THE MESSAGE lOfOESS President Roosevelt's Annual Communication to the National Legislators The Isthmian Canal and the Pan« ama Revolution Are Given Lengthy Consideration Say» the Department of Commerce and Labor Will Go Far Towards Solv ing the Trust Problem. Calif Attention to Undesirable Immigration— Asks for More Stringent Naturaliza tion Laws and Enforcement Wnnta ('•mmUsloii to Investigate .Needs »112 Merchant Marin*—l'ont Office a>«l I'nbllc I. and I'ruuifa —Our I<'oreit;u Helatioua. To the Senate and House of Representa tives: The country is to be congratulated on the amount of substantial achieve ment which has marked the past year both as regards our foreign anl as regards our domestic policy. With a nation as with a man the most Important things are those of the house hold. and therefore the country is espe cially to be congratulated on what has been accomplished in the direction of pro viding tor the exercise of supervision over the great corporations and combinations of corporations engaged in interstate com merce. The congress has created the de partment of commerce and lnbor, includ ing the bureau of corporations, with for the first time authority to secure proper pub licity of such proceedings of these great corporations the public has the right to know it has provided for the expedit ing of suits for the enforcement of tlie fed eral anti-trust law; and by another law- It has si-cured equal treatment to all pro ducers in the transportation of their goods, thus taking a long stride forward in milk ing effective the work of the interstate commerce commission. Iftircau of Corporation*. The preliminary work of the bureau of corporations in the department has shown the wisdom of its creation. Pub licity in corporate affairs will tend to do away with ignorance, and will afford tacts upon which intelligent action may be taken. Systematic, intelligent inves tigation is already developing fuels tho knowledge of which is essential to a right understanding of the needs and duties ol the business world. The corporation •which is honestly and fairly organized, whose managers In the conduct of its business recognize their obligation to deal squarely with their stockholders, their competitors, and the public, has nothing to fear from such supervision. The purpose of this bureau is not to em barrass or assail legitimate business, but to aid in bringing about a better indus trial condition—a condition under which there shall be obedience to law and rec ognition of public obligation by ail cor porations, great or small. The depart ment of commerce ant! labor will be not only the clearing house for information regarding the business transactions of the nation, but tiie executive arm of the government to aid in strengthening our domestic and foreign markets, in perfect ing our transportation facilities, in build ing up our merchant marine, In prevent ing the entrance of undesirable immi grants, in improving commercial and in dustrial conditions, and in bringing together on common ground those necessary part ners in industrial progress—capital and labor. Commerce between the nations is steadily growing in volume, and the tendency of tho times is toward closer trade relations. Constant watchfulness Ss needed to secure to Americans the chance to participate to the best advan tage in foreign trade: and we may confi dently expect that the new department •will justify the expectation of its cre ators by the exercise of this watchful ness. as well as by the businesslike ad ministration of such laws relating to our Internal affairs sis are intrusted to Its care. Capital and Labor. The consistent policy of tlie national gov ernment, so far as It has the power, is to hold in check the unscrupulous man, •whether employer or emp.oje; but to re fuse to weaken individual initiative or to hamper or cramp tho industrial develop ment of tlie country. We recognize that this is an era of federation and combina tion. in which great capitalistic corpora tions and labor unions have become lactors of tremendous importance in ail industrial Centers. Hearty recognition is given tlie far-reaching, beneficent work which has been accomplished through both corpora tions and unions, and the line as between different corporations, as between different unions, is drawn a.sit is between different individuals; that is, it is drawn on con duct, the effort being to treat both organ ized capital and organized labor alike; ask ing nothing iave tl.at the interests of each shall be brought into harmony with the Interests of the general public, and that the conduct of each S>".AII conform to the fundamental rules of ibedience to law, of individual freedom, and of justice and fair dealing towards all. Whenever either corporation, labor union or individual dis regards the law or acts in a spirit of ar bitrary and tyrannous Interference with the rights of others, whether corporations or individuals, then where the ftdetai gov ernment has Jurisdiction, it will see to it that the misconduct is stopped, paying not the slightest heed to the position or power of the corporation, the union or the indi vidual, but only to oi>e vital fait—that is, th* ejuestion whether or not the conduct ol ».h«! individual or aggregate of individ uals Is fn accordance with the law of the land. Every man must be guaranteed liis liberty and his right to do as he' likes with his property or his labor, so long as does not Infringe the rights of others. Ko man is above the law and no man lis be low- it; nor do we ask any man's permis sion when we require him to obey it. obe dience to the law Is demanded as a right; not asked as a lavor. tteeeipiN and I3xi»eiirilturei». From all sources, exclusive of the post al service, the receipts of the government for the last fiscal year aggregated $56u,35ti,67i. The expenditures for tlie sam.- period were $5(>ii,099,0U7 1 the surplus for the fiscal year being $51,297,667. The indications are that the surplus for the present fiscal year will be very small, if. Indeed, there fee any surplus. From July to Novem ber the receipts from customs were ap proximately, $3,000,000 less than the re ceipts from the same source for a corre sponding portion of last year. Should this decrease continue at the sam" ratio throughout the fiscal year, the surplus •would be reduced by, approximately :$30,000,MX). Should the revenue fre>m cus toms suffer much further decrease dur ing the fiscal year, the surplus would •vanish, I'i it ane In 1 I. eg I win 11 <• a Not Needed. The integrity of our currency is be yond question, and under present condi tions it would be unwise and unnecessary to attempt a reconstruction of our en tire monetary system. The same lib erty should be granteil the secretary of the treasury to deposit euctoms re ceipts as is granted him in the deposit of receipts from other sources. In my mes- sage of December 2. 1902, I called atten tion to certain needs of the financial .sit uation, and I again ask the considera tion of the congress for these questions. The Merchant Murine. A majority of our people desire that steps be taken in the Interests of Amer ! lean shipping, so that we may once more | resume our former position in the ocean I carrying trade. Hut hitherto the differ ! ences of opinion as to the proper method j of reaching this end have been so wide that it has proved Impossible to secure the adoption of any particular scheme. Hav ing in view these tacts, 1 recommend that the congress direct the secretary of the navy, the postmaster general and the sec retary of commerce and labor, associated with such a representation from the sen ate and house of representatives as the congress in its wisdom may designate, to serve as a commission for the purpose of investigating and reporting to the congress at its next session what legislation Is de sirable or necessary for the development of the American merchant marine and American commerce, and Incidentally of a national ocean mail service of adequate auxiliary naval cruisers and naval reserves. While such a measure is desirable in any | event, it Is especially desirable at this time, in view of the fact that our present gov ernmental contract for ocean mail with the American line will expire in ISOS. Ourocoan mull act was passed In lh'.tl. In 1595 our 2u-knot transatlantic mail line was equal to any foreign line. Since then the Ger mans have put on 23-knot steamers, and the British have contracted for 24-knot steamers. Our service should equal the I best. If it doos not. the commercial pub -1 lie w ill abandon It. If we are to stay in the business it ought to be with a full under standing of the advantages to the country on one hand, and on the other with exact knowledge of the cost and proper methods of carrying it on. Moreover, lines of cargo ships are of even more importance than fast mail lines; save so far us the latter can be depended upon to furnish swift auxiliary cruisers in time of war. The es tablishment of new lines of cargo ships to South America, to Asia, and elsewhere j would be much in the interest of our com- I cierc'.al expansion, I winlKratloß. I We cannot have too much immigration ' of the right kind, and we should have 1 none at all of the wrong kind. The need Is to devise some system by which unde sirable immigrants shall be kept out en i tirely. while desirable Immigrants are | properly distributed throughout the coun try. At present some districts which i need immigrants have none; and In oth ! ers, where the population is already eon j (jested, immigrants come in such numbers | as to depress the conditions of life for those already there. During the last two years the immigration service at New York has been greatly improved, and the ] corruption and inefficiency which former ly obtained there have been eradicated, j This service has just been investigated | by a committee of New York citizens of nigh standing, Messrs. Arthur V. Hrlesen, Lee K Prankel, Eugene A. Philbin, Thomas W. Hynos and Kalph Trautman. Their report deals with the whole situ ation at length, and concludes with cer , tain recommendations for administrative and legislative action. It is now recelv j ing the attention of the secretary of j commerce and labor. Naturalization Fraud*, j The special Investigation of the subject ! of naturalization under the direction of i the attorney general, and the consequent ■ prosecutions, reveal a condition of af | fairs calling for the immediate attention of congress. Forgeries and perjuries ot shameless and flagrant character have I perpetrated, not only in the dense centers of population, but ihroughout the | country; and it is established beyond doubt that very many so-called citizens I of the L'nlted States have tio title what i ever to that right, and are asserting and I enjoying the benefits of the same through the grossest frauds. It is never to be forgotten that citizenship is. to quote the words recently used by the supreme court ot tlie United States, an "ines timable heritage," whether it proceeds ! from birth within the country, or is ob tained by naturalization; and we poison tlie sources of our national character and i strength at tlie fountain, if tlie privilege is claimed and exercised without right, j and by means of fraud and corruption. The body politic cannot be sound and healthy if many ot its constituent mem i bers claim thoir standing through the ; prostitution of the high right and calling of citizenship. It should mean something ! to become a citizen of the United States; i and in the process no loophole whatever I should be left open to fraud. The federal grand Jury lately in session in New York city dealt with this subject i and made a presentment which states the j situation briefly and forcibly and contains ; important suggestions for the considera ! tlon of* the congress. This presentment is j included as an appendix to the report of the attorney general. Uovernmeut Department Fraud*. I In my last annual message, in connection ! with the subject of the due regulation of I combinations of capital which are or may become injurious to the public. I recom mended a special appropriation for tie I better entorcement of the anti-trust law j as it now stands, to be expended under ' the direction of the- attorney general. Ac j cordingly (by the legislative, executive and judicial appropriation act of Feb rum y 25. | 1 '..Ho, H2 Stat., &54, IW4), tho congress appro i priated, lor the purpose of enforcing the I various federal trust and interstate com ! fntrce laws, the sum of sjoo.oou, to be ex pefiued under the direction ot the attorney | general in the employment of special coun sel and agents in the department of Justice to conduct proceedings and prosecutions under said laws In the courts of the L'nlted 'States, 1 now recommend, as a matter of I the utmost importance and urgency, the extension of the purposes of this appro | priation. so that it may be available, under the direction of the attorney general, and ! until used, for tho due enforcement of the ; laws or the United States in general and especially of the civil and criminal laws I relating to public lands and the law.- relat : lng to postal crimes and offens.s and the ; subject of naturalization. Hecent investi -1 gations have shown a deplorable state of I affairs iti these three matters of vital con i cern. By various frauds and bv forgeries .and perjuries, thousands of acres of the public domain, embracing lands of differ ent character amf extending through vari ( ous sections of tlie country, have been dis honestly acquired. It Is hardly necessary I to urge the importance of recovering these dishonest acquisitions, stolen from the peo i pie, and of promptly and duly punishing i the offenders. 1 speak in another part of this message of the widespread crim> s by which the sacred right of citizenship is falsely asserted and that "Inestimable heritage" perverted to base ends. By sim ilar means—that Is. through frauds, forger ies and perjuries, and by shameless briber ies—the laws relating to the proper con duct of the pubitc service in general and : to the due administration of the post office department have been notoriously violated and many Indictments have been found! and tho consequent prosecutions are iri ' course of hearing or on the eve thereof. For the reasons thus Indicated, and so that j the government may be prepared to en > force promptly and with the greatest effect i the due penalties for such violations of law, and to this end may be furnished with | sufficient instrumentalities and competent > legal assistance for the investigations and trials which will bo necessary at many ; different points of the country, I urge upon j the congress the necesiflty o'f making the i said appropriation available for immediate use for all such purposes, to be expended I under the direction of the attorney general. New Kitraelltion TrentieN Needed. I Steps have been taken by the state de ] partment looking to the making of | bribery an extraditable offense with for eign powers. The need of more effective | treaties covering this crime Is manifest. | The exposures and prosecutions of offi cial corruption in St. Louis, Mo., and uther cities and states have resulted in a number of givers and takers of brlbts becoming fugitives in foreign lands. Bribery has not been Included In e xtra dltion treaties heretofore, as the neces sity for it has not arisen. While there may have been as much official corrup tion In former years, there has b'-en more developed and brought to light in tha Immediate p.-.it than in the preceding c«ntury of our country's history. it jfw-jld be the policy of the L'nlted States to have nei place on earth where a cor rupt man fleeing from this country can rest in peace. There is no reason why bribery ahould not be Included in all treaties as extraditable. The- recent amended treaty with Mexico, whereby this crime was putin the list of extra ditable offenses, has established a salu tary precedent in this regard. Under tills treaty the state department has asked, and Mexico has granted, the extradition of one of the St. Louis bribe givers. The Alaskan Ronndary. For several years past the rapid fleveiop ment of Alaska and the establishment of CAMERON COUNTY PRESS. THURSDAY, DECEMBER 17, 1903. growing American interests In regions theretofore unsurveyed and Imperfectly known brought Into prominence tiie urgent necessity of a practical demarcation of the boundaries between the jurisdictions of the United! States and Great Britain. Al though the treaty of 1825 between Great Britain and Russia, the provisions of w hich were copied In the treaty of I.SC7, whereby Russia conveyed Alaska to the United States, was positive as to tho control, lirst by Russia and later by the United States, of a strip of territory along the continental mainland from the western shore of Port land canal to Mount St. Klias, following and surrounding the indentations of the coast and including the islands to t!T* west ward. its description of the landward mar gin of the strip was indefinite, resting on tho supposed existence of a continuous ridge or range of mountains skirting the coast, as figured In the charts of the early navigators. It had at no time been possible for either party In Interest to lay down, under the authority of the treaty, a line so obvlot sly exact "according to its provi sions as to command the assent of the other. After unavailing attempts to reach an understanding through a Joint high com mission, followed by prolonged negotia tions, conducted in an amicable spirit, a convention between the United Stati sand Great Britain was signed. January 24. 1903, providing for an examination of the sub ject by a mixed tribunal of six members, three on a side with a vleW to its final dis position. Ratifications were exchanged on March 3 last, whereupon the two govern ments appointed tlielr respective members. Those on behalf of the United States were Klihu Root, secretary of War; Henry Cabot Lodge, a senator of the United States, and George Turner, an ex-Senator of the United States, while Or at Britain named the Right Honorable Lord Aiver stone, lord chief justice of England; Sir Louis Amable Jette, K. C. M G . retired judge of the supreme court of Quebec, and A. 11. Aylesworth, K. C., of Toronto. This tribunal met in London on September 3. under the presidency of Lord Aiverslone. Tho proceedings were expeditious, and marked by a friendly and conscientious spirit. The respective case*, counter cues and arguments presented the Issues clear ly and fully. On the 20th of October a ma jority of the tribunal reachtd and signed an agreement 011 ail the questions submit ted by the terms of the convention. By this award the right of the United States to the control of a continuous strip or bor der of the mainland shore, skirting all the tide-water inlets and sinuosities of the coast, Is confirmed; the entrance to Port land canal (concerning which legitimate doubt appeared) is defined as passing by Tongass inlet and to the northwestward of Wales and Pearse Islands; a line is drawn from the head of Portland canal to the fifty-sixth degree of north latitude; and the Interior borderline of the strip is fixed by lines connecting certain mountain sum mits lying between Portland canal and Mount St Ellas, and running along the crest of the divide separating the coast slope from the inland watershed at the only part of the frontier where the drain age ridge approaches the coast within the distance of ten marine leagues stipulated by the treaty as the extreme width of the strip around tht heads of Lynn canal and its branches. The award is self-executing 011 the vital points. To make it effective as regards the others it only remains for the two governments to appoint, each on its own behalf, one- or more scientific experts, who shall, with all convenient speed, pro ceed together to lay down the boundary line in accordance with the decision of the majority of the tribunal. I recom mend that the congress make adequate provision for the appointment, compen sation and expenses of the members to serve on this joint boundary commis sion on the part of the I'nited States. Claims Again*! Venezuela. It will be remembered that during the second session of the last congress Great Britain, Germany and Italy form'd tin alliance for the purpose of blockading the ports of Venezuela and using such other means of pressure as would secure a settlement of claims due, as they al leged. to certain of their subjects. Their employment of force for the collection of these claims was terminated by an agree ment brought about through the offices of the diplomatic representatives of the United States at Caracas and the gov ernment at Washington, thereby ending a situation which was bound to cause increasing friction, arid which jeoparded the peace of the continent. tender tills agreement Venezuela agreed to set apart a certain percentage of the customs re ceipts of two of her ports to be applied to the payment of whatever obligations might bo ascertained by mixed commis sions appointed for that purpose to be due from her, not only to the three pow ers already mentioned, whose proceed ings against l.er had resulted in a'state of war but also to the United States, France, Spain. Belgium, tin- Netherlands. Sweden and Norway, and Mexico, wh . had not employed force for the collection of the claims allegeei to be due to certain of their citizens. A demand was then made by the so called blockading powers that the sums ascertained to be due to their citizens by such mixed commission should be record ed payment in full before anything: was paid up in the claims of any of the so called pe-tu'e powers. Venezuela, on the other htm l, insisted that all her creditors should be paid upon a basis of exact equality. During the efforts to adjust this dispute it was suggested by the pow ers in Interest that it should be referred to me for decision, but I was clearly of the opinion that a far wb-er course would be to submit the question to the permanent court of arbitration at The Hague. It seemed to me to offer an ad mirable opportunity to advance the prac tice of the peaceful settlement of dis putes between nations and to secure for The Hague tribunal a memorable in crease of its practical importance. The nations interested in the controversy were so numerous, and in many Instances so powerful as to make it evident thiit beneficent result;; would follow from their appearance at the same time before the bar of that aug-ast tribunal of peace. Our hopes In that regard have been real ized. Russia and Austria are represented in the persons of tho learned and distin guished jurists who compose tie tr bunal, while Great Britain, Germany. France, Spain, Italy. Belgium, the Netherlands. Sweden and Norway, Mexico, the United States and Venezuela are represented by their respective agents and counsel. Such an Imposing concourse of nations present ing their arguments to and Invoking the decision of that high court 01' international justice and International peace can hardly fall to secure a like submission of many future controversies. The tuitions now ap pearing there will find It far easier to ap pear there a second time, while no nation can imagine its just pride will be lessened by following the example now presented. This triumph of the principle of interna tional arbitration Is a subject of warm con gratulation and offers u happy augury for the peace of the world. Relations nltli Turkey. Early in July, having received intelli gence, which happily turned out to be erroneous, of the assassination of our vice consul at Beirut, 1 dispatched a small seiuadixm to that port for such service as might be found necessary on arrival. Al though the attempt on the life of our vice consul had not been successful, yet the outrage was symptomatic of a' state of excitement and disorder which demanded immediate attention. The arrival of the vessels had the happiest result. A feeling of security at once took the place of the former alarm and disquiet; our officers were cordially welcomed by the consular body and the leading merchants, and or dinary business resumed its activity. Tlie government of the sultan gave-a consider ate hearing to the representations of our minister; the official w ho was regarded as responsible for the disturbed condition of affairs was removed. Our relations with the Turkish government remain friendly; our claims fonjsd(td on inequitable treat ment of some of our schools and missions appear to be in process of amicable adjust ment. Relations with China. The signing of a new commercial treaty with China, which took place at Shanghai 011 'he Bth o) October is a cause for sat isfaction. This act, the result of long dis cussion nnd negotiation, places our com mercial relation* with the great oriental empire on a mere satisfactory footing than tl.ey have 1 ver heretofore enjoyed, it pro vieles not only for the ordinaty rights and privileges oi diplomatic and consular officers, but also for an important exten sion of our commerce by Increased facility of access to Chinese ports, and for the relief of trade by the removal of some 01 the obstacles which have embarrassed it In the past The Chinese government en gages. on fair and equitable conditions, Wllich will probably be accepted by the principal commercial nations, to abandon the levy of "liken" and other transit dues throughout the empire, and to introduce other desirable administrative reforms. Rural Fret* Delivery. The rural free-delivery service haa been steadily extended. The attention of the congress is asked to the (question of the compensation of the letter carriers and clerks engaged in the postal service, es pecially on the new rural free-delivery route.-). Mete routes have been installed since the lirst of July last than in any 'j*e period in the department's history. While a due regard to economy must "be kept in mind in the establishment of new S routes, yet the extension .>f the jural | free-delivery system must be continued, j for reasons of sound public policy. No ! governmental movement of recent years ! has resulted in greater immediate benefit Ito the people of the country districts. Rural free delivery, taken in connection with the telephone, the bicycle, and the trolley, accomplishes much toward les sening the isolation of farm life and making it brighter and more attractive. Inter 11 alio 11111 Expositions. I trust that the congress will continue to favor In all proper ways the Louisiana I I urchaso exposition. This exposition com memorates the Louisiana purchase, which . the "„ rst great step in the expansion wnlch mad» us a continental nation The expedition of Lewis and Clark across the I c P ll Unent follow**! thereon, and marked the beginning of the process of exploration and colonization which thrust our national boundaries to the Pacific. The acquisition of the Oregon country. Including the pres ent states of Oregon and Washington, was a fact of immense importance in our his l tory; first giving us our place on the Pa j cilic s -aboard. and making ready the way for our ascendency in the com merer of the | greatest of the oceans. The centennial of our establishment upon the western coast by the expedition of Lewis and Clark Is to be celebrated at Portland, Ore., by an exposition In the summer of 1905, and this I event should receive recognition and sup i port from the national government. Onr luaiiiur Possessions, i T recommend that an appropriation be made for building lighthouses in Hawaii, t and taking possession of those already built. The territory should be reim bursed for whatever amounts it has al ready expended for lighthouses. The governor should be empowered to sus pend or remove any official appointed by him, without submitting the matter to | the legislature. j Of our insular possessions the Philip l pines and Porto Hico It is gratifying to , say that their steady progress has been such as to make it unnecessary to spend much time In discussing them. Yet the congress should ever keep in mind that a peculiar obligation rests upon us to further in every way tha welfare of these communities. Tho Philippines should be knit closer to us by tariff ar rangements. It would, of course, be im possible suddenly to raise the people of the islands to the high pitch of industrial prosperity and of governmental efficiency to which they will in the end by degrees attain; and the caution and moderation shown in developing them have been among the main reasons why this devel opment has hitherto gone on so smooth ly. Scrupulous care has l>e%n taken In the choice of governmental agents, and the entire elimination of partisan politics from the public service. The condition of the islanders is in material things far better than ever before, while their gov ernmental, intellectual and mora! ad vance has kept pace with their material advance. No one people ever benefited another people more than we have bene fited the Filipinos by taking possession of the islands. The Public Lands. A gratifying disposition ha-s been evinced by those having unlawful in clo.sures of public land to remove their fences. Nearly 2,ooo,erfX) acres so In closed have been thrown open on demand. In but comparatively few cases has It been necessary togo into court to ac complish this purpose. This work will be vigorously prosecuted until all unlawful inclosures have been removed. Experience has shown that in the west ern states themselves, as well as in the rest of the country, there is widespread conviction that certain of the public land laws and the resulting administrative practice 110 longer meet the present needs. The character and uses of the remaining public lands differ widely from those of the public lands which congress had es pecially in view when these laws were passed. The rapidly increasing rate of disposal of the public lands Is not fol lowed by a corresponding increase in home building. There is a tendency to mass in large holdings public lands, es pecially timber and grazing lands, and thereby to retard settlement. 1 renew and emphasize iny recommendation of last year that so far as they are available for agriculture in its broadest sense, and to whatever extent they may be re claimed under the national irrigation law, tho remaining public lands should be held rigidly for the home builder. Tho atten tion of the congress is especially direct ed to the timber and stone law, the desert-land law, and the commutation clause of the homestead law. which in their operation have in many respects conflicted with wise public-land policy. The discussions in the congress and else where have made It evident that there Is a wide divergence of opinions between those holding opposite views on these subjects; and that the opposing sides have strong and convinced representa tives of weight both within and without the congress; the differences being hot only as to matters of opinion but as to matters of fact Tn order that definite inlormation may be available for the use of the congress, I have appointed a com mission composed of W. A. Kichards, commissioner of the general land office; Glfford Plnchot, chief of the bureau of forestry of the department of agricul ture. and F. 11. Newell, chief hydrogra pher of the geological survey, to report at the earliest practicable moment upon the condition, operation and effect of the present land laws and on the use, con dition, disposal and settlement of the public lands. The commission will report especially what changes in organization, laws, regulations and practice affecting the public lands are needed to effect the largest practicable disposition of the pub lic lands to actual settlers who will build permanent homes upon them, and to se cure in permanence the fullest and most effective use of the resources of tho pub lic lands; and it will make such other reports and recommendations as Its study of these Questions may suggest. The commission Is to report immediate ly upon those points concerning which Its Judgment Is clear; on any point upon which it has doubt It will take the time necessary to make investigation and reach a final judgment. Tlie Army nud Xavy, The effect of the laws providing a gen eral staff for tho army and for the more effective use of the national guard has been excellent. Great improvement has been made in the efficiency of our army In recent years. Such schools as those erected at Port Leavenworth and Port Riley and the institution of fall maneuver work accomplish satisfactory re-sults. The good effect of these maneuvers upon the national guard is marked, and ample appropriation should be made to enable the guardsmen of the several states to share In the benefit. The government should as soon as possible secure suitable permanent camp sites for military man euvers in the various sections of the country. Tho service thereby rendered not only to the regular army, but to the national guard of the several states, will be so great as to repay many times over the relatively small expense. We should not rest satisfied with what has been done, however. The only people who are contented with a system of promotion by mere seniority are those who are con tented with tho triumph of mediocrity over excellence. On the other hand a system which encouraged the exercise of social or political favoritism In promo tions would be even worse. But It would surely be easy to devise a method of promotion from grade to grade In which the opinion of the higher officer* of the service upon the candidates should be decisive upon the standing and promotion ->f the latter. Tiie Xnvr. I heartily congra'u'.ate the congress upon the steady progress in building up the American navy. We cannot afford a let-up In this great work. To stand still means togo back. There should be 110 cessation in adding to the effective units cf the light ing strength ef the licet. Meanwhile the navy department and the officers of the navy are doing well their part by provid ing constant service at sea under conditions akin to those of actual warfare. Our offi cers and enlisted men are learning to han dle the battleships, cruisers and torp. do boats with high efficiency in fleet and squadron formations, and the standard of marksmanship Is being steadily raised. The best work ashore is indispensable, but the highest duty of a naval officer is to exercise command at sea. It is eminently desirable, however, that there should be provided a naval general staff on lines similar to those of the general staff lately created for the army. Within the navy department itself the needs of the service have brought about a system under which the duties of a general staff are partially performed; for the bureau of navigation has under its direction the war college, the office of naval intelligence and the board of inspection, and has been In close touch with the general board of the navy. But though under the excellent offi cers at their head, these boards and bureaus do geiod work, they have not the authority j of a general staff, and have not sufficient scope to Insure a proper readiness for emergencies. We need the establishment by law of a body of trained officers, who shall ex* rclse a systematic control of the military affairs of the navy, and beauthor ized advisers of the secretary concerning it. Tlie Isthmian Canal. By the act of June 28. 1902, the congress authorized the president to enter into treaty with Colombia for the bulld'ng of the canal across the Isthmus of Panama; It being provided that in the event of failure to secure such treaty after the lapse of a reasonable time, recourse should be had to building a canal through J Nicaragua. It hits not been necessary to 1 consider this alternative, as I am enabled ! to lay before the senate a treaty provid- I ing for the building of the canal across the Isthmus of Panama. This was the [ route which commended Itself to the de | liberate Judgment of the congress, and | we can now aceiuire by treaty the right to construct the canal over this route. The question now, therefore, is not by which route the isthmian etanal shall be built, for that question has been definite- I ly and Irrevocably decided. The question is simply whether or not we shall have an Isthmian canal. When the congress directed that we should take the Panama route under treaty with Colombia, the essence of the condition, of course, referred not to the government which controlled that route but to the route Itself; to the territory I across which the route lay. not to the name which for the moment the territory i bore on the map. The purpose of the law was to authorize the president to make a treaty with tho power in actual con trol of the isthmus of Panama. This : purpose has been fulfilled. iMtliiuiaa Treaty Obligations. In the year IMS this government en tered into a treaty with New Granada, : the predecessor upon the Isthmus of the Republic of Colombia and of the present Republic of Panama, by which treaty it was provided that the government and i citizens of the United States should al ways have free and open right of way or transit across the Isthmus of Panama by any modes of communication that might be constructed, while in return our government guaranteed tho perfect neu trality of the above-named isthmus with the view that the free transit from the I one to the other sea might not be inter rupted or embarrassed. The treaty vest ed in the United States a substantial property right carved out of the rights of sovereignty and property which New ' Granada then had and possessed over the ■•aid territory. The name of New Gran ada has passed away and its territory has been divided. Its successor, the gov -1 ernment of Colombia, has ceased to own j any property in the isthmus. A new republic, that of Panama, which was at 1 one time a sovereign state, and at an ; other time a mere department of the suc i cessive confederations known as New i Granada and Colombia, has now succeed ed to the rights which first one and then the other formerly exercised over the isthmus. But as long as the isthmus en -1 dures, the mere geographical fact of Its I existence, and the peculiar Interest there j in which is reeiuired by our position, perpetuate the solemn contract which binds the holders of the territory to re j spect our right to freedom of transit across it, and binds us in return to safe guard for the isthmus and tho world the exercise of that inestimable privilege. The true interpretation of the obligations upon which the United States entered in this treaty of 1X46 has been given repeat edly in the utterances of presidents and 1 secretaries of state. For 400 years, ever since shortly nfterthe discovery of this hemisphere, the canal across the isthmus has been planned. For twoscore years it has been worked at. When made it is to hist for the ages. It Is to alter the geography of a continent and the trade routes of the world We have shown by every treaty we have negotiated or attempted to negotiate with the peoples in control of the isthmus and with foreign nations in referi nee thereto our consistent good faith in observing our obligations; on the one hand to the peoples of the isthmus, and on the other hand to the civilized world whose commercial rights we are safe guarding and guaranteeing by our action. We have done our duty to others In letter and spirit, and we have shown the utmost forbearance in exacting our own rights. Colouillia's Repudiation of Treaty. Last spring, under the act above re ferred to, a treaty concluded between the representatives of the Republic of Colom bia and of our government was ratified by the senate. This treaty was entered Into at the urgent solicitation of the peo ple of Colombia and after a body of ex perts appointed by our government es pecially togo Into the matter of the routes across the isthmus had pro nounced unanimously in favor of Panama route. In drawing up this treaty every concession was made to the people and to the government of Colombia. We were more than just in dealing with them. Our generosity was such as to make it a serious question whether we had not gone too far In their in terest at the expense of our own: for in our scrupulous desire to pay all possible heed, not merely to the real but even to the fancied rights of our weaker neigh bor. who already owed so much to our protection and forbearance, we yielded In all possible ways to her desires in drawing up the treaty. Nevertheless the government of Colombia not merelv repudiated tho treaty, but repudiated it In such manner as to make it evident by the time the Colombian congress a( *- journed that not the scantiest hope re mained of ever getting a satisfactory treaty from them. The government of Colombia made the treaty, and yet when the Colombian congress was called to ratify it the vote against ratification was unanimous. It does not appear that the government made any real effort to se cure ratification. Ite'volntlon In Pannma. Immediately afte.r the adjournment of the congress a revolution broke out in Panama. The people of Panama had long been discontented with the Republic of Colombia, and they had been kept quiet only by the prospect of the con clusion of the treaty, which was to them a matter of vital concern. When it be came evident that the treaty was hope lessly lost, the people of Panama rose literally as one man. Not a shot was fired by a single man 011 the Isthmus in the interest of the Colombian govern ment. Not a life was lost in the accom plishment of the revolution. The Colom- 1 blan troops stationed 011 the isthmus, who had long been unpaid, made com mon cause with the people of Panama, and with astonishing unanimity the new republic was starte-d. The duty of the I'nited States In the premises was clear. In strict accordance with the principles laid down by Secretaries Cass and Seward In the official documents above quoted, the United States gave notice that it would permit the landing of no expedi tionary force, the arrival of which would mean chaos nnd destruction along the line of the railroad and of the proposeel canal, and an interruption of transit as an Inevitable consequence. Previous isthmian Dint n r lin neen. When these events happened. 57 years had elapsed since the United States had entered into its treaty with New Granada. During that time the governments of New- Granada and of its successor, Colombia, have been in a turmoil. The experience of over half a century has shown Colombia to be utterly incapable of keeping order 011 the Isthmus. Only the active inter- , ference of the United States has enableel her to preserve so much as a semblance of sovereignty. Hnd it not been for the. ex ercise by the United States of the police power In her Interest, her connection with the isthmus would have been sun dered long ago. Tn ISO 6, in ISGO, In 1£73, in 18}.f>, In 1801, and again in 1902. sailors and marines from United States warships wire forced to land in order to patrol the Isth mus. to protect life and property and to see that the transit across the Isthmus was kept open. In 1861, in 1562, in ISSS, and In I'JtiO the Colombian government asked that the United States government would land troops to protect Its interests and maintain order 011 the isthmus. Perhaps the most extraordinary request !s that which ha# just betn received and which runs as ft>l lows: Colombia's l.atext Proposition. "Knowing that revolution has already commenced in Panar:.i |an eminent Co lombian| says that it the government of the United States will 'and troops to pre serve Colombian sov' relgnty. and the transit, if requested by Colombian charge d'affaires, this government will declare martial law; and, by virtue of vested con | stltutional authority, when public order is disturbed, will approve by decree the j ratification of the canal treaty as signed; or, if the government of the United States ! prefers, will call extra session of the con gress—with new and friendly members— ; next May to approve the treaty. fAn emi nent Colombian) has the perfect confidence i of vice president, he says, arid II It became necessary will goto the isthmus or send representative there to adjust matters along above lines to the satisfaction of the people there." This dispatch is noteworthy from two standpoints. Its offer of Immediately guaranteeing the treaty to us Is in sharp | contrast with the positive and contempt uous refusal of the congress which has just closed its sessions to consider favorably i such a treaty; it shows that the govern ! m'-nt which made the treaty really had ab solute control over the situation, but did | not choose to exercise this control. The ; dispatch further calls on us to restore or j der and secure Colombian supremacy in j the isthmus from which the Colombian gov ornment has just by Its action decided to bar us by preventing tho construction of the canal. Importnnt to Us, The control. In the interest of the com merce and traffic of the whole civilized world, of the means of undisturbed transit across the isthmus of Panama has become of transcendent importance to toe; United States. We have repeated ly exercised this control by intervening in the course of dor/ stic dissension, and by protecting the territory from foreign invasion. In 1853 Mr. Everett assured the Peruvian minister that we should not hesitate to maintain the neutrality of tho isthmus in the case of war between Peru and Colombia. In 1X64 Colombia, whicn has always been vigilant to avail Itself of its privileges conferred by the treaty, expressed Its expectation that in the event of war between Peru and Spain the United States would carry into ef fect the guaranty of neutrality. There have been few administrations of the state department in which this treaty has not, either by the one side or the other, been used as a basis of more or less important demands. It was said by Mr. Pish in IX7I that the department of state had reason to believe that an at tack upon Colombian sovereignty on the isthmus had, on several occasions, been averted by warning from this govern ! ment. In IXSO, when Colombia was under t the menace of hostilities from Italy in the Cerruti case, Mr. Bayard expressed I the serious concern that the United ] States could not but feel, that a Euro : pean power should resort to force against a sister republic of this hemisphere, as j to the sovereign and uninterrupted use of i a part of whose territory we are guar ! antors under the .solemn faith of a treaty, i Tho above recital of facts establishes I beyond question: First, that the United j States has for. over half a century pa- I tiently and in good faith carried out its i obligations under the treaty-of IM6; sec l ond. that when for the first time it be came possible for Colombia to do any** thing in requital of the services thus re peatedly rendered to it for 57 years by the United States, the Colombian gov ernment peremptorily and offensively re fused thus to do its paxt, even though to do so would have been to its advan tage and immeasurably to tho advantage ot the state oi Panama, at that time un der its Jurisdiction; third, that through out this period revolutions, riots, and factional disturbances of every kind hav» occurred one after the other in almost uninterrupted succession, some of there lasting for months and even for years, while the central government was unable to put them down or to make peace wltl» the rebels; fourth, that these disturb ances instead of showing any sign of abating have tended to grow mor* numerous and more serious in the imme diate past; fifth, that the control of Colombia over the Isthmus of Panama, | could not be maintained without tha armed intervention and assistance of the I United States. In other words, the gov ernment of Colombia, though wholly un able to maintain order on the isthmus, has nevertheless declined to ratity .i treaty the conclusion of which opened tho only chance to secure its own stabil ity and to guarantee permanent peace on, and the construction of a can.it across, the isthmus. Under such circumstances the govern ment of the I'nited States would have been guilty of folly and weakness, amounting in their sum to a crime against the nation, had it acted otherwise than it did when the revolution of November i last took place in Panama. This great enterprise of building the in teroceanic canal cannot b