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President Recommends Leasing of Coal Lands in U.S. Domains FORTIFY PANAMA CANAL; IMPROVE ARMY, IS TAFT'S MILITARY NOTE Executive Calls for Commission to Determine Reorganization of Regular Army and Volunteers and Renews Appeal for Mer chant Marine* Calling Attention to Value in War conspiracy, prosecutions which have saved Iff norant and weak member* of the publlo and are saving them hundreds of millions of dol lars. The violation* of th* anti-trust law present perhaps the most Important litigation before the department, and th* number of case* filed shows th* activity of the govern ment In enforcing that statute. In a special message last year I brought to the attention of congress the propriety and wisdom of enacting a general law providing for the Incorporation of Industrial and other companies engaged In Interstate commerce, and 1 renew my recommendation ln that ba lief. Judicial Procedure One great crying need In the United States Is cheapening the coat of litigation by sim plifying Judicial procedure and expediting final Judgment. Under present oondltione the poor man 1* at a woeful disadvantage in a legal contest with a corporation or rich opponent. The necessity for the reform exists both ln the United State* court* and In all state courts. In order to bring It about, however, It natur ally falls to the general government by It* example to furnish a model to all states. A legislative commission appointed by Joint res olution of oongre«B to revise the procedure In the United State* oourt* has a* yet made no report Under the law th* supreme court of the United States ha* the power and is given the duty to frame the equity rules of pro cedure which are to obtain In the federal courts of first Instance. In view of th* heavy burden of pressing litigation which that oourt has had to carry, with one or two of Its mem ber* Incapacitated through 111 health. it ha* not been able to take up problems of Im proving the equity procedure, which has prac tically remained the same niece the organ isation of the court ln 1789. It 1* reasonable to expect that with all the vacancies upon th* court filled It will take up the question of cheapening and simplifying the procedure In equity in the courts of the United States. The equity business is much .the more im portant In the federal court and I may add much the more expensive. I am strongly convinced that the best method of Improving Judicial procedure at law Is to empower the supreme court to do It through the medium of the rules of the courts as In equity. This la the way ln which it a* been done ln Eng land, and thoroughly done. The simplicity and expedition of procedure in the English courts today make a model for the reform of other systems. 1 cannot conceive any higher duty than the sup'ena court could perform than In leading the way to a simplifi cation of procedure ln the United States court*. Relief of Supreme Court No man ought to have as a matter of right a review of hi* case by th* supreme court. He should be satisfied by on* hearing before a court of flrtt Instance and one review by a court of appeals. The proper and chief use fulness of the supreme court, and especially of the supreme court of the United States, is, ln the cases which come before It. so to ox pound the law, and especially the funda mental law—th* constitution—as to furnish precedents for the Inferior court* in future litigation and ' for th* executive offloers in the • construction of statutes and I th. per formance of their legal duties. Therefore, any provisions for review of cases by the su preme court that cast upon that court th* duty of passing on questions of evidence and the construction of particular forms of in strument*. ilk* indictments, or wills, or con tracts, decisions not of general application or tmportanoe, merely ©log and burden th* court and render more difficult Its higher function, which make* It so Important a part of th* framework of our government The supreme court Is now carrying an unnecessary burden of appeal* of this kind, and I earnest- : ly urge that It be removed. I Injunction Bill I wish to renew my urgent recommenda tion made ln my last annual message in favor of the passage of a law which shall regulate the issuing of Injunctions in equity without notice In accordance with the best practice now ln vogue In th* court, of the United States. I regard thi. of especial im portance, first because It has been promised, and second, because It - will deprive those who now complain of certain alleged abuses ln the Improper Issuing of Injunctions, with out notloe of any real ground for further amendment and will take away all semblance of support for the extremely radical legis lation they propose, which wil bo most per nloloua If adopted, will sap the foundation* of Judicial power, and legalize that cruel social instrument, th* eeoondary boycott . Judicial Salaries I further recommend to congress th* pas sag* of the bill now pending for th* In crease ln th* salaries of the federal Judges, by which the ohlef Justice of th* supreme court (hall receive $17,600 and the assistant • Justice* $17,000; the circuit Judge, constitut ing th* circuit court of appeals shall receive $10,000, and the district udge* $9000. The cost of living Is such, especially ln th. large cities, that even the salaries fixed ln the proposed bill will enable the Incumbents to accumulate little, If anything, to support their . families after their death. s;,';;. Postal Savings Bank At It* last session cbngreu made provision for. th* establishment of savings bank, by the postoffice department of this govern ment, by which, under the general control of trustees, consisting of the postmaster gen eral, the Secretary of .the treasury and the/ attorney general, the system could be begun ln a few cities and town., and enlarged to cover within Its operation, as' many cities and towns and a. largo a part of the coun try as seemed wis*. Arrangement, hay* been perfected so that saving, bank, will b* opened ln some cities and towns on the flrat of January, and there will be a gradual ex tension of the benefit* of the plan to the people of th* country. Postal Deficit As I have Bald, th* postoffice '. department 1. a great business department,' and I am glad, to not* th* fact that under It. pres ent management principle* of buslne..' econ omy and efficiency are being applied. \ For many years there has been a deficit In the operations of the postoffice department, which ha. been met >by appropriation from th* treasury. The appropriation estimated for last year from the treasury over and above the receipt, of the department was $17, --500,000. I am glad to record j the fact that of that $17,600,000 estimated for, $11,600,000 were saved and returned to th* j treasury. Th* personal, efforts of th* postmaster gen eral - secured , th* effective co-operation .of thousand, of postmaster, and other poatal officers throughout the country ln carrying out hi. plan, of reorganization ' and re trenchment. I The result 1. that the postmas ter general has been able to make hi. esti mate of expense, for the present year .0 low as to keep within th* amount th* poa tal service 1. expected to earn. It 1. grati fying to report that the reduction In th* deficit ha. been accomplished without any curtailment of postal facilities. On th* con trary, the service has been greatly extended during, the year th all Its' branches. Upon the recommendation of the postmaster general, I have included In th* classified serv ice all assistant postmasters, and I , believe that this giving • secure tenure ' to thos*^ who are the moat Important subordinates of postmasters will add much to th* efficiency of their offices and an economical adminis tration. A large number of the fourth class postmasters are now ln the classified service. I think It would be wise to put ln th* classi fied service the first, second and third class postmasters. It la more logical to do this than to classify the fourth class postmas ters, for the reason that th* fourth class postofflees are invariably small and tbe post master* are necessarily men who must com bine some other business with the poatmas tershlp, whereas the first, second and third class postmasters are paid a sufficient amount to Justify the requirement that they shall have no other business and that - they Shall devote their attention to their postoffice du ties. To classify first, | second and third class postmasters would require the passage of an act changing the method of their ap pointment so* as to take away the necessity for the advice and consent of the senate. I am aware that this is Inviting' from the senate a concession In respect to Its quasi executive powers that la considerable, but I believe It to be ln the Interest of good ad- ministration and efficiency of service. To make this orange would take th* postmas ters out of politics, would relieve congress men who are now burdened with the neces sity of making recommendation* for the places of a responsibility that must be irk some and can create nothing but trouble; and It would result in securing greater at tention to business, greater fidelity and con sequently greater economy and efficiency ln the postoffice* which they conduct Second-Class Mail Matter In my last annual message I invited the attention of congress to the Inadequacy of the postal'rats Imposed upon.second class mall matter ln so far as that Include* magazines,, and showed by figures prepared by expert* of the postoffice department that the gov ernment would be rendering assistance to the magazine* costing many millions in ex cess of th* compensation paid. An answer was attempted to thla by the representa tives of th* magazines, and a reply waa filed to this answer by the postoffice de partment The utter Inadequacy of the an swer considered ln the light of the . reply of th* postoffice department I think must appeal to any fair minded person. Whether the answer was ail that could be said In behalf of the magazines Is another question. I agree that the question is one of fact; but I insist that if the fact is as the experts of the postoffice department show, that we are furnishing to the owners of magazines a service worth millions more than they pay for It then Justice requires that the rate should be Increased. The. Increase In the re ceipts of th* department resulting from this change may be devoted to Increasing the use fulness of the department ln establishing a parcel, post and In reducing the coat of first class postage to on* cent It has been said by the postmaster general that a fair adjustment might be made under which the advertising part of the magazine should be charged for at a different and higher rate than that from the reading matter. This would relieve many useful magazines , that are not circulated for profit and would not shut them out from the use of the malls by a prohibitory rat*. Parcels Post ' With respect to the parcels poet, I re spectfully recommend Its adoption on all rural delivery routes, and that eleven pounds —the International limit—b. mad. the limit of carriage In such post, and .thus with a view to It. general extension when the In come of the postoffice will permit It and the postal savings bank shall have bean fully established. The earn, argument is made against th. parcel* post that was made against th* postal savings bank— It I* Introducing th* government Into a business whloh ought to be conducted by private per sons, and Is paternalism. The postoffice de partment ba* a great plant and a great or ganization, reaching into the most remote hamlet of the United States, and with this machinery It I* able to do a great many thing* economically that if a new organiza tion were necessary It would be Impossible to do without extravagant expenditure. That Is the reason why the postal savings bank can be carried on at a email additional cost and why It is possible to incorporate at a very Inconsiderable expense a parcels post in the rural delivery system. A general parcels post will Involve a much greater outlay. ' Navy Department In the last annual report of the secretary of th. navy and ln my annual' message at tention was called to the new detail of offi cers ln the navy department by which offi cers of flag rank were assigned to duty a* aides to th* secretary In respect to naval operations, personnel, Inspection and material. This change was a substantial compliance with the recommendation of the commission on naval reorganization headed by Mr. Jus tice Moody and submitted to President Roosevelt on February 26, 1909. Through the advice of this committee of line officers, the sooretary la able to, bring about a proper co-ordination of all I the branches of , the naval department with greater military efficiency. The secretary of the navy recommends that this new organ ization be recognized by legislation and thus be mad* permanent. I concur ln the recom mendation. Naval Supply Fund I commend to your attention th* report of the secretary on the change In the system of oost accounting In navy yard*, and also to the possibility of the naval supply fund and the present condition* existing In regttrd to that matter. Under previous practice, and what now seem* to have been an erroneous construction of the law, th* supply fund of the navy was inoreaeod from $2,700,000 to something over 114,000,000, and a system of accounting was Introduced which prevented the striking of a proper balance and a knowledge of the exact cost of maintaining the naval establishment The system haa not, been abandoned and a naval supply ac count j eatabllahed by law July 1, 1910. The naval supply fund of 82,700,000 la now on de posit in the treasury to the credit of that de partment. The . secretary recommends that the naval supply account be made permanent by law and that the $2,700,000 of the naval supply fund bo covered Into the treasury as unnecessary, and ask for executive au thority to do this. This sum when covered Into th* treasury will be really a reduction ln recorded naval oost for this year. Th* estimates of the navy department are $5,000, --000 less than the aproprlatlon for th* same purpose last year, and Included ln this la the building program of the same amount as that submitted for your | consideration last year. It la merely carrying out the plan of building two battleship* a year, with a few _ needed auxiliary vessels. I earnestly bop* that this program will be adopted. Abolition of Navy Yards Th* secretary of th* navy ha* given per sonal examination to every navy yard and ha* studied th. uses of th* navy yard* with reference to the necessities of our fleet. With a fleet considerably less than , half th* sis* of that of th* British navy, w* hay* , ship yard* ,' mora than double ' tha ■ number. LOS ANGELES HERALD: WEDNESDAY MORNING, DECEMBER 7, 1910. and there are several of these, shipyards, ex pensively equipped with modern machinery, which . after Investigation the secretary of th. navy believe* to be entirely useless for naval purpose*. He asks authority to abandon certain of them and to move their machinery to other place* where It can be made of use. Peary The complete *xioo*m of our country ln Arctic exploration should not remain un noticed. The unparalleled achievement of Peary ln reaching th* North Pole April 6, 1909, approved by critical examination of th* most expect scientists, ha* added to th* distinction of our navy, to which he belongs, and reflects credit upon hi* country. Hl* unique success ha* received generous acknowledgment from scientific bodies of learning' In America and Europe. I ask official recognition by congress of the great achievement of Robert Edwin Peary. Department of Interior % Appeal* to court In land case*. The secretary of the Interior recommend* a change of the law In respect to the pro cedure ln adjudicating claims for lands by which appeals can be taken from the de cisions of the department to the court of appeal of the District of Columbia for a Judicial consideration of the rights of the claimant This change find* complete analogy In the present provision for appeals from th* decision of the commissioner of patent*.' The judgments, of the court In such case* would be of decisive value to land claimants generally and to the depart ment of. the Interior ln the administration of the law would enable claimants to bring into court th* final consideration of Issues as to the title to government land and would, I think, obviate a good deal of the subsequent litigation that now arises In our western courts. The bill 1* pending, I be lieve, In the house, having been favorably reported from the committee on publlo lands, and I recommend its enactment. On* of the difficulties in the interior department and ln the land office has been the delays attendant upon the con sideration by the land office and the sec retary of the Interior of claim* for patents of public land* to individuals. I am glad to say that . under th* recent appropria tions of the congress and the earnest ef forts of the secretary and his subordinates, these arrears have been disposed of and the work of the department has been brought more nearly up to date In respect to the pending business than ever before In Its history. Economies have been effected where possible without legislative assist ance, and these are shown in the reduced estimate* for the expense* of the depart ment during the current fiscal year and during the year to come. Conservation • The subject of th* conservation of the public domain has commanded the atten tion of the people within the last two or three years. Agricultural Lands There Is no need for radical reform In the methods of disposing of what are really agricultural lands. The presont laws have worked well. The enlarged homestead law has encouraged the successful farming of land* In the semi-arid regions. Reclamation The total sum already accumulated in the fund provided by the act for the reclama tion of arid lands 1* about $69,889,058.76, and of this all but $6,241,058.76 has been allotted to the various projects, of which | there are thirty. Congress at its last ses sion provided for the Issuing of certificates of Indebtedness not exceeding $20,000,000, to be redeemed from the reclamation fund when the proceeds of lands sold and from the water rents should be sufficient. Mean time, In accordance with the' provision* of the laws, I appointed' a board of army engineer* to examine the projects and to ascertain which are feasible and worthy of completion. That board has made a report upon the subject, which I shall transmit in a separate message within a few daya Conservation Address In September last a conservation congress was held at St. Paul, at which I deliv ered an address on the subject of conser vation so far as it was within the Jurisdic tion and possible action of the federal government. In that address I assembled from the official • report* the statistics and facts as to what had been done ln this behalf ln the administration of my predecessor and In my own. and Indicated tho legislative measure* which I believed to be wise in order to secure the best use ln the public Interest of what remains of our national domain. There was in this address a very full discussion of the reasons which led me to th* conclusions stated. For the purpose of having an official record a comprehensive resume of th* statistics and facts gathered with some difficulty In that address, I ven ture to make the address an acoompanylng appendix. The statistics are corrected to November 15 last . Specific Recommendations For. the reason, stated in th* conserva tion address. I recommend: First— the limitation now imposed upon the executive which forbid, his . re serving more forest lands ln Oregon, Wash ington, Idaho. Montana, Colorado and Wyoming be repealed. Second— the coal deposit, of the gov ernment be leased after advertisement In viting competitive bids, for terma not ex ceeding fifty years, with a minimum rental and royalties upon these coal mine*, to be readjusted every ten or twelve years, and with conditions a. to maintenance which will secure proper mining, and as to as signment which will prevent combinations to monopolize control of the coal ln any on* district or market I do not think that coal measure, under 2800 aores of surface would be too large on amount to lease to any on* lessee. ' Third—That th* law should provide th* ■am* separation In" respect to government phosphate land, of surface and m neral rights that now obtains In ooal lands, and that permission to release such land, upon the term, and limitations similar to those above recommended for coal leases, with an added condition enabling the gov ernment to regulate and. need bo. to pro hibit the export to foreign countries of the product . Fourth-That th* law should allow a pros pector for oil or gas to have the right to prospect for two years over a certain tract of government land, the right to be evidenced by a license for which he shall pay a .mall sum; and that upon discovery a lease may be granted upon terms securing a minimum rental and proper royalties to the govern ment, and also the conduct of the oil or ga. well ln accord with the best method for husbanding the supply of oil in th. district. The period of the leases ihould not be as long a. those of coal, but they should con tain similar provision* as to assignment to prevent monopolistic combination.. Water Power Sites Fifth—That water power site, be directly leased by the federal government, after ad vertlaement and bidding, for not exceeding fifty year, upon a proper rental and with a condition fixing rate* charged to the publlo for unit* of electric power, both rental and rate* to be readjusted equitably every ten year* by arbitration or otherwise with suit able provision, against assignment to pre vent monopolistic combination.. Or that the law shall provide that upon application mad* byp the authorities of the .tat* where the water power site 1* situated, It may be pat anted to the .tat* on condition that th* .tat* ■hall dispose of It under term, like those Just described, and shall enforce theae term., or upon failure to comply with the condi tion th* water power alt* and all th* plant and Improvement on th* .It* shall be forfelt >-■■'. Ed and revert to the United States, th* presi dent being given the power to declare the forfeiture and to direct legal proceedings for It* enforcement. Either of theae methods would, I think, accomplish the proper public purpose In respect to water power sites, but one or the other should be promptly adopt ed. I earnestly org* upon oongre** that at this session general conservation legislation of th. character Indicated be made. At Its last session this congress took most useful and proper steps In th* cause of conserva tion by allowing the executive, through withdrawals, to suspend the action of the existing laws In respect to much of th* pub llo domain. I. have not thought that the danger of disposing of coal lands In tha United State* under th* present laws In large quantities was so great as to call for their withdrawal, because under the present pro visions, It Is reasonably certain that the gov ernment will receive the real value of the land. But In respect to oil lands, or phos phate lands and of gas lands In the United States, and ln respect to coal lands ln Alaska, I have exercised the full power of with drawal with the hop. that th. action of con gress would follow promptly and prevent that tying up of the resource* of th* coun try In the western and less settled portions and In Alaska, which means stagnation and retrogression. - The .question of conservation Is not a par tisan one, and I sincerely hope that even In the short time of the short session, con sideration may he given to those questions which have now been much discussed, and that action may be taken upon them. Alaska ' With reference to the government of Alas ka, I have nothing to add to th. recommen dations I made ln my last message on the subject. I am convinced that the migratory character of the population, Its unequal de velopment and Its smallness of number, which the new census shows to be about 60,000, In relation to the enormous expanse of the territory, make It altogether Impractic able to give to those people who are In Alaska today and may not be there a year hence, the power to elect a legislature to govern an Immense territory to which they have a relation so little permanent. It Is far better for the development of the territory that It be committed to a commission to be appointed by the executive, with limited leg islative powers sufficiently broad to meet the local needs, than to continue the present insufficient government with few remedial powers, or to make a popular government where there . Is not proper foundation upon which to rest It The suggestion that the appointment of a commission will lead to the control of the government by corporate or selfish and ex ploiting Interests has not the slightest foun dation In fact. Such a government worked well ln the Philippines and would work well In Alaska, and those who are really Inter ested In the proper development of that ter ritory for the benefit of the people who live In It and the benefit of the people of the United States, who own It, should support the Institution of such a government I have been asked to recommend that the credit of the government be extended to aid the construction of railroads In Alaska. I am not ready now to do so. A great many million, of dollars have been already ex pended In the construction of at least two railroad., and If law. be lacking providing for the proper development of the resources of Alaska, especially for the opening up of the coal lands, I believe that the capital al ready Invested will Induce the Investment of more capital, sufficient to complete the rail roads building and to furnish cheap coal not only to Alaska but to the whole Pacific coast. The passage of a law permitting the leasing of government coal lands In Alaska after public competition, and the appointment of a commission for the government of the terri tory, -with enabling powers to meet the lo cal needs, will lead to an Improvement In Alaska and the development of her resources that 1. likely to surprise the country. Pensions *. The uniform policy of the government ln the matter of granting pension, to those gallant and devoted men who fought to save the life of the nation In the perilous days of the great civil war, ha. always been of the moat liberal character. Theae men are now rapidly passing away. To the men who risked everything on the field of battle to save the nation in the hour of its direst need we owe a debt which ha. not been computed in a grudging nor pe nurious spirit. But while we should be ac tuated by this spirit to the soldier himself, car* should be exercised not to go to absurd lengths nor distribute the bounty of the government to classes of persons who may, from a mere mercenary motive, seek to ob tain some legal relation with an old veteran now tottering on the brink of the grave. Forest Service I have already referred to th* forest, of the United States and their extent, and have urged, as I do again, th. removal of the lim itation upon the power of the executive to reserve other tracts of land In six western states ln which wuudrawal for thi. purpose I. now forbidden. The secretary of agriculture gives a very full description of the disastrous fires that occurred during the last summer In the na tional forests. A drought more Intense than any recorded in the history of the west had Introduced a condition into the forest, which made fires almost Inevitable, and loco motive sparks, negligent campers, and ln some case. Incendiaries furnished th*. needed Immediate cause. At one time the fire* were so extensive that they covered a range of a hundred miles and the aecretary estimate* that standing timber to the value of $28,000,000 was destroyed. Seventy-six • persons ln ' the employ of the forest service were killed and many more Injured, and I regret to say there Is no provision In the law by which the ex pense, for their hospital treatment or of their Interment could be met out of publlo funds. - The Red Cross contributed a thousand dol lars and the remainder of th* necessasry expense, was made up by private contribu tion, chiefly from the force of the forest service and Its officials. I recommend that suitable legislation be enactetd to enable the secretary of agriculture to relieve the moral obligation, of the government In this respect The motive which prompt, men of a false civic pride to indue* the padding of oensus returns ln order to Increase the population of a particular city has been strong enough to lead to fraud In respect to a few cities In this country, and I have directed the at torney general to proceed with all the vigor possible against those who are responsible for these frauds. They have been discov ered and they will not Interfere with the ac curacy of the census, but It I. of the highest Importance that official Inquiry of this sort should not be embarrassed by fraudulent conspiracies ln soma local or private enter prises. Bureau of Lighthouses The reorganization of the lighthouse board has effected a very considerable saving In th* administration, and th* estimates for that service for the present year are $128,000 less than for the preceding year, The secre tary 1. now asking for a large sum for th* addition of light, and other aid. to th* com merce of th* seas, Including a number ln Alaska. The trad* along that coast I. be coming more important, and I respectfully urge th* necessity for following hi. recom mendation. - Bureau of Corporations The commissioner of corporation, baa Just completed the first part of a report on the lumber Industry In the United States. This part does not treat of the question of a trust or combination ln tb* manufacture of lum ber, a subject to be dealt with later. The commissioner do*, And, however, a condition ln the ownership of the standing timber of the United States other than the government timber that call, for serious attention. The direct Investigation mad* by th* commis sioner covered aa an* whloh contain* 80 Important Extracts Culled from President's Message to Congress "The schedules of the rates of duty in the Payne tariff act have been subject to a great deal of criticism, some of it just, more of it unfounded, and to too much misrepresentation. "In order to avoid criticism of this kind in the future and for the purpose of more clearly conforming to the party promise, con gress at its last session made a provision, at my request, for the continuance of a board for the ascertainment of the cost of produc tion at home and abroad of the various articles included in the schedules of the tariff. "I cannot too much emphasize the importance and benefit of this plan. It facilitates the removal of noteworthy defects without a disturbance of business prosperity, which is even more important to the happiness and comfort of the people than the elimination of instances of injustice in the tariff. "I have already stated to the congress that I strongly favor fortification of the Panama canal and I now reiterate this opinion. "There would seem to be strong reasons why the government should take over and include in its management the furnishing (on the Panama canal), not only to the navy, but to the public, of drydock and repair shop facilities, and the sale of coal, oil and other ship supplies. . "I suggest as a wise amendment to the interstate commerce law a provision prohibiting interstate commerce railroads from owning or controlling ships engaged in the trade through the Pan ■jrwn ennui "It seems to me that the existing legislation with reference to the regulation of corporations and the restraint of their business has reached a point where we can stop for awhile and witness the effect of the vigorous execution of the laws on the statute books in restraining the abuses which certainly did exist and which a <ti.tiirhanc.fr of business property, which is even more important per cent of the privately owned timber of the country. His report show, that one-half "* the timber In this area Is owned by 200 in dividuals and corporations; that 14 per cent Is owned by three corporations and there is very extensive ownership of stock, a* well as other circumstances, all pointing to friendly relations among those who own a "^ty of this timber, a relationship which might lead to a combination for the maintenance of a price that would bs very detrimental to the public Interest and would create the ne cessity of removing all tariff obstacle* to th* countries. _ «*»,-.*. free Importation ot lumber from other Bureau of Labor The commission of labor ha* been *>tlvely engaged ln Interstate tran.portatlon under the Erdman act Jointly with *£*£%*£ the interstate commerce commission. I can not apeak lh too high terms of the success of these two officers in conciliation and so - tlement of controversies which but.for their interposition, would have resulted disastrous ly to all interests. , . 1 invite attention to th. very serious in jury caused to all those who ar. engaged in the manufacture of phosphorous matches. The diseases incident to this are frightful, and as matches can be mad. from other material, entirely Innocuous. I believe that the In jurious manufacture could be discouraged and ought to be discouraged by th. Imposition of a heavy federal tax. I recommend the adop tion of this method of .tamping out a very serious abuse. ' Eight-Hour Law In 1892, the present eight hour law was passed, which provides that th. services and employment of i all laborer, and m.chanlca who « now or may hereafter be employed by th" government of th. United State., by th. District of Columbia, or by any con tractor or sub-contractor on any of the pub lic works of th. United State, and of the said District of Columbia la hereby restrict ed to eight hours in any one calendar day. and It shall be unlawful, etc.. etc. This law has been construed to limit the application of the requirement to the., who are directly employed by th* government or to those who are employed upon public works situated upon land owned by the United States. This con .traction prevented its application to gov ernment battleships and other vessels built In private shipyard, and to heavy gun. and armorplate contracted for and mad* at pri vate establishments. The proposed act provides that no laborer or mechanic doing any part of th* work contemplated by a contract with the United State, In the employ of the contractor or any subcontractor shall be required or permitted to work more than eight hours a day ln any one calendar day. ■ It seems to me from the past history that the government has been committed to a policy of encouraging the limitation of th* day's work to eight hours ln all works of construction Initiated by itself, and It seem, to m. Illogical to maintain a difference be tween government work done on government soil and government work done In a private establishment when the work Is of such large dimension and Involve, the expendi ture of much labor for a considerable pe riod, ao that the private manufacturer may adjust himself and his establishment to the apeclal terms of employment that he must make with his workmen for this particular Job. Eight-Hour Limitation To require, however, that every small con tract entered Into by the government should be carried out by the contractor with men working at eight hours would be to Impose an Intolerable burden on the government by limiting its souroes of supply and excluding altogether th. great majority of those who would otherwise compete for Its business. . The proposed act recognize, this In the ex ception, which It make, to contracts. "For transportation by water or land, for the transmission of Intelligence and for such materials or artlcl.B a* may usually be bought ln th. open market whether made to conform to particular specifications or not, or for the purchase of supply by th. gov ernment, whether manufactured to conform to particular specifications or not" I recommend that Instead of enacting the proposed bill, the meaning of which Is' not clear and definite and might be given a construction embarrassing to the publlo In terest the present act be enlarged by pro viding that public work shall be construed to Include not only building and work upon public ground but also ships, armor and large suns, when manufactured In private yard* or factories. One of the great difficulties In enforcing this eight hour law Is that Its application under certain emergencies becomes extremely oppressive and there 1. a great temptation to subordinate officials to evade It. I tblnk that It would be wiser to allow th* presi dent, by executive order, to declare an emergency ln .pedal Instance. In which th* limitation might not apply and. ln such cases, to permit th* payment to the government of extra compensation for the time worked each day In excess of sight hours. I may add that my suggestion. In respect to this legislation have the full concurrence of the commissioner of labor. Workmen's Compensation In view of the keen, widespread Interest now felt In the United States ln a system of compensation for Industrial acoldents to supplant our present thoroughly unsatisfac tory system of employers* liability, (a sub ject the importance of which congress has already recognised by the appointment of a commission), I recommend that the Interna tional congress on Industrial Insurance be In vited to hold Its meeting 1913 ln Washing ton; and that an appropriation of $10,000 be made to cover th* necessary expenses of or ganizing and carrying on the meeting. By an act passed by congress the presi dent wa* authorised to expend a million dollar* to construct th* needed work to prevent Injury to the lands of the Im perial valley from the overflow of the Colo rado river. I appointed a competent en gineer to examine the locality and report a plan for construction. He has don. so. In order to complete the work it is neces sary to secure the consent of Mexico, for part of the work must be constructed In Mexican territory. Negotiations looking to the securing of such consent are quite near completion. The Southern Paclflo railroad proposes to assist us In th* work by lend ing equipment and by the transportation of material at coat price, and It Is hoped that the work may be completed before any danger shall arise from the spring floods tn the river. The work is being done under the super vision of the secretary of the Interior and hi* consulting engineer, General Marshall, late chief of engineers, now retired. This leads me to Invito the attention of congress to the claim made by the Southern Pacific Railroad company for an amount expended ln a similar work of relief called for by a flood and great emergency. This work, as I am Informed, was undertaken at the request of my predeeesaor and under promise to reimburse the railroad com pany. It seems to me the equity of this claim is manifest and the only question in volved Is the reasonable value of the work done. I recommend the payment of the claim ln a sum found to be Just Civil Service Commission The civil servloe commission has con tinued Its useful duties during the year. The necessity for the maintenance of the provisions of the civil service law was never greater than today. Officer* respon sible for th* policy of the administration, and their Immediate personal assistant* or deputies, should not be inoluded within the classified service; but ln my Judgment pub llo opinion has advanced to the point where It would support a bill providing a secure tenure .during efficiency for all purely ad ministrative officials. I entertain the pro found conviction that it would greatly aid the cause of efficient and economical gov ernment and of better politics If congress could enact a bill providing that the execu tive shall have the power to Include ln the classified service all local officers under the treasury department, the department of Jus tice, the interior department, the depart ment of labor,, departments to which now require th* confirmation of the senate, and that upon such classification the advice and consent of the senate shall cease to be re quired in such appointments. By their cer tainty of tenure, dependent on good service, and by their freedom from the necesalty for political activity, these local officers would be Induced to become more efficient publlo servants. The civil service law 1* an attempt to solve the problem of the proper selection of those who enter the service. A better sys- One True Medicinal Whiskey Beware of imitations and substitutes unscrupulous dealers tell you are "just as good as" Duffy's Pure Malt Whiskey These cheap concoctions are foisted on the people with the intent to deceive by dealers mindful of their profits only and caring noth ing for the health of their patrons. Some try to make you believe it is Duffy's Pure Malt Whiskey. Others go as far as to refill our, bottles with these concoctions and endeavor to fool the people into buying their spurious goods as the genuine. Keep a close watch and do not buy one of these refilled bottles. Substitutes Are Dangerous When a remedy has been before the public for more than half a century, has been prescribed and used by the best doctors and in prominent hospitals, and has carried the blessings of health into an many thousands of homes as Duffy's Pure Malt Whiskey has, imi tations are bound to arise. But they can imitate the bottle and label only— one can imitate the contents. JIU HSI Duffy's Pure |pi 111 Malt Whiskey i^^fekJw^V *s beneficial B "^ P"^ dlStllla- H t**on °* ma'te<^ B"ra'n- Its palat- II «lfj OT^rffiiMSb^Kw ability and its freedom from in §§*• 'te[ w|^^P^w«(h| jurious substances render it so fjVk /^■^SHj^^P'Bg^ra^ t'iat '* can be retained hy the most %l 6/ 0 i^^^^lfWM^k^^ used with remarkable results in & £*1 li^MValaVEttl lie treatment °* consumption, P* i *^yB I^^^S^ra^i pneumonia, grip, coughs, colds, P- ■ ~MMk l^Hi,«^|^^^/| asthma, malaria, low fevers, stom ja ach troub*es *n.d all wasted anci pJUlliJpll Sli^S^filfi The genuine Duffy's Pure Malt |m ■'ii , "^'Tl W^BO^SSSI Whiskey is sold in sealed bottles oitf-_^WY^____i^\ onl y- The "01d Chemist 3 Head" &»_..**" V :^\^C__W wk____ >s on the 'abe and over t^ie cnr'c _W_ *i-S^ sHWJ is an engraved seal. Be certain |ftlO,ll^B Rn|| :^^^H this seal is unbroken. Sold by Wg^jg^-g^^^M^^^^^MMP everywhere or direct, $1.00 a larg-3 Facsimile of yui-m_m and botU* greatly reduoed TU* DuJTy Hall Whiskey Co., Koche.»*r N. i. '■_._, i -* ie ¥?-a ,i m / *nT^-■: SP*..»A »i-Ms9u>jA\>3fr! t.m under that law for promotion ought to be devised, but. given th. .elected employ*, there remains still the question of promot ing his efficiency and his uael .In*** to the government and that can be b j-t..' • about only by a careful comparison at Will work done by th* Individual and appointing out of the necessity for Improvement A tht* regard where Improvement 1* Impossible. Economy and Efficiency The Increase In the activities and in th* annual expenditures of the federal govern ment has been so rapid and bo great thit the time has com* to check the expand of government activities ln new direction* until we have tested the economy and ef ficiency with whloh the government of to day la being carried on. Th* responsi bility rests upon the head of the adminis tration. He 1* held accountable by the pah Ho and properly so. Despite the unsolilsa and patriotic efforts of the heads cf de partments and other* charged with respon sibility of government, there has grown up In this country a conviction that ths expenses of government Are too great The fundamental reason for the existence un detected of waste, duplication and bad man agement la the lack of prompt, accural* Information. The president of a private corporation doing so vast a business an the government tranaaots would, through competent specialists, maintain th* closest scrutiny on the comparative efficiency anl the comparative coat In each division c department of the business. He would know precisely what the duties and the activ ities of each bureau or division are In order to prevent overlapping. No adequate ma chinery at present exists for supplying the) president of the United States with su< In formation respecting the business for whicli he is responsible. For the first time In th* history of ui'v government congress in the last session sup piled this need and made an appropriation to enable the president to Inquire into the econ omy and efficiency of the executive depart ments, and I am now assembling an organ ization for the purpose. At the outset I find comparison between th* departments and bureaus Impossible, for th* reason that ln no two departments are the estimate, and expenditures displayed and classified alike. The first step Is to reduce all to a common standard for classification and Judgment and this work 1. being done. When It is completed the foundation will b* laid for a businesslike national budget and for such a Just comparison of th. econ omy and efficiency with which the several divisions are conducted a* would enable th* president and the heads of department, to detect waste, eliminate duplication, encour age the Intelligent and effective civil servant* whose efforts too often go ur.notieed, am] secure 'he public service at the lowest pos sible cost. , The committees on appropriation, of con gress have diligently worked to reduce the expenses of government and have found their effort, often blocked by lack of accurate In formation containing a proper analyst* of requirements and of actual and reasonable cost.. The result of thla Inquiry should en able the executive In his communications to congress to give Information to which con gress Is entitled, and which will enable It to promote economy. -s I have requested th* head of eaoh de partment to appoint committee* on economy and efficiency ln order to secure full co operation ln the movement by the employes of the government themselves. I urge the contlnuan-* of the appropria tion of $100,000 requested for the fiscal year 1912. My experi.no. leads me to bellev* that while government method, are much criti cised, the bad result*—lf we do have bad results—are not due to a lack of seal or willingness on the part of the civil servants. On the contrary, I believe that a fin* spirit of willingness to work exists j In th. personnel, which If properly encouraged will produce results equal to those secured In the best managed private enterprise.. In hand ling government expenditure the aim Is not profit—th. aim I. th. maximum public ser vice at the minimum of cost. We wish to reduce the expenditures of the government, and we wish to enable the government to go -Into some of the beneficial project* allien we are debarred from taking up now because we ought not to Increase our expenditures. Civil Service Retirement It I. Impossible to proceed far ln stnh art Investigation without perceiving the need ■ i eliminating from the service the superacnu ated. This can be done In one of two ways, either by straight civil pension or by soma form of contributory pension and the experi ence of England and other countries with pension plans, and says: "The simplest and moat Independent solu tion of the problem for both employe and th* government Is a compulsory savings - arrange ment, the employe to set aside from his sal ary a sum Blfflcient with th. help of a lib eral amount of interest from the government (Continued on Page Eight) 5