TAFT'S MESSAGE IS •
SENT TO CONGRESS
Currency Reform, V/aterways, Creation of Body
to Deal With Interstate Commerce
and Other Topics Handled.
Government Expenditures and Revenues a Most Important Question
—Relations with Other Nations, Nicaragua Excepted,
Are Declared To Be Generally Satisfactory.
WastiHßten, Dec. 7. —The president
to-day transmitted to congress ;i mes
sage substantially as follows:
To the Senate and House of Repre
sentatives:
The relations ol the United (States with
all foreign governments have continued
upon the normal basis of amity and good
understanding, ami are Ver\ generally
satisfactory.
Europe.
Pursuant to the provisions of the gen
eral treaty of arbitration concluded be
tween the Cnltcd States and Great Bri
tain, April 4, 190S, a special agreement
was entered into between the two coun
tries on January 27. 19$, for they submis
sion of questions relating to the fisher
ies or. the Nt.rUi Atlantic const to a tribu
nal tr I' formed lrom members of the
permanent court of arbitration at The
Hague.
In accordance with the provisions of
Hie special agreement the printed case
of each g-ivernment was, oil October 4
last, submitted to the other and to the
arbitral tribunal at The Hague, and the
counter case of the United States is now
In course of preparation.
The American rights under the fisher
ies ai tt< le of the tieaty of lsis have been
h caus . • of difference between the United
States and 1 1 reat Britain for nearly TO
years The interests involved are of
treat Importance to the American fishing
Industry, and the final settlement of the
controversy will remove a source of con
stant irritation and complaint. This is
the fiist case involving such great in
ternational questions which has been sub
mitted to the permanent court of arbitra
tion at The Hague.
The president tells of the sending
ot a commission to investigate the
interests of the United Stales and its
citizens In Liberia, the commission's
report now being under examination
by the department of state.
He also notes the invitation extend
ed by the Norwegian government to
take part in an international confer
ence next year to devise means to
remedy existing conditions in the
Spltzbergen islands, and of its accept
ance under certain reservations. Men
Hon is ivtde of several international
conferences, and then the president
urges that provision be made for
American participation in the world's
fair nt Brussels next year. The ques
tions arising out of the Belgian an
nexation of the Congo Free State, ho
says, arc in a more hopeful stage.
Latin America.
The message speaks with enthusi
asm of tiie settlement of the boun
dary dispute between Bolivia and
Peru, and of the fourth Pan-American
conference, to be held in Buenos Aires
next July. Mention is made of the
Argentine republic's great internation
al agricultural exhibition, which is to
open in May, 1910, and the president
continues:
more than ever before. Ameri
can capital is seeking Investment In for
eign countries and American products are
more find more generally seeking foreign
markets. As a consequence, In all coun
tries there are American citizens and
American interests to be protected, on
occasion, by their government. Tlieso
movements of men, of capital and of
commodities bring peoples anil govern
ments closer together and so form bonds
of pt> ic-e and mutual dependency, as they
must also naturally sometimes make
passing points of friction. The resultant
situation inevitably imposes upon this
government vastly Increased responsibili
ties. This administration, through the
department of state and the foreign ser
vice, Is lending all proper support to le
gitimate and beneficial American enter
prisos in foreign countries, the degree of
such support being measured by the na
tional advantages to be expected. A citi
zen himself cannot by contract or other
wise divest himself of the right, nor can
this government escape the obligation of
his protection in his personal anil prop
erty rights when these are unjustly in
fringed In a foreign country. To avoid
(■easiness vexations It is proper that In
considering whether American enterprise
("houl* tee encouraged or supported in a
particular country, the government
should give full weight not only to the
national, as opposed to the individual
benefits to accrue, but also to the fact
whether or not the government of the
country In question is in its administra
tion and in its diplomacy faithful to
the principles of moderation, equity and
justice upon which alone depend Interna
tional credit. In diplomacy as well as in
finance.
The Pan-American policy of this govern
ment has long been fixed in its principles
and remains unchanged. With the
changed circumstances of the United
States and of the republics to the south
of tts, most of which have great natural
resourcw*. stable government and pro
gressive ideals, the apprehension which
gave rise to the Monroe doctrine may be
said to have nearly disappeared and nei
ther the doctrine as it exists nor any oth
er doctrine of American policy should be
permitted to operate lor the perpetuation
of irresponsible government, the escape
rrf .Inst obligations or the Insidious allega
tion of dominating ambitions on the part
of the United States.
Hewidc the fundamental doctrines of our
Pan-American policy there have grown
up a realization of political interests,
community of institutions and ideals and
a flourishing commerce. All these bonds
will txt greatly strengthened as time goes
on paid increased facilities, such as the
great bank soon to be established in
Latin America, supply the means for
butl<ling up the colossal Intercontinental
commerce of the future.
My meeting with President Diaz and
the greeting exchanged on both American
and Mexican sob served, 1 hope, to
natir.e tiie close and cordial relations
vphtch so well bind together thiq republic
and W-Ki great republic immediately to tiie
smith, between which thei;o is so vast a
nefrwwlc of material interests.
1 am happy to say that all but one of
the i .lues which tor so long vexed our
relations with Venezuela have been set
• led within tin- past few months and that,
under the enlightened regime now direct
ing the government of Venezuela, provi
sion lias been made for arbitration of the
remaining cast- before The Hague tri
bunal.
On July flu, 1909, the government of
Panama agreed, after considerable nego
tiation, to indemnify the relatives of the
American officers and sailors who were
brutally treated, one of them having, in
deed, been killed by the Panama police
this year.
The sincere' desire of the government of
Panama to do away with a situation
where such an accident could occur is
manifest in the recent request in compli
ance with which this government has
lent the services of an officer of the army
to be employed by the government of
Panama as Instructor of police.
This government was obliged to inter
vene diplomatically to bring about arbi
tration or settlement of the claim of the
Kmery Company against Nicaragua,
which it had long before been agreed
should be arbitrated. A settlement of
this troublesome case was reached by
the signature of a protocol on September
18, ii:t)H
Many years ago diplomatic intervention
became necessary to the protection of the
Interests in the American claim of Alsop
& Co. against the government of Chile.
Tin- government of Chile had frequently
admitted obligation in the case and had
promised this government to settle It.
Theie had been two abortive attempts to
do so through arbitral commissions,
which failed through lack of Jurisdiction.
Now, happily, as the result of the recent
diplomatic negotiations, the governments
of tiie I'nltcd States and of Chile, actu
ated by the sincere desire to free from
any strain those cordial and friendly re
lations upon which both set such store,
have agreed by a protocol to submit the
controversy to definitive settlement by
his liritannic majesty, Edward VII.
Since tiie Washington conventions of
ISO" were communicated to the govern
ment of the United States as a consult
ing and advisory party, this government
lias been almost continuously called upon
by one or another, and in turn by all of
the five Central American republics, to
exert itself for the maintenance of the
conventions. Nearly every complaint has
been against the Zelaya government of
Nicaragua, which has kept Central
Ainerca In constant tension and turmoil.
The responses made to the representa
tions of Central American republics, as
due from the United States on account
ot Its relation to the Washington conven
tions, have been at all times conservative
and have avoided, so far as possible, any
semblance of interference, although It Is
very apparent that the considerations of
geographic proximity to the Canal Zone
and of tiie very substantial American in
terests in Central America givo to the
United States a special position in tiie
zone of these republics and th>> Carib
bean sea.
1 need not rehearse here the patient ef
forts of this government to promote
peace and Welfare among these republics,
efforts which are fully appreciated by
tiie majority of them, who are loyal to
their true interests. It would lie no less
unnecessary to rehearse here the sad
tale of unspeakable barbarities and op
pression alleged to have been committed
by the Zelaya government. Recently two
Americans were put to death by order of
President Zelaya himself. They were of
ficers in the organized forces of a revo
lution which had continued many weeks
and was in control of about half of the
republic, and as such, according to the
modern enlightened practice of civilized
nations, they were entitled to be dealt
with as prisoners of war.
At tiie date when this message Is print
ed tills government has terminated dip
lomatic relations with the Zelaya govern
ment. for reasons made public In a com
munication to the former Nicaragua
charge d'affaires, and is intending to take
such future steps as may be found most
consistent with its dignity. Its duty to
American interests and Its moral obliga
tions to Central America and to civiliza
tion.
The Far East.
In the far east this government pre
serves unchanged its policy of support
ing the principle of equality of opportu
nity and scrupulous respect for the integ
rity of the Chinese empire, to which pol
icy are pledged the Interested powers of
both east ami west.
Mention is made of the sending of
students to America by the Chinese
government, of China's progress
toward the eradication of the opium
evil, and of this government's con
tinued cordial relations with the Jap
anese empire.
The Department of State.
Favorable action by congress on the
estimates submitted by the depart
ment of state is urged, especially legis
lation for the development and reor
ganization of the department to make
it efficient in furthering our foreign
trade. Improvement in the consular
service is noted. Mr. Tal't then says:
Under a provision of the act of Au
gust 5, 1!'09. 1 have appointed three
officials to assist the officers of the
government in collecting Information
necessary to a wise administration of
the tariff act of August 5, 1 :>ut». As to
questions of customs administration
they are cooperating with tiie officials
of the treasury department and as to
matters of tin- needs and the exigen
cies of our manufacturers and export
ers, with the department of commerce
and labor, in its relation to the domes
tic aspect of tin- subject of foreign
commerce. In the study of foreign
tariff treatment tliey will assist the
bureau of trade, relations of the de
partment of state. It Is hoped thus to
co-ordinate and bring to bear upon this
most Important subject all tin- agencies
of the government which can contrib
ute anything to its efficient handlln;;.
As a consequence of Section 2 of
tiie tariff act of A up,'nut !>, 1909. it be
comes the duty of the secretary of
state to conduct as diplomatic buslie ss
all the negotiations necessary to place
him in a position to advise me .is t.
whether or not a particular countr>
unduly discriminates a ;ain-:t the
CAMERON COUNTY PRESS, THURSDAY, DECEMBER 9, 1909.
I United States In the scn-e n' the stat
ute referred to. The great scope and
complexity of this work, as well as
the obligation to li ml all proper aid
to our expanding commerce. Is met by
the expansion of the bureau of trade
relations as set forth 111 the estimates
for tiie department of state.
Government Expenditures and Reve
nues.
Perhaps the most important question
presented to this administration is that
of economy in expenditures and suffi
ciency of revenue. The deficit of the
last ilsc.il year, and the certain deficit
of th(' current year, prompted congress
to throw a greater responsibility on
the executive and the secretary of the
treasury than had heretofore been de
clared by statute. This declaration
Imposes upon the secretary of the
treasury the duty of assembling all the
estimates of the executive departments
bureaus, and offices, of the expendi
tures necessary in the ensuing fiscal
year, and of making an estimate of
the revenues of the government for
the same period; and If a probable
deficit is thus shown, it Is made the
duty of the president to recommend
the method by which such deficit can
be met.
The report of tho secretary shows
that the ordinary expenditures for the
current fiscal year ending June 30, 1910,
will exceed the estimated receipts by
$34,075,620. If to this deficit is added
the sum to be disbursed for the Pan
ama Canal, amounting to s.'iS,ooo,ooo.
and $1,000,000 to be paid on the public
debt, the deficit of ordinary receipts
and expenditures will be Increased to
a total deficit of $73,075,620. Tills de
ficit the secretary proposes to meet by
the proceeds of bonds Issued to pay
the cost of constructing the Panama
Canal. I approve this proposal.
The policy of paying for the con
struction of the Panama Canal, not out
of current revenue, but by bond Issues,
was adopted In the Spooner act of
1890, and there seems to be no good
reason for departing from the prin
ciple by which a part at least of Un
burden of the cost of the canal shall
fall upor. our posterity who are to en
joy it; and there is all the more rea
son for this view because the actual
cost to date of the canal, which Is now
half done and which will be completed
anuary 1, 1915, shows that the cost of
engineering and construction will be
$297,766,000. insteud of $139,705,200. ns
originally estimated. In addition to
engineering and construction, the other
expenses, including sanitation and gov
ernment. and the amount paid for the
properties, the franchise, and the privi
lege of building the canal, increase the
cost I.r $75,435,000. to a total of $375.-
201,000. The increase in tiie cost of
engineering and construction Is due to
a substantial enlargement of the plan
of construction by widening the canal
100 feet in the Culebra cut 11ml by In
creasing the dimensions of the locks,
to the underestimate of the quantity of
the work to be done under the orig
inal plan, and to an underestimate of
the cost of labor and materials, both of
which have greatly enhanced in price
since the original estlmmate was made.
111 order to avoid a deficit for the
ensuing fiscal year, I directed the
heads of departments In the prepara
tion of their estimates to make them
as low as possible consistent with Im
perative governmental* necessity. The
result has been, as 1 am advised by the
secretary of the treasury, that the es
timates for the expenses of the gov
ernment for the next fiscal year end
ing June 30, 1911, are less than the ap
propriations for this current fiscal
year by $42.81 8.000. So far as the sec
retary of the treasury is able to form
a judgment as to future income and
compare it with the expenditures for
the next fiscal year ending June 30.
1911. and excluding payments on ac
count of the Panama Canal, which will
doubtless be taken up by bonds, there
will lie a surplus of $35,931,000.
In the present estimates the needs
of the departments and of the govern
ment have been cut to the quick, so to
speak, and any assumption on the
part of congress, so often made in
times past, that the estimates have
been prepared with the expectation
that they may be reduced, will result
in seriously hampering proper admin
istration
To reduce the cost of permanent
administration, says the president, a
thorough reorganization of bureaus,
offices and departments would be nec
essary. An expert accountant has
been making an investigation into this
matter and the result of his work
shows opportunity for both substan
tial reductions in cost and increase of
effi-iency.
Frauds In the Collection of Customs.
I regret to refer to the fact of the dis
covery of extensive frauds in the collec
tion of the customs revenue at New York
city, in which a number of the subor
dinate employes in the weighing and
other departments were directly con
cerned. and in which the beneficiaries
were the American Sugar Refining Com
pany and others. The frauds consisted
in the payment of duty on underweights
of sugar. The government has recovered
from the American Sugar Refining Com
pany all that It Is shown to have been de
frauded of. The sum was received In full
of the amount due. which might have
been recovered by civil suit against the
beneficiary of the fraud, but there was
an express reservation in the contract of
settlement by which the settlement should
not Interfere with, or prevent the crim
inal prosecution of everyone who was
found to be subject to the same.
Criminal prosecutions are now proceed
ing against a number of the government
officers. The treasury department and the
department of Justice are exerting every
effort to discover all the wrongdoers, in
cluding the officers and employes of the
companies who may have been privy to
the fraud. It would seem to me that an
Investigation of the frauds by congress at
present, pending the probing by the treas
ury department and the department of
justice, as proposed, might by giving Im
munity and otherwise prove an embar
rassment in securing conviction of the
guilty parties.
Maximum and Minimum Clause In
Tariff Act.
Two features of the new tariff act call
for special reference. By virtue of the
clause known as the "maximum and min
imum" clause. It Is the duty of the exec
utive to consider the laws and practices
of other countries with reference to the
importation into those countries of the
products and merchandise of the United
Stales, and if the executive finds such
laws and practices not to be unduly dis
criminatory against the United States, the
minimum duties provided In the bill are
togo into force. Unless the president
makes such a finding, then the maximum
duties provided In the bill, that is. an in
crease of 25 per cent, ad valorem o»er the
minimum duties, arc to be In force. Fear
has been expressed that this power con
ferred and duty imposed on the execu
tive Is likely to lead to a tariff war. I
beg to express (lie hope and belief that
no such result need be anticipated.
The discretion granted to the executive
by the terms "unduly discriminatory" Is
wide. In order that tho maximum duty
shall be charged against the Imports from
a country, it Is necessary that lie shall
find on the part of that country not only
discriminations In its laws or the prac
tice under them against the trade of the
United States, but that the discrimina
tions found shall be undue; that in. with
out gocd an I fair reason I conceive
that this power was ln ln tho presi
dent with the hope that the maximum du
ties might never bo applied in any case,
hut that the pfnver to apply them would
enable the president and the state depart
ment through friendly negotiation to se
cure the elimination from the laws and
the practice under them of any foreign
country of that which is unduly discrim
inatory. No one Is seeking a tariff war
or a condition In which the spirit of re
taliation shall be aroused.
The new tariff law enables me to ap
point a tariff board to assist me In con
nection with the department of state in
the administration of the minimum and
maximum < lause of the act and also to
assist officers of the government in the
administration of the entire law. Aii ex
amination of the law and an understand
ing of the nature of the fads which
should be considered in discharg
ing the functions Imposed upon the execu
tive show that I have the power to direct
the tariff board to make a comprehensive
glossary and encyclopedia of the terms
used and articles embraced in the tariff
law, and to secure information as to the
cost of production of such goods in this
country and the cost of their production
in foreign countries. I have therefore up
pointed a tariff board consisting of three
members and have directed them to per
form all the duties above described. This
work will perhaps take two or three
years, and I ask from congress a continu
ing annual appropriation equal to that al
ready made for its prosecution. I believe
that the work of this board will be of
prime utility and importance whenever
congress shall deem It wise again to re
adjust the customs duties. If the facts
secured by the tariff board are of such a
character as to show generally that the
rates of duties imposed by the present
tariff law are excessive under the prin
ciples of protection as described in the
platform of the successful party at the
late election, I shall not .hesitate to in
vite the attention of congress to tills fact
and to the necessity for action predicated
thereon. Nothing, however, halts busi
ness and interferes with the course of
prosperity so much as the threatened re
vision of the tariff, and until the facts are
at hand, after careful and deliberate in
vestigation, upon which such revision can
properly he undertaken, it seems to me
unwise to attempt It. The amount of nils-
Information that creeps into arguments
pro anil con In respect to tariff rates Is
such as to require the kind, of investiga
tion that I have directed the tariff board
to make, an investigation undertaken by
It wholly without respect to the effect
which the facts may have in calling for a
readjustment of the rates of duty.
War Department.
In the interest of immediate economy
and because of the prospect of a deficit,
I have required a reduction In the esti
mates of the war department for the
coming fiscal year, which brings the to
tal estimates down to an amount forty
live millions less than the corresponding
estimates for last year. This could only
be accomplished by cutting off new
projects and suspending for the period
of one year all progress in military mat
ters. For the same reason I have direct
ed that the army shall not be recruited
up to its present authorized strength.
These measures can hardly be more than
temporary—to last until our revenues are
in better condition and. until the whole
question of the expediency of adopting
a definite military policy can be submitted
to congress, for I am sure that the inter
ests of the military establishment are se
riously in need of careful consideration by
congress. The laws regulating the organ
ization of our armed forces in the event
of war need to be revised in order that
the organization can be modified so as
to produce a force which would be more
consistently apportioned throughout Its
numerous branches. To explain the cir
cumstances upon which this opinion is
based would necessitate a lengthy discus
sion, and 1 postpone It until the first con
venient opportunity shall arise to §end to
congress a special message upon tills sub
ject.
Of the changes recommended by
the secretary of- war, the president
especially urges the passage of a bill
that will permit the elimination of the
less efficient officers. He concurs in
the opinion of the military and naval
joint hoard in favor of making an ex
tensive naval base at Pearl Harbor,
near Honolulu, and not In the Philip
pines. *
The Navy.
The return of the battleship fleet from
its voyage around the world, in more ef
ficient condition than when it started, was
a noteworthy event of Interest alike to
our citizens and the naval authorities of
the world. Besides the beneficial and far
reaching effect 011 our personal and dip
lomatic relations in the countries
which the fleet visited, the marked suc
cess of the ships In steaming around the
world in all weathers on schedule time
has increased respect for our navy and
has added to our national prestige.
Early in the coming session a compre
hensive plan for the reorganization of the
officers of all corps of the navy will be
presented to congress, and I hope it will
meet with action suited to Its urgency.
Owing to the necessity for economy in
expenditures. I have directed the curtail
ment of recommendations for naval ap
propriations so that they are thirty-eight
millions less than the corresponding es
timates of last year, and th# request for
new naval construction Is limited to two
first-class battleships and one repair ves
sel.
Mr. Taft urges upon congress that
the naval observatory be dedicated to
science under control of some emi
nent astronomer.
Expedition in Procedure.
The deplorable delays l:i the adminis
tration of civil and criminal law have re
ceived the attention of committees of the
American Bar association and of many
state bar associations, as well as the con
sidered thought of Judges and Jurists. In
my judgment a change In judicial pro
cedure, with a view to reducing its ex
pense to private litigants in civil cases
and facilitating the dispatch of business
and final decision In both civil and crim
inal cases constitutes the greatest need
In our American Institutions. I do not
doubt for one moment that much of the
lawless v'olence and cruelty exhibited
in lynchlngs Is directly due to the uncer
tainties and Injustice growing out of the
delays in trials, judgments and the exe
cutions thereof by our courts. Of course
these remarks apply quite as well to the
administration of Justice instate courts
as to that in federal courts, and without
making invidious distinction It Is per
haps not too much to say that, speaking
generally, the defects are less In the
federal courts thun in the state courts.
But they are very great In the federal
courts. The. expedition with which busi
ness is disposed of both on tho civil and
the criminal side of English courts under
modern rules of procedure makes the
delays in our courts seem archaic and
barbarous. The procedure In the federal
courts should furnisli an example for the
state courts. I presume it is impossible,
without an amendment to the constitu
tion, to unite under one form of action
the proceedings at common law and pro
ceedings In equity in the federal courts,
but it Is certainly not impossible by a
statute to simplify and make short anil
direct the procedure both at law anil in
equity In those courts. It is not impos
sible to ci* down still more than it Is cut
down, the Jurisdiction of the supreme
court, so as to confine It almost wholly, to
statutory and constitutional questions.
Under the present statutes the equity
and ad.tilri.lty procedure In the federal
courts. Is under the (—ntrol of the ku
preme court, but In the pressure of busi
ness to which that court is subjected it
19 impossible to hope that a radical and
proper reform of the federal equity pro
cedure can be brought about. I therefore
recommend legislation providing for the
appointment by the president of a com
mission with authority to examine the
law and equity procedure of the federal
courts of first instance, the law of ap
peals from those courts to the courts of
appeals and to the supreme court, and the
costs Imposed In such procedure upon the
private litigants and upon the public treas
ury and make recommendations with a
view to simplifying and expediting the
procedure as far as possible and making
it as inexpensive as may be to the liti
gant of little means.
Injunctions Without Notice.
The platform of the successful party In
the last election contained the following:
"The Republican party will uphold at
all times the authority and Integrity of
tiie courts, state and federal, anil will
ever insist that their powers to enforce
their process and to protect life, liberty
and property shall be preserved inviolate.
We believe, however, that the rules of
procedure in the federal courts with re
spect to the Issuance of the writ of in
junction should be more accurately de
fined by statute and that no Injunction
or temporary restraining order should be
issued without notice, except where ir
reparable injury would result from delay,
in which case a speedy hearing there
after should be granted."
I recommend that in compliance with
the promise thus made appropriate legis
lation be adopted. The ends of justice
will best tie met and the chief cause of
complaint against ill-considered injunc
tions without notice will be removed by
the enactment of a statute forbidding
hereafter the issuing of any injunction
or rt»9training order, whether temporary
.or permanent, by any federal court,
without previous notice and a reasonable
opportunity to be heard on behalf of the
parties to be enjoined; unless It shall ap
pear to the satisfaction of the court that
the delay necessary to give such notice
and hearing would result in Irreparable
Injury to the complainant and unless also
the court shall from the evidence make
a written finding, which shall be spread
upon the court minutes, that immediate
and irreparable injury Is likely to ensue
to the complainant, and shall define the
Injury, state why It Is Irreparable and
shall also indorse on the order Issued the
date and the hour of the Issuance of the
order. Moreover, every such Injunction
or restraining order issued without pre
vious notice and opportunity by the de
fendant to be hard should by force of
the statute expire apd be of no effect
after seven days from the Issuance there
of or within any time less than that pe
riod which the court may fix, unless
within such seven days or such less pe
riod the injunction or order Is extended
or renewed after previous notice and op
portunity to be heard.
My judgment is that the passage of
such an act which really embodies the
best practice in equity and is very
like the rule now In force in some
courts will prevent the issuing of Ill
advised orders of injunction without
notice and will render such orders
when Issued much less objectionable
by the short time In which they may
remain effective.
New Laws Needed.
The jurisdiction of the general gov
ernment over interstate commerce has
led to the passage of the so-called
"Sherman anti-trust law" and the "In
terstate commerce law" and its amend
ments. The developments in the oper
ation of those laws, as shown by in
dictments. trials, judicial decisions,
and other sources of Information, call
for a discussion and some suggestions
as to amendments. These I prefer to
embody in a special message instead
of including them in the present com
munication. and I shall avail myself
of the first convenient opportunity to
bring these subjects to the attention of
congress.
Second-Class Mail Matter.
The deficit every year in the post
ofllee department Is largely caused by
the low rate of postage of 1 cent a
pound charged on second-class mail
matter, which includes not only news
papers but magazines and miscellan
eous periodicals. The actual loss
growing out of the transmission of
this second-class mail matter at 1 cent
a pound amounts to about $63,000,000
a year. The average cost of the trans
portation of this matter is more than
9 cents a pound.
It appears that the average distance
over which newspapers are delivered
to their customers is 291 miles, while
the average haul of magazines is 1,049.
and of miscellaneous periodicals 1,128
miles. Thus, the average haul of the
magazine is three and one-half times
and that of the miscellaneous period
ical nearly four times the haul of the
dally newspaper, yet all of them pay
the same postage rate of 1 cent a
pound. The statistics of 1907 show
that second-class mail matter consti
tuted 63.91 per cent of the weight of
all the mail, and yielded only 5.19 per
cent of the revenue.
The figures given are startling, and
show the payment by the government
of an enormous subsidy to tlie news
papers, magazines and periodicals, and
congress may well consider whether
radical steps should not be taken to
reduce the deficit In the post-office de
partment paused by this discrepancy
between the actual cost of transporta
tion and the compensation exacted
therefor.
A great saving might be made,
amounting to much more than half of
the loss, by Imposing upon magazines
and periodicals a higher rate of post
age. They are much heavier than
newspapers, and contain a much higher
proportion of advertising to reading
matter, and the average distance of
their transportation Is three and a half
times as great.
The total deficit for the last fiscal
year in the postoffice department
amounted to $17,500,000. The branches
of Its business which It did at a loss
were the second-class mail service, in
which tli» loss, as already said, was
$63,000,000, and the free rural delivery In
which the loss was $25,000,000. These
losses were in part offset by the
profits of the letter postage and
other sources of Income. It would
seem wise to 1 flduce the loss upon
second-class mall matter. at least
to the extent of \-eventing a deficit
In the to-ial operat.-ons of the post
office.
I commend the whole subject to con
gress, not unmindful of the spread of
intelligence which a low charge for
carrying newspapers and periodicals
assists. I very much doubt, however,
the wisdom of a policy which consti
tutes so large a subsidy and requires
additional taxation to meet it.
Postal Savings Banks.
The second subject worthy of men
tion in the nostoffice department is the
real necessity and entire practicability
of establishing postal savings banks.
The successful party at the last elec
tion declared In favor of postal sav
ings banks, and although the proposi
tion finds opponents in many parts of
the country. I am convinced that the
people desire such banks, and am sure
that when the banks are furnished
they will be productive of the utmost
good. The postal savings banks are
not constituted for the purpose of cre
:iting competition with other banks.
The rate of Interest upon deposits to
which they would bo limited would be
10 small as t<> prevent their drawl
deposits uway from other banks
T believe them tn be npces.-s.lry In
order 10 offer a proper inducement to
tlirift and saving to a great many
people ut small means who do not
now have banking faeilitlos, and to
wliom sucli a. .system would offer an
opportunity for the accumulation of
capital. They will furnish a satisfac
tory substitute, based on sound prin
ciple and actual successful trial in
nearly all the countries of the world,
for the system of government guar
anty of deposits now being adopted in
several western states, which with
deference to those who advocate It
seems to me to have in It the seeds of
demoralization to conservative banking
and certain financial disaster.
Ship Subsidy.
following the course of my distin
guished predecessor. I earnestly recom
mend to congress the consideration
and passage of a ship subsidy bill,
looking to the establishment of lines
between our Atlantic seaboard and the
eastern coast of South America, a.i
well as lines from the west coast of
the United States to South America.
China, Japan and the Philippines. The
profits on foreign mails are perhaps a
sufficient measure of the expenditures
which might first be tentatively ap
plied to this method of Inducing
American capital to undertake the rs
tabllsliineut of American lines of
steamships in those directions in which
we now feel It most important that we
should have means of transportation
controlled in the Interest of the expan
sion of our trade.
The president recommends the ad
mission of New Mexico and Arizona
as separate states, and strongly op
poses legislation looking to the elec
tion of a territorial legislature for
Alaska.
Conservation of National Resource*.
In several departments there is present
ed the necessity for legislation looking to
the further conservation of our national
resources, and the subject is one of suclt
Importance as to require a more detailed
and extended discussion than c«n be en
tered upon In this communication. For
that reason X shall take an early oppor
tunity to send a special message to con
gress on the subject of the improvement
of our waterways, upon the reclamation
and Irrigation of arid, semi-arid, and
swamp lands; upon the preservation of
our forests and the reforesting of suit
able areas: upon the reclassification of
the public domain with a view of sep
arating from agricultural settlement min
eral, coal, and phosphate lands and sites
belonging to the government bordering on
streams suitable for the utilization of
Water power.
The White Slave Trade.
I greatly regret to have to say that the
investigations made in the bureau of Im
migration and other sources of informa
tion load to the view that there is urgent
necessity for additional legislation and
greater executive activity to suppress tho
recruiting of the ranks of prostitute* from
tlie streams of Immigration Into this
country-an evil which, for want of a bet
ter name, has been called "The White
Slave Trade." I believe It to be constitu
tional to forbid, under penalty, the trans
portation of persons for purposes of pros
titution across national and state lines;
and by appropriating a fund of $50,000 to
be used by the secretary of commerce
and labor for the employment of special
Inspectors It will be possible to bring
those responsible for this trade to Indict
ment and conviction under a federal law.
Bureau of Health.
Kor a very considerable period a move
ment has been gathering strength, espe
cially among the members of the medi
cal profession, In favor of a concentra
tion of the instruments of the national
government which have to do with the
promotion of public health. In the nature
of things, the medical department of the
army and the medical department of the
navy must be kept separate. But there
seems to be no reason why all the other
bureaus and offices In the general gov
ernment which have to do with the pub
lic health or subjects akin thereto should
not be united in a bureau to be called the
"bureau of public health." This would
necessitate the transfer of the marine
hospital service to such a bureau. I am
aware that there Is a wide field in re
spect to the public health committed to
the states in which the federal govern
ment cannot exercise jurisdiction, but we
have seen in the agricultural department
the expansion into widest usefulness of
a department giving attention to agricul
ture when that subject Is plainly one
over which the states properly exercise
direct jurisdiction. The opportunities of
fered for useful research and the spread
of useful information in regard to the
cultivation of the soil and the breeding
of stock and the solution of many of the
Intricate problems In progressive agricul
ture have demonstrated the wisdom of
establishing that department. Similar
reasons, of equal force, can be given for
the establishment of a bureau of health
that shall not only exercise the police
jurisdiction of the federal government re
specting quarantine, but which shall also
afford an opportunity for investigation
and research by competent experts into
questions of health affecting the whole
country, or important sections thereof,
questions which, in the absence of fed
eral governmental work, are not likely
to be promptly solved.
Political Contribution.
I urgently recommend to congress that
a law be passed requiring that candi
dates In elections of members of the
house of representatives and committees
In charge of their candidacy and cam
paign file In a proper office of the United
States government a statement of the
contributions received and of the expen
ditures Incurred in the campaign for such
elections and that similar legislation be
enacted In respect to all other elections
which are constitutionally within the
control of congress.
Conclusion.
I have thus. In a message compressed
as much as the subjects will permit, re
ferred to many of the legislative needs
of the country, with the exceptions al
ready noted. Speaking generally, the
country Is in a high state of prosperity.
There is every reason to believe that we
are on the eve of a substantial business
expansion and we have just garnered a
harvest unexampled in the market value
of our agricultural products. The high
prices which such products bring mean
groat prosperity for the farming com
munity, but on the other hand they
mean a very considerably increased bur
den upon those classes in the commu
nity whose yearly compensation docs not
expand with the Improvement In busi
ness and the general prosperity. Various
reasons are given for the high prices.
The proportionate increase in the output
of gold, which to-day Is the chief medi
um of exchange and is in some respects
a measure of value, furnishes a substan
tial explanation of at least part of the
increase in prices. The increase In pop
ulation and the more expensive mode of
living of the people, which have not been
accompanied by a proportionate increase
in acreage production, may furnish a fur
ther
increase in tho cost of living Is not con
lined to tills country, but prevails tlie
world river and that those who would
charge increases in prices to the existing
protective tariff must meet the fact that
the rise in prices has taken place almost
wholly, in those products of the factory
and farm in respect to which, there has
been either no Increase in the tariff or in
many Instances a very considerable
duction.
WM. H. TAFT
'I - e White House., December ,112
9