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THE EYENINQ STAR. PUBLISHED DAILY. EXCEPT SUNDAY. fosistu OSce. 11th StrMt u< Pennfylr?ni? Arena*. The Evening Star Newspaper Company. B. H. KAijmUNlf. President Hew York 012 ce: Tribune Building. Chie*g? Cflln: Tribune Banding. The JCwntng Star la (erred to mihsrrlben In the elty by carriers, on their own account, at 10 cent* per week, or 44 cents per month. Copies at tae counter. 2 rent* each By mall- anywhere in the U. K. or Canada?postage prepaid?CO cents per month. Saturday Star, 32 pages. $1 per year; with for eign pofftaire added. $S.ftO. (Entered at the TY?st Office at Washington, D. a* second-class mall matter.) CT All mail subscriptions must be paid In adTaaCfe Rate* of advertising made known ou application. Part 2. Pages 117=24. WASHINGTON, D. C., MONDAY, DECEMBER 7, 1903-TWENTY-FOUR PAGES. You talk to more than 100,000 well-to-do purchasers every day when you advertise in THE EVENING STAR.* AFFAIRS OF THE DISTRICT Annual Report of the Commis sioners Submitted. INFORMATION OF CONGRESS Recommendations Renewed for Ad vances From Treasury. THE EXTRAORDINARY IMPROVEMENTS The District Commissioners today for warded to the President their annual re port relative to the affairs of the District of Columbia during the fiscal year ending June 30. ltXB. The report was transmitted to Congress by the President simulta neously with his annual message. It con tains the recommendations of the District authorities relative to legislation for the benefit of the District, reviews in detail the operations of the various departments of the District government during the year, and mentions the Important events in con nection with the municipality which have occurred since the last annual report. The report Is as follows: The President: The Commissioners of the District of Columbia herewith submit for the information of Congress, pursuant to the requirements of section 12 of an "Act providing a permanent form of government for the District of Columbia." approved June 11. 1878 (20 Stat. L? 108). a report of their official doings for the fiscal year ended June 30. 1903: Financial. The total expenditures for the year, ex clusive of those for the water department and expenditures on account of special and trust funds, were $9,08S,554.67. This amount embraced $9,051,980.09 appropriated for the fiscal year 1903 and prior years, and $36, 674.58 appropriated for the fiscal year 1904 and made Immediately available, the de tails of which appear in the accompanying report of the auditor. During the year the indebtedness of the District for advances from the United States Treasury In pursuance of the follow ing law was reduced from $1,759,238.34 to $1,053.517.51, and $35,184.76 applied in pay ment of Interest on the former amount. Sec. 8. That until and including June thirtieth, nineteen hundred and four, the Secretary of the Treasury is authorized ar.d directed to advance, on the requisition of the Commissioners of the District of Columbia, made in the manner now pre scribed by law. out of the moneys in the Treasury of the United States not other wise appropriated, such sums as may be necessary from time to time to meet the general expenses of said District, as au thorized by Congrtss and to reimburse the Treasury for the portion of said advances payable by the District of Columbia out of the taxes and revenues collected for the support of the government thereof: Pro vided. That all advancis made under this act and under the acts of February elev enth, nineteen hundred and one. and June first, nineteen hundred and two, not re imbursed to the Treasury of the United States on or before June thirtieth, nine- I teen hundred and four, shall be reimbursed ' to said Treasury out of the revenues of the District of Columbia from time to time, within live years, beginning July first, nine teen hundred and four, together with inter est ther?on at the rate of two per centum per annum until so reimbursed: Provided further, That Interest on ad vances made prior to June thirtieth, nine teen hundred and two. In the accounts of the District of Columbia with the United Btutes shall be computed for the fiscal year nineteen hundred and three and paid imme diately after the close thereof from the revenues of the District of Columbia, and the same rule of computation and payment of Interest shall apply to all advances made for the fiscal year nineteen hundred and three, and subsequent fiscal years: Pro vided further. That the Auditor for tho State and other Departments and the aud itor of the District of Columbia shall each annually report the amount of such ad vances. stating the account for each fiscal year separately, and also the reimburse ments made under thi? section, together with the balances reHnalning. If any, due to the United States: And provided further. That nothing contained herein shall be so construed as to require the United States to bear any part of the cost of street exten sions, and all advances heretofore or here after made for this purpose by the Secre tary of the Treasury, shall be repaid in full from the revenues of the District of Colum- j bia. That all laws and parts of laws inconsist ent with this act are repealed. Approved. March 3, 1903. If the total appropriations for which the District funds were liable up to June 30, 190K, had been expended, advances from the Treasury aggregating $3,206,867.74 would have been required; tho difference between the actual advances ar.d the total author ized liability being principally due to the fact that a large part of the latter, embrac ing among other items those for sewage disposal and the filtration plant, had not matured The Commissioners have recently been advised by the Comptroller of the Treasury that the District has a further matured liability of $300,000. for two pay ments of $150,000 each to the Treasurer of the United States in trust for the Baltimore ?nd Ohio Railroad Company, to meet the District's half of $1,800,000 required to be paid in connection with the railroad ter minal improvements under the act of Feb ruary 12. 1901. Water Department. The revenues of the water department during the year 1903. Including repayments, ?mounted to $*64,860.02, which were $91. ja?.9S less than the expenditures by requisi tion during that period. The balance In the water fund at the beginning of that year was $419,233.92, thus leaving a balance in the Treasury to the credit of the Itaud on June 80. 1806. of pmflMM, ?* which Is pledged to the construction of the new Trumbull street pumping station, now In process of erection. Indebtedness. Funded Debt.?The funded debt of the District of Columbia on June 30, 1903, was $12,923,630.18, all of which was Incurred un der the forms of local government which existed In the District prior to July 1, 1878. The following details of that debt are taken from the report of the Treasurer of the United States, who is charged by law with its management: r a P ? = s'? t IP s o?? = "C ? ~ a !< > e r e. S 2 a 1 = St 8 I %5< 1 - 3 **? 3 O * 3 ? ? 3 P * Bi i" I: I. a B fr 2. a c oasoosoe 5 S els SI'S 5? a-?3 SSS=3 = 32So. o o ? ?* c" o" s ^ cr O D3HS333Jft3 coCjoOc ij*? ST PC ? es - - 52 ? OB ??.=.* ;?2.S = 3' E-=?F?oi?rg 5****52 c o 2 a c ? ? c c 2 5 5 d 3 cctc S 9 9 ? 9?? << vj Brr,c,< -d c t 35 ^ c J n d i.*? s= i 3 2 ra c s ~ S3 C - B 3 C B = ???w g a o 3 2.^ * J? 3. 1 c j ex 5 a : * 0 :: b . ? cr gm 5 o *5 No change has occurred in the status of the conditional obligations of the District to redeem certain drawback certificates issued for overcharges of special assess ments levied by former municipal govern ments of the District, aggregating about $10,(100, a full statement of which appears on page 4 of the Commissioners' annual report for 1SXK). General Assessment. The assessor reports the assessment of taxable real and personal property In tha District of Columbia for the fiscal year erded June 30, 1903, as follows: Washington city: Taxable valuation of land. $94,230,403 Taxable valuation of im provements 77.071,975 $171,302,378 Washington county: Taxable valuation of land. $24,898,OSS Taxable valuation of Im provements 12,318,400 37,217,058 Total n?sosse<l value of taxable real estate $208,519,430 l'ersonal property $19,350,839 Street railway* taxed on gross receipts 2,S93,007 22,249,936 Total assessed value of taxable real estate and personal property In the District of Columbia on June 30. 1903 $230,769,372 Bate of General Tax. The rate of general tax on real and per sonal property was fixed at $1.50 per $100 of the assessed valuation of such property by the act of Congress approved July 1, 1902, entitled "An act making appropria tions to provide for the expenses ?of the government of the District of Columbia for the fiscal year* ending June 30, 1003, and for other purposes," as follows: Bee. B. That hereafter all real estate In the District of Colurflbla subject to taxa tion, including improvements thereon, shall be assessed at not less than two-thirds of the true value thereof, and shall be taxed one and one-half per centum upon the as sessed valuation thereof. Sec. 6, par. i. On all tangible personal property, assessed at a fair cash value (over and above the exemptions provided in this section) ? ? ? there shall be paid to the collector of taxes of the District of Columbia one and one-half per centum on the assessed value thereof. Population.?Based upon the census of 1900 and the normal rate of Increase the Commissioners estimate the population of the District to be approximately 295,000. Extraordinary Projects and Current Expenditures. This year, as In the preceding two years, the Commissioners have prepared the es timates for the appropriations for the Dis trict of Columbia for the next fiscal year upon the principle that, presenting to Con gress the actual needs of the District of Columbia, they should distinguish and ask Congress to distinguish between current ex penditures sad those tor extraordinary projects of Improvement demanding largo sums of money within a short time and ex tending their benefits into the future. Ev erywhere else It is recognized that t. cost of such Improvements cannot oe mei out of current revenues and ought to oe spread over a series of years, and there fore it Is customary to meet It by an issu of bonds with the usual provision tor re payment by a sinking fund. The United States does not have to borrow imoney any way to meet its share of such expcu - tures in the District of Columbia. But the District of Columbia must borrow like any other municipality to meet Its share of the cost of such improvements because its current revenues cannot meci immediately sucli extraordinary demands without compelling such a reduction in cur rent expenditures as would cripple municipal services. , Congress has author.zed and directed recent years extraordinary municipal ii? provements for the District of Colum ? notably the filtration plant, the se^d?e disposal system, the District bu.l.J' heartily approved by the Conimiss.onei _ and the community, of which the D-str.ct o Columbia is required to pay half the cost, besides the contribution which it is re quired to make toward the new railway terminal Improvement. All these pr J would be provided for elsewhere by a bond Issue. Congress was not willing to author ize the Issue of bonds for this purpose, and thus far it has made no permanent ar rangement to enable the District to propey carry its share of the burden, for tlir years Congress has made temporary pi o vision from year to year for advances fro/" the Treasury of the United States to the District, to be repaid with interest, to meet any deficiency in the D.strlct revenues on the general account, includ ng both ex traordinary and current expenditures, rn.s legislation expires the 1st of July. 19)4, and the amount then due on that account is to be repaid within five years from that day. Congress has made no provision for the District's share of the cost of the extraordi nary Improvements after the 1st of July next, although it is evident from the proj ects authorized that larger amounts will be required on that account after that day. It is apparent, therefore, that the matter will be considered by Congress at the com ing session. Recommendations Repeated. The Commissioners earnestly repeat their recommendations that the Secretary of the Treasury be authorized to make advances from the United States funds to enable the District to meet its share of the cost of the extraordinary Improvements, the advances to be repaid by the District in installments and with Interest. This can be done by the District out of its current revenues without hampering current expenditures. It is sub mitted that this is the usual and business like way of dealing with such matters, and that if it is not adopted the District finances will be left in an uncertain and em barrassed condition, and the appropriation for current need^* may have to be unduly cut down. This ought not to be done any more than the extraordinary projects for improvement should be suspended or aban doned. The aggregate amount of the estimates submitted by the Commissioners for the next fiscal year is $12,880,725 exclusive of those for the water department, which amount to $132,756. This unusually large sum is not to be set down as annually re quired, for the sum of $4,025,155 is chargea ble to the account of extraordinary improve ments which Congress and circumstances require shall be appropriated next year. The items making up this amount are as follows: Sewers and sewage disposal sys tem. $1,'J07.0(X); filtration plant, $1,508,155; District bu.lding. $700,000; Connecticut Ave nue Bridge. $200,000; Anacostia Bridge, $1<I0,0!J0; municipal hospital, $150000. In tha estimates for -current expenditures sub mitted to the Commissioners through official channels the Commissioners made all prac ticable reductions, amounting to over a mil lion dollars In the aggregate, leaving the amount recommended $8,2*51,570 on this ac count. The estimated revenue of the District of Columbia for the next fiscal year is $4,730, 935.10. Deducting from this a reasonable Installment, amounting to one-fifth of the amount of the advances that will probably have keen made by the 1st of July next, which amount is estimated at $2,000,000, with the interest payment thereon, togelner with a payment of $150,000 on account of the District's contribution to the terminal work of the Baltimore and Ohio Railroad Company, there will remain the sum of $4 140,935. Doubling this amount by add ing the share of the United States under the organic act of June 11, 1878, we have an appropriation fund of $8,281,870, or more than is required by the estimates for current expenditures. It Is hoped by the Commissioners that Congress will make a settlement of this | matter, that will cover at least a decaue to come, on the principles which they have suggested. Committee to Suggest Improvements in the District Service. On the 12th day of August, 1903, the Commissioners appointed Dr. W. C. Wood ward, health officer, John R. Garrison, au ditor, and Moncure Burke, of the engineer department, a committee to examine all the departments of the government of the District of Columbia, and report on their condition and their method of doiug busi ness with a view to suggesting improve ments Similar examinations have been made in particular offices by committees of officials, but no such general and compre hensive examination. It Is believed by the Commissioners that this committee will be able to suggest im provements to be made, either by order of the Commissioners of by action of Con gress which will prove beneficial to the District service. All the recommendations of the Commissioners to Congress for the improvement of the District services have not been carried out, and in the course of twenty-five years, during which the Dis trict government has been gradually en larged, chiefly by detached provisions in different appropriation acts to meet the most pressing needs as they appeared from time to time, there has not been a uniform development of all the brancheB of the government, so that some are more modern in method, better equipped in personnel and facilities than others. Memorial Bridge. The Commissioners desire to record- once more their belief that the proposed me morial bridge from Washington across the Potomac River to Arlington should be con structed by the National Government In ac cordance with recommendations heretofore made by the President of the United States. ,, ? , Civil Service. As the President of the United States, according to tho Attorney General of the United States, is not authorized under the civil service act to extend the civil service rules over the District government, be cause, under the decisions of the Supreme Court of the United States, the District of Columbia is a municipal corporation and not a part of the Government of the United States, the Commissioners recommend ones more that Congress pass a civil-service law lor the government of the District of Co lumbia. Most of the large municipalities of the country now have such a law, and there is no apparent reason why the Dis trict government should be excepted from the advantages of It. The Commissioners have maintained a merit system of appoint ment and promotion, but it has no legal protection; and the examinations which tne Commissioners require for the police and fire departments, and hi some other special cases, are conducted by the United States Civil Service Commission simply aa a mat ter of courtesy and can not be required of the Commission by the Commissioners. Commissioner Appointed. Henry B. F. Macfarland was appointed on the second day of March, 1908, to suc ceed himself on the 5th of May following, and qualified and took the oath of office on the 9th day of May. The Commissioners again recommended to Congress that provision be made for a ?ubsUtuto to act for either of the civil Commissioners In case of disability or death. The law now authorizes the detail of three assistants to the Engineer Com missioner from among the engineer officers of the Army (two being now detailed), any one of whom may act as Commissioner in the absei ce of the Engineer Commissioner. But if a civil Commissioner Is unable to act, there is no one td take his place, and-| if both the civil Commissioners should be unatle to act, the government of the Dis trict of Columbia, so rar as the Commis sioners are concerned, would be temporarily interrupted. A majority of the board Is required for the transaction of business, except the making of contracts for con struction work, which requires the signa tures 01 all ihree Commissioners. The Commissioners recommend that the office of secretary of the District of Co lumbia be established, and that the In cumbent be authorized to act In the case or the disability or death of either of the civil Commissioners. If this is not done, they recommend that contracts for con struction work, like all others, shall be valid when signed by a majority of the beard. Celebration of the Fourth of July. In accordance with the general desire of the citizens of the District of Columbia, the first official celebration of Independence Day in the District of Columbia under the present form of government was success fully held on the 4th of July last. The Commissioners on the 10th day of May, 1903, appointed a committee of arrange ments, which prepared the program for the day and directed its execution. The Presi dent of the Unitad States gave his cordial approval and co-operation, and authorized the use of the White House grounds for the public meeting, which he was unable to at tend because of absence from the District. The War and Navy departments responded heartily to the requests of the committee of arrangements, and the officer In charge of public buildings and grounds rendered valuable service. In the morning of the day a procession, composed of United States troops, sailors and marine, ordered to Wash ington for the purpose, and the District Na tional Guard|,of which Gen.-S. B. M. Young was grand marshal, marched from the Cap itol to the White House, where, on the northeast lawn, a public meeting, attendel by several thousand ladles and gentlemen, was held. The president of the board of Commissioners presided, addresses were made by the Ambassador of France and the Secretary of the Navy. Admiral George Dewey introduced the reading of the Decla ration of Independence by Barry Bulkley. Rev. D. J. Stafford, D. D., made the invo cation. and Rev. T. S. Hamlin. D. D.. pro nounced the benediction. Patriotic songa were sung by an adult chorus, by public school children, and by all present, led by the Marine Band. In the evening an elaborate display of aerial fireworks was made at the Washing ton Monument. The money for the expense was provided by popular subscription. District Building. The action of Congress at the last ses sion, In accordance with the recommenda tion of the Commissioners, in transferring the title of the site acquired for the Dis trict building from the United States, in whose name it was taken, to the District of Columbia, and, further, in Increasing the limit of cost for the site and building from $1,500,000 to $2,000,000. was gratifying to the Commissioners and to the community. Military and Naval Appointments. In their last annual report the Commis sioners recommended that the District of Columbia representation tMuong the cadets at the Military Academy at West Point and the Naval Academy at Annapolis, should be doubled. Congress accordingly provided yiat the Distrlcf should hereafter have two midshipmen at the Naval Acad emy instead of one. It is hoped that Con cress will take similar action In respect to the Military Academy. It is believed that the population of the District of Columbia, its unique situation and character and the fact that the President of the Lnlted States, by custom, selects the young n\en to be appointed at large to the two acade mies from among the sons of officers of the Army and Navy, entitle the District to this additional consideration. Reports on Pending Legislation. According to custom, the Commissioners received and reported upon bills relating to the District of Columbia introduced in Con gress at the second session of tho Fifty seventh Congress and referred to them for report by committees of the Senate and House. From the Senate 92 bills were re ferred and from the House 81 bills were re ferred to the Commissioners. All bills re lating to the District of Columbia which passed both houses were referred, accord ing to custom, to the Commissioners by the President for their objections before the President approved them. Funeral of Former Governor Shepherd. The Commissioners having been notified that the remains of Alexander R. Shepherd, formerly governor of the District of Colum bia, would be brought from his residence in Mexico, Batopilas, Chihuahua, to be In terred near his former home, appointed a committee of prominent citizens, with Wil liam F. Mattingly as chairman, to make the necessary preparations for the funeral. The remains, accompanied by Governor Shep herd's family, arrived on the morning of the 4th day of May. 1003, and were escorted by the Commissioners, the committee of arrangements and other citizens, together with a portion of the National Guard and the High School Cadets, to the New York Avenue Presbyterian church, of which Gov ernor Shepherd was a member, where they lay In state until the afternoon, when fun eral services, attended by the Commis sioners, the committee of arrangements and a large number of other citizens, were held, after wh'ch the remains were taken to Rock Creek Cemetery and placed In the family vault. The committee on a memorial for Governor Shepherd haa received a consid erable subscription of money and is pre paring to erect a statue-of Governor Shep herd, which the Comnilss oners think should be placed in front of the new District build ing. Board of Education. The public schools o< the District of Co lumbia were never ao good or so well housed and equipped as now, and the work done during the past year deserves praise. This Is the most Important In terest of the District of Columbia, and calls for the largest .amount In the an nual appropriations. The Commissioners In their estimates have recommended all that seemed practicable to recommend at this time for the accessary Increase of buildings and otherl&cilltles and for de sirable Increase In t)ke inadequate salaries of teachers. The Comralsaloners particu larly recommend the estimates for the erection of the Business High School, for tho extension of the McKinley Manual Training School, and fqr the purchase of a site for the extension, of the Armstrong Manual Training School. With the steady Increase In the number of public school buildings there has been a corresponding decrease in the number of those for whom accommodations could not be found, so that none who apply are turned away, and It Is practicable now to consider a substi tute for the Ineffective compulsory educa tion law, and the Commissioners may later submit such a proposition to Congress, so as to bring Into the schools those who ought to be there and who do not come voluntarily. The only change In the membership of the board of education 1s Jhat caused by the declination of George H- Harries, Its vice president, to acceat the reappointment made by the Commissioners on July 6, 1003. The vacancy was filled by the appointment of James E. Fitch. The whole number of pupils enrolled in the public schools was 48,745: 32.987 white and 15,758 colored, an increase of 0.64 per cent over the year before. One thousand three hundred and seventy-one teachers were employed, of wfeom 985 were white and 446 colored. The whole number of male teachers, Including supervising principals, was 173, and the number of female roach ers 1,108. The relatively small number of men employed In the service of the public schools Is due to the small salaries paid to men teachers In this District and Hie greater pecuniary inducements ofTered by ! the various departments and scientific bu reaus of the Government to educated young men. The schools were In session 174 days. There were 1,843 pupils enrolled In the right schools, which were In session 48 nights, and engaged the services of 62 teachers. Of the entire enrollment of the schools 1,770, or 3.04 per cent, were In she kindergartens; 43.310, or 88.85 per cent, were In the first eight grades; 2,673. or G.?3 per cent, were in the high schools; 816, or 1.68 per cent, In the manual training schools, and 170, or 0.30 per cent, in ifce normal schools. Number of School Buildings. There were 127 owned school buildings In the District of Columbia. In the early part of the school year the McKinley Manual Training School, the Armstrong Manual Training School, the Matthew G. Emery <12 rooms), the Thos. P. Morgan (8 rooms), the Petworth (4 rooms), the Kenllworth (4 rooms), for white children, and the John M. Langston (8 rooms) and the William Syphax (8 rooms) for colored children were dedicated with appropriate ceremonies under the charge or the committee on buildings, repairs, and sanitation. It Is expected that in 1908 the Edmonds School (8 rooms), the Samuel E. Wheatley (8 rooms), a 4-room addition to the Brookland School, a 4-room addition to the Cranch School, a 4-room addition to the Tacoma School, and a 4-room building at Good Hope, all for white children, and the Abby S. Simmons School (8 rooms), the Henry P. Montgomery School (8 rooms), and the Reno school (4 rooms) for colored ! pupils will be completed and occupied, thus adding accommodations for 2,070 pupils, estimating 45 pupils to each room, and re ducing still further the number of enforced half-day schools In these localities. The superintendent of schools says In his annual repot t: "It may be said of the bui.dings completed and occupied during the year and of those under contract that, although they do not represent as large an outlay as in some cities, they are credit able examples of school architecture, and in the essentials of light, heating, artificial ventilation, toilets, and conveniences gen erally for pupils are a great advance upon some of our older buildings. None of the schools erected since the organization of the present board of education are without the necessary appliances for forcing a con stant supply of fresh air into every school room In such volume and at such a rate of speed as to meet the most exacting scientific requirements as to the renewal or air In school rooms. "Expressed in terms of Its beneficial and permanent influence on the health of teach ers and pupils, all other Improvements that have really been made in school house con struction are of minor importance to that of improved ventilation." Additional accommodations for the graded schools are needed In Georgetown, where an 8-room building should be erected near the ( urtls; In the extreme northeastern sec tion beyond Fifteenth street east, at Chevy Chase, at Penning, at Anacostia, at Ten ley and to relieve the Columbia Heights and Mount Pleasant schools. The Commis sioners will be asked to provide for these in their next estimates. Another pressing need at this time is that for an extension of the McKinley Manual Training School. This building, with a Keating capacity of 251, carried through the year an enrollment of 457 pupils, making it necessary to house over 200 of therrl in the Central High School, at great incon venience to both schools. For the coming year conditions will be much more serious, as the enrollment of the school promises to teach nearly 550, while the corresponding growth of the Central High School will make it impossible for the latter school to surrender as many of its class rooms to the uses of the manual training school as were devoted to that purpose during the year just closed. The estimate of $135,000 for additional class rooms was based upon plans made at the time the original building was project ed. A similar need exists for additional class ^ rooms in the Armstrong Manual training School. The only unimproved ground available for the erection of an ad dition lies east of the present structure. It lias been ofTered to the District at a rea sonable price, and should be purchased and held until an addition to the present build ing can be authorized. The Normal School. The Commissioners again urge the im portance of making provision for a perma nent and adequate home for the Washing ton Normal School. The work of this school, which has always been of a high order, Is all the more praiseworthy when we come to know that it has been accom plished while the school has been occupy ing temporary quarters in a building In no wise suited to the uses of a training school. The plan of-securing a large plot of ground north of Florida avenue on which to place first an elementary school, already needed, and in due time a modern normal qchool building, with ample space for school gar dening and playgrounds. Is Indorsed by the board of education, and has been approved by the local Citizens' Association. It is earnestly hoped that the clause In the appropriations act which has been in force for the last two years restricting the membership of night schools to persons not over 21 years of age will be stricken out, as it works hardship to many worthy peo ple whose early efforts to obtain an educa tion were defeated by misfortune or pov erty, and whose zeal for knowledge and willingness to make sacrifices to get it ap peal strongly to all who have their welfare at heart. The Commissioners know of no city which excludes adults from the privi leges of the night school. Board of Charities. The Board of Charities, whose members serve without salary, has done Important and valuable work In the three years of its existence. The Commissioners ar glad to renew their approval of tffe policy and rec ommendations of e board, and to express the hope that Congress, which created this board for the purpose of Improving the public charitable system, will act In ac cordance with Its suggestions. The appropriations for charities form the second largest Item In the District budget, and In their expenditure affect directly or 1 directly some of the most vital Interests of the community, and they should be made and expended in accordance with the best practice and a uniform and constant policy. The Commissioners believe that the Board of Charities and the Board of Chil dren's Guardians should be appointed by the Commissioners, and that all charitable Institutions which can properly be consid ered public should be directly under the control of the Commissioners. In Its annual report the Board reiterates general principles which It has urged In former reports and makes a plea for ac tion by Congress indicating a definite per manent policy in dealing with District charities. The importance of marking clearly the line between public appropriation and pri vate benevolence is again pointed out, and estimates have been prepared with a view to eliminating from the appropriation bill such institutions as. in the judgment of the Board, should properly be supported by pri vate contributions, and the proper adjust ment to a general system of such other in stitutions as probably would be unable to maintain themselves by private charity. It is urged again that the control and management of the local charities should be so centralized as to bring about the much desired harmony and co-operation among the various institutions of the local charity system. In this connection it is urged that the public charities should be organized un der the control of the local government and not under departments of the Federal Gov ernment. or. as in some cases. under inde pendent control. It Is recommended that all moneys appro priated for local charities should be ex pended through the District disbursing office. (Continued on Nineteenth Page.) MESSAGE TO CONGRESS The President Reviews National Conditions. LEGISLATION THAT IS NEEDED Gives Provisions of the New Treaty With Panama. GOVERNMENT'S COURSE JUSTIFIED To the Senate and House of Represen tatives : The country Is to be congratulated on the amount of substantial achievement which has marked the past year both as regards our foreign and as regards our domestic policy. With a nation as with a man the most important things are those of the house hold, and therefore the country is especial ly to be congratulated on what has bee-n accomplished !n the direction of providing for the exercise of supervision over the great corporations and combinations of corporations engaged in interstate com merce. The Congress has created the De partment of Commerce and Labor, Includ ing the Bureau "of Corporations, with for the first time authority to secure proper publicity of such proceedings of these great corporations as the public has the light to know. It has provided for the expediting of suits for the enforcement of the Federal antitrust law; and by another law it has secured equal treatment to all producers In the transportation of their goods, thus making a long stride forward In making effective the work of the Interstate Com merce Commission. Department of Commerce and Labor. The establishment of the Department of Commerce and Labor, with the Bureau of Corporations thereunder, marks a real ad vance In the direction of doing all that is possible for the solution of the questions vitally affecting capitalists and wage workers. The act creating the Department was approved on February 14, 1903. and two days later the head of the Department was nominated and confirmed by the Sen ate. Since then the work of organization has been pushed as rapidly as the Initial ap propriations permitted, and with due re gard to thoroughness and the broad pur poses which the Department is designed to serve. After the transfer of the various bureaus and branches to the Department at the beginning of the current fiscal year, as provided for In the act, the personnel com prised 1,289 employees In Washington and 8,830 In the country at large. The scope of the Department's duty and authority em braces the commercial and industrial Inter ests of the Nation. It Is not designed to restrict or control the fullest liberty of legitimate business action, but to secure exact and authentic information which will aid the Executive In enforcing existing laws, and which will enable the Congress to enact additional legislation, if any should be found necessary, In order to pre vent the few from obtaining privileges at the expense of diminished opportunities for the many. Bureau of Corporations. The preliminary work of the Bureau of Corporations in the Department has shown the wisdom of Its creation. Publicity In corporate affairs will tend to do away with ignorance, and will afford facts upon which Intelligent action may be taken. Syste matic, Intelligent investigation is already developing facts the knowledge of which is essential to a right understanding of the needs and duties of the business world. The corporation which Is honestly and fairly organized, whose managers In the conduct of Its business recognize their obligation to deal squarely with their stockholders, their competitors, and the public, has nothing to fear from such supervision. The purpose of this Bureau is not to embarrass or as sail legitimate business, but to aid In bring ing about a better industrial condition?a condition under which there shall be obedi ence to law and recognition of public obli gation by all corporations, great or small. Functions of New Department. The Department of Commerce and Labor will be not only the clearing house for in formation regarding the business transac tions of the Nation but the executive arm of the Government to aid In strengthening our domestic and foreign markets, in per fecting our transportation facilities, in building up our merchant marine, in pre venting the entrance of undesirable Immi grants, in Improving commercial and In dustrial conditions, and in bringing to gether on common ground those necessary partners in industrial progress?capital and labor. Commerce between the nations Is steadily growing In volume, and the ten dency of the times Is toward closer trade relations. Constant watchfulness Is needed to secure to Americans the chance to par ticipate to the best advantage in foreign trade; and we may confidently expect that the new Department will Justify the expec tation of Its creators by the exercise of this watchfulness, as well as by the business like administration of such laws relating to our Internal affairs as are intrusted to fls care. In enacting the laws above enumerated the Congress proceeded on sane and con servative lines. Nothing revolutionary was attempted; but a com^on-s^ns^ and buo> cessful effort was made in the direct on Oj seeing that corporations are S(T hand ed al to subserve the public good. The legisla tion was moderate. It was characterized throughout by the idea that we were not attacking corporations, bu* endeavoring to provide for doing away with any evil In them; that we drew the l>ne igainst mis conduct, not against wealth; gladly recog nizing the greit goi d do; e by the capitalist who alone, or in conjunction w th his fel low*. does his work aloi.g | r pe>- and legitl mate lines. The purpose of the legislation, which purpose will undoubtedly be fulfilled, was to favor such a man when he does well, and to superv se h s action only to prevent him from doing ill. l>ubl c.ty can do no harm to the honest corporation. Th? only corporation that has cause to dread it is the corporation which shrinks from the light, and about the welfare of such cor porations we need not be oversensitive. The work of the Department of Commerce and Labor has been conditioned upon thl? theory, of secur.ng fair treatment al'.ki for labor and for capital. Capital and Labor. The consistent policy of the National Government, so far as it has the power, if to hold in check the unscrupulous man, whetlier emrloyer or employe; but to refuse | to weaken individual initiative or to ham per or cramp the Industrial development of I the country. We recognize that th s is an ! era federat on and combinaion. in which great capital'stic corporations and labor unions have become factors of tremendous j importance in all Industr al e nters. I Hearty recognition is given the far-reach ing, beneficent work which has been ac complished through both corporations and unions, and the line as between dJTerent corporations, as between d fferent un'ons, is drawn as it is between different individ uals; that is, it is drawn on conduct, the effort being to treat both organ:zed cipltal and organized labor al ke; asking nothing [ save that the interest of each shall be brought into harmony with the interest of the general public, and that the conduct of each shall conform to the fundamental rules of obedience to law, of tnd.vidual freedom, and of justice and fair dealing to wards all. Whenever e ther corporation, labor union, or Individual disregards the law or acts in a spirit of arb trary and tyr annous interference with the rights of others, whether corporations or individuals, then where the Federal Government lias jurisdiction, It w 11 see to it that the mis conduct is stopped, pay ng not the slightest heed to the position or power of t: e cor poration. the union or the ind vidual but only to one vital fact-that is. the question whether or not the conduct of the indl v.dual or aggregate of indiv duals is in ac cordance with the law of the land. Every man must be guaranteed his lib erty and his right to do as he likes with his property or bis labor, so long as he does not Infringe the rights of others. No man Is abova the law and no man is below it; nor do we ask any man s permission when we require him to obey it. Obedience to the law is demanded as a right; not asked as a favor. We have cause as a nation to be thank ful for the steps that have been so success fully taken to put these principles into ef fect. The progress has been by evolution, not by revolution. Nothing radical has been done; the action has been both mod erate and resolute Therefore the work will stand. There sfcall be no backward step. If in the working of the laws it proves desirable that they shall at any point be expanded or amplified, the amend ment can be made as its desirability is shown. Meanwhile they are being admin istered with judgment, but with insistence upon obedience to them; and their need has been emphasized in signal fashion by the events of the past year. Receipts and Expenditures. From all sources, exclusive of the postal service, the receipts of the government for the last fiscal year aggregated ?T?<!0.a,.l6,o74. The expenditures for the same period were ?5<H5,0911,007, the surplus for the fiscal year being $.r>4 2!l7,t>67. The indications are that the surplus for the present fiscal year will be very small, if indeed there be any sur plus. From July to November the receipts from customs were, approximately, nine million dollars less than the receipts from the same source for a corresponding por tion of last year. Should this decrease con tinue at the same ratio throughout the fis cal year, the surplus would be reduced by, approximately, thirty million dollars. Should the revenue from customs suffer much further decrease during the fiscal year, the surplus would vanish. Economy in Appropriations. A large surplus is certainly undesirable. Two years ago the war taxes were takes