The new era., December 12, 1907, Image 3

About The new era. (Walden, Colo.) 1906-19??

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THE PRESIDENT'S
ANNUAL MESSAGE
CAUSES OF THE PRESENT FINAN
CIAL CONDITIONS IS MADE
THE CHIEF TOPIC.
SUGGESTS REMEDIES FOR ILLS
CONTROL OF CORPORATIONS AND
RAILROADS TO PREVENT
OVERCAPITALIZATION.
■•ll*vh Thl« Would Bolvc the Prob
lem Together with Provision for
More Eleetlo Currency—Recom
mends Postal Banks and Aaka for
Legislation Along Many Lines.
ms Washington, Dec. S. President
®|looaevelt’» annual message to congress
is * voluminous document of nearly
10,000 words, by far the longest mes
sage he has ever submitted to congress.
The opening subject of the message is
the financial condition of the country,
and for which the president lays much
of the blame upon unscrupulous stock
•peculators, and says:
"In any large body of men. however,
there are certain to be some who are
dishonest, and if the conditions are
• uch that these men prosper or com
mit their misdeeds with impunity, their
example is a very evil thing for the
community. Where these men are busi
ness men of great sagacity and of tem
perament both unscrupulous and reck
less. and where the conditions are such
that they act without supervision or
control and at first without effective
check from public opinion, they delude
many innocent people into muklng in
vestments or embarking in kinds of
business that are really unsound.
When the misdeeds of these successful
ly dishonest men are discovered, suf
fering comes not only upon them, but
upon the innocent men whom they
have misled. It is a painful awakening,
whenever it occurs; and. naturally,
when it does occur those who suffer
are apt to forget that the longer it was
deferred the more painful it would be.
In the effort to punish the guilty it is
both wise and proper to endeavor so
far as possible to minimize the dis
tress of those who have been misled by
the guilty. Yet It is not possible to
refrain because of such distress from
•triving to put an end to the misdeeds
that are the ultimate causes of the suf
fering. and. as a means to this end.
where possible to punish those re
sponsible for them. There may be hon
est differences of opinion as to many
governmental policies; but surely there
can be no such differences as to the
need of unflinching perseverance in the
war against successful dishonesty."
He quotes at length from his mes
sage of last year in which he advo
cated federal control of corporations
doing interstate business, and believes
| that in such control would be found the
remedy for overcapitalization and
stock speculation which he believes
have brought about the present finan
cial conditions. He says:
"Our steady aim should be by legis
lation, cautiously and carefully under
taken, but resolutely persevered in. to
assert the sovereignty of the national
government by affirmative action.
"This is only In form an innovation.
In substance it Is merely a restoration;
for from the earliest time such regula
tion of industrial activities has been
recognized in the action of the law
making bodies; and all that 1 propose
Is to meet the changed conditions in
• uch manner as will prevent the com
monwealth abdicating the power it has
Always possessed, not only in this coun
try. but also in England before and
•lnce this country became a separate
nation.
XTedernl Control of
Railroads Is Favored.
"No small part of the trouble that we
have comes from carrying to an ex
treme the national virtue of self-re
liance. of independence in initiative
and action. It is wise to conserve this
virtue and to provide for its fullest ex
ercise, compatible with seeing that lib
erty does not become a liberty to
wrong others. Unfortunately, this is
the kind of liberty that the lack of all
effective regulation inevitably breeds.
The founders of the constitution pro
vided that the national government
should have complete and sole control
of interstate commerce. There was
then practically no interstate business
save such as was conducted by water,
and this the national government at
once proceeded to regulate in thorough
going and effective fashion. Condi
tions have now so wholly changed that
the interstate commerce by water is in
significant compared with the amoiint
that goes by land, and almost all big
business concerns are now engaged in
Interstate commerce. As a result, it
can be but partially and imperfectly
controlled or regulated by the action of
any one of the several states; such ac
tion inevitably tending to be either too
drastic or else too lax. and in either
case Ineffective for purposes of justice.
Only the national government can in
thoroughgoing fashion exercise the
needed control. This does hot mean
that there should be any extension of
federal authority, for such authority
already exists under the constitution in
amplest and most far-reaching form;
but it does mean that thero should be
an extension of federal activity. This
Is not advocating centralization. It is
merely looking facts in the face, and
realising that centralization in business
has already come and can not be avoid
ed or undone, and that the public at
large can only protect itself from cer
tain evil effects of this business cen
tralisation by providing better methods
for the exercise of control through the
authority already centralized in the
national government by the constitu
tion itself. There must be no halt in
the healthy constructive course of ac
tion which this nation has elected to
pursue, and has steadily pursued, dur
ing the last six years, as shown both in
the legislation of the congress and the
administration of the law by the de
partment of Justice. The most vital
need is in connection with the railroads.
As to these, in my Judgment there
should now be cither a national incor
poration act or a law licensing railway
companies to engage in Interstate com
merce upon certain conditions. The law
should be so framed as to give to the
Interstate commerce commission power
to pass upon the future issue of securi
ties, while ample means should be pro
vided to enable the commission, when
ever in Its judgment it is necessary, to
make a physical valuation of any rail
road. As I stated in my message to the
oongress a year ago, railroads should
bs given power to enter Into agree
ments. subject to these agreements be
ing made publio In minute detail and to
the consent of the Interstate commerce
commission being flrst obtained. Until
the national government assumes
proper control of interstate commerce,
in the exercise of the authority It al
ready possesses, it will be impossible
either to give to or to get from the
railroads full Justice. The railroads
and all other great corporations will
do well to recognize that this control
must come; the only question is as to
what governmental body can most
wisely exercise it. The courts will de
termine the limits within which the
federal authority can exercise it. and
there will still remain ample work
within each state for the railway com
mission of that state; and the national
interstate commerce commission will
work in harmony with the several state
commissions, each within its own prov
ince, to achieve the desired end.
Control of Interstate
Business Concerns Urged.
"Moreover, In my Judgment there should
be additional legislation looking to the
proper control of the great business con
cerns engaged in interstate business, this
control to be exercised for their own
benefit and prosperity no less than for
the protection of investors and of the ’
general public. As I have repeatedly
said in messages to congress and else
where, experience has definitely shown
not merely the fmwlsdoin but the futility
of endeavoring to put a stop to all busi
ness combinations. Modern industrial
conditions are such that combination is
not only necessury but inevitable. It is
so in the world of business Just as it is
so in the world of labor, and it is us Idle
to desire to put an end to ull corpora
tions, to all big combinations of capital,
as to desire to put an end to combina
tions of lubor. Corporation and lubor
union alike have come to stay. Each If
properly manuged Is a source of good
and not evil. Whenever in either there
is evil. It should be promptly held to ac
count; but it should receive hearty en
couragement so long as it is properly
managed. It is profoundly Immoral to
put or keep on the statute books a law,
nominally in the interest of public moral
ity, that really puts a premium upon
public immorulity, by undertaking to
forbid honest men from doing what must
be doni under modern business condi
tions, so that the law itself provides that
its own infraction must be the condition
precedent upon business success. To aim
at the accomplishment of too much usu
ally means the accomplishment of too lit
tle, and often the doing of positive dam
age.
"The antitrust law should not be re
pealed; but it should be made both more
efficient and more in harmony with act
ual conditions. It should be so amended
as to forbid only the kind of combination
which does harm to the general public,
such amendment to be accompanied by,
or to be an incident of, u grunt of su
pervisory power to the government over
these big corporations engaged in inter
state business. Tills should be accom
panied by provision for the compulsory
publication of accounts and the subjec
tion of books and papers to the Inspec
tion of the government officials. A be
ginning has already been made for such
supervision by the establishment of the
bureau of corporations.
"The antitrust law should not prohibit
omnlUnutions that do no injustice to the
public, still less those the existence of
which is on tlie whole of benelit to the
public. But even if this feature of the
law were abolished, there would remain
as an equally objectionable feature the
difficulty and delay now Incident to its
enforcement. The government must now
submit to irksome and repeated delays
before obtaining a final decision of the
courts upon proceedings instituted, and
even a favorable decree may mean an
empty victory. Moreover, to attempt to
control these corporations by lawsuits
means to impose upon both the depart
ment of justice and the courts an Im
possible burden; it is not feasible to carry
on more than a limited number of such
suits. Such a law to be really effective
must of course be administered by an
executive body, and not merely by means
of lawsuits. The design should be tp
prevent the abuses incident to the crea
tion of unhealthy and Improper combina
tions, instead of waiting until they are
In existence and then attempting to de
stroy them by civil or criminal proceed
ings.
Investing Public Should
lie Amply Safeguarded.
"The congress has the power to charter
corporations to engage in interstate and
foreign commerce, and a general law can
be enacted under the provisions of Which
existing corporations could take out fed
eral charters and new federal corpora
tions could be created. An essential pro
vision of such a law should boa method
of predetermining by pome federal board
or commission whether the applicant for
a federal charter was an association or
combination within the restrictions of the
federal law. Provision should also be
made for complete publicity in all matters
affecting the public and complete protec
tion to the investing public and the share
holders In the matter of issuing corporate
securities. If an incorporation law Is not
deemed advisable, a license act for big
Interstate corporations might be enacted;
or a combination of the two might be
tried. The supervision established might
bo analogous to that now exercised over
national banks. At least, the antitrust
act should be supplemented by specific
prohibitions cf the methods which ex
perience has shown have been of most
service in enubling monopolistic combina
tions to crush out competition. The real
owners of a corporation should be com
pelled to do business in their own name.
The right to hold stock in other corpora
tions should hearcafter be denied to inter
state corporations, unless on approval by
the proper government officials, and a
prerequisite to such approval should be
the listing with the government of all
owners and stockholders, both by the
corporation owning such stock and by
the corporations in which such stock is
owned.
"To confer upon the national govern
ment, in connection with the amendment
I advocate in the antitrust law, power of
supervision over big business concerns
engaged In interstate commerce, would
benefit them as it has benefited the na
tional banks. In the recent business
crisis it is noteworthy that the institu
tions which failed were Institutions
which were not under the supervision and
control of the national government.
Those which were under national con
trol stood the test.
"National control of the kind above ad
vocated would be to the benefit of every
well-managed railway. From the stand
point of the public there Is need for ad
ditional tracks, aditlonal terminals, and
improvements in the actual handling of
the railroads, and all this as rapidly as
possible. Ample, safe, and speedy trans
portation facilities are even more neces
sary than cheap transportation. There
fore, there Is need for the Investment of
money which will provide for all these
things while at the sums time securing as
fas as Is possible better wages and
shorter hours for their employes. There
fore. while there must be Just and rea
sonable regulation of rates, we should be
the flrst to protest against any arbitrary
and unthinking movement to cut them
down without the fullest and most care
ful consideration of all Interests con
cerned and of the actual needs of the
situation. Only a special body of men
acting for the national government un
der authority conferred upon It by the
congress is competent to puss judgment
on such a matter.
Aieeater Elasticity la
Currency la Urged.
The president quotes extensively from
his last message in dealing with the dl
rovt subject of currency legislation, and
says:
"I again urge on the congress the need
of immediate attention to this matter.
We need a greater elasticity in our cur
rency; provided, of course, that we recog
nize the even greater need of a safe and
secure currency. There must always be
the most rigid examination by the na
tional authorities. Provision should be
made for an emergency currency. The
emergency issue should, of course, be
madu with an effective guaranty, and up
on conditions carefully prescribed by the
government. Such emergency issue must
be based on adequate securities approved
by the government, and must be issued
under a heavy tax. This would permit
currency being Issued when the demand
for it was urgent, while securing its re
tirement as the demand fell off. It is
worth Investigating to determine whother
officers and directors of national banks
should ever be allowed to loan to them
selves. Trust companies should be sub
ject to the same supervision as banks;
legislation to this effect should be en
acted for the District of Columbia and
the territories.
"Yet we must also remember that even
the wisest legislation on the subject can
only accomplish a certain amount. No
legislation can by any possibility guar
antee the business community against the
results of speculative folly any more than
it can guarantee an individual against the
results of his extravagance. When an in
dividual mortgages his house to buy an
automobile lie Invites disaster; and when
wealthy men, or men who pose as such,
or are unscrupulously or foolishly eager
to become such, indulge in reckless spec
ulation—especially If It Is accompanied by
dishonesty—they jeopardize not only their
own future but the future of all their In
nocent fellow-citizens, for they expose
the whole business community to panic
and distress.”
He advises against any general tariff
legislation this session of congress, and
says:
"In a country of auch phenomenal
growth as ours It Is probably well that
every dozen years or so the tariff laws
should be carefully scrutinized so as to
see that no excessive or Improper bene
llts are conferred thereby, that proper
revenue Is provided, and that our
foreign trade is encouraged. There
must always be as a minimum
a tariff which will not only al
low for the collection of an ample rev
enue but which will at least make
good the difference In cost of production
here and abroad; that Is, the difference In
the labor cost here and abroad, for the
well-being of the wage-worker must ever
be a cardinal point of American policy.
The question should be approached pure
ly from a business standpoint; both the
time and the manner of the change being
such as to arouse the minimum of agi
tation and disturbance in the business
world, and to give the least play for
selfish and factional motives. The sole
consideration should he to see that the
sum total of changes represent the pub
lic good. Tills means that the subject
cannot with wisdom be dealt with in the
year preceding a presidential election, be
cause as a matter of fact experience has
conclusively shown that at such a time
It is Impossible to get men to treat it from
the standpoint of the public good. In my
Judgment the wise time to deal with the
matter is Immediately after such elec
tion. "
He asks for the repeal of the tariff on
paper and wood pulp.
He reviews and enlarges upon his pre
vious recommendations for the enact
ment of federal Inheritance and income
tax laws.
Attention Is called to the prosecution of
wealthy offenders ngainst the national
laws, and In this connection ho asks that
the laws under which these prosecutions
nre brought be strengthened and made
more deflnlto.
The Use and the
Abuse of Injunction*.
“Instances of abuse in the granting of
Injunctions In labor disputes continue to
occur, and the resentment In the minds
of those who feel that their rights are
being Invaded and their liberty of action
and of speech unwarrantably restrained
continues to grow. Much of the attack
on the use of the process of injunction Is
wholly without warrant; but I am con
strained to express the belief that for
some of It there is warrant. Tills ques
tion Is becoming more and more of prime
importance, and unless the courts will
themselves deal with it in effective man
ner. it is certain ultimately to demand
some form of legislative action. It would
be most unfortunate for our social wel
fare If we should permit many honest
and law-abiding citizens to feel that
they had Just cause for regarding our
courts with hostility. I earnestly com
mend to the attention of the congress
this mntter. so that some way may he
devised which will limit the abuse of In
junctions and protect those rights which
from time to time it unwarrantably In
vades. Moreover, discontent is often ex
pressed with the use of the process of
Injunction by the courts, not only In la
bor disputes, but where state laws are
concerned. I refrain from discussion of
this question as I nm informed that It
will soon receive the consideration of the
supreme court."
Of other legislation In the Interest of
labor he favors federal Inspection of rail
roads; providing limited but deflnlte com
pensation for accidents to all workmen
employed In any way by the government,
and says:
"The constitutionality of the employers'
liability act passed by the preceding con
gress has been carried before the courts.
In two Jurisdictions the law has been de
clared unconstitutional, and In three juris
dictions its constitutionality has been af
firmed. The question has been carried to
ri.e supreme cQurt, the case has been
heard by that tribunal, and a decision Is
expected at an early date. In the event
that the court should affirm the consti
tutionality of the act, I urge further leg
islation along the lines advocated In my
message to the preceding congress. The
practice of putting the entire burden of
loss of life or limb upon the victim or
tne victim’s family Is a form of social In
justice In which the United States stands
in unenviable prominence. In both our
federul and our state legislation we have,
with few exceptions. scarcely gone
farther than the repeal of the fellow
servant principle of the old law of liabil
ity. and in some of our states even this
slight modification of a complete out
grown principle has not yet been se
cured.”
He favors the extension of the eight
hour law to all departments of the gov
ernment, and to all work carried on by
the government. He urges legislation
for the
dustrial disputes, and says:
"The need for some provision for such
Investigation was forcibly Illustrated
during the past summer. A strike of
telegraph operators seriously Interfered
with telegraphic communication, caus
ing great damage to business Interests
and serious Inconvenience to the gen
eral public. Appeals were made to me
from many parts of tho country, from
city councils, from bonrds of trade,
from chambers of commerce, and from
labor organizations, urging that steps
bo taken to terminate tho strike.
Everything that could with any pro
priety be done by a representative of
the government was done without avail,
and for weeks tho public stood by and
suffered without recourse of any kind.
Had the machinery existed and had
thero been authority for compulsory
Investigation of the dispute, the public
would have been placed in possession
of the merits of the controversy, and
public opinion would probably have
brought about prompt adjustment.
"It Is idle to hold that without good
laws evils sueh as child labor, as the
over-working of women, as the fail
ure to protect employes from loss of
life or limb, can be effectively reached,
any more than the evils of rebates and
stock-watering can be reached without
good laws. To full to stop these prac
tices by legislation means to force
honest men Into them, because other
wise the dishonest who surely will
take advantage of them will have
everything their own way, If the states
will correct these evils, well and good;
but tho nation must stand ready to aid
them.
Inland Waterway Systems
Should lie Deevloped.
"The conservation of our national re
sources nnd their proper use constitute
the fundamental problem which under
lies almost every other problem of our
national life. We must maintain for
our civilisation the adequate material
basis wftiiout which that civilization
cannot exist. We-must show foresight,
we must look ahead. As a nution we
not only enjoy a wonderful measure of
present prosperity but If this prosper
ity is used aright it is an earnest of
future success such ns no other nation
will have. The reward of foresight foi
this nation is great and easily foretold.
But there must be the look ahead,
there must be a realization of the fact
that to waste, to destroy, our natural
resources, to skin and exhaust the land
Insteud of using it so as to increase its
usefulness, will result In undermining
In the days of our children the very
prosperity which ws ought by right to
hand down to them amplified and devel
oped. For the last few years, through
several ngencles, the government lias
been endeavoring to get our people to
look ahead and to substitute a planned
and orderly development of our re
sources in place of a haphazard striv
ing for immediate profit. Our great
river systems should bo developed as
national water highways; the Missis
sippi. with Its tributaries, standing first
in importance, and tho Colum.bla. sec
ond, although there are many others of
importance on the Pacific and Atlantic
and the gulf slopes. The national gov- ,
ernment should undertake tills work,
and I hope a beginning will be made
In the present congress; and the great
est of all our rivers, the Mississippi,
should receive especial attention. From
the Great l*akes to the mouth of the
Mississippi there should boa deep wa
terway. with deep water ways leading
from It to the east and the west. Such
a waterway would practically mean
the extension of our coast line into the
very heart of our country. It would be
of incalculable benefit to our people. If
begun nt once It can be carried through
In time appreciably to relieve the con
gestion of our grent freight-carrying
lines of railroads. The work should be
systematically and continuously carried
forward in accordance with some well
conceived plan. The main streams
should be Improved to the highest
point of efficiency before the Improve
ment of tho branches Is attempted; and
the work should be kept free from
every taint of recklessness or Jobbery."
Attention is called to the work of Ir
rigation nnd reclamation of govern
ment lands. In the same connection he
asks for a revision of the public land
laws along the lines proposed by the
public lands commission. Believes the
government should increase its efforts
to - conserve our forests nnd should in
crease by purchase the existing forest
preserves. On the subject of the nnturul
resources of the nation he says:
“In the eastern United States the
mineral fuels have nlready passed Into
the hands of Inrgo private owners, and
those of the west arc rapidly following.
It Is obvious that these fuels should he
conserved nnd not wasted, ami it would
bo well to protect the people against
unjust and extortionate prices, so far
as that can still be done. What has
been accomplished in the great oil
fields of the Indian Territory by tin*
action of the administration offers a
striking example of the good results
of such a policy. In my Judgment the
government should have the right to
keep the fee of the coal, oil and gas
fields in Its own possession nnd to lease
the rights to develop them under
proper regulations; or else. If the con
gress will not adopt this method, the
coal deposits should he sold under lim
itations, to conserve them as public
utilities, the right to mine coal being
separated from the title to the soil.
The regulations should permit coal
hands to bo worked in sufllclent quan
tity by the several corporations. The
present limitations have been absurd,
excessive, and serve no useful purpose,
and often render It necessary that
there should he either fraud or else
abandonment of the work of getting
out the coal."
Progren* of the Work
On the Panama C'nnal.
"Work on the Panama canal Is pro
ceeding In a highly satisfactory man
ner. In March tho total excavation In
the Culebra Cut. where effort was
chiefly concentrated, was 815,270 cubic
yards. In April this was Increased to
879.527 cubic yards. There was a con
siderable decrease in the output for
May and June owing pnrtly to the ad
vent of the rainy season and partly to
temporary trouble with the steam
shovel men over the question of wages.
This trouble was settled satisfactorily
to all parties nnd In July the total ex
cavation advanced materially nnd in
August the grand total from all points
In the canal prism by steam shovels
and dredges exceeded all previous
United States records, reaching 1,274,-
404 cubic yards. In September this rec
ord was eclipsed and a total of 1.617,-
412 cubic yards was removed. Of this
amount 1,481.307 cubic yards were from
the canal prism nnd 36,105 cubic yards
were from accessory works. Those re
sults were achieved in the rainy sea
son with a rainfall in August of 11.89
inches and in September of 11.65 Inches.
Finally, in October, the record was
again eclipsed, the total excavation be
ing 1.868.729 cubic yards; a truly ex
traordinary record, especially In view
of the heavy rainfall, which was 17.1
inches. In fact, experience during the
last two rainy seasons demonstrates
that the rains are a less serious ob
stacle to progress than has hitherto
been supposed.
"Work on the locks and dams at
Gatun, which began actively In March
last, has advanced so far that it Is
thought that masonry work on the
locks can bo begun within 15 months.
"I>ast winter bids were requested and
received for doing the work of canal
construction by contract. None of them
was found to be satisfactory and all
were rejected. It Is the unanimous
opinion of the present commission that
the work can be done better, more
cheaply, and more quickly by the gov
ernment than by private contractors.
Fully 80 per cent, of the entire plant
needed for construction has been pur
chased or contracted for; machine
shops have been erected and equipped
for making all needed repairs to the
plant; many thousands of employes
have been secured; an effective organi
zation has been perfected; a recruiting
system is in operation which Is capable
of furnishing more labor than can he
used advantageously; employes are
well sheltered and well fed; salaries
paid are satisfactory, and tho work Is
not only going forwurd smoothly, but
it Is producing results far In advance
of the most sanguine anticipations.
Under these favorable conditions, a
change In the method of prosecuting
the work would he unwise and unjusti
fiable, tor it would inevitably disorgan
ize existing conditions, check progress,
and increase, tho cost and lengthen the
time of completing the canal.
President Recommends
Postal Savings Banks.
"I commend to tho favorable consid
eration of the congress a postal sav
ings bank system, as recommended by
the postmaster general.. Tho primary
object is to encourage among our peo
ple economy and thrift and by tho use
of postal savings banks to give them
an opportunity to husband their re
sources, particularly tiiose who have
not the facilities at hand for depositing
their money in savings banks. Viewed,
however, from tho experience of the
past few weeks, it is evident that the
advantages of such an Institution are
still more far-reaching. Timid depos
itors have withdrawn their savings for
the time being from national banks; in
dividuals have hoarded their cash and
the workingmen their earnings; all
of which money has been withdrawn
and gfvpt in hiding or in the safe de
posit box to the detriment of pros
perity. Through the agency of the pos
tal savings banks such money would be
restored to the channels of trade, to
tin* mutual benefit of capital and labor.
"1 further commend to the congress
the consideration of the postmaster
general's recommendation for an ex
tension of tlie parcel post, especially on
the rural routes. There are now 38,-
216 rural routes, serving nearly 15,000,-
000 people who do not have the ad
vantages of the inhabitants of cities In
obtaining their supplies. These recom
mendations have been drawn up to
benefit the farmer and the country
storekeeper; otherwise, I should not
favor them, for I believe that It is good
policy for our government to do every
thing possible to aid the small town
and the country district. It Is desirable
that the country merchant should not
be crushed out.
"Tlie fourth-class postmasters' con
vention has passed a very strong reso
lution In favor of placing the fourth
class postmasters under the civil-serv
ice law. The administration has nl
ready put into effect the policy of re
fusing to remove any fourth-class post
masters save for reasons connected
with the good of tlie service; and It is
endeavoring so far as possible to re
move them from the domain of partisan
politics. It would be a most desirable
thing to put the fourth-class postmas
ters in the classified service."
lie renews his recommendations of
last year In regard to Alaska; calls at
tention to the admission of Oklahoma
as a state; urges the Importance of pro
viding shipping relief for Hawaii; asks
for citizenship for Porto Ricans, and
promises submission of Secretary
Taft's report on Philippines when-that
official returns.
lie asks for the creation of a bureau
of mines; recommends the providing of
funds for preserving The Hermitage,
the home of Andrew Jackson; ami tlie
erection of a naval m*» w uinent at
Vicksburg.
Corporation Contributions
to Comiiiulko Kxpen*r*.
"Under our form of voting
Is not merely a right hut *. duty, and,
moreover, a fundamental and necessary
duty If a niun Is to be a good citizen.
It is well to provide that corporations
shall not contribute to presidential or
national campaigns, nnd furthermore to
provide for the publication of both con
tributions and expenditures. There is.
however, always danger In laws of this
kind, which from their very nature are
difficult of enforcement; the danger being
lest they he obeyed only by the honest,
and disobeyed by tho unscrupulous, so
as to act only as a penalty upon honest
men. Moreover, no such law would ham
per an unscrupulous man of unlimited
means from buying his own way Into of
fice. There is a very radical measure
which would, 1 believe, work a substan
tial Improvement In our system of con
ducting a campaign, although I am well
aware that it will take some time for
people to so familiarize themselves with
such a proposal us to ho willing to con
sider Its adoption. The need for collect
ing large campaign funds would vanish It
congress provided an appropriation for
the proper and legitimate expenses of
each of tlie great national parties, an ap
propriation ampin enough to meet tlie
necessity for thorough organization and
machinery, which requires a large ex
penditure of money. Then tlie stipula
tion should be made that no party re
ceiving campaign funds from the treasury
should accept more than a flxed amount
from any Individual subscriber or donor;
and the necessary publicity for receipts
and expenditures could without difficulty
he provided.”
WnntN I ni|»ro\cinent In llir
Ocean Mall Service.
"I call your especial attention to the un
satisfactory condition of our foreign mail
service, which, because of the lack of
American steamship lines, is now largely
done through foreign lines, and which,
particularly so far as South and Central
America are concerned, is done In a man
ner which constitutes a serious barrier
to the extensions of our commerce.
"The time has come, in my Judgment,
to set to work seriously to make our
oeean mail service correspond more
closely with our recent commercial and
political development. A beginning was
made by the ocean mail act of March 3,
IS9I, hut even at that time tlie act was
known to ho inadequate in various par
ticulars. Since that time events have
moved rapidly in our history. We have
acquired Hawaii, the Philippines, und
lesser islands In the Pacific. We are
steadily prosecuting tho groat work of
uniting at the Isthmus the waters of the
Atlantic and the Pacific. To a greater
extent than seemed probably even a
dozen years ago we may look to an
American future on the sea worthy of
the tradition of our past. As the flrst
step In that direction, and the step most
feasible at the present time, I recommend
the extension of tho ocean mall act of
1891. That act has stood for some years
free from successful criticism of Its prin
ciple and purpose. It was based on theo
ries of the obligations of a great mari
time nation, undisputed In our own land
and followed by other nations since the
beginning of steam navigation. Briefly
those theories are. that it is the duty of
a flrst-class power so far as practicable
to carry Its ocean malls under Its own
flag; that the fast ocean steamships and
their crews, required for such mall serv
ice. are valuable auxiliaries to tlie sea
power of a nation. Furthermore, the
construction of such steamships Insures
the maintenance In an efficient condition
of the shipyards in which our battleships
must be built.
"The expenditure of public money for
the performance of such necessary func
tions of government Is certainly war
ranted. nor Is It necessary to dwell upon
the Incidental benefits to our foreign
commerce, to the shipbuilding industry,
and to ship owning and navigation which
will accompany tho discharge of these
urgent public duties, though they, too,
should have weight.”
Asks Increase in Pay
for Army Officers nnd Men.
The president devotes much space to
the affairs of tho army, and strongly
urges that our regular military organi
zation he kept up to the highest possible
standard of efficiency, and says:
"The medical corps should be much
greater than the needs of our regulur
army In war. Yet at present It Is small
er than the needs of the service demand
even In peace. The Spanish war oc
curred lezs than ton years ago. The
chief loss we suffered In It wus by dis
ease among the regiments which never
left the country. At the moment the
nation seemed deeply Impressed by tht*
fact; yet seemingly It has already been
forgotten, for not' the slightest effort
has been made to prepare a medical
corps of sufficient size to prevent the
repetition of the same disaster on a
much larger scale If we should ever bo
engaged In a serious conflict.
"But the medical department Is not th«
only department for which Increased pro
vision should be made. The rate of pay
for the officers should be greatly in
creased; there Is no higher type of cltlsen
than the American regular officer, and ho
should huve a fair reward for his ad
mirable work. There should boa rela
tively even greater Increase In tlie pay for
the enlisted men. An especial provision
should be made for establishing grades
equivalent to those of warrant officers Is
the navy, which should be open to the
enlisted men who serve sufficiently long
and who do their work well. Inducements
should be offered sufficient to encourage
really good men to make the army a life
occupation. The prime needs of our pres
ent army Is to secure and retain compe
tent noncommissioned officers. This diffi
culty rests fundamentally on the ques
tion of pay. The noncommissioned officer
does not correspond with an unskilled la
borer; he corresponds lo the best type of
skilled workman or to the subordinate
official In civil institutions. Wages have
greatly Increased In outside occupations
in the last 40 years and the pay of the
soldier, like tho pay of the officers, should
bo proportionately Increased. The first
sergeant of a company, If a good man,
must be one of such executive and ad
ministrative ability, and such knowledge
of his trade, ns to be worth far more than
we at present pay him. The same Is true
of the regimental sergeant major. These
men should he men who hud fully re*
solved to make the army a life occupa
tion and they should he able to look for
ward to ample reward; while only men
properly qualified should be given •
chance to secure these final rewards. The
Increase over the present pay need not
lie great in tlie lower grades for the first
one or two enlistments, but the Increase
should he marked for the noncommis
sioned officers of the upper grades who
serve long enough to make It evident that
they Intend to stay permanently In the
army, while additional pay should be
given for high qualifications In turget
practice.
"Among the officers there should be
severe examinations to weed out the
unfit up to the grade of major. From
that position on appointments should
he solely by selection and It should be
understood that a man of merely av
erage capacity could never get beyond
the position of major, while every man
who serves In any grade a certain
length of time prior to promotion to
the next grade without getting the
promotion to the next grade should be
"orthwlth retired."
I*re*l«lrnt Sere Need of
l.nrgrly Increased Mnvy.
The president asks for a continuous
increase in the navy, and asks present
congress for appropriations for four
new battleships, nnd says:
“We need always to remember that
in time of war the navy Is not to be
used to defend harbors and sea-coast
cities; we should perfect our system of
coast fortifications The only efficient
use for the na»'y is for offense. The
only way In which It can efficiently prin
ted our own coast against the possible
action of a foreign navy is by destroy
ing thnt foreign navy. For defense
against a hostile fleet which actually
attacks thorn, tlie coast cities must de
pend upon their forts, mines, torpedoes,
submarines nnd torpedo boats and de
stroyers. All of these together are ef
ficient for defensive purposes, hut they
In no way supply tho place of a thor
oughly efficient navy capable of acting
on the offensive; for parrying never yet
won a fight. It can only lie won by
hard lilting, and an aggressive sen-go
ing navy alone can do this hard hitting
of the offensive type. But the forte
nnd the like are necessary so thnt the
navy may be footloose. In time of war
there is sure to he demand, under pres
sure of fright, for the ships to be scat
tered so as to defend all kind of porta.
Under penalty of terrible disaster, thle
demand must he refused. The ships
must 'be kept together, and their ob
jective made the enemies' fleet. If
fortifications are .sufficiently strong, no
modern navy will venture to attack
them, so long as the foe has In exist
ence a hostile navy of anything like
the same size or efficiency. But unless
there exists such a navy then the forti
fications are powerless by themselves
to secure the victory. For of course
the mere deficiency means that -xny
resolute enemy can nt his leisure com
bine all his forces upon one point with
the certainty that he can take It.
Give* It canon* for Despatch
Of Fleet to tlie Pnelfle.
"Until our battle licet is much larger
than nt present it should never he split
Into detachments so far apart that they
could not In event of emergency be
speedily united. Our coast line Is on
the Pacific Just ns much as on the At
lantic. The Interests of California,
Oregon nnd Washington are ns em
phatically tlie Interests of the whole
union ns those of Maine and New York,
of Louisiana nnd Texas. The bat!l«
fleet should now and then he moved to
the Pacific, just as nt other times it
should he kept In the Atlantic. When
the isthmian canal is built the transit
of the battle fleet from one ocean to
the oilier will be comparatively easy.
Until it is built I earnestly hope that
the battle fleet will he thus shifted be
tween the two oceans every year or
two. The marksmanship on all our
ships has Improved phenomenally dur
ing the last five years. Until within
the last two or three years It was not
possible to train n battle fleet In squad
ron maneuvers under service conditions,
and It is only during these last two or
three years that the training under
these conditions has become really ef
fective. Another anti most necessary
stride In advance is now being taken,
'j he battle fleet Is about starting by
the Straits of Magellan to visit th«
Pacific coast. Sixteen battleships nr*
going under the command of Rear Ad
miral Evans. while eight nrmorro
cruisers and two other battleships will
meet him at San Francisco, whither
certain torpedo destroyers are also go
ing. No fleet of such size has ever
made such a voyage, nnd It will he of
very grent educational use to all en
gaged in it. The only way by which to
teach officers and men how to handl*
the fleet so as to meet every possible
strain and emergency in time of war is
to have them practice under similar
conditions in time of peace. Moreover,
the only way to find out our actual
needs is to perform in time of peac*
whatever maneuvers might be neces
sary In time of war. After war Is de
clared It Is too late to find out th*
needs; that means to Invite disaster.
The trip to the Pacific will show what
some of our needs are and will enable
us to provide for them. The proper
place for an officer to learn his duty
is at sea. and the only way In which a
navy can ever be made efficient is by
practice at sea. under all the condi
tions which would have to be met if
war existed."
He reviews the work accomplished
by the second peace conference at Tha
Hague; notes the improvement of af
fairs In Cuba, und the preparations be
ing made to reestablish the govern
ment of the Island republic; asks per
mission to cancel the remainder of
China's Indemnity obligation to us. and
reviews the effect of Secretary Root's
visit to Mexico.
THEODORE ROOSEVELT.
Ths White House.
December 3, 1907.