Norwich Bulletin Newspaper, December 7, 1910, Page 9

Bulletin PAGES NINE TO SIXTEEN R. TAFT DEFENDS T, Supports Payne Bill In Message “FORTIFY THE CANAL” Favors Parcels Post and New Lahor Laws President Writes to C;ngress on Various Phases of Conservation, Opposes Water Power Site Monop- oly, Indorses Skip Subsidy Plan in Unqualified Language, Suggests Ways of Managing Piqama’ Canal in Future, Rates of Toll, Etc. : ‘Washington, Dec. 6.—President Taft ; w®ent his annual message to congress | today. It is as follows: | To the Senate and House of P.s-m-&1 sentatives: { During the past year the foreign re- | laticus of the United States have con- | tinued upon a basis of friendship and | good understanding. | The year has been mnotable as wit- | nessing the pacific settlement of two important International controversies | before the permanent court of The Hague. The arbitration of the fisheries di pute between the United States and | Great Britain, which has been the | source of nearly continuous diplomatic \ correspondence since the fisheries con- vention of 1818, has given an :\Wardf { | which is satisfactory to both parties. ‘This arbitration is particularly nore- worthy not only because of the emi- nently just results secured, but also be- cause it is the first arbitration held un- der the general arbitration treaty of April 4, 1908, between the United States and Great Britain and disposes of a controversy the settlement of which for nearly ninety years has been the cause of friction between two ! countries whose common interest lies in maintaining the most friendly and | condial relations with each other. | The United States was ably repre- | wented before the tribunal. 'The com- plicated history of the questions ari ing made the issue depend more than | eordinarily in such cases upon the care’ and skill with which our case was presented, and I should be wanting in proper recognition of a great patriotic service if I did not refer to the lucid historical analysis of the facts and the signal ability and force of argumenft— ®ix days in length—presented to thei court in support of our case by l.'r.' Elihu Root. As secretary of state Mr. Root had given close study to the ln-l tricate facts bearing on the mmtm-} versy and by diplomatic (-nrrmpon(l-l ence had belped to frame the issues, At the solicitation of the secretary of state and myself Mr. Root, though bur- | dened by his duties as senator from | New York, undertool: the prvpuunon} of the case as leading counsel, with | the condition imposed Ly himself that | in view of his position as senator he | should not recelve any compensation. l The tribunal constituted at The | Hague by the governments of the Unit- i ed States and Venezueia has completed fts detiberations and bas rendered an | award in the case of the Orinoco | Steamship compeny against Venezuela. | The award may be regarded as satisfac- | tory since it has, pursuant to the con- tentions of the United States, recog- nized a number of important principles making for a judicial attitude in the determining of International disputes. In view of grave doubts which had heen raised as to the constitutionality of The Hague convention for the es- tablishment of an international prize court, now before the senate for ratifi- «cation, because of that provision of the convention which provides that there may be an appeal to the proposed court from the decisions of national courts, this government proposed n an identic efrcular note sddressed to those powers swvhich had takem part in the ILondon | maritime eouference that the powers slgnatory to the convention, if con- fronted with such difficulty, might in- sert a reservation to the effect that ap- peals to the International prize court #n respect to decislons of its national fribunals should take the form of a di- rect claim for compensation, that the Pxoceedings thereupon to be taken | Pould bo iz the form of a trial de péeo and that judgment of the court should ! comnsist of compensation for the illegal wapture irrespeetive of the decision of | the natiomal court whose jndgment had thus been Internationally involved. As the result of an informal discus- wion it was decided to provide siuch pro- vedure by meang of s separate protocol which should be ratified at the same time as the prize court convention it- eelf. Accordingly the government of the Netherlands at the request of this gov- ernment proposed under date of May 24, 1910, to the powers signatory to The Hague convention the negotiation of a supplemental protocol embodying stipulations providing for this alterna- | tive precedure. It is gratifying to ob- | werve that this additional protocol is being sigued without objection by the powers signatory to the original con- wention and that there is every reason to believe that tLe International prize court will be soon established. The iMdentic clrcular note alss pro- posed that the iuternational prize court when established ‘ghould be endowed with the functions of an arbitral court of justice nnder and pursuant (o the recommendation adopted by the lastc Hague conference. T'he replies receiv- ed from the various powers to this pro- posal inspire the hope thai this also | may he accomplished within the rea- iveuty of 1862.of an American vespal Tt is believed that the establishment of these two tribunals will go a loug way toward securing the arbitration of many questions which have heretofore threatened and at times destroyed the peace of nations. TO APPGIRT PEACE COMMIS- SIONERS. President Is Waiting For Expres- sions From Foreign Powers. Appreciating these enlightened tend- | encies of modern times, the congress | at its laet session passed a law provid- | ing for the appointment of a commis- sion of five members “to be appolunted | by the president of the United States to cousider the expediency of utilizing existing international agencies for the purpose of limiting the armaments of the nations of the world by interna- tional agreement and of constituting the combined na s of the world an ifuternational the preserva- force for tion of universal peace and to consider and report upon any other means to diminish the expenditures of govern- ment for military purposes and to lessen the probabilities of war.” I have not as yet made appointments to this commission because I have in- vited and am awaiting the expressions | af foreign governments as to their will- | ingness to co-operate with us In the appointment of similar commissions or representatives who would meet with our commissioners and by joint action geek to make their work effective. Several important treat have been negotiated with Great Britain in the past twelve months. A preliminary diplomatic agreement has been reach- ed regarding the arbitration of pecu- niary claims which each government bhas against the other. This agree- | ment, with the schedules of claims annexed, will, as soon as the schedules are arranged, be submitted to the sen- ate for approval. An agreement Between the United States and Great Britain with regard | to the location of the international | boundary line between the United | States and Canada in Passamaquoddy | bay and to the mididle of Grand Ma- | han chanoel was reached in a treaty | concluded May 21, 19010, which has | been ratified by both governments and | proclaimed, thns making unnecessary the arbitration provided for in the previous treaty of April 11, 1908. The convention conciuded Jan. 11, 1509, between the United States and Great Britain providing for the settle- ment of international differences be- tween the United States and Canada, | including the apportionment between | the two countries of certain of the boundary waters and the appointment of commissioners to adjust certain oth- | er questions, has been ratified by both ! Zovernments and proclaimed. The work of the international fish- eries commission appointed in 1908, under the treaty of April 11, 1908, be- tween Great Britain and the United States has resulted in the formulation and recommendation of uniform regu- lations governing the fisheries of the boundary waters of Canada and the TUnited States for the purpose of pro- tecting and increasing the supply of food fish in such waters., In comple- tion of this work the regulations agreed upon require congressionsal leg- islation to make them effective and | for thelr enforcement in fulfillment of | the treaty stipulations. OVERTHROW OF KING MANUEL United States Recognized Portugal Provisional Republic. | In Octoher iast the monarchy in Portngal was overthrown, a provision- | al republic was proelaimed. and there | was set up a de facte government ! which was promptly recognized by the | government of the TUnited States for | purposes of ordinary intercourse pend- | ing formal recognition by this and oth- | er powers of the governmental entity to be duly established by the national sovereignty. | Europe, Canada, Etc. ! { | i | | i Liberia. A disturbance among the native | iribes of Liberia in a portion of the re- | public duringwibe early part of this year resulted in the sending under the of war to the disaffected district, and the'@,fi)el‘ian authorities, assisted by the good offices of the American naval officers, were abie 1o restore order The negotiatiows whici*hve beeu un- dertaken for the awelioration of fhe condifions foumd in Liberia by the Amwmerican commission, whose report I transmitted to congress on March 25 last, are being brought o conclusion, and il is thought that within a short fime practical measures of rellef may flees of this government and the cor- dlal co-operation of other governments Interested in Liberia’s welfare. The Near East—Turkey. To return the visit of the special em- bassy sent to announce the accession of his majesty Mehemet V., emperor of the Ottomans, T sent to Constanti- nople a special ambassador, who, in addition to this mission of ceremony, was charged with the duty ef express- ing to the Oftoman government the value attached by the government of the United States to increased and more important relations between the countries and the desire of the United States to contribute to the larger eco- nomic and commercial developnent | due to the new regime in Turkey. ! The rapid development now begin- | ning in that ancient empire and the marked progress and increased com- mercial importance of Bulgaria. Rou- mania and Servia make it particularly opportune that the possibilities of American commerce in the near east should receive due attention. { Montenegro. The national skoupchtina having ex- pressed its will that the principality of | Montenegro be raised to the rank of kingdom, the Prince of Montenegro on | Aug. 15 last assumed the title of king | of Montenegro. It gave me pleasure to accord to the new kingdom the rec- ognition of the United States. The Far East. The center of interest in far eastern affairs during the past year has again been China. Tt is gratifying to note that the ne- gotiatious for a loan to the Chinese government for the construction of the trunk railway lines from Hankow southward to Canton and westward through the Yangtse valley, known 4% the Hukuang loan, were concluded by the representatives of the various finanecfal groups in May last and the | results approved by their respective ' governments. The agreement, aiready initialed by the Chinese government, is now awaiting formal ratification. The basis of the settlement of the terms of this loan was one of exact equality be- tween America, Great Britain, France | and Germany in respect to financing the loan and supplying materials for the proposed railways and their future branches. The application of the principle un- derlying the policy of the United States in regard to the Hukuang loan—viz, that of the internationalization of the foreign interest in such of the railways | of China,_as may be financed by for- elgn countries—was suggested on a | broader scale by the ‘retary of state | in a proposal for internationalization ! and commercial neutralization of all | the railways of Manchuria. While the | principle which led to the proposal of this government was generally admit- ted by the powers to whom it ad- i dressed, the zovernments of Russia and Japan apprehended practical difficul- ties in the execution of the larger plan ; which prevented their ready adher- | ence. The question of constructing the | Chinchow-Aigun railway by means of | an international loan to China is, how- ever, still the subject of friendly cussion by the interested parties. The policy of this government in | these matters has been directed by a | desire to make the use of Ax.upru:m! capital in the development of China an ! instrument in the promotion of China’s | welfare and material prosperity with- out prejudice to her legitimate rights as an independent political power. | This policy has recently found fur-! | dis- | ther exemplification in the assistance | given by this government to the nego- tiations between China and a group of | American bankers for a loan of $50,- | 000,000 to be employed chiefly in,cur- | rency reform. The confusion which | has from ancient times existed in the | monetary usages of the Chinese has | been one of the principal obstacles to | commercial intercourse with that peo- | ple. The United States in its treaty of 1903 with China obtained a pledge from the latter to introduce a uniform | national coinage, and the following ! year, at the request of China, this gov- ernment sent to Peking a member of | the international exchange commission | to discuss with the Chinese govern- ment the best methods of igtroducing ! the reform. In 1908 China seut a com- missioner to the United States to con- sult with Ameriean financiers as to the possibility of securing a large loan with which to inaugurate the new cur- rency system, but the death of their majesties the empress dowager and the emperor of China inferrupted the ne- gotiations, which wera not resumed un- til a few months ago. when this gov- ernment was asked to communicate to the bankers concerned the request of China for a loan of $50,000,000 for the purpose under review. A preliminary | agreement between the American group and China has been made covering the loan. For the success of this loan and the contemplated reforms which are of the greatest importance to the commercial interests of the United States and the civilized world at large it is realized that an expert will be necessary, and | this government has received assur- ances from China that such an advis- er, who shall be an American, will be engaged. 1t is & maiter of interest to Ameri- cans to note the success which is at- tending the efforis of China to estab- lish gradually a system of representa- | tive government. 'The provincial as- semblies were opened In October, 1909, and in Ocrober of the preseut vear s consultative body, the nucleus | of the fnture national parliament, heid Its first session at Peking. The year has further been marked ! by twe important international agree- ents relating to far eastern affairs. ok be putlnto effect threngh the £o0d of- | In the BussoJapauese agrecment re- | Philippines, and a large delegation of | Mexican people, wh RIFF Jating to Manchuria, signed July 4, 1910, this government was gratified to note an assurance of continued peaceful conditions in that region and: the reaffirmation of the policles with respect to China to which the United Btates together with all other inter- ested powers are alike solemnly com- mitted. The treaty annexing Korea to the empire of Japan, promulgated Aug. 29, 1910, marks the final step in a process of control of the ancient em- pire by her powerful neighbor that has been in progress for several years past. In communicating the fact of annexa- tion the Japanese government gave to the government of the United States assurances of the full protection of the rights of American citizens in Ko- rea under the changed conditions. Friendly visits of many distinguish- | ed persons from the far east have been made during the year. Chief among | these were their imperial highnesses Princes Tsai-tao and Tsai-Hsun of China and his imperial highness Prince Higashi Fushimi and Prince ! Tokugawa, president of the house of | peers of Japan. The secretary of war bhas recently visited Japan and China in connection with his tour to the American business men are at present traveling in China. This exchange of friendly visits has had the happy ef- | fect of even further strengthening our | friendly international relations. TROUBLES OF LATIN AMERICA We Are at Peace, but War Bothers Southern Republics. During the past year several of our J southern sister republics celebrated the one hundredth anniversary of their | independence. In henor of these events special embassies were sent from this country to Argentina, Chile and Mexico, where the gracious re- ception and splendid hospitality ex- tended them manifested the cordial relations and friendship existing be- tween those countr and the United’ States, relations which I am happy to believe have never before been upon so high a plane and so solid a basis as at present. The congressional commission ap- pointed under a concurrent resolution to attend the¢ festivities celebrating the centennial anniversary of Mexican independence, together with a special ambassador, were received with the | highest honors with the greatest cordlality and reiurneéd with the report of the bounteous hLospitality and warm | reception of President Diaz and the | lett no doubt of the desire of the immediately neigh- boring republic to continue the mutual- Iy beneficial and intimate rvelations which I feel sure the two governments | Wwill ever cherish. At the fourth pan-American confer ence, which met in Buenos Aires dur ing July and August last, after seven weeks of harmonious deliberation | three conventions were signed provid- ing for the regulation of trademarks, patents and copyrights, which, when ratified by the different governments, will go far toward furnishing to Amer- fean authors, patentees and owners of tion needed M ore it has been quate. Further, a convention arbitration of pecuniary claims was signed and a number of imporiant resolutions pass- | ed. The conventions Wwill in due | course transmitted to the senate, and the report of the delegation of the United States will be communicated to | the congress for its information. The special cordiality between representa- tive men from all parts of America which w shown at this conference | cannot fail to react upon and draw | still closer the relations between the | countries which took part in it. { The international bureau of Ameri- | can republics is doing a broad and use- | ful work for pan-American commerce | and comity. Its duties were much en- | larged by the international conference | of American states at Buenos Aires, and its name was shortened to the more practical and expressive term of | pan-American union. Located now in its new building, which was specially | dedicated April 26 of this year to the | development of friendship, trade and | peace among the American nations, it i has improved instrumentalities to serve J s the 7 I or inac ote where either lackin for the he the twenty-two republics of this hem- isphere, s I am glad to say that the action of | the Tnited States in lis desire to re- | move imminent danger of war between | Peru and Ecovador growing out of a | boundary dispute, with the co-opera- | tion of Brazil and the Argentine Re- public as joint mediators with this gov- | ernment, has already resulted success- | fully in preventing war. The govern- ment of (‘hile, while not one of the mediators, leat effective aid in further- ance of a preliminary agreement likely to lead on to an amicable settlement, and it is not doubted that the good offices of the mediating powers and the | conciliatory co-operation of the govern- ments directly interested will finally | Jead to a removal of*this perennial | cause of friction between Ecuador and Pern. The inestimable value of cordial co-operation between the sister repub- lies of America for the maintenance of peace in this hemisphere has never been more clearly shown than in this wediation, by which three American | governments have given to this hemis- phere the honor of first invoking the most tarreaching provisicns of The Hague convention for the pacific set- tlement of international disputes. i There has been signed by the repre- | wentatives of the United States and | Mexico a protocol submitting to the | United States-Mexican houndary com- mission (whose membership for the purpese of this case is to be increased by the addition of » citizen of Can- ada) the guesilon of soveraigniy over | the (X1 L v Ges WILDL the present physical boundaries of the eity of El Pago. Tex. The determina- #ion of this questfon will remove = source of no little annoyance to the two governments. The republic of Honduras has for many years been burdened with a heavy bonded debt held in Europe, the interest on which long ago fell in ar- rears. Finally conditions were such that it became imperative to refund the debt and place the flnances of the republic upon a sound basis, Last year a group of Awmerican bankers un- dertook to do this and to advance funds for railway and other improve- ments contributing directly to the country’s prosperity and commerce—an arrangement which has long been de- sired by this government. Negotiations to this end have been under way for more than a year, and it is now coufi- dently believed that a short time will suffice to conclude an arrangement which will be satisfactory to the for- eign creditors, eminently advantageous to Honduras and highly creditable to the judgment and foresight of the Honduranean government. This is much to be desired since, as recognized by the Washington conventions, a strong Honduras would tend immense- Jy to the progress and prosperity of Central Amerie: During the past year the republic of Nicaragna has been the scene of in- ternecine struggle. General Zelaya. for seventeen years the absolute ruler of Nicaragua, was throughout his ca- reer the disturber of Central America and opposed every plan for the pro- motion of peace and friendly relations between the five republics. When the people of Nicaragua were finally driven into rebellion by his law- less exactions he violated the laws of war by the unwarranted execution of two American citizens who had regu- larly enlisted in the ranks of the rev- olutionists. This and other offenses made it the duty of the American gov- | ernment to take measures with a view | to ultimate reparation and for the safeguarding of its interests. This involved the breaking off of all diplomatic relations with the Zelays government for the reasons laid down in a communication from the secretary of state, which also notified the con- tending factions in Nicaragua that this government would hold each to strict accountability for outrages on the rights of American citizens. American forces were sent to both coasts of Ni- caragua to be in readiness should oc- casion a to protect Americans and their interests and remained there un- til the war was over and peace had returned to that unfortunate country. These events, together with Zelaya’'s continued exactions, brought him so clearly to the bar of public opinion that he was forced to resign and to take vefuge abroad. In the above mentioned communica- tion charge d’affaires of the Zelaya govern- ment the opinion was expressed that the revolution represented the wishes of the majority of the Nicaraguan peo- ple. This has now been proved beyond doubt by the fact that since the com- plete overthrow of the Madriz govern- ment and the occupation of the capital by the forces of the revolution all fac- tions have united to meaintain public or- | der, and as a result of di sion with an agent of this government sent io Ma- 1a at the request of the provisional ernment comprebensive plans are made for the future welfare of including the rehabilitation ragu of public credit. The moderation and conc tory spirit shown by the varf ous factions give ground for the con- fident hope that Nicaragua will soon take its rightful place among the law abiding and countries of the world progressive It gratifies me exceedingly to an- nounce that the Argentine Republic some months ago placed with American manufacturers a contract for the con- | struction of two battleships and certain additional naval equipment. tent of this work and its importance to the Argentine Republic make the plac- | ing of the bid an earnest of friendly | feeling toward the United States, Tariff Negotiations. The new tariff law in section 2 re- gpecting the maximum and minimum tariffs of the United States, which pro- visions came into effect on April 1. 1910, imposed upon the president the | responsibllity of determining prior to that date whether or not any undue discrimination existed against the Unit- ed States and its products in any coun- try of the world with which we sus- tained commercial relations. In the case of several couniries in- stances of apparent undue discrimina- tion against American commerce were found to exist. These discriminations were removed by negotiation. Prior to April 1, 1910, when the maximum tarifft was to come into operation with respect to importations from all those countries in whose favor no proclama- tion applyving the minimum should be issued by the president, 134 such proclamations were issued. This series of proclamations embraced the entire commercial world, and hence minimum tariff of the United States has been given universal appll- cation, thus testifying to the satisfac- tory character of our trade relations with foreign countries. Marked advantages to the commerce of the United States’ were obtained through these tariff settlements. For- elgn nations are fully cognizant of the | fact that under section 2 of the tariff act the president is required, when- ever he is satisfied that the treat- ment accorded by them to the prod- ncts of the United States is not such | as to entitle them to the benefits of the minimum tariff of the United States, to withdraw those benefits by procla- mation, giving ninety days’ notice, after which the maximum tariff wil apply to their dutiable products enter- ing the United States. In its general operation this section of the tariff law has thus far proved a guaranty of continued commercial peace, sithough there are, however, unfortunately in- stances where foreign goveraments deal arbitrarily with American intes- ests within their jurisdietion in & man- per injurious and inequitable. e pelics of bresder and gieeer, of the secretary of state to the | The ex-| tariff | trade relations with the Dominion or Canada which was initiated in the ad- justment of the maximum ‘and mimi- mum provisions of the tariff act of August, 1909, has proved mutually beneficial. It justifies further efforts for the readjustment of the cemmer- eial relations of the two countries =0 that their commerce may follow the channels natural to contiguous coun- tries and be com'mensurate with the steady expaneion of trade and indus- try on both sides of the boundary line. The reciprocation on the part of the Dominfon government of the sentiment which was expressed by this govesn- ment was followed in October by the suggestion that it would be glad to have the negotiations which had been temporarily suspended during the ;’}:n- mer resumed. In accordance with this suggestion the secretary of state by my direction dispatched two represend- | atives of the department of state as special commissioners to Ottawa to confer with representatives of the Do« minfon government. They were su- thorized to take such steps for formu- lating a reciprocal trade agreement s might be necessary and to receive and consider any propositions which the Dominion government might care te submit. Pursuant to the instructions jssued conferences were held by these com- missloners with officials of the Domin- ion government at Ottawa in the early part of November. The negotiations were conducted om both sides in a spirit of mutual accom- modation. The discussion of the com- mon commercial interests of the two countries had for its object a satisfac- | tory basis for a trade arrangement which offers the prospect of a freer in- terchange for the produets of the Unit- ed States and of Canada. The confer- ences were adjourned to be resumed in Washington in January, when it is hoped that the aspiration of both gov- ernments for a mutnally advantageous measure of reciprocity will be realized. THE DEPARTMENT OF STATE Foreign Trade Is Improving—Mer chant Marine Development. All these tariff negotiations, so vitgl to our commerce and industry, and the duty of jealousy guarding the equl table and just treatment of our prod- ucts, capital and industry abroad de- volve upon the department of state. | The Argentine battleship contracts, like the subsequent important one for Argentine railway equipment and those for Cuban government vessels, were secured for our manufacturers largely through the good offices of the depart ment of state. The efforts of that department to se- | cure for citizens of the Unired States equal opportunities in the markets of the world §nd to expand Americam commerce 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 continue to sup- port the department of state in its em- deavors for further trade expansion. Our foreign trade merits the bLest support of the government and the most eernest endeavor of our manu- facturers and merchants, who, if they do not already in all cases need a for- eign market, are certain soon to be- come dependent on it. Therefore, now is the time to secure a strong position in this field. I cannot leave this subject without emphasgizing the necessity of such leg- islation as will make possible and con- venient the establishment of American bauks and branches of American banks in foreign countries. Oualy by such weans can our foreign trade be favos- ably financed, necessary credits be ar- ranged and proper avail be made of commercial opportunities in foreigm couniries, and most especially In Latim America, ' Another instrumentality indispensa- ble to the nnhampered and natural de- velopment of American commerce i merchant marine. All maritime and commercial nationg recogpize the imme | 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 mail, 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 imme- diate benefits in friendship and com- merce as would flow from the estad lishment of direct lines of communicas tion with the countries of Latin Ames ica adequate to meet the requirements | of a rapldly increasing appreciation of the reciprocal dependence of the coun- iries of the western hemisphere upom. each other’s products, sympathies and assistance. 1 1 alluded to this most important sub- Jeet in my last annual message. It has often been before you, and I need not recapitulate the reasons for its recom- mendation. Unless prompt action be | taken the completion of the Panama | eanal will find this the only great commercial nation unable to avafl in international! maritime business of this great contribution to the means of the world's commercial intercourse. Quite aside from the commercial as- pect, unless we create @ merchant ma- rine where can we find the seafaring population necessary as a natural na- | val reserve and where could we find, in case of war, the transports aad sub- sidiary vessels without which a naval fleet i3 arms without a body? For many reasons I cannot too strongly urge upon the eongress the passage of a measure by malil snbsidy or other subvention adequate to guarantee the establishment and rapid developmon: of an American merchant marine, the restoration of the American flag to its ancient place upon the seas. ‘With our increasing internationul in- tercourse it becomes incumbent upon me to repeat more emphatically tlan ever the recommendation which 1 made in my inaugural address that congress shall at once give o the courts of the United States jurisdic- tion to punish as e crime the vislation of the rights of alieus secured by trea- ty with the United States mfi