TTn: BEE: OMAHA. WEDNESDAY, DECEMBER 7, 1910.
Message of President Dealing With Domestic Matters of Greatest Importance
10
rcnitrurtlon of ti-e canal that It nee warily
fell in th li'Vfrnmfnt to advance the
money and petform ths work.
My own Impression l tlint the lull ought
Hot to exceed 1 per net ton. On January
1. 1911. the toils In the Suex canal are to be
7 francs and S centime fur one net ton
by Hues ranal measurement, which la a
modification of Danube measurement. A
dollar a ton will secure under the figures
above a gross Income from the Panama
canal of nearly I7.000.nno. The ccst of main
tenance anil operation Is estimated to Ex
ceed I3.000.noo. Ultimately, of course. wtli
the normal Increase in trade, the Income
will approximate the Interest charges upon
the Investment. On the whole I should
recommend that within certain limit" the!
president be authorised to fix the tods of j
the canal and adjust Iheni to what seema
to tie commercial necessity.
1 can not cloee thin ref-rrr.re to the i
canal without suggesting ai a wise amend- '
nient to the Interstate commerce Ian- a
provision prohibiting Interstate commorco
ralln.ad from.owrilng or controlling ships j
rngaged In the trade through the fanama I
canal. I believe such a provlsloa may b !
needed to ave to the people of t'10 t'nlted j
State the benefits of the competition In 1
trade between the eastern and western sea-
board which thla canal was const! uctcd '
to secure, j
Department of Justice.
The duties of the Departntent of Justice
have been greatly Increased by leg a.nt.on
of congress enacted In the Interest of lnu
geneial welture of the people and ex
tending Its activities Into avenues plainly
- within Its constitutional Jurisdiction, but
which It has not been thought wise or
necesssry for the general government here
tofore to occupy.
I am glad to say that underv the ap
propriations made for the department, the
attorney general has so Improved Its orga
nisation that a vast amount of litigation
of a civil and criminal character has been
disposed of during the curnnt year, 'lhls
will explain the necessity for s.ightly In
creasing the estimates for the expires of
the department. Ills report shows the
recoveries made on behalf of the goveru
irient, of duties fraudulently wtthneltl,
publlo lands Improperly patented, flues ana
penalties for trespass, prosecutions and
convictions under the anti-trust law, and
prosecutions under the Interstate commerce
law. I Invite especial attention to the
prosectulona under the federal law of tim
so-called "bucket shops," and of those
scheme to defraud In which the use of
the mall Is an essential part of the fraud
ulent conspiracy, prosecutions which have
saved Ignorant and weak members of the
public and are saving them hundreds of
millions of dollars. The violations of the
anti-trust law present perhaps the most
important litigation before the department,
and the number of cases filed shows tile
activity of the government In enforcing
that statute.
National Incorporation.
In a special message last year I brought
to the attention of congress the propriety
and wisdom of enacting a general law providing-
for the incorporation of industrial
and other companies engaged In Interstate
commerce, and I renew my recommenda
f lion In that behalf.
Claims.
In Invite the attention of congress to the
great number of claims which at the in
stance of congress, have been considered
by the court of claims and decided to be
valid claims against the government. The
delay that occurs In the payment of the
money due under the claims injures the
reputation of the government as an honest
debtor, and I earnestly recommend that
those claims which come to congress with
the Judgment and approval of the court of
claims should be promptly paid.
fnalolal Vroredur.
One great crying need In the United
States Is cheapening the cost of litigation
by simplifying judicial procedure and ex
pediting final judgment. Under present
conditions the poor man is at a woeful
disadvantage In a legal contest with a cor
poration or a rich opponent The necessity
for the reform exists both In United States
cc art a and In all state courts. In order to
bring It about, however, It naturally falls
to the general government by Its example
to furnish a model to all states. A legis
lative commission appointed by Joint reso
lution of congress to revise the procedure
In the United States courts has as yet
made no report.
Under the law the supreme court of the
United States has the power and Is given
ths duty to frame the equity rules of pro
cedure which are to obtain In the federal
courts of first Instance. In view of the
heavy burden of pressing litigation which
that court has had to carry, with one or
two of Its members Incepaclated through 111
health. It has not been able to take up
problems of Improving the equity procedure,
which has practically remained the same
Bines ths organisation of the court In 17!.
It 1 reasonable to expect that with all the
vacancies upon the court filled. It will take
up ths question of cheapening and simpli
fying the procedure la equity In the courts
of the United States. The equity business
Is much tho more Important In the federal
courts, and I may add .much the more ex
peneive. I am strongly convinced that ths,
best method of Improving Judicial proced
ure at law Is to empower the supreme
court to do it through the medium of the
rules of the court, as In equity. This Is
the way In which It has been done In. Eng
land, and thoroughly dons. The simplicity
aA expedition of procedure In the English
courts today make a model for the reform
of othr systems.
Several of the lord chancellors of England
and of ths chief Justice have left tlm'r
lasting Impress upon the history of tlitu
country by their construe, .a ab'lily in
proposing and securing the passage o
remedial legislation effec.r.g law reform!
1 can not conceive any higher duty that the
supreme court could perfo.'.n than in lead
ing the way to a simplification ofprocedui
in the United Stales rour's.
Relief from lKt.u,r Appeal.
No man out at to have, is s me iter t.f
right, a review of his rase by tl.a supreme
court, lie should be satisfied by one hear
ing bfffore a court of first Injtunee .nd
one review by a court of auuoV.s.
proper and chief usetulnes of the supreme
court, and especially of the supreme court
of the United States, is. In the cuses which
Come before It. o to expound tie Uw, a ltd
especially the fundamental law -.lid cor II
lutlun as to furnish precedent t.r the In
ferior courts in future litigation un.l f,.;
the executive officers in tao ow, ruction
of statute and the performance of ih.ir
legal dutlo. Therefor, any pros.a.uns fur
review of case by the supreme ourt that
east upon lti.it court the duty 01 ,mamn
on questions of evidence and the coustiu;
t ton of particular form of iuit, uin.nta,
like Indictments, or wills, or contracts,
decision not of general application or Im
portance, merely clog and burden the couit
and render more difficult It higher func
tion, which, makes It to Important a part
Of the framework of our government. Tim
supreme kOurt M now carrying n otinecer.
vary burden of appeal of this Kind and I
earnestly urge that It be rrmovcu.
Injunction Dill. (
I wish to K iiear toy urgent re. ommenda
Uun mad in my last annual message u
favor of ti e passage of a law which shall
regulate the Issuing of injunctions In1
equity without notice in accordance with(
ths best practice now in vogue In thej
pojrts of the United States. 1 regard this
of especial Importance, first because It has
been promised, and second because It will
deprive those wrn now complain of certain
olleged abuses In the In.rroper issuing of
Injunction without notice of any real
ground for further amendment and wl
ttike away all semblance of support for the
extremely radical legislation they propose,
which will be most pernicious If adopted,
will sap the foundations of Judicial power
and legalise that cruel social Instrument,
the secondary boycott.
I further recommend to congress the pas
sage of the bill now ponding for the In
crease In the salaries of the federal Judges,
by wlilrli the chief Justice of the supreme
court shall rcrcltc S17..W and the associate
J'tstlirs tlT.noO; the circuit Judges constitut
ing the circuit cowrt of appeals ehall re
ceive tlO.ono. mid the district Judges, O.000.
Postal Ktlst Baska,
At Its last sesclon congress made provi
sion for the establishment of saving banks
by the 1'on.office department of tills gov
ernment, by which, under the general con
trol of trustees, consisting of the postmas
tr general, the secretary of the treasury
and the attorney general, the system could
be begun In a few cities and towns and en
larged to cover within Its operations as
many cities and towns and as large a part
of the country as seemed wise. The Initia
tion and establishment of such a system
l.as required a great deal of study on the
bait of the experts In the Postofrire and
Treasury departments, but a system has
now been devised which Is bellevel to be
more economical and simpler In Its opera
tion than any similar system abroad. Ar
rangements have been perfected so that
savings banks will be opened In some cities
and town on January V, and there will be
a gradual extension of the benefits of the
plun to the rest of the country.
Wiping ()at of I'stl Deficit.
Kor many years there has been a deficit
In the operations of ths Postoffice depart
ment which has been met by appropriation
from the treasury. The appropriation esti
mated for last year from the treasury over
and above the receipts of the department
was 517.otv,ooo. I am glad to record the
fact that of that 117,600.000 estimated for,
111. Wt), ow was saved and returned to the
treasury'. The personal effort of the post
master general secured the effective co
operation of the thousands of postmaster
and other postal officers throughout the
country In carrying out his plans of reor
ganization and retrenchment. The result
Is that the postmaster general ho been
able to make his estimate of expenses for
the present year so low as to keep within
the amount the postal service Is expected
to earn.
Kxteasion of Classified Service.
Upon the recommendation of the poet-maater-genoral,
I have Included In the
classified service all assistant postmasters,
and I believe that this giving a secure
tenure to those who are the most import
ant subordinates of postmasters will add
much to the efficiency of their offices
and sn economical administration. A large
number of the fourth-class postmasters are
now In the classified service. I think It
would be wise to put In the classified ser
vice, the first, second, and third-class poet
matter. The Franking; Privilege.
Thai unrestricted manner In which the
franking privilege Is now being used by
the several federal services and by congress
has laid It open to serious abuses, a fact
clearly established through investigations
recently Instituted by the department. It is
bellsved that many abuses of the franking
system could be prevented, and conse
quently a marked economy effected, by
supplying through the agencies of ths pos
tal service special official envelopes and
stamps to be Issued on requisition to the
various brsnches of the federal service re
quiring them, and such records to be kept
of all official stamp supplies as will en
able the postofflce department to maintain
a proper postage account covering the en
tire volume of free government mall.
Second-CUs MU Matter.
In my last annual message I Invited the
attention of congress to the Inadequacy of
the postal rate imposed upon second-class
mall matter In so far as that Includes maga
slnes, and showed by figures prepared by
experts of the Poetofflr d.nirtmt t.
the government was rendering a Service to
the magajines, costing many millions In
excess of the compensation paid. An an
swer was attempted to this by ths repre
sentatives of the msgazlnes, and a reply
was filed to this answer by the Poatoffloe
department. The utter inadequacy of the
answer, considered In the light of the reply
of the Poitofflc department, I think must
appeal to any fair-minded person. Whether
the answer was all that could be said In
behalf of the magazines la another ques
tion. I agree that the question Is one of
fact; but T'lnsist that if ths fact Is as the
experts of the Postoffloe department show,
that we ere furnishing to the owners of
magaslnes a servlca worth millions mors
than they pay for It. then justice requires
that the rate should be Increased. The In
crease in the receipts of the department
resulting from this change may be devoted
to merea1ng the usefulness of ths depart
ment In ettabllshrlng a percels poet and In
reducing the con of first-class postage to
1 cent. It has been said by ths postmaster
general that a fair adjustment mig-ht be
made under which the advertising part of
the magasine should be charged for at a
different and higher rate from that of the
reading matter. This would relieve many
useful magaslnea that are not circulated
at a profit, and would not shut them out
from the use of the malls by a prohibitory
rata
Parcels Post.
Ith respect te the parcel post, I re
spectfully recommend Its adoption on all
rural delivery route, snd that eleven
pout ds-the International limit be made
the limit of carriage In such post, and this
with a view to its general extension when
the Income of the poatoffice will permit
it and the postal savings banks shall
have been fuily established. The same
argument Is made against the parcels
j poet that waa made against the postal
.savings bank-that It is Introducing the
government Into a buslner whic h ought to
j be conducted by private persona, and Is
J paternalism. The Postofftee department
las a great plant and a great organisation,
reaching Into the most remote hamlet of
the United Slates, and with this machinery
it Is able to do a great many things c
nomlcally that If a new organisation were
j rec:iary It would be Impossible to do
without extravagant expenditure. That la
the reaarn why the postal saving bank
can b carried on at smell additional cost,
and why Is It posoible to incorporate at a
very Inconsiderable exjiensa a parcels pust
In the rural delivery ksteiu.
Abvlltloa of mrr Versa.
, The aecretary of the navy has glten
personal examination to vry navy yard
snd has studied the uae of the navy yards
Willi reference to the necessities of our
fleet With a fleet conniderably less than
half the six of tiat of th BrttlHh navy
j we have hipard mors than double the
number, and there are several of tbe-e j inviting competitive bids for terms not ex
ahlpvards, expensively equipped with mod-i ceedlng fifty years, with a minimum rental
ern machinery, which after lnvestlcatlon
the secretary of the navy believes to be
entirely useless for naval purposes. He
'"" auinoniy 10 ansnuon certain oi tnem . wM ,ecurP proper mining and as to assinn
and to move their machinery to iilhn ,. hih m ....... ,inns tn
places, where it can be made of use. 1
In making these recommendations the
secretary Is following dlnctly along pro
gressive lines which have been adopted In
our great commercial and manufacturing
consolidations In this country; that Is. of
dismantling unnecessary and Inadequate
plants and discontinuing their existence
where It has been demonstrated that It Is
unprofitable to continue their maintenance
at an expense not commensurate to their
product.
I he secretary points out that the most
Important naval bane In tho West Indies
Is Ciuantanamo, in the southeastern part of '
I'uha. Its geographical situation Is ad-: lo foreign countries of the product,
mirably adopted to protect the commercial ! Fourth That the law should allow a pros
Paths to the I'anama canal, and he shows ' Pf tor for oil or gas to have the right to
that by the expenditure of less than half i prospect for two years over a certain tract
a million dollars, with the machinery which or government land, the right to be evl
he shall take from other navy yards, he ; denced by a license for which he shall pay
can create a r.avul station at (Juantanamy ' a small sum; and that upon discovery a
of sufficient size and equipment to fcerve j leap may be granted upon terms securing
the purpose of an emergency naval base. I a minimum rental and proper royalties to
ii eftrne,ly Joln the recommendation the government, and nlso the conduct of
that ho be given the authority which he j the oil or gas well In accord with the best
?.ul . .m qU't'' W",, lhal "UCh aC"" niethod for husbanding the supply of o,l
con e . H?:Zr l0?: 1 J" . P-lod of the leases
.v uv siaiuiiiKtit; 1 1 1 ai lit i r" m s
lating in the Interest of the navy, and for
tho general protection of the country by
the navy, mere local pride or pecuniary
Interest In tho .i.ui.h....... .. .......
yard or Bfatlon ousht tn n., r ti,.!
recommendation of the secretary is based : ueA by the federal government, after ad
upon the Judgment of impartial naval offl-' vertl,fcment nd bidding, for not exceeding
cers. entirely uninfluenced by any geo- i tltty J'"arB- u"on a proper rental, and with
graphical or sectional considerations. j condition fixing ratee charged to the
1 un te with the secretary in the recom-' publ c fori """" ' electric power, both
mendatlon that an appropriation be mnde I ren,' "' fates to be readjusted equit-
to construct a suitable crypt at Annapolis
tor the custody of th , remains of John
I'aul Jones.
Peary.
The complete success of our country In
arctic exploration should not remain un
noticed. For centuries there has been
friendly rivalry In lh s field of effort be
tween the foremost natlona and between
the bravest and most accomplished men.
Expeditions to the unknown north have
Keen encouraged bv enlightened envnn.
mcnts vjind de.erv.H u.... k
granted to the darim men who have con
I ducted them. The unparalleled achleve
I incnt of Peary in reaching the north pole,
j April S. I9u, approved by critical exam.na
I tlon of the most, expert scientists, has
j added to the distinction of our navy, to
Which he belongs, and reflects credit upon
his country. Ilia unique success has re
ceived generous acknowledgment from
scientific bodies and Institutions of learn
ing in Europe and America. I recommend
fitting recogniUon by congress of the great
achievement of Robert Edwin Peary.
Department at -the Interior.
The secretary of the Interior recommends
a change of the law In respect to the pro
cedure In adjudicating claims for lands,
by which appeals can be; taken from the
decisions of the department to the court of
appeals of the district of Columbia for a
Judicial consideration of the rights of the
claimant. This change finds complete anal
ogy In the preaent provlalon for appeals
from the decisions of ths commissioner of
patents. The Judgments of the court In
such esses would be of decisive value to
land claimants generally and to the De
partment ..of the Interior In the adminis
tration of the law, would enable claimants
to bring Into court the final consideration
of Issues as to the title to government land
and would, I think, obviate a good deal of
the subsequent litigation that now arises
in our western courts. The bill Is pend
ing, I believe, In the house, having been
favorably reported from tho committee on
public lands, and I recommend Its enact
ment. One of the difficulties In the Interior de
partment and In the land office has been
the delays attendant upon , the considera
tion by the land office and the secretary
of the interior of claims for patents of
public lands to Individuals. I am glad to
say that under ths recent appropriations
of the congress and the earnest efforts of
the secretary and his subordinates these
arrears have been disposed of, and the
work of the department has teen brought
more nearly up to data in respect to the
pending business than ever bofore In Its
history. Economies have been effected
where possible without legislative sasl st
ance, and these are shown in the reduced
estimates for the expenses of the depart
ment during the current fiscal year and
during the year to come.
The subject of the conservation of the
publlo domain has commanded the atten
tion of the people within the last two or
three years.
There is no need for radical reform In
the methods of disposing of what are really
agricultural land. The present laws have
worked well. The enlarged homeatead law
has encouraged ths successful farming of
lands In the semi a rid reOns.
Ths total sum already accumulated In the
fund provided by the act for the reclama
tion of arid lands Is about $OS.,00.?tf, and
of tliis all but t.2U,0ag.7S has been allotted
to the various projects, of which there are
thirty. Congress at Its lasrt, session pro
vided for the Issuing of certificates of in
debtedness not exceeding 130.000,000, to be
redeemed from the reclamation fund when
the proceeds of lands sold and from ths
water rents should be sufficient. Meantime,
in accordance with the provisions of the
law, I appointed a board of army engineers
to examine the projects snd to ascertain
which ars feasible and worthy of comple
tion. That board has. made a report upon
the subject, which I shall transmit in
seperate message within a few days. ,
Conservation Addresses.
In September last a conservation congress
was held at I'aul, at which I delivered
an atldre on the subject of conservation
so far as It was within the Jurisdiction and
possible action of the federal government.
In that address I assembled from the offi
cial records the statistic and faots a to
what had been done In this behalf in tho
administration of my predecessor and in
my own, and indicated the logislatlva
measures which I bol.eved to be wise In
order to secure the best use, In the publlo
Interest of what remains of our national
domain. j
There waa In this addrens a very full
discussion of the reasons which led me to
the conclusions stated. For ths purpose of
raving In an official record a compre
hensive resume of the statistic and fact
Satl.ered with some difficulty In that ad
dress and to avoid their repetition In the
body of this message. I venture to make
the address an accompany ng appendix.
The statistics are corrected to November
16 last.
! .i r le H mm. a i..
Kor the reasons Stated In the conserva
tion addreaa 1 recommend :
Kirst 1 hat the Minitatlon now Imposed
upon the executive which forbids his re-
ervlng more forest lands In Oregon. Wash-
I ington. Idaho,- Montana, Colorado and
Wyoming be repealed. I where the boll weevil has Interfered with
Fee nd That the coal dpoit of the ; Ihe growth of cotton, baa giten mote ai
govcrnnunt be leased, after aUveriiecmeut leutton to the cultivation of torn alia
and royalties upon the coal mined, to be re
adjusted every ten or twelve years, and
Willi conditions as to maintenance which
morcpolise ontrol of the coal In any one
district or market. I do not think that
coal measures under 2..V0 acres of surface
would be too large an amount to lease to
any one lessee.
'Ihlid That ihe law should provide the
same separation In respect to government
phosphate lands of surface and mineral
lights that now obtain in coal lands, and
that power to lease such lands upon terms
and limitations similar to those above rec
ommended for coal leases, with added con-
""tlon """suling the government to regu
la,p n' ntrt to prohibit tho export'
should be a lon as those of coal, but
they should contain similar provisions as
to assignment to prevent monopolistic com
binations. Fifth-That water power s j.es be directly
BDiy every ten years by arb nation or oth
erwise, with suitable provisions s gainst as
signment to prevent monopolistic combina
tions. Or that the law shall provide that
upon appl catlon made by the authorities
of the state where the water power site Is
situated, It may be patented to the State on
condition that the state shall dispose of It
under terms like those Just described, and
shall enforce those terms, or upon failure
to comply with the condition, the water
power site and all the plant and improvc-
ment on the site shall be forfeited and re
Vert to the United States, the president
being given the power to declare tho for
feiture and to direct legal proceedings for
Its enforcement. Either of these method
would, I think, accomplish the proper pub
lic purpose in respect to water power sites,
but one or the other should be promptly
adopted.
I earnestly urge upon congress that at
this session general conservation legislation
of the character Indicated be adopt Ml. At
Its last session this congress took most
useful and proper steps In the cause of
conservation by allowing the executive,
through withdrawals, to suspend the action
of the existing laws In respect to much of
the publio domain. I have not thought that
the danger of disposing of coal lands in the
United States under the present laws In
large quantities was so great as to call
for their withdrawal, because under the
present provisions It is reasonably cer
tain that the government will receive the
real value of the land. But, In respect
to oil lands, or phosphate lands, and of
gas lands In the United States, and in
respect to coal lands In Alaska, I have
exercised the full power of withdrawal with
the hope that the action of congress would
follow promptly and prevent that tying up'
of the resources of the country in tne
western and less settled portion and in
Alaska, which means stagnation and retro
gression. '
The question of conservation Is not a
partisan one, and I sincerely hope that
even in the short time of the present ses
sion consideration may be given to those
questions which have now been much clls
cursed, and that action may bs taken upon
them. '
Alaska.
With reference to the government of
Alaska, I have nothing to add to the
recommendations I made In my laHt mes
sage on the subject. I am convlnoed that
the migratory character of the population,
It unequal distribution, and Its smallness
of number, which the new census shows to
be about 60,000, in relation to ths enormous
sxpanse of the territory make It altogether
impracticable to give to those people who
are in Alaska today and may not b there
a year hence, the power td elect a legisla
ture to govern an Immense territory to
which they have a relation so little per
manent. It is far better for the develop
ment of the territory that It be committed
to a commission to toe appointed by the
executive, with limited legislative powers
sufficiently broad to meet the local needs,
than to continue the present insufficient
government with few remedial powers, or
to makSya popular government where there
Is not proper foundation upon which to
rest It,
National Park.
Our national parks have become so exten
sive and Involve so much detail of action
in their control that It seems to me there
ought to be legislation creating a bureau
for thetr care and control. The greatest
natural wonder of this country and the
surounding territory should be Included In
another national park. I refer to the Qrand
Canyon of the Colorado.
Pensions,
The uniform policy of the government In
the matter of granting pensions to tlio.e
gallant and devoted men who fought to
save the life of the nation in the perilous
days of ths great civil war, has always
been of the most liberal character. Those
men are now rapidly passing away. The
best obtainable official statistics show that
they are dying at the rale of something
Over 1,000 a month, and, In view of their
advancing years, this rata must Inevitably,
In proportion, rapidly Increase. To the
man who risked everything on the field of
battle to save the nation in the hour of
its direst need, we owe a debt which ha
not been and should not be computed in a
begiudglng or parsimonious spirit. But
while e should be actuated by tills spirit
to the soldier himself, care should be exer
cised not to go to aosurd lengths, ot dis
tribute the bounty of the guvernment to
classes of persons who i.sty, at this late
day. from a mere mercenary motive, seek
to obtain some lea'al relation nun an old
veteran now tottering on the brink of the
grave. The true spirit of the pension laws
Is lo be found In the nonle sentiments ex
pressed by Mr. Lincoln in his last Inauguial
address, wherein. In speaking of the na
tion's duty to Its soldier when th struggle
should be over, he said we ahould "care
for him who shall have borne the battle
and for hi widow and orphan."
Department ttf aaricaltare.
The report of tne secretary cf agricul
luie Invites attention to the stupendous
value of the agricultural products of this
country, amounting in all to lOJt.OuO.vmi
for this year. This amount Is larger than
that of l by M6,oj0.0tj0. The existeno
of such a crop Indicates a good prospect
for business throughout the country. A
notable change for the better is com-
1 menled upon by the secretary In the fact
j that the south, sapecially In those regions
other cereals, so that there Is a greater
diversification of crops In the south than
ever before and all to the great advan
age of that section.
The activities of the department have
been greatly Increased by the enactment
cf recent legislation, by the pure food act.
the meat Inspection act, the cattle trans
portation act and the act concerning the
Interstate shipment of game. This depart
ment Is one of those the scope of whose
action Is constantly widening, and theie
fore It Is Impossible under existing legis
lation to reduce tho cost and their rstl
matea below thoe of preceding years.
An Interesting review of the results of
nn examination made by the department
into statistics and pricea shows that on
the avcragi; since lsfll farm products have
increased in value 73 per cent, while the
things which the farmer buys for use have
Increased but 12 per cent, an indication
that present condtlons are favorable to the
farming community.
Department of Commerce and Labor,
The secretary of the Department of
Commerce and Labor has had under his
immediate supervision the application of
the merit system of promotion to a large
number of empicyes, and his discussion of
thin method of promotions based on actual
experience I commend to the attention of
congress.
Riresi nf Labor,
The commissioner of I.abor has been ac
tively engaged in composing the differ
ences between employers and employes en
gaged In interstate transportation, under
the Erdmau act, Jointly with the chairman
of tho Interstate Commerce commission. I
cannot speak In too high terms of the suc
cess of those two officers in conciliation
and settlement of controversies which .but
for their Inlerposltli n. would have resulted
disastrously to all Interests.
1 Invite attention to the very serious in
jury caused to all those who are engaged
in the manufacture of phosphorus matches.
The diseases Incident to this are frightful,
and as matches can be made from other
mateilals entirely Innocuous, I believe that
the Injurious manufacture could be dis
couraKed and ought to be discouraged by
the Imposition of a heavy federal tax.
I recommend the adoption of this method
of stamping out a very serious abuse.
GUht-Honr Law.
Since ISiVS It has been the declared pur
pose of this government to favor the move
ment for an eight-hour day by .provision
of law that none of the employes employed
by or on behalf of the government should
work longer than eight hours In every
twenty-four. The first declaration of this
view was not accompanied with any penal
clause and with no provision for Its en
forcement, and, though President Grant by
a proclamation twice attempted to ylve It
his sanction and to require ths officers of
the government to carry It out, the pur
pose of Uie framers of the law was ulti
mately defeated by a decision of the su
preme court holding that the statuto as
drawn was merely a direction of the gov
ernment to Its agents and did not Invali
date a contract made in behalf of the gov
ernment which provided In the contract for
labor a day of longer hours than eight.
Thereafter, In 1892, the present eight-hour
law was passed, which provides that the
services and employment of all laborers
and mechanics who are now or may here
after be employed by the government of
the United States, by the District of Co
lumbia, or by, any contractor or sub-contractor
on any of the public works of the
United States and of the said District of
Columbia, Is hereby restricted to eight
hours in any ons calendar day, and it
shall be unlawful, etc.
Thts Jaw has been construed to limit the
application of the requirement to thoso
who are directly employed by the' govern
ment or to those who ars employed upon
public works situate upon land owned by
the United States. This construction pre
vented Its application to government bat
tle ships and other vessuls built In private
shipyards and to heavy guns and armor
plate contracted for and made at private
establishments.
The proposed aot provides that no laborer
or mechanic doing any part of the work
contemplated by a contract with the United
States in the employ of the contractor or
any subcontractor shall be required or
permitted to work more than elgnt hours
a day In any one calendar day.
Apply It to All Work.
It seems to me from the past history
that the government has been committed
to a policy of encouraging tha limitation
of the day's work to eight hours In all
works of construction Initiated by itself,
and it seems to me Illogical to maintain a
difference between government work don
on government soli and government work
done in a private establishment, when th
work Is of such large dimensions and in
volves the expenditure of much labor for
a considerable period, so that the private
manufacturer may adjust himself and his
establishment to the special terms of em
ployment that he must make with his
workmen for this particular job. To re
quire, however, that every small oontraot
of manufacture entered Into by the gov
ernment should be carried out by the con
tractor with men working at eight hours
would be to Impose an Intolerable burden
upon the government by limiting its source
bf supply and exoludlng altogether th
great majority of those who would other
wise compete for Its business.
Ths proposed aot recognizes this In the
exceptions whloh it makes to contracts
"for transportation by land or water, for
the transmission of Intelligence, and for
such materials or articles as may usually
be bought In ths open market whether
made to conform to particular specifica
tions or not, or for the purchase of sup
plies by ths government, whether manu
factured to conform to particular specifi
cations or not."
I recommend that instead of enacting
the proposed bill, th meaning of which
Is not clear and definite and might be
given a construction embarrasing to the
publlo interest, the present act ba en
larged by providing that public worka shall
be construed to Include not only building
and work upon publlo ground, but also
lilps, armor, and large guns when manu
factured In private yard or factories.
One of the great difficulties In enforcing
this eight-hour law 1 that its application
under certain emergencies becomes ex
ceedingly oppressive and there is a great
temptation to subordinate officials to evade
it. 1 think that It would be wiser to al
low tlie president, by executive order, to
declare an emergency in special Instanoes
in which the limitation might not ap
ply and, In such case, to permit the pay
ment by the government of extra compen
sation for the time worked each day in
excess of eight hours. I may add that
my suggestion in respect to this legis
lation hav the full concurrence of the
commissioner of labor.
Workmen's Ceniponeatlon.
In view of the keen, widespread in
terest now felt In the United Statea In
a system of compensation for Industrial
accidents to supplant our present thor
oughly unsatisfactory aystetn of employ
ers' liability (a subject the Importance
of which oongresa has already recognised
by the appointment of the commission), I
recommend that the International rungres
on IndusV'lal insurance be Invited to hold
its mirtlog in '.i in il u'liiiitoti. and ti.at
au appi opt laliuii of tiO.ujo be made lo
cover the recessary expenses of organlx
Ing and carrying on the meeting.
1 renew my recommendation that th
claims of the depositors In the Krecdmen's
bank be recognlxed and paid by the passage
of the pending bill on that subject.
I alo renew my recommendation that
steps be taken looking to the holding of a
neRTo exposition In celebration of the fif
tieth anniversary of tha issuing by Mr.
Lincoln of the emancipation proclamation.
R area a of Health.
In my message of last year I recom
mended the creation of a Bureau of
Health, in which should be embraced
all those government sg socles outside of
the war and navy departments which
are now directed toward tha- preservation
of public health or exercise funtlona ger
mane to that sqbject. I renew this recom
mendation. Civil Nervier Commission.
The Civil Service commission has con
tinued Its useful duties during the year.
The necessity for the maintenance of the
provisions of the civil service law was
never greater than today. Officers respon
sible for the policy of the administration,
and their Immediate personal assistants or
deputies, should not be Included within
the classified service; but in my Judgment,
public opinion has advanced to the point
where It wouid support a bill providing a
secure tenure during efficiency for all
purely administrative officials. I entertain
the profound conviction that It would
greatly aid the cause of efficient and econ
omical government, and of better politics
If congress could enact a bill providing that
the executive shall have tha pnwer to In
clude In the classified service all local
offices under ths Treasury department, the
Department of Justice, the poatoffice de
partment, the Interior department and
the Department of Commerce and Labor,
appointments to which now require the con
firmation of the senate, and that upon
such classification the advice and consent
of the senate shall cease to be required In
such appointments. By their certainty of
tenure, dependenteli good service, and by
their freedom from the necessity for po
litical activity, three local officers would
be Induced to become more efficient public
servants.
Economy and Efficiency.
The committees on nppropr.atlons of con
gress have diligently worked to reduce the
expenses of government and have found
their efforts often blocked by lack of ac
curate Information containing a proper
aralysls of requirements and of actual and
reasonable costs. The result of this Inquiry
should enable the executive in tils com
munications to congress to give Informa
tion to which congress is entitled and
which will enable it to promote economy.
I have requeated the head of each de
partment to appoint committees on
economy and eff.clency in order to secure
full co-operation in the movement by the
employes of the government themselves.
I urge tho continuance of the appropria
tion of $100,000 requested for the fiscal
year 1915.
My experience leads me to believe that
while government methods are much criti
cised, the bad results if we do have bad
results are not due to a lack of seal or
willingness on the part of the civil serv
ants. On the contrary, I believe that a fine
spirit of willingness to Work exists in the
personnel, which. If properly encouraged,
will produce results equal to those secured
In the best managed private enterprlae. In
handling government expenditure the aim
is not profit the aim is the maximum of
public service and a minimum of cost We
Wish to reduce the expenditures of th
government, and we wish to save money
to enable the government to go Into some
of the beneficial projects which we are
debarred from taking up now because ws
ought not to Increase our expenditures.
At a later date I shall aend to congress
a special message on this general subjoct.
Civil Service Retirement.
It is Impossible to proceed far In such
an investigation without perceiving the
need of a suitable means of . eliminating
from the service the superannuated. This
can be done in one of two Way, either by
straight civil pension or by some form of
contributory plan.
Careful study of experiments made by
forqlgn governmenta shows that three
serious objections to the civil pension pay
able out of the publlo treasury may be
brought against It by the taxpayer, the
administrative ' officer, and the civil em
ploye, respectively. A civil pension Is
bound to become an .enormous, continuous
and Increasing tax on the publlo ex
chequer; it Is demoralising to ths service
since It makes difficult the dismissal of
Incompetent smployes after they have partly
earned their pension; and It is disadvanta
geous to the main body of employes
themselves since It Is always taken Into
account In fixing salaries and only th
few who survive and remain In the aer.
vice until pensionable age receive th
value of their deferred pay. For this rea
son, after a half century of experience
under a most liberal pension., system, ths
civil servants of England succeeded, about
a year ago, In having tha system so modi
fled as to make It virtually a contribu
tory plan with provision for refund of
their theoretical contributions.
The experience of England and other
oountrlea shows that neither can a con
tributary plan be successful, human na
ture being what It "Is, whloh does not
make provision for the return of contribu
tions, with Interest, In case of death or
resignation before pensionable age. Fol
lowed to Its logical conclusion this means
that the simplest and most independent
solution of the problem for both employs
and the government Is a compulsory sav
ings arrangement, the employe to set aside
from hi aalary a sum sufficient, with the
help of a liberal rale of Interest from the
government, to purchase an adequate an
nuity for him on retirement, this ac
cumulation to be Inalienably hi and claim
able if he leave th service before reach
ing the retirement aj or by hi heir
in case of his death. This is the principle
upon which the Uillstt bill now pending
is drawn.
Tlie GUelt bill, however, goes futher and
provide that the government shall contri
bute lo the pension fund of those em
ployes who are now ao advanced in age
that their personal contributions will not
be sufficient to create their annul tie
before reaching the retlretneut age. In my
judgment this provision should be amended
so that lh annuities of those employes
shall be paid out -of tha salailea appro
priated for th positions vacated by re
tirement, and thai the difference between
the annuities thus granted and the salaries
may be used for the employment of ef
ficient clert at th lower grades. If th
bill can b thus amended 1 recommend
ii passage, aa It will initiate a valuable
system and ultimately result in a g eat
saving in th pubic expenditure.
laterals! CanistrM Commission.
There has not been time to teat the bene
fit and utility of the amendments to ths
Interstate commerce law contained In th
set approved June Is, liiiO. The law as
enacted did not contain all the features
which I recommended. It did not speci
fically denounce as unlawful the purchase
by one of two parallel and competing road
of th stock of tha other. Nor did it
stbjecl to the restraining influence of the
Irtei stats Commerce commission th
Itciwer of corporation engaged In operal-
lug liiterytate railroads lo issue new stuck
and bonds; uor aid it authorize the making
of temporary agreements between rs.1l
rosds. limited to thirty days, fixing the
ssm rates for traffic between the name
places.
I do not press the consideration of anv
of these objects upon congres at this
session. The object of th first provision
is probably generally covered by the ant,
trost law. The second provision was in
the act referred to the consideration of a
commission to bo appointed by the eeiu
tlve and to report un th matter v
congress. That commission has been ap
pointed and I engaged In the Investigation
and constdetatlon of the question sub
mitted under the law. It consists of Presi
dent Arthur T. Hadiey of Yale university,
as chairman; Frederick C. Strauss. Fred
erick N. Judson, Trof. U. II. Meyer and
Walter I,. Fisher, with William E. 8. tlns
wold aa secretary.
The third purpose led lo so much mis
construction of its object that 1 am not
disposed to press It for further considera
tion. It was Intended to permit railroad
companies to avoid useless rate cutting
by a mere temporary acquiescence In the
same rates for the same service over com
peting railroads, with no obligation what
ever to maintain those rates for any time.
Safety- Appliances snd Provisions.
The protection of railroad employes from
personal injury Is a subject of the highest
Importance and demands continuing at
tention. There have been two measures
pending In congress, one for the
vision of boilers and tho other for the
enlargement of dangerous clearances. Cei -
taitily some measure ought to be adopted
looking to a prevention of accidents from
these causes. It seema to mo that Willi
respect to boilers a bill might well be
drawn requiring and enforcing by penalty
a proper system of Inspection by the i ail
way companies themselves which would
accomplish our. put pose. The entire le
moval of outside, clearances would be at
tended by such enormous expenses that
some other remedy must be adopted. i:y
act of May , lino, the Interstate Com
merce commission I authorised and di
rected to Investigate accidents, lo iroort
meir causes and Its recommendations,
uggest that the commission be requeste
I
lo make a speclHl report as lo Injuries
irom outnue clearance and the h
h!U
method of reducing them.
Initiation of Knllronda.
TUt Interstate Commerce commission iiai
recommended appropriations for the pur
pose of enabling it to enter upon a valua
tion of all railroads. This has always been
within the jurisdiction of the commission,
but the requisite funds have been wanting,
btatistlcs of the value of each railroad
would be valuable for many purposes, es
pecially if we ultimately enact any limita
tions upon the power of the Interstate
railroads to Issue stocks and bonds, as I
hope we may. I think, therefore, that In
order to permit a correct understanding
of the facts, it would be wise to make a
reasonable appropriation to enable the In
terstate Commerce commission to proceed
with due dispatch to the valuation of all
railroads. 1 have no doubt that railroad
companies themselves can and will greatly
facilitate this valuation and make It mucii
less costly in Unit and money than lias
been supposed.
fraudulent Bills of Lading.
Forged and fraudulent bills of lading pur
porting to be Issued against cotton, some
months since, resulted In losses of several
millions of dollars to American and foreign
banking and cotton interest. Foreign
bankers then notified American bankers
that, after October 31, Mo, they would not
accept bills of exchange drawn against bills
of lading for cotton Issued by American
railroad companies, unless American bank
ers would guarantee the Integrity of the
bills of lading. The American bankers
rightly maintained that they were not
Justified In giving such guaranties, aud
that, if they did so, the United States
would be the only country In the world
whose bills were so discredited, and whose
foreign trade was carried on under such
guaranties.
Th foreign bankers extended the time at
which these guaranties were demanded un
til December HI, UI10, relying upon us for
protection in the meantime, as the money
which they furnish to move our cotton crop
Is of great value to tills country.
For the protection of our own people and
the preservation of our credit in foreign
trade, I urge upon oongress the Immediate
enactment of a law under which one who,
in good faith, advances money or credit
upon a bill of lading issued by a com
mon carrier upon au interstate or foreign
shipment can hold ths carrier liable for the
value of th goods described In the bill at
the valuaUon specified in the bill, at least
to the extent of th advances mad in re
liance upon It Such liability exist under
the laws of many of th slate. I see no
objeotion to permitting two classes of bills
of lading to b Issued: (1) Those under
which a carrier shall be absolutely liable,
aa above suggested, and (2) thosa wm!
respect to widen the carrier shall assume
no iiaoimy except for the goods actually
delivered to the agent Issuing the bill.
The carrier might be permitted to nih. .
small separate speoiflo charge in addition
to tne rat of transportation for such
guaranteed bill, as an Insurance Drtmlum
against loss from the added risk, thus re
moving tne principal objeotion which I
understand Is made by the railroad com
panies to the imposition of th hahllnv
uggeated, vis, that th ordinary trans
portation rate would not -compensate them
for th liability assumed by th absolute
guaranty of the accuraoy of the bill of
lading.
1 further recommend that a punishment
of fine and Imprisonment bs lmDoaed uum
railroad agent and shippers for fraud or
misrepresentation In connection with
the
issue of bills of lading issued uuon iniei
state and foreign shipments.
Let tan Lnnr Stand.
Except as above, 1 do not recommend
any amendment to the interstate commerce
law as It stands. I do not now recommend
any amendment to ths anti-trust law
111
other words. It seems to uie that the ivim
lng legislation with reference to the regu
lation of corporations and the restraint of
their business has reached a point where
we can stop for a wh.lt and wltnens t'
effect of the vigorous execution of the law
on the statute book In restraining the
abuse which certainly did exist and which
roused th publlo to demand reform. If
this test develops a need for further leg s
latlon, well and good, but until then let 114
execute what we have. Due to the reform
movemeuts of the present decadu, there
has undoubtedly been a great Improvement
in business methods and standards.
Ths great body of business men of this
country, those who are responsible for its
commercial development, now have
eimesl deslr to obey the law and
an
10
square their conduct of business to its re
quirements and limitations.
These will doubtless be made clearer by
the decisions of the supreme court In cases
pending before It.
1 believe It to be in the Interest of sll
the peopls Of ths country that fur
II, a
time being the activities of government
addition to enforcing the existing law.
In
he
directed toward the economy of adminis
tration and the enlargement of opportuni
ties for foreign trade, the consul vstlon and
Improvement of our agricultural lauds
building up of home Industrie, and
tl:
the
strengthening of 1 imi'idr .c of apital
deii.estic ilivestme.i
IliE WilliE UVLdu, Dec. t, Ui
111
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