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Mr PRESIDENT OUTLINES OF THE DAY Important Recommendations as to Legislation Made ir;; in Annual Message to Congress--Large Part of Document Devoted to Corporations and Railroad t- ; Rate Legislation--Relations of Labor and Capital Dealt With Fully. jj;; Tte BsessageM President Roose- ' velt, read at the first session of the Plfty-nlnth Congress, congratulates the people on the continued prosper­ ity of the nation. The close relation­ ship- and mutual dependence upon each other of capital and labor are pointed out, and the message con­ tinues: Corporations. \ Yet, while not merely admitting, bait In- Sftttng upon this, tt is also true that where there is no governmental restraint or , supervision some of the exceptional men use their energies not in ways that are for the common good, but in ways iWhich tell against this common good. 'The fortunes amassed through corporate [organization are now so large and vest such power in those that wie!<l them, as make it a matter of necessity to give jto the sovereign--that is, to the Govern- Iment, whicl^ represents the people as a 'whole--some effective power of supervis­ ion over their corporate use. In order to 'Insure a healthy social and industrial life, every big corporation should be held re­ sponsible by, and be accountable to, some isovereign strong enough to control its (conduct. I am In no sense hostile to cor- jporations. This is an age of combination. ;and any effort to prevent ail combirta- |tion will be not only useless, but In the end vicious, because of the contempt for ,law which the failure to enforce law in­ evitably produces. We should, moreover, recognize in cordial and ample fashion the Immense good effected by corporate agencies in a country such as ours, and 'the wealth of intellect, energy, and fidel­ ity devoted to their service ,and there- tore normally to the service of the public, by their officers and directors. The cor­ poration has come to stay, just as the trade union has come to stay. Each can do and has done great good. Each should be favored so long as it does good. But ,each should be sharply checked where it acts against law and justice. ; The President shows the Impossi­ bility of the individual states deal- | ing successfully with corporation i greed, and the necessity of conferring I power upon the general government • even to the extent of a proper amend- iment to the constitution. He says: ! It has been a misfortune that the {national laws on this subject have hither- Ito been of a negative or prohibitive rather ithan an affirmative kind, and still more that they have in part sought to pro- jhibit what could not be effectively pro- Ihibited, and have in part in their pro- ihibitions confounded what should be : allowed and what should not be allowed, lit is generally useless to try to prohibit iall restraint on competition, whether this (restraint be reasonable or unreasonable! ; and where it is not useless it is i generally hurtful. Events have shown ithat it is not possible adequately to i secure the enforcement of any law of this kind by incessant appeal to the courts. iThe Department of Justice has for the last four years devoted more attention :to the enforcement of the anti-trust legis­ lation than to anything else. Much has |been accomplished; particularly marked ;has been the moral effect of the prosecu- •tions; but it is increasingly evident ^that ' there will be a very insuiueieut beneficial iresult in the way Of economic change. IThe successful prosecution of one device :to evade the law immediately develops I another device to accomplish the same I purpose. What is needed is not sweeping 'prohibition of every arrangement, good or load, which may tend to restrict competi­ tion, but such adequate supervision and .regulation as will prevent any restriction of competition from being to the detri­ ment of the public--as well as such (Supervision and regulation as will pre- ,vent other abuses in no way connected Iwith restriction of competition. Of these abuses, perhaps the chief, although by 'no means the only one, is overcapitallza- jtion--generally itself the result of die- • honest promotion--because of the myriad ! evils it brings in its train; for such over­ capitalization often means an inflation ,that invites business panic; it always cqn- ceals the true relation of the profit earned I to the actual capital invested, and it Icreates a burden of interest payments ; Which is a fertile cause of improper re­ duction or in limitation of wages; it 'damages the small investor, discourages 'thrift, and encourages gambling and spec- -Ulation; while perhaps worst of aU is the Itrickiness and dishonesty which It implies |--for harm to morals and worse than any iposslble harm to material interests, and • the debauchery of politics and business |by great dishonest corporations is far worse than any actual material evil they do the public. Until the national govern­ ment obtains, in some manner which the i wisdom of the Congress may suggest, Iproper control over the big corporations engaged in interstate commerce--that is, lover the great majority of the big cor­ porations--It will be impossible to deal adequately with these evils. I am well aware of the difficulties of ithe legislation that I am suggesting, and Iof the need of temperate and cautious {action in securing it. I should emphatic­ ally protest against improper radical or ; hasty action. The first thing to do is to deal with the great corporations en- gaged in the business of interstate trans- 'portatlon. As I said in my message of ;I>ec. 6 last, the immediate and most (pressing need, so far as legislation is (Concerned, is the enactment into law of home scheme to secure to the agents of 'the government such supervision and ,regulation of the rates charged by the railroads of the country engaged in inter­ state traffic as shall summarily and effectively prevent the imposition of un­ just or unreasonable rates. It must in­ clude putting a complete stop to rebates In every shape and form. This power to regulate rates, like all similar powers over the business world, should be exer­ cised with moderation, caution, and self- restraint; but it should exist, so that it can be. effectively exercised when the i!k06d arises. The first consideration to be kept In mind is that the power should be affirm­ ative and should be given to some ad­ ministrative tody created by the Congress. If given to the present Interstate Com­ merce commission or to a reorganized Interstate Commerce commission, such commission should be made unequivocally administrative. I do not believe In the government Interfering with private busi­ ness more than is necessary. I do not believe in the government undertaking any work which can with propriety be left in private hands. But neither do I believe in the government flinching from overseeing any work when it becomes evident that abuses are sure to obtain therein unless there is governmental supervision. It is not my province to Indicate the exact terms of the law which should be enacted; but I call the attention Of the Congress to certain existing con­ ditions with which it is desirab!e to deal. In my judgment the most important pro­ vision which such law should contain Is that conferring upon some competent administrative body the power to decide, Upon the case being brought before it. whether a given rate prescribed by a rail­ road Is reasonable and just, and if it is found to be unreasonable and unjust, then, after full Investigation of the com­ plaint. to prescribe the limit of rate beyond which it shall not be lawful to go --the maximum reasonable rate, as it is commonly called--this decision to go into effect within a reasonable time and to obtain from thence onward, subject to review by the courts. It sometimes hap­ pens at present, not that a rate is too nigh but that a favored shipper is given too low a rate. In such case the commis­ sion would have the right to fix this already established minimum rate as the maximum and it would need only one or two Buch decisions by the commission to cure railroad com­ panies of the practice of giving improper minimum rates. I call your attention to the fact that my proposal Is not to give the commission power to initiate or originate rates generally, but to regulate a rate already fixed or originated by the roads, upon complaint and after investi­ gation. A heavy penalty should be ex­ acted from any corporation which fails to respect an order of the commission. I regard this power to establish a maximum rate as being essential to any scheme of real reform in the matter of railway regulation. The first necessity is to se­ cure It; and unless it Is granted to the commission there is little use in touch- to* the subject at alL » • • • • • Continuing, the President earnestly ifecl&inis any spirit of hostility to tlie railroads, pointing out the bene­ fit* to he derived by the fair-dealing roads in the even-handed administra­ tion of justice. In this both the hon­ est railroad- mail atrfl the fcotfest ship­ per alike would be benefited. Ending the subject, the President says: All private-car lines. Industrial roads, refrigerator charges, and the like should be expressly put under the supervision of the Interstate Commerce commission or some similar body so far as rates, and agreements practically affecting rates, are concerned. The private-car owners and the owners of industrial railroads are entitled to a fair and reasonable compen­ sation on their investment, but neither private cars nor Industrial railroads nor spur tracks should be utilized as devices for securing preferential rates. A rebate in icing charges, or In mileage, or In a division of the rate for refrigerating charges is just as pernicious .as a rebate in any other way. No lower rate should apply on good3 imported than actually obtains to domestic goods from the American seaboard to destination except in cases where water competition is the controlling influence. Thers should be publicity, of the accounts of common car­ riers; no common carrier engaged in interstate business should keep any books or memoranda other than those reported pursuant to law or regulation, and these books or memoranda should be open to the inspection of the government. Only in this way can violations or evasions of the law be surely detected. A system of examination of railroad accounts should be provided similar to that now conducted into the national banks by the bank examiners; a few flrst-class railroad ac­ countants, if they had prpper direction and proper authority to . inspect books and papers, could accomplish much In preventing willful violations of the law. It would not be necessary for them to examine Into the accounts of any railroad unless for good reasons they were direct­ ed to do so by the Interstate Commerce commission. It is greatly to be desired that some way might be found by which an agreement as to transportation with­ in a state intended to operate as a fraud upon the federal interstate commerce laws could be brought under the juris­ diction of the federal authorities. At present it occurs that large shipments .of Interstate traffic are controlled by con­ cessions on purely state business, which of course amounts to an evasion of the law. The commission should have power to enforce fair treatment by the great trunk lines of lateral and branch lines. I urge upon the Congress the need for expeditious action by the Interstate Com­ merce commission in all these matters, whether in regulating rates for transpor­ tation or for storing or for handling property or commodities in transit. The history of the cases litigated under the present commerce act shows that its efficiency has been to a great degree destroyed by the weapon of delay, almost the most formidable weapon in the hands of those whose purpose it is to 'violate the law. The question of transportation lies at the root of all Industrial success, and the revolution in transportation which has taken place during the last half century has been the most important factor in the growth of the new industrial conditions. Most emphatically we do not wish to see the man of great talents refused the re­ ward for his talents. Still less do we wish to see him penalized; but we do desire to see the system of railroad transportation so handled that the strong man shall be given no advantage over the weak man. We wish to insure as fair treatment for the small town as for the big city, for the small shipper as for the big shipper. In the old days the highway of commerce, whether by water or by a road on land, was open'to all; It belonged to the public and the traffic along it was free. At present the railway is this highway, and we must do our best to see that it is kept open to all on equal terms. Unlike the old highway it is a very difficult and complex thing to manage, and It is far better that it should be managed by private individuals than by the govern­ ment. But it can only be so managed on condition that justice is done the public. It is because. In my Judgment, public ownership of railroads is highly undesir­ able and would probably in this country entail far-reaching disaster, that I wish to see such supervision and regulation of them in the interest of the public as will make it evident that there is no need for public ownership. The opponents of government regulation dwell upon the difficulties to be encountered and the intricate and involved nature of the prob­ lem. Their contention is true. It is a complicated and delicate problem, and all kinds of difficulties are sure to arise in connection with any plan of solution, while no plan will bring all the benefits hoped for by Its more optimistic adher­ ents. Moreover, under any healthy plan, the benefits will develop gradually and not rapidly. Finally, we must clearly under­ stand that the public servants who are to do this peculiarly responsible and delicate work must themselves be of the highest type both as regards integrity and efficiency. They must be well paid, for otherwise able men can not in the long run be secured; and they must possess a lqfty probity which will revolt as quick­ ly at tne thought of pandering to any gust of popular prejudice against rich men as the thought of anything even remotely resembling subserviency to rich men. But while I fully admit the diffi­ culties in the way, I do not for a moment admit that these difficulties warrant us in stopping in our effort to secure a wise and Just system. They should have no other effect than t<* spur us on to the ( exercise of the resolution, the even-hand- 1 ed justice, and the fertility of resource. I wMch we like to think of as typically American, and which will in the end achieve good results in this as in other I fields of activity. The task is a great ] one and underlies the task of dealing with the whole industrial problem. But the fact that it is a great problem does not warrant us in shrinking from the attempt to solve It. At present we face such utter lack of supervision, such freedom from the restraints of law. that excellent men have often been literally forced, into doing what they deplored because otherwise they were left at the mercy of unscrupulous competitors. To rail at and assail the men who have done as they best could under the conditions accomplishes little. What we need to do Is to develop an orderly system; and such a system can only come through the gradually increased exercise of the right of efficient government control. The necessity for safety appliances on railroads, recommended in the President's message to the last Con­ gress, is emphasized, together with the necessity for a law regulating the hours of labor of railroad men. On the labor question, the„ mes­ sage says: There has been demand for depriving courts of the power to Issue injunctions in labor disputes. Such special limitation of the equity powers of our courts would be most unwise. It is true that some Judges have misused this power; but this does not justify a denial of the power any more than an Improper exercise of the power to call a strike by a labor leader would justify the denial of the right to strike. The remedy is to regulate the procedure by requiring the judge to give due notice to the adverse parties before granting the writ, the hearing to be ex parte If the adverse party does not ap­ pear at the time and place ordered. What Is due notice must depend upon the facts of the case; it should not be used as a pretext to i>ermit violation of law, or the jeopardizing of life or property. Of course, this would not authorize the issuing of a restraining order or Injunc­ tion in any case in which It is not already authorized by existing law. I renew the recommendation I made in my last annual message for an Investiga­ tion by the Department of Commerce and Labor of general labor conditions, especial attention to be paid to the conditions of child labor and child-labor legislation in the several states. Such an Investigation should take into account the various prob­ lems with which the question of child labor Is connected. It is true that these problems can be actually met in most cases only by the states themselves, but It would be well for the nation to endeav­ or to secure and publish comprehensive information as to the conditions of the labor of children In the different states, so as to spur up those that are behind­ hand, and to secure approximately uni­ form legislation of a high character among the several states. In such a Republic as ours the one thing that we can not afford to neglect Is the problem of turning out decent citizens. The future of the nation depends upon the citizenship of the generations to come; the children of to-day are those who to­ morrow will shape the destiny of our land, and we can not afford to neglect them. The legislature of Colorado has recom­ mended that the national government provide some general measure for the protection from abuse of children and dumb animals throughout the United iv: States. I lay the matter before you for what I trust will be your favorable con­ sideration. In any great labor disturbance not only are employer and employe interested, but also a third party--the general public. Every considerable labor difficulty in which interstate commerce is Involved should be investigated by the government and the facts officially reported to the oublic. The question of securing a healthy, self- respecting, and mutually sympathetic at­ titude as between employer and employe, capitalist and wage-worker, is a difficult one. All phases of the labor problem prove difficult when approached. But the underlying principles, the root principles, in accordance with which the problem must be solved are entirely simple. We can get justice and right dealing only If We must face accomplished facts, and the principle of treating a man on his worth as a man rather than with reference to his social position, his occupation, or the class to which he belongs. There are selfish and brutal men in all ranks of life. If they are capitalists their selfishness and brutality may take the form of hard indifference to suffering, greedy disregard of every moral restraint which interferes with the accumulation of wealth, and cold-blooded exploitation of the weak; or, if they are laborers, the form of laziness, of sullen envy of the more fortunate, and of willingness to perform deeds of mur­ derous violence. Such conduct is just as reprehensible in one case as in the other, and all honest and farseeing men should join in warring against It wherever It becomes manifest. Individual capital­ ist and individual wage-worker, corpora­ tion and union, are alike entitled to the protection of the law, and must alike obey the law. Moreover, in addition to mere obedience to the law. each man. if he be a really good citizen, must show broad sympathy for his neighbor and genuine desire to look at any question arising between them from the standpoint of that neighbor no less than from his own; and to this end it is essential that capitalist and wage-worker should con­ sult freely one with the other, should each strive to bring closer the day when both shall realize that they are properly part­ ners and not enemies. To approach the questions which inevitably arise between them solely from the standpoint which treats each side in the mass as the en­ emy of the other side In the mass Is both wicked and fofilish. In the past the most direful among the Influences which have brought about the downfall of republics has ever been the growth of the class spirit, the growth of the spirit which tends to make a man Subordinate the wel­ fare of the public as a whole to the wel­ fare of the particular class to which he belongs. This inevitably brings about a tendancy to treat each man not on his merits as an individual, but on his posi­ tion as belonging to a certain class in the community. If such a spirit grows up in this Republic it will ultimately prove fatal to us, as In the past it has proved fatal to every community In which It has become dominant. Unless we con­ tinue to keep a quick and lively sense of the great fundamental truth that our concern is with the individual worth of the individual man. this govern­ ment cannot permanently hold the place which it has achieved among the nations. The vital lines of cleavage among our people do not correspond, and indeed run at right an­ gles to, the lines of cleavage which divide occupation from occupation, which divide wage-workers from capitalists, farmers from bankers, men of small means from men of large means, men who live in the towns from men who live in the country; for the vital line of cleavage is the line which divides the honest man who tries to do well by his neighbor,from the dishonest man who does 111 by his neighbor. In other words, the stand­ ard we 8hou:i establish is the standard of conduct, not the standard of occupation, of means, or of social position. It is the man's moral quality, his attitude toward theA great questions which concern all humanity, his cleanliness of life, his power to do his duty toward himself and toward others, which really count; and If we substitute for the standard of personal judgment which treats each man according to his merits, another standard in accordance with which all men o. one class are favored and all men of an­ other class discriminated against, we shall do irreparable damage to the^body politic. I be­ lieve that our people are too sane, too self- respecting, too flt for self-government, ever to adopt such an attitude. This government is not and never shall be government by a plutocracy. This government is not and never shall be government by^ a mob. ^ It has'been in the past, a government based on the theory that each man, rich or poor, is to ue#treated simply and solely on his worth as a man, that r.ll his personal and property rights are to be safeguarded, and that he is neither to wrong others nor to suffer wrong from others. Insurance. The great insurance companies afford strik­ ing examples of corporations whose business has extended so iar beyond the jurisdiction of the states which created them as to pre­ clude strict enforcement of supervision and regulation by the parent States. In my last annual message I recommended "that the Congress carefully cormider whether the pow­ er of the Bureau of Corporations cannot con­ stitutionally be extended to cover interstate transactions In insurance." Recent events have emphasized the importance of an early and exhaustive consideration of this ques­ tion. to see whether it is not possible to fur­ nish better safeguards than the several states have been able to furnlBh against cor­ ruption of the flagrant kind which has been exposed. The Revenues. Touching the question of tariff and revenue ,the views of the President are as follows: There Is more need of stability than of the attempt to attain an Ideal perfection In the methods of raising revenue; and the shock and strain to the business world cer­ tain to attend any serious change in these methods render such change inadvisable un­ less for grave reason. It is not possible to lay down any general rule by which to de­ termine the moment when the reasons for will outweigh the reasons against such a I'uange. Much must depend, not merely oh the needs, but on the desires, of the people as a whole; for needs and desires are not nec­ essarily Identical. Of course no change can be made on lines beneficial to, or desired by, one section of one state only. There must be something like a general agreement among the citizens of the several states, as repre­ sented in the Congress, that the change is needed and desired in the interest of the people as a whole; and there should then be a sincere, intelligent, and disinterested effort to make it in such shape as will combine, so far as possible, the maximum of good to the people at large with the minimum of neces­ sary disregard for the special interests of localities or classes. But In time of peace the revenue must on the average, taking a series of years together, equal the expendi­ tures 'or else tha revenues must be increased. Last year there was a deficit. Unless our ex­ penditures can be kept within the revenues then our revenue laws must be readjusted. It is as yet too early to attempt to outline what shape such a readjustment should take, for It is as yet too early to say whether there will be need for it It should be con­ sidered whether it is not desirable that the tariff laws should provide for applying as against or in favor of any other nation maxi­ mum and minimum tariff rates established by the Congress, so as to secure a certain reci­ procity of treatment between other .nations and ourselves. Having in view even larger considerations of policy than those of a purely economic nature. It would. In my judgment, be well to endeavor to bring about clpser commercial connections with the other people of this continent. I am happy to be able to announce to you that Russia now treats us on the most-favored-nation basis. Economy in Expenditures. The necessity for economy and a rigid scrutiny of appropriations is made manifest, with this proviso: Yet, in speaking of economy, I "must In no wise be understood as advocating the false economy which is in the end the worst ex­ travagance. To cut down on the navy, for Instance, would be a crime against the na­ tion. To fail to push forward all work on tie Panama canal would be as great a folly. Currency. The currency question is dealt'with as follows: Every consideration of prudence demands the addition of the element of elasticity to our currency system. The evil does not con­ sist in an adequate vplume of money, but in the rigidity of this volume, which does not respond as it should to the varying needs of communities and of seasons. Inflation must be avoided; but some provision should be made that will Insure a larger volume of money during the fall and winter months than in the less active seasons of the year; so that the currency will contract against speculation, and will expand for the needs of legitimate business. At present the Treas­ ury department is at irregularly recurring in­ tervals obliged, in the interest of the busi­ ness world--that is, in the interests of the American public--to try to avert financial crises by providing a remedy which should be provided by Congressional actios. Federal Elections. « On the subject of federal elections, the President says: "The power of the government to protect the Integrity of the elections of Its own of­ ficials is Inherent and has been recognised and affirmed by repeated declarations of the Supreme court. There is no enemy of free government more dangerous and none so In­ sidious as the corruption or the electorate. No one defends or excuses corruption, and it would seem to follow that none would op­ pose vigorous measures to eradicate it. I recommend the enactment of a law directed against bribery and corruption la federal elections. The details of such a law may be safely left to the wise discretion of the Con­ gress, but tt should go as far as under the constitution it is possible to go, and should include severe penalties against him who gives or receives a brlbe Intended to Influ­ ence his act or opinion as an elector; and provisions for the publication not only of the expenditures for nominations and elec­ tions of all candidates, but also of all con­ tributions received and expenditures made by political committees." I desire to repeat this recommendation. In political campaigns in a country as large and populous as ours It Is inevitable that there should be much expense of an entirely legitimate kind. This, of course, means that many contributions, and some of them of laree size, must be made, and, as a matter of fact, in any big political contest such con­ tributions are always mads to both aides. It Is entirely proper both to give and receive them, unless there is an improper motive connected with either gift or reception. If they are extorted by any kind of pressure or promise, express or implied, direct or in­ direct, in the way of favor or immunity, then the giving or receiving becomes not only im­ proper but criminal. It will undoubtedly be difficult as a matter of practical detail to shape an act which shall guard with reason­ able certainty against such misconduct; but if it is possible to secure by law the full and verified publication in detail of all the sums contributed to and expended by the candi­ dates or committees of any political parties the result cannot but be wholesome. All con­ tributions by corporations to any ' political committee or for any political purpose should be forbidden by law; directors should not be permitted to use stockholders' money for such purposes: and, moreover, a prohibition of this kind would be. as far as it went, an effective method of stopping the evils aimed at in corrupt practices acts. Not only should both the national and the several state legis­ latures forbid any officer of a corporation from using the money of the corporation in or about any election, but they should also forbid such use of money In connections with any legislation save by the employment of counsel In public manner for distinctly legal services. The. position of the United States with regard to The Hague confer­ ence is clearly shown, the desire of the United States for continuance of the world's peace being made appar­ ent and the necessity for strength to maintain a righteous position insisted upon. Elaborating on the many reasons ex­ isting for the maintenance of the Monroe doctrine, the message points out how the interests of our southern neighbors are identified with our own and the impossibility of the United States usrag the doctrine as a means for aggrandizement. The help af­ forded Santo Domingo in her escape from the importunities of foreign cred­ itors and rapacious revolutionists at home is shown as a case in point Army and Navy. The President insists upon the ne­ cessity for a well trained body of sol­ diers as a nucleus for an army in time of trouble, and that maneuvers of a practical kind should be under- taken- to adapt the forces to actual conditions of warfare. An increase in the artillery force so that the coast fortifications can be adequately man­ ned is also recommended, with lib­ eral appropriations for the building and bringing to a state of perfection of the United States navy. Naturalization Laws. Of our present naturalization lvprs, the message says: During the past year evidence has accu­ mulated to confirm the expressions con­ tained in my last two annual messages as to the Importance of revising by appropriate legislation our system of naturalizing aliens. I appointed last March a commission to make a careful examination of our naturalizing laws, and to suggest appropriate measures to avoid the notorious abuses resulting from the improvident or unlawful granting of cit­ izenship. This commission, composed of aiK officer of the Department of State, of the Department of Justice, and of the Depart- iri£»nt nf Comnioros fiiid Labor, has dis- charged the duty imposed upon it, and has submitted a report, which will be transmitted to the Congress for its consideration, and, I hope, for its favorable action. The distinguishing recommendations of the commission are: First. A federal bureau of naturalization, to be established In the Department of Com­ merce aiuL Labor, to supervise the adminis­ tration of the naturalization laws and to re­ ceive returns of naturalizations pending and accomplished. Second. Uniformity of naturalization cer­ tificates, fees to be charged and procedure. Third. More exacting qualifications for cit­ izenship. Fourth. The preliminary declaration of In­ tention to be abolished and no alien to be naturalized until at least ninety days after the filing of his petition. Fifth. Jurisdiction to naturalize aliens to be confined to United States district courts and to such State courts as have jurisdiction in civil actions in which the amount in con­ troversy is unlimited; in cities of over 100,- 000 inhabitants the United States district courts to have exclusive jurisdiction In the naturalization of the alien residents of such cities. Criminal Laws. Legislation to make our criminal laws more effective and to provide ad­ equate punishment for breaches of trust by public officals is urged, and the promise made that all the power of the administration shall be devoted to the detection and punishment of such wrongdoers. The President continues: Once again I call your attention to the condition of the public-land laws. Recent developments have given new urgency to the need for such changes as will flt these laws to actual present conditions. The honest dis­ posal and right use of the remaining public lands is of fundamental Importance. The iniquitous methods by which the monopoliz­ ing of the public lands is being brought about under the present laws are becoming mor^ generally known, but the existing laws no not lurnish effective remedies. The rec­ ommendations of the 'Public Lands commis­ sion upon this subject are wise and should be given effect. The policy of creating forest re­ serves is shown to have met popular approval, as has the Initiation of ifor- est reserves. Merchant Marine. On the subject of the merchant ma­ rine, the message says: To the spread of our trade in peace and the defense of our flag In war a great and prosperous merchant marine is indlspeusuble. We should have ships of our own and sea­ men of our own to convey our goods to neu­ tral markets, and in case of need to rein­ force our battle line. It cannot but be a 'source of regret and uneasiness to us that the lines of communication with our sister republics of South America should be chief­ ly under foreign control. It is not a good thing that American merchants and manu­ facturers should have to send their goods and letters to South America via Europe if they wish security and dispatch. Even on the Pacific, where our ships have held their own better than on the Atlantic, our mer­ chant flag is now threatened through the lib­ eral aid bestowed by other governments on their own steam lines. I ask your earnest consideration of the report with which the Merchant Marine commission has followed Its long and careful inquiry. Praise of the good work of the pen­ sion bureau with an acknowledge^ ment of the debt -thp country owes to the ¥#$§|$n*\of the Civil war fol­ lows. .; \(/ .* •, /Immigration. Continuing, the message shows clearly the necessity for checking the steamship companies in their activity in promoting the Importation of unde­ sirable immigrants, while pointing out how warmly welcome is the man of good health and moral character, who bids fair to add value to the community. An increase in the strin­ gency of the immigration law -is advo­ cated. On the subject of Chinese immigra­ tion the message urges the necessity for courteous treatment of the Chi­ nese students, business and profes­ sional men who visit this country, while asserting unalterable opposition to the admission of coolies or skilled or unskilled labor from China. Civil Service. Some paragraphs of the message are devoted to an elucidation of the workings of the civil service law. The assertion is made that the effects of the law have been excellent. A recommendation is made for in­ creased appropriations and payment of Indians. ^^ The Philippines. Despite the series of disasters which have afflicted the Philippine Islands since the American occupa­ tion--the rinderpest, the locusts, and the drought--conditions are shown to have steadily improved and tranquil­ ity is now almost universal. The Fil­ ipinos are beginning to realize the benefits of education, and a school at­ tendance of 70 per cent is the result. Referring to trade between the islands and the United, States, the message says: -v A statute In force, enacted April 15, 1904, snsppuas the operation of the coastwise laws of the United States upon the trade between the Philippine islands and the United States until July 1, 1906. I earnestly recommend that tills suspension be postponed until July 1, 1909. I think It of doubtful utility to apply the coast­ wise laws to the trade between the United States and the Philippines under any circum­ stances. because I am convinced that it will do no j;ood whatever to American bottoms, and will only interfere and be an obstacle to the trade between the Philippines and the United Stares; but If the coastwise law must be thus applied, certainly it ought not to have effect until free1 trade is enjoyed between the peo­ ple of the United States and the people of the Philippine islands in their respective products. ,L 1 do not anticipate t..nt free trade between J the islands and the United States will produce a revolution In the sugar and tobacco produc­ tion of the Philippine Islands. So primitive are the methods of agriculture In the Philip­ pine islands, so slow is capital In going to the Islands, so many difficulties surround a large agricultural enterprise In the islands, that it will be many, many years before the products of those islands will have any effect whatever upon the markets of, the United States, line problem of labor is also a formidable one with the sugar and tobacco producers in the islands. The best friends of the Filipino people and the, people themselves are utterly opposed to the admission of Chinese coolie labor. Hence tha only solution is the training of Filipino labor, and this will take a long time. The enactment of a law by the Congress of the United States making provision for free trade between the islands and the United States, however, will be of great importance1 from a political, and senti­ mental standiKiint; a:;d while its actual bene­ fit has doubtless been exaggerated by the peo­ ple of the Islands, they wS(H accept this meas­ ure of justice as an indication that the people of the United States are anxious to aid the peo­ ple of the Philippine Islands in every way, and--especially in the agricultural development of their Archipelago. It will aid the Fiipinos without injuring interests in America. The President urges that immediate steps be taken for the fortification of Hawaii and the development of the territory on traditional American lines. Admission of Chinese labor under statute restrictions is con­ demned as leading to a status of ser­ vility which, the message declares, can never again be tolerated on Amer­ ican soil. The President says: "Our aim must be to develop the territory on the same basis of stable citizen­ ship as exists on this continent." Porto Rico. Dealing with the affair* of Porto Rco, the President says: I earnestly advocate the adopUon of legisla­ tion which will explicitly confer American citl-. enshlp on all citizens of Porto Rico. There Is. in my judgment, no excuse for failure to do this. The harbor of San Juan should be dredged and Improved. The expenses of the I'ederal court of Porto Rico should be met from tlie Federal treasury, and not from the Porto Rlcan treasury. 'Tlie elactlons In Porto Rico should take place every four years, and the legisla­ ture should meet In session every two years. The present form of government In Porto Rico, which provides for the appoiutment by the President of the members of the executive coun­ cil or upper house of the legislature, has proved satisfactory and has inspired confidence in property owners and Investors. I do not deem tt advisable at the present time to change this form in any material feature. The problems and needs of the island are industrial and com­ mercial rather than political. Discussing the needs of Alaska, the President recommends that the terri­ tory be given an elective delegate who will be able to speak with au­ thority on the needs 'of that section of our country. The message con­ cludes: Admission to 8tatehood. I recommend that Indian Territory and Okla­ homa bo admitted as one State and that New Mexico and Arizona be admitted, at one State. There is no obligation ui>on us to treat ter­ ritorial subdivisions, which are matters of con­ venience only, as binding us on the question of admission to statehood. Nothing has taken, up more time in the Congress during the past few years than the question as to the statehood to be granted to the four Territories above men­ tioned. and after careful consideration of all that has been developed in the discussion* ot the question I recommend that thsy be Im­ mediately admitted aa two States. There |» no justlBcation for further delay; and the ad­ visability of making the four Territories into two States has beeu clearly established. In some of the Territories the legislative as­ semblies Issue licenses for gambling. The Congress should by law forbid this practice, the harmful results of which are ohvlow at a glance. The Panama Ganal. The treaty between the United States and the Republic of Panama, under which the construction of the Panama canal was made possible, went Into effect with Its ratification by the United States Senate on Feb. 23, 1004 The canal properties of the French Canal Com­ pany were transferred to the United States on April 23, 1904, on payment of $40,000,000 to that company. On April 1, 190S, the Commis­ sion was reorganized, and It now consists of Theodore P. Shouts, chairman, Charles K. Ma- goon. Itenjamln M. Ilarrod. Rear-Admiral Mor- decai T. Endlcott, Brig.-(Jen. Peter C. Hains. and Col. Oswald H. Ernst. John F. Stevena was appointed chief engineer on July 1 last. Active work in canal construction, mainly pre­ paratory. has been In progress for less than a year and a half. During that period two points about the canal have ceased to be open to de­ bate. First, the question of route; the canal will be btillt on the Isthmus of Panama. Sec ond, the question of feasibility; there are no physical obstacles on this route that American engineering skill will not be able to overcome without serious difficulty, or that will prevent the completion of the canal within a reason­ able time and at a reasonable cost. This Is virtually the unanimous testimony of the en­ gineers who have investigated the matter for the government. Hie point which remains unsettled Is the qnestlon of type, whether the canal shall be one of several locks above sea level, or at sea level with a single tide lock. On this point 1 hope to lay before the Congress at an early day the findings of the Advisory Roard of Ameri­ can and European Engineers, that at my Invi­ tation have been considering the subject, to­ gether with the report of the commission there­ on; and such comments thereon or recommenda­ tions in reference thereto as may seem neces­ sary. What Is needed now and without delay Is an appropriation by the Congress to nieet the cur­ rent and accruing expenses of the commission. The first appropriation of $10,000,000, out of the 1135.000.000 authorized by the Spooner act, was made three years ago. It is nearly ex­ hausted. There is barely enough of it remain­ ing to carry the commission to the end of the year. Unless the Congress shall appropriate before that time all work must cease. To ar­ rest progress for any length of time now, when matters are advancing so satisfactorily, would be deplorable. There will be no money with which to meet pay-roll obligations and none with which to meet bills coming due for ma­ terials and supplies; and there will be demoral­ ization of the forces, here and on the Isthmus, now working so harmoniously and effectively, if there is delay in granting an emergency ap­ propriation. Estimates of the amount neces­ sary will be found In the accompanying re­ ports of the Secretary of War and the com­ mission. Department of State. Neither at home nor abroad Is there a suf­ ficient working force to do the business properly. Ia many respects the system which was ade­ quate to the work of twenty-five, or eve.n ten. years ago. Is Inadequate now. and should be changed. Our consular force should be classi­ fied, and appointments should be made to the several classes, with authority to the Execu­ tive to assign the members of each class to duty at such posts aa the interests of the ser­ vice require. Instead of the appointments be- iug made as at present to specified posts. There should be an adequate inspection ser­ vice, so that the Department may be able to- inform Itself how the business of each consu­ late Is being done, instead of depending upon casual private Information or rumor. The fee system should be entirely abolished, and a due equivalent made in salary to the officers who now eke out their subsistence by means of fees. Sufficient provisions should be made for a cierlcsl force in every consulate, composed entirely of Americans, Instead of the In­ sufficient provision now made, which compels the employment of great lumbers of citizens of foreign" countries whose services can be ob­ tained for less money. At a large part of our consulates the office quarters and the clerical force are inadequate to the performance of the onerous duties imposed by the recent provisions of our immigration laws as well ss by oar in­ creasing trade. Suitable provision should be mads for the ex­ pense of keeping our diplomatic officers more fully informed of what is being done from day to day in the progress of our uljjkmju tU affairs with other countries. The lack of such information, caused by Insufficient approprte: tlons available for cable tolls aud for clerical and messenger service, frequently puts our officers at a great disadvantage and detracts from their usefulness. The salary Ust should be readjusted. It does not now correspond either to tbe importance of the service to be rendered aud the degrees of ability and experience re­ quired in the different positions, or to the differences in the coat of Uvlng. la S»anj MM* tbe salaries are «alte Inadequate. Ell MEN PERISH IN LAKE Steamer OwjiSn Founders in Storm and EntirePf Crew Is Lost VESSEL HAS NARROW ESCAPE Cargo of Flaxseed Shifts on the Steamship Nye, but She Succeeds in -Making Port After Water Ruins . Half the Loaj& Chicago dispatch: The Chicago steamer Ira H. Owen, with a crew of nineteen men, foundered on Lake Su­ perior during the great storm of Nov. 28, and every person on board per­ ished. The fate of ship and crew be­ came certain Friday evening when the steamer Sir William Siemens arrived at Ashland and Captain M. &. -Cham­ berlain reported passing through wreckage from the Owen, When twelve miles east of Michigan Island in the Apostles group the Siemens ran Into a mass of chairs, stanchions, the top of a cabin and other debris, and floating in the midst of it were life preservers marked. "S. S. Ira E Owen." In addition to the Owen disasters to five big ships were reported, in­ creasing the list of wrecks to forty- three and swelling the property loss to $3,235,500. The total of lives now known to have been lost is forty-one. Men Lost on Owen. The Owen was loaded jfith grain from Duluttu The members of the crew, so far as could be learned, were as follows: J. B. Alger, second engineer. H. Buchanan, first engineer. Josenh Hulligan, captain, Thomas Honner, first mattfe M. Haggerty, second mate. B. N. Hook, oiler. v J. Jacobsen, wheelman. v'-l* J. Knudsen, lookout , ; ^ L. Montray, wheelman. C. McKay, lookout. . The last seen of the Owen was when she was sighted about forty miles off Outer Island of the Apostle group by the steamer Harold B. Nye, when the storm was at its height, Nov. 28. The Owen was then blowing dis­ tress signals, and seemed to be in a bad way. The Nye had all she could do to keep afloat herself, and could not respond to the signals. Then the snow set in again, shutting the dis­ abled boat out from view. When a lull came two hours afterward the ves­ sel had disappeared. Manager Gives Up Hope. The manager of the lost vessel Is Captain J. G. Keith, 522 West Jack­ son boulevard. When Informed of the finding of the wreckage Captain Keith reluctantly admitted that all hope was gone. "I do not understand what could have happened to the Owen," he said. "She had a cargo of 116,500 bushels of barley, which was a light load for the ship. I spent three days In Duluth before the Owen sailed, and I know no steamer ever went out in a more seaworthy condition." Captain Joseph Hulligan was a vet­ eran in lake service, and was well- known at every important like port The Owen was built at Cleveland in 1887, and has always been consid* ered especially stanch and Bea- worthy. She was insured for $100,< 000. Seldom does a ship have a mor* narrow escape from foundering than the steamer Nye experienced off Isle Royale, Lake Superior. The Nye had $240,000 worth of flaxseed on board, having left Duluth, Nov. 27. The slippery cargo shifted in the gale, and one man, William Sturtevant of Cleveland, the mate, was washed overboard. The steamer Colonel laid alongside the Nye for two hours. When, after forty-eight hours, the Nye succeeded in getting into TWb Harbors Friday, she was drawing twenty-six feet of water forward, when her marks should have shown seventeen. It was believed that the water in the hold had ruined at least half the cargo. HE WANTED A BETTER "HOLT# But It Was Unfortunate Time to Lay: Down Burden. \ My father, Oakes Thompson, vM resided at- North Hartford, Me., fn> 1836, employed one David Carver. H# also employed James Allen aa a me­ chanic in April of that year. On* morning the two men decided t6 spend the day at the village, and it was neo> essary to pass through water quit* a distance on the shore of Whitney Arriving at the lake, Allen said lie must return, as he had low shoes, but ' 1:S • rr-zm 8s3 STATE BOARD OF HEALTH QUITS Louisiana Doctors Angered by Jury Investigation of Fever Visitation. Ne«- Orleans, La., dlspktch: The Louisiana state board of health, Dr. Edmund Sauchon, president, has re­ signed in a body and the resignations of the entire body were forwarded to Baton Rouge. This action was pre­ cipitated by a persistent intimation of Gov. Blanchard that he wanted an in­ vestigation as to how yellow fever got into Louisiana and who was re­ sponsible and by his last action of calling upon the grand jury of Orleans parish to investigate. Although the resignation of certain members of the board has been rumored. It is said the grand jury is what incensed the members. IMPORT PARASITES FOR MOTHS Government Authorities Plan to 8pread Disease Among Destructive Insects. Washington dispatch: Secretary Wilson has issued a regulation per­ mitting the entry from Europe Into «*he United States of the parasite of the gypsy moth, parasites of the brown tail moth, parasitized gypsy moths and parasitized brown tail moths. They will be used in the war on the gypsy and brown tail moths, the parasites spreading disease among them. * Babe Smothers to Death. Webster City, Iowa, dispatch: When Mr. and Mrs. Mathew House of Dun- combe awoke Thursday morning they found their 5-weeks-old babe dead in bed. The child had been smothered by the covers _ Fire in Cigar Factory. New York dispatch: The cigar fac­ tory of R. A. Bachla ft Co., 26 Fulton street, was damaged to the extent of $25,000 by fire. One hundred employes are out of work. • Laid Him Down to Get a Better HoltfC lake, which had overflowed its banks. Carver said he could carry him over, as he had tall boots. So he took Allen in his arms as he would a child, but^ though a strong man, he had mata free use of hard cider that morning; and Allen was a heavy man. He thera> fore laid down his burden in the eoii ice water. • Allen struggled to his feet macfe enraged, and demanded an explana­ tion, and Carver replied that he only laid him down to get a better |»* --Boston Herald. " STRAW VOTE WAS NOT TAKEN. Public Nuisance Had Second Thought and Refrained. "I suppose it's a little early, but----**. said the man with the notebook anfl pencil as he walked to the front of tha car and addressed the first passenger on his right. "Oh. no--none too early,n waa tli reply. . -- "If you think it is, just say bo." i'i "But I don't" "There are men who hide their "po­ litical opinions under a hat, and there are others who are perfectly independ­ ent." "Very true." "As you seem to be one of the latter m- Addressed the First Passenger. and as you admit that it is none ts» early, I will " "Do you think it none too early yo|i|̂ | self?" interrupted the other. "Why, no." J "Then pick ont the spot on the •treat you prefer to light on." ; ® "It may be," said the man with tlto notebook, "that we don't mean tho same thing. I mean that it is none too early to take straw votes for the next Presidency." "And I mean that It Is none too early to ta*ke you by the neck and bounce you off the car just as soon a* you ask me the name of my candi­ date!" Then the notebook and pencil, went pocketed, the man sat down in a'weary way, and the car rolled on and on an< the conductor knocked down fares.--Cincinnati Enquirer. ;V-. Raincoat for a Bear. There Is one big brown bear in town that gets coddled beyond belief, says f the New .York Press. He belongs to a • Sixth avenue furrier. He is not a live bear. Even the memory of the oldest passenger on the elevated road goeth not back to the time of that bear's demise; yet, in spite of his long period as a "dead one," he is the sleek? est, best-groomed bear in New York, j That is because the furrier takes such good care of him. Storms are never allowed to beat upon his glossy coat. He cannot bo humored to the extent of being brought Indoors during a downpour because it Is his business to stand on a pedestal outside and drum up trade, but tbe next best thing is done for him. He ia provided with a raincoat It covera him from snout to tail, so no matter how hard the rain may beat or tho wind may blow he is Insured Sroi| damage thereby. Curious Cosl Cellar. In the churchyard of a certain Welsh village a unique storing pladi is provided for the coal used to heat the churchyard during the winter months. In the churchyard stand foar large yew trees, prominent landmark* known to all the villagers. But theso grand old yews are not only ornamefev tal; one, at least, serves a good puf»i pose, for in a hollow in one of then* which is protected by a door, is storoff the church's supply of coaL Rainmaking in India. A rainmaker in India has an appal*- atus copsisting of a rocket capable of rising to the height of a mile, contain­ ing a reservoir of ether. In its do> scent it opens a parachute, which causes it to come down slowly. Tho ether is thrown out in fine spray, and its absorption of heat is said to lowst the temperature about it sufficiently tn condense the vapor and prodttQ| * limited shower. \J Albino Hedgehog. -4 i *• Ned end Frank Emery have a curi­ osity in the nature of a milk-whito hedgehog which they found while out coon hunting and put in a cage for safekeeping -- Manchester CN. E) Union. m