretary of state to con
duet as diplomatic business all the negotia
tions neesary to place him in a posi
tion to advise me as to whether or not
a particular country unduly discriminates
against the United States In the sense
of the statute referred to. The great
scops and complexity of this work, as well
as the obligation to lend all proper aid
to our expanding commerce, Is met by
the expansion of the bureau of trade rela
tions as set forth in the estimates for
the Deportment of State.
Expenditure and Revenue.
-,"! Perhaps the most important question pre
sented to this administration Is that of
economy In expenditure and sufficiency
at revenue, 'the deficit of the lost fiscal
year, and the certain deficit of the cur
sent year, prompted congress to throw
a greater responsibility on the executive
and the secretary of the treasury than
had heretofore been declared by statute.
This declaration impose upon the secretary
of the treasury the duty of assembling an
the estimates of the executive depart
ment bureaus, and offices, of the expen
ditures necessary In the ensuing fiscal
year, and of making an estimate of the
revenues of the government for the same
period; and If a probable deficit is thus
shown. It is made the duty of the presldeni
to recommend the method by whlcn sJen
dtficlt can be met.
The report of the secretary shows that
the oidinary expenditures for the current
fiscal year ending June 30. 1910, will exceed
the estimated receipts by J4.0T5,6aO. If to
this deficit Is added the sum to be dis
bursed for the Panama canal, amounting
to M, 000,000, and )1,iOO,000 to be paid on the
pubiio dept. th deficit of ordinary receipts
and expenditures will be Increased to a
total def.clt of 73,073,620. This deficit the
secretary proposes to meet by the proceeds
of bonds issued to pay the cost of con
structing the Panama canal. I approve thia
proposal.
lhe policy of paying for the construction
of the Panama canal, not out of current
revenue, but by bond issues, was adopted
la the Spooner aet of ltJ. and thr seem
to b n god raaem for departing from
th prina.pi by which a part, at laat, of
th burden f th coot of th canal snail
fall upun ur poMortty wao ar to njuy
It; and thor I ail th mor reaeon for nus
view boaus th actual cast to aVat f
th canal, which 1 now half den and
which will b completed January 1, ink,
shews that the cost of engineering and con
struction will b 7,TM,000, instead of il39,
rct.zeo, aa originally estimated. In addition
to engineering and construction, the other
expenses, including sanitation and govern
ment, and th amount paid for the proper
ties, the franchis and the pilvilee of
building th canal, increase the cost by
;5,3o,OuO, to a total of 37o,201,0O0. The in
crease In the coat of engineering and con
struction Is due to , a substantial en
largement ' of the plan .of construc
tion by widening the canal lOu feet
la the Culebra cut and by Increasing the
dlaansln of th locks, to ths under
otlanat ef th quantity ef the work to
b dene under the original plan, and te an
uauereUnie of ths root ef labor and
snateiiol, btti ef which have greatly n
iuuit4 In price stnee the original estimate
wo made. ,
Meadloc Off th Deficit.
la order te aietd a deficit for the ensu
ing fiscal year, I directed the heads of de
partments tn the preparation of their esti
mate to make them aa low aa poss.ble
consistent with Imperative governmental
necessity. The result haa been, as I am
advised by the atcrelary of the treasury,
that the estimates of the expenses of the
government for the fiscal year ending June
30, 1911 that is, for the next fiscal year
are less by $,613.000 than the total of ap
propriations for the current fiscal year,
and less by (94.000,000 than the estimates
for that year. Eo far as the aecretary of
the treasury is able to form a Judgment
as to future Income, and compare it with
the .expenditure for the next fiscal' year
ending June SO, 1911. including the pay
menta on account of the Panama canal and
the public debt, ther will be no deficit In
the year ending fun 80, 111, but a small
surplus f flll.OM. ,
la the present estimate th need f th
department and f tji government have
been ut to th qulak, o to speak, and
any aaaumpUaa oa the part of aongreea,
a often made la time peal, that th ti
mote hav been prepared with th ex
pectation that they may bo reduced, will
result tn seriously hampering proper ad
ministration. Reform la Administration.
j It has been Impossible In the preparation
of estimates greatly to reduce the cost
of permanent administration. This can
not be done without a thorough reorganisa
tion of bureaus, offices and departments.
For the purpose of securing Information
which may enable the executive and the
legislative branches to unite In a plan for
the permanent reduction of the cost of
governmental administration, the Treasury
department has instituted an Investigation
by one of the most skilled ' expert ac
countants In the United States. The result
of his work In two or thre bureaus, which,
If extendi-d ito the entire government, must
occupy two' or more years, has been to
show much room for improvement and op
portunity for substantial reductions In the
cost and increased efficiency of adminis
tration. The object of the Investigation is
to devise means to Increase the average
efficiency of each employe. Tet there Is
great room for Improvement toward this
end, not only by the reorganization ot
bureaus and departments and tn the avoid
ance of duplication, but also in the treat
ment of the Individual employe.
Under the present system It constantly
happens that two employee receive the
same salary when the work of one Is far
more difficult and important and exacting
than that of the other. Superior ability Is
not rewarded or encouraged. As lhe
classification is now entirely by salary, an
employe often rises to the highest class
while doing the easiest work, for which
alone he may be fitted. An Investigation
ordered by my predecessor resulted In the
recommendation that the civil service be
reclassified according to the kind of work,
so that the work requiring most application
and knowledge and ability Bhsll receive
most compensation. I believe such a change
would be fairer to the whole force and
would permanently Improve the personnel
of the service.
Civil Service Penalona, '
More than this, every reform directed
toward the Improvement In the average
efficiency of government employes must
depsnd on the ability of th executive to
eliminate frem the government service
the who ar inefficient frem any cause,
and as the degree ef efficiency ,1n all the
departments Is much leeeened by the reten
tion of oid employes who have- outlived
their energy and usefulness It I indls
panslbi to any proper system ef economy
that provision be mad that their sepa
ration from the servloe shall be easy snd
Inevitable. It Is Impossible to make such
provision unless ther is adopted a plan of
civil pensions.
Meet of the great Industrial organizations
and many of the well conducted railways
of this country are coming to the conclu
sion that a system of pensions for old em
ployes snd the substitution therefor of
younger and more energetic servants pro
motes both economy and efficiency of ad
ministration. I am aware that there is a strong feeling
In both houses of congress, and possibly
In the country, against the establishment
ef civil pensions, and that this has natu
rally grewn out of the heavy burden cf
military pensions, which It hss always
been the pelley ef our government te as
sume; but I am strongly convinced that ko
other practical solution ef the difficulties
presented by the superannuation ef c'vll
aervar.ta son be found than that of a sys
tem of civil pensions.
Costosa Hoame Pre oris.
I regret t rcr t th fact of th dla
rovry of extensive frauds In the eollec
tlen of the ruetoma revenue at New Tork
rtty, In whleh a number ef the subordinate
employee In the weighing and other de
partment were directly concerned, and in
which the beneficiaries were the American
Sugar Refining company and others. The
frauds consisted In the payment of duty
on underweights of sugar. The government
has recovered from the American Sugar
Refining company' all that it is shown to
have been defrauded of. The sum was re
ceived In full of the amount due, which
might have been recovered by civil suit
against the beneficiary of the fraud, but
there waa an express reservation In the
contract of settlement by, which the set
tlement should 'not Interfere with, or pre
vent ths criminal prosecution of everyone
who was found to be aubject to th same.
Criminal proseoutlens are new proceeding
against a number of th government offic
ers. Th Treasury department and the De
partment of Justice ar zrtlag avery
effort to dlocovr all th wrvngdeor. In
cluding th officer and aiploy f th
oiDpaul who may hav bon privy t
th defraud It wuld om t m that
an Investigation of th fraud by oon
gra at prooent, ponding th probing by
tb Treasury department and th Depart
ment of Justice, as proposed, might by
giving Immunity and otherwise prove an
etv.harraesment In securing conviction of
the guilty parties.
Mo Tariff War.
Two features of the new tariff act call
for special reference. V virtue of the
clause known aa the ' maximum and mini
mum" clause, it is the duty of the exe
cutive to consider the laws and practices
of other countries with reference to the
Importation Into those countries of the
products and merchandise of the United
States, and If the executive finds such
laws and practices not to be unduly dis
criminatory against the United States, the
minimum duties provided in the bill are
to go into force. Unless the president
makes such a finding, then the maximum
duties provided in the bill, that is, an
Increase of 25 per cent ad valorem over
the minimum duties, are to be in force.
Fear has been expressed that this power
conferred and duty Imposeed on the execu
tive 1b likely to lead to a tariff war. 1 1
beg to exrress the hope and belief that
no such result nerd be anticipated.
The discretion granted to the executive
by the terms "unduly discriminatory" Is
wide. In order that the maximum duty
shall be charged against the Imports from
a country. It Is necessary that he shall
find on the part of that country not only
discriminations In Its laws or the practice
under them against the trade of the
United States, but that the dlscrlmlna- i
tlons found shall be undue; that Is, with
out good and fair reason. I conceive that
this power was reposed In the president
with the hope, that the maximum duties
might never be applied In any case, but
that the power to apply them would en
able the president and the State depart
ment through friendly negotiation ,to se
cure the elimination from the lawa and the
practice under them of any foreign country
of that which Is unduly discriminatory.
No one Is seeking a tariff war or a con
dition In which the spirit of retaliation
shall be aroused.
Work ef Tariff Commission.
The new tariff law enables me to ap
point a tariff board to assist me in con- I
nectlon with the Department of State In
the administration of the minimum and
maximum clause of the act and also to
assist officers of the government In the
administration of the entire law. An ex
amination of the law and an understanding
of the nature of the facts which should be
considered In discharging the functions im
posed upon the executive show that I have
the - power to direct the tariff board tn
make a comprehensive glosKS-y and ency
clopedia of the terms used and articles em
braced In the tariff law, and to secure In
formation as to the cost ot production ot
such goods in this country and the cost
of their production In foreign countries.
I have therefore appointed a tariff board
consisting of three members and have di
rected them to perform all the duties above
described. This work will perhaps take
two or three yeara, and I ask from con
gress a continuing annual appropriation
equal to that already made for Its prosecu
tion. I believe that the work of this board
will be of prime utility and importance
whenever congress shall deem It wise again
to readjust the customs duties.
Changea la the Army.
The secretary of war calls attention
to a number of needed changes in
the army In all of which I concur, but
the point upon which I place most em
phaals Is the need for an elimination bill
providing a method by which the merits ot
officers shall have some effect upon their
advancement and by which th advance
ment of all may be accelerated by the ef
fective elimination of a definite proportion
of the least efficient. There are in every
army, and certainly In ours, a number of
officers who do not violate their duty in
any such way as to give reason for a
court-martial or dismissal, but who do not
show such aptitude and skill and character
for high command as to Justify their re
maining in the active service to be pro
moted. Provision should be made by which
they may be retired on a certain proportion
of their pay, increasing with their length
of service at the time of retirement. There
Is now a personnel law for the navy whleh
Itself needs amendment and to which 1
shall make further reference. Such a law
la needed quite aa much for the army.
Coast Defea.
Th eoaat defames ef the United States
proper are generally all that could be de
sired, and In aomo respects they are rather
more elaborate than under praeent condi
tions arc needed to stop an enemy's fleet
from entering th harbors defended. There
Is, however, one place where additional de
fense Is badly needed, and that is at the
mouth of Chesspeeke bay, where It Is pro
posed to make an artificial island for a
fort which shall prevent an enemy'a fleet
from entering this most important strategi
cal base of operations on the whole At
lantic and gulf coasts. I hope that ap
propriate legislation will be adopted to se
cure the construction of this defense.
The military and naval Joint board have
unanimously agreed that It would be un
wise to make the large expenditure which
at one time were contemplated In the
establishment ef a naval base and station
In th Phillppln Islanda, and hav ex
pressed their Judgment, In which I fully
concur. In faver of making an oxtenalve
t.aval basest Pearl Harbor, near Honolulu,
and not In the Phlllpplnea. Thl doe not
dispense with the neeeeeity for th eem
paratlvely small approprlatlona required
to finish the proper eoaet dafensea in th
Philippines now under eenetruetten on the
Island cf Corregtder and elsewhere or to
eernplete a suitable repair station and coal
ing supply station at Olongapo, wher Is
the floating dock "Dewey." I hope that
this recommendation of the Joint board will
nd the discussion as to the comparative
merlta of Manila bay and Olongapo as
naval stations, and will lead to prompt
measures for the proper equipment and
defense of Pearl harbor.
Condition of the Navy.
The return of the battleship fleet from
ite voyage around 'he world. In more ef
ficient condition than when It started, was
a noteworthy event of Interest alike to
our citizens and the naval authorities of
the world. Besides the beneficial and far
reaching effect on our personal and diplo
matic relatione In the countries whleh th
fleet visited, the marked success of the
ships In steaming around the world In all
weather en schedule time haa Increased
respect for our navy and haa added to our
national prestlg.
Our onltated personnel rcrultd from all
aectlen of the oountry la young and en
ergetic and representative f th natlanal
spirit. It la, moreover, owing to It In
telligent, capabl of quick training into
the modern man-of-warsmen. Our officers
are earnest nnd zealous In their profession,
but it Is a rerretable fart tlint the higher
officers are eld for the responsibilities of
tho modern navy, and the admirals do not
arrive at flag rank young enough to ob
tain ndeqnnto training In their duties as
flag officers. This need for reform In the
navy has been ably and earnestly presented
to congress by my predecessor, and I alsJ
urRPntly recommend the subject for con
sideration. Uarly In the coming session a compre
hensive plan f . r the reorganization ot ths
officers of all corps of the navy w'll be
presented to congress, and I hope It will
meet with action suited to its urgency.
Owing to the necessity for economy In
expenditures. 1 have directed the curtail
ment of recommendations for naval appro
priations so that they are thirty-eight mil
lions less than the corresponding estimates
of Inst year, and the request for new naval
construction Is limited to two first-class
battleships and one repair vessel.
Tho use of a navy Is for military pur
poses, and there has been found need In '
the department of a military branch deal
ing directly with the military use of tho
fleet. The secretary of the navy has also
felt the lack of responsible advisers to Bid
him In reaching conclusions and deciding
Important matters between oo-ordlnale
branches of tho department. To aecur
these results he has inaugurated a tenta
tive plan involving certain changes In tho
organization of the Navy department. In-
eluding the nnvy yard's, all of which have
been found by the attorney general to ba
in accordance with law. I have approved
the execution of the plan proposed because
of the greater efficiency and economy It
promises.
Reform la Jadlrlal rroceuro.
The deplorable delays In the administra
tion of civil and criminal law have te
celved tho attention of committees of the
American Bar association and of many
state bar associations, as well as the con
sidered thought. of Judges and Jurists. In
my Judgment a change In . Judicial proce
dure, with a view to reducing Its expense
to private litigants In civil cases and facil
itating the dispatch of business and final
decision In both civil and crmlnal cases,
constitutes the greatest need In our Amer
ican institutions. 1 do not doubt for una
moment that much of the lawless violence
and cruelty exhibited In lynchlngs is di
rectly due to the uncertainties and Injua
tlce growing out of the delays in trials,
Judgments and the executions thereof by
our courts. Of course, these remarks apply
quite as well to the administration of Jus
tice In State court as to that in federal
courts, and without making Invidious dis
tinction It Is perhaps not too much to ay
that, speaking generally, the defects arc
less in the federal courts than In tho, state
courts. Cut they are very great In the fed
eral courta. The expedition with which bus
iness is 'disposed of both on the civil and
the criminal Side of English courts Under
modern rules of procedure makes the de
lay's in our courts seem archaic and bar
barous. The . procedure in , the federal
courts should furnish an example for the
state courts. I presume It Is Impossible,
without an amendment to the constitution,
to unite under one form of action the pro
ceedings at common law nnd proceedings
In equity in tho federal courts, but It is
certainly not impossible by a statute to
simplify and make short and direct the
procedure both at law and in equity In
thOMA rniirtn It im nn lmnna.11.1. a
down still more than It Is cut down the
Jurisdiction of the supreme court so aa to
confine it almoet wholly to statutory and
constitutional questions. Under the present
statutes . the equity and admiralty proce
dure In the federal courts Is under the con
trol of tho supreme court, but In tho pres
sure of business to which that court Is
subjected It is Impossible to hope that a
radical and proper reform of tho federal
equity prooedure can be brought about.
I therefore recommend legislation provld-'
Ing for the appointment 'by the president,
of a' commission with authority to exam
ine the law in equity procedure of the fed
eral' courts of first Instance, the law
of appeals from ; those court to
the couri of appeals and to the supreme
court, and the costs Imposed In such proce
dure upon the private litigants nnd upon
ths public treasury and make recommenda
tion with a view to simplifying and expe
diting the procedure ss ftr ss possible ard
making It as Inexpensive as may bo 1
the litigant of llttl mean.
' Aha of IaJaaoUona.
Th platform of th successful party In
th last lctlon contained tho following:
The republican perty will uphold at ail
times the authority and integrity of th
courta, state and federal, and will ever
Insist that their powera to enforce hlr
process and to protect life, liberty and
property shsll he preserved Inviolate. Wo
believe, however, that the rules of pro
cedure In the fedrl courts with reirpot
to the issuance of the writ of Injunet'ea
should be more accurately defined by
statute and that no Injunction or
temporary rcstra'nlng order should be
Issued w ithout notice, except wher Irrepar-.
able injury would result from dlav. In
r nr-n e-s a, sreeay hearing thereafter
should be granted. . . j
I recommend that in compliance with th
promise thus made, appropriate legislation
be adopted. The ends of Justice will bent
be met and th chief cause of complaint
egalnst Ill-considered Injunctions w'thout
notlro will b removed by the, ensctment
of a statute forhlddlng hereafter the Issu
ing of any Injunction or restraining ardor.
i""rir mponrj or permanent, By any
federal court, wlihout prevloua notice and
a reosonsble opportunity to be heard on
behalf ef the partlea to be enjoined; un
less it shall appear to the satisfaction of
the court that the delay necessary to glv
such notlee and hearing would result In
Irreparable Injury to the complainant and
unless also the court from the evidence
make a written finding, which shall bo
spread upon the court minutes, - that
immediate and irreparable Injury Is likely
to ensue to the compla'nant, and shall de
fine the Injury, etate why It Is irreparable,
and shall also endorse on the order Issued
the date and "the hour of the Issuance of
the order. Moreover, every such Injunction
or restraining order utsud without pre
vious notice and opportunity by th de
fendant to be heard should by fnrce of
the statute expire and be of no effjet
after seven daya from the Issuance thereof
or within any Urn leas than that period
which tho court may fix, unless within
euch seven days or such less period, the In
junction or order Is extended or renewed
after prevloua netlc and opportunity t)
be heard.
My Judgment Is that the passage of such
an act which really smbodle the beet pi so
il c In equity and I very Ilk th rul near
In fore In m court will prevent the
(Continued on Eleventh Tag.)