THIS, CITIKKH, WKDNKSDAV, DHL'KMIIEH 7, 1010. TAFT'S MESSAGE UP TO CONGRESS President Breaks Record For Length of Document, DEFENDS PAYNE TARIFF ACT. Deals With Panama Canal, Postal Sav ings Bank, Parcels Post and Conser vation Asks For Raise of Judicial j Salaries Recommendation For Fit ting Honor For Peary. Washington, Dec. C The president Bent the following message to congress today: To the Senate and House of Repre sentatives: During the past year the foreign re lations of the United States have cbfi tlnued upon a bnsls of friendship nail good understanding. The year has been notable as wit nessing the pacific settlement of two important International controversies before the permanent court of The II ague. The arbitration of the fisheries dis pute between the United States and Great Britain, which has been the source of nearly continuous diplomatic correspondence slnco the fisheries con tention of lSiS. has given an nward (whlcli Is satisfactory to both parties. Peace Commission. Appreciating theso enlightened tend encies of modern times, the congress at Its last session passed a law provid ing for the appointment of a commis sion of five members "to be appointed by tho president of the United States to consider tho expediency of utilizing existing International agencies for the purpose of limiting the armaments of tbe nations of the world by luternatlon al agreement and of constituting tho combined navies of the world an Inter national force for the preservation of universal peace and to consider and report upon any other means to dimin ish tho expenditures of government for military purposes and to lessen the probabilities of war." Tho work of tho international fish- eries commission appointed In 190S, under the treaty of April 11, 100S, be tween Great Britain and the United States, has resulted In tho formula tion and recommendation of uniform regulations governing tho fisheries of the boundary waters of Canada and the United States for the purpose of protecting and Increasing the supply of food fish in such waters. The Far East. The center,of Interest in far eastern affairs during tho past year has again been China. It is gratifying to note that the ne gotlatlons for a loan to tho Chinese P""?1- Useless divisions have been government for the construction of the "Polished, with the result of saving trunk railway lines from Hankow 5 0-000 this year in tho total ex southward to Canton and westward lenses of tho bureau despite increased through the Yangtso valley, known ns '"slness. tho Ilukuang loan, were concluded by Revenues, tbe representatives of tho various ; As the treasury department is tho financial groups In May last and the results approved by their respective governments. Tariff Negotiations. The new tnrlff law in section 2 re epectlng the maximum and minimum .-amo a law Aug. 0, 1009. As an ln tarlffs of the United States, which pro- -01110 producing measure tho existing visions came into effect on April 1, tariff bill has never been exceeded by 15)10. imposed upon tho president tho mny customs bill in tho history of tho responsiuiuiy or determining prior to that date whether or not any undue discrimination existed against tho United States and Its products In any country of the world with which wo sustained commercial relations. The policy of broader nnd closer 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 of August, 1009, has proved mutually ben eficial. It Justifies further efforts for the readjustment of tho commercial relations of the two countries so that their commerce may follow the chan nels natural to contiguous countries and be commensurate with the steady expansion of trade and industry on both sides of tho boundary line. The Department of State. All tariff negotiations, so vital to our commerce and Industry, and tbe duty of Jealously guarding the equitable and just treatment of our products, capital and Industry nbroad devolve upon the department of state. The efforts of that department to se- cure for citizens of the United States equal opportunities in the markets of the world and to expand American commcrcu have been most successful. The volume of business obtained in new fields of competition and upon new lines Is already very great, and congress Is urged to contlnuo to sup port the department of state in its en deavors for further trade expansion. An Instrumentality Indispensable to tho unhampered and natural develop ment of American commerce Is mer chant marine. All maritime and com mercial nations recognlzo tho Impor tance of tills factor. The greatest com mercial nations, our competitors, Jeal ously foster their merchant marine. I alluded to this most important sub feet In my last annual message. It has Dftcn been ltore you, and I need not recapitulate tho reasons for Its recom mendation. Unless prompt action bo taken tho completion of tho Panama canal will find tlils tho only great com mercial nation unablo to avail In Inter national maritime business of this great contribution to tho means of tho world's commercial Intercourse. For ninny rr.tiKOiw I o.is no. tistrou. ly urge upon tin emigres Mm ituw-p of a measure by mull subsidy or otlir subvention adequate to gun,rnnte,,.thi establishment ard rapid devolppiaeil of nn America merchant marine, tftt restoration of the American t!ng to lti nncient place upon the seas. Estimates For Noxt Yeor'o Expanses. The final estimates for the year end lng June 30, i:)12, ns they have been sent to the treasury on Nov. 21) of this year for the ordinary expenses of the government, Including those for pub lic buildings, rivers and harbors and tho navy building program, amount to $030,401,013.12. This Is $52,904,887.3(1 less than the appropriations for the fiscal year ending Juno 30, 1911. It Is $1G,SS3,153.44 less than the totnl esti mates, including suplcmental esti mates submitted to congress by the treasury for tho year 1011, and is $5, 074.C50.39 less than tho original esti mates submitted by tho treasury for 1011. These figures do not Include tho ap propriations for the Panama canal, tho policy in respect to which ought to bo nnd is to speud as much each year ns pan bo economically nnd effectively ex pended in order to complete the canal as promptly as possible, and there fore the ordinary motive for cutting down, tho expense of tho government daiyJ' not apply to appropriations for this purpose. It will be noted Uiat tho estimates for the Pannma canal for tho ensuing yenr are more than $50, 000,000, an increase of 520,000,000 over tho amount appropriated for this year, n difference due to the fact that the estimates for 1012 include some thing over $19,000,000 for the fortifica tion of the caiuil. Against the estimates of expendi tures, 5030,401,013.12, wo have esti mated receipts for next year $GS0, 000,000, making a probable surplus of ordinary receipts over ordinary ex penditures of about $50,000,000, or, taking Into account tho estimates for the Panama canal, which are $50,920, S47.C9 and which will ultimately be paid In bonds, it will leave a deficit for the next year of about $7,000,000 If congress shall conclude to fortify tho canal. The cost of tho fortifications Is about $19,000,000. Should thero be no appropriations this year- for fortifi cations then there would be, even in cluding tho Panama canal appropria tion, a surplus of about $12,000,000. It is not essential to the preventing of smuggling that customs districts should be Increased in number. The violation of the customs laws can be quite as easily prevented and much more economically by tho revenue cut ter service and by tho use of tho spe cial agent traveling force of tho treas ury department. Very great Improvements have been tuado In respect to the mints and as say oftices. Diminished appropriations have been asked for those whose con tinuance Is unnecessary, and this year's estimate of expenses Is $320,000 less than two years ago. In the bureau of engraving and printing great economies ,have been alm through which tho income of tho sjovernment Is collected and its expend itures are disbursed this seems a proper place to consider the operation of the existing tariff bill, which bc- country. The corporation excise tax, propor tioned to tho net Income of every busi ness corporation In tho country, has worked well. Tho tax has been easily 1 ollected. Its prompt payment Indi cates that the Incidence of the tax has not been heavy. It offers, moreover. 1111 opportunity for knowledge by tho government of the general condition and business of all corporations, nnd Hint means by far the most importnnt part of the business of the country. In the originnl act provision was made for the publication of returns. This provision was subsequently nmended by congress and tho matter left to the 1 regulation of the president. I have dl 1 rected the issue of the needed regula Hons and have made it possible for tho public generally to know from on ex nmlnatlon of tba record tbe returns of all corporations tho stock of which is listed on any public stock exchange or s offered for solo to the general pub- He by advertisement or otherwise. The returns of those corporations whose stock Is not so listed or offered for halo are directed to bo open to the In epcctlon nnd examination of creditors uud stockholders of the corporation whoso record is sought The returns if nil corporations aro subject to tho Inspection of any government officer or to tho examination of any court, In which tho return mado by tho corpora tlon is relevant and competent evi dence. The Payne Tariff Act, Tbe schedules of tho rates of duty In tho Payne tariff act have been sub Jcctcd to a great deal of criticism, Home of it Just, more of It unfounded, und to much misrepresentation. The act was adopted In pursuanco of a declaration by the party which is re sponsible for It that a customs bill should bo a tariff for tho protection of home industries, tho measure of the protection to bo tho difference between tho cost of producing the imported ar ticle abroad and tho cost of producing It at home, together with such nddi Hon to that dlfferenco as might give a reasonable profit to tho homo pro- flicer. The basis for tbe criticism of this is llittl In respect to 11 numbct !.! schedules the tliv.tired meaKun' as not followed, lint a higher differ me leiniueu ur uweniti iiy way or undue diNivliulimtlon in favor of eer tiltt industries nnd iimnufarturc Little. If any. or the erltlclsm nf the riff has been directed iignlht the -tet-tlve principle nbove stated, but i' main body of tbecrltlcjMin Imstienii ascd on the charge that the nttcmpt to conform to the tnenure of protec tion was not honestly nnd sincerely ad hered to. Tariff Board. Tho time In vhlch the tariff was pre pared undoubtedly was so short aw to make It Impossible for the congress and Its experts to ncqulre the Infortnn Hon necessary strictly to conform to tho declared measure. In order to avoid criticism of this kind In the future nnd for tho purpose of more nearly conform ing to the party promise congress nt Its last session made provision at my re quest for tho continuance of a board ere ated under the authority of the uiaxl mum and minimum clause of the tariff bill nnd authorized this board to expend the money appropriated under my di rection for tho ascertainment of the cost of production at home and abroad of the various articles Included In the schedules of tho tariff. The tariff board thus appointed nnd authorized has been diligent in preparing Itself for the neccssnry Investigations. The hope of those who have advocated the use of this board for tariff purposes Is that the question of the rate of n duty Im posed shall become more of a business question and less of a political qucs tlon, to bo ascertained by experts of 1 long training nnd accurate knowledge. ho hnlt In business nnd the shock to business duo to tho 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 tho rates of each and only after a report upon tho schedule by the tariff board 1 ompetent to make rucIi report it is not likely that the board will be I able to make a report during the pres- ent session of congress on any of the ' schedules, because n proper cxamlna- ! tlon Involves an enormous amount of detail and a great deal of care, but I ' hope to bo able at tho opening of tho 1 new congress, or at least during the session of 4uat congress, to bring to Its nttontlon the facts in regard to those schedules In tho present tnrlff , that mny prove to need nmendmont The carrying out of this plan, of I course. Involves tho full co-operation ! of congress In limiting the consldern- . by the United htatos from tuis ex tlon In tnrlff mnttcrs to one schedule I peuditure are not to be measured solely at a time, because If a proposed amend- j by a return upon the Investment ment to a tariff bill is to involve a rnmnlofo consideration of nil tim 1 schedules nnd another revision then ... we shall only repeat tbe evil from which the business of this country h'ns in times pnst suffered most grievously by stagnation and uncertainty, pend ing n resettlement of a law affectinc all business directly or indirectly, and the effect of which no wise business man would Ignore In new projects and 1 of maintenance and operation is esti new Investments. I mated to exceed $3,000,000. The Inquiries which tho members of tho tariff board made during the Inst summer into tho methods pursued by other governments with reference to the fixing or tariffs and the determina tion of then effect upon trade show that each government maintains an of- flee or bureau tho officers nnd em- ntnvr. nf whini, i,nr mnrt thni- nf J W "UtX-U "11. "VV, fcLlt-ll work tho study of tariff matters, of foreign and home prices and cost of articles imported and the effect of the tariff upon trade, so that whenever n change is thought to be necessary In the tariff law "Is office Is the source of tho most reliable information as to the propriety of the change and Its ef fect I am strongly convinced that we need in this government Just such an office nnd that it can bo secured by making tho tariff board already np- tWs enormous slie In a sparsely popu pointed a permanent tariff commission. ,.,, Pnntrv nnd In tho tronlcs. where with such duUes. powers and emolu- monts ns It may seem wise to congress to give. It has been proposed to en- largo tho board from three to five. The , full poUco powers, exercising tho ut present number Is convenient but I mogt carc. do not know that an increase of two j j cannot close this reference to the members would bo objectionable. , canai without suggesting ns a wise I recommend that congress establish a commission to dctermlno as early as practicable a comprehensive policy for the organization, mobilization and ad- ministration of tho regular army, the urKumzuu uiuiuu mui uie volunteer forces In the event of war. Need For Additional Officers. One of the great difficulties in the prompt organization and mobilization of mllltla and volunteer forces is the nbsenco of competent officers of the rnnk of captain to teach tho now army, by the unit of tbo company, tho busi ness of being soldiers and of taking caro of themselves bo as to render of- 'ective service. This need of nriny rfllcers can only bo supplied by pro rlslons of law authorizing tho appoint nent of a greater number of army of ficers than nro needed to supply tbe commands of regular army troops now enlisted In tho service. In order that tho mllltla of each state should be properly drilled and mado more like tho regular nrray, reg ular army officers should bo detailed to assist the adjutant general of each state In the supervision of tho state mllltla. But this Is Impossible unless provision Is made by congress for n very considerable Increuso in the num ber of company nud field officers of the army. Fortifications. I havo directed that tho estimates for appropriation for tho Improvement of const defenses In tho United States should be. reduced to a minimum, while those for the completion of the needed fortifications at Corregldor, In tho Philippine Islands, and at Pearl Harbor, in the Hawaiian Islands, Khun?.! lie expedllod iih muc 1 'as kss1 ble. . Phillpp! to Islands, During the Inst fcUtiiitier nt myre quest tin se. retary of war visited 1 1t Philippine Islands iihd Itrts uVxcrlbeO his trip In his report' He found the Islands In it state of ttamiullltty nnd growing prosperity, due largely to the change In the tariff laws which has opened the markets of America to tho products of the Philippines nnd has opened the Philippine markets" to American manufactures. Panama Canal. At the Instance of Colonel Goelhals. tho army engineer officer In chnrge of the work on the Panama canal, I have Just made a visit to tbe Isthmus to In spect tho work done nnd to consult with him on the ground ns to certain problems which nro likely to nrlse In tun near future. The progress of the work i most satisfactory. If no nn expected obstacle presents Itself the oanal will be completed well within the Hmo fixed by Colonel Goethals to wit, Jan. 1, 1015 and within the estimate of cost, $375,000,000. Among questions arising for present solution Is tho decision whether the canal shall be fortified. I have already (stated to the congress that I strongly 1 lavor luruncuuun, ami 1 uuw reiiuniK" ! this opinion nnd ask your consideration of tho subject In the light of tho report 'already before you made by a compe ', tent board. I If In our discretion we believe mod- ern fortifications to be necessary to the , I adequate protection and policing of the I canal, then It Is our duty to construct them. Wo have built the canal. It Is I our property. By convention we have Indicated our desire for nnd Indeed un- dertnken Its universal nnd equal use I It Is also well known that one of tho I chief objects In the construction of the I canal has been to lncreaso the military effectiveness of our navy. I Failure to fortify tho canal would leave the attainment of both theso alms In the position of rights and ob ligations which we should be powerless to enforce and which could never In any other way be absolutely safeguard- ' ed against a desperate and lrresponsl- , ble enemy. 1 In determining what the tolls In the , canal should be wo certainly ought not to Insist that for a good many yenrs to come they should amount to enough to pay tiie Interest on tho Investment 1 of $400,000,000 which the United j States has made in the construction ; of tho canal. Wo ought not to do tms first, because the benefits to be derived My own Impression is mat tne tons ought not to exceed $1 per net ton. Un 1 Jan. 1, 1011. the tolls In the Suez canal ' . . - . . 1 are to bo 7 francs and 28 ccnUmes for one not ton by Suez canal measure- ment which Is a modification of nnnnho measurement A dollar a ton will secure under the figures above a ' GrS3 annual Income from tho Panama canal of nearly $7,000,000. The cost 'Ihe next question that arises is as i to tho maintenance, management and general control of tho canal after Its completion. It should be premised 1 that It Is an essential part of our navy establishment to have tho coal, oil nud ! other ship supplies, a drydock ami ' rP1,lr shops conveniently located with ; reference to naval vessels passing . . . tO t1,A turougn me cauu.. """"'"" ment for naval purposes Is to under- I tfko t0 m?TT ! tuo nn,d h "L Tgl lbo govcrnlncnt sUould tflke ver aud lncludo In lts manaKe. ment the furnishing not ouly to the nnrr lmt- in tho nnhllc. drvdock nnd ' clinn fn-iiipa nnd tho sale of j c0Ja, 0 and otner Bhlp 8pPiics. , , nlnlnnnnr, f n lock canal of ; .... (1nnl?nr from disease is always I prescnt, requires a large and complete j nn1 'ii trained organization with 1 nmendment to the interstate commerce jftW a provision prohibiting Interstate COmmerco railroads from owning or Pontrolllne shins engaged In the trade 1 hrnPi1 tho Panama cannl. I believe such a provision may bo needed to save to the people of tho United States tho benefits of the competition lu trade between the eastern and western sea boards which this canal was construct cd to secure. Department of Justice. I am glad to say that under tbe ap propriations made for tho department of Justice tho attorney genernlTins o Improved its organization that n vast amount of litigation of n civil and criminal cburacter has been disposed of during tho current year. This will explain tho necessity for slightly lu creasing tho estimates for the ex penses of the department His report shows tho recoveries made on behalf of the government, of duties fraudu lently withheld, public lnnds lmpn erly patented, fines nnd penalties r trespass, prosecutions and conviction under tho nntl-tmst law nnd prosed. Hons under Interstate commerce law I Invito especial attention to the prosecutions under tho federal law of tho so called "bucket shops" and of those schemes to defraud In which the use of tho mall Is an essential part of tho fraudulent conspiracy, prosecu Hons which havo saved ignorant and weak members of the public nnd nro saving them millions of dollars. Tho violations of the anti-trust law present pertmps tbo most Important litigation beforo tho department, and tho number of cases filed shows the activity of the government In enforc ing that Htututo. Judicial Procedure. One giVnt crying need In tho United States Ik cheapening the cost of litiga tion by simplifying Judicial procedure nnd expediting final Judgment Under present conditions tho poor man Is nt 1 woeful disadvantage In n legal con test with a corporation or n rich op ponent The necessity for the reform exists both In United States courts nnd in all stnto courts. Iti order to bring It about, however, It naturally falls to the general government by Its cxnmplo to furnish a model to all states. A legislative commission ap pointed by Joint resolution of congress to revise tbe procedure in tho United States courts has as yet mado no re port. I am strongly convinced that the best method of Improving Judicial pro cedure nt law Is to empower the su premo court to do It through the me dium of tbo rules of tho court, bb In equity. This Is the way In which it has been done in England. Relief of Supreme Court From Un necessary Appeals. No man ought to have as a matter of right a review of bis case by tho su preme court. He should be satisfied by one hearing beforo a court of first instance nnd one review by a court of appeals. Tho proper nud chief useful ness of the supreme court, and espe cially tho supreme court of tho United Rfntna la Iti tlin nnanQ Trlilph pnmA ho. fore ,t SQ tQ expound tuo Iaw anj cspc. dally the fundamental law the' con- stitutlon as to furnish precedents for tho Inferior courts In future litigation nnd for the executive officers In the construction of statutes and tho per formance of their legal duties. There fore any provisions for review of cases by tho supremo court that castupon that court the duty of passlngon ques tions of evidence and the construction of particular forms of instruments, like indictments or wills or contracts, de cisions not of general application or importance, merely clog and burden tho court and render more difficult its higher function, which mnkes It so lm portent a part of the framework of our government. The supreme court is now carrying an unnecessary burden of appeals of this kind, and I earnestly urge that It be removed. Judicial Salaries. I further recommend to congress tho passage of tho bill now pending for the lncrcnse In tho salaries of tbo fed- ! eral Judges, by which tho chief Justice of tho supreme court shall receive $17, 500 and the associate Justices $17,000, the circuit Judges constituting tho cir cuit court of appeals shall receive $10,- 000 and the district Judges $9,000. The positions they occupy ought to be filled tx' iti iin n-lin hnrn hr,,i-n tlin m-Antnet by men who nave shown tho greatest ability in their professional work at 1 the bar, and It is tho poorest economy possible for the government to pay salaries so low for Judicial service as not to bo able to command the best talent of the legal profession In every part of the country. Wiping Out of Postal Deficit For many years there has been a deficit in the operations of tho post- office department which hns been met 1 by appropriation from the treasury, The appropriation estimated for last year from the treasury over and above the receipts of tho department was $17,500,000. I am glad to record the 1 fact that of that $17,500,000 estimated I for $11,500,000 were saved and return ed to the treasury. It Is gratifying , to report that the reduction In tho deficit has been accomplished without ! any curtailment of postal facilities. Upon tho recommendaUon of the postmaster general I have included In the classified service all assistant post masters, and I believe that this giving a sccuro tenure to those who are the most important subordinates of post masters will add much to the efficiency of their offices and an economical ad ministration. The Franking Privilege. Tho unrestricted manner In which tho franking privilege Is now being used by the several federnl services and by congress has laid it open to se rious abuses. Parcels Post With respect to the parcels post, respectfully recommend Its adoption on all rural delivery routes and that eleven pounds, tho International limit bo made the limit of carriage in such nost The nostofflce department has a great plant and n great organization reaching into the most remote hamlet of the United States, and with this machinery It is able to do a great many things economically that if new organization were necessary It; would be impossible to do without ex travagant expenditure. That Is tho reason why tho postal savings bank can be carried on at a small additional cost nnd why It Is possible to incor porate at n very lnconsldcrablo ax penso a parcels post in the rural de livery system. Peary. I unlto with tho secretary In tho rec ommendation that an appropriation bo made to construct a suitable crypt at Annapolis for tho custody of tho remains of John Paul Jones. Tbo unparalleled achievement of Peary In reaching the north pole, April 0, 1009, approved by critical examina tion of tho most expert scientists, has added to tbo distinction of our navy, to which he belongs, nnd reflects credit upon bis country. His unique success has received generous acknowledgment from scientific bodies and Institutions of learning In Hurope nnd America. I recommend fitting recognition by con gress of tho great nculevcment of Rob ert Edwin Peary. For Eight Hour Day. It seems to me from the past history that the government has been com mitted' to a Dolicv of encouraging the limitation of the day's work to eight hours in nil works of construction initi ated by Itself, nnd It seems to me Il logical to maintain n dlfferenco between government work done on government soli nnd government work done In a private establishment Workmen's Compensation. In view of the keen, widespread In terest now felt In the United States In system of compensation for Indus trial accidents to supplant our present thoroughly Unsatisfactory system of employers' liability (a subject tho im portance of which, congress has al ready recognized by the appointment of a commission), I recommend that the International congress on Indus trial Insurance bo invited to hold Its meeting in 1013 In Washington nnd thnt nn appropriation of $10,000 be made to cover tho necessary expenses of organizing and carrying on the mecUng. Safety Appliances and Provisions. Tho protection of railroad employees from personal Injury is a subject of the highest Importance and demands continuing attention. Negro Exposition. I also renew my recommendation that steps be taken looking to the hold ing of a negro cxposIUon In celebra tion of the fiftieth anniversary of the Issuing by Mr. Lincoln of tho emnncl patlonx proclamation. Conservation. Nothing can be more Importnnt In tho matter of conservation than the treatment of our forest lands. Speak ing generally, the government hns re served of the existing forests about 70 per cent "of all the timberlauds of the government. Within these forests (In cluding 20.000,000 acres In two forests In Alaska) are 192,000,000 acres, of which ICO.000,000 acres are In the United States proper and include with in their boundaries something like 22, 000,000 acres that belong to tho states or to private Individuals. Wo have. then, excluding Alaska forests, a total of about 144.000,000 acres of forests belonging to the government which nro being treated in accord with tho principles of scientific forestry. The law now prohibits tho reserva tion of any more forest lands in Ore gon, Washington, Idaho, Montana, Colorado and Wyoming except by act of congress. I am Informed by tho department of agriculture that the government owns other tracts of tim- bcrland in these states which should bo Included .in the forest reserves. I recommend to congress that the liml- tatlon herein Imposed be repealed. In the present forest reserves there are lands' which are not properly forest land nnd which ought to be subject to homestead entry. Coal Lands. The next subject and one most im portant for your consideration, la tho disposition of tbe coal Iand3 In the United States and in Alaska. At tho beginning of this 'administration there were classified coal lands In the Unit ed States amounting to 5,470.000 acres, and thero were withdrawn from entry for purposes of classification 17.S07.000 acres. Since that time there have been withdrawn by my order from entry for classification 78,077,745 acres, mak ing n total withdrawal of 90.S44.745 acres. Meantime: or tno acres tnus withdrawn 10.0C1.8S9 have been classi fied nnd found not to coutnln coal and have been restored to agricultural en try nnd 4.720,091 acres have been clas sified as coal lands', while 79.003.239 acres remain withdrawn from entry and await classlOcaUon. In addition 337,000 acres hnve been classified us coal lands without prior withdrawal, thus increasing the classified coal lands to 10,429,372 acres. The question as to how great nn area ought to be included In a lease to one Individual or corporation Is not free from difficulty, but in view of the fact that the government retains con trol as owner I think there might be some liberality In the amount leased and that 2.500 acres would not be too great a maximum. The leases should only be granted after advertisement and public competition. The secretary of the Interior thinks there are difficulties in the way of leasing public coal lands. I entirely approved his stating at length In his report the objections In order that tho whole subject may bo presented to congress, but after a full consideration I favor a leasing system and recom mend It The needed o'.l nnd gas law Is essen Ually a leasing law. In their natural occurrence oil and gns cannot be measured In terms of acres, like coal, and It follows that exclusive title to these products can normally be se cured only after they reach the sur face. Oil should be disposed of as a commodity In terms of barrels of transportable product rather than In acres of real estate. Water Power Rates. Tho water power sites subject is one that calls for new legislation. It has been thought that there was danger of combination to obtain possession of all the power sites and to unite them under ono control. Whatever the evi dence of this or lack of It, at present we hnve had enough experience to know thnt combination would be prof itable, and the control of a great num ber of power sites would enable the holders or owners to raise the price of power at will within certain sec tions, nnd the tomptatlon would promptly attract Investors, and the danger of monopoly and extortion would not be n remote one. However this may be. It Is the plain duty of the government tp see to It that In the utilization nnd develop ment of nil this Immense nmount or water power conditions shnll be Im posed that will prevent extortionate charges, which are tho usunl accompa niment of monopoly.