Omaha Daily Bee Newspaper, December 8, 1909, Page 9

§ EDITORIAL PAGES 9 TO 18 VOL.. XXXIX—NO. 'T'HE - OMAHA DAILY BEE Only 15 Shopping Bays Till Chrisimas OMAHA, WEDNESDAY MORNING, DECEM BER 8, 1909 SINGL COPY TWO CENTS ANNUAL MESSAGE OF PRESIDENT TAFT TO THE CONGRESS Recommendations for Legislation on Matters Much Discussed and of Real Importance in Connection With the Prosperity of the People ABSIDENT TAFT'S annual mes- | bs greatly strengthened as time goes on 88g0 to the congress was read In both houses at noon Aoday. It was very short In eomparlson With recent documents of a similar nature, containing fewer than 14000 words. In it s found brief but pointed referencé to all matters of publie importance, wjth direct recom- mendation or sgnificant suggestion for legislutivé action. - The message, condensed in part, Is as follows: To the Benate and the House of Repre, sentatives: f The relations of the United States with all foreign governmients have continued upon the normal basis of amity and good understanding and isfactory. . (The president fbhiches briefly on the 1eference to the flhibrles case between the United States and ,Great Britain to The Hague tribunal; ‘to the work of the In- ternational Fishériss commiseion; the ad- Justment. of inthrpiationnl boundaries and other disputes bafween the United States and Canada; BuRther orotection for the soal fisheries; fhe second peace conference | At The Hague; the international conference on maritime law, and on uniform bills of sxchange; the Invitation of Belglum to \nnlclpne in the exposition at Brussals, for which he urges acceptance and’ an ap- propriation; the adjustment of affairs in the Congo And the commission to Liberia, the report of the Iatter to B mubmitted later; the convention with Germany con- cerning patents; the Invitation of Norway o participate in & conference to determine the status of The Spitshotgen fslands, and the result of the revolugion in Turkey). Relations with Séath Amerten. One of ths hapriest évents in reesnt Pan- American aiplomacy Avas the pacifje, inde- pendent dottiement by’ the governments of Bollvia and Péru ot'a boundary difference between them, which for some weeks threatened to cauge war and even to en- train embitterments affecting other re- publics less directly concerned. From vari- ous quarters, djrectly or Indirectly con- eerned, the Intermediation of the United Btates whs soufht to assist in a solution of the controv, Desiring at all times te abstain from any undue mingling In the affalrs of sister republics and having faith in the abllity jof the governments of Peru and Bolivia themselves to settle their dif- ference In a manner satisfactory to them- selves, which, vlewed with magnanimity, would assuage all embitterment, this gov- ernment steadily abstained from being @rawn into the 'controversy and was mueh tified 10 find Its confidence justified by events. On the 9th of July next there will open at Buenos Ayres the fourth Pan-American confererice, This conference will have a #peclal meaning to the hearts of all Amer- icans, becatse around its date are clu tered the anniversaries of the independence of 86 many of the Ameriean nepublics. It 15 not necebsary for me to remind th congress of the polll so¢lal and corn< mereial importance of these gatherings. You are asked to make liberal appropria- tion for our participation. If . this be granted, it fs my purpose to appoint a dis- tinguished and representative delegation, qualitied fittingly to represent this country and to deal with the problems of inter- continental interest which will there be discussed. The Argentino republic will ‘also hold from May to November, 1910, at Buenos Ayres, a great Internationsl agrioultural exposition, in which the Unjted States hi been invited to participate. Considering the rapid growth of the trade of the United States with the Argentine republic and the cordial, relations existing between the two nations, together with the fact that it pro- vides an opportunity to show deference to & sister republic the ogcasion of the eelebration of its national independence, the proper depastments of this govern- aent are taking steps to apprise the inter- ests concerned of the opportunity afforded By this exposition, in which appropriate perticipation by this country is so desir- | able. The designation of an officlal repre- santative {8 also recelving censideration. Fretection for American Cltizens. Today, mere than ever hefore, American capital s seeking Investment in fereign ooumtriss, and Ameriean preduets are more and mere generally seeking fereign mar- kets. As & eomwequenmce in all esuntries there are Ameriean eittwens and American interests te be presected, on eceasien, by thelr gevernmient. These mevements of men, ef eapital and of cemmeditics bring peoples and governments eloser tegether and se form bends of peace and mutusl dependenes, as they must alse naturally pemetimes make passing peints ef friciion The resuitant situation inevitably impos upen this government vastly increased re- sponsibilities. This administration, through the Department of State and the foreign service, Is lending all proper support to legitimate and beneficlal Ameriean enter- prizes In forelgn eountries, the degree cf #ueh suprort being measured by the na- tional advantages to be expreted, A oitl- 363 Mlweslf eannot by contrset or other- wiie dlviat Rimselt of the right. mor can this government escape the eblygation, of his protection In his pereenel And property rights wheu (hess are wnjuetly Infringed B & forelgn eountry. Te aveld cemne vexations It is proper that in eonsidering Whellier Amariean enterprise should be en coursged er wupperted im & partieular eountry, the government sheuld give full welght net enly to the natienal, as opposed the individual benefits te acerue, hut slbe the faet whether or met the gevern- ment of the eountry In question In In its administration and' in its diplomacy faith- ful to the prineiples of moderation, equity and justice upon which alone depend in- ternational eredit, in diplomacy as well as finance. _ Application of Mouroe Doctrine. The Pan-American policy of this govern: ment has long been fixed In its prineiples and remains unchanged. With the changed - eolroumstarices of the United States and of the republies to the south of us, most ot which have great natural resources, stable government and progressive ideals, the ap- prehension which gave rise to the Monroe destrine may be said to have nearly dis. appeared. and neither the doctrine as it exisia nor any ather dectrine of American tre very generally sat- | and increased ‘faclifties, such as the great bank soon to be established in LAtin Amer« iea, supply the means for bullding up the colpseal Intereontinental commerce of tie tuture. My meeting with President Diaz and the greeting exchanged on both American and Mexican soil served, I hope, to signalize the close and cordial relations which so well bind together this republic and the great' republic immediately to the south, between which there is so vast a network | of material interests. | 1am happy to say that all but one of the | cases which for so long vexed our relations | with Venezuela have been settled within the last few monthe and that, under the | enlightened regime now directing the gov- | ernment of Venesuela, proyision has been | made for arbitration of the remaining caso before The Hague tribunal. Claims of American Citizens. | On July % 1909, the government of Panama agreed, after considerable nego- Points Made by the President Particlpation in the Pan-American Congress at Buenos Ayres is desirable and siould be supported by congres: Americans should also také part in the exposition to be held at Prenos Ayres next summer. / Amerioan ocitizens are to be protscted in person and property in any forelgn country. The Monroe doctrine has not been abandoned; the de- velopment of Oentral and South Amarican countries has Iargely removed the necessity for its assertion, and it will not be inveked to emable any government to escape its obligation or, payment of fust debts. Zelays has proven a constant source of irritation and strife, and is to be dealt with as smoh. Relations with Ohina and Javan are most pleasant. Stricter control of the opium traffio is nrged. Topislation looking to the reorganization of the De- partment of State is immediately necsssary. Relations with forelgn governments requires this. The improved conditions in the oonsular service are due to executive complete its work, and an appropriation for its support is requested. An elimination bill, which shall operate to retire army afficers who have proven inefficlent is asked. A new fort at the mouth of the Chesapeake bay onght to be added to the coast defense program. The naval bi and staton in the Philippines is to be abandened in favor of one at Pearl Earbor, near Monolnlu, Forty-five millions are out from the army appropriations of the last congress and $38,000,000 from thy val. The reorganization of the personns] of the navy and the bureans of the Navy de- partment is urred. More expedition in the administration of justics, both in clvil and criminal cases, is required. TLaws reforming procedure in the federal conrts should be enacted and these should serve as guides for state courts. A law ghould be passed limiting the lssuance of injunec- tons and prohibiting the issuance of a restraining order nnless notice has been siven, except in certain extreme | tiation, to indemnity the relatives of the | | American officers and sailors who were | brutally treated, one of them having, In-| deed, been killed by the Panaman police | this year. | | Thia government was obliged to Intervene | diplomaticaily to bring about arbitration or settlement of the claim of the Bmery | company againet Nicaragua, which it had long before been agreed should be arbi- trated. A settiement of this troublesome case was reached by the signature of a protocol on Scptember 18, 1909. Many years ago diplomatic intervention became necessary to the protection of the | interests in the American claim of Alsop & Co. agalnst the government of| Chile. The government of Chile had fre quently admitted obligation in the case and had promised .this government to settle it.” There had been two abortive at- tempts to do so through arbitral com- mission, which ‘falled through lack' of Jurisdiction.” Now,' happily, as the result| |of the recent diplomatic negotiations, the governmentd 6f the United States and of Chile, actuated by the sincere desfre ‘te free from any strain 'thoss cordial and friendly relations upen which’ both set such store, have agreed by a protocel te submit the controversy to definitive wet- tlement by His Britannic Majesty, Edward VIL Case of Zelaya. Since the Washington convention of 1981 were communieated to the government of the United States as a consulting and advising party, this government has been almost continuously called upon by one or anothier, and in turn by all of the five Central American republics, to exert itself for the malntenance of the conventions. Nearly every complaint has been against the Zelaya government of Nlcaragua, which has kept Central America in con- stant tenslon or turmoll. The responses made to the representations of Central American republics, as due from the Upjted States &1 Rgcount ot its relation to the Washing: ton tonvantions, havé been at all times conmérvative and have avoided, so far ¢ possible, any semblance of interference, although It Is very apparent that the con- slderations of geographic proximity of the Canal Zone and of the very substantial American {nterests in Central America &ive to the United States a special position in the zone of these republics and the Caribbean’ sca. I need not rehearse here the patient ef- forts of this gevernment to promote peace and welfare among these republics, efforts which_are: fully appreciated by the m jority of them who are loyal to thelr true Interests. It would be no less unneces- sary to rehearse here the sad tale of un- speakable barbarities and oppression al- leged "to have been' committed by the Zelaya guyernment. Recently two Amerl- cans were put to death by order of Presi- dent Zelaya himself. They were reported to have been regularly commissioned of- ficers In the organized forces of a revolu- tlon which had continded many weeks and was proceéding in an orderly fashion in control, of about half of the republic, and a3 such, according to thé' modern en'lght- ened practice of civilized nations, they would be entitled to be dealt with prisoners of war. At the date when this message is printed this government s proceeding with de- ifberate’ elrqumspection to determina the exaet truth in relation to these reperts and upon the course in the premives most comsistent with its dlgnity, its duty to Ameriean interests and its moral obliga- Uons to Central America and to civiliza- on. of & Bureaun. The international bureau of American republics has cerried on an important and ineredsing work during the last vear. In the exercise of its pecullar functions as an International agency, maintained by all the American republics for the develop- ment of Pan-American commerce and triendship, It has accomplished a great practical good which could be done in the same way by no individual department cr bureau of one government, and s there- fore deserving of your liberal support. The fact that it is abcut to enter a new bulld- ing, erected through the munificence of an American philanthropist and the contribu- tlons of all the American naticns, where both its efficlency of administration and expense of maintenance will naturally be much augmented, further entitles It to special cemstderation In the far east this government preseryes unehanged its” pelicy of supporting the principle of equality, of opportunity, and scrupulous respect for the intergrity of the Chinese Emplre, to which policy are pledged the Interested powers of both east and west., b 1 Relations with Ch By the treaty of 1908 China has updes ! taken the abolition of likin with a modera; and proportionate raising of the customs tarift along with currency reform. These reforms being of manifest advantage to foreign commerce as well as fo the Interests | of China, this government is endeavoring | to facilitate these measures and the need- ful acquiscence of the treaty powers. When it appearead that Chinese likin revenues were to be hypothecated to foreign banke: in connection with & great rallway project, it was obvious that the governments whose held this loan would have & certaln direct interest in the question of the carrying out by China of the reforms in question. Becauss this raliread lean erders, the principles of which should be embodied into 1aw. The appointment of experts to assist officials of tha Etate department in gathering data on the tariff is ex- pected to mcccmplish much good. Rigid economy 18 ni ry to avoid the recurrence of a dsficlt. Brtimates have bésn ont far enongh belo: rent appropriations to avoid & deficlt, but congw warned that further cuts means curtailment of efficlency in administration. Meorganization of administrative departments of the government is necoessary, that greater effiolency may be onred at & less expenditure of tlme, effort and money. This will require & reclassifioation of the oivil service. A civil service pension list is recommended. Investigation of customs house frands and prosecution of the gullty ix under way And an inquiry by congress is deprecated, becanse it might result in giving immunity to some of the guilty persons. Wo one is seeking & tariff war in which the spirit of retallation will roused, and in the exercise of the dls- ‘ orotionary pewet vested in him by law the president hopes to aveld any such rewnlt. Three years will be required for the tariff board to oases, Tn event an order is issned withont notios it should not be for longer than newed after giving notice and a hearing is A specinl ressage will be semt dealing with the She: man anti-trust law. The deficit in postoffice revenue, dne to the handll of second-class matter at o low rate, can be partly o come by obarging a higher yate on magazines and misce laneous pericdicals. A law ectablishing postal savings banks should be en- acted, without waiting for the report of the monetary commission. A ship subsidy bill, to cover lines along the Atlantlo seabon: nd from the west t, should be passed. Oongervation of natural resources should be given im- ‘medinte and proper attention. White slave traffic should be suppressed by stringent 1aws, A bureau of public health should be established. The semi-contennial cf negro freedom in 1913 should be given fittlug recognition. Authority to appoint a com- mission to report on the desirabliity of holding expo- sition to show the porgress of the negro is requested. result in serfously hampering proper ad- ministration. Referm in Administration. {1t has been impossible In the preparation of imates greatly to reduce the cost of permanent administration. This | can not be done without a thorough reorganiza- tion of bureaus, offices and departments. For the purpese of securing Information which may enable the executive and the legislative branches to unite in a plan for the permanent reduction of the cost of sovernmental administration, the Treasury department has Instituted an investigation by one of the most skilled ~expert ac- countants in the United States. The result of his work in two or three bureaus, which, if extended o the entire government, must occupy two or more years, has been to | show much room for Improtement and op- | portunity for substantial redfictions in ths government which to its efficient the agencles of the can contribute anything handling. As a consequence of section 2 of the tariff act ef August 5 1903, it becomes the duty of the secretary of state to con- duct as @lplomatic bustness all the negotia tions neeemsary to place him in a posi- tion to advise me as to whether or not & particular country unduly discriminates against the United States In the sense of the statute referred to. The great scope and complexity of this work, as well as the obligation to lend all proper ald to our expanding commerce, s met by the expansion of the bureau of trade rela- tions ‘as set forth in the estimates for the Department of State. Bxpenditures and Revenue. that this epportunity should not be lost, the indispensable instrumentality presented itself when a group-of American bankers, of international reputation and great re- sources, agreed &t once to share ip the loan upen precisely such terms as this government should approve. The chiet of these terms was that American railway material sheuld be upon an exact equality with that of the other nationals joining in the loan in the placing of orders for this whole raflroad system. After months of negotiation the equal participation of Americans seems at last assured. It is gratifying that Americans will thus take their share in this extension of these great highways of trade, and to belleve that such activities will give a real impetus to our commerce and. will, prove a practicall, ‘corollary to our historie policy In the far east. Perhaps the most Important quesiion pre- sented to this administration Is that of Thet'fmperial, Chinese ‘governiffent in pursuance of fts decision to devote funds frém the portion of the indemnity; remitted by the United States to the sending of students to this country has already com- pleted’ arrangements for carrying out this purpose, and a considerable body of nludamp have arrived to take up their | work in our sthools and universities. No one can doubt the happy effect that the associations formed by these ropresenta- tive young men will have when they re- turn to take up their work in the pro- gressive development of their country. Control of Opium Traffie, The results of the oplum conference held at Sharighal last spring at the invitation of the United States have been lald be- fore the government. The report shows that China is making remarkable progress and admirable efforts toward the eradica- tion of the oplum evil and that the govern- ments concerned have not allowed their commercial Interosts to interfere with a hepful co-operation in this reform. Col- Iateral investigations of the oplum ques- tion is this country lead me to recommend that the manufacture, sale and use of oplum and its deriviatives in the United States should be so far possible more rigor- ocusly controlled by legislation Qur traditienal relations with the Jap- anese empire centinue cordial as usua As the representative of Japan, His Im- perial Highness Prince Kuni visited the Hudson-Fulten celebration. The recent visit of a delegation of prominent business men s guests of the chambers of cem- merce of the Pacific slope, whose repre- sentatives had beon 3o agreeably received in Japan, will Soubtiess eontribute te the growing tre acress the Pacific, as well as to that understanding which leads to mutua! appreciation. The arrange- ment’ of 198 for a co-operative control of the coming of laborers to the United States has proved to work satistactory. The matter of a revision of the existing treaty between the United States and japan which is terminable in 1912 is al- veady recelving the study of both coun- tries, The Department of State is considering the revision in whole or in part, of the existing treaty with Slam, which was con cluded In 156 and is now, In respect te many of its provisiens, out of date. Reorganizing Department of State. 1 enrnestly recommend te the faverable sction of the cengress the estimates sub- mitted by the Department of State and most erpecielly the legislation suggested In the secretary of state's letter of this Gate wherehy It wil be pessibie te de- velop and make permanent the resrganise- tion of the department upen medern lnes in a manner to make it a thoroughly ef- ficlent instrument In the furtherance ef our forelgn trade and of American teres abroad. The consular service has been greatly improved under the law of April 6, 1906, and the executive order of June 27, 1905, and I commend to your consideration the question of embodying In a statute the principles of the present executive order upon which the efficiency of our consular service is wholly dependent. Under a provision of the act of August 5, 189, I have appointed three offi- clals to aseist the officers of the government in collecting information necestary to a wise administration of the tarift act of August 5, 199. As to questions of customs administration they are c eperating with the officials of the Treasury and as to matters of ‘the agonomy revenue. ‘T'he deficit of the last fiscal year, and the certain deficit of the cur- Bent year, prompted congress (o throw a greater responsibility on the executive and the secretary of the treasury than had heretofore been declared by statute. This declaration impose upon the secreiary of the treasury the duty of assembling ail the estimates of the executive depari- ment bureaus, and offices, of the expens ditures necessary in the ensuing fiscai year, and of making an estimate of the revenues of the government for the same period; and if a probable deficit s thus shown, it Is made the duty of the president to recommend the metnod by which sucn deticit can be met. The report of the secretary shows that the oidinary expenditures for the current tiscal year ending June 30, 1910, will exceed the estimated receipts by $34,75,620. If 10| this deficit is added the sum to be dis-| bursed for the Panama canal, amounting to $38,000,000, and $1,600,00 to be paid on the public dept, the deficit of ordinary receipis | and exgenditures will be increased to & | total aekicit of $13,07,620. This deficit the | secretary proposes to meet by the proceeds | of bonds issued to pay the cost of con- siructing the Panama canal. I approve this proposal. | he policy of paying for the construction {of the Panama canal, not out of current | revenue, but by bond issues, was adopted | | tn the Spoener met of 144, and there seems te be ne good reason for departing from | the prineipie by which & part, at least, of | the burden of the cost of canal shall fall upon eur pesierity who are to enjoy It; and there is ail the more remson for ih View because the actusl cost te date ef the canal, whieh is mow half dene and | | whieh will we completed January 1, 181 shows that the cost of engineering and con- | struction will be §207,766,000, insiead of §130,- | 106,200, as originally estimaied. In addition | to engineering and construction, the other expenses, Inciuding sanitation and govern- | ment, and the amount paid for the proper- ties, the franchise and the pilvilege of | building the al, increase the cost. by | $i5,48,00, to a total of §375,201,00. The in- crease in the cost of engineering and con- siruction Is due to a substantial en-| largement ' of the plan (of construc- ton by widening the nal 100 feet ta the Culebra cut and by Increasing (he! | dlmenslons of the locks, o the under-| | estimate of the auantity of the werk to| e dene under the originel pian, and te an underestiimate of the cost of labor and materials, both of which have greaily en- hanced In price since the original estimate was made. Meading Off the Deficit, In order to aveld & deficil for the ensu- Ing fiseal your, I direcied the heads of d partments In the preparation of their st mates to make them low as possible | consistent with imperative governmental necessity. The result has been, as I am| advised by the secretary of the treasury, that the estimates of the expenses of the | government for the fiscal year ending Junu: | 9, 1911—that is, for the next fiscal year— | | are less by $56,663.000 than the total of ap- | propriations for the current fiscal year,| | and less by $94,000,000 than the estimates | | tor that year. So far as the secretary ot the treasury is able to form a judgment | as to future income, and compare it with the expenditure for the next fiscal year ending June 3, 1911, including the pay ments on account of the Panama canal and 1 | | | in expenditurek and sufficlency | | reclassitied according to the kind of work, cost and increased efficiency of adminis- tration. The object of the investigation is to devise means to increase the average efficiency of each employe. Yet there is great room for Improvement toward this end, not only by the reorganizatibn. ot bureaus and departments and in the avoid- | ance of duplication, but also in the treat- ment of the Individual employe. Under the present system it constantly happens that two employes receive the same salary when the work of one is far more difficult and important and exacting than that of the other. Superior ability is not rewarded or encouraged. As fhe classification is now entirely by salary, an employe often rises to the highest class while doing the easiest work, for which alone he may be fitted. An investigation ordered by my predecessor resulted in the recommendation that the civil service be 0 that the work requiring most application and knowledge and ability shall receive most compensation. I believe such a change would be fairer to the whole force and would permanently improve the personnel of the service. Civil Service Peunsions, More than this, every reform toward the improvement in the average efficlency of government employes must depend on the ability of the executive to eliminate frem the government service these whe are inefficient from sny ocause, d the degres of efficieney /In all the artments (s mueh lessened by the reten- tlon of old employes who have outlived thelr energy and usefulness It is indis penzible to any proper system of economy that provisien be made se that their sepa- | ration from the mervice shall be y and | inevitable. It is impossible te make such | provision unless there is adopted a plan of ctvil pensions. Most of the great industrial organiza‘ions and many of the well conducted raflways of this country are coming to the eonclu- slon that a system of pensions for old em- ployes and the substitution therefor of younger and more energetic servants pro- motes both economy and efficiency of ad- ministration. I am aware that there is a strong feeling in both houses of congress, and possibly in the country, against the establishment of civil pansions, and that this has natu- rally grewn eut of the heavy burden of military pensions, which it has always been the peliey of sur gevernment to sume; but I am strengly convinced that no other practical selution of the difficulties Ppresented by the superannuation of civil rvants ean be found than that of a sys- tem of elvil pensions. Customs Hewse Framds. I regret te refer te the fact of the dls- covery of extensive frauds In the collec- tien of the customs revenue at New York city, in which a number ef the subordinate employes in the welghing and other de- partments were directly concerned, and in | which the beneficlaries were the American Sugar Refining company and others. The frauds consisted in the payment of duty on underwelghts of sugar. The government | has recovered from the American Sugar | Refining company' all that it is shown to have been defrauded of. The sum was re- celved in full of the amount due, which might have been recovered by eivil suit against the beneficiary of the fraud, but there was an express reservation in the contract of settlement by which the set- tiement should'not interfefe with, or pre- vent the criminal prosecution of everyone | who was found to be subject to the same. directed the public t, there will be no defieit in the year ending June 30, 1911, but & small surplus of §718.008. . . In the present estimaies the needs ef the departments and ef the governmenst have Besn eut. te the quick. se e speak, and any assumptien on the part of congress, % often made in times past, that the eati- mates have besn prepared with the ex- Criminal prosecutiens are now proceeding Against & number of the government offie- #rs. The Treasury department and the De- partment of Justice are exeriing: every affert te dimcover all the wrengdoers, In. cluding the officers and employes ef the companies who may have been privy te ment of Justice, as proposed, might by giving immunity and utherwise prove an ambarrassment in securing conviction of the gullty parties No Tariff War. Two features of the new tariff act call | tor special reference. ™, virtue of the | clause known as the “maximum and mini- mum” clause, it is the duty of the exe- cutive 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 States, and if the executlve finds such iaws and practices not to be unduly dis- criminatory against the United States, the minimum duties provided In the bill to go into force. Unless the prt duties provided In the bill, that is, increase of 25 per cent ad valorem over the minimum duties, are to be In force. Fear has been expressed that this power | conferred andl duty Impossed on the execu- tive 1s likely to lead to a tariff war. I beg to express the hope and belief that no such result need be anticipated | The discretion granted to the exeoutive by the terms ‘“unduly discriminatory' | wide. In order that the maximum. duty I shall be charged against the imports from !a country, it Is necessary that he shall find on the part of that country mot only diseriminations in its laws or the practice |under them against the trade of United Ktates, but that the discrimina- tions found shall be undue; that is, with- out good and fair reason. I concelve that |this power was reposed in the president with the hope that the maximum duties might never be applied In any case, but that the power to apply them would en- able the president and the State depart- ment through | cure the elimination from the laws and the practice under them of any foreign country of that which Is unduly discriminatory. No one is seeking a tarift war or a con- dition in which the spirit of retaliation shall be aroused. Work of Tariff Commission. 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 elause of the act and also to assist officers of the government in the administration of the entire law. An ex- amination of the law and an understanding of the nature of the facts which should be consldered in discharging the functions im- posed upon the executive show that I have the ‘power to direct the tariff board to make a comprehensive glossary and ency- clopedia of the terms used and articles em- braced in the tariff law, and to secure in- formation as to the cost of production ot such goods in this country and the cost of their production in foreign countries. |1 have therefore appointed a tariff hoard consisting of three members and have di- rected them to perform all the duties above described. This work will perhaps take two or three vears, and I ask from con- gress a continuing annual appropriation equal to that already made for Its prosecu- tlon. I belleve that the work of this board will be of prime utility and jmportance whenever congress shall deem it wise again to readjust the customs dutles. Changes in the Army. The secretary of war calls attention to a number of neceded changes In the army In all of which I concur, but the point upon which I place most em- phasis is the need for an elimination bill providing a method by which the merits of officers shall have some effect upon their advancement and by which the advance- ment of all ‘may be accelerated by the ef- fective elimination of a definite proportion of the least efficlent. There are in every army, and certainly in ours, a number of officers who do not violate their duty in any such way as to glve reason for a court-martlal or dismissal, but who do not show such aptitude and skill and character for high command as to justify their re- maining in the active service to be pro- moted. Provision should be made by whicn they may be retired on a certain praportion of their pay, increasing with their length of service at the time of retirement. There Is now a personnel law for the navy whieh itself needs amendment and to which 1 shall make further reference. Such a law is needed quite as mueh for the army. Ceast Defe The coast defenses of the United States proper are generally all that could be dé- sired, and in some respects they are rather more elaberate than under present condi- tions are needed to stop an enemy's flest from entering the harbors defanded. There Is, however, one place where additional de- fenme is badly needed, and that is at the mouth of Chesapeake bay, where it Is pro- posed to make an artificlal island for a fort which shall prevent an enemy’s fleet from entering this most important strategl- cal base of operations on the whele At- lantic and gulf coasts. I hope that ap- propriate legisiation will he adopted to se- cure the construction of this defense, The military and naval joint board have unanimously agreed that it would be un- wise to make the large expenditures which at one time were contemplated in the establishment of & naval base and station In the Philippine islands, and have ex- Pressed their judgment, In which 1 fully eoncur, in faver of making an sxtensive val base at Pearl Markor, near Honalulu, &nd not in the Philippines. This dces not dlspense with the necessity for the com- paratively small appropriations required to finish the proper coast defenses in the Philippines now under censtruetion on the island of Corregider and elsewhere or to Dlete a suitable repair station and coal- Ing supply station at Olongapo, where iy the floating dock “Dewey.” 1 hope that this recommendation of the joint board will end the discussion as to the comparative an | merits of Manlla bay and Olongapo “as naval stations, and will lead to prompt measures for the proper equipment and defense of Pear! harbor. Condition of the Navy. its voyage around the world, In more &f- ficlent condition than when It started, wa: a noteworthy event of Interest alike to our citisens and ‘the naval authorities of the world. Besides the beneficial and far- reaching effect on our personal and diplo- matic relations in the eountries which the fleet visited, the marked suceess of the ships In steaming around the world in all Weathers on schedule time has increased respect for our navy and has added te our netional prestige. Our enlisted personnel recruited from all the defraud It weuld seam te me that an investigation of the fraude by ocen- gress at present, pending the probing by Ampertant subject all | pectation thet they may be reduced, will|the Treasury department and the Depart- sections of the eountry is young and en- ergetic and representative of the natiena makes such a finding, then the maximum’ the | triendly negotiation to se- | The return of the battieship fleet from | the modern man-of-warsmen. Our officers are earnest and zeaious in thelr profession, but it s a regretable fact that the higher officers are old for the responsibilities of tho modern navy, and the admirals do not arrive at flag rank young enough to ob- taln adequate training in their duties as | flag officers. This need for reform in the navy has been ably and earnestly presented to congress by my predecessor, and I also urgently recommend the subject for con- sideration. Early in the coming session & compre- hensive plan f.r the reorganization of the officers of all corps of the navy Wil be presented to cougress, ard I hope 1t will meet with action suited to its urgency. Owing to the neecessity for economy In expenditures, 1 have directed the curtail- mient of recommendations for naval appr priations so that they are thirty-elght mil- llons less than the corresponding estimates of last year, and the request for new naval construction 1s limited to two first-class battleships and one repair vessel Tho use of a navy is for military pur- poses, and there has been found need in the department of a military branch deal- ing directly with the military use of the fleet. The secretary of the navy has also felt the lack of responsible advisers to atd him in reaching conclusions and deciding important matters between co-ordinate | branches .of the department. To secure these results he has inaugurated a tenta- tive plan involving certain changes in the organization of the Navy department, in- cluding the navy yards, all of which have been found by the attorney general to be in accordance with law. 1 have approved the execution of the plan proposed becauss of the greater efficiency and economy it promikes. Reform in Judicial Proceure. The deplorable delays in the administra- tion of civil and criminal law have re- celved the attention of committees of the American Bar assoclation and of many state bar assoclations, as well as the con- sidered thought .of judges and jurists. In my judgment a change in judicial proce- dure, with a view to reducing its expense to private litigants In civil cases and facll- itating the dispatch of business and final decision In both eivil and erminal cases, constitutes the greatest need In our Amer- lean institutions. 1 do not doubt for one | moment that much of the lawless violence and cruelty exhibited in lynchings is di- rectly due to the uncertainties and injus- tica growing out of the delays in trials, judgments and the executions thereof by our courts. Of course, these remarks apply quite as well to the administration of jus- tice In state courts as to that in federal courts, and without making Invidious dis- tinotlon it is perhaps not too much to say that, speaking generally, the defects are less in the federal courts than In the siate courts. But they are very great In the fed- eral courts. The expedition with which bus- iness is disposed of both on the etvil and the criminal side of English courts upder modern rules of procedure makes the de- lays in our courts scem archalc and bar- barous. The procedure in the fedaral courts should furnish an example for the state courts. I presume it Is impossible, without an amendment to the constitution, to unite under one form of action the pro- ceedings at common law and proceedings in equity in the federal courts, but It is certainly not impossible by a statute to simplify and make short and direct the procedure both at law and In equity in those courts. It is not impossible to cut down still more than it is cut down the jurisdietfon of the supreme court so as to confine it almost wholly to statutory and constitutional questions. Under the present statutes. the equity and admiralty proce- dure in the federal courts Is under the con- trol of the supreme court, but In the pres- sure of business to which that court is subjected it is impossible to hope that a radical and proper reform of the federal equity procedure can be brought about. 1 therefore recommend legislation provid- Ing for the appointment by the president of a commission with authority to exams ine the law In equity procedure of the fed- eral courts of first instance, the law of ' appeals from those courts to the courts of appeals and to the supreme | court, and the costs Imposed in such proce- dure upon the private litigants and .upen | the public treasury and make recommenda- |tlon with & view to simplifying and expe- diting the procedure as far as possible ard making it as inexpensive as may be te the litigant of Ilittle means. Abuse of Injuno: . The platform of the successful party in the last election contained the following: |, The republioan party will uphold at all | times the authority and Integrity of the | courts, state and federal, and will ever inslst that their powers to enforce thelr proc and to protect life, liberty and ropérty shall he preserved Inviolafe. elieve, however, that the rules of p cedure in the fedefal courts with rewpeot to the issuance of the writ of injunction should be more accurately defined by statute and that no Injunction or temporary restra‘ning order should be Issued without notice, exeept whers Irrapar- able Injury would result from de in which case a rpeedy hearing theredfter should be granted. 1 recommend that In compliance with the promise thus made, appropriate leg(slatfon | be adopted. The ends of justice will best | be met ana the chief cause of complaint against fll-considered Injunctions without | notiée will be removed by .the, enactment of a statute forhidding hereafter the lssu- ing of any Injunction or restraining order, whether temporary or permanent, by any federal court, without previous notice and | 8 ressonable oppertunity to be heard on | behalt of the parties to be enjoined; un- {Tees It shall appear to the satisfaction of the court that the delay necessary to give such notles and hearing would result in irreparable infury to the complainant and | unless also the court from the evidence make a written finding, which shall be spread upon the - court minutes, - that immediate and frreparable infury is lkely | to ensue to the complamant, and shall de- | fine the injury, state why it is irreparable, | and shall also endorse on the order issued the date and“the hour of the issuance of the order. Morcover, every such injunction or restraining order lssued without pre- | vious notice and opportunity by the de. fendant to be heard should by force of the statute expire and be of no effact after seven days from the Issuance thereof or within any time less than that period which the court may fix, unless within such seven days-or such less period, the in- junction or order Is extended or renswed. after previous notice and opportuaity 1o be heard. ) My judgment I3 that the passage of such a0 act which really embodies the best prace tice in equity and {s very like the rule ng in foree in seme eourts will prevent - wpirit. It s, mortover, owing to its in- telligence, capable of quick tra!ning into B ——— (Continued on Eleventh Page) -/