WORK OF YEAR REVIEWED BY THE PRESIDENT Affairs of State Are Dealt With at Length in Annual Message. BUT LITTLE ABOUT TARIFF President Discusses Work of Tariff Board—Ship Sub- sidy Is Urged. WORK ON PANAMA CANAL Need of Legislation Anticipating Com- pletion of the Ditch Is Pointed Out—Change in Postal Rates— Parcels Post and Postal Savings—Economy Urged. Washington, Dec. 6.—President Taft's annual message (0 congress contained 40,000 words, and is said to be the longest document ever written. In it he work of each of the administrative departments beginning with the department. space to the satisfactory settlement of the fisheries dispute with England through the medium of the Tribunal, and recounts both tory of the fisheries dispute and establishment of the tribunal. reviews the state hig Ais the the In connection with the state depart ment he tells of the important tical happenings of the past twelve months throughout the entire world, and the action of this country in con- nection with them Tariff Negotiations. poli- Referring to the negotiation of new tariff agreements President Taft says “The new respecting mum tariffs which provisions 1 pril tariff law, in Section 2, maximum and mini the United States, came into effect on us re the of 10, imposed upon sponsibility of determining prior to that date whether any undue discrim ination existed against the United States and its products in aay coun- try of the world tained commercial rel A with whi we sus countries in- undue discrimina can commerce These discriminations by 1910, were removed negotiation Prior to April 1, when maximum tariff was to come into operation respect to importations from all those countries in whose favor no proclama- tion applying minimum tariff should be issued by the president, one hundred and thirty-four such mations were issued. “This series of proclamations em braced the entire commercial world and hence the minimum tariff of the United States has been given univer- sal application, thus testifying to the sstisfactory character of our relations with foreign countries “Marked advantages to the com merce of the United States were ob tained through these tariff settle ments. “The policy of broader and trade relations with the Dominion of Canada which was Initiated in the ad- justment of the maximum and mini mum provisions of the tariff act August, 1808, has proved mutually beneficial. for the readjustment of the commer. cial relations of the two countries so that their commerce may follow the channels natural to contiguous coun- tries and be commensurate with the steady expansion of trade and indus try on both sides of the boundary line.” the with the procia trade Ship Subsidy. The president urges such action as he believes will increase American trade abroad, and says: “Another instrumentality indispen- sable to the unhamapered and natural development of American commerce is merchant marine. All maritime and commercial nations recognize the im- portance of this factor. The greatest commercial nations, our competitors, jealously foster their merchant ma. rine. Perhaps nowhere is the need for rapid and direct mall, passenger and freight communication quite so urgent as between the United States and Latin America. We can secure in no other quarter of the world such immediate benefits in friendship and commerce as would flow from the es tablishment of direct lines of com. munication with the countries of Latin America adequate to meet the requirements of a rapidly increasing appreciation of the reciprocal depen: dence of the countries of the western hemisphere upon each other's prod ucts, sympathies and assistance. “1 alluded to this most important subject in my last annual message; it has often been before you and I need pot recapitulate the reasons for lis recommendation. Unless prompt ac- , tion be taken the completion of the Panama canal will find this the only great commercial nation unable to avall in international maritime busi ness of this great contribution to the means of the world's commercial in- tercourse.” Governmental Expense. To no one subject does he devote more space than to the expense of conducting the various government departments and the urgent need for economy, and in this connection he BAYS: “Every effort has each been made by department chief to reduce the estimated cost of his department for the ensuing fiscal year ending June 30, 1912. 1 say this in order that con- gress may understand that these esti mates thus made present the smallest sum which will maintain the depart ments, bureaus and offices of the gov ernment and meet its other tions under existing law, and that a cut of estimates would result in embarrassing the executive branch of the government in the performance of its duties. This remark does not apply to the river and harbor esti mates, except to those for expenses of maintenance and the meeting of gations under authorized contracts, nor does it apply to the public build ing bill the building gram. gress of the obliga these obli nor to Of as to could withhold navy nro course, these con any part or all estimates for them without in terfering with the discharge of the or dinary obligations of of its departments, fices “The final ending been these functior bureaus and estimates for 30, the of this year, June sent to ber 29 expenses of the ge public bulidings, and the y 1 amount to $6 is $52,964 887.38 less than for ernment, ir rivers harbors, utiding pro 30,494,013.12. 1 the ap propri ing June 30 less than the ations the fiscal i811. It total year 1911, and ov treasury for “These flugres do not Panama cs 1 respect to : which ought to be, and is, as can be fectively expended In ore to spend as much ¥ economically and plete the canal as therefore promi tly ble, and the ordinary mo tive for cutting down expense of the gov propriations for ernment does not apply to ag this purpose “Against the $840 454 012.12 celipts for next estimates of expendi , We have $6880 04 estims IE & pProbal t8 over ordinary £50 000.000 r be paid fn b ficit for O08 O00 The Tarif. fent dex the party for t if thal cus of home the industries, the protection to be the di the cost article producing it ¥ tween of produc ported abroad and at home that night give a reasonable profit to home producer The basis for BU addition to that in re number of the sched y declared uies measure was not follow t yer difference retained or Aa high tion In favor of certain industries and manufactures. Little, if any, of criticiam of the tariff has heen direct ed against the principle main body of based on the the protective itt the but th has been the criticism protection was not honestly cerely adhered to.” The Tariff Board. The president refers to the appoint and sin gate the cost of production of various articles Includefl In the schedules of the tariff, and says: “The tariff board thus appointed and authorized has been diligent in preparing itself for the necessary in vestigations. The hope of those who have advocated the use of this board for tariff purposes is that the question of the rate of a duty imposed shall become more of a business question and less of a political question, to be ascertained by experts of long train. ing and accurate knowledge. The halt in business and the shock to busi ness, due to the announcement that a new tariff bill is to be prepared and put in operation will be avoided by treating the schedules one by one as occasion shall arise for a change in the rates of each, and only after a re port upon the schedule by the tariff board competent to make such report It ts not likely that the board will be able to make a report during the pres. ent session of congress on any of the gchedulen, because a proper examina. tion involves an enormous amount of detail and a great deal of care; but | hope to be able at the opening of the new congress, or at least during the session of that congress, to bring to {ts attention the facts In regard to those schedules in the present tariff that may prove to need athendment.” Our island Possessions. “During the last summer, at my request, the secretary of war visited the Philippine islands and has de scribed his trip in the report. He found the islands in a state of tran- quillity and growing prosperity, due largely to the change in the tariff laws, which has opened the markets of America to the products of the Philippines, and has opened the Phil ippine markets to American manu- actures, “The year has been one of prosper ity and progress in Porto Rico. Panama Canal, instance of Colonel army engineer officer in charge of the work on the Panama canal, 1 have just made a visit to the Isthmus to inspect the work done and to consult with him on the ground as to certain problems which are likely to arise in the near fu ture. The progress of the work is nost satisfactory. If no unexpected obstacle presents Itself, the will completed well within tix fixed by Colonel Goethals, i January 1, 1810, and within cost, $175,000,000. questions arising for pres solution is decision whether fortified i “At the als, the Goeth- be the Lo- the "Among the have that the canal shall be already stated to the congress ation and | and ask I strongly ¥avor fortific reiterate tuis sideration f th BUD 0d be board already competent whicl #8 lor ¢ 1 canal ired vestment BOIalY his canal was } Department of Justice. affdira of the presiden 3 pr (he the # sheer of cases foray . and the nun department, and th it setivity of the govern ing that statute message in enfor« last year I CONnETeRs f anacting 3p ENRCLUINS Ee cial “in a wight to the attention of the propriety and wisdom a general law provie for the in har corporation of other indu and companies engaged in gtate com and | that tierce renew recommen aif * behalf the United 1581 iti The need in States Crying of cheapening the cost 3 judicial proced- ure and final judgment is pointed out and action looking to cor rection of these evils is urged The recommends an In crease galaries of federal of sirpsnilifole Ritnpliiiyis expediting president in the judges Postal Savings Banks. fta last session congress made p rovision for the establishment of savings banks by the de partment of this government by which under general control of trustees, con sisting of the postmaster general, the gocretary of the treasury and the at torney general, the' system could be begun in a few cities and towns, and enlarged to cover within its opera tions as many cities and towne and as large & part of the country as seemed wise. The initiation and establish. ment of such a system has required a great deal of study on the part of the experts in the postoffice and treas. ury departments, but a system has now been devised which is believed to be more economical and simpler in its operation than any similar system abroad. Arrangements have been per fected so that savings banks will be opened in some cities and towns on the 1st of January, and there will be a gradual extension of the benefits of the plan to the rest of the country.” “It is gratifying,” says the president, “that the reduction in the postal deficit has been accomplished without any curtailment of postal facilities. On the contrary, the service has been greatly extended during the year in all its branches” Second-Class Mail, “In my last annual message I in vited the attention of congrdss to the inadequacy of the postal rate imposed upon second-class mail matter in so far as that includes magazines, and showed by figures prepared by experts of the postofice department that the “At postoffice to the pagazines, costing many mil lions in excess of the compensation paid. An answer was attempted to this by the representatives of the magazines, and a reply was filed to this answer by the postoffice depart ment. The utter inadequacy of the answer, considered in the light of the reply of the postoffice department, I think must must appeal to any fair- minded person. Whether the answer was all that could be said In behalf of the magazines is another question. I agree that the question is one of fact; but I insist that if the fact is as the experts of the postofiice department ghow, that we are furnishing to the owners of magazines a service worth millions more than they pay for it, then justice requires that the rate should be increased. The increase In the receipts of the department result ing from this change may be devoted to increasing the usefulness of the de partment in establishing a parcels post and in reducing the cost of first class postage to one cent. It has been sald by the postmaster general that a fair adjustment might be made under which the advertising part of the ¥ iid that matter This wo eful magazines circulated at a profit, and the the reading re many us are not would shut je hu by rate, “With respect to the parcels post, | them out from ise of tl a prohibitory adoption on all rn 11 pounds made the limit of carriage Abolish Navy Yards. is alten ropriations for t! uded in of the and inc submitted year merely building few i neeqeq I earnestly hope will be adopted The secretary of tha examination has studied with reference personal and NAYY yards navy yard, tlie td float necessities of our considerably than half th f that of the lens size © British navy, than double the there are several of these mn equipped which, number, and shiprards expensively modern machinery, tigation after the secretary of the navy useless for to be entirely He asks authority to aban don certain of them and to move thelr k other places, where It can be made of ' vr try 1 use he completes success of © n arctic exploration should not unnoticed The Peary April §, examination achievement of north tica scientists, has pole 19089, i Conservation, The subject of the conservation the public has com: 1 v 5 doma the years need attention of people withis two three or for There is the no radical re ’ methods of disposing of iaws have worked weil has encour the successful semiarid regions “Nothing can be more important in matter of conservation than the the destruction of that first ruthless older states probably forests in halt in the waste of our resources are lands which are not properly for est, and which ought to be subject fo homestead entry. This has caused some local irritation We are care fully eliminating such lands from for ast reserves or where their elimina tion is not practical listing them for entry under the forest homestead act “Congress ought to trust the execu. tive to use the power of reservation only with respect to land most valu able for forest purposes During the present administration, 62.250,000 acres of land largely non-timbered, have beén excluded from forest re serves, and 3.5600,000 acres of land principally valued for forest purposes have been included in forest reserves, making a reduction In forest reserves of nontimbered land amounting to 2,760,000 acres.” Coal Lands. “The next subject, and one most im: portant for your consideration, is the disposition of the coal lands in the United States and Alaska. At the be ginning of this administration there were withdrawn from entry for pur poses of classification 17,867,000 acres Since that time there have been with drawn by my order from entry for classification 78,977,746 acres, making a total withdrawal of 96.844,745 acres. Meantime of the acres thus with drawn 1,061,888 have been classified and found not to contain coal and have been restored to agricultural en. classified as coal lands; while 7,993,238 acres remain withdrawn from entry and await classification. In addition 487,000 acres have been classified as con! lands without prior withdrawal, thus increasing the classified coal lands to 10,429,372 acres, “Under the laws providing for the disposal of coal lands in the United States, the minimum price at which lands are permitted to be sold is $10 an acre; but the secretary of the in terior has the power to fix 4 maximum price and to sell at that price. “As one-third of all the coal supply is held by the govermuent, it seems wise that it should retain such con trol over the mining and the sale as the relation of lessor to lessee fur nishes, “The secretary of the interior thinks there are difficulties in the way ol leasing public coal lands, which jections he has set forth in his re port, the force of which 1 freely con cede I entirely approve his stating at length in his report of the tions in order that whole subject may be presented to congress, but after a full consideration, for the rea sons 1 given leasing system and ob Oh je the have above, 1 favor a recommegd it” Water Power Sites. to March 4, the reclamation “Prior been, on 1909 recommendation of service, withdrawn fr agricultural entry, because they regarded as which ought useful for power sites not to be disposed of as lands, t 4,000,000 ac were agricultural racts amounting The made to about res. wi hastily and In reat deal of land eful for power sites. ” to inciude the rivers in 9 states. 3,470,442 acres have for settlement of 000 because iin power withidrawai the to elect a moense have relat Pensions. uniform the those policy of the gov of granting galiant fought to t t natier and devoleg gave the life of the nation in great civil war, f bas always been of most liberal character Those are now passing The best obtainable official show that they are dying at the rate of something over three month, snd, in of their advance ing years, this rate must inevitably in proportion, rapidly increase. To man who risked everything on field of battle to save the nation in the hour of its direst need we owe a debt which has not been and should not be computed in a begrudging parsimonious spirit.” Bureau of Corporations. Referring to the report of the com missioner of corporations, the presi dent says: “The commissioner finds a condl tion in the ownership of the standing timber of the United States other than the government timber that calls for serious attention. The direct in vestigation made by the commissioner covered an area which contains 80 per cent. of the privatelyowned tim. ber of the country. “His report shows that one half of the timber in this area is owned by 200 individuals and corporations; that 14 per cent. is owned by these corporations, and that there is very extensive Interownership of stock, as well as other circumstances, all pointing to friendly relations among those who own a majority of this tim. ber, a relationship which might lead to a combination for the maintenance of a price that would be very detri. mental to the public interest, and would create the necessity of remov. ing all tariff obstacles to the free ime portations of lumber from other coun- rapidly away view or Bureau of Labor. “I'he commissioner of labor has been actively engaged in composing the dif ferences between employers and em- ployees engaged In Interstate trans portation, under the Erdman act, joint ly with the chairman of the interstats commerce commission, “] cannot speak in too high terms of the success of the two officers in con ciliation and settlement of controver- sles which, but for their interposition, would have resulted disastrously to all interests Civil Service Commission, “The civil continued commission has duties during the for the mainte provisions of civil was never greater than to the pol and thelr t¢ or depu be within the classified service wut In my judg publie opinion advanced to the point service its useful The necessity of the law Officer of the adminis immediate persona year nance service the day. icy respongible for tration assists ties, should not include ment 1 t a bill ring effi- r all purely administrative the profound con yor y tA pPprovigiug ciency f« viction that cause of efficie could executis 0 in ocal offices ment Economy and Effic nerease in the wwernment wn 44 we i efficiency stock to the restrainin Interstate Con wer ilroads limit same game places, Press the consideration of upon congress at session merece commis appropriations se of enabling it to enter upon a valuation of ail railroads. This has always within the jurisdic tion of the commission, but the requl funds have been wanting. Stati ties to the value of each railroad would for many espe. ally if we ultimately enact an) me itations upon the power of the inter railroads to issue stocks and hope we may “For protection of our own people and the preservation of our credit In foreign trade, 1 urge upom congress the immediate enactment of a law under which one who, in good faith. advances money or credit upon a bill of lading issued by a common carrier upon sn Interstate or foreiga’ shipment can bold the carrier liable for the value of the moods described in the bill at the valuation specified in the bill, at least to the extent of the' advances made in rellance upon it. “1 further recommend that a punish. ment of fine and imprisonment be im- posed upon railroad agents and =hip- pers for fraud or misrepresentation in connection with the issue of bills of lading issued upon interstate and fore elgn shipments, “Bxoept as above, I do not recom mend any amendment to the interstate commerce law as it stands. 1 do not now recommend any amendment to. the anti-trust law, In other words, it geems to me that the existing legisla. tion with reference to the regulation of corporations and the restraint of their business has reached a point where we can stop for a while and wit. ness the effect of the vigorous execu tion of the laws of the statute books in restraining the abuses which cer’ tainly exist and which roused the demand reform.” The interstate © mmenace been ite be valuable purposes, sini Ci tate onde, as | the