The herald and news. (Newberry S.C.) 1903-1937, December 09, 1910, Page EIGHTEEN, Image 18
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