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TAFT'S MESSAGE UP TO CONGRESS President Breaks. Record For Length of Document iEFENDS PAYNE TARIFF ACT. Deals With Panama Canal, Postal Sav inga Bank, Parcels Post and Conser vation-Asks For Raise of Judicial Salarie.-Roommendation For Fit ting Honor For Peary. Waswington, Dec. 6.-The president bent the following message to congress today: Fo the Senate and House or Repre sentatives: During the past year the foreign re lations of the United States have con tinued upon a basis of friendship and good understanding. The year has been notable as wit 3iessing the pacific settlement of two Important international controversies !before the permanent court of The Hague. i4he arbitration of .he fisheries dis paf between the United 9tates and Great Britain, which has been the source of nearly continuous diplomatic lorrespondence since the fisheries con Ivention of 1818, has given an award orhich t satisfactory to both parties. Peace Commission. Appreciating these enlightened tend bncles 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 the president of the United States to consider the expediency of utilizing existing International agencies for the furpose of limiting the armaments of the nations of the world by internation al agreement and of constituting the ,combined navies of the world an inter mational force for the preservation of iniversal peace and to consider and report upon any other means to dimin ish the expenditures of government for m3tilitary purposes and to lessen the probabilities of war." The work of the international fish eries commission appointed in 190& Finder the treaty of April 11, 1908, be tween Great Britain and the United Istates, has resulted in the formula ~on and recommendation of uniform segulations governing the 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 anffairs duiring the past year has again been China. It is gratifying to note that the ne gotiations 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 as the Hukuang loan, were concluded by the representatives of the various !fnancial groups in May last and the results approved by their respective governments. Tariff Negotiations. The new tariff law in section 2 re specting the maximum and minimum tariffs of the United States, which pro visions came into effect on April 1, 1910. imposed upon the president the responsibility of determining prior to that date whether or not any undue discrimination existed against the United States and its products in any country of the world with which we sustained commercial relations. The policy of broader and 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, 1909, has proved mutually ben eficiaL It justifies further efforts for 'the readjustment of the 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 the boundary line. The Department of State. All tariff negotiations, so vital to our 'commerce and industry, and the duty of jealously guarding the equitable and just treatment of our products, capital and industry abroad 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 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 en deavors for further trade expansion. An instrumentality indispensable to the unhampered and natural develop ment of American commerce is mner chant marine. All maritime and comn mercial nations recognize the imnpor 'tauce of this factor. The greatest com mercial natiOns, our competitors, jiea1-' ously foster their merchant miarine I alluded to this most important si ject in my est annual message. It ha:s ~often been before you, and I need niot' ~recapitulate the reasons for its recomn Fmendationl. Unless prompt action be ~taken the completion of the Panama canal will find this the only great comn-I ~mercial nation unable to avail In inter-1 ~nation, ime business of this greait c*ontrib)utionl t th"' means of the world's~ For many reasons 1 cannot too strong ly urge upon the congress the passage of a measure by mail subsidy, or other subvention adequate to guarantee the establishment and rapid development of an American merchant marine, the restoration of the American flag to its ancient place upon the seas. Estimates For Next Year's Expenses. The final estimates for the year end ing June 30, 1312, as they have been sent to the treasury on Nov. 29 of this year for the ordinary expenses of the government, including those for pub lic buildings, rivers and harbors and the navy building program, amount to $630,494,013.12. This is $52,964.887.36 less than the appropriations for the fiscal year ending June 30, 1911. It is $16,883,153.44 less than the total esti mates, including suplemental esti mates submitted to congress by the treasury for the year 1911, and is $5. 574,659.39 less than the original esti mates submitted by the treasury for 1911 These figures do not include the ap propriations for the Panama canal, the policy in respect to which ought to be and is to spend as much each year as can be economically and effectively ex pended in order to complete the canal as promptly as possible, and there fore the ordinary motive for cutting down the expense of the government does not apply to appropriations for this purpose. It will be noted that the estimates for the Panama canal for the ensuing year are more than $56, 000,000, an increase of $20,000.000 over the amount appropriated for this year, a difference due to .the fact that the estimates for 112 include some-' thing over $19,00,000 for the fortifica tion of the canaL Against the estimates of expendi tures, $630,494013.12, we have esti mated receipts for next year $680, 000,000, making a probable surplus of ordinary receipts over ordinary ex penditures of about $50,000,000, or, taking into account the estimates for the Panama canal, which are $56,920, 847.69 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 the canaL The cost of the fortifications Is about $19,000,000. Should there be no appropriations this year for fortifi cations then there would be, even in cluding the 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 uite as easily prevented and much more economically by the revenue cut ter service and by the use of the spe cial agent traveling force of the treas ury department. Very great Improvements have been made in respect to the mints and as say offices. Diminished appropriations have been asked for those whose con tinuance Is unnecessary, and this year's estimate of expenses is $326,000 less than two years ago. In the bureau of engraving and printing great economies have been effected. Useless divisions have been abolished, with the result of saving $440.000 this year in the 'total ex penses of the bureau despite increased business. Revenues. As the treasury department is the one through which the income of the government is collected and its expend tures are disbursed this seems a proper place to consider the operation of the existing tariff bill, which be came a law Aug. 6, 1909. As an in come producing measure the existing tariff bill has never been exceeded by any customs bill in the history of the country. The corporation excise tax, propor tioned to the net income of every busi ness corporation in the country, has worked well. The tax has been easily collected. Its prompt payment indi cates that the incidence of the tax has not been heavy. It offers, moreover. an opportunity for knowledge by the government of the general condition and business of all corporations, and that means by far the most important part of the business of the country. In the original act provision was made for the publication of returns. This provision was subsequently amended by congress and the matter left to the regulation of the president. I have di rected the issue of the needed regula tions and have made it possible for the public generally to k-now from an ex amination of the record the returns of; all corporations the stock of which is listed on any public stock exchange or* is offered for sale to the general pub lic by advertisement or otherwise. The returns of those corporations whose stock is not so listed or offered for sale are directed to be open to the in spection and examination of creditors and stockholders of the corporation whose record is sought. The returns of all corporations are subject to the inspection of any government officer or to the examination of any court, in which the return made by the c.)Jopora tion is relevant and competent evi dence. - The Payne Tariff Act. The scheduxles of the rates of duty in the Paynte taxriff aet have' beenl sub jeted to a great deal of crii5ts. some of it justL ,more of it ufudd :ad to miuch misrepre~semat:1ion. ThM delarat ion b;y t he pa rty which is re sp)osible for it t hat a customs~ hi; shruml! he :a t::rni for the~ prIot~ction of hiome ind(ustries. the m1e:isure of protection to be thle differene* het wven the cost of producing the imported a: tIcle abroad and the cost of p)roduc'imt It at home, together with such addi ton to that difference as might givej a reasonmble profit to the trme pro dner. Th a sie fote the. criffciinm of thia tariff is that in respect to a numbc of the schedules the declared measui was not followed, but a higher diffe ence retained or inserted by way c undue discrimination in favor of ce tain industries and manufactures. Little, if any, of the criticism of th tariff has been directed against tI protective principle above stated, bt the main body of the criticism has bee based on the charge that the attem to conform to the measure of prote( tion was not honestly and sincerely a hered to. Tariff Board. The time In which the tariff was pr< pared undoubtedly was so short as i make It impossible for the congres and its experts to acquire the inform tion necessary strictly to conform t the declared measure. In order to avoi criticism of this kind In the future an for the purpose of more nearly conforn Ing to the party promise congress at i1 last session made provision at my r( quest for the continuance of a board cr( ated under the authority of the max mum and minimum clause of the tari bill and authorized,this board to expen the money appropriated under my d rection for the ascertainment of th cost of production at home and abroa of the various articles included in th schedules of the tariff. The tari: board thus appointed and authorize has been diligent in preparing itself fc the necessary investigations. The hop of those who have advocated the us of this board for tariff purposes is tha the question of the rate of a duty in posed shall become more of a busines question and less of a political que; tion, to be ascergned by experts c long training and accurate knowledgi The halt in business and the shock t business due to the announcement tha a new tariff bill is to be prepared an put -in operation will be avoided b treating the schedules one by one a occasion shall arise for a change in th rates of each and only after a repor ;pon the schedule by the tariff boar competent to make such report. It is not likely that the board will b able to make a report during the pres ent session of congress on any of th schedules, because a proper examins tion inVolves an enormous amount C detail and a great deal of care, but hope to be able at the opening of th new congress, or at least during th session of that congress, to bring t Its attention the facts in regard t those schedules In the present tari that may prove to need amendment. The carrying out of this plan, 0 course, involves the full co-operatio of congress in limiting the considera tion In tariff matters to one schedul at a time, because If a proposed ament ment to a tariff bill Is to involve complete consideration of all th schedules and another revisiofl the we shall only repeat the evil frox which the business of this country ha In tirnies past suffered most grievousi by stagnation and uncertaInty, pen( ing a resettlement of a law affectin all business directly or indirectly, an the effect of which no wise busines man would ignore In new projects an new investments. The inquiries which the members c the tariff board made during the las summer into the methods pursued b other governments with reference t the fixing of tariffs and the determinm ion of their effect upon trade sho' that each government maintains an 0: fie or bureau, the officers and en ployees of which have made their lii work the study of tariff matters, c foreign and home prices and cost c articles imported and the effect of tb tariff upon trade, so that whenever hange is thought to be necessary I the tariff law this office is the sourc of the most reliable information as I the propriety of the change and its e: fet. I am strongly convinced that w need in this government just such a office and that it can be secured b making the tariff board already al pointed a permanent tariff commissi with such duties, powers and emolh ments as It may seem wise to congres to give. It has been proposed to ex large the board from three to five. Tb present number is convenient, but do' not know that an increase of tw members would be objectionable. I recommend that congress establis a commission to determine as early a practicable a comprehensive preicy fc the organization, mobilization and at ministration of the regular army. th organized militia and the voluntee forces in the event of war. Need For Additional Officers. One of the great difficulties in tb prompt organization and mobilizatio of militia and volunteer forces is th absence of competent officers of tb rank of captain to teach the new arma by the unit of the company, the bus ness of being soldiers and of takin care of themselves so as to render e fective service. This need of arm officers can only be supplied by pr< visions of law authiorizing the appoin met of a greater nuimber of ar~my a feers than are needed to supply thi commands of regular army troops not enlisted in the service. in (rder that the militia of ene state shou'd be properly drilled an made moire like the regular army. re; uiar army oflicers shouhi be detaile to assist the adjutant general -> enec state in the s!:pervision of tha stat mili :a. !I"t t!: s is impIlossi'>le un'.: pr)vision is ;:ade by coge for vey~ consi1erle in:re:me in -!:e nun. her oif <-om1pany and iield 2ieers c the army. I have directed that tile estimr-te for ap)propriation for the improvemer of coast defenses in the United State should be reduced to a minimun while those for the completion of th needed fortifications at Corregidor, i the Philippine Islands, and at Peai arbor, in the Hawaiian Islandi rshould be expedited as much as possi *e ble. r- Philippine Islands. o During the last summer at my re 7- quest the secretary of war visited the Philippine Islands and has described e his trip in hiz report. He found the e Islands in a state of tranquillity and [t growing prosperity, due largely to the n change In the tariff laws which has >t opened the markets of America to the products of the Philippines and has 1. opened the Philippine markets to 'American manufactures. Panama Canal. At the Instance of Colonel Goethals, 0 the army engineer officer In charge of s the work on the Panama canal, I have t- just made a visit to the Isthmus to, In o spect the work done and to consult d with him on the ground as to certain d problems which are likely to arise in the near future. The progress of the s work Is most satisfactory. If no un expected obstacle presents Itself the canal will be completed well within the time fixed by Colonel Goethals-to wit, Jan. 1, 1915-and within the estimate of cost, $375,000,000. . Among questions arising for present e solution Is the decision whether the canal shall be fortified. I have already e stated to the congress that I strongly y favor fortification, and I now reiterate this opinion and ask your consideration r of the subject in the light of the report e already before you made by a compe e tent board. t If in our discretion we believe mod ern fortifications to be necessary to the s adequate protection and policing of the canal, then it is our duty to construct f them'. We have built the canal. It is our property. By convention we have indicated our desire for and Indeed un t dertaken Its universal and equal use. S It is also well known that one of the chief objects In the construction of the canal has been to increase the military e effectiveness of our navy. t Failure to fortify the canal would leave the attainment of both these aims in the position of rights and ob e lgations which we should be powerless to enforce and which could never in any other way be absolutely safeguard ed against a desperate and irresponsi f ble enemy. In determining what the tolls In the canal should be we certainly ought not e to insist that for a good many years e to come they should amount to enough to pay the interest on the investment of $400,000,000 which the United States has made in the construction of the canal. We ought not to do this, first, because the benefits to be derived by the United States from this ex apenditure are not to be measured solely by a return upon the investment My own impression is that the tolls ought not to exceed $1 per net ton. On eJan. 1, 1911, the tolls in the Suez canal are to be 7 francs and 28 centimes for aone net ton by Suez canal measure sment, which is a modification of - Danube measurement A dollar a ton ~.will secure under the figures above a gross annual income from the Panama canal of nearly $'7,000,000. The cost sof maintenance and operation Is esti mated to exceed $3,000,000. The next question that arises Is as to the maintenance, management and tgeneral control of the canal after its Scompletion. It should be premised that it Is an essential part of our navy ~establishment to have the coal, oil and ~other ship supplies, a drydock and repair shops conveniently located with reference to naval vessels passing e through the canal. Now, if the govern ment for naval purposes is to under f take to furnish these conveniences to e the navy, and they are conveniences a equally required by commercial yes sels, there would seem to be strong reasons why the government should take over and include in its manage - ment the furnishing not only to the navy, bu't to the public, drydock and e repair shop facilities and the sale of a coal, oil and other ship supplies. Y The maintenance of a lock canal of & this enormous size In a sparsely popu I lated country and in the tropics, where -the danger from disease is always s present, requires a large and complete -and well trained organization with e full police powers, exercising the ut I most care. o I cannot close this reference to the canal without suggesting as a wise b amendment to the Interstate commerce s law a provision prohibiting interstate r commerce railroads from owning or - controling ships engaged in the trade e through the Panama canaL I believe r such a provision may be needed to save to the people of the United States 1the benefits of the competition in trade e between the eastern and western sea a boards which this canal was constru.Ct e ed to secure. e Department of ,Justice. , I am glad to say that under the ap propriations made for the department Iof justice the attorney general has so improved its organization that a vast amount of' Jitigation of a civil and crimin..l chiaracter has been disposed c during the current year. This will ex (plain the necessity for slightly in creasing the estimates for the ex penes of the dep,artnment His report shows the recoveries made on behalf cof the goveriinent. of duties fraudu .len y withhela. apuMe innds improp ery patented. fines end1 penalties for h trass. prosecutions rind convictions euder iie :si-trust haiv :nu prosecu S tonls u:rier'~ ime~rst:ate comme!>rce law. I is- caprm+11 :vtenti mn to the fthe so ede id "hu-1:M sh1ois" and of those schemV:ss to dt:m;d in wh1ich the use of the mn:i3 is an e ;seit!al part *of the frauduienmt e.1tzpir;t-y. prosecu-. t tions which have saved i'norant and weak members of the pubilc and are saving them millions of dollars. The violations of the anti-trust law n rsent perhaps t' P most important .itation before the department and theurihr o assfiled shows the activity of the government in enforc ing that statute. Judicial Procedure. One great crying need in the United States is cheapening the cost of litiga tion by simplifying judicial procedure and expediting final judgment Under present conditions the poor man is at a woeful disadvantage in a legal con test with a corporation or a rich op ponent. The necessity for the reform exists both in United States courts and in all state courts. In order to bring it about, however, it naturally falls to the general government by its example to furnish a model to all states. A legislative commission ap pointed by joint resolution of congress to revise the procedure in the United States courts has as yet made no re port. I am strongly convinced that the best method of improving judicial pro cedure at law is to empower the su preme court to do it through the me dium of the rules of the court, as 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 his case by the su preme court He should be satisfied by one hearing before a court of first instance and one review by a court of appeals. The proper and chief useful ness of the supreme court, and espe cially the supreme court of the United States, is in the cases which come be fore it so to expound the law and espe eially the fundamental law-the con stitution-as to furnish precedents for the Inferior courts in future litigation and for the executive officers in the construction of statutes and the per formance of their legal duties, There fore any provisions for review of cases by the supreme court that cast upon that court the duty of passing on ques tions of evidence and the construction of particular forms of instruments, like indictmentq or wills or contracts, de cisions not of general application or Importance, merely clog and burden the court and render more difficult Its higher function, which makes it so im portant 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 the passage of the bill now pending for the increase In tfie salaries of the fed eral judges, by which the chief justice of the supreme c9urt shall receive $17, 500 and the rssociate justices $17,000, the circuit judges constituting the cir cut court of appeals shall receive $10, 000 and the district judges $9,000. The positions they occupy ought to be filled by men who have shown the greatest ability In their professional work at the bar, and It is the poorest economy possible for the government to pay salaries so low for judicial service as not to be 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 the post office department which has been met by appropriation from the treasury. The appropriation estimated for last year from the treasury over and above the receipts of the department was $17,500,000. I am giad to record the fact that of that $17,500.000 estimated for $11,500,000 were saved and return ed to the treasury. It is gratifying to report that the reduction in the deficit has been accomplished without any curtailment of postal facilities. Upon the recommendation of the postmaster general I have Included In the classified service all assistant post masters, and I believe that this giving a secure 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 minstration. The Franking Privilege. The unrestricted manner In which the franking privilege Is now 'being used by the several federal services and by congress has laid It open to se rious abuses. Parcels Post. With respect to the parcels post, I respectfully recommend Its adoption on all rural delivery routes and that eldven pounds, the international limit, be made the limit of carriage in such post The postoffice department has a great plant and a 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 a new organization were necessary It would be impossible to do without ex travagant expenditure. That Is the reason why the postal savings bank can be carried on at a small additional cost and why it is possible to incor porate at a very Inconsiderable ex pense a parcels post in the rural de livery system. Peary. I unite with the secretary In the rec ommendation that an appropriation be made to coustruct a suitable crypt at Annapolis for the custody of the remains of John Paul Jones. The unparalleled achievement of Peary In reaching the north pole, April 6, 1909. approved by critical examina tion of the most expert scientists, has added to the distinction of our navy, to which he belongs, and reflects credit upon his country. His unique success has received generous acknowledgment from scientific bodies and institutions of learning in Europe and America. I recommend fitting recognition by con gress of the great achievement of Rob ert Edwin Peary. For Eight Hour Day. It seems to me from the past history that the government has be~en comn mitted to a nolicy ot ."- -'a ,e mji ii limitation of the day's work to elghf hours in all works of construction initi ated by Itself, and it seems to me 11 logical to wantaw. a difference between government work done on government soil and 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 a system of compensation for indus trial accidents to supplant our present thoroughly unsatisfactory system of employers' liability (a subject the 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 be invited to hold its meeting in 1913 In Washington and that an appropriation of $10,000 be made to cover the necessary expense of organizing and carrying on the meeting. Safety Appliances and Provisions. The protection of railroad employees from personal injury Is a subject of the highest importance and demands continuing attention. Negro Exposition. I also renew. my recemmendation that steps be taken looking to the hold ing of a negro exposition in celebra tion of the fiftieth anniversary of the issuing by Mr. Lincoln of the emanci pation proclamation. Conservation. Nothing can be more important In the matter of -conservation than the treatment of our forest lands. Speak-' ing generally, the government has re served of the existing forests about 70 per cent of all the timberlands of the, government Within these forests (in cluding 26,000,000 acres in two forests In Alaska) are 192,00,000 acre of which 106,000,000 acres are in the United States proper and include with. in -thei boundaries something like 22, 000,000 acres that belong to the states or to private individuals. We have,' then, excluding Alaska forests, a total of about 144,000,000 acres of forests belonging to the government which are being treated in accord with the principles of scientific forestry. The law now prohibits the reserva tion of any more forest lands in Ore gon, Washington, Idaho, Monta=a8, Colorado and Wyoming except by act of congress.. I am Informed by the department of agriculture that the government owns other tracts of tin-. berland in these states which should be included in the forest reserves. recommend to congress that the limi tation herein imposed be repealed. In the present forest reserves there are lands which are not properly forest land and which ought to be subject to homestead entry. Coal L.ands. - The next subject, and one most ilm portant for your consideration, Is the disposition of the coal lands In the United States and in Alaska. *At the beginning of this administration there were classified coal lands in the Unit ed States amounting to 5,476,000 acem and there were withdrawn from entry. for purposes of classification 17,867,000 acres. Since that time there have been: withdrawn by my order from eintryi orclassification 78,977,745 acres, mak-: ing a total withdrawal of 96,844,745 acres. Meantime of the acres thus withdrawn 10.061,889 have been classi-' fled and found not to contain coal and have been restored to agricultural en try and 4,726,091 acres have been clas-: sified as coal lands, while 79,903,239 0 acres remain withdrawn from entry and await classification. In addition 337,000 acres have been classified as coal lands without prior withdrawal, thus increasing the classifed coal lands to 10,429,372 acres. The question as to how great .an area ought to be included In a lease to one individual or corporation Is not free from diffnculty, but in view of the fact that the government retains con-. trol as owner I think there might he some liberality in the amount leased and that 2,500 acres would not be :too great a maximum. The leas,e 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 the whole .subject may be presented t) congress, but after a full consideration I favor a leasing system and recomn mend it.4 The needed oil and gas law is essen tially a leasing law. In their nat occurrence oil and gas 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 sun 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. The water power sites subject is one that calls for new legislation, It has: been thought that there was danger of combinaL,lon to obtain possession of all the power sites and to unite them under one control. Whatever the evi dence of this or lack of It, at present Iwe have had enough experience to know that 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, and the temptation would promptly att-act investors, and the danger of monopoly and extortion would not be ai remote one. However this may be. it Is the plain Iduty of the government to see to It that In the utilization and develop ient of all this Immense amount of rater power conditions shall be urm gosed that wil! prevent extortionate' t harges. which are the usual accomnpa