> * ^0' LMM& «?■ ■ * O N • i.^" «v A \W/ >bv° ^. ^>o ^o, ,-.-•• V«* ^ ** v % -.TOs?-' J"*. r*v +. ,V V O " o „ o «, v <. ^ <. , 6 o Presidential Addresses and State Papers PRESIDENTIAL ADDRESSES AND STATE PAPERS OF WILLIAM HOWARD TAFT From March 4, 1909, to March 4, 1910 Volume One NEW YORK DOUBLEDAY, PAGE & COMPANY 1910 UL(* C^j-vvi v ALL RIGHTS RESERVED, INCLUDING THAT OF TRANSLATION INTO FOREIGN LANGUAGES, INCLUDING THE SCANDINAVIAN COPYRIGHT, IQIO, BY DOUBLEDAY, PAGE & COMPANY PUBLISHED, SEPTEMBER, IQIO ©CI. A 27-" CONTENTS PAGE 1. Speech of Acceptance ..... 3 (Cincinnati, Ohio, July 28, 1908.) 2. The Republican Party's Appeal ... 43 (Published in The Independent, October 15, 1908.) 3. Inaugural Address ..... 53 (March 4, 1909.) 4. Message Convening Congress in Extra Session . 69 (March 16, 1909.) 5. Grover Cleveland Memorial . . . . 71 (Carnegie Hall, New York City, March 18, 1909.) 6. Message to Congress on proposed Tariff Revision Law of 1909 for the Philippine Islands . . 78 (April 14, 1900.) 7. Government of the District of Columbia . 80 (Board of Trade and Chamber of Commerce Banquet, Washington, D. C, May 8, 1909.) 8. Message to Congress Concerning Affairs in Porto Rico 88 (May 10, 1909.) 9. Unveiling of the Pennsylvania Memorial, at Petersburg, Virginia ..... 97 (May 19, 1909.) vi CONTENTS PAGE 10. Mecklenburg Declaration . . . .101 (Charlotte, N. C, May 20, 1909.) 11. The Negro and the South . . . .111 (Howard University, Washington, D. C, May 26, 1909.) 12. Rodelph Shalom Temple . . .117 (Pittsburg, Pa., May 29, 1909.) 13. The Regular Army of the United States . .119 (Gettysburg, Pa., May 31, 1909.) -14. An Answer to Panama Canal Critics . . 124 (Published in McClure's Magazine, May, 1909.) 15. Judicial Decisions as an Issue in Politics . 142 (Published in McClure's Magazine, June, 1909.) 16. Message to Congress Concerning the Govern- ment of Cuba ...... 164 (June 5, 1909.) 17. Message to Congress Concerning Tax on Net Income of Corporations . . . .166 (June 16, 1909.) 18. Unveiling of Memorial to Dr. Benjamin F. Ste- phenson, Founder of the Grand Army of the Republic ....... 170 (Washington, D. C, July 3, 1909.) 19. Two Hundred and Fiftieth Anniversary of the Founding of Norwich, Conn. . . . 173 (July 5, 1909.) CONTENTS vii PAGE 20. Catholic Summer School of America . . 178 (Cliff Haven, N. Y., July 7, 1909.) 21. Boston Chamber of Commerce . . . 182 (September 14, 1909.) 22. Labor and the Writ of Injunction . 191 (Orchestra Hall, Chicago, September 16, 1909). 23. Postal Savings Banks . . . . .201 (Milwaukee, Wis., September 17, 1909.) 24. The Tariff 209 (Winona, Minn., September 17, 1909.) 25. Amendment of Interstate Commerce Law . 231 (Des Moines, Iowa, September 20, 1909.) 26. Corporation and Income Taxes . . . 2-15 (Auditorium, Denver. Col., September 21, 1909.) 27. A Soft Answer Turneth Away Wrath, but Griev- ous Words Stir Up Anger .... 258 (Mormon Tabernacle, Salt Lake City, September 26, 1909.) 28. Young Men's Christian Association . . 268 (Salt Lake City, September 26, 1909.) 29. Conservation of National Resources . . 270 (Spokane, Washington, September 28, 1909.) 30. Alaska 281 (Alaska- Yukon-Pacific Exposition, Seattle, Washington, September 29, 1909.) viii CONTENTS 31. Alaska, Merchant Marine and Subsidy . (The Armory, Taconia, Washington, October 1, 1909.) 32. The Tariff, Income and Corporation Taxes (The Armory, Portland, Ore., October 2, 1909.) 33. St. Mary's Academy (Portland, Ore., October 3, 1909.) 34. Laying of Cornerstone of the Universalist Church (Irvington, Portland, Ore., October 3, 1909.) 35. Subsidy, Merchant Marine and Conservation of National Resources ..... (Hotel Fairmont, San Francisco, Cal., October 5, 1909.) 36. He Who Conquers Himself is Greater than He Who Taketh a City (Union Religious Service, City Hall Park, Fresno, Cal., October 10, 1909.) 37. Panama Canal and Merchant Marine (Banquet of Chamber of Commerce, Los Angeles, Cal., October 11, 1909.) 38. Missions (Glenwood Mission Inn, Riverside, Cal., October 12, 1909.) 39. Statehood ....... (City Hall, Phoenix, Arizona, October 13, 1909.) 40. Statehood ....... (Prescott, Arizona, October 13, 1909.) CONTENTS ix 41. Interview of President Taft with President Diaz of Mexico 360 (Chamber of Commerce Building, El Paso,Texas, and Federal Custom House, Juarez, Mexico, Oct. 16, 1909.) 42. Toast of President Diaz and Response of Pres- ident Taft .364 (Banquet at Custom House, Juarez, Mexico, Oct. 16, 1909.) 43. Dedication o Gift Chapel to U. S. Army . 366 (Fort Sam Houston, Texas, October 17, 1909.) 44. Conservation of National Resources and Water- ways ....... (Corpus Christi, Texas, October 22, 1909.) 45. Conservation of National Resources and Irri- gation ....... (Banquet by Citizens of Dallas, Texas, October 23, 1909.) 371 379 46. Conservation and Waterways . . . 385 (Coliseum, St. Louis, October 25, 1909.) 47. Waterways Convention ..... 390 (Athenaeum, New Orleans, La., October 30, 1909.) 48. Woman's Education 396 (State Institute and College, Columbus, Miss., November 2, 1909.) 49. The Development of the South , . . 399 (Banquet of Chamber of Commerce, Birmingham, Ala.. November 2, 1909.) 50. Wisdom and Necessity of Following the Law . 403 (State Fair Grounds, Macon, Ga., November 4, 1909.) CONTENTS 51. Trip of the President and Hospitality of the South ....... (Banquet tendered by the Citizens of Charleston, S. C, November 5, 1909.) 52. South Carolina and Her Traditions (Luncheon tendered by South Carolinians in the House of Representatives of the State Capitol, Columbia, S. C, November 6, 1909.) 53. Sanitation and Health of the South (Georgia-Carolina Fair, Augusta, Ga., November 8, 1909.) 54. A Review of Legislation to be Enacted by Con- gress ....... (Auditorium, Richmond, Va., November 10, 1909.) 55. Laymen's Missionary Movement . (Continental Memorial Hall, Washington, D. C, Novem- ber 11, 1909.) 56. Golden Jubilee Dedication of St. Aloysius Church ....... (Washington, D. C, November 14, 1909.) 57. Waterways ....... (Norfolk, Va., on the occasion of the Convention of the Atlantic Deeper Waterways Association, November 19, 1909.) 58. Industrial Education of the Negro . (Hampton Institute, Hampton, Va., November 20, 1909.) 59. Message to Congress at Opening of Second Session of the Sixty-first Congress (December 7, 1909.) CONTENTS xi PAGE 60. Sixth Annual Convention of the National Rivers and Harbors Congress .... 490 (New Willard Hotel, Washington, December 8, 1909.) 61. Ohio Valley Improvement Association . . 4-98 (White House, Washington, December 9, 1909.) 62. Lakes-to-the-Gulf Deep Waterways Association 501 (White House, Washington, December 9, 1909.) 63. Diamond Jubilee of Methodist Episcopal Mis- sions in Africa ...... 503 (Carnegie Hall, New York, December 13, 1909.) 64. New Bowery Mission . . • • .510 (New York City, December 13, 1909.) 65. Message to Congress on Interstate Commerce and Anti-Trust Law and Federal Incorporation 513 (January 7, 1910.) 66. Message to Congress on Conservation of National Resources ....... 537 (January 14, 1910.) 67. Uniformity of State Legislation . . . 549 (National Civic Federation, at Belasco Theatre, Wash- ington, January 17, 1910.) 68. Uniformity of State Legislation . . . 555 (Conference of Governors at White House, Washington, January 18, 1910.) 69. The Philippine Islands 559 (Banquet of the Washington Corral of the Military Order of the Carabao, New Willard Hotel, Washington, Jan- uary 22, 1910.) xii CONTENTS PAGE 70. The Republican Party's Promises . . . 568 (Lincoln Birthday Banquet of the Republican Club of the City of New York, February 12, 1910.) 71. Government Expenses and Economies . . 587 (Banquet of Board of Trade, Newark. N. J., February "23, 1910.) Index .... 599 Presidential Addresses and State Papers Presidential Addresses and State Papers i SPEECH OF ACCEPTANCE (DELIVERED AT CINCINNATI, OHIO, ON TUESDAY, JULY 28, 1908) Senator Warner and Gentlemen of tlie Committee: I AM deeply sensible of the honor which the Repub- lican National Convention has conferred on me in the nomination which you formally tender. I accept it with full appreciation of the responsibility it imposes. REPUBLICAN STRENGTH IN MAINTENANCE OF ROOSEVELT POLICIES Gentlemen, the strength of the Republican cause in the campaign at hand is in the fact that we represent the poli- cies essential to the reform of known abuses, to the con- tinuance of liberty and true prosperity, and that we are determined, as our platform unequivocally declares, to maintain them and carry them on. For more than ten years this country passed through an epoch of material development far beyond any that ever occurred in the world before. In its course, certain evils crept in. Some prominent and influential members of the community, spurred by financial success and in their hurry for greater wealth, became unmindful of the common rules of business 4 PRESIDENTIAL ADDRESSES honesty and fidelity and of the limitations imposed by law upon their action. This became known. The revelations of the breaches of trust, the disclosures as to rebates and dis- criminations by railways, the accumulating evidence of the violation of the anti-trust law by a number of corporations, the overissue of stocks and bonds on interstate railways for the unlawful enriching of directors and for the purpose of concentrating control of railways in one management, all quickened the conscience of the people, and brought on a moral awakening among them that boded well for the future of the country. The man who formulated the expression of the popular conscience and who led the movement for practical reform was Theodore Roosevelt. He laid down the doctrine that the rich violator of the law should be as amenable to restraint and punishment as the offender without wealth and without influence, and he proceeded by recommending legislation and directing executive action to make that prin- ciple good in actual performance. He secured the passage of the so-called rate bill, designed more effectively to restrain excessive and fix reasonable rates, and to punish secret rebates and discriminations which had been general in the practice of the railroads, [and which had done much to enable unlawful trusts to drive out of the business their competitors. It secured much closer supervision of rail- way transactions and brought within the operation of the same statute express companies, sleeping car companies, fast freight and refrigerator lines, terminal railroads and pipe lines, and in order to avoid undue discrimination, for- bade in future the combination of the transportation and shipping business under one control. President Roosevelt directed suits to be brought and prosecutions to be instituted under the anti-trust law, to enforce its provisions against the most powerful of the industrial corporations. He pressed to passage the pure food law and the meat inspection law in the interest of the health of the public, clean business methods and great ulti- AND STATE TAPERS 5 mate benefit to the trades themselves. He recommended the passage of a law, which the Republican Convention has since specifically approved, restricting the future issue of stocks and bonds by interstate railways to such as may be authorized by Federal authority. He demonstrated to the people by what he said, by what he recommended to Con- gress, and by what he did, the sincerity of his efforts to com- mand respect for the law, to secure equality of all before the law, and to save the country from dangers of a plutocratic government, toward which we were fast tending. In this work Mr. Roosevelt has had the support and sympathy of the Republican party, and its chief hope of success in the present controversy must rest on the confidence which the people of the country have in the sincerity of the party's declaration in its platform, that it intends to continue his policies. NECESSARY TO DEVISE SOME MEANS OF PERMANENTLY SECURING PROGRESS MADE Mr. Roosevelt has set high the standard of business morality and obedience to law. The railroad rate bill was more useful possibly in the immediate moral effect of its passage than even in the legal effect of its very useful pro- visions. From its enactment dates the voluntary abandon- ment of the practice of rebates and discriminations by the railroads and the return by their managers to obedience to law in the fixing of tariffs. The pure food and meat inspection laws and the prosecutions directed by the Presi- dent under the anti-trust law have had a similar moral effect in the general business community and have made it now the common practice for the great industrial corporations to consult the law with a view to keeping within its pro- visions. It has also had the effect of protecting and encour- aging smaller competitive companies so that they have been enabled lo do a profitable business. But we should be blind to the ordinarv working of human nature if we did not recognize that the moral standards 6 PRESIDENTIAL ADDRESSES set by President Roosevelt will not continue to be observed by those whom cupidity and a desire for financial power may tempt, unless the requisite machinery is introduced into the law which shall in its practical operation maintain these standards and secure the country against a departure from them. CHIEF FUNCTION OF NEXT ADMINISTRATION TO CLINCH WHAT HAS BEEN DONE The chief function of the next Administration, in my judgment, is distinct from, and a progressive development of, that which has been performed by President Roosevelt. The chief function of the next Administration is to complete and perfect the machinery by which these standards may be maintained, by which the lawbreak- ers may be promptly restrained and punished, but which shall operate with sufficient accuracy and dis- patch to interfere with legitimate business as little as possible. Such machinery is not now adequate. Under the present rate bill, and under all its amendments, the burden of the Interstate Commerce Commission in supervising and regulating the operation of the rail- roads of this country has grown so heavy that it is utterly impossible for that tribunal to hear and dispose of, in any reasonable time, the many complaints, queries and issues that are brought before it for decision. It ought to be relieved of its jurisdiction as an executive, directing body, and its functions should be limited to the quasi-judicial investigation of complaints made by indi- viduals and made by a department of the Government charged with the executive business of supervising the operation of railways. There should be a classification of that very small per- centage of industrial corporations having power and oppor- tunity to effect illegal restraints of trade and monopolies, and legislation either inducing or compelling them to subject themselves to registry and to proper publicity AND STATE PAPERS 7 regulations and supervision of the Department of Commerce and Labor. CONSTRUCTIVE WORK OF NEXT ADMINISTRATION TO ORGAN- IZE SUBORDINATE AND ANCILLARY MACHINERY TO MAINTAIN STANDARDS ON ONE HAND, AND NOT TO INTERFERE WITH BUSINESS ON THE OTHER The field covered by the industrial combinations and by the railroads is so very extensive that the interests of the public and the interests of the businesses concerned cannot be properly subserved except by reorganization of bureaus in the Department of Commerce and Labor, Agriculture, and Justice, and a change in the jurisdiction of the Interstate Commerce Commission. It does not assist matters to prescribe new duties for the Interstate Commerce Commission which it is practically impos- sible for it to perform, or to denounce new offenses with drastic punishment, unless subordinate and ancillary legis- lation shall be passed making possible the quick enforcement in the great variety of cases which are constantly arising, of the principles laid down by Mr. Roosevelt, and with respect to which only typical instances of prosecution with the present machinery are possible. Such legislation should and would greatly promote legitimate business by enabling those anxious to obey the Federal statutes to know just what are the bounds of their lawful action. The prac- tical constructive and difficult work, therefore, of those who follow Mr. Roosevelt is to devise the ways and means by which the high level of business integrity and obedience to law which he has established may be maintained and departures from it restrained without undue interference with legitimate business. RAILWAY TRAFFIC AGREEMENTS APPROVED BY COMMISSION SHOULD BE VALID It is agreeable to note in this regard that the Repub- lican platform expressly, and the Democratic platform impliedly, approve an amendment to the Interstate Com- 8 PRESIDENTIAL ADDRESSES merce Law, by which interstate railroads may make use- ful traffic agreements if approved by the Commission. This has been strongly recommended by President Roosevelt and will make for the benefit of the business. PHYSICAL VALUATION OF RAILWAYS Some of the suggestions of the Democratic platform relate really to this subordinate and ancillary machinery to which I have referred. Take for instance the so-called " physical valuation of railways." It is clear that the sum of all rates or receipts of a railway, less proper expenses, should be limited to a fair profit upon the reasonable value of its property, and that if the sum exceeds this measure, it ought to be reduced. The difficulty in enforcing the principle is in ascertaining what is the reasonable value of the company's property, and in fixing what is a fair profit. It is clear that the physical value of a railroad and its plant is an element to be given weight in determining its full value; but as President Roosevelt in his Indianapolis speech and the Supreme Court have in effect pointed out, the value of a railroad as a going concern, including its good will, due to efficiency of service and many other circum- stances, may be much greater than the value of its tangible property, and it is the former that measures the invest- ment on which a fair profit must be allowed. Then, too, the question, "What is a fair profit," is one involving not only the rate of interest usually earned on normally safe invest- ments, but also a sufficient allowance to make up for the risk of loss both of capital and interest in the original outlay. These considerations will have justified the company in imposing charges high enough to secure a fair income on the enterprise as a whole. The securities at market prices will have passed into the hands of subsequent purchasers from the original investors. Such circumstances should properly affect the decision of the tribunal engaged in deter- mining whether the totality of rates charged is reasonable or excessive. To ignore them might so seriously and unjustly AND STATE PAPERS 9 impair settled values as to destroy all hope of restoring confidence and forever to end the inducement for invest- ment in new railroad construction which, in returning prosperous times, is sure to be essential to our material progress. As Mr. Roosevelt has said in speaking of this very subject: "The effect of such valuation and supervision of securi- ties can not be retroactive. Existing securities should be tested by laws in existence at the time of their issue. This Nation would no more injure securities which have become an important part of the National wealth than it would consider a proposition to repudiate the National debt." The question of rates and the treatment of railways is one that has two sides. The shippers are certainly entitled to reasonable rates; but less is an injustice to the carriers. Good business for the railroads is essential to general pros- perity. Injustice to them is not alone injustice to stock- holders and capitalists, whose further investments may be necessary for the good of the whole country, but it directly affects and reduces the wages of railway employees, and indeed may deprive them of their places entirely. From what has been said, the proper conclusion would seem to be that in attempting to determine whether the entire schedule of rates of a railway is excessive, the physi- cal valuation of the road is a relevant and important but not necessarily a controlling factor. PHYSICAL VALUATION PROPERLY USED WILL NOT GENERALLY IMPAIR SECURITIES I am confident that the fixing of rates on the principles suggested above would not materially impair the present market values of railroad securities in most cases, for I believe that the normal increase in the value of railroad properties, especially in their terminals, will more than make up for the possible overcapitalization in earlier years. In some cases, doubtless, it will be found that overcapital- 10 PRESIDENTIAL ADDRESSES ization is made an excuse for excessive rates, and then they should be reduced; but the consensus of opinion seems to be that the railroad rates generally in this country are reasonably low. This is why, doubtless, the complaints filed with the Interstate Commerce Commission against excessive rates are so few as compared with those against unlawful discrimination in rates between shippers and between places. Of course, in the determination of the question whether discrimination is unlawful or not, the physical valuation of the whole road is of little weight. CONCLUSION THAT THERE SHOULD BE PHYSICAL VALUATION I have discussed this with some degree of detail, merely to point out that the valuation by the Interstate Commerce Commission of the tangible property of a railroad is proper and may from time to time be necessary in settling certain issues which may come before them, and that no evil or injustice can come from valuation in such cases, if it be under- stood that the result is to be used for a just purpose, and the right to a fair profit under all the circumstances of the investment is recognized. The Interstate Commerce Com- mission has now the power to ascertain the value of the physical railroad property, if necessary, in determining the reasonableness of rates. If the machinery for doing so is not adequate, as is probable, it should be made so. The Republican platform recommends legislation for- bidding the issue in the future of interstate railway stocks and bonds without Federal authority. It may occur in such cases that the full value of the railway, and, as an element thereof, the value of the tangible property of the railway, would be a relevant and important factor in assist- ing the proper authority to determine whether the stocks and bonds to be issued were to have proper security behind them, and in such case, therefore, there should be the right and machinery to make a valuation of the physical property. AND STATE PAPERS 11 NATIONAL CONTROL OF INTERSTATE COMMERCE CORPORATION Another suggestion in respect to subordinate and ancil- lary machinery necessary to carry out Republican policies is that of the incorporation under National law or the licensing by National license or enforced registry of companies engaged in interstate trade. The fact is that nearly all corporations doing a commercial business are engaged in interstate commerce, and if they all were required to take out a Federal license or a Federal charter, the burden upon the interstate business of the country would become intolerable. SHOULD BE LIMITED TO SMALL PERCENTAGE BY CLASSIFICATION It is necessary, therefore, to devise some means for clas- sifying and insuring Federal supervision of such corpora- tions as have the power and temptation to effect restraints of interstate trades and monopolies. Such corporations constitute a very small percentage of all engaged in inter- state business. mr. Roosevelt's proposed classification With such classification in view, Mr. Roosevelt recom- mended an amendment to the anti-trust law, known as the Hepburn Bill, which provided for voluntary classification, and created a strong motive therefor by granting immunity from prosecution for reasonable restraints of interstate trade to all corporations which would register and submit themselves to the publicity regulations of the Department of Commerce and Labor. THE DEMOCRATIC PROPOSED CLASSIFICATION The Democratic platform suggests a requirement that corporations in interstate trade having control of 25 per cent, of the products in which they deal shall take out a Federal license. This classification would probably include a great many small corporations engaged in the manu- 12 PRESIDENTIAL ADDRESSES facture of special articles, or commodities whose total value is so inconsiderable that they are not really within the pur- view or real evil of the anti-trust law. It is not now necessary, however, to discuss the relative merit of such propositions, but it is enough merely to affirm the necessity for some method by which greater executive supervision can be given to the Federal Government over those businesses in which there is a temptation to viola- tions of the anti-trust law. CONSTRUCTION OF ANTI-TRUST LAW POSSIBLE NECESSITY FOR AMENDMENT The possible operation of the anti-trust law under exist- ing rulings of the Supreme Court has given rise to sugges- tions for its necessary amendment to prevent its application to cases which it is believed were never in the contempla- tion of the framers of the statute. Take two instances: A merchant or manufacturer engaged in a legitimate busi- ness that covers certain states, wishes to sell his business and his good will, and so in the terms of the sale obligates himself to the purchaser not to go into the same business in those states. Such a restraint of trade has always been enforced at common law. Again, the employees of an interstate railway combine and enter upon a peaceable and lawful strike to secure better wages. At common law this was not a restraint of trade or commerce or a violation of the rights of the company or of the public. Neither case ought to be made a violation of the anti-trust law. My own impression is that the Supreme Court would hold that neither of these instances is within its inhibition, but, if they are to be so regarded, general legislation amending the law is necessary. DEMOCRATIC PLANK TO LIMIT CORPORATIONS TO OWNER- SHIP of 50 PER CENT. OF PLANT AND PRODUCT FAULTY The suggestion of the Democratic platform that trusts be ended by forbidding corporations to hold more than AND STATE PAPERS 13 50 per cent, of the plant in any line of manufacture is made without regard to the possibility of enforcement or the real evil in trusts. A corporation controlling 45 or 50 per cent, of the products may by well-known methods frequently effect monopoly and stamp out competition in a part of the country as completely as if it controlled 60 or 70 per cent, thereof. COMPULSORY SALE OF PRODUCTS AT FIXED PRICE IMPRACTICAL The proposal to compel every corporation to sell its com- modities at the same price the country over, allowing for transportation, is utterly impracticable. If it can be shown that in order to drive out competition, a corporation own- ing a large part of the plant producing an article is selling in one part of the country, where it has competitors, at a low and unprofitable price, and in another part of the country, where it has none, at an exorbitant price, this is evidence that it is attempting an unlawful monopoly, and justifies conviction under the anti-trust law; but the pro- posal to supervise the business of corporations in such a way as to fix the price of commodities and compel the sale at such price is as absurd and socialistic a plank as was ever inserted in a Democratic political platform. DIFFERENCE BETWEEN REPUBLICAN AND DEMOCRATIC POLICIES AND PLATFORMS: FORMER PROGRESSIVE AND regulative; LATTER RADICAL AND DESTRUCTIVE The chief difference between the Republican and the Democratic platforms is the difference which has hereto- fore been seen between the policies of Mr. Roosevelt and those which have been advocated by the Democratic candi- date, Mr. Bryan. Mr. Roosevelt's policies have been pro- gressive and regulative: Mr. Bryan's destructive. Mr. Roosevelt has favored regulation of the business in which evils have grown up so as to stamp out the evils and per- mit the business to continue. The tendency of Mr. Bryan's 14 PRESIDENTIAL ADDRESSES proposals has generally been destructive of the business with respect to which he is demanding reform. Mr. Roose- velt would compel the trusts to conduct their business in a lawful manner and secure the benefits of their operation and the maintenance of the prosperity of the country of which they are an important part; while Mr. Bryan would extirpate and destroy the entire business in order to stamp out the evils which they have practised. ADVANTAGE OF COMBINATION OF CAPITAL The combination of capital in large plants to manufac- ture goods with the greatest economy is just as necessary as the assembling of the parts of a machine to the economi- cal and more rapid manufacture of what in old times was made by hand. The Government should not interfere with one any more than the other, when such aggregations of capital are legitimate and are properly controlled, for they are then the natural results of modern enterprise and are beneficial to the public. In the proper operation of compe- tition the public will soon share with the manufacturer the advantage in economy of operation and lower prices. WHAT IS AN UNLAWFUL TRUST ? When, however, such combinations are not based on any economic principle, but are made merely for the purpose of controlling the market, to maintain or raise prices, restrict output and drive out competitors, the public derives no benefit and we have a monopoly. There must be some use by the company of the comparatively great size of its capital and plant and extent of its output, either to coerce persons to buy of it rather than of some competitor or to coerce those who would compete with it to give up their business. There must usually, in other words, be shown an element of duress in the conduct of its business toward the customers in the trade and its competitors before mere aggregation of capital or plant becomes an unlawful monopoly. It is perfectly conceivable that in the interest of AND STATE PAPERS 15 economy of production a great number of plants may be legitimately assembled under the ownership of one corpora- tion. It is important, therefore, that such large aggrega- tions of capital and combinations should be controlled so that the public may have the advantage of reasonable prices and that the avenues of enterprise may be kept open to the individual and the smaller corporation wishing to engage in business. MERE AGGREGATION OF CAPITAL NOT A VIOLATION OF ANTI-TRUST LAW In a country like this, where, in good times, there is an enormous floating capital awaiting investment, the period before which effective competition, by construction of new plants, can be introduced into any business, is compara- tively short, rarely exceeding a year, and is usually even less than that. Existence of actual plant is not, therefore, necessary to potential competition. Many enterprises have been organized on the theory that mere aggregation of all, or nearly all, existing plants in a line of manufacture, with- out regard to economy of production, destroys competition. They have, most of them, gone into bankruptcy. Com- petition in a profitable business will not be affected by the mere aggregation of many existing plants under one company, unless the company thereby effects great economy, the bene- fit of which it shares with the public, or takes some illegal method to avoid competition and to perpetuate a hold on the business. PROPER TREATMENT OF TRUSTS Unlawful trusts should be restrained with all the efficiency of injunctive process, and the persons engaged in main- taining them should be punished with all the severity of criminal prosecution, in order that the methods pursued in the operation of their business shall be brought within the law. To destroy them and to eliminate the wealth they represent from the producing capital of the country would 16 PRESIDENTIAL ADDRESSES entail enormous loss, and would throw out of employment myriads of workingmen and workingwomen. Such a result is wholly unnecessary to the accomplishment of the needed reform, and will inflict upon the innocent far greater punishment than upon the guilty. DESTRUCTIVE POLICY OF DEMOCRATIC PLATFORM The Democratic platform does not propose to destroy the plants of the trusts physically, but it proposes to do the same thing in a different way. The business of this country is largely dependent on a protective system of tariffs. The business done by many of the so-called " trusts " is protected with the other business of the country. The Democratic platform proposes to take off the tariff on all articles coming into competition with those produced by the so-called " trusts," and to put them on the free list. If such a course would be utterly destructive of their business, as is intended, it would not only destroy the trusts, but all of their smaller competitors. The ruthless and imprac- ticable character of the proposition grows plainer as its effects upon the whole community are realized. EFFECT OF DEMOCRATIC PLANS ON BUSINESS To take the course suggested by the Democratic platform in these matters is to involve the entire community, inno- cent as it is, in the punishment of the guilty, while our policy is to stamp out the specific evil. This difference between the policies of the two great parties is of especial impor- tance in view of the present condition of business. After ten years of the most remarkable material development and prosperity, there came a financial stringency, a panic and an industrial depression. This was brought about not only by the enormous expansion of business plants and business investments which could not be readily converted, but also by the waste of capital, in extravagance of living, in wars and other catastrophes. The free convertible capital was exhausted. In addition to this, the confidence AND STATE PAPERS 17 of the lending public in Europe and in this country had been affected by the revelations of irregularity, breaches of trust, overissues of stock, violations of law, and lack of rigid State or National supervision in the management of our largest corporations. Investors withheld what loanable capital remained available. It became impossible for the soundest railroads and other enterprises to borrow money enough for new construction or reconstruction. WILL DELAY RESTORATION OF PROSPERITY Gradually business is acquiring a healthier tone. Gradu- ally all wealth which was hoarded is coming out to be used. Confidence in security of business investments is a plant of slow growth and is absolutely necessary in order that our factories may all open again, in order that our unemployed may become employed, and in order that we may again have the prosperity which blessed us for ten years. The identity of the interests of the capitalist, the fanner, the business man and the wage-earner in the security and profit of investments cannot be loo greatly emphasized. I submit to those most interested, to wage-earners, to farmers, and to business men, whether the introduction into power of the Democratic party, with Mr. Bryan at its head, and with the business destruction that it openly advocates as a remedy for present evils, will bring about the needed confidence for the restoration of prosperity. REPUBLICAN' DOCTRINE OF PROTECTION The Republican doctrine of protection, as definitely announced by the Republican Convention of this year and by previous conventions, is that a tariff shall be imposed on all imported products, whether of the factory, farm or mine, sufficiently great to equal the difference between the cost of production abroad and at home, and that this difference should, of course, include the difference between the higher wages paid in this country and the wages paid abroad, and embrace a reasonable profit to the American producer. 18 PRESIDENTIAL ADDRESSES A system of protection thus adopted and put in force has led to the establishment of a rate of wages here that has greatly enhanced the standard of living of the laboring man. It is the policy of the Republican party permanently to continue that standard of living. In 1897 the Dingley Tariff Bill was passed, under which we have had, as already said, a period of enormous prosperity. NECESSITY FOR REVISION OF TARIFF The consequent material development has greatly changed the conditions under which many articles described by the schedules of the tariff are now produced. The tariff in a number of schedules exceeds the difference between the cost of production of such articles abroad and at home, including a reasonable profit to the American producer. The excess over that difference serves no useful purpose, but offers a temptation to those who would monopolize the production and the sale of such articles in this country, to profit by the excessive rate. On the other hand, there are some few other schedules in which the tariff is not sufficiently high to give the measure of protection which they should receive upon Republican principles, and as to those the tariff should be raised. A revision of the tariff undertaken upon this prin- ciple, which is at the basis of our present business system, begun promptly upon the incoming of the new admin- istration, and considered at a special session with the pre- liminary investigations already begun by the appropriate committees of the House and Senate, will make the dis- turbance of business incident to such a change as little as possible. DEMOCRATIC TARIFF PLAN AND ITS BAD EFFECT ON BUSINESS The Democratic party in its platform has not had the cour- age of its previous convictions on the subject of the tariff, denounced by it in 1904 as a system of the robbery of the many for the benefit of the few, but it does declare its inten- tion to change the tariff with a view to reaching a revenue AND STATE PAPERS 19 basis and thus to depart from the protective system. The introduction into power of a party with this avowed purpose can not but halt the gradual recovery from our recent finan- cial depression and produce business disaster compared with which our recent panic and depression will seem small indeed. THE FARMER AND THE REPUBLICAN PARTY As the Republican platform says, the welfare of the farmer is vital to that of the whole country. One of the strongest hopes of returning prosperity is based on the business which his crops are to afford. He is vitally inter- ested in the restraining of excessive and unduly discrimina- ting railroad rates, in the enforcement of the pure food laws, in the promotion of scientific agriculture, and in increas- ing the comforts of country life, as by the extension of free rural delivery. The policies of the present Administra- tion, which have most industriously promoted all these objects, can not fail to commend themselves to his approval; and it is difficult to see how with his intelligent appreciation of the threat to business prosperity involved in Democratic success at the polls he can do otherwise than give his full and hearty support to the continuation of the policies of the present Administration under Republican auspices. LABOR AND WHAT THE REPUBLICAN PARTY HAS DONE FOR IT We come now to the question of labor. One important phase of the policies of the present Administration has been an anxiety to secure for the wage-earner an equality of opportunity and such positive statutory protection as shall place him on a level in dealing with his employer. The Republican parly has passed an employers' liability act for interstate railroads, and has established an eight-hour law for government employees and on government con- struction. The essence of the reform effected by the former is the abolition of the fellow-servant rule, and the intro- 20 PRESIDENTIAL ADDRESSES duction of the comparative negligence theory by which an employee injured in the service of his employer does not lose all his right to recover because of slight negligence on his part. Then there is the act providing for compensation for injury to government employees, together with the various statutes requiring safety appliances upon interstate commerce railroads for the protection of their employees, and limiting the hours of their employment. These are all instances of the desire of the Republican party to do justice to the wage-earner. Doubtless a more comprehensive measure for compensation of government employees will be adopted in the future; the principle in such cases has been recog- nized, and in the necessarily somewhat slow course of legis- lation will be more fully embodied in definite statutes. INTERESTS OF EMPLOYER AND EMPLOYEE ONLY DIFFER IN RESPECT TO TERMS OF EMPLOYMENT The interests of the employer and the employee never differ except when it comes to a division of the joint profit of labor and capital into dividends and wages. This must be a constant source of periodical discussion between the employer and the employee, as indeed are the other terms of the employment. ADVANTAGE OF UNION To give to employees their proper position in such a con- troversy, to enable them to maintain themselves against employers having great capital, they may well unite, because in union there is strength and without it each indi- vidual laborer and employee would be helpless. The promotion of industrial peace through the instrumentality of the trade agreement is often one of the results of such union when intelligently conducted. OTHER LABOR There is a large body of laborers, however, skilled and unskilled, who are not organized into unions. Their rights AND STATE PAPERS 21 before the law are exactly the same as those of the union men, and are to be protected with the same care and watch- fulness. RIGHTS OF LABOR In order to induce their employer into a compliance with their request for changed terms of employment, workmen have a right to strike in a body. They have a right to use such persuasion as they may, provided it does not reach the point of duress, to lead their reluctant co-laborers to join them in their union against their employer, and they have a right, if they choose, to accumulate funds to support those engaged in a strike, to delegate to officers the power to direct the action of the union, and to withdraw themselves and their associates from dealings with, or giving custom to, those with whom they are in controversy. WHAT LABOR CAN NOT LAWFULLY DO What they have not the right to do is to injure their employer's property, to injure their employer's business by use of threats or methods of physical duress against those who would work for him, or deal with him, or by carrying on what is sometimes known as a secondary boycott against his customers or those witli whom he deals in business. All those who sympathize with them may unite to aid them in their struggle, but they may not through the instrumen- tality of a threatened or actual boycott compel third persons against their will and having no interest in their controversy to come to their assistance. These principles have for a great many years been settled by the courts of this country. Threatened unlawful injuries to business, like those described above, can only be adequately remedied by an injunction to prevent them. The jurisdiction of a court of equity to enjoin in such cases arises from the character of the injury and the method of inflicting it and the fact that suit for damages offers no adequate remedy. The unlaw- ful injury is not usually done by one single act, which might 22 PRESIDENTIAL ADDRESSES be adequately compensated for in damages by a suit at law, but it is the result of a constantly recurring series of acts, each of which in itself might not constitute a substan- tial injury or make a suit at law worth while, and all of which would require a multiplicity of suits at law. Injuries of this class have since the foundation of courts of equity been prevented by injunction. It has been claimed that injunctions do not issue to pro- tect anything but property rights, and that business is not a property right; but such a proposition is wholly incon- sistent with all the decisions of the courts. The Supreme Court of the United States says that the injunction is a remedy to protect property or rights of a pecuniary nature, and we may well submit to the considerate judgment of all laymen whether the right of a man in his business is not as distinctly a right of a pecuniary nature as the right to his horse or his house or the stock of goods on his shelf; and the instances in which injunctions to protect business have been upheld by all courts are so many that it is futile further to discuss the proposition. It is difficult to tell the meaning of the Democratic plat- form upon this subject. It says: "Questions of judicial practice have arisen especially in connection with industrial disputes. We deem that the par- ties to all judicial proceedings should be treated with rigid impartiality, and that injunctions should not be issued in any cases in which injunctions would not issue if no indus- trial dispute were involved." This declaration is disingenuous. It seems to have been loosely drawn with the especial purpose of rendering it susceptible to one interpretation by one set of men and to a diametrically opposite interpretation by another. It does not aver that injunctions should not issue in industrial disputes, but only that they should not issue merely because they are industrial disputes, and yet those responsible for the declaration must have known that no one has ever AND STATE PAPERS 23 maintained that the fact that a dispute was industrial gave any basis for issuing an injunction in reference thereto. The declaration seems to be drawn in its present vague and ambiguous shape in order to persuade some people that it is a declaration against the issuing of injunctions in any industrial dispute, while at the same time it may be possible to explain to the average plain citizen who objects to class distinction that no such intention exists at all. Our position is clear and unequivocal. We are anxious to prevent even an appearance of any injustice to labor in the issuance of injunctions, not in a spirit of favoritism to one set of our fellow citizens, but of justice to all of our fellow citizens. The reason for exercising or refusing to exercise the power of injunction must be found in the character of the unlawful injury and not in the charac- ter or class of the persons who inflicl this injury. The man who has a business which is being unlawfully injured is entitled to the remedies which the law has always given him. no matter who has inflicted the injuries. Other- wise, we shall have class legislation unjust in principle and likely to sap the foundations of a free government. NOTICE AND HEARING BEFORE ISSUE OF INJUNCTION I come now to the question of notice before issuing an injunction. It is a fundamental rule of general jurispru- dence that no man shall be affected by a judicial proceeding without notice and hearing. This rule, however, has some- times had an exception in the issuing of temporary restraining orders commanding a defendant in effect to maintain the status until a hearing. Such a process should issue only in rare cases where the threatened change of the status quo would inflict irreparable injury if time were taken to give notice and a summary hearing. The unlawful injury usual in industrial disputes, such as I have described, does not become formidable except after sufficient time in which lo trive the defendants notice and a hearing. I do not mean to say that there may not be cases even in indus- U PRESIDENTIAL ADDRESSES trial disputes where a restraining order might properly be issued without notice, but, generally, I think it is otherwise. In some State courts, and in fewer Federal courts, the prac- tice of issuing a temporary restraining order without notice, merely to preserve the status quo on the theory that it will not hurt anybody, has been too common. Many of us recall that the practice has been pursued in other than industrial disputes, as, for instance, in corporate and stock controversies like those over the Erie Railroad, in which a stay order without notice was regarded as a step of great advantage to the one who secured it, and a corresponding disadvan- tage to the one against whom it was secured. Indeed, the chances of doing injustice on an ex parte application are much increased over those when a hearing is granted, and there may be circumstances under which it may affect the defendant to his detriment. In the case of a lawful strike, the sending of a formidable document restraining a number of defendants from doing a great many different things which the plaintiff avers they are threatening to do, often so discourages men always reluctant to go into a strike from continuing what is their lawful right. This has made the laboring man feel that an injustice is done in the issuing of a writ without notice. I conceive that in the treatment of this question it is the duty of the citizen and the legis- lator to view the subject from the standpoint of the man who believes himself to be unjustly treated, as well as from that of the community at large. I have suggested the remedy of returning in such cases to the original practice under the old statute of the United States and the rules in equity adopted by the Supreme Court, which did not permit the issuing of an injunction without notice. In this respect, the Republican Convention has adopted another remedy, that, without going so far, promises to be efficacious in securing proper consideration in such cases by courts, by formulating into a legislative act the best present practice. Under this recommendation, a statute may be framed which shall define with considerable particularity, and VXD STATE PAPERS 25 emphasize the exceptional character of the cases in which restraining orders may issue without notice, and which shall also provide that when they are issued, they shall cease to he operative beyond a short period, during which time notice shall he served and a hearing had unless the defendant desires a postponement of the hearing. By this provision the injustice which has sometimes occurred by which a preliminary restraining order of widest application has been issued without notice, and the hearing of the motion for the injunction has been fixed weeks and months after its date, could not recur. SMALL NUMBER OF CASES FURNISH GROUNDS FOR COMPLAINT The number of instances in which restraining orders without notice in industrial disputes have issued by federal courts is small, and it is urged that they do not therefore constitute an evil to be remedied by statutory amendment. The small number of cases complained of above shows the careful manner in which most Federal judges have exercised the jurisdiction, but the belief that such cases are numerous has been so widespread and has aroused such feeling of injustice that more definite specification in pro- cedure lo prevent recurrence of them is justified if it can be effected without injury to the administration of the law. \o PROVISION I\ DEMOCRATIC PLATFORM AS to NOTICE With respect to notice, the Democratic platform contains no recommendation. Its only intelligible declaration in regard to injunction suits is a reiteration of the plank in the platforms of 1S!)(> and 1904 providing that in prosecutions for contempl in Federal courts, where the violation of the order constituting the contempt charged is indirect, i.e., outside of the presence of the court, there shall be a jury trial. DANGEROUS ATTACK ON POWER OF COURTS This provision in the platform of 189G was regarded then as a most dangerous attack upon the power of the courts 26 PRESIDENTIAL ADDRESSES to enforce their orders and decrees, and it was one of the chief reasons for the defeat of the Democratic party in that contest, as it ought to have been. The extended operation of such provision to weaken the power of the courts in the enforcement of its lawful orders can hardly be overstated. EFFECT OF JURY TRIAL Under such a provision a recalcitrant witness who refuses to obey a subpoena may insist on a jury trial before the court can determine that he received the subpcena. A citizen summoned as a juror and refusing to obey the writ when brought into court must be tried by another jury to deter- mine whether he got the summons. Such a provision applies not alone to injunctions, but to every order which the court issues against persons. A suit may be tried in the court of first instance and carried to the Court of Appeals, and thence to the Supreme Court, and a judgment and decree entered and an order issued, and then if the decree involves the defendant's doing anything or not doing anything, and he disobeys it, the plaintiff who has pursued his remedies in lawful course for years must, to secure his rights, undergo the uncertainties and the delays of a jury trial before he can enjoy that which is his right by the decision of the highest court of the land. I say without hesitation that such a change will greatly impair the indispensable power and authority of the courts. In securing to the public the benefits of the new statutes enacted in the present Administration, the ulti- mate instrumentality to be resorted to is the courts of the United States. If now their authority is to be weakened in a manner never known in the history of the jurisprudence of England or America, except in the constitution of Okla- homa, how can we expect that such statutes will have efficient enforcement? Those who advocate this intervention of a jury in such cases seem to suppose tliat this change in some way will inure only to the benefit of the poor workingman. As a matter of fact, the person who will secure chief ad- vantage from it is the wealthy and unscrupulous defendant, AND STATE PAPERS 27 able to employ astute and cunning counsel and anxious to avoid justice I have been willing, in order to avoid a popular bill unfounded impression that a judge, in punishing for con- tempt of his own order, may be affected by personal feeling, to approve a law which should enable the contemnor upon his application to have another judge sit to hear the charge of contempt, but this, with so many judges as there are available in the Federal court, would not constitute a delay in the enforcement of the process. The character and effi- ciency of the trial would be the same. It is the nature and the delay of a jury trial in such cases that those who would wish to defy the order of the court would rely upon as a reason for doing so. MAINTENANCE OF FULL POWEB OF COURTS NECESSARY TO Wulli \\ \l(( II V The administration of justice lies at the foundation <>f government. The maintenance of authority of the courts is essential unless we are prepared to embrace anar< Never in the history of the country has there been such an insidious attack upon the judicial system as the proposal to interject a jury trial between all orders of the court made after full hearing and the enforcement of such orders. THE CURRENCY s> SI EM The late panic disclosed a lack of elasticity in our finan- cial system. This has been provisionally met by an act of the present Congress permitting the issue of additional emergency bank notes, and insuring their withdrawal when the emergency has passed, by a high rate of taxation. It is drawn in conformity with the present system of bank- note currency but varies from it in certain respects by authorizing the use of commercial paper and bonds of good credit, as well as United States bonds, as security for its redemption. It is expressly but a temporary measure and 28 PRESIDENTIAL ADDRESSES contains a provision for the appointment of a currency commission to devise and recommend a new and reformed system of currency. This inadequacy of our present cur- rency system, due to changed conditions and enormous expansion, is generally recognized. The Republican plat- form well states that we must have a "more elastic and adaptable system to meet the requirements of agriculturists, manufacturers, merchants and business men generally, which must be automatic in operation, recognizing the fluc- tuations in interest rates," in which every dollar shall be as good as gold, and which shall prevent rather than aid financial stringency in bringing on a panic. POSTAL SAVINGS BANK AND ITS ADVANTAGES In addition to this, the Republican platform recommends the adoption of a postal - savings - bank system in which, of course, the Government would become responsible to the depositors for the payment of principal and inter- est. It is thought that the government guaranty will bring out of hoarding - places much money which may be turned into wealth-producing capital, and that it will be a great incentive for thrift in the many small places in the country having now no savings-bank facili- ties, which are reached by the Post Office Department. It will bring to every one, however remote from finan- cial centers, a place of perfect safety for deposits, with interest return. The bill now pending in Congress, which of course the Republican Convention had in mind, pro- vides for the investment of the money deposited in Na- tional banks in the very places in which it is gathered, or as near thereto as may be practicable. This is an answer to the criticism contained in the Democratic plat- form that under the system the money gathered in the country will be deposited in Wall Street banks. The system of postal savings banks has been tried in so many countries successfully that it cannot be regarded longer as a new and untried experiment. AND STATE PAPERS 29 OBJECTIONS TO DEMOCRATIC PROPOSAL TO ENFOR< I. [NSUR- ANCE OF BANK DEPOSITS The Democratic platform recommends a tax upon National banks and upon such State hanks as may come in, in the nature of enforced insurance, to raise a guaranty fund to pay the depositors of any hank which fails. How State banks can be included in such a scheme under the Constitution is left in the twilighl zone of Stale's rights and Federalism so frequently dimming the meaning and pur- pose of the promises of the platform. If they come in under such a system, they must necessarily he brought within the closest National control, and so they must really cease to be State banks and become National banks. The proposition is to tax the honesl and prudent banker to make up for the dishonesty and imprudence of others. No one can foresee the burden which under this system would be imposed upon the sound and conservative bankers of the country by this obligation to make good the losses caused by the reckless, speculative ami dishonest men who would be enabled to -cine deposits under such a system on the faith of the proposed insurance; as in its present shape tin* proposal would remove .ill safeguards against recklessness in banking, and the chief, and in the end prob- ably the only benefit, would accrue to the speculator, who would be delighted to enter the banking business when it was certain that he could enjoy any profit that would accrue, while the risk would have to be assumed by his honesl and hard-working fellow. In short, the proposal is wholly impracticable unless it is to be accompanied by a complete revolution in our banking system, with a supervision so close as practically to create a government bank. If the proposal were adopted exactly as the Democratic platform suggests, it would bring the whole banking system of the country down in ruin, and this proposal is itself an excellent illustration of the fitness for National control of a party which will commit itself to a scheme of this nature without 30 PRESIDENTIAL ADDRESSES the slightest sense of responsibility for the practical opera- 1 tion of the law proposed. POSTAL SAVINGS BANKS MUCH TO BE PREFERRED The Democratic party announces its adhesion to this plan, and only recommends the tried system of postal sav- ings banks as an alternative if the new experimental panacea is not available. The Republican party prefers the postal savings bank as one tried, safe, and known to be effective, and as reaching many more people now without banking facilities than the new system proposed. VOLUNTARY PLAN FOR GUARANTY A plan for guaranty of deposits by the voluntary act of the banks involved has been favorably reported to the House of Representatives. This is, of course, entirely different from the scheme in the Democratic platform, omitting, as it does, the feature of compulsory participation. This proposition will unquestionably receive the thoughtful consideration of the National Monetary Commission. REPUBLICAN POLICIES AS TO DEPENDENCIES The Republican party has pursued consistently the policy originally adopted with respect to the dependencies which came to us as the result of the Spanish war. PORTO RICO The material prosperity of Porto Rico and the progress of its inhabitants toward better conditions in respect to comfort of living and education, should make every Ameri- can proud that this nation has been an efficient instrument in bringing happiness to a million people. CUBA In Cuba, the provisional government established in order to prevent a bloody revolution has so administered affairs AND STATE PAPERS 31 and initiated the necessary laws as to make it possible to turn back the island to the lawfully elected officers of the Republic in February next. PHILIPPINES In the Philippines the experiment of a national assembly has justified itself, both as an assistance in the government of the islands and as an education in the practice of self- government to the people of the islands. We have estab- lished a government with effective and honest executive departments, and a clean and fearless administration of justice; we have created and are maintaining a compre- hensive school system which is educating the youth of the islands in English and in industrial branches; we have constructed great governmenl public works, roads and har- bors; we have induced the private construction of eight hundred miles of railroad; we have policed the islands so that their condition as to law and order is better now than it ever has been in their history. It is quite unlikely that the people, because of the dense ignorance of 90 per cent., will be ready for complete self-government and indepen- dence before two generations have passed, but the policy of increasing partial self-governmenl step by step as the people shall show themselves lit for it should be continued. PROPOSITION OF DEMOCRATIC PLATFORM MEANS CHAOS The proposition of the Democratic platform is to turn over the islands as soon as a stable governmenl is estab- lished. This has been established. The proposal then is in effect to turn them over at once. Such action will lead to ultimate chaos in the islands and the progress among the ignorant masses in education and better living will slop. We are engaged in the Philippines in a great missionary work that does our nation honor, and is certain to pro- mote in a most effective way the influence of Christian civilization. It is cowardly to lay down the burden until our purpose is achieved. 32 PRESIDENTIAL ADDRESSES HOPE OF PROSPERITY IN CHANGE IN TARIFF RECOMMENDED BY REPUBLICAN PLATFORM Many unfortunate circumstances beyond human control have delayed the coming of business prosperity to the islands. Much may be done in this regard by increasing the trade between the islands and the United States, under tariff laws permitting reciprocal free trade in the respective products of the two countries, with such limitations as to sugar and tobacco imported into the United States as will protect domestic interests. The admission of 350,000 tons of sugar from the Philippine Islands in a foreign importa- tion of 1,600,000 tons, will have no effect whatever upon the domestic sugar interests of the United States, and yet such an importation from the Philippine Islands, not likely to be reached in ten years, will bring about the normal state of prosperity in these islands in reference to sugar culture. The same thing is true of a similar limitation on the importation of tobacco. It is not well for the Philippines to develop the sugar industry to such a point that the busi- ness of the islands shall be absorbed in it, because it makes a society in which there are wealthy landowners, holding very large estates, with valuable and expensive plants, and a large population of unskilled labor. In such a com- munity there is no farming or middle class tending to build up a conservative, self-respecting community, capable of self-government. There are many other prod- ucts, notably that of Manila hemp, to which the energy of the islands can be, and is being, directed, the culti- vation of which develops the class of small and intelligent farmers. MISCONCEPTION AS TO ANNUAL COST OF PHILIPPINES One misconception of fact with respect to our Philippine policy is that it is costing the people of the United States a vast annual sum. The expenses of the war in the Philip- AND STATE PAPERS 33 pines from 1898 to 1902 involved the Government in an expenditure of less than $175,000,000. This was incident to war. The fact is that since the close of the war in 1902 and the restoration of order in the islands, the extra cost of the American troops of the regular army in the islands, together with that of maintaining about 4,000 Philippine scouts as a part of the regular army, does not exceed $6,000,000 annually. This is all the expense to which the United States has been put for five or six years la ^t past. The expenses of the Civil Government in the islands since its establishment bave been mel entirely from the proceeds of taxes collected in the islands, with but one notably gener- ous and commendable exception when the Congress of the United Stales appropriated $3,000,000 in 1902 to relieve the inhabitants of the islands from the dangers of famine and distress caused by the death from rinderpest of three- fourths of the cattle of the islands. VETERANS OF COUNTRY'S WARS Both platforms declare, as they should, in favor of generous pensions for the veterans of the Civil and Spanish wars. I stop to note the presence here of a body of vet- erans of Ohio, and to express my thanks for the honor they do me in coming. I am lacking in one qualification of all Republican Presidents since Lincoln, thai of having been exposed to danger and death on the held of battle in defense of our country. I hope that this lack will not make the veterans think I am any le^s deeply thrilled by the memory of their great comrades gone before — Grant. Hayes, Garfield, Harrison and McKinley — all sons of Ohio, who left records reflecting glory upon their State and Nation, or that my sympathies with the valor and courage and patriotism of those who faced death in the country's crises are any less earnest and sincere than they would be had I the right to wear a button of the Grand Army or of the veteran association of any of our country's wars. 34 PRESIDENTIAL ADDRESSES THE RIGHTS AND PROGRESS OF THE NEGRO The Republican platform refers to the amendments to the Constitution that were passed by the Republican party for the protection of the Negro. The Negro, in the forty years since he was freed from slavery, has made remarkable progress. He is becoming a more and more valuable member of the communities in which he lives. The education of the Negro is being expanded and improved in every way. The best men of both races, at the North as well as at the South, ought to rejoice to see growing up among the Southern people an influential element disposed to encourage the Negro in his hard struggle for industrial independence and assured political status. The Repub- lican platform, adopted at Chicago, explicitly demands justice for all men without regard to race or color, and just as explicitly declares for the enforcement, and without reservation, in letter and spirit, of the Thirteenth, Four- teenth and Fifteenth Amendments to the Constitution. It is needless to state that I stand with my party squarely on that plank in the platform, and believe that equal justice to all men, and the fair and impartial enforcement of these amendments is in keeping with the real American spirit of fair play. ARMY AND NAVY Mr. McKinley and Mr. Roosevelt, and the Republican party, have constantly advocated a policy with respect to the Army and Navy that will keep this Republic ready at all times to defend her territory and her doctrines, and to assure her appropriate part in promoting permanent tran- quillity among the nations. I welcome from whatever motive the change in the Democratic attitude toward the main- tenance and support of an adequate Navy, and hope that in the next platform the silence of the present platform, in respect to the Army, will be changed to an acquiescence in its maintenance to the point of efficiency in connection AND STATE PAPERS 35 with the efficiently reorganized militia and the National volunteers, for the proper defense of the country in time of war, and the discharge of those duties in time of peace for which the Army, as at present constituted. has shown itself so admirably adapted in the Philippines, in San Francisco, in Cuba, and elsewhere. We arc a world power and cannot help it, and, although at peace with all the world and secure in the consciousness that the American people do not desire and will not provoke a war with any other country, we must be prudent and not be lulled into a -ruse of security which would possibly expose us to national humiliation. Our best course, therefore, is to insist on a constant improvement in our navy and its maintenance at the highest point of efficiency. PROTECTION OF CITIZENS ABROAD The position which our country has won under Repub- lican administrations before the world should inure to the benefil of every our. even the humblest of those entitled to look to the American Hag for protection, without regard to race, creed or color, and whether he is a citizen of the United Stales or of any of our dependencies. In some countries with which we are on friendly terms, distinctions are made in respect to the treatmenl of our citizens travelling abroad and having passports of our Executive, based on considerations that are repugnant to the principles of our Government and civilization. The Republican party ami administration will continue to make every proper endeavor to secure the abolition of such distinctions, which in our eyes arc both needless and opprobrious. \>l VI'IC LMMIGK \T1<>\ In the matter of the limitation upon Asiatic immigration, referred to in the Democratic platform, it is sufficient to say that the present Republican Administration has shown itself able, by diplomatic negotiation, and without unnec- essary friction with self-respecting governments to minimize 36 PRESIDENTIAL ADDRESSES the evils suggested, and a subsequent Republican Adminis- tration may be counted on to continue the same policy. CONSERVATION OF NATIONAL RESOURCES The conservation of National resources is a subject to which the present Administration has given especial atten- tion. The necessity for a comprehensive and systematic improvement of our waterways, the preservation of our soil, and of our forests, the securing from private appropriation the power in the navigable streams, the retention of the undisposed-of coal lands of the Government from alienation, all will properly claim from the next Administration earnest attention and appropriate legislation. NATIONAL HEALTH BUREAU I have long been of the opinion that the various agencies of the National Government established for the preserva- tion of the National health, scattered through several depart- ments, should be rendered more efficient by uniting them in a bureau of the Government under a competent head, and that I understand to be, in effect, the recommendation of both parties. PUBLICITY OF CAMPAIGN CONTRIBUTIONS AND EXPENDITURES Another plank of the Democratic platform refers to the failure of the Republican Convention to express an opinion in favor of the publicity of contributions received and expen- ditures made in elections. Here again we contrast our opponents' promises with our own acts. Great improve- ment has taken place under Republican auspices in respect to the collection and expenditure of money for this purpose. The old and pernicious system of levying a tax on the salaries of Government employees in order to pay the expenses of the party in control of the Administration has been abolished by statute. By a law passed by the Republican Congress in 1907, contributions from corporations to influence or AND STATE PAPERS 37 pay the expenses connected with the election of presidential electors or of members of Congress, is forbidden under penalty. A resident of New York has been selected as treasurer of the Republican National Committee, who was treasurer of the Republican State Committee when Governor Hughes was elected in New York, and who made a complete state- ment within twenty days after the election, as required by the New York law, of the contributions received by him and the expenditures made by him or under his authority in connection with that election. His residence and the discharge of his duties in the State of New York subject him to the law of that Slate as to all receipts of the treasury of the National Committee from whatever source, and as to .ill its disbursements. His returns will be under the obligations and penalties of the law. and a misstatement by him or the tiling of a false account will subject hini to prosecution for perjury and violation of the statute. Of course, under the Federal law. he is not permitted to receive any contributions from corporations. If I am elected President. I shall urge upon Congress, with every hope of success, that a law be passed requiring the filing in a Federal office of a statemenl of the contribu- tions received by committees and candidates in elections for members of Congress, and in such other elections as are constitutionally within the control of Congress. Mean- time the Republican party by the selection of a New York treasurer has subjected all its receipts and expenditures to the compulsory obligation of such a law. INCOME l W The Democratic platform demands two constitutional amendments, one providing for an income tax, and the other for the election of Senators by the people. In my judgment, an amendment to the Constitution for an income tax is not necessary. I believe that an income tax. when the protective system of customs and the internal revenue 38 PRESIDENTIAL ADDRESSES tax shall not furnish income enough for governmental needs, can and should be devised which under the de- cisions of the Supreme Court will conform to the Con- stitution. ELECTION OF SENATORS With respect to the election of Senators by the people, personally I am inclined to favor it, but it is hardly a party question. A resolution in its favor has passed a Repub- lican House of Representatives several times and has been rejected in a Republican Senate by the votes of Senators from both parties. It has been approved by the Legis- latures of many Republican States. In a number of States, both Democratic and Republican, substantially such a system now prevails. INACCURACY AND INSINCERITY OF DEMOCRATIC CHARGES OF EXTRAVAGANCE IN INCREASE OF OFFICES AND EXPENDITURES Our opponents denounce the Republican party for increasing the number of offices 23,000, at a cost of sixteen millions of dollars, during the last year. Such denuncia- tion is characteristic of the Democratic platform. It fails to specify in any way what the offices are, and leaves the inference that the increase was resisted by the representa- tives of Democracy in Congress. As a matter of fact, the net number of offices increased was just about half the number stated; the increase was due chiefly to the enlarge- ment of the Navy, the construction of the Panama Canal, the extension of the Rural Free Delivery, and to the new offices necessary in the enforcement of the pure food, meat inspection, railroad rate regulation, arid land reclamation, forest preservation and other measures which Congress passed with almost unanimous popular approval. The Democratic platform so far from attacking any of this legislation specifically approves much, and condemns none of it, and it is of course disingenuous to claim credit for AND STATE PAPERS 39 approving legislation and yet to denounce the expenditures necessary to give it effect. CHARGE OF DEFICIT Again, it charges that a deficit of sixty millions of dol- lars between the receipts and expenditures during the fiscal year ending June 30, 1908, occurred. As explained by the Secretary of the Treasury, at least half of this deficit is only an apparent one. The falling off in receipts was, of course, occasioned by the unusual panic, but there is ample free money in the Treasury to meet the difference, and the difference itself is not half of it properly a deficit, because involved in it was the retirement of some thirty-three mil- lions of the bonds of the Government. During the pasl seven years the income and expendi- tures of the Government have been nearly equal, some years showing a surplus, and others, fewer in number, a deficit. Taking one year with another, including this year, there has been an average surplus. The surplus last year, for instance, was greater than the deficit this year, so that, in fact, under the present administration there has been no deficit, but a surplus, which is actually in the Treasury. The Democratic platform nowhere points out the expen- ditures which might be reduced <>r avoided. It would be found generally that to the increases which have occurred. Democratic representatives in Congress made no opposi- tion, but rather supported the measures providing them, and now the party has not the courage to indicate what part of Governmenl cost it would end. It joins the Republican party specifically in approving the outlay of $150, ()()(), ()()<» as pensions. It expressly favors also the cost of greatly increased River and Harbor improvements, the cost of doubling the Navy, and of many other enter- prises to which it urges the Government. Its attack, there- fore, has nothing in it either of fairness or sincerity. The truth is that it is known of all fair-minded men that there never has been an administration in the Govern- 40 PRESIDENTIAL ADDRESSES ment more efficiently conducted, more free from scandal, and in which the standard of official duty has been set higher than in the present Republican Administration, which the Democratic platform has thus denounced. It has had to meet the problems arising from the enormous expansion of Government functions under the new legislative measures as well as in the new dependencies, and in the greatest constructive work of modern times, the Panama Canal, and its members may well feel a just pride in the exceptional record for efficiency, economy, honesty and fidelity which it has made. We may rely upon our record in this regard in an appeal to the American people for their approval. The foreign policy of this country under the present x\dministration has greatly contributed to the peace of the world. The important part the Administration took in bringing about an end of the Russian-Japanese War by a treaty honorable to both parties, and the prevention of wars in Central America and Cuba are striking instances of this. The arbitration treaties signed with all the important nations of the world mark a great step forward in the devel- opment of the usefulness of The Hague tribunal. The visit of Secretary Root to South America emphasized our friendship for our sister republics which are making such strides in the southern hemisphere, and met with a most cordial and gratifying response from our Latin-American colleagues. The assistance which we are rendering in Santo Domingo to enable that Government to meet its obliga- tions and avoid anarchy is another instance of successful work of this Administration in helping our neighbors. This Administration has by the promptness, skill and energy of its negotiations secured dominion in the Canal Zone of the Isthmus of Panama, without which the con- struction of the canal would have been impossible. It has subdued the heretofore insurmountable obstacle of dis- ease and made the place of work healthy. It has created such an organization that in six years certainly, and prob- ably in less, the Atlantic and Pacific will be united, to the AND STATE TAPERS 41 everlasting benefit of the world's commerce, and the effec- tiveness of our Navy will he doubled. The mere statement of the things actually done by this Administration at home, in our dependencies, and in foreign affairs shows a marvel of successful accomplishment, and if ever a party has entitled itself to the approval of its works by a renewed mandate of power from the people whom it served, it is the Republican party in the present campaign. The only respect in which nothing has been done is in the development of our foreign marine. As long as we uphold the system of protection for our home industries we must recognize that it is ineffectual t<> assist those of our citizens engaged in the foreign shipping business, because there is no feasible means of excluding foreign competition, and that the only other method of building up such a busi- ness is by direct aid in the form of a mail subsidy. I am in favor of the hill considered in the lasl Congress as a tenta- tive step. The establishment of direct steamship lines between our Atlantic ports and South America would cer- tainly do much to develop a trade that might lie made far greater. On the Pacific, the whole shipping trade threatens to pass into the control of Japan, Something ought to be done, and the hill which failed was a step in the right direc- tion. INDEPENDENT DEM< ICRATS The Democratic party under its present leadership in previous campaigns has manifested a willingness to embrace any doctrine which would win votes, with little sense of responsibility for its practical operation. In its striving for success it has ignored the business prosperity of the country, has departed from sound economic and governmental principles, and has reversed its own traditional views of constitutional construction. Patriotic members of the party have refused to lie controlled by parly ties, and have either refrained from voting or have supported the Republican candidate. May we not appeal to these 42 PRESIDENTIAL ADDRESSES courageous and independent citizens again to give us their support in this campaign, because the reasons for their breaking the bonds of party are stronger to-day than ever before ? LENGTH OF SPEECH MADE NECESSARY BY NUMEROUS ISSUES I have now reviewed at great length the principles at issue between the two parties. When I began the prepara- tion of this speech of acceptance I had hoped to make it much briefer than it is, but I found on an examination of the platform and on a consideration of the many measures passed during the present Administration and the issues arising out of them, that it was impossible to deal with the subjects comprehensively with proper explanation and qualification in a short discussion. This is my excuse. DIFFERENCE BETWEEN PARTIES! PROSPERITY WITH REPUB- LICAN SUCCESS; BUSINESS DISASTER WITH DEMOCRATIC VICTORY I have pointed out that the attitude of the Republican party with reference to evils which have crept in, due to the enormous material expansion of this country, is to con- tinue the Roosevelt policies of progress and regulation, while the attitude of the Democratic party under its pres- ent leadership is the change for the sake of change to the point of irresponsible destruction, and that there is no hope whatever of a restoration of prosperity in returning it to power. As said in our platform, we Republicans go before the country asking the support, not only of those who have acted with us heretofore, but of all our fellow citizens who, regardless of past political differences, unite in the desire to maintain the policies, perpetuate the blessings and make secure the achievements of a greater America. II THE REPUBLICAN PARTY'S APPEAL * THE Independent asks me to write on the issues of the campaign. My time is so occupied that I must do it in great haste. To my mind, the issues of the campaign are not different from those which arise in every Presidential election, to wit, whether the work of the existing Adminis- tration shall be approved by continuing in power the same party, or shall he condemned by turning the administration of the country's affairs over to the Democratic party. It can hardly be denied that the administration of the Republican party under Mr. McKinley and under Mr. Roosevelt has been ;i wonderful series of successes in meeting the new and unprecedented problems which have presented themselves in that period. The successful carrying on of the Spanish War, the establishment <»t' the Cuban Government, and its re-establish menl ju^l now promising entire success, the carrying on of the Philippine War, the suppression of the rebellion and the establishment of tranquillity and of a government which is working great g 1 in the Islands, the successful elaboration of the reclamation of arid lands in ihe West, the enactment of the pure food and meat inspection laws, the enlargement of the navy, the reorganization and great improvement of the army, the continuation of the coasl defenses, the successful organization and rapid work toward completion of the Panama Canal, the establishment of the position of this nation as one of the most influential in the world, and the use of the influence thus gained to promote the peace of the world, as shown in the close of the Russian- Japanese War, the settlement of Central American wars, * Written by Mr. Taft as candidate of the Republican party for President of the United States, and published in Tlu h >■;, pi , ■,/, nt Oct 15, 190K. [Reprinted by permission of Tht Indi p< ndent.] 43 44 PRESIDENTIAL ADDRESSES and the making closer the bonds between this country and the South American republics, are all definite things done under the administration of the Republican party which entitle it to the confidence of the people and their belief in its courage and efficiency as an agency in government to effect results. After the disastrous operation of the Gorman-Wilson Tariff Bill, the Republican party became responsible for the passage of the Dingley Bill, and under that bill, whether it was the sole cause or not, the country was enabled to enjoy a prosperity and an expansion of wealth and material progress never before seen in the world. It is said now, and truly said, that the tariff rates are generally in excess of what is required by the principle of protection, to wit, they exceed the difference in the cost of production of the same class of articles in this country and abroad. The Republican party is pledged, at a special session of Congress, to take up the tariff schedules and to modify them, so that they shall no longer be excessive; but it also pledges itself to maintain the protective system, upon which a great part of the manufacturing industries of this country and the whole business system rests. In the course of the unprecedented prosperity and expan- sion, evils crept into our community, consisting of the viola- tion of the anti-trust law and the illegal creation of unlawful monopolies which were fostered by combining a large part of the plants engaged in the production of the article in question, and by the use of secret rebates and unlawful dis- criminations in the matter of transportation by the railroads, so as to render helpless the less powerful competitors of the illegal monopoly. More than this, in railroad circles it became clear that the power of issuing stocks and bonds of a par value far in excess of the real value of the property represented by such securities had been used by unscrupulous railroad managers to combine railroad properties and con- centrate the control of them in the hands of one man or a few men. These evils, which forced themselves upon public AND STATE PAPERS 45 notice most emphatically because of revelations the result of official investigation by State and National authority, were at once taken up by the Republican Administration under Mr. Roosevelt. A railroad rate law was passed, giving greatly increased power to the Interstate Commerce Commission, and prosecutions under the anti-trust law were begun and pressed with a vigor never before shown. The time was ripe, because the construction of the anti-trust law by the slow course of judicial decision had finally become sufficiently clear to make successful prosecutions possible. At the same time with the railroad rate bill were enacted the measures already referred to, the pure food law and the meat inspec- tion law. All these encountered the strongest kind of oppo- sition from the leading corporations, from the railroads and the corporations peculiarly affected by the other two laws. Two of the measures failed of passage in one Congress, though recommended by the President, but in the next Congress they were passed after a hard fight, by the full support of the Republican majorities. Mr. Roosevelt recommended the Eederal restriction of the issue of stocks and bonds on interstate railways for the pur- pose of preventing future overissue; but this was not taken up at the last session of Congress, to which the recommenda- tion was made. It is, however, a part of the pledge of the Republican platform that such a measure will be passed, ami there is no reason to doubt that the Republican majorities, with this direction from the party in convention assembled, will comply with its behest. The Republican platform also recommends legislation for the purpose of controlling corporations engaged in carry- ing on interstate commerce which are so large and powerful as to make it a temptation for them, unless restrained by law. to attempt illegal monopolies. The proposed plan is to subject the business of such corporations to the close super- vision of the Federal authorities, so as to make their regula- tion and a keeping of them within the law possible. All these provisions of the Republican platform are in accord 46 PRESIDENTIAL ADDRESSES with the recommendations of Mr. Roosevelt and Congress, and are a proper and emphatic compliance with his policies. The action of Mr. Roosevelt and the Republican party in this last Administration has called a halt in the evils and abuses which crept in during the enormous expansion of business during the last twelve years. The rate bill marked a moral revulsion and a purification of business methods in the matter of railway rebates and in the matter of complying with the anti-trust law which are notable in the economic and moral history of the country, and the most important steps now to be taken are those which shall make secure the progress made and clinch it, so that when prosperity is resumed the community shall not again be subjected to such evils and to the growth of enormous fortunes due to the perpetuation of such abuses. The real issue of the campaign, therefore, is whether the Republican party, because of the record of the administrations of Mr. McKinley and of Mr. Roosevelt in the last twelve years, with this most remarkable array of arduous tasks performed, shall be given a vote of confidence and be entrusted with the further work needed, or whether the country shall be turned over to a party which, under its present leadership, has been doing everything by turns and nothing long. It was a party which proposed to relieve the disaster from which the country suffered during the four years of the operation of the Gorman-Wilson Tariff Bill, not by a new tariff bill, but by adopting a monetary standard of value which would in effect have scaled the debts of all debtors and of the nation as well by 50 per cent., and which would have sullied the honor of the nation as one which repudiated its obligations and enabled its citizens to do the same. Again, in 1900, instead of recommending a change of tariff or suggesting any other of the remedies as paramount which it now proposes, it continued to insist on the adoption of free silver coinage, and attacked the policy of the Govern- AND STATE PAPERS 47 ment in dealing with its problems which came from the Spanish War, as imperialistic. Again, in 1904, under a somewhat different leadership, but still claiming to be the same party, il made the paramount issue the executive usurpation of Mr. Roosevelt and attempted to avoid the fear that il might change the tariff by inviting attention, through the letter of its candidate, to the fact thai the Republican Senate would prevent any change in the tariff at all. Now that the Republican party has pledged itself to revise the tariff and reduce the excessive rates which have arisen by a change of conditions since 1S!><>, the Democratic party seeks to make the tariff one of the issues of the campaign, after twelve years of what may be described as a substantia] ignoring of the issue. The Democratic party, through its present leader. Mr. Bryan, now claims to be the real successor of Mr. Roosevelt in the purpose and policy to eliminate from our economic system illegal monopolies and railroad rebates, and unlaw- ful discriminations and excessive rates. In other words, having introduced into the lasl three campaigns issues as of paramount importance of an entirely differenl character from the trust issue and the railroad issue, and after Mr. Roosevelt and the Republican parly have taken long strides toward the remedy of the evils \\ hich gave rise to these issues, Mr. Bryan and the Democratic parly step forward, and claim, with a courage which in a different cause might well command admiration, that they are the tine exponents of the Roosevelt policies, ami thai they only can he trusted to carry them out, and this in the face of the fact that their remedies ;i> proposed in their platform are exactly the reme- dies winch .Mr. Roosevelt, in his message in 1904 and ever since, has consistently pointed out are not the remedies which ought to he pursued. The two remedies which they make prominent are the remedy of putting every article of mer- chandise made and controlled by a trust upon the \'n'c list, a remedy which would totally destroy the industries depend- ing upon the manufacture of such an article, render the 48 PRESIDENTIAL ADDRESSES capital invested therein and the plant in which it is expended utterly worthless, destroy all the smaller competitors of the trust, greatly injure the prosperity of the country, and throw out of work millions of workingmen and working- women. The second remedy is the revision of the tariff — not on protection lines, but on the lines of a revenue tariff, or on free trade principles. This was attempted in a partial way in the Gorman- Wilson Bill, and resulted most disastrously to the business interests of the country. It means the intro- ducing of such a transition and change in the manufacturing business of this country as to close a very large part of the factories and productive enterprises, and even if theoretically, after the transition and change had been made, the rate of wages would be restored — an assumption I cannot admit — certainly, the transition and change would so halt the business of the country and involve such a paralysis while the change was being effected, that the losses and stagnation in business and the number of men thrown out of employ- ment can hardly be exaggerated. More than this, the Democratic party has so long been engaged in devising sophistical theories upon which to attract votes, rather than in the preparation of practical statutes by which to effect results, that the public may well pause and hesitate to entrust to it any serious, sober work that requires for its accomplish- ment a strong sense of responsibility to the business interests of the country, in the prosperity of which the comfort and well-being of all classes, farmers, wage-earners and business men alike, are inseparably involved. The issue in which laboring men are supposed to be particularly interested in this campaign is with respect to injunctions in industrial disputes. The Republican party proposes to meet the objection to the issuing of temporary restraining orders without notice in industrial disputes, which, though only in rare instances, have put at an improper disad- vantage men engaged in a lawful strike, by defining the best practice in the issuing of such injunctions in all cases by stat- AND STATE TAPERS 49 ute, and limiting the operation of the injunction without notice to a very short period, within which a hearing must be had or the injunction cease to have effect. The Democratic platform recommends no action with respect to notice at all, adopts an enigmatical plank on injunctions in industrial disputes that has practically no meaning, but does recom- mend the introduction of a jury in all indirect contempt proceedings. This would seriously weaken the power of the court, not alone in industrial disputes, but in all cases both of temporary orders ami final judgments, and the Republican party is determined that the power of the courts shall be maintained. The other issue most closely affecting labor is that of the protective tariff and the proposition to change the system from a protective tariff to a revenue tariff, and drive out business industries that are now really dependent upon protection for their maintenance. This, as already said, would so affect the business of the country, so reduce the number of enterprises thai could be carried <>n in the tran- sition proposed as to throw out of employment millions of workingmen. The question which the laboring man has to answer is, whether the advantage to him and his fellows of a change in the judicial procedure as to injunctions and contempt is SO great as to outweigh the public injury arising from a weakening of the power of the courts and the disaster to the wage-earner and the business community which would follow the adoption of the other Democratic- economic proposals. I have omitted from this review the proposition of the Democratic party to give to the Philippines immediate independence, and to initiate a system of enforced guaranty of bank deposits. 1 have no space l<> elaborate either propo- sition, except |o say that the first is intended to, and if carried out will, defeat a plan of the Republican Administration to uplift an unfortunate people, to leach them the power of self-government, and to make greatly for the spread of Christian civilization in the Orient. The second is one of 50 PRESIDENTIAL ADDRESSES those sophistical financial propositions so dear to Mr. Bryan, plausible on its face, but utterly at variance with sound principle. It is supposed to prevent entirely any loss of deposits in all banks to the depositors, and thus to prevent panics. As a matter of fact, it will stimulate reckless and dishonest use of deposits in bank investments, it much reduces the motive for conservative and honest banking in a community, and it would not in the slightest degree prevent runs on banks during panics, for which it is supposed to be a panacea. It imposes upon the honest and conservative banker an obligation to answer for the default of his unscru- pulous or inexperienced fellow, without any means on his part of supervising the work of the person whose honest and careful conduct he insures. The country is just now slowly recovering from a financial depression and a panic which came to us in October and November of last year. It is different from all the other panics in our history, and there are many indications that all that is needed to bring back good conditions is the restora- tion of confidence on the part of the investing public. It is submitted that for twelve years Mr. Bryan has been uphold- ing financial and economic theories which Avere calculated to frighten all sound, conservative business men. His free silver and free trade doctrines, with a touch of "greenback- ism" in some of his proposals, his quickness to seize upon any remedy, however drastic and impossible, which would please the crowd, and the utter instability of his views on any subject of a financial or economic character, would make his election to the Presidency a menace to prosperity. The necessary capital would be withheld and we should probably have a continuation of the present depression for the coming four years. It is Mr. Bryan's record in the last twelve years that makes this a necessary result of his election. Mr. Bryan says that the argument of the lull dinner pail lias been worked overtime. The argument of the full dinner pail is just as apt and just as relevant to the present situation as it has been in previous campaigns. As it is, two things can be AND STATE PAPERS 51 affirmed of the Democratic party under the leadership of Mr. Bryan: First, that all who have anything to invest distrust him because of his unstable and unsound economic and financial views; and second, that they are justified in their lack of confidence. For that reason, those who wish a restoration of prosperity in the country should vote against the Democratic ticket. These are the issues of (he campaign as I understand them. Mr. Bryan charges that the Republican party is controlled by the corporations through campaign contributions. The record of the present Administration is a complete refutation of that charge. The adoption of statutes which met bitter corporate opposition is utterly inconsistent with it, and his assumption that the use of money in a campaign election can control elections is a charge of venality against the American electorate that has no foundation in fact. Mr. Bryan says thai there i-< no hope of a genuine revision of the tariff, because lie sa\ s the Republican parly is depend- ent for its campaign contributions upon the beneficiaries of the excessive rates under the tariff, and therefore that the only possible hope of a reduction in tariff schedules is from the Democratic party. 1 wish to deny this with the utmost emphasis. It is doubtless true that business men interested in a restoration of prosperity will some of them contribute to Republican campaign funds. Campaign funds are necessary in order to pay the legitimate expenses of a cam- paign. Certainly the extent of the contributions from any source in this campaign is not enough to indicate such a pecuniary interest in the success of the Republican party as would exist if Mr. Bryan's charges were tine. Speaking for myself, as the temporary leader of the party, and as the ne\t President if the parly is successful in November, I wish to affirm that no effort of mine will be spared to make the revision of the tariff under Republican auspices and within the conservative protective lines as thorough and as impartial between the consumer and the manufacturing interests as possible. I believe that there are many schedules that ought 52 PRESIDENTIAL ADDRESSES to be reduced. I believe that there are a few, and only a few, that ought to be raised, but on the whole the revision should be a revision downward and not a revision upward. I am convinced that the people of the country desire such a revision. I am convinced that their representatives coming back to Congress will be imbued with that sentiment, and that no successful obstruction can be placed in the way of such Congressional action. To restate the issue of the campaign, it is whether the administrations of William McKinley and Theodore Roose- velt, in their wonderful record of meeting new problems and solving them by things done and statutes passed, shall be endorsed by the people, and the progress made assured by proper legislation, or whether there shall be put in power a party the chief characteristic of which in the last twelve years has been that of hunting an issue and seeking a sophis- tical theory which would attract votes with but little regard for its practical operation, and with but a small sense of responsibility to the business and labor interests of the country. Ill INAUGURAL ADDRESS (.MARCH 4 1909) My Fellow Citizens: ANY one who has taken the oath I have just taken must feel a heavy weight of responsibility. If not, he has no conception of the powers and duties of the office upon which he is about to cuter, or he is lacking in a proper sense of the obligation which tin- oath imposes. The office of an inaugural address is to give a summary outline of the main policies of the new administration, so far as the) can be anticipated. 1 have had the honor to be one of the advisers of my distinguished predecessor, and. as such, to hold up his hands in the reforms he has initiated. I should be untrue to myself, to my promises, and to the dec- larations of the parly platform upon which 1 was elected to office, if I did not make the maintenance and enforce- ment of those reforms a most important feature of my admin- istration. They were directed to the suppression of the lawlessness and abuses of power of the greal combinations of capita] invested in railroads ami in industrial enterprises carrying on interstate commerce. The steps which my predecessor took and the legislation passed on his recom- mendation have accomplished much, have caused a gen- eral halt in the vicious policies which created popular alarm, and have broughl about in the business affected a much higher regard for existing law. To render the reforms lasting, however, and to secure at the same time freedom from alarm on the part of those pursuing proper and progressive business methods, further legislative and executive' action is needed. Relief of the 53 54 PRESIDENTIAL ADDRESSES railroads from certain restrictions of the anti-trust law have been urged by my predecessor and will be urged by me. On the other hand, the administration is pledged to legisla- tion looking to a proper federal supervision and restriction to prevent excessive issues of bonds and stocks by com- panies owning and operating interstate-commerce railroads. Then, too, a reorganization of the Department of Jus- tice, of the Bureau of Corporations in the Department of Commerce and Labor, and of the Interstate Commerce Commission, looking to effective cooperation of these agencies is needed to secure a more rapid and certain enforcement of the laws affecting interstate railroads and industrial combinations. I hope to be able to submit at the first regular session of the incoming Congress, in December next, definite sugges- tions in respect to the needed amendments to the anti-trust and the interstate-commerce law and the changes required in the executive departments concerned in their enforcement. It is believed that with the changes to be recommended, American business can be assured of that measure of stability and certainty in respect to those things that may be done and those that are prohibited which is essential to the life and growth of all business. Such a plan must include the right of the people to avail themselves of those methods of combining capital and effort deemed necessary to reach the highest degree of economic efficiency, at the same time differentiating between combinations based upon legitimate economic reasons and those formed with the intent of crea- ting monopolies and artificially controlling prices. The work of formulating into practical shape such changes is creative work of the highest order, and requires all the deliberation possible in the interval. I believe that the amendments to be proposed are just as necessary in the protection of legitimate business as in the clinching of the reforms which properly bear the name of my predecessor. A matter of most pressing importance is the revision of the tariff. In accordance with the promises of the platform AND STATE PAPERS 55 upon which I was elected, I shall call Congress into extra session to meet on the loth day of March, in order that con- sideration may be at once given to a bill revising the Dingley Act. This should secure an adequate revenue and adjust the duties in such a manner as to afford to labor and to all industries in this country, whether of the farm. mine, ol- factory, protection by tariff equal to the difference between the cost of production abroad and the cost of production here, and have a provision which shall put into force, upon exec- utive determination of certain facts, a higher or maximum tariff against those countries whose trade policy toward us equitably requires such discrimination. It is thought that there has been such a change in conditions since the enact- ment of the Dingley Act. drafted on a similarly protective principle, that the measure of the tariff above stated will permit the reduction of rates in certain schedules and will require the advancement of few, if any. The proposal to revise the tariff made in such an authori- tative way as to lead the business community to count upon it necessarily halts all those branches of business directly affected; and as these are mosl important, it disturbs the whole business of the country. It is imperatively necessary, therefore, that a tariff bill be drawn in good faith in accord- ance with promises made before the election by the party in power, and as promptly passed as due consideration will permit. It is not that the tariff is more important in the long run than the perfecting of the reforms in respect to anti-trust legislation and interstate-commerce regulation, but the need for action when the revision of the tariff has been determined upon is more immediate to avoid embar- rassment of business. To secure the needed speed in the passage of the tariff bill, it would seem wise to at tempt no other legislation at the extra session. I venture this as a suggestion only, for the course to be taken by Congress, upon the call of the Executive, is wholly within its discretion. In the making of a tariff bill the prime motive is taxation and the securing thereby of a revenue. Due largely to the 56 PRESIDENTIAL ADDRESSES business depression which followed the financial panic of 1907, the revenue from customs and other sources has decreased to such an extent that the expenditures for the current fiscal year will exceed the receipts by $100,000,000. It is imperative that such a deficit shall not continue, and the framers of the tariff bill must, of course, have in mind the total revenues likely to be produced by it and so arrange the duties as to secure an adequate income. Should it be impossible to do so by import duties, new kinds of taxa- tion must be adopted, and among these I recommend a grad- uated inheritance tax as correct in principle and as certain and easy of collection. The obligation on the part of those responsible for the expenditures made to carry on the Government, to be as economical as possible, and to make the burden of taxa- tion as light as possible, is plain, and should be affirmed in every declaration of government policy. This is espe- cially true when we are face to face with a heavy deficit. But when the desire to win the popular approval leads to the cutting off of expenditures really needed to make the Gov- ernment effective and to enable it to accomplish its proper objects, the result is as much to be condemned as the waste of government funds in unnecessary expenditure. The scope of a modern government in what it can and ought to accomplish for its people has been widened far beyond the principles laid down by the old "laisser-faire" school of poli- tical writers, and this widening has met popular approval. In the Department of Agriculture the use of scientific experiments on a large scale and the spread of information derived from them for the improvement of general agri- culture must go on. The importance of supervising business of great railways and industrial combinations and the necessary investiga- tion and prosecution of unlawful business methods are another necessary tax upon Government which did not exist half a century ago. The putting into force of laws which shall secure the con- AND STATE PAPERS 57 servation of our resources, so far as they may be within the jurisdiction of the Federal Government, including the most important work of saving and restoring our forests and the great improvement of waterways, are all proper govern- ment functions which must involve large expenditure if properly performed. While some of them, like the reclama- tion of arid lands, are made to pay for themselves, others are of such an indirect benefit that this can not be expected of them. A permanent improvement, like the Panama Canal, should be treated as a distinct enterprise, and should be paid for by the proceeds of bonds, the issue of which will distribute its cost between the present and future generations in accordance with the benefits derived. It may well be submitted to the serious consideration of Congress whether the deepening and control of the channel of a great river system, like that of the Ohio or of the Mississippi, when definite and practical plans for the enterprise have been approved and determined upon, should not be provided for in the same way. Then, too, there are expenditures of Government abso- lutely necessary if our country is to maintain its proper place among the nations of the world, and is to exercise its proper influence in defense of its own trade interests in the main- tenance of traditional American policy against the coloniza- tion of European monarchies in this hemisphere, and in the promotion of peace and international morality. I refer to the cost of maintaining a proper army, a proper navy, and suitable fortifications upon the mainland of the United States and in its dependencies. We should have an army so organized and so officered as to be capable in time of emergency, in cooperation with the national militia and under the provisions of a proper national volunteer law, rapidly to expand into a force suffi- cient to resist all probable invasion from abroad and to furnish a respectable expeditionary force if necessary in the maintenance of our traditional American policy which bears the name of President Monroe. 58 PRESIDENTIAL ADDRESSES Our fortifications are yet in a state of only partial complete- ness, and the number of men to man them is insufficient. In a few years, however, the usual annual appropriations for our coast defenses, both on the mainland and in the dependencies, will make them sufficient to resist all direct attack, and by that time we may hope that the men to man them will be provided as a necessary adjunct. The dis- tance of our shores from Europe and Asia of course reduces the necessity for maintaining under arms a great army, but it does not take away the requirement of mere prudence — that we should have an army sufficiently large and so con- stituted as to form a nucleus out of which a suitable force can quickly grow. What has been said of the army may be affirmed in even a more emphatic way of the navy. A modern navy can not be improvised. It must be built and in existence when the emergency arises which calls for its use and operation. My distinguished predecessor has in many speeches and mes- sages set out with great force and striking language the neces- sity for maintaining a strong navy commensurate with the coast line, the governmental resources, and the foreign trade of our Nation; and I wish to reiterate all the reasons which he has presented in favor of the policy of main- taining a strong navy as the best conservator of our peace with other nations and the best means of securing respect for the assertion of our rights, the defense of our interests, and the exercise of our influence in international matters. Our international policy is always to promote peace. We shall enter into any war with a full consciousness of the awful consequences that it always entails, whether success- ful or not, and we, of course, shall make every effort con- sistent with national honor and the highest national inter- est to avoid a resort to arms. We favor every instrumen- tality, like that of The Hague Tribunal and arbitration treaties made with a view to its use in all international con- troversies, in order to maintain peace and to avoid war. But we should be blind to existing conditions and should AND STATE PAPERS 59 allow ourselves to become foolish idealists it' we did not realize that with all the nations of the world armed and pre- pared for war, we must be ourselves in a similar condition, in order to prevent other nations from taking advantage of us and of our inability to defend our interests and assert our rights with a strong hand. In the international controversies that are likely to arise in the Orient growing out of the question of the open door and other issues the United Stales can maintain 1km- inter- ests intact, and can secure respect for her just demands. She will not be aide to do so, however, if it is understood that die never intends to hack up her assertion of right and her defense of her interest by anything but mere verbal protest and diplomatic note, for these reasons the expenses of the army and navy and of coast defenses should always he considered as something which the Government must pay for, and they should not he cut oil* through mere con- sideration of economy. Our Government is able to afford a suitable army and a suitable navy. It may maintain them without the slightest danger to the Republic or the cause of free institutions, and fear of additional taxation ought not to change a proper policy in this regard. Tin- policy of the United Slates in the Spanish war and since has given it a position of influence among the nations that it never had before, and should l>e constantly excited to securing to its bona fide citizens, whether native or natural- i/.cd. respect for them as such in foreign countries. We should make every effort to prevent humiliating and de- grading prohibition against any of our citizens wishing tem- porarily to sojourn in foreign countries because of race or religion. The admission of Asiatic immigrants who cannot be amalgamated with our population has been made the sub- ject either of prohibitory clauses in our treaties and statutes or of strict administrative regulation secured by diplo- matic negotiation. 1 .sincerely hope that we may con- tinue to minimize the evils likely to arise from such immi- 60 PRESIDENTIAL ADDRESSES gration without unnecessary friction and by mutual conces- sions between self-respecting governments. Meantime we must take every precaution to prevent, or failing that, to punish, outbursts of race feeling among our people against foreigners of whatever nationality who have by our grant a treaty right to pursue lawful business here, and to be pro- tected against lawless assault or injury. This leads me to point out a serious defect in the present federal jurisdiction, which ought to be remedied at once. Having assured to other countries by treaty the protection of our laws for such of their subjects or citizens as we per- mit to come within our jurisdiction, we now leave to a State or a city, not under the control of the Federal Govern- ment, the duty of performing our international obligations in this respect. By proper legislation we may, and ought to, place in the hands of the Federal Executive the means of enforcing the treaty rights of such aliens in the courts of the Federal Government. It puts our Government in a pusillanimous position to make definite engagements to protect aliens and then to excuse the failure to perform those engagements by an explanation that the duty to keep them is in States or cities not within our control. If we would promise we must put ourselves in a position to per- form our promise. We can not permit the possible failure of justice, due to local prejudice, in any State or municipal government to expose us to the risk of a war which might be avoided if federal jurisdiction was asserted by suitable legislation by Congress and carried out by proper proceed- ings instituted by the Executive in the courts of the National Government. One of the reforms to be carried out during the incom- ing administration is a change of our monetary and bank- ing laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassments of a financial panic. The monetary commission, lately appointed, is giving full consideration to existing conditions AND STATE PAPERS 61 and to all proposed remedies, and will doubtless suggest one that will meet the requirements of business and of public interest. We may hope that the report will embody neither the nar- row view of those who believe that the sole purpose of the new system should be to secure a large return on banking capital or of those who would have greater expansion of cur- rency with little regard to provisions for its immediate redemp- tion or ultimate security. There is no subject of economic discussion so intricate and so likely to evoke differing views and dogmatic statements as this one. The commission, in studying the general influence of currency on business and of business on currency, have wisely extended their investi- gations in European banking and monetary methods. The information that they have derived from such experts as they have found abroad will undoubtedly be found helpful in the solution of the difficult problem they have in hand. The incoming Congress should promptly fulfil the prom- ise of the Republican platform and pass a proper postal- savings bank bill. It will not be unwise or excessive pater- nalism. The promise to repay by the Government will furnish an inducement to savings deposits which private enterprise can not supply ami at such a low rate of inter- est as not to withdraw custom from existing banks. It will substantially increase the funds available for investment as capital in useful enterprises. It will furnish the absolute security which makes the proposed scheme of government guaranty of deposits so alluring, without its pernicious results. I sincerely hope that the incoming Congress will be alive, as it should be, to the importance of our foreign trade and of encouraging it in every way feasible. The possibility of increasing this trade in the Orient, in the Philippines, and in South America is known to every one who has given the matter attention. The direct effect of free trade between this country and the Philippines will be marked upon our sale of cottons, agricultural machinery, and other manu- G2 PRESIDENTIAL ADDRESSES factures. The necessity for the establishment of direct lines of steamers between North and South America has been brought to the attention of Congress by my predecessor and by Mr. Root before and after his noteworthy visit to that continent, and I sincerely hope that Congress may be induced to see the wisdom of a tentative effort to establish such lines by the use of mail subsidies. The importance which the Departments of Agriculture and of Commerce and Labor may play in ridding the mar- kets of Europe of prohibitions and discriminations against the importation of our products is fully understood, and it is hoped that the use of the maximum and minimum feature of our tariff law to be soon passed will be effective to remove many of those restrictions. The Panama Canal will have a most important bearing upon the trade between the eastern and the far western sections of our country, and will greatly increase the facil- ities for transportation between the eastern and the wes- tern seaboard, and may possibly revolutionize the trans- continental rates with respect to bulky merchandise. It will also have a most beneficial effect to increase the trade between the eastern seaboard of the United States and the western coast of South America, and, indeed, with some of the important ports on the east coast of South America reached by rail from the west coast. The work on the canal is making most satisfactory pro- gress. The type of the canal as a lock canal was fixed by Congress after a full consideration of the conflicting reports of the majority and minority of the consulting board, and after the recommendation of the War Department and the Executive upon those reports. Recent suggestion that some- thing had occurred on the Isthmus to make the lock type of the canal less feasible than it was supposed to be when the reports were made and the policy determined on, led to a visit to the Isthmus of a board of competent engineers to examine the Gatun dam and locks, which are the key of the lock type. The report of the board shows that nothing AND STATE PAPERS 63 has occurred in the nature of newly revealed evidence which should change the views once formed in the original dis- cussion. The construction will go on under a most effective organization controlled by Colonel Goethals and his fellow army engineers associated with him, and will certainly be completed early in the next administration, if not before. Some type of canal must be constructed. The lock type has hem selected. We are all in favor of having it built as promptly as possible. We musl nol now, therefore, keep up a fire in the rear of the agents whom we have authorized to do our work on the [sthmus. We must hold up their hands, and speaking for the incoming administration I wish to say that I propose to devote all the energy possible and under my control to pushing this work on the plans which have been adopted, and to stand behind the nun who are doing faithful, hard work to bring aboul the early comple- tion of this, the greatesl constructive enterprise of modern times. The governments of our dependencies in Porto Rico and the Philippines are progressing as favorably as could be desired. The prosperity of Porto Rico continues unabated. The business conditions in the Philippines are noi all thai we could wish them to be, bul with the passage of the new tariff bill permitting free trade between the United Stale-, and the archipelago, with such limitation- in sugar and tobacco as shall prevent injury to domestic interests on those products, we can count on an improvement in business conditions in the Philippines and the development of a mutually profit- able trade between this country and the islands. Meantime our Government in each dependency is upholding the tradi- tions of civil liberty and increasing popular control which might be expected under American auspices. The work which we are doing there redounds to our credit as a Nation. 1 look forward with hope to increasing the already good feeling between the South and the other sections of the country. My chief purpose i> not to effeel a change in the electoral vote of the Southern States. That is a secondary 64 PRESIDENTIAL ADDRESSES consideration. What I look forward to is an increase in the tolerance of political views of all kinds and their advocacy throughout the South, and the existence of a respectable political opposition in every State; even more than this, to an increased feeling on the part of all the people in the South that this Government is their Government, and that its officers in their States are their officers. The consideration of this question can not, however, be complete and full without reference to the Negro race, its progress and its present condition. The thirteenth amend- ment secured them freedom; the fourteenth amendment, due process of law, protection of property, and the pursuit of happiness; and the fifteenth amendment attempted to secure the Negro against any deprivation of the privilege to vote because he was a Negro. The thirteenth and fourteenth amendments have been generally enforced and have secured the objects for which they were intended. While the fif- teenth amendment has not been generally observed in the past, it ought to be observed, and the tendency of southern legislation to-day is toward the enactment of electoral quali- fications which shall square with that amendment. Of course, the mere adoption of a constitutional law is only one step in the right direction. It must be fairly and justly enforced as well. In time both will come. Hence it is clear to all that the domination of an ignorant, irresponsible ele- ment can be prevented by constitutional laws which shall exclude from voting both Negroes and whites not having education or other qualifications thought to be necessary for a proper electorate. The danger of the control of an ignorant electorate has therefore passed. With this change, the interest which many of the southern white citizens take in the welfare of the Negroes has increased. The colored men must base their hope on the results of their own indus- try, self-restraint, thrift, and business success, as well as upon the aid and comfort and sympathy which they may receive from their white neighbors of the South. There was a time when Northerners who sympathized with AND STATE PAPERS 65 the Negro in his necessary struggle for better conditions sought to give to him the suffrage as a protection and to enforce its exercise against the prevailing sentiment of the South. The movement proved to be a failure. What remains is the fifteenth amendment to the Constitution and the right to have statutes of Stales specifying qualifications for electors subjected to the test of compliance with that amendment. This is a great protection to the Negro. It never will he repealed, and it never ought to be repealed. If it had not passed, it might be difficult now to adopt it; hut with it in our fundamental law, the policy of Southern legis- lation must and will lend to obey it. and so long as the statutes of the States meet the test of this amendment and are not otherwise in conflict with the Constitution and laws of the United Stales it is not the disposition or within the province of the Federal Government to interfere with the regulation by Southern States of their domestic affairs. 'There is in the South a stronger feeling than ever among the intelligent, well-to-do. and influential element in favor of the indus- trial education of the Negro and the encouragement of the race to make themselves useful members of the community. Tin- progress which the Negro has made in the last fifty years, from slavery, when its statistics are revealed, is mar- vellous, and it furnishes everj reason to hope that in the next twenty-five years a still greater improvement in his con- dition as a productive member of society, on the farm, and in the shop, and in other occupations may come. The Negroes are now Americans. Their ancestors came here years ago against their will, and this is their only country and their only (lag. They have shown themselves anxious to live for it and to die for it. Encountering the race feeling against them, subjected at limes to cruel injustice growing out of it, they may well have our profound sympathy and aid in the struggle they arc making. We are charged with the sacred duly of making their path as smooth and easy as we can. Any recognition of their distinguished men, any appointment to office from among their number, is properly 66 PRESIDENTIAL ADDRESSES taken as an encouragement and an appreciation of their progress, and this just policy should be pursued when suit- able occasion offers. But it may well admit of doubt whether, in the case of any race, an appointment of one of their number to a local office in a community in which the race feeling is so widespread and acute as to interfere with the ease and facility with which the local government business can be done by the appointee is of sufficient benefit by way of encouragement to the race to outweigh the recurrence and increase of race feeling which such an appointment is likely to engender. Therefore, the Executive, in recognizing the Negro race by appointments, must exercise a careful discretion not thereby to do it more harm than good. On the other hand, we must be careful not to encourage the mere pretense of race feeling manufactured in the interest of individual political ambition. Personally, I have not the slightest race prejudice or feel- ing, and recognition of its existence only awakens in my heart a deeper sympathy for those who have to bear it or suffer from it, and I question the wisdom of a policy which is likely to increase it. Meantime, if nothing is done to prevent it, a better feeling between the Negroes and the whites in the South will continue to grow, and more and more of the white people will come to realize that the future of the South is to be much benefited by the industrial and intellectual progress of the Negro. The exercise of political franchises by those of his race who are intelligent and well-to- do will be acquiesced in, and the right to vote will be with- held only from the ignorant and irresponsible of both races. There is one other matter to which I shall refer. It was made the subject of great controversy during the election and calls for at least a passing reference now. My distin- guished predecessor has given much attention to the cause of labor, with whose struggle for better things he has shown the sincerest sympathy. At his instance Congress has passed the bill fixing the liability of interstate carriers to their employees for injury sustained in the course of employment, AND STATE PAPERS 67 abolishing the rule of fellow servant and the common-law rule as to contributory negligence, and substituting therefor the so-called rule of "comparative negligence." It has also passed a law fixing the compensation of government employees for injuries sustained in the employ of the Gov- ernment. It has also passed a model child-labor law for the District of Columbia. In previous administrations an arbitration law for interstate-commerce railroads and their employees, and laws for the application of safety devices to save the lives and limbs of employees of interstate rail- roads had been passed. Additional legislation of this kind was passed by the outgoing Congress. I wish to say that, in so far a- 1 can, I hope to promote the enactment of further legislation of this character. 1 am strongly convinced that the Government should make itself as responsible to employees injured in its employ as an interstate-railway corporation is made responsible by federal law to its employees; and I shall be glad, whenever any addi- tional reasonable safely device can be invented to reduce the loss of life and limb among railway employees, to urge Congress to require it> adoption by interstate railways. Another labor question has arisen which has awakened the mosl excited discussion. That is in respect to the power of the federal courts to issue injunctions in industrial dis- putes. As to that, my convictions are fixed. Take away from the courts, if it could be taken away, the power to issue injunctions in labor disputes, and it would create a privileged class among the laborers and save the lawless among their number from a mosl needful remedy available to all men for the protection of their business againsl unlaw- ful invasion. The proposition thai bu>ineNS is not a prop- erty or pecuniary right which can be protected by equita- ble injunction is utterly without foundation in precedent or reason. The proposition is usually linked with one to make the secondary boycott lawful. Such a proposition is at vari- ance with (he American instinct, and will find no support, in my judgment, when submitted to the American people. 68 PRESIDENTIAL ADDRESSES The secondary boycott is an instrument of tyranny, and ought not to be made legitimate. The issue of a temporary restraining order without notice has in several instances been abused by its inconsiderate exercise, and to remedy this, the platform upon which I was elected recommends the formulation in a statute of the con- ditions under which such a temporary restraining order ought to issue. A statute can and ought to be framed to embody the best modern practice, and can bring the sub- ject so closely to the attention of the court as to make abuses of the process unlikely in the future. The American people, if I understand them, insist that the authority of the courts shall be sustained, and are opposed to any change in the procedure by which the powers of a court may be weak- ened and the fearless and effective administration of justice be interfered with. Having thus reviewed the questions likely to recur during my administration, and having expressed in a summary way the position which I expect to take in recommendations to Congress and in my conduct as an Executive, I invoke the considerate sympathy and support of my fellow citizens and the aid of Almighty God in the discharge of my responsible duties. IV MESSAGE CONVENING CONGRESS IN EXTRA SESSION (.MARCH 16, 1909) To tJw Senate and House of Representatives: I HAVE convened the Congress in this extra session in order to enable it to give immediate consideration to the revision of the Dingley Tariff Act. Conditions affecting production, manufacture, and business generally, have so changed in the last twelve years as to require a readjust- ment and revision of the import duties imposed by that Act. More than this, the present tariff act, with the other sources of Government revenue, does not furnish income enough to pay the authorized expenditures. By July 1st next the excess of expenses over receipts for the current fiscal year will equal $100,000,000. The successful party in the late election is pledged to a revision of the tariff. The country, and the business com- munity especially, expect it. The prospect of a change in the rates of import duties always causes a suspension or halt in business because of the uncertainty as to the changes to be made, and their effect. It is, therefore, of the highest importance that the new bill should be agreed upon and passed with as much speed as possible consistent with its due and thorough consideration. For these reasons, I have deemed the present to be an extraordinary occasion, within the meaning of the Constitution, justifying and requiring the calling >>\' an extra session. In my inaugural address I stated in a summary way the principles upon which, in my judgment, the revision of the tariff should proceed, and indicated at least one new source 69 70 PRESIDENTIAL ADDRESSES of revenue that might be properly resorted to in order to avoid a future deficit. It is not necessary for me to repeat what I then said. I venture to suggest that the vital business interests of the country require that the attention of the Congress in this session be chiefly devoted to the consideration of the new tariff bill, and that the less time given to other subjects of legislation in this session, the better for the country. V grover Cleveland (ADDRESS DELIVERED BY THE PRESIDENT AT THE CLEVELAND MEMORIAL EXERCISES, HELD IN CARNEGIE HALL, NEW YORK CITY, MARCH 18, 1909) GROVER CLEVELAND was as completely American in his character as Lincoln. Without a college edu- cation, lie prepared himself for the Bar. His life was con- fined to western New York. His vision of governmenl and of society was nol widened by foreign travel. He was a pure producl of the village and town life of the Middle States, affected by New England ancestry and the atmos- phere of a clergyman's home. His chief characteristics wen- simplicity and directness of thought, sturdy honesty, courage of his convictions and plainness of speech, with a sense <>t' public duly thai has been exceeded by no states- man within my knowledge. It was so strong in him thai he rarely wrote anything, whether in the form of a private or public communication, that the obligation of ;ill men to observe the public interesl was nol his chief theme. His career was a most remarkable one. By his adminis- tration of the affairs of his city as its Mayor, he showed his power of resistence to, and of overcoming, the influences thai made for corruption and negligence in city govern- ment, both in his own parly and in the party of his opponents. His reputation in this regard spread over his native state of New York at a time when such an altitude as his seemed exceptional, and his standing before the cummunity became a political asset for the Democratic party, that even those who had hnt little sympathy with his principles were glad to seize upon as a means of getting into power. Accordingly, 71 72 PRESIDENTIAL ADDRESSES he was nominated for the Governorship, and was elected by the votes not only of his own party but of hundreds of thousands of the Republican party. The discharge of his duties as Governor confirmed and strengthened the reputa- tion that he had acquired as a Mayor. Before he had ceased his office as Mayor, he had been elected Governor. Before he had ceased his office as Governor, he had been elected President of the United States. The presidential campaign of 1884 degenerated into one of slander, scandal and abuse, but Mr. Cleveland came through it, retaining the confidence of the American people in his courage and honesty and his single purpose to better the public service. Mr. Cleveland was a Democrat. He was a partisan. He believed in parties, as all men must who understand the machinery essential to the success and efficiency of popular government. His impulses were all toward the merit sys- tem of appointments in the public service, and against the spoils system; but he had a practical, common-sense view of the problems before him. He dealt with the instruments which he had, and he not infrequently was obliged, in order to accomplish greater objects, to yield to the demands of those who had no ideals, and who were impatient of anything but the use of government offices as a purely political reward. Every time that opportunity offered, how- ever, and there was not some greater object in immediate view, he strengthened and assisted the movement toward the merit system. Mr. Cleveland's political career was so short that he had a great advantage over the prominent men of his party whose records reached back into, and were governed by, the bitter quarrels of the Civil War. As a political quantity, his his- tory began during the corruption and demoralization in the Republican party which were a necessary result of continued power during the war and the decade succeeding it. He represented in a sense a new Democracy, about which all the older elements rallied, both those strongly in sympathy AND STATE TAPERS 73 with his reform views, as well as those elements without such sympathy, who were anxious to secure party power. At the end of his first term, he was renominated, but was beaten by General Harrison in a close vote. By that time, the politicians of the old school in the Democratic party had drawn away from him, ami had no desire to con- tinue his leadership. But so strong a hold had he upon the affections and confidence of the rank and file of his parly, and so sure were they that he was stronger than the party in an electoral contest, thai he was nominated in the National Convention against the desires of nn>>t of the state organiza- tion leaders; and in the election which followed, he led his parly to the greatest victory in its history. In this campaign Mr. Cleveland stood for an affirmative idea, that of a reduction of the tariff, so as to make it a tariff for revenue. He attacked the protective theory and system. He stood for something aggressive and affirm- ative. It was in accordance with the ancient traditions of the party. I do not need to enter into a discussion of the merits of the issue, but comment on it only as illustrating Mr. Cleveland's character. lie was positive, lie was affirmative. He was courageous. He believed in parties. He believed in (tarty policies, and he believed in consistency in regard to them, and he did not believe in trimming down a policy to catch Un- votes of those who really did not agree with it. The first time Mr. Cleveland was in power he was opposed by a Republican Senate. This gave little opportunity for any radical change by legislation in the previous policies of Republican administrations, but it did offer an opportunity for Mr. ( 'leveland to point out to the country the fact thai our government is a government of three distinct branches, the Executive, the Legislative, and the Judicial, and that the Executive has a sphere which the Legislative branch has no right to invade. We hear much in these days of the usurpation of the Legislative jurisdiction by the Executive branch. As long 74 PRESIDENTIAL ADDRESSES as the Legislative branch has the power of the purse, the danger of Executive usurpation is imaginative. The real danger arises from the disposition of the Legislative branch to assume that it has the omnipotence of Parliament and may completely control the discretion conferred upon the Executive by the Constitution. The country is under obliga- tion to Mr. Cleveland for having pointed out in his contro- versy with the Republican Senate, some of the limitations that there are in the Constitution upon attempted Legisla- tive action to restrict Executive discretion. In the end Mr. Cleveland won in his controversy with the Senate. Whether he might have done so, had both the House and the Senate been against him, is a matter of doubt. The history of Andrew Johnson's controversy with Congress shows how far a partisan legislature may be induced to go in an uncon- stitutional attempt to cut down Executive power. The limit of Legislative restriction upon Executive action is a difficult line to define. Any one who attempts to do more than to pass on single instances as they arise may find himself in great difficulty, but as such instances are considered and decided, the limits are gradually being defined. We owe to Mr. Cleveland and his courage in dealing with the Senate of the United States, the establishment of some useful precedents. In Mr. Cleveland's second term, there was a large major- ity of his party in the House and a working majority in the Senate, so that the whole responsibility of Government fell upon the Democracy, with Mr. Cleveland at its head. The significance of his second administration centers about three issues. The first was the tariff; the second, free silver, and the third, the suppression of lawlessness directed against Federal authority by use of the process of Federal courts and by Federal troops. The same influences in his own party which had sought to defeat Mr. Cleveland for nomina- tion in his third canvass, he found intrenched in the Senate so strongly as to be able to defeat the declared policy of his party in favor of a revenue tariff, and he refused to sign the Gorman-Wilson Bill but allowed it to become a law after AND STATE PAPERS 75 denouncing it as the result of perfidy and dishonor. This was doubtless the greatest disappointment of his political life, for it destroyed the opportunity to test the wisdom of the party policy advocated by him and declared in the party platform, while the business depression which existed before and after its passage furnished ammunition to his political opponents who did not hesitate to argue that the prospect of a revenue tariff on the one hand and the passage of the actual Gorman- Wilson Bill on the other had paralyzed the industries of the country. Whatever one's views upon the tariff, whether he be a protectionist or a free-trader, he cannot but have the deepesl sympathy with Mr. Cleveland in his deej) indignation at the party disloyalty which defeated the Wilson Hill as it passed the House, and gave us the non- descript bill which became the law. Hut there was rising in the Democratic party at the time, especially in the western and southern parts of the country, a desire for economic remedy which should cure everything in our business and body politic. This was the movement in favor of the ivcr coinage of silver. The Republican party and some of its leaders in the wot and south had not been free from weakness in this respect, and the law for the monthly purchases of $2,000,000 of silver hung like a stone around the neck of the country. Mr. Cleveland used all the authority that he could command a> the Executive to bring about a repeal of this law, and he finally succeeded. 'I 'he deep gratitude of the country is due to him for this result. Without it disaster would have come. Without it the credit of the country could not have been sustained ami there would have been a blot on our financial escutcheon. But when Mr. Cleveland succeeded in securing the repeal of the Sherman Act, it seemed as if his control over the party with respect to the monetary issue had been exhausted. His party became hopelessly divided, and the majority of it declared in favor of the free coinage of silver, a policy which we know to-day, and which we ought to have known then, was nothing but a policy of repudiation. It was a 76 PRESIDENTIAL ADDRESSES policy completely contrary to the ancient and traditional views of the old Democratic party. It was a departure from the plainest principles of honesty to those who foresaw its effect in the repudiation and scaling down of public and private debts by legislative fiat. It was a policy which has taken away from the Democratic party the confidence of the business community, whether previously Democratic or Republican. It presented a moral issue so sharp, so clear, as completely to destroy party fealty and party attach- ments. It took away from the Democratic party that strong, conservative element of which Mr. Cleveland was the leader, and it made it for the time a party which seemed to threaten the foundation of honest business and of honest government. It seemed to make its campaign in 1896 and 1900, an assault upon that which was best in our civiliza- tion. In my judgment, the safety of the Republic was threatened by the breaking up of the Democratic party into its radical and conservative elements. In the campaigns of Mr. Blaine and Mr. Cleveland and of Mr. Cleveland and Mr. Harrison, every one felt, however deep his partisan desires, that the institutions of the country, as established by the fathers, would be preserved under the leadership of either party, but in the campaign of 1896, and the one which followed it, there was certainly no such confidence on the part of the men who voted for Mr. Mc- Kinley. It seemed to be an issue in which the permanence of our institutions was involved. In this light, it was an unfortunate day for the Republic when the leadership of the Democracy passed from Mr. Cleveland. The patriotic spirit which moved those under Mr. Cleve- land's leadership to break from party ties and save the country from repudiation, entitled them and him to our everlasting gratitude. Another great debt which the country owes to Mr. Cleve- land is the assertion, made through him as its Chief Execu- tive, of the power of the Federal Government directly to AND STATE PAPERS 77 defend the Federal jurisdiction through the process of Federal courts and by Federal troops, against the lawless invasion of a mob. Mr. Cleveland was a Democrat and of course respected the traditional construction of the Con- stitution by that party; but no fear of apparent inconsistency prevented him from asserting the full Federal power to main- tain its authority to suppress lawlessness when directed against Federal right and Federal jurisdiction; and so he insti- tuted proceedings in the Federal courts to restrain the Debs' boycott of the country, the tying up of interstate commerce, and the interference with the mails, and he sent the troops under General Miles to Chicago to make his assertion of the power effective. It cost him the support of the thoughtless whose sympathy against the unjust aggressions of corporate power and wealth make them wink at the lawless invasion of vested rights. But he succeeded in stopping what had really grown to the proportions of an insurrection. The highest tribunal created by the Constitution to fix the limits of State and National authority completely sustained his course. There were other issues in his administration; there were other controversies in which lie took part in his political life, but time permits me only to discuss those which I have referred to. Grover Cleveland earned the sincere gratitude of his coun- trymen and justified recurring memorial occasions like the one in which we are taking part. He was a great President, not because he was a great lawyer, not because he was a bril- liant orator, not because he was a statesman of profound learning, but because he was a patriot with the highest sense of public duty, because he was a statesman of clear percep- tions, of the utmost courage of his convictions, and of great plainness of speech; because he was a man of the highest character, a father and husband of the best type, and because throughout his political life he showed those rugged virtues of the public servant and citizen, the emulation of which by those who follow him will render progress of our political life toward better things a certainty. VI PROPOSED TARIFF-REVISION LAW OF 1909 FOR THE PHILIPPINE ISLANDS (THE WHITE HOUSE, APRIL 14, 1909) To the Senate and House of Representatives: I TRANSMIT herewith a communication from the Secretary of War, inclosing one from the Chief of the Bureau of Insular Affairs, in which is transmitted a pro- posed tariff-revision law for the Philippine Islands. This measure revises the present Philippine tariff, simplifies it, and makes it conform as nearly as pos- sible to the regulations of the customs laws of the United States, especially with respect to packing and packages. The present Philippine regulations have been cumbersome and difficult for American merchants and exporters to comply with. Its purpose is to meet the new conditions that will arise under the section of the pending United States tariff bill which provides, with certain limita- tions, for free trade between the United States and the islands. It is drawn with a view to preserving to the islands as much customs revenue as possible, and to pro- tect in a reasonable measure those industries which now exist in the islands. The bill now transmitted has been drawn by a board of tariff experts, of which the insular collector of customs, Colonel George R. Colton, was the president. The board held a great many open meetings in Manila, and conferred fully with representatives of all business interests in the Philippine Islands. It is of great importance to the welfare of the islands that the bill should be passed at the same time 78 PRESIDENTIAL ADDRESSES 79 with the pending Payne Bill, with special reference to the provisions of which it was prepared. I respectfully recommend that this hill be enacted at the present session of Congress as one incidental to and required by the passage of the Payne Bill. VII ADDRESS OF PRESIDENT TAFT AT THE BAN- QUET GIVEN IN HIS HONOR BY THE BOARD OF TRADE AND CHAMBER OF COMMERCE OF WASHINGTON, D. C, AT THE NEW WILLARD (MAY 8, 1909) Mr. Chairman and the Solid Men of Washington: I WISH to thank you from the bottom of my heart for the courtesy that you have extended to me this even- ing in this magnificent banquet, and in your coming here to take part in this occasion. I am proud of it, if it be the case, and I must believe it from the assurances given to-night, that this is the first time that a President of the United States has ever had the pleasure of meeting on such an occasion and under such circumstances, the business men of Washington. I hope for close intimacy; I hope that we may come together and we may discuss these things, because certainly we need it. I take the utmost personal pride in the City of Washington. It thrills my heart every day to look out of the back windows of the White House — for the short time I have been there — and whenever I get the opportunity, to see this beautiful city in which we are permitted to live — these avenues and streets constructed on a magnificent plan, looking forward for centuries; these trees planted with great foresight to make every part of Washington a park; these vistas into which always creeps unbidden that beautiful shaft that marks the memory of the founder of the city. I have not been here very long in the City of Washington, 80 PRESIDENTIAL ADDRESSES 81 as some men count it long. I was here two years between 1890 and 1892; four years from 1904 to 1908 — but that is a little bit longer than Justice Stafford. I have been a tax-payer; I have invested some money in land in Wash- ington and have not seen a dollar come out of it; I have sent my children to the public schools; I have hung to straps in street cars, going both ways to the Capitol; I have bathed in the Potomac mud — in a bathtub; I have lunched at Harvey's on those steamed oysters, and I have been a fan with my friend "Sunny Jim" at the base-ball park and have had a love, and cultivated it with him, for tail-enders. And therefore, I claim that I have been through experiences that ought to give me some of the local atmosphere and some of the local feeling of Washington. And yet, with all that, gentlemen, as I look about here into these smiling faces, these somewhal rotund forms that give evidence of pros- perity, it is a little difficult for me to realize that it was about those "caitiffs" and those "slaves" that Mr. Justice Staf- ford spoke. In spite of my experience in Washington, I am a national- ist. This cii\ is ;1 home of the governmenl of a nation, and when men who were jusl as much imbued with the prin- ciples of civil liberty as any who have conic alter, Washington at the head, put into the Constitution the provisions with reference to the governmen t of the District of Columbia, they knew what they were doing, and spoke for a coming possible eighty millions of people, who should insist that the home of their government should be governed by their repre- sentatives; and that if there were in that eighty millions of people men who desired to come and share in the grandeur of that capital and live in a city of magnificent beauty as this was and enjoy all the privilege-, then they come with their eyes open as to the character of the government that they are to have, and they must know that they must depend not upon the principles ordinarily governing in popular government, but thai they must trust, in order to secure their liberty — to gel their guaranties — they must trust to the 82 PRESIDENTIAL ADDRESSES representatives of eighty millions of people selected under that Constitution. I want to say, with deference to this discussion, that if this meeting (or subsequent meetings) is to be devoted to securing an amendment to the Constitution, by which you are going to disturb the principle of two Senators from every State, and you are going to abolish the provision that was put in there ex industria by George Washington, you will not get ahead in the matter of better government in Washington by such meetings. I do not want to seem to be abrupt, but I believe it is possible by such meetings as this to arouse the interest of Congress and the Executive to the necessity of consulting the people of Washington, to let them act as Americans act when they don't have the right of suffrage — let them act by the right of petition ; and are they not exercising that right all the time ? Isn't it pos- sible to determine on the part of the committees of the House and the Senate what the attitude of the Washington citizens is ? Why, the government that we have to-day in Washington everybody admits is a good government. Has it not been brought about through the aid of those very committees in the House and Senate who you say know nothing about Washington, and who make their knowledge, or lack of knowledge, ridiculous by showing it ? We are all imperfect. We can not expect perfect government, but what we ought to do is to pursue practical methods, and not, I submit with deference to Justice Stafford, make it seem as if the people of Washington were suffering some great and tremendous load and sorrow, when as a matter of fact they are the envy of the citizens of other cities. Washington intended this to be a Federal city, and it is a Federal city, and it tingles down to the feet of every man, whether he comes from Washington State, or Los Angeles, or Texas, when he comes and walks these city streets and begins to feel that "this is my city; I own a part of this Capital, and I envy for the time being those who are able to spend their time here." I quite admit that there are defects AND STATE PAPERS 83 in the system of government by which Congress is bound to look after the government of the District of Columbia. It could not be otherwise under such a system, but I submit to the judgment of history that the result vindicates the fore- sight of the fathers. Now, I am opposed to the franchise in the District: I am opposed, and not because I yield to any one in my sup- port and belief in the principles of self-government; but principles are applicable generally, and then, unless you make exceptions to the application of those principles, you will find that they will carry you to very illogical and absurd results. This was taken out of the application of the prin- ciple of self-government in the very Constitution that was intended to put that in force in every other pari of the country, and it was done because it was intended to have the represen- tatives of all the people in the country control this one city, and to prevent its being controlled by the parochial spiril that would necessarily govern men who did not look beyond the city to the grandeur of the nation, and this as the repre- sentative of that nation. I have gotten over being frightened by being told that I am forgetting the principles of the fathers. The principles of the fathers are maintained l>\ those who maintain them with reason, and according to the fitness of the thing, and not by those who are constantly shaking them before the mass of the voters w hen they have no application. Now, the question arises: What shall we do with the governmenl of Washington? Shall we have the present board of three; shall we have one or shall we have some other form? I confess I do not know. My predecessor has recommended a change of the present form so as to give the responsibility to one, with the view to visiting that one with the responsibility. On the other hand, it is said that three have worked well; that it gives more opportunity, pos- sibly, for counsel, and that it takes away the bureaucratic character of the government. As 1 have said. I have reached no conclusion as to what recommendation I shall make to 84 PRESIDENTIAL ADDRESSES Congress on the subject. I fully concur with Justice Stafford in thinking that it would be most unwise to introduce into the District what I understand to be a bureaucratic form of government. That is right. A bureaucratic form of govern- ment is one which, as he very well described it, would make the War Department look after the streets; Dr. Wiley, pos- sibly, look after the health — the Agricultural Department through him — and the Treasury Department look after the finances. And so as to each branch of the government you should go to the head of that particular department in the general government. I think that would be a very burdensome, a very awkward, a very clumsy system of gov- ernment. I am strongly in favor of retaining the municipal form, so that everything which shall affect the city of Wash- ington shall be done under the chief executive of that city, and by that chief executive. In other words, I would give an entity to the city of Washington, or the District of Colum- bia, and take all of that entity out of the operation of the bureaus of the general government. That is what I under- stand to be the government to-day, and the only question that has been mooted is really whether one man should be put at the head of that government as a mayor, or whether you should have three. I agree that probably three men are better, where you have real legislative functions to per- form. I am inclined to think that, where the legislative functions are reduced to a minimum and consist in little more than mere executive regulation, possibly the one-headed form is the better, for executive purposes and to fix the responsibility; but I am only thinking out loud, and only because we are here talking right out in meeting I am tell- ing you the reasons as they have been brought to me. Now I want to talk about the future. And the future of Washington! What an enormous development is before us! Why, I am not an imaginative man, but I would like to come back here a hundred years hence and see the beauties of which this city is capable ! Right here, under our noses for a time, under our very eyes, are those beautiful Potomac AND STATE PAPERS 85 flats that are going to make as fine parks and parkways as there are in the world ! Those parks ought to be connected with the Rock Creek Park by means of the mouth of Rock Creek, or otherwise; and then through them all there ought to be carried a park clear around, including the Soldiers' Home, and completing the circuit with Rock Creek at the other end. Then, too, there is the development in Anacostia and along the Eastern Branch. Then, the opportunities for playgrounds that there are in Washington! It just makes my mouth water for my poor city of Cincinnati, when I look out and can see clear down to the Potomac and see six and seven baseball matches going on with all the fervor of Young America, and nobody to say them nay! And to think — to think that we had a genius a hundred years ago, almost, in his way, as matchless as Washington, to make the plan for a great Capital, whose remains were buried here the other day, and whose plans were hardly changed in the new plan made by Burnham and his associates. I know there has been discussion as to that plan. There has been a feel- ing that perhaps it was slipped on to us at one time, and at another; but we all know, even my dear friend, good old Uncle Joe, knows, that we are going to build up to that plan some day. It is not coming at once, but we ought to thank God that we have got a plan like that to build to so that when we go on with the improvement every dollar that we put in goes to make Washington beautiful a hun- dred years hence. Then, Justice Stafford, in his very eloquent remarks, called attention to the fact that in 184G — I am sorry to say it ought to be characterized, at least as far as that is con- cerned, as a day of small things — when the Congress could have recited this: "Whereas, no more territory ought to be held under the exclusive legislation given to Congress over the District, which is the seat of the general govern- ment, than may be necessary and proper for the purposes of such a seat. Therefore" — we give back all that we got from Virginia. It is true the early statute said that no buildings 8G PRESIDENTIAL ADDRESSES should be put on anything but the Maryland side of the river, and perhaps they felt that as we were not going to use that side for buildings, they did not need it at all. I have never been able to satisfy myself that that retrocession was within the power of Congress to make. They did attempt to settle it once in the Supreme Court, but the Supreme Court has a facility in avoiding the main question, born of long practice. And when a gentleman who is paying taxes on this side asks that they be extended to the other side, on the ground that that retrocession did not carry Virginia, so that he might have his taxes reduced, the Supreme Court says that he can not do it in a collateral way; says that, as both parties to the transaction seem to be satisfied up to this time, they do not intend to investigate or seek any bur- dens that their salaries do not require them to meet. We have never had that question tested. I believe we ought to look forward to a great city of Washington, and while the Anglo Saxon — and especially the Anglo Saxon in Virginia — holds on to territory as long as he can, it might be possible by agitating the question in a legal way to induce another settlement by which we should get the only part of that that we really would like to have, the part that we own now in fee, the eleven hundred acres of the Arlington estate, and a great deal that is unoccupied, leaving Alexan- dria out, and Falls Church, and taking in only that that is uninhabited, so that we may have in this District, under our fostering control, where we can build roads and make the District still more beautiful, that bank of the Potomac on the other side, as you go up toward Cabin John Bridge. We will need it; the city will continue to grow. It may be, as Justice Stafford has said, that there will be inaugurated a protest by the people living here that they have not political power; but I think that the Justice will find, when he comes to looking into the hearts of the American people, that they will not be convinced when they come to Washington that the Washingtonians are suffering to that degree that requires a reversal of the policy adopted, with entire clearness of mind AND STATE PAPERS 87 by the framers of the Constitution. Washington, who doubtless inserted that particular provision in the Constitu- tion, through his influence, also had L'Enfant draw the plans of Washington, and the plans of Washington were not adapted to a village like Alexandria and the village that was in the District at the time we came here — that was adapted to a city of magnificent distances, and to a city of millions of inhabitants; and therefore the clause was adopted, know- ing that jusl such a city we would have here, and just such a city would have to get along, relying upon the training in self-government of the representatives of eighty millions of people to do justice by it and its residents. Now. my dear friends. I want to say to you that I have got into ;i constitutional discussion here thai I did not anti- cipate, bul 1 hope it has not clouded my meaning, which I intended to make as clear as possible, that I am deeply inter- ested in the welfare of the District, I am deeply interested in securing good government to every man. woman and child in this District, and to secure so far as is possible, with the original plan under the Constitution, such voice as the people of the Districl may require in their local matters. Hut, when it comes to defining how that is to be given, I can not lie more explicit than to say it must rest ultimately on the right of petition. I do not see how you can do any- thing else. I am sure that if you will constantly agitate, and if you will have as eloquenl an orator as Justice Staf- ford talk to the committees of the House and Senate every year, he will rouse them to such a desire to save you from the "slavery" that he has pictured, that you will get the attention you deserve. VIII MESSAGE CONCERNING AFFAIRS IN PORTO RICO (MAY 10, 1909) To the Senate and House of Representatives: AN EMERGENCY has arisen in Porto Rico which makes it necessary for me to invite the attention of the Con- gress to the affairs of that island, and to recommend legisla- tion at the present extra session amending the act under which the island is governed. The regular session of the legislative assembly of Porto Rico adjourned March 11th last without passing the usual appropriation bills. A special session of the assembly was as once convened by the governor, but after three days, on March 16th, it again adjourned without making the appro- priations. This leaves the island government without pro- vision for its support after June 30th next. The situation presented is, therefore, of unusual gravity. The present government of Porto Rico was established by what is known as the Foraker Act, passed April 12, 1900, and taking effect May 1, 1900. Under that act the chief executive is a governor appointed by the President and con- firmed by the Senate. A secretary, attorney-general, treas- urer, auditor, commissioner of the interior, and commissioner of education, together with five other appointees of the President, constitute the executive council. The executive council must have in its membership not less than five native Porto Ricans. The legislative power is vested in the legislative assembly, which has two coordinate branches. The first of these is the executive council just described, and the second is the house of delegates, a popular and repre- ss PRESIDENTIAL ADDRESSES 80 sentative body, with members elected by the qualified electors of the seven districts into which the island is divided. The statute directing how the expenses of government are to he provided leaves some doubt whether this function is not committed solely to the executive council, but in prac- tice the legislative assembly has made appropriations for all the expenses other than for salaries fixed by Congress, and it is too late to reverse that construction. Ever since the institution of the present assembly, the house of delegates has uniformly held up the appropriation hills until the last minute of the regular session, and has sought to use the power to do so as a means of compelling the concurrence of the executive council in legislation which the house desired. In the last regular legislative assembly, the house of dele- gates passed a bill dividing the island into several counties and providing county governments; a hill to establish man- ual-training schools', a hill for the establishment of an agri- cultural hank; a bill providing that vacancies in the offices of mayors and councilmen be filled by a vote of the muni- cipal councils instead <»f by the governor, and a bill put- ting in the control of the largest taxpayers in each municipal district the selection in great part of the assessors of property. The executive council declined to concur in these bills. It objected to the agricultural bank bill on the ground that I he revenues of the island were not sufficient to carry out the plan proposed, and to the manual-training-school bill because in plain violation of the Foraker Act. It objected to the change in the law concerning the appraisement of property on the ground that the law was intended to put too much power, in respect of the appraisement of property for taxation, in the hands of those having the most property to tax. The chief issue was a bill making all the judges in municipalities elective. Under previous legislation there are twenty-six municipal judges who are elected to office. By this bill it was proposed to increase the elective judges from twenty-six to sixty-six in number, and at the same 90 PRESIDENTIAL ADDRESSES time to abolish the justices of the peace. The change was objected to on the ground that the election of municipal judges had already interfered with the efficient and impartial administration of justice, had made the judges all of one political faith and mere political instruments in the hands of the central committee of the Unionist or dominant party. The attitude of the executive council in refusing to pass these bills led the house of delegates to refuse to pass the necessary appropriation bills. The facts recited demonstrate the willingness of the repre- sentatives of the people in the house of delegates to subvert the government in order to secure the passage of certain legislation. The question whether the proposed legislation should be enacted into law was left by the fundamental act to the joint action of the executive council and the house of delegates as the legislative assembly. The house of dele- gates proposes itself to secure this legislation without respect to the opposition of the executive council, or else to pull down the whole government. This spirit, which has been growing from year to year in Porto Rico, shows that too great power has been vested in the house of delegates and that its members are not sufficiently alive to their oath- taken responsibility, for the maintenance of the govern- ment, to justify Congress in further reposing in them abso- lute power to withhold appropriations necessary for the government's life. For these reasons I recommend an amendment to the Foraker Act providing that whenever the legislative assembly shall adjourn without making the appropriations necessary to carry on the government, sums equal to the appropriations made in the previous year for the respective purposes shall be available from the current revenues and shall be drawn by the warrant of the auditor on the treasurer and counter- signed by the governor. Such a provision applies to the legislatures of the Philippines and Hawaii, and it has pre- vented in those two countries any misuse of the power of appropriation. AND STATE PAPERS 91 The house of delegates sent a committee of three to Wash- ington, while the executive council was represented by the secretary and a committee consisting of the attorney-general and the auditor. I referred both committees to the Secretary of the Interior, whose report, with a letter from Governor Post, and the written statements of both committees, accom- pany this message. I have had one personal interview with the committee representing the house of delegates, and suggested to them that if the house of delegates would pass the appropriation hills without insisting upon the passage of the other bills by the executive council, I would send a representative of the Government to Porto Rico to make an investigation and report in respect to the proposed legislation. Their answer, which shows them not to be in a compromising mood, was as follows: "If the legislative assembly of Porto Rico would be called to an extraordinary session exclusively to pass an appropri- ation bill, taking into consideration the state of affairs down the island and the high dissatisfaction produced by the intol- erant attitude of the executive council, and also taking into consideration the absolute resistance of the house to do any act against its own dignity and the dignity of the country, it is the opinion of these commissioners that no agreement would be attained unless the council feel disposed to accept the amendments of the house of delegates. "However, if in the proclamation calling for an extra- ordinary session the judicial and municipal reforms would be mentioned, and if the executive council would accepl that the present justices of the peace be abolished and municipal judges created in every municipality, and that vacancies occurring in mayorships and judgeships be tilled by the municipal councils, as provided in the so-called 'municipal bills' passed by the house in its last session, then the com- missioners believe that the appropriation bills will be passed in the house as introduced in the council without delay." 92 PRESIDENTIAL ADDRESSES Porto Rico has been the favored daughter of the United States. The sovereignty of the island in 1899 passed to the United States with the full consent of the people of the island. Under the law all the customs and internal-revenue taxes are turned into the treasury of Porto Rico for the mainte- nance of the island government, while the United States pays out of its own Treasury the cost of the local army — i. e., a full Porto Rican regiment — the revenue vessels, the light- house service, the coast surveys, the harbor improvements, the marine-hospital support, the post-office deficit, the weather bureau, and the upkeep of the agricultural experi- ment stations. Very soon after the change of sovereignty a cyclone des- troyed a large part of Porto Rican coffee culture; $200,000 was expended from the United States Treasury to buy rations for those left in distress. The island is policed by 700 men, and complete tranquillity reigns. Before American control 87 per cent, of the Porto Ricans were unable to read or write, and there was not in this island, containing a million people, a single building constructed for public instruction, while the enrolment of pupils in such schools as there were, 551 in number, was but 21,000. To-day in the island there are 160 such buildings, and the enrolment of pupils in 2,400 schools has reached the num- ber of 87,000. The year before American sovereignty there was expended $35,000 in gold for public education. Under the present government there is expended for this purpose a total of a million dollars a year. When the Americans took control there were 172 miles of macadamized road. Since then there have been con- structed 452 miles more, mostly in the mountains, making in all now a total of 624 miles of finely planned and admir- ably constructed macadamized roads — as good roads as there are in the world. In the course of the administration of this island, the United States medical authorities discovered a disease of tropical anaemia which was epidemic and was produced AND STATE PAPERS 93 by a microbe called the "hook worm." It so much impaired the energy of those who suffered from it, and so often led to complete prostration and death, that it became necessary to undertake its cure by widespread governmental effort. I am glad to say that 225,000 natives, or one-fourth of the entire population, have been treated at government expense, and the effect has been much to reduce the extent and severity of the disease and to bring it under control. Substantially every person in the island has been vaccinated and small- pox has practically disappeared. There is complete free trade between Porto Rico and the United States, and all customs duties collected in the United States on Porto Rican products subsequent to the date of Spanish evacuation, amounting to nearly $3,000,000, have been refunded to the island treasury. The loss to the revenues of the United States from the free admission of Porto Rican products is $15,000,000 annually. The wealth of the island is directly dependent upon the cultivation of the soil, to cane, tobacco, coffee, and fruit, for which we in America provide the market. Without our fostering benev- olence the business of Porto Rico would be as prostrate as are some of the neighboring West Indian Islands. Before American control the trade balance against the island was over $12,500,000, while the present balance of trade in favor of the island is $2,500,000. The total of exports and imports has increased from about $22,000,000 before American sovereignty to $56,000,000 at the present day. At the date of the American occupation the estimated value of all agricultural land was about $30,000,000. Now the appraised value of the real property in the island reaches $100,000,000. The expenses of government before American .control were $2,969,000, while the receipts were $3,644,000. For the year 1906 the receipts were $4,250,000, and the expenditures were $4,084,000. Of the civil servants in the central government, 343 are Americans and 2,548 are native Porto Ricans. There never was a time in the his- tory of the island when the average prosperity of the Porto 94 PRESIDENTIAL ADDRESSES Rican has been higher, when his opportunity has been greater, when his liberty of thought and action was more secure. Representatives of the house of delegates insist in their appeals to Congress and to the public that from the stand- point of a free people the Porto Ricans are now subjected under American control to political oppression and to a much less liberal government than under that of Spain. To prove this they refer to the provisions of a royal decree of 1897, promulgated in November of that year. The decree related to the government of Porto Rico and Cuba and was undoubt- edly a great step forward in granting a certain sort of auton- omy to the people of the two islands. The war followed within a few months after its promulgation, and it is impos- sible to say what its practical operation would have been. It was a tentative arrangement, revocable at the pleasure of the Crown, and had, in its provisions, authority for the governor-general to suspend all of the laws of the legisla- ture of the islands until approved or disapproved at home, and to suspend at will all constitutional guaranties of life, liberty, and property, supposed to be the basis of civil liberty and free institutions. The insular legislature had no power to enact new laws or to amend existing laws governing prop- erty rights or the life and liberty of the people. The juris- diction to pass these remained in the hands of the National Cortes and included the mass of code laws governing the descent and distribution and transfer of property and con- tracts, and torts, land laws, notarial laws, laws of waters and mines, penal statutes, civil, criminal, and administrative procedure, organic laws of the municipalities, election laws, the code of commerce, etc. In contrast with this, under its present form of government the island legislature possesses practically all the powers of an American commonwealth, and the constitutional guar- anties of its inhabitants, instead of being subject to sus- pension by executive discretion, are absolutely guaranteed by act of Congress. The great body of substantive law now AND STATE PAPERS 95 in force in the island — political, civil, and criminal code, codes of political, civil, and criminal procedure, the revenue, municipal, electoral, franchise, educational, police, and public- works laws, and the like — has been enacted by the people of the island themselves, as no law can be put upon the statute books unless it has received the approval of the representative lower house of the legislature. In no single case has the Congress of the United States intervened to annul or control acts of the legislative assembly. For the first time in the history of Porto Rico the island is living under laws enacted by its own legislature. It is idle, however, to compare the political power of the Porto Rictus under the royal decree of LS!)7, when their capacity to exercise it with benefit to themselves was never in fact tested, with that which they have under the Foraker Act. The question we have before us is whether their course since the adoption of the Foraker Act does not show the necessity for withholding from them the absolute power given by that act to the legislative assembly over appro- priations, when the house of delegates, as a coordinate branch of that assembly, shows itself willing and anxious to use such absolute power, not to supporl and maintain the government, but to render it helpless. If the Porto Ricans desire a change in the form of the Foraker Act. this is a matter for congressional consideration dependent on the effect of such a change on the real political progress ie th : island. Such a change should be sought in an orderly way, and not brought to the attention of Congress by paralyzing the arm of the existing government. 1 do not doubt that the terms of the existing fundamental act might be improved, cer- tainly in qualifying some of its provisions as to the respective jurisdictions of the executive council and the legislative assembly; and I suggest to Congress the wisdom of sub- mitting to the appropriate committees this question of revision. Rut no action of this kind should be begun until after, by special amendment of the Foraker Act, the abso- 96 PRESIDENTIAL ADDRESSES lute power of appropriation is taken away from those who have shown themselves too irresponsible to enjoy it. In the desire of certain of their leaders for political power Porto Ricans have forgotten the generosity of the United States in its dealings with them. This should not be an occasion for surprise, nor in dealing with a whole people can it be made the basis of a charge of ingratitude. When we, with the consent of the people of Porto Rico, assumed guardianship over them and the guidance of their destinies, we must have been conscious that a people that had enjoyed so little opportunity for education could not be expected safely for themselves to exercise the full power of self- government; and the present development is only an indi- cation that we have gone somewhat too fast in the extension of political power to them for their own good. The change recommended may not immediately convince those controlling the house of delegates of the mistake they have made in the extremity to which they have been willing to resort for political purposes, but in the long run it will secure more careful and responsible exercise of the power they have. There is not the slightest evidence that there has been on the part of the governor or of any member of the execu- tive council a disposition to usurp authority, or to withhold approval of such legislation as was for the best interests of the island, or a lack of sympathy with the best aspirations of the Porto Rican people. IX ADDRESS AT THE UNVEILING OF THE PENN- SYLVANIA MEMORIAL, AT PETERSBURG, VIRGINIA (.MAY 19, 1909) My Fellow Citizens: WE ARE met to-day on the soil of Virginia to dedi- cate a memorial to the bravery of the sons of Pennsylvania exhibited in a contest to the death with the sons of Virginia and the South. We stand here in the center of the bloodiest and most critical operations of the last year of the civil war, only a few miles distant from that dramatic scene at Appomattox between Grant and Lee, which marked the great qualities of the heart and soul of each, and which was the real end of the terrific struggle between the two sections. Here, in and about Petersburg, the outworks of Richmond, the home of the Confederacy, were carried on those besieging operations begun late in the spring of 18(>t and continued with the courage and the tenacity of purpose characteristic of the Federal commander for nearly a year, and resisted with the bravery and strategy and wealth of expedient of the Confederate leader until the forces of the South, worn out by the constant assaults and the incessant hammering, were compelled to yield to the greater numbers and the greater resources of the North. To Pennsylvania, as one of the great States of the Union, engaged in the determination to save it, fell the burden of furnishing tens of thousands of men for the struggle in every part of the line of attack; but especially in the Army of the Potomac was the force of her people and their devotion to the cause felt. Besides her serried columns, she contributed 97 98 PRESIDENTIAL ADDRESSES to the Union army, Major-General George C. Meade, the commander of the Army of the Potomac; four corps com- manders, Hancock, Humphreys, Birney, and Parke, together with Gregg, the commander of the cavalry division — a roster of which she may well be proud. The mine under the Petersburg works which was success- fully exploded in the early summer of '64 was the work of the miners of Pennsylvania enlisted in the 48th Regiment of that State, and the work which was done by them called for special mention in the dispatches of General Meade. In the operations in and about Petersburg, from the early summer of '64 until the surrender at Appomattox in '65, there were engaged from Pennsylvania upward of eighty thousand men, a larger number than now constitutes the army of the United States. Upon the 25th of March, 1865, General Lee determined to make an assault upon the Federal besieging lines east of the town, and successfully carried them by attack of a division under General Gordon, only to be ultimately defeated by the attack offered by Hart- ranft's two Pennsylvania brigades. These brigades had just been recruited and might have been expected to yield to the terrific onslaught of the Confederate veterans; but, taking on the stubbornness and courage of their great brigade commander, they withstood the battle and turned the enemy and added to the martial renown of the Keystone State. It is forty-four years since the battle of Fort Stedman and the subsequent victory of the Hartranft brigade. In the time which has passed, the bitterness of the internecine struggle has passed away, and we now treasure as a common heritage of the country the bravery and the valor of both sides in that controversy. A memorial which marks the stead- fastness, the courage, and the soldierly qualities of the forces engaged in defense of the Union, finds its true significance and meaning in the corresponding bravery and courage of those with whom the battle was fought. The Army of the Potomac under Grant and Meade was AND STATE PAPERS 99 seconded and supported by a generous government. Con- stant reinforcements, generous supplies of food and cloth- ing, needful fuel and shelter, the tender ministrations of phy- sicians and nurses, and frequent communication with home and friends — all these abounded in the Union lines. It was hardly so with the Confederate forces. Scantily clothed, rarely on more than half-rations and for considerable periods reduced to an allowance of bacon and meal hardly suffi- cient to sustain life, the long winter through, their shiver- ing infantry manned the ever-extending siege works, and made head against the vigorous assaults of the Union army until their depleted ranks were not longer equal to the defense of their attenuated lines and they gave up the con- test which by any other soldiers but the tried and seasoned veterans of the Army of Northern Virginia would long before have been abandoned. We could not dedicate this beautiful and enduring memorial to the volunteer soldiers of Pennsylvania with such a sense of its justice and appro- priateness, had they not been confronted by an enemy capable of resisting their assaults with equal valor and forti- tude. Pennsylvania's pride must be in the victory achieved by her men against so brave, resolute and resourceful an enemy. That we can come here to-day and in the presence of thousands and tens of thousands of the survivors of the gallant army of Northern Virginia and of their descendants, establish such an enduring monument by their hospitable welcome and acclaim, is conclusive proof of the uniting of the sections and a universal confession that all that was done was well done, that the battle had to be fought, that the sec- tions had to be tried, but that in the end, the result has inured to the common benefit of all. The men of the Army of Northern Virginia fought for a principle which they believed to be right and for which they were willing to sacrifice their lives, their homes — all, indeed, which men hold most dear. As we recognize their heroic services, so they and their descendants welcome the great 100 PRESIDENTIAL ADDRESSES commonwealth of Pennsylvania to the soil of Virginia and join that commonwealth in honoring the services rendered by its gallant sons in the struggle for the preservation of the Union. The contending forces of now half a century ago have given place to a new North and a new South, and to a more enduring union in whose responsibilities and whose glorious destiny we equally and gratefully share. X ADDRESS AT THE AUDITORIUM, CHARLOTTE, N. C. (MAY 20, 1909) Governor Kitchin and Ladies and Gentlemen of the Carol mas: ONE of the embarrassments that attends the intense pleasure I have in coming into the Southland is the consciousness that I will have to do some speaking, and that you are so used to eloquence of the highest order that I have to submit myself to a comparison that is always invidious. lam here this afternoon merely to talk to you. What I have to say will not rise to the dignity of a speech. In the first place, I should like to express my sincere gratitude to the Governor of your State, to the Senators of your State, and to the Representatives of your State, who have done me the honor to be present on this occasion, and to give me welcome. I should like to include, too, those members of the Confederate veterans, those members of the Grand Army of the Republic, those members of the Daugh- ters of the Revolution, that distinguished lady, the widow of Stonewall Jackson, and all the other charming and delight- ful people who exposed themselves to the elements this morn- ing to celebrate this day, and in part, I hope, to give me welcome. I wish also to express to the committee of arrangements my deep regret that Mrs. Taft was not able to be present to share the welcome which your committee was good enough to tender her. I assure you I do not make nearly so good a show when the better half of my firm is not with me. We are here to celebrate a declaration of independence. 101 102 PRESIDENTIAL ADDRESSES There are some unregenerate persons who live in South Carolina and elsewhere who for various motives have cast a doubt upon the claim. Now anybody that comes to Charlotte who is not willing to admit in the full the declara- tion of independence made in Mecklenburg, is in the position of a man of whom a Lord Justice of the Court of Appeals of Ireland told me. I met him in Canada. He had a good deal of experience in courts, and he was redolent with Irish stories. He said that he was holding court in the County of Tipperary, and that a man came before him and a jury charged in the indictment with manslaughter, and that the evidence showed that the deceased had come to his death by a blow from a blackthorn stick in the hands of the defend- ant; but the evidence also showed that the man who died had a "paper skull," as it is called in medical parlance — unduly thin. The verdict brought in was that of "guilty of manslaughter," and his lordship called the man before him and asked him whether he had anything to say why the sentence of the court should not be pronounced upon him. The defendant, turning to his lordship, said: "No, your Lordship, I have nothing to say, but I would like to ask one question." "What, my man, is that?" said he. "I would like to ask: What the divil a man with a head like that was doing in Tipperary." I would like to ask in explan- ation of my position, what the "divil" a man who does not believe in the declaration at Mecklenburg is doing in this presence. The claim is that more than twelve months before the members of the Continental Congress declared that it was necessary to have a separate and independent gov- ernment in this country, free from British control, that declaration was made in the court-house in this town of Charlotte, by a committee of the County, of whom there are now descendants living among you entitled to your respect and to your congratulation on such ancestry. There is a controversy as to what the exact words were that were used in that declaration. I am not going to enter upon AND STATE PAPERS 103 any such discussion, but I am going to point out what seems to me to be, whether you take one version or the other, the very important part of that declaration viewed from the standpoint of practical patriotism and practical states- manship. The general declaration as to the rights of man I do not count nearly so important, looked at from the standpoint of the responsibility of the people who made it, as the practical provision contained in that declaration for a government which was to succeed the British Govern- ment, and to accept all the responsibilities, to maintain a government of law and order, and a government which should have a military force to defend itself. My friends, these general declarations unaccompanied by some sense of the responsibility of self-government are worth little or nothing. It is the men who go forward knowing what they are doing when they are culling off their relation to one government, and understand that the only justification for so doing is the preparation and the practical preparation of a new government. That is what makes Anglo-Saxon liberty; that is what has distinguished our race for a thou- sand years, that we dealt witli what was practical and not with what was poetical and oratorical and rhetorical. I want to call your attention in enforcing what I am talking about to the guaranties of lite — the guaranties as we know them in the Constitution, of life, liberty and prop- erty. They consist not solely in general resolutions, that we believe in liberty, and we believe every man ought to be free, and we believe that he ought to be treated justly, and we believe he ought not to be imprisoned except lawfully. Is that all? No. That is not all we have in our Constitution. If that is all we had, it would not be worth the paper it is written on; it would not be worth more than the hundred constitutions that have been made in various countries, whose names it would be invidious to mention, which con- stitutions have gone down and haven't made a ripple on the ocean of civilization. What is it in the Constitution of the United States inherited from our British ancestry that 104 PRESIDENTIAL ADDRESSES makes that instrument and all the instruments of the State constitutions so valuable ? It is that each guaranty is a practical method of procedure by which the liberty and the rights of the individual are secured. What are they ? The writ of habeas corpus. What is that ? That is a method of procedure. It is a method by which a man when he is im- prisoned has the right to go to any judge and say to that judge: "I wish you to call my captors here and have them tell you whether I am lawfully imprisoned or not," and if that judge does not do it, he creates a right to action against himself which usually involves imprisonment. That is a practical method. It is a procedure. It is not a general declaration. It is something that everybody can tell about. I am a little more emphatic about this because I have come up against the other kind of declarations in some of my experiences in the Philippines. A gentleman came to see me one morning, the leading counsel in Manila, who had drafted the constitution of the Philippines, and at the same time an old man came in with a petition to me. I was then Chairman of the Philippine Commission, and the petition showed that this old man's son had been six years in Bilibid, imprisoned without a trial, and without knowing what he was there for. I said to the lawyer, "Why don't you get out a writ of habeas corpus?" He said: "What is that writ?" I said: "It is a petition inquiring into the lawful- ness of his imprisonment, and General Otis has issued the order granting that writ or the allowance of that writ, and you can have it here." He asked me to draw up a petition, which I did, and he took it into one of the local courts, which happened to be presided over by an American. He went out to Bilibid prison and before he got through that day he had filed ninety petitions for the writ of habeas corpus to release people at Bilibid prison who had been there from four to ten years. When they heard at whose instance he had gotten them out, they wanted to attend in a mass and come and thank me at my house. I expressed my appre- ciation of their gratitude, but as I was not quite sure but that AND STATE PAPERS 105 half of them ought to have been where they were anyhow, I excused them from coming and received an acknowledg- ment in the form of a table ornament, such as they give in the Philippines, which consists of a bundle of toothpicks. Togo on, the writ of habeas corpus is one thing; an indict- ment by grand jury is another. That is mere procedure. That is not a general right. It is a mere form of procedure. The right of trial by jury is another form of procedure. Then there is the 14th amendment and the other, the 1,5th amendment to the Constitution, which accords to every one the right not to be deprived of his property without due process of law. That does not say that you are not to be deprived of your property unjustly. You may be. All that says is that you shall have a hearing before a tribunal, and that if a man is going to rob you he has got to rob you in a regular way. Now, that is practical. The Anglo- Saxon ancestor knew that if he could once get it before court he would have "a show for his white alley," that he would have a day in that court, and that that was the true basis of civil liberty. So it is with the declarations that were made at Mecklenburg. You go over them and see that they create selectmen, they create military guards, they create courts with jurisdiction, they create courts to make collection of debts, and they made every provision which a single com- munity like this could make, together with commitments for felony, to await the decision of courts to be created by the highest authority under the authority of the (Jeneral Congress. Now, there are tilings in that declaration that make me thrill with pride that there was a community in this country — and I venture to say this was not the only com- munity, but it seems to have been the one most charged with its sense of responsibility — which knew that self-government was not a mere gift, but it was something which when it is to be enjoyed must be enjoyed with a full sense of the respon- sibility of those enjoying it, and with the idea that there is a duty imposed on every one who enjoys it of seeing to it that it is carried on for the benefit of all. 10G PRESIDENTIAL ADDRESSES The Scotch-Irishmen who lived in this community were hard-headed. They were willing to take upon themselves the risk of being strung up as traitors to Great Britain; they were willing to fight it out, as they did so often there- after in the Hornet's Nest; but they recognized their respon- sibility as citizens and as individuals, that if they went into the business of self-government, they must make that government worthy of the name. Now, it is a fact that by reason of the lax government which Great Britian was able to give our colonies — I say lax — it was lax, though it was unjust by fits and starts — our ancestors were the best- prepared people for self-government that ever assumed an independent government. They had had two hundred years of independence in the sense of distance from the home government. When brought to mind they were attacked occasionally by such tyranny as Governor Tyrol manifested in North Carolina and as was manifested by other governors at different times throughout the other colonies, but all that time we were gathering experience, we were gathering a sense of responsibility as to our own commun- ities so that when in '75 you declared your independence here, and in '76 we all declared our independence at Phil- adelphia, we were in a condition with men as great, as able, as full of the knowledge of statecraft as any nation in Europe or any nation that ever lived, to step into the ranks of nations and carry on a government worthy the consideration of the entire world. Now, we have had a great deal of experience since that time. We have been through a number of wars. We watched the institution of slavery grow by unfortunate circumstances until it seemed to be an issue that had to be fought out, and that we could not cure the body politic except by an excision that threatened the whole physical structure of the nation. But we have lived that through. You in the Southland had the troubles, the suffering, the sad losses burned into your hearts with much more emphasis than we in the Northland, because here was the center of the war. And it is entirely natural that in that forty years which have AND STATE PAPERS 107 succeeded the war, with the continuance here of the race whose fate was the cause of the war, that their condition, even after the magnanimous spirit shown on both sides at Appomattox was manifested to the world, there should con- tinue a bitterness of feeling that time and long time could only erase; but when we look back I think we must con- gratulate ourselves that even in that time the feeling has largely disappeared, and that we are now a more united country than ever since — I should say even decades before — the war. One could not stand, as I did, on the platform yesterday, and see 1,200 Union veterans from Pennsyl- vania wiio had taken part in the battles about Petersburg, meet and fraternize with five hundred veterans of the Con- federacy in their gray, and hear the expressions of mutual esteem and mutual appreciation of the bravery on both sides and the desire to further unite, without being convinced that that is a sincere and a deep-rooted feeling on both sides. It is true that political divisions have continued in such a way as at some times to seem to perpetuate the lines which were made at the time of the war, but even those lines are rapidly disappearing; and it is the duty of all of us with respect to political partisanship to wipe out those lines as far as we can, and to see, so far as we may, that in each State the tolerance of opinion shall continue until there shall be respectable parties on both sides of the line, because it is essential to have a good opposition to have a good government. Now, if there is anything that I can do in my administration to make that feeling of union more close, I shall do it. When I was run- ning for the presidency, I prided myself on having been the first Republican candidate that ever came into North Caro- lina seeking suffrages for the Republican Party. I did not carry the State, but I had a mighty good time. I am anxious, of course, speaking from a partisan standpoint and leaving my official position for a moment, that the Republican party of North Carolina should be strengthened merely to have a good fight every election, and, of course, in so far 108 PRESIDENTIAL ADDRESSES as I may legitimately, I should be glad to build up the Repub- lican Party. Now, I understand that some of my Republican friends think that I have lost sight of the Republican Party in putting on the Federal Bench in North Carolina, a gen- tleman recently upon the Supreme Bench of the State, a lawyer of the highest eminence and learning and integrity, and a Democrat. I promised, after I was President-elect — not before the election — to the South that I would do the best I could to wipe out the feeling that the central Government at Washington was a government alien to the Southland, and I pointed out that the only way by which the Executive could cure that feeling was, in so far as in him lay, to put into office men in whom the community at large, without regard to party, would have the highest confidence. Now, I am trying to do that, and I am going to appoint Republicans and I am going to appoint Democrats, striv- ing in each case to get a man who will commend himself to the community in which he lives. It is suggested that it is an insult to the Republicans of a district to appoint a Demo- crat a Judge because from that is to be inferred that there is no Republican worthy of the appointment, and I under- stand that there are some gentlemen in the Democratic party who are willing to make that inference as strong as possible, in order to stir up Republican dissatisfaction. But I venture to say that when the whole account is added up, that spirit will have disappeared and the Democrats who seek to utter it will find that it is not such a popular method of attacking the Republican Administration after all. I plead to my Republican friends as a vindication and justification for my course, the course of as orthodox a Repub- lican as ever filled the executive chair, and a man than whom there never was a President who did so much to maintain the standard of the Federal Judiciary, Benjamin Harrison, for he deemed it his duty to put one Democrat on the Supreme Bench and two on the Circuit Court of Appeals. The Federal Judiciary, my dear friends, to my mind is the strongest bul- wark that we have in all this country to protect ultimately AND STATE PAPERS 109 our institutions of civil liberty. It is the guaranties of civil liberty in the Federal Constitution that we must love and must hug to our bosom if we continue this civilization. Therefore there is no more sacred duty that the Executive has than in the selection of men whose appointment and service on the Bench will strengthen it with all the people at large; and therefore ordinary considerations of political partisanship have much less application to the appointment of judges than they do to other and temporary offices. The Federal Judiciary should be as much appreciated in the South as it is in the North, and if I have an opportunity to make any appointments in the South, it will continue to be the chief duty I have to make such appointments as shall appeal to all the people whether they be Republican or Democrat, and I urge all citizens whether they be Repub- licans or Democrats, to accept the appointments made as men, if they are men, who will carry on I heir high duties with a single eye to the administration of justice. to accept them, and congratulate the people on their appointment, and not to make use of them for any partisan argument or partisan appeal. But now, my dear friends, I have got to the end of my speech, I believe. I think not that we are at a point where there is to be political revolution in the South. I never had such a dream, but I believe we are on the eve of such a condition in the South that there shall be complete tolerance of opinion, and that there shall grow into respectable power an opposition in each State which shall tend to the betterment of the Gov- ernment as it exists in the State, which shall give us occasionally, as you have already given us in North Carolina, a Republican in a crowd of Democrats, in order that we may have represented in the Congress at Washington your views without regard to some past issue, without regard to the ghost of an issue that really ought not to influence you in enforcing those particular economic views that you really entertain. Let me again say to you how my heart has been 110 PRESIDENTIAL ADDRESSES aroused by the cordiality of your reception, by the non- partisan welcome of your distinguished Governor and your Congressmen and your Senators, whether Republicans or Democrats, and to say to you that I haven't spoken here con- sciously a word to influence you in a partisan way, but it is impossible to discuss the conditions without mentioning the parties. I hope you will, therefore, forgive me for an apparent reference to political conditions when I am really only extending to you the right hand of fellowship as Ameri- cans, explaining possibly by inference some of the diffi- culties of conducting this Government as its Chief Executive. I thank you ! XI ADDRESS AT HOWARD UNIVERSITY WASHINGTON, D. C. (.MAY 26, 1909) Mr. President, and Young Ladies and Gentlemen of the Graduating Class: I HAVE a good many engagements and I am tempted into them sometimes — before the engagements are to be met and the work is to be done — by such a mellifluous and forceful gentleman as your President; and then I am not reminded of the obligation thus assumed until I pick up the morning paper and find myself advanced as one of the chief attractions at some meeting where I don't feel myself at all as entitled to figure in that capacity. When your President came to me and asked me to come to Howard University he said thai he expected to celebrate the laying of the cornerstone of a new building here, given by Mr. Carnegie, and that incidentally there would be commencement exercises. I am a fairly good hand at a trowel and I thought possibly I might engage in the exercises of laying the cornerstone without being involved in a speech. But I find it to be otherwise. Nevertheless, 1 am glad to seize the opportunity of looking into your faces, you young men and women who are about to go out into the world and meet the obstacles which are before you and to overcome them successfully, as I sincerely hope you may. 1 am glad to be able to be here to testify to you my profound sympathy in your careers and my hope that they all may be successful. This institution here is the partial repayment of a debt- only partial — to a race to which a government and the people of the United States are eternally indebted. They ill 112 PRESIDENTIAL ADDRESSES brought that race into this country against its will. They planted it here irretrievably. They first put it in bondage and then they kept it in the ignorance that that bondage seemed to make necessary, under the system then in vogue. Then they freed it and put upon it the responsibilities of citizenship. Now, some sort of obligation follows that chain of facts with reference to the people who are responsible for what that government did. The obligation would be clearer, or rather, the method of its discharge would be easier, were it not for our constitutional system which throws generally upon the States the burden of education and leaves to the general government only certain limited jurisdiction with respect to the people. However, in so far as the District of Columbia is concerned, and the establishment of institutions of learning in this District, we are free from any embarrass- ment with respect to the carrying out of the obligation, and it is fitting that the Government of the United States should assume the obligation of the establishment and maintenance of a first-class University for the education of colored men. I am far from saying — and I wish to put in this caveat in advance, in order not to be met by an argument which has weight but has not weight when improperly used — that the colored race to-day, all of them, would be better off if they all had university education. I think they would be in a very bad way if they had, because they would not know how to use it and they would not find means of using it. No race would be better off if they were all educated as university men. The great body of the colored race, as the great body of the white race, must depend for their livelihood upon their manual labor, skilled or unskilled, or upon some occu- pation which requires less education than that which is conferred by a university, and if it is too widely extended, the effect of it is to put a lot of men into life who do not find occupations which are suited to their tastes, and to make them unhappy and really not fit for the life which is before them. On the other hand, that admission is far from a concession that it is not necessary for the success of the colored race that AND STATE PAPERS 113 there be among them leaders of that race fitted by university education for that leadership. There is not any likelihood, with deference to persons who occupy a different position, that either in the generosity of the general government or in the generositv of individuals who found colored colleges and universities, there is to be such an opportunity given as is likelv to lead too many colored men to acquire university education as compared with the number of colored men that there are in the community and especially south of Mason and Dixon's line. The opportunity that there is for educated colored men to aid their race in the struggle before them for economic success and the maintenance of themselves as worthy and valuable members of the com- munity — the opportunity that there is for university men among colored men to a^>i>t in that movement, I say is very great indeed. Through the South one of the things that is essential is the cultivation of greater sanitation and greater attention to the laws of hygiene among the colored race. What they need in the South is a greal many more physicians of their own color and race to tell them how to live and to enable them to recover when they are subject to the many >icknesses to which they are subject by reason of the kind of life they lead in the South. 1 have had occasion to look into it and I am glad to oiler to the young doctors to whom I am address- ing myself an opportunity for a successful livelihood as physi- cians in the growing Southern communities where there are so many colored people coming to the front and where physi- cians well educated are able to make a good livelihood on the one hand, and on the other to do a substantial good to their race. The benefit that teachers educated here can do to their race goes without saying. Of course, the basis of the edu- cation of the colored people is in the primary schools and in the industrial schools — in schools framed after Hampton and Tuskegee and even those less ambitious, but still furnish- ing an industrial department. In those schools must be 114 PRESIDENTIAL ADDRESSES introduced teachers from such university institutions as this, and it is in furnishing the material for the faculties of those smaller — not smaller, but less ambitious schools — that such an institution as this shall have its chief function. Then, too, among the colored race, the ministers have a great influence. Now, if they are to wield that influence they can not be too highly educated; they can not know too much in order that they may carry on their sacred function and discharge it to the highest benefit of the race. I say these things with a good deal of emphasis because I know there are many who dispute the wisdom of large con- tributions to universities of the colored race like this, and at one time I was very much perplexed with the argument to know whether or not it was proper. But what is the fact ? There are several universities in this country, besides Howard University, devoted to the colored race; those are Lincoln, Fisk, Atlanta, Talladega and Wilberforce, and they have not, taken together, an endowment that exceeds $250,000. Now, when you consider that there are ten millions of Negroes in this country, you see how utterly inadequate, even for the education of the leaders, those universities, together with this, are; and there is opportunity for the founding of more, or certainly for the enlargement of this, as Congress and the people of the United States shall understand the useful part that this institution and institutions like it play in the real uplifting and onward progress of the race. I am delighted to think, because I have been in the South a good deal of late and have studied some of the conditions there, that they are getting better and better for the Negro race in certain respects that are not published to the world, but that really affect very much the conditions of those who live there. In all the growing communities of the South — I mean where there is a touch of the modern and a touch of progress and a touch of civilization — the white men of progress are beginning to appreciate the advantage of having a class like the colored men that they have there. They are anxious that they have an industrial education. They are AND STATE PAPERS 115 anxious that they should make their way in the world and show their usefulness in the community. The truth is that the greatest hope that the Negro has, because he lives chiefly in the South, is the friendship and the sympathy of the white men with whom he lives in that neighborhood. I know it is not the habit to think so, but it is growing, and one of the things that misleads us most is the desperate, the extreme statements of white men from the South on the subject, but really they don't mean what they say. They are the last people that want to be taken literally. They have a theory that it may give them sometimes a little boost politically to talk in extremes and superlatives, but I have heard expressions from leading Negroes in various cities that confirm my judgment that the situation is growing better and better. I remember hearing the Reverend Dr. Walker, that Negro who went abroad and preached in Spurgeon's pulpit and was worthy to preach in that pulpit, express his friendship for the white people of Augusta where I spent five or six weeks, and express his view of the proposition that the Negro race should be moved to sonic other country than this. He said they were mighty well satisfied to live in Augusta until they went to glory, and that they did not want to go any where else until they did go to glory. Thai is the same sentiment I found in Charlotte and in Petersburg. I don't mean to say that there are not exceptions. 1 mean to say that those communities thai are moving forward are moving forward with a keen eye to progress and that they realize the advantage they have in the presence of the Negro race who are almost their only laborers. We have a gentleman at the head of the Jeanes trust fund who tells a good story. He said he was in one of the towns — I think it was in North Carolina — where they were bring- ing in some Italian immigrants and that an old colored man there inquired as to what they were doing. lie said they were white men who had come into the country from abroad. "Why," he said, "we's got white men enough already to work for — we can't do no more." Now, the fact is that 116 PRESIDENTIAL ADDRESSES the progress of the race is outlining itself with great clearness, to me at least, in making itself a useful part of the community where it is, so that it shall not only awaken an altruistic spirit, or spirit of humanity, but, what is a good deal better to tie to, shall awaken the economic spirit of those with whom you live and who value your services as members of the com- munity and know how much you add to its success by being there and being valuable members of that community in accumulation, in your providence and in making the homes that are made in a successful community of Negroes in the South. It seems to me that the future is in the hands of the race itself. I do not mean to say that cruelties are not to exist in the future, and injustices, and a great many reasons why complaints should be made against the inhumanity of man, but I do mean to say that there never has been a time in the history of the Negro race when the future offered such a basis for belief in your success as a race and for the belief that you have it in your hands to make that success as it is to-day. Everything that I can do as the Executive in the way of helping along this University I expect to do. I expect to do it because I believe it is a debt of the people of the United States, it is an obligation of the Government of the United States, and it is money constitutionally applied to that which shall work out in the end the solution of one of the great problems that God has put upon the people of the United States. XII ADDRESS AT THE RODELPH SHALOM TEMPLE, PITTSBURG, PA. (.MAY 29, 1909) My dear Friends: I DO not claim to conform very strictly to religious ob- servances, but it has remained for the city of Pittsburg to bring me to church, both on Saturday and on Sunday. I esteem it a great privilege to appear before this intelligent and patriotic audience — at the instance of your leader, your Rabbi, who was a warm friend of my predecessor, and who, I am glad to think, has transferred his friendship for the time to me. I am nol altogether out of place in a Jewish tabernacle, for the church that I attended in Cincinnati, in my boyhood and young manhood, was immediately next to the .Jewish tabernacle of the Reverend Dr. Wise; and there were times in the history of both churches when there was an exchange between the pulpits. I am glad to be here this morning — this beautiful morning and in this beautiful church — -to show if possible by my presence how this is a Government of all the people, and how the Constitutional provision that there shall be no religious requirement or qualification for office or citizenship in this country is evidenced by the presence of the President of the United States in a Jewish tabernacle, where he feels himself as much at home and with as much support as he does in any other church in the country. The prayer to which we just listened, full of that liberality and love of humankind, makes one feel ashamed of all narrowness and bigotry in religion, and it gives me the great- est pleasure to say, as 1 do from the bottom of my heart, 117 118 PRESIDENTIAL ADDRESSES that never in the history of the country, in any crisis and under any conditions, have our Jewish fellow citizens failed to live up to the highest standard of citizenship and patriotism. I thank your Rabbi, and I thank you, for the opportunity to appear before you and say this much. I am not a preacher. I am not in the habit of appearing in pulpits. It was not until I returned from the Philippines that I appeared once in a Presbyterian pulpit, once in an Episcopalian pulpit, once in a Unitarian pulpit, and now before a Jewish audience in the pulpit of a Jewish tabernacle. That makes a round, I think, that justifies my saying that I hope to be the Presi- dent of all the people, and to have your support, as you have given it to my predecessors, without stint and with every desire to make this a great country and a great Government. XIII ADDRESS AT GETTYSBURG (MAY 31, 1909) WE ARE gathered at this historic spot to-day to dedicate a monument to the memory of the officers and the enlisted men of the Regular Army who gave up their lives for their country in the three days' battle. It is but a tardy recognition of the Nation's debt to its brave defenders whose allegiance was purely to the Nation, without local color or strengthening of State or municipal pride. The danger of a standing army, entertained by our ances- tors, is seen in the constitutional restrictions and the com- plaints registered in the Declaration of Independence. It has always been easy to awaken prejudice against the possible aggressions of a regular army and a professional soldiery, and correspondingly difficult to create among the people, that love and pride in the army which we find to-day and frequently in the history of the country aroused on behalf of the navy. This has led to a varied and changeable policy in respect to the regular army. At times it has been reduced to almost nothing. In ITSt, there were but eighty men who constituted the regular army of the United States, and in Battery F of the 4th Artillery were fifty-five of them; but generally the absolute necessities in the defense of the country against the small wars, which embrace so large a part of our history, have induced the maintenance of a regular force, small to be sure, but one so well trained and effective as always to reflect credit upon the Nation. In the War of 1812, had we had a regular army of 10,000 men, trained as such an army would have been, we should have been spared the humiliation of the numerous levies of 119 120 PRESIDENTIAL ADDRESSES untrained troops and the enormous expense of raising an army on paper of 400,000 or 500,000 men, because with an effective force of 10,000 men, we might have promptly captured Canada and ended the war. The service rendered by the regular army in the Mexican War was far greater in proportion than that which it rendered in the Civil War, and the success which attended the cam- paigns of Taylor and of Scott were largely due to that body of men. To the little army of 25,000 men that survived the Civil War, we owe the opening up of the entire western country. The hardships and the trials of frontier Indian campaigns, which made possible the construction of the Pacific railroads, have never been fully recognized by our people, and the bravery and courage and economy of force compared with the task performed shown by our regular troops have never been adequately commemorated by Congress or the Nation. To-day, as a result of the Spanish War, the added respon- sibilities of our new dependencies in the Philippines, Porto Rico, and for some time in Cuba, together with a sense of the importance of our position as a world power, have led to the increase of our regular army to a larger force than ever before in the history of the country, but not larger in pro- portion to the increase in population and wealth than in the early years of the Republic. It should not be reduced. The profession of arms has always been an honorable one, and under conditions of modern warfare, it has become highly technical and requires years of experience and study to adapt the officers and men to its requirements. The general purpose of Congress and the American people, if one can say there is a plan or purpose, is to have such a nucleus as a regular army that it may furnish a skeleton for rapid enlargement in time of war to a force ten or twenty times its size, and at the same time be an appropriate instrument for accomplishing the purposes of the government in crises likely to arise, other than a war. At West Point, we have been able to prepare a body of AND STATE PAPERS 121 professional soldiers, well trained, to officer an army, and numerous enough at the opening of the Civil War to give able commanders to both sides of that internecine strife. Upon the side of the North many of the officers were drafted to command the volunteer troops from the States, while the regular army, aggregating about 10,000 at the opening of the war, was increased to about 25,000 during its first year. More than half this army was engaged in the Battle of Gettysburg. Eleven regiments of infantry, five regiments of cavalry, twenty-six batteries of artillery, and three battalions of engineers. The infantry of the regular army were embraced in two brigades of the Third Division of the Fifth Corps under Major-General Sykes, himself a most able regular army officer. The cavalry was included in a Reserve Division under General Merrill, and the batteries were distributed among various army corps of the entire Federal force. Two of the most important and determining crises of the three days' battle were, first, the seizure of the Round Tops and the maintenance of the Federal control over thai great point of vantage, the possession of which by the Confederate forces would have taken the whole Federal line in the reverse; and the second was the resistance to Pickett's charge on the third dav of the bailie when the high point in the ( 'onl'ederale advance into Pennsylvania was turned, and Fee was defeated and hurried back into Southern territory, never again to plant his Confederate battle-flags on Northern soil. The taking of the Hound Tops and the driving back of the Con- federate forces was the work of Sykes' Fifth Army Corps, and especially of the two brigades of the Regular Infantry regiments, in which in killed and wounded alone the regulars lost l 2() per cent, of their full number, and some of their brigades, notably Burbank's, lost (i() per cent, in killed and wounded of the men engaged. With a desperate bravery worthy of the cause, they drove back the Confederate" forces and enabled General Meade to unite the left of Sickles' 3rd Corps with the right of the 5th Army Corps, and thus pre- 122 PRESIDENTIAL ADDRESSES sented a shorter but a firmer front with which to withstand the onslaught of Lee's army upon the third day. Without invidious comparison and in no way detracting from the courage and glory of the other branches of the service who united to resist Pickett's charge, it is well known that much of the effective resistance was by the artillery. The batteries of the regulars and volunteers under General Hunt made the resistance to that awful charge that gave the victory to the Union forces. The soul of dishing, in charge of Battery F, 4th Artillery, went up with the smoke of the last shots which sent Pickett's men reeling back from the point now marked as the high tide of the Confederacy. Time does not permit me to mention the names of the heroes of the regular. army whose blood stained this historic, field, and whose sacrifices made the Union victory possible. With my intimate knowledge of the regular army, their high standard of duty, their efficiency as soldiers, their high character as men, I have seized this opportunity to come here to testify to the pride which the Nation should have in its regular army, and to dedicate this monument to the pred- ecessors of the present regular army, on a field in which they won undying glory and perpetual gratitude from the Nation which they served. They had not the local associa- tions, they had not the friends and neighbors of the volun- teer forces to see to it that their deeds of valor were properly recorded and the value of their services suitably noted in the official records by legislation and congressional action, and they have now to depend upon the truth of history and in the cold, calm retrospect of the war as it was, to secure from Congress this suitable memorial of the work in the saving of the country which they wrought here. All honor to the Regular Army of the United States! Never in its history has it had a stain upon its escutcheon. With no one to blow its trumpets, with no local feeling or pride to bring forth its merits, quietly and as befits a force organized to maintain civil institutions and subject always to the civil control, it has gone on doing the duty which AND STATE PAPERS 123 was its to do, accepting without a murmur the dangers of war, whether upon the trackless stretches of our western frontier, exposed to the arrows and the bullets of the Indian, or in the jungles and the rice paddies of the Philippines, on the hills and in the valleys about Santiago in Cuba, or in the tremendous campaigns of the Civil War itself, and it has never failed to make a record of duty done that should satisfy the most exacting lover of his country. It now becomes my pleasant duty to dedicate this monu- ment to the memory of the regular soldiers of the Republic who gave up their lives at Gettysburg and who contributed in a large degree to the victory of those three fateful days in the country's history. XIV AN ANSWER TO THE PANAMA CANAL CRITICS * THE Panama Canal continues to furnish copy for the newspapers and the magazines of the country. It j- being constructed by the United States Government for the benefit of world commerce, and every citizen of the United States, and indeed any citizen of the world, properly feels himself authorized to criticize the work as it is being done and to express his opinion as to the type of canal that is selected. In such an enormous work as the construction of the canal is likely to be, it would seem wise to have fixed definitely, at the beginning, the type and plan to be followed. When Dc Lesseps, having completed in triumph the Suez Canal, came to Panama, he began the construction of what his board of management and he intended to be a sea-level canal. Between that time and 1902, when the canal was offered for sale to the United States for $40,000,000 several boards were appointed for the purpose of recommending the besl course to be taken in the construction of the canal. Two of these boards were French, and all of them recommended the lock type of canal, with a dam at Bohio. We all remem- ber thai the Nicaragua route had a great many adherents in and out of Congress, and that for a time it seemed likely that That route would be selected. The natural conditions made ii necessary that the canal across Nicaragua should be of a lock type. When the change of plan from Nicaragua to Panama was made, it is quite evident, from the discussion, Prom the law, and from direct evidence, that it was expected thai the canal to be built would be of the lock type and would not be on the sea level. < >n«- of the most careful of the French boards that recom- »Thia article was prepared by Mr. Taft prim- to his inauguration, and was pub- lished in Ma lure a Magazine, May, 1909. V24 PRESIDENTIAL ADDRESSES 125 mended the lock type pointed out that a lock canal was necessary because the floods of the Chagres River would be uncontrollable in case of a sea-level canal, and made such a canal impossible. In 1906 thirteen engineers were invited to consider the question of the proper type of the canal. Of these, eight were Americans and five foreigners. A majority, consisting of the five foreigners and three Ameri- cans, decided in favor of a canal that should be 150 feet across the bottom for more than nineteen miles and 200 feet across the bottom for a little more than twenty miles. Five American engineers — including Mr. Alfred Noble, chief engineer of the Pennsylvania Company, constructor of the "Soo" canal and locks, and dean of American engineers; Mr. Frederic P. Stearns, the chief engineer of the Metro- politan Water Board Company of Boston ; and Mr. Randolph, the constructor of the Chicago Drainage Canal — recom- mended the construction of a lock canal, the main feature of which was to be a lake with the level of the water at eighty- five feet above the sea. These reports were considered by the Isthmian Canal Commission, itself composed of engineers and men familiar with works of construction, and that commission, by a vote of five to one, recommended to the War Department and to the President the adoption of the minority report. This action of the commission was con- curred in by Mr. John F. Stevens, then chief engineer of the commission in charge of the work at the Isthmus. The Secretary of War and the President also approved the report of the minority of the consulting board and decided in favor of a lock canal. The question was submitted by President Roosevelt to Congress. It was unnecessary to do this, because, under the Spooner Act, the President had authority to build the canal, and so ha* 4 authority to determine what the type should be. The fact is that in reading the Spooner Act of 1902, directing the construction of the canal, it is im- possible to escape the construction that Congress at that time contemplated, not a sea-level, but a lock canal. 126 PRESIDENTIAL ADDRESSES However, the question was again fairly submitted to Congress upon all the reports made and all the evidence. After the reports had been made, the Senate Committee on [nteroceanic Canals conducted an examination of all the engineers and others with knowledge, in order to arrive at a ((inclusion in respect to the question thus submitted to Congress. The Senate Committee by a majority reported in favor of a sea-level canal, but when the matter was con- sidered in open Senate, where it was very fully discussed, the Senate accepted the minority report of that Committee and decided in favor of the lock canal. In the House of Representatives the resolution in favor of the lock canal was carried by a very decided majority. And so the law of Congress to-day fixes the type of the canal as a lock canal, at a level of eighty-five feet. Meantime, the organization of the instrumentalities for construction on the Isthmus has gone on with great rapidity and effectiveness, until the excavation has reached the very large amount of three millions of cubic yards of material a month. More than half of this has been made by steam shovels in the dry, while the rest has been made by steam dredges. The steam dredges have been working in the softer material in the harbors and channels near the ocean on each side of the Isthmus. All the plans have been made and all the work[done with a view to the construction of the lock canal. It is true that a large part of the work, until recently, would have had to be done for a sea-level canal, except for the expensive change or relocation of the Panama Railroad, and the excavations for the locks and for the spillway of the great Gatun Dam, which is the key of the lock type. I presume it would be difficult to say how many millions of dollars have now been spent that would be thrown away, were the canal to be changed from a lock to a sea-level type, but certainly fifteen million dollars is not an overestimate of the amount. With a plan settled and the organization becoming more and more perfect, and the work of excavation going on at an unexpected rate of progress, suddenly those responsible for AND STATE PAPERS 127 the work are confronted with a newspaper war upon the type of the canal, and a discussion in the Senate of the United States, seriously suggesting a change from the lock type solemnly adopted by law two years ago, to a sea-level canal. What has given rise to this renewed discussion of the type of the canal and this assumption that the question of the type is still really open for consideration and settle- ment ? Three circumstances, and only three, that I can trace. The first is that a newspaper correspondent on the Isthmus, while detained by a washout on the railroad in one of the heavy rains that are frequent on the Isthmus, heard that the rock and earth which is now being deposited in great quan- tities to form the Gatun Dam, had, under the effect of the flood, sunk out of sight into a subterranean lake, and cabled to the United States that the whole structure of the Gatun Dam had given way. The second circumstance was that the estimates of the engineers in the actual construction of the work and the expenditure of the money from time to time showed quite clearly that the cost of the construction of the lock type of canal would be at least twice that which had been estimated as its cost by the minority of the board of consulting engineers. The third circumstance was that under the present efficient organization, with the use of steam shovels and dredges, the amount of excavation has considerably exceeded that which had been anticipated. In this wise, the argument in favor of a change from the lock canal to the sea-level canal apparently is given great additional force because it is said that by the sinking and giving way of the Gatun Dam, the indispensable feature of the lock type, it has been demonstrated that the lock type is unsafe, dangerous, and impossible. Second, it is said that the argument which has been made in favor of the lock type of canal on the ground of economy is shown to be unfounded because the real cost of the lock 128 PRESIDENTIAL ADDRESSES type of canal is demonstrated by actual construction to be equal to, or in excess of, the estimated cost of the sea-level canal. Third, il is said that the argument that the sea-level canal would be a great many years in process of construction, which was vigorously advanced, is now shown to be erroneous by the ureal increase in the daily, monthly, and yearly excavation as compared with the total amount of excavation needed in the sea-level type. I propose in a general way to examine these three reasons to see how much real weight they have. First, as to the sinking of the Gatun Dam. The report of the newspaper correspondent, like so many other state- ments made with respect to a matter two thousand miles away, under the influence of a desire to be sensational and stall ling, was founded purely on imagination. The only foundation for the statement was that in a comparatively small stretch on the site of the dam, perhaps two hundred feel across, some rough material had been piled up on the upward side of the dam, and there had been excavated immediately back of this pile or dump a lot of material from an old French diversion channel; that the water accumu- lated above this dump in the very heavy rains; that the water behind the dump and the material there had been taken out; and that there was a slide down into the cavity that had been made just back of the dump. The slide could not have been more than one hundred feet. The whole mass was not more than two hundred feet across, and on a personal examination, for I was there, it was evidently nothing more than an ordinary slide, such as frequently occurs in the construction of railroad banks and other fills when they are nol properly balanced, and are without the proper slope. The material on the inside of the dam, that which is to be impermeable and puddled, has not yet been deposited at all. This was a mere deposit on the edge of the bottom of the dam upstream. The dam at that point, when constructed, will be nearly half a mile wide. The insignificance of the AND STATE PAPERS 129 circumstance, when one takes into consideration the whole size of the dam, and the relation of this particular material to the entire dam, is apparent. It appears that there is clay in the material taken out of the excavation at Culebra which is slippery and upon which other material will slide if the pressure is unequal and the usual precautions against sliding are not taken. But this has always been known, and is true of most clays. It is not a danger that can not be provided against, and, indeed, the shape and form and exact method of building the dam are for the very purpose of producing the stability needed, and of avoiding any danger of a slide due to a lack of proper balance and weight in the material put into the dam. President Roosevelt, in view of the widespread report as to the failure of the dam, concluded to send a competent board of engineers to find out whether anything had occurred on the Isthmus thai should lend to a change from that type of canal which had the Gatun Dam as its chief feature. The board was made up of Mr. Steams of Boston, and Mr. Randolph, the chief engineer of the ( 'Imago Drainage ( 'anal, both of whom had been on the original minority board; Mr. Freeman, who had visited the canal two years before with a view to ascertaining whether there was a proper foundation for the locks at the Gatun Dam; and four other engineers, who had not given their opinion before as to the proper type of canal. These were the chief engineer of the Reclamation Service, Mr. Davis, who has had wide experience in the construction of dams and locks; Mr. Schuyler, one of the two or three great engineers of the West Coast, who has written a text-book on the subject of earthen dams and their proper construction; Mr. Hazen, perhaps, the greatest authority on filtration in the country; and Captain Allen, a hydraulic engineer of high standing in Chicago. Their report was unanimous. They decided that the dam as pro- jected was heavier and more expensive than it need be. They reduced the cost and the amount of material in it. They reported that the lock type of canal was entirely feasible, and 130 PRESIDENTIAL ADDRESSES safe as projected; and they pointed out and emphasized the difficulties of the proposed sea-level canal. The report of this board has been attacked on the ground that it was a packed jury, and that two of its members had already expressed their opinion in recommending the lock type of canal as part of the minority board. This is utterly unjust. It is quite true that the two gentlemen named had expressed their opinion in favor of a lock type of canal and had recommended the plan that was adopted, but it is also true that the of the board had not so committed themselves, and there was not the slightest reason why, if they differed from the other two, they should not express their opinion. Two of the old board were taken for the reason that they were as competent engineers as the country afforded and knew well the grounds on which the lock type had been originally adopted. It is entirely proper, when it is claimed that a judgment should be set aside on the ground of newly discovered evidence, that at least part of the same court should sit to hear what that new evidence is and pass upon its weight with reference to the previous judgment. The truth is that the judgment of this new board of engineers ought to remove all doubt as to the safety of the Gatun Dam from the minds of the interested public. But engineers are like members of other professions, and I presume w r e may expect from time to time, as the construction of the canal goes Dii, further attacks upon the feasibility, safety, and usefulness of the type adopted after so much care. Not only has this board determined on the entire safety and practicability of the Gatun Dam, but the army engineers, Colonel Goethals and his assistants, who are in charge of the actual work, are perfectly certain that the Gatun Dam can be and w ill be made as safe as the adjoining hills in resisting the pressure of the water of the lake against it and in main- taining it there for purposes of navigation. These army engineers are not responsible for the type of the canal. They did not take hold of the work until after the type had been settled by act of Congress, and they had no preconceived AND STATE PAPERS 131 notions in respect to the matter when they took charge and assumed that intimate relation to the whole project which makes their judgment of great value. Mr. Frederic P. Stearns is one of the greatest authorities in the world on the construction of dams. He has built a dam at the Wachusetts Reservoir of the Metropolitan Board of Public Works in Massachusetts, upon foundations much less favorable for stability than those of the Gatun Dam, and the water is now standing at 65 feet in the reservoir. The dam has been tested, and his judgment has the benefit, therefore, of actual test and verification. The judgment of the engineers in 1906 as to the sufficiency of the foundation upon which to construct the Gatun Dam was based on borings made with wash drills into the material underneath the proposed dam site, and material was washed from depths varying from 20 to 250 feet below the surface. The wash of the water affected the material to such an extent as to give a wrong impression regarding some of it. The borings seemed to show that at considerable depth, that is, from 200 to 250 feet down, there was loose sand and gravel such as to permit the free flow of an underground stream. Since these borings were taken, pits have been sunk that make possible the removal of the material in place so that it can be seen just exactly what the foundation consists of, and it turns out that, instead of there being loose sand and gravel at the bottom, there appears to be a conglomerate of sand, clay, and gravel so united as to require a pick to separ- ate it, and entirely impervious to water. In other words, a full examination of the foundations of the Gatun Dam strengthens greatly the opinion of those who held that there was a foundation of a blanket 200 feet in depth entirely impervious to water, below the surface, and substantially incompressible. A most interesting exhibit can be seen at the headquarters of the eommission at Culebra, of the various layers of material which form the foundations under the Gatun Dam, and when they are examined, the truth of the assertion 132 PRESIDENTIAL ADDRESSES thai this makes an excellent foundation can be readily understood. The second circumstance is with reference to the cost of the work. The estimate of the cost of the canal, exclusive of the interest during construction, sanitation, and expense of Zone government, and the $50,000,000 paid Panama and the French company, was $139,705,200. The present estimate of the cost of the canal as now projected, exclusive of the same items, is $297,766,000, or a grand total of $375,000,000. The increase arises, first, from the fact that the yardage or excavation to be made was 50 per cent. underestimated. This was due, first, to insufficient surveys, and second, to changes of plan. These changes of plan involved a widening of the canal, for a distance of four thou- sand feet, from 500 feet to 1,000 feet in width, just below the (iatun locks on the north side, in order to furnish a wider and more commodious place for vessels anchoring before entering the locks. The canal has also been widened for five miles from 200 feet to 300 feet across the bottom; this in the Culebra cut. Again, the material supposed to be easy of dredging turns out to be in many places more of rock than was supposed, and the average cost of excavation has been increased generally about 20 per cent. In addition to that, the locks as originally projected were 900 feet usable length and 95 feet in width. They have been increased now, in response to a request from our Navy Department, from 900 feel to 1,000 feet usable length and from 95 feet to 110 feet in width. This greatly increases the amount of concrete, greatly widens the gates, and greatly increases the whole cost of the locks at both ends of the canal. Then, too, it was thought wise not to follow the minority report which contemplated dams in i mediately on the shore of the Pacific at La Boca, in Sosa Hill, but to move them back to Miraflores and San Pedro Miguel, some four miles or more from the shore. This was chiefly done for military reasons, in order to take the lock construction out of sight of an enemy approaching the canal on the Bay of Panama. AND STATE PAPERS 133 All these changes were substantial increases in the amount of work to be done, which, taken with the increased unit price, explains the discrepancy between the estimate and the actual expenditure. Much money was expended in the construction and repair of buildings in which the employees of the canal lived. Much money, not included in the estimate, was expended for the purpose of making their lives more enjoyable while on the Isthmus. The wages per day are higher than those which were estimated. Colonel Goethals has submitted a detailed statement showing exactly where the difference is between the original estimate and the actual cost. This has been examined by the present board of engineers, who report that in their judgment the estimate presented by Colonel Goethals is an outside figure, and that the cost will probably be less for the present type of canal than $297,000,000, as estimated. The advocates of the sea-level canal point to the fact that the estimate by the Consulting Board in 190(5 of the cost of the sea-level canal was $247,000, 000, plus cost of sanitation, government, and the $50,000,000 paid Panama and the French company, or fifty millions less than the admitted cost of the lock type. They assume, therefore, that the difference in cost originally advanced as an argument against a sea-level canal has now been refuted. The defect of this argument is that the same circumstances that have increased the cost of the lock type of canal would increase the actual cost of a sea-level canal. Much of the work that has been done — indeed, a very large part of it — ■ is work that would have had to he done for a sea-u-vel canal, and we are fur- nished now by Colonel Goethals with an estimate of what the sea-level canal would cost, in the light of the actual cost of the work and unit prices on the Isthmus. This would be $477,601,000 without cost of sanitation or government and exclusive of the original $50,000,000 payment. When the loss of interest and loss of revenue by delay is taken into consideration, the cost is easily increased $200,000,000 be- yond the cost of the lock type of canal, so that the difference 134 PRESIDENTIAL ADDRESSES between the cost of the lock type and the sea-level canal is shown by actual construction on the Isthmus to be greater than was estimated when the lock type of canal was selected as the proper one. Third, the date of completion for the lock type of canal has been fixed as the 1st of January, 1915. I hope that it may be considerably before that. At the rate of excavation now going on in the Culebra cut, it could probably be com- pleted in less than three years, but the difficulty is that as the cut grows deeper, the number of shovels that can be worked must necessarily be decreased. Therefore, the excavation per day, per month, and per year must grow less. Hence it is not safe to base the estimate of time on a division of the total amount to be excavated by the yearly excavation at present. Then, too, the Gatun Dam and locks and the manufacture and adjustment of the gates may take a longer time than the excavation itself, so that it is wiser to count on the date set. The enthusiastic supporters of the sea-level canal, basing their calculation on the amount of material now being excavated, and upon the total amount to be excavated, for a sea-level canal, reach the conclusion that the sea-level canal could be constructed in a comparatively short time as compared with the estimate of twelve or fifteen years made at the time of the decision in favor of the lock type. They have fallen into the error, already pointed out, of assuming that the present rate of excavation could continue as the work of building the sea-level canal went on, which in the case of the sea-level canal is even more erroneous and misleading than in the case of the lock canal, for the reason that the construction, below the forty-foot level above the sea down to the level of forty feet below the sea, is work of the most difficult character, more than half of it always under water, and necessitating either pumping or dredging in rock and working in a narrow space, which greatly reduces the possible pate i't' excavation. It is said that new methods of removing rock under water are available so as greatly to reduce the price and the time. AND STATE PAPERS 135 I shall take up this statement a little later, but it is sufficient now to say that these methods are in use on the Isthmus, and that the actual employment of them in the character of material that exists on the line of the canal completely refutes the claim that they can accomplish anything more than, or as much as, the excavation in the dry. Then, too, in this calculation of time, a third great error of the sea-level enthusiasts is the failure to take into con- sideration the time actually needed to construct the Gamboa Dam to retain the waters of the Chagres River and the other dams and the great diversion channels that would absolutely have to be built before the sea-level excavation could be carried on. The Gamboa Dam as projected is a masonry dam, 180 feet above sea level, with a level of the water 170 feet against the dam and above the bed rock of the stream, and of a length 4,500 feet along the top. It would be the highest dam known in the world and its construction would have to be of the most careful character, and would take an indeterminate time. It has never been definitely settled that there is at the only available site a foundation suitable for such a dam. I have thus examined the circumstances relied upon by the present advocates of the sea-level canal to show that the known conditions are different to-day from those that influ- enced the selection of the lock type. I have not gone into the matter in detail, but the records will bear out my general statements and show that not in the slightest respect has the argument been changed by newly discovered facts in favor of the sea-level canal. The memory of the reading public, however, is not very long. and. relying on this fact, the opponents of the lock canal do not hesitate to bring out again, as if newly discovered, the same old arguments that failed to convince when the issue was fresh and the supposedly final decision was given. We are again met with the statements of gentlemen who claim to be and really are familial- with the steamship business, that mariners would prefer a sea-level canal and would use 136 PRESIDENTIAL ADDRESSES a lock canal with reluctance. With a great show of enthu- siasm and a chain of reasoning as if newly thought out, the ease with which vessels can be navigated on the level is held up in contrast with the difficulties involved in lifting them eighty-five feet at one side of the Isthmus and lowering them the same distance on the other. Such an argument always proceeds on the hidden premise that the question whether we should have a lock or a sea-level canal is a mere matter of preference freely open to our choice, and wholly without regard to the real difficulties involved in the construction of a sea-level canal such as the discussions of the present day seem to assume a sea-level canal will be. We hear much of the Straits of Panama described as a broad passage of from 400 to GOO feet in width across the bottom, 40 to 45 feet in depth, and piercing the Isthmus with a volume of water sufficient to do away with all difficulty from rapid currents produced by the water of swollen tropical streams, or cross currents resulting from the discharge of such streams into the canal from heights ranging all the way from ten feet to fifty feet above the level of the water. Such a comparison is utterly misleading. The only sea-level canal that has been projected with respect to which estimates of any substantial and reliable kind have been made is a canal, one-half the length of which is 150 feet across the bottom and the other half of which is 200 feet across the bottom. It is a canal that for twenty miles, from the point where the Chagres River and the canal converge, to Gatun, has four limes the curvature of the Suez Canal, and in which at Hood stages, under any plan that has been devised for pre- venting the destruction of the canal by the flood waters of the Chagres River and the other streams emptying into that river, there will be a current of nearly three miles an hour. Such a current in the Suez Canal, with one-fourth of the curvatures, makes the steering of large vessels dangerous, and in this canal, with its great curvature, would make the passage of large vessels impossible. The lock canal as projected has a width at the bottom of AND STATE PAPERS 137 300 feet for about 25 per cent, of its length, of from 500 to 800 feet for 50 per cent., and of 1,000 feet, or the entire lake width, for the remainder. With such widths the curvature, of course, is immaterial. In the projected sea-level canal, it would be impossible for vessels safely to pass one another at any speed at all. There- fore one vessel would have to tie up while the other went by. This fact would greatly reduce the speed with which a vessel could pass through the sea-level canal, and the greater the business, the slower would be the passage. As the tonnage increased, therefore, the lock canal of the projected type, in spite of the time taken going through the locks to the 85-foot level and descending from that level, in case of large steamers, would furnish a quicker passage. As business increased, the time taken in going through the sea-level canal and the danger to the vessel would be very considerably greater than in the lock canal. The danger of accidents and of the destruction of the locks, if certain machinery is used and certain precautions are taken in the warping of the vessels into and out of the locks, will be practically nothing. We are able to gage this by the infrequency of dangerous accidents at the "Soo" locks, in which the business is enormous and the size of the locks through which the vessels go is but a small percentage less than that of the locks projected at Panama. The devices for preventing the outflow of the water in case of a destruction of the upper gates are complete, and in the opinion of many engineers unnecessarily elaborate. Mr. Bunau-Varilla and Mr. Granger and Mr. Lindon Bates have all lent the weight of their voices in denunciation of the present lock type of the canal. In denouncing the type that is under construction, they always compare it with a sea-level canal of a width from 300 to GOO feet; when the actual canal projected for the sea-level is only 150 feet across the bottom in one-half the length, and 200 feet the other half. They always point with severest criticism to the instability and experimental character of the Gatun Dam, but never refer to the Gamboa Dam, which is an essential part of the 138 PRESIDENTIAL ADDRESSES sea-level plan, and which in its measurements and in the height of the water behind it exceeds the proportions of any dam in the world. In addition to this the sea-level canal involves the construction of three or four other dams in order to turn hack the water of streams entering the Chagres Valley over the height of land into other valleys away from the canal. One of these dams is 75 feet high by 4,000 feet in length; another 2,800 feet long; another 1,200 feet; and another the fact (hat no one can control the vote of the intelligent laboring man; that he does not yield to mere sentiment or the calling of names, but that he himself investi- gates the reasons and makes up an independent mind. AND STATE PAPERS 163 I did not hesitate to meet the issue on the question of a trial by jury in contempt cases. I attempted to point out the dreadful weakening of the power of the court that would ensue if every order to be performed outside of the presence of the court might be violated and no punishment ensue except after a trial by jury. I think I showed that the result of such a change in the law would be to put the means of evading decrees of the court of equity into the hands of the wealthy and unscrupulous, and that it would work but little benefit to the poor and needy wage-earner. The appeal made to the farmer, merchant, business man, and the public at large, including the intelligent wage-earner, against the weakening of the power of the court, in the interest of a particular class, was, if one can judge from the attitude of the audiences addressed, as strong a vote-getting argument as the Republican party had in the late campaign. Cer- tainly it was next in force and persuasiveness to that based on a prospective restoration of good times in a Republican victory. XVI MESSAGE CONCERNING THE GOVERNMENT OF CUBA (JUNE 5, 1909) To the Senate and House of Representatives: I HAVE the honor to transmit herewith a communication from the Acting Secretary of War, under date of May 8th, submitting the report, with accompanying exhibits, of the Honorable Charles E. Magoon, provisional governor of Cuba, for the period from December 1, 1908, to January 28, 1909, when the provisional government was terminated and the island again turned over to the Cubans. I recom- mend, in accordance with the suggestion of the Acting Secretary of War, that this report and the exhibits be printed. I think it only proper to take this opportunity to say that the administration by Governor Magoon of the government of Cuba from 1906 to 1909 involved the disposition and settlement of many very difficult questions and required on his part the exercise of ability and tact of the highest order. II gives me much pleasure to note in this public record the credit due to Governor Magoon for his distinguished service. The army of Cuban pacification under Major-General Barry was of the utmost assistance in the preservation of the peace of the island and the maintenance of law and order, without the slightest friction with the inhabitants of the island, although the army was widely distributed through the six provinces and came into close contact with the people. The administration of Governor Magoon and the laws recommended by the advisory commission, with Colonel Crowder, of the Judge-Advocate-General's Corps at its head, and put into force by the Governor, have greatly facilitated 164 PRESIDENTIAL ADDRESSES 165 the progress of good government in Cuba. At a fair election held under the advisory commission's new election law General Gomez was chosen President and he has begun his administration under good auspices. I am glad to express the hope that the new government will grow in strength and self-sustaining capacity under the provisions of the Cuban constitution. XVII MESSAGE CONCERNING TAX ON NET INCOME OF CORPORATIONS (JUNE 16, 1909) To the Senate and House of Representatives: IT IS the constitutional duty of the President from time to time to recommend to the consideration of Congress such measures as he shall judge necessary and expedient. In my inaugural address, immediately preceding this present extraordinary session of Congress, I invited attention to the necessity for a revision of the tariff at this session, and stated the principles upon which I thought the revision should be effected. I referred to the then rapidly increasing deficit, and pointed out the obligation on the part of the framers of the tariff bill to arrange the duty so as to secure an ade- quate income, and suggested that if it was not possible to do so by import duties, new kinds of taxation must be adopted* and among them I recommended a graduated inheritance tax as correct in principle and as certain and easy of collection. The House of Representatives has adopted the suggestion and has provided in the bill it passed for the collection of such a tax. In the Senate the action of its Finance Committee and the course of the debate indicate that it may not agree to this provision, and it is now proposed to make up the deficit by the imposition of a general income lax, in form and substance of almost exactly the same character as that which in the case of Pollock vs. Farmers' Loan and Trust Company (157 U. S., 429) was held by the Supreme Court to be a direct tax, and therefore not within the j lower of the Federal Government to impose unless appor- tioned among the several States according to population. 166 PRESIDENTIAL ADDRESSES 167 This new proposal, which I did not discuss in my inaugural address or in my message at the opening of the present session, makes it appropriate for me to submit to the Con- gress certain additional recommendations. The decision of the Supreme Court in the income-tax cases deprived the National Government of a power which, by reason of previous decisions of the court, it was generally supposed that Government had. It is undoubtedly a power the National Government ought to have. It might be indis- pensable to the nation's life in great crises. Although I have not considered a constitutional amendment as necessary to the exercise of certain phases of this power, a mature consideration has satisfied me that an amendment is the only proper course for its establishment to its full extent. I there- fore recommend to the Congress that both Houses, by a two-thirds vote, shall propose an amendment to the Con- stitution conferring the power to levy an income tax upon the National Government without apportionment among the States in proportion to population. This course is much to be preferred to the one proposed of re-enacting a law once judicially declared to be uncon- stitutional. For the Congress to assume that the court will reverse itself, and to enact legislation on such an assumption, will not strengthen popular confidence in the stability of judicial construction of the Constitution. It is much wiser policy to accept the decision and remedy the defect by amendment in due and regular course. Again, it is clear that, by the enactment of the proposed law, the Congress will not be bringing money into the Treasury to meet the present deficiency, but by putting on the statute book a law already there and never repealed, will simply be suggesting to the executive officers of the Govern- ment their possible duty to invoke litigation. If the court should maintain its former view, no tax would be collected at all. If it should ultimately reverse itself, still no taxes would have been collected until after protracted delay. It is said the difficulty and delay in securing the approval 168 PRESIDENTIAL ADDRESSES of three-fourths of the States will destroy all chance of adopting the amendment. Of course, no one can speak with certainty upon this point, but I have become con- vinced that a great majority of the people of this country are in favor of vesting the National Government with power to levy an income tax, and that they will secure the adoption of the amendment in the States, if proposed to them. Second, the decision in the Pollock case left power in the National Government to levy an excise tax which accom- plishes the same purpose as a corporation income tax, and is free from certain objections urged to the proposed income- tax measure. I therefore recommend an amendment to the tariff bill imposing upon all corporations and joint stock companies for profit, except national banks (otherwise taxed), savings banks, and building and loan associations, an excise tax measured by 2 per cent, on the net income of such corpora- lions. This is an excise tax upon the privilege of doing business as an artificial entity and of freedom from a general partnership liability enjoyed by those who own the stock. I am informed that a 2 per cent, tax of this character would bring into the Treasury of the United States not less than ^.5,000,000. The decision of the Supreme Court in the case of Spreckels Sugar Refining Company against McClain (192 U. S., 397) seems clearly to establish the principle that such a tax as this is an excise tax upon privilege and not a direct tax on prop- erty, and is within the federal power without apportionment according to population. The tax on net income is pref- erable to one proportionate to a percentage of the gross receipts, because it is a tax upon success and not failure. It imposes a burden at the source of the income at a time when the corporation is well able to pay and when collection is easy. Another merit of this tax is the federal supervision which must be exercised in order to make the law effective over the annual accounts and business transactions of all corporations. AND STATE PAPERS 169 While the faculty of assuming a corporate form has been of the utmost utility in the business world, it is also true that substantially all of the abuses and all of the evils which have aroused the public to the necessity of reform were made possible by the use of this very faculty. If now. by a per- fectly legitimate and effective system of taxation, we are incidentally able to possess the Government and the stock- holders and the public of the knowledge of the real business transactions and the gains and profits of every corporation in the country, we have made a long step toward that super- visory control of corporations which may prevent a further abuse of power. I recommend, then, first, the adoption of a joint resolution by two-thirds of both Houses proposing to the States an amendment to the Constitution granting to the Federal ( rovernment the right to levy and collect an income tax with- out apportionment among the Slates according to population, and. second, the enactment, as part of the pending revenue measure, either as a substitute for, or in addition to. the inheritance tax, of an excise tax upon all corporations, measured by 2 per cent, of their net income. XVIII ADDRESS AT THE UNVEILING OF THE ME- MORIAL TO DR. BENJAMIN F. STEPHENSON, FOUNDER OF THE GRAND ARMY OF THE REPUBLIC, WASHINGTON, D. C. (JULY, 3, 1909) Mr. Chairman; My Fellow Citizens: WE ARE met to dedicate a memorial to a Union soldier who served four years as a surgeon in the Civil War, and who also builded an institution by which there should be united in the bonds of fellowship all the sweet association, all the deep lesson of loyalty, and all the pride of patriotism that such a civil war as that could arouse in millions of hearts. When men at the formative period in life — from 18 to 22 — are associated in any work, whether it be in college, in society, in church, or otherwise, they carry with them after- ward the fondest memories and associations for each other because they have passed through a common mold. But how much greater must be the sweet association and the bond of union between men who for four years passed through the dangers of the Civil War; those who survived thinking of the tender memories of those who gave up their lives for their country; those surviving carrying with them the sweet association, the stories of courage, and tales full of humor and of pathos. I can conceive no bond of union stronger than that which unites the men who fought from '61 to '65 in the Grand Army; and it was to the credit of the founder of the Grand Army of the Republic that he saw the solid basis upon which such a structure as that great society could be erected. You will recollect that there were prophets of evil with 170 PRESIDENTIAL ADDRESSES 171 respect to the fate of the United States after the war should cease, after the end should be accomplished for which the North was fighting, and it was said that the aggregation of a million men in arms threatened our free institutions. They recalled that the Pretorian Guard of Rome was an instrument in furthering the ambition of those who would suppress free institutions and who were to assume despotic power. But all those prophecies faded into nothingness. The men who composed that million were men in favor of free institutions, who had fought for them, and did not intend to sacrifice them to anything else. There was no man with the ambition to improve that army as an instrument of despotism even if it had been willing to furnish itself as such; and so it was the marvel of other countries that this great body of organized force, than which there never was a stronger or better-disciplined army, faded out and disap- peared into the paths of peace, preserving nothing but the sweet memory and association they had formed during the war and the consciousness that they had in their own hearts of having rendered that greatest service, to wit: the preser- vation of their country. Stephenson organized this Grand Army of the Republic to preserve the essence of that army in its finest characteristic, in its democracy and in its patriotism. Far be it from me to criticize in the slightest such organizations as the Cincinnati and the Loyal Legion. They are great organizations, and those who belong to them may well have pride in them. But the Grand Army of the Republic knows no limitation but service to the Government in the Civil War; and therefore it is that Congress, recognizing the usefulness of such an organization in preserving patriotism, in maintaining it in its intensity during those years when commercial greed seemed to make many people forget it, properly contributed $10,000 to this memorial and recognized the Grand Army of the Republic as an institution which may well have national gratitude and national recognition. More than that, the Grand Army of the Republic is most useful in this: 172 PRESIDENTIAL ADDRESSES it represents the concentrated opinion of the men who fought in the war to preserve the Union, and it therefore may give authoritative expression, which no other body and no other part of the people can give, to that forgetfulness of the bitter- ness of the strife which existed during the four years of the war. I am glad to say that, while that bitterness may in a few instances obtain, you will never find it to exist between the men who actually exposed their lives on one side and the men who exposed their lives on the other. The union of the two sections has been molded strongly and more strongly by those meetings which ought to be encouraged between the blue and the gray to occur as often as possible. Even within my recollection on occasions like this and on Memorial Day and on Fourths of July I have seen the ranks of the Grand Army thinned. I know there are many who by jaunty step and by keeping their hats on are able to deceive the people as to their age; but the fact is, that those ranks are thinning from day to day, perhaps a hundred a day are going to their long home. It is fitting that such an association, which in the course of the next generation will pass away, should have such an enduring monument as this to testify not only to the patriotic service that they rendered during the war, but also to the service to the country that they have rendered by their holding high loyalty and patriotism since the war to the present day. Mr. Commander-in-chief of the Grand Army of the Republic, inasmuch as Congress contributed to this monu- ment and provided for its erection, I am here officially to accept at your hands, on behalf of the Government of the United States, this fitting memorial of fraternity, charity, and loyalty. XIX ADDRESS AT THE TWO HUNDRED AND FIF- TIETH ANNIVERSARY OF THE FOUNDING OF NORWICH, CONN. (JULY 5, 1909) My Friends: THINK it was last year that I had the pleasure of I addressing a Norwich audience. Then I talked to you on the subject of the Panama Canal and I promised to come back here at the 250th anniversary of your city's foundation, whether I was nominated and elected for the Presidency or not. I said that probably you would not want me if I was not elected, and I haven't had an oppor- tunitv to test you on that. But it is a great pleasure to come back to this beautiful town. I like to call it a town because while you make a distinction between the city and the town, the term town suggests its wonderful history. Well may it be called the Rose of New England. Its beauties to-day and its sweet memories of the past justify the use of that term, and if I were a Norwich man I should hug it to my bosom. There is something about the town differing from most towns whose history I know, in the individuality of the town itself. There are other towns that have had noted individuals who have made history. Norwich has had noted individuals whose characters, continued through three great crises, have given a character and an individuality to the town itself. Major John Mason was a great man and he had a son- in-law, James Fitch, a minister of the gospel in this town for forty years, who was a good man; and there were in those thirty-five men in whose name the nine square miles 173 174 PRESIDENTIAL ADDRESSES were given by Uncas, men of bone and sinew fit to meet the tremendous trials of those early days. Then you came to the revolutionary time and you were not wanting', for out of the descendants of your first settlers you furnished great force to that which was needed to separate this country from England. And then again in the Civil War you furnished much more than your quota, and the names of the men who marched out from Norwich would have done credit to many a larger city with a much greater population to draw from. One of the things that the history of this town suggests is the character of the government that you had here in the early days. Like that of the government of other New England towns, but perfect in its way, it was almost a theocracy. The minister, James Fitch, was not alone a minister of the gospel as we know him to-day, exercising a beneficent influence in the community, but he spoke by authority, the State was behind him, and the men and women of the community were obliged to conform to the rules of morality and life which he laid down. We speak with great satisfaction of the fact that our ances- tors — and I claim New England ancestry — came to this country in order to establish freedom of religion. Well, if you are going to be exact, they came to this country to establish freedom of their religion and not the freedom of anybody else's religion. The truth is, in those days such a thing as freedom of religion was not understood. Erasmus, the great Dutch professor, one of the most elegant scholars of his day, did understand it and did advocate it, but among the denominations it certainly was not fully understood. We look with considerable horror and with a great deal of condemnation on those particular denominations that pun- ished our ancestors because our ancestors wished to have a different kind of religion, but when our ancestors got here in this country and ruled they intended to have their own religion and no other. But we have passed beyond that and out of the friction. Out of the denominational prejudices AND STATE PAPERS 175 in the past we have developed a freedom of religion that came naturally and logically as we went on to free institutions. It came from those very men who built up your community and made its character. The Rev. James Fitch could not look upon any other religion in this community with any degree of patience, but his descendants, firm in the faith as he was, now see that the best way to promote Christianity and the worship of God and religion is to let every man worship God as he chooses. This community was well supervised by the clergy, and did well by the clergy. The Rev. James Fitch, after fourteen years at Saybrook, came here and presided in the First Church for forty more years. I have heard clergymen say that after a clergyman passes his fiftieth year he ought to be made emeritus and step out of the profession. They did not say so in those days. There was an authority about a minister of the gospel that meant a good deal more than mere persuasiveness, and the clergy- man's authority is one that seems to cultivate a long life. The Rev. James Fitch was succeeded by Dr. Benjamin Lord and he was succeeded by Dr. Strong, all of the same church, and the Doctors Lord and Strong presided together, including six years when they were both ministers of this town, one hundred and seventeen years. Now, think of the influence in a community of God-fearing men with force of character, with power to condemn wrong and uphold right, and then you can understand how Norwich has survived and preserved an individuality. Major Mason was a statesman. He was deputy governor. His chief was Governor Winthrop and Governor Winthrop, while Major Mason presided over the colony of Connecticut, went to London and found King Charles the Second in such good humor that he got that far-famed charter to Connecticut. They said that Charles II. was a monarch who never said a foolish thing and never did a wise one. Whether it was wise for him or not, the charter of Connecticut that he gave, with its principles of free institutions and its latitude to the people of Connecticut in carrying on their government, was 17(5 PRESIDENTIAL ADDRESSES certainly from our standpoint a wise act, and I don't wonder that when they tried to get it away they put it in that oak where it was not found. The truth is, my dear friends, we hear a great deal of discussion of free government and references made to the declaration of independence which this day celebrates. And some people so construe that instrument that they would make it mean that any body of men or women or children are born with the instinct of self-government so that they can frame a government as soon as they begin to talk. Now, that is not true. Self-government has been fought out in the history of this world and by certain races has been hammered out by a thousand years of struggle and men have taught themselves how to govern themselves. Men are not fit to govern themselves until they have sense and self-restraint enough to know what is their interest and to give every other man all that is coming to him according to right and justice. Now, what is true with respect, therefore, to our ancestors is true with respect to many races in this world. They have to be led on and taught the principle and lesson of self- government. But our ancestors, by a wise negligence in the home government for nearly two hundred years, came to be the best-prepared people there were in the world for self- government. Take the town of Norwich and see how those thirty-five men and the people who followed them made up a government; how they were conscious of the responsibility that they took upon themselves when they attempted a government themselves, and how they carried on an orderly government, a government of liberty, regulated by law. So it was in every town in the thirteen colonies. They were all men of strength, of individuality, of self-restraint, and they knew what it cost to build up a government and maintain it; and when on the fourth of July, 1776, they declared their independence of Great Britain, they did it with reluctance and with hesitation because they knew the tremendous bur- den on their backs, and they knew the responsibilities that AND STATE PAPERS 177 tliev owed to the world and that they owed to the people for whom they were making the declaration. No better example of the character of those men who made that declaration of independence and who subsequently framed the Constitution of the United States could be found than right here among your representatives of the town of Norwich. Your selectmen, your leaders, had the education and the experience that fitted them, as all the Americans of that day were fitted, to organize and maintain a civil govern- ment and preserve the free institutions and liberty regulated by law. Now you have stood and looked at the procession so long that your eyes are strained and I do not mean to strain your ears. I wish again to testify to the profound pleasure I have had in studying the history of the town of Norwich, of going over the characters of your great men and of realizing that the strength of your community — the character of your community — is in the character of the men that made it up; and I doubt not that right here under these beautiful elms, and in these houses, so many of which preserve the memories of the past, there is the same respect for virtue, for individual character, for honesty, for freedom and for law that was left to you as a legitimate legacy from the ancestors whose memory you honor to-day. XX ADDRESS AT THE CATHOLIC SUMMER SCHOOL OF AMERICA, CLIFF HAVEN, N. Y. (JULY 7, 1909) Your Eminence, Governor Hughes, Dr. McMahon and my Fellow Citizens of the Catholic Summer School of America: GOVERNOR HUGHES and I are going through these three or four days delivering speeches at each other, and expressing our opinions of each other in a way that will enable us, when we get through, to do it with greater facility. The truth is that the gift of eloquence and speech which Governor Hughes has needs no practice, but I have to have a little. I would be without that which makes a man if I did not appreciate to the full the kindly words of your distinguished Governor, and if I did not congratulate the State of New York on having a Governor who represents the highest ideals. One is almost carried off his feet before such an audience. There is something in the atmosphere that suggests a flying machine, as if you were all so full of joy that that element in you could raise you up, and that is the way you ought to be, and I congratulate you that such is the feeling. The combination of work and pleasure, the cultivation of health on the one hand and of intellect on the other, and of religious faith above all under such beautiful surroundings is calculated to make every one enthusiastic, and I share that enthusiasm to the full. I am not a Catholic, but I have had in the last ten years a great deal to do with the Catholic Church. My lot did not carry me into a part of the world that made me as familiar with the French Explorers, the French leaders of civilization, 178 PRESIDENTIAL ADDRESSES 179 like Champlain, as it did into the regions of those leaders that came from Spain — into the Philippines where the same influence that carried Champlain here and the same ideal that controlled him, controlled men equally brave, and in certain respects more successful. There was Magellan and later Legaspi who came out to the Philippines and with four or five Augustinian monks converted to Christianity that entire Archipelago now having some seven or eight million souls, and then perhaps 500,000 — the only community, the only people in the entire Orient that to-day as a people are Christians. There is on the Luneta, the great public square facing the ocean in Manila, a statue carved by a great Spanish sculptor, Querol, in which there are two figures, Legaspi, holding the standard of Spain and with his sword drawn, and behind him Urdeneta, a Recolleto monk, holding aloft behind all the cross, and there is in that statue such movement, such force, such courage that I used to like, even in the hot days of Manila, to stand in front of it and enjoy, as I thought I got, the spirit that the sculptor had tried to put in there, of loyalty to country and faith in God. I think we are reaching a point in this country where we are very much more tolerant of everything and everybody than in the past, and where we are giving justice where justice ought to be given. We are no longer cherishing those narrow prejudices that came from denominational bigotry, and we are able to recognize in the past those great heroes of any religious Christian faith and appreciate the virtues they exhibited as examples for us. Religious tolerance is rather a modern invention. Those of us of Puritan ancestry have been apt to think that we were the inventors of religious tolerance. Well, as a matter of fact, what we were in favor of, if I can speak for Puritan ancestry, was having a right to worship God as we pleased, and having everybody else worship God in the same way. But we have worked that out now; and there has been a great change, I am sure His Eminence the Cardinal will agree with me, even in the last twenty-five years. I have 180 PRESIDENTIAL ADDRESSES had personal evidence of it in some of the work that we had to do in the Philippines. Fifty years ago if it had been proposed to send a representative of the Government to the Vatican to negotiate and settle matters arising in a country like the Philippines between the Government and the Roman Catholic Church, it would have given rise to the severest con- demnation and criticism on the part of those who would have feared some diplomatic relation between the Government and the Vatican contrary to our traditions; but within the last ten years that has been done, with the full concurrence of all religious denominations, believing that the way to do things is to do them directly, and when a matter is to be settled that it should be settled with the head of the church who has authority to act. And so it fell to my lot, my dear friends, and in that respect just by good luck, I came to be an exception, which will perhaps stand for many years as the sole exception, of being the representative of the United States at the Vatican. There I had the great pleasure of meeting that distinguished statesman and pontiff, Leo XIII., a man of ninety-two, whom I expected to find rather a lay figure directed by the council of the Cardinals than one active in control of the church. But I was most pleasantly disappointed, for even at ninety-two he was able to withstand an address of mine of twenty minutes, to catch the points of that address, and to respond in a speech of some fifteen minutes, showing how fully he appreciated the issue that there was and its importance. We did not succeed in bringing about exactly the agree- ment which we asked, and he realized that, but he was full of friendly enthusiasm for the settlement of the issue and after two audiences which I had the honor of holding with him, at the close of the second one, he said, "You haven't, got exactly what you want in exactly the way you want it, but." said lie, "I am going to send a representative of mine to the Philippines with instructions to see that the matter is settled justly in accordance with the wishes of the Govern- ment of the United States." And it was so settled. I am AND STATE PAPERS 181 gratified to say that now every question between the Church and the State in the Philippine Islands, which were so closely united that it seemed almost impossible to make a separation of the two as it ought to be made under our Constitution, has been settled fairly and justly to both sides, and that no bad taste or feeling of injustice exists on either side with respect to those questions. And now, my dear friends, I ought to talk about Cham- plain, and I would talk something about him because I appreciate as highly as any one can those motives that governed him and his high character as a man and the obstacles that he had to overcome; but when I get up to talk on any subject, I am a little bit in the attitude of the doctor who could cure fits and that is all he could cure and so he wanted to throw his patients into that condition. I can only talk about the Philippines, and that is what I have done, but I hope they have some application to the thoughts of the morning. I thank you, my dear friends, I thank the reverend fathers and His Eminence the Cardinal, for the cordial reception that you have given to the civil head of New York and to the civil head of the Nation. XXI SPEECH AT THE BANQUET, BOSTON CHAMBER OF COMMERCE, BOSTON, MASS. (SEPTEMBER 14, 1909) Mr. President, Gentlemen of the Boston Chamber of Commerce, My Fellow Citizens: I HAVE been under a promise to come to Boston and speak to its Chamber of Commerce for more than a year. It is a great pleasure to redeem that promise. To be the guest at a magnificent feast like this, to be thus received in Boston, one of the greatest centers of the wealth, of the culture and art, of the educational influences, and of the moral forces of our country, and to be welcomed by so distinguished a company, the Governor of the State, a Justice of the Federal Supreme Court, Foreign Ministers, members of the State Judiciary, United States Senators and Representatives, power- ful and broad-minded prelates and ministers of religion, together with the men who are the bone and sinew of the commerce of this great section — make this occasion most memorable in my life, and properly call for an expression on my part of deep gratitude and high appreciation. I congratulate Boston on a union in one organization of all of her business men, for it insures a concentration of influence that must make for good. The opportunities for usefulness are great in civic improvement and progress and in Stale and National affairs. While you doubtless include in your ranks persons of all political views, many questions must arise upon which you can all unite, and thus exert a most effective influence. As Boston is the commercial center of New England, your association really speaks for New England, a part of the 182 PRESIDENTIAL ADDRESSES 183 country whose importance can be measured by the emphasis with which sectional writers and speakers sometimes attack it. It is no mere exaggeration of speech or flattery, therefore, for me to point out that this Chamber of Commerce, by the ideals which it may maintain in the matter of business integrity and scrupulous business methods and in mainten- ance of law in the conduct of corporations, has great power and corresponding responsibility. I am very grateful for the hospitable reception which I have had on the North shore of Massachusetts. A vacation which I had planned of more than two months has been whittled down to a little more than one month; but every minute of it I have enjoyed. The bracing and pure air, the beautiful roads, the fine golf links, the prosperous towns and villages, the intelligent ami considerate people, all have contributed to make my stay a delightful one. The beauties of that region are nothing but an expansion and enlargement of the wonderful park system and suburbs of Boston. I have attempted to keep within the speed limit and before a broad-minded judge I could establish this by satis- factory evidence. But it has not prevented me from motor- ing into every village and town and countryside of Essex County. I am delighted at the prospect of returning here again next summer, when I hope and pray that no tariff or other bill will shorten my days of leisure. I am on the eve of beginning a journey 13,000 miles in length, which will enable me to see tens and hundreds of thousands of my fellow citizens, and enable them, I hope, to see me. Occasionally I hear a query, why should I start off on such a trip and what particular good does it do to anybody ? Well, it certainly is not going to be a pleasure trip, although I shall enjoy it. it will involve much hard work and a great deal of mental effort to think of things to say, and to say them simply and clearly so that they can be under- stood. 184 PRESIDENTIAL ADDRESSES It will strain the digestion not only of myself and those who accompany me, but also of the many who extend hospitality along the way; and it will very considerably reduce the appropriation of $25,000 made by Congress for the traveling expenses of the President. On the other hand, it will certainly give me a very much more accurate impression as to the views of the people in the sections which I visit. It will bring closely to me the needs of particular sections, so far as national legislation and executive action are concerned, and I believe it will make me a wiser man and a better public officer. Moreover, it will give the people an opportunity to see the man whom they have chosen, for the time being, to act as their chief executive, and who, because of this office, in a sense temporarily typifies nationality. I ought to be able to explain to the people some of the difficulties of government and some of the problems of solution from the standpoint of the executive and the legislator, as distinguished from that of the honest but irresponsible critic. The personal touch between the people and the man to whom they temporarily delegate power of course conduces to a better understanding between them. Moreover, I ought not to omit to mention as a useful result of my journey- ing that I am to visit a great many expositions and fairs, and that the curiosity to see the President will certainly increase the box receipts and tend to rescue many commendable enterprises from financial disaster. This is an innocent, but it has come to be a very useful, function of the presidential office. The thing that I most object to and look forward to with most fear is the necessity for speaking every day on some subject or other to a listening multitude. It becomes a brain-racking performance before one gets through with a trip of two months. At first everything the President says is reported in the newspapers. If after a time he repeats himself, as he must do, and the correspondents and reporters exercise the dis- AND STATE PAPERS 185 cretion which they ought, and cut the report, a suffering public will thank them. One of the reasons why I hesitated to fix the time for meet- ing the Boston Chamber of Commerce on the eve of my departure for the West was because I would have to make a speech here and I needed all the material that I could think of for speeches in the West. When I explained this to the committee who were good enough to wait upon me to tender your hospitable invitation I was relieved greatly to hear from Mr. Frederick P. Fish, who was one of the committee, the statement that I need give myself no concern in that regard, because commonplace remarks would be entirely appropriate from me here. Now, whether Mr. Fish meant by this to characterize the intellectual capacity of the speaker, or the intellectual demands of the audience, I am at a loss to say. But if what I say to-night is commonplace, you may know that I am only filling the order which Mr. Fish gave me, and complying with the invitation as I have understood it. This is the second week of September. We are all ending our vacations and going home. This is the time of the year, rather than the first of the calendar year, when good resolu- tions ought to be made — and kept, as far as possible. This is the time when, looking forward to the coming again of Congress in December, one must consider the needs of the country so far as they may be relieved by congressional legislation, and attempt to state what that legislation should be. Your chairman has made some reference to a number of subjects to which the attention of Congress may well be directed. In the first place, there is the monetary situation. While it is probable that the Vreeland Bill passed by the last Congress would aid us in case of another financial crash, it is certain that our banking and monetary system is a patched-up affair which satisfies nobody, and least of all those who are clear-headed and have a knowledge of what a financial system should be. 186 PRESIDENTIAL ADDRESSES The matter has been referred by Congress to a monetary commission, which has been studying with much interest and enthusiasm the financial and banking systems of the great Governments of Europe and has embodied and will soon publish in interesting and attractive form the best accounts of the financial systems of the world. It is quite apparent from the statements of Mr. Vreeland, who is now the head of the committee on banking and currency in the House of Representatives, and from the conversations of Mr. Aldrich, who is the chairman of the monetary commission and of the finance committee of the Senate, that the trend of the minds of the monetary com- mission is toward some sort of arrangement for a central bank of issue which shall control the reserve and exercise a power to meet and control the casual stringency which from time to time will come in the circulating medium of the country and the world. Mr. Aldrich states that there are two indispensable require- ments in any plan to be adopted involving a central bank of issue. The one is that the control of the monetary system shall be kept free from Wall Street influences, and the other, that it shall not be manipulated for political purposes. These are two principles to which we can all subscribe. It is quite possible that the report of the commission of a definite conclusion may be delayed beyond the next session of Congress. Meanwhile, the members of the commission intend to substitute a campaign of education in order to arouse public opinion to the necessity of a change in our monetary and banking systems, and to the advantages that will arise from placing some form of control over the money market and the reserve in the hands of an intelligent body of financiers responsible to the Government. I am told that Mr. Aldrich will "swing around the circle" in the present fall, and will lecture in many of the cities of the Middle West on the defects and needs of our monetary system. I can not too strongly approve of this proposal. AND STATE PAPERS 187 Mr. Aldrich, who is the leader of the Senate, and certainly one of the ablest statesmen in financial matters in either house, has been regarded with deep suspicion by many people, especially in the West. If, with his clear-cut ideas and simple but effective style of speaking, he makes apparent to the Western people what I believe to be his earnest desire to aid the people and to crown his political career by the preparation and passage of a bill which shall give us a sound and safe monetary and banking system, it would be a long step toward removing the political obstacles to a proper solution of the question. I do not need to arjme with this audience that a change in our monetary and banking systems is necessary. You are too good business men not to know it, and I sincerely hope that the whole force of your association will be exerted to insist upon the adoption of a satisfactory system before the end of this Administration. It is a subject that the general public has very little con- ception of, and when they suffer from the radical defects of the system they are utterly unable to tell how and why. We all need education on the subject. We must all unite to mend our roof before the storm and rain shall show us again its leaky and utterly inadequate character. I am not going to discuss the merits and demerits of the new tariff bill with you. I shall have often to refer to that before my journey is ended and I must save something for other audiences. Suffice it to say that the passage of the bill has removed a disturbing element in business. Nor shall I dwell at length on the necessity for amendments to the interstate-commerce law, to the anti-trust law, and the organization of the Departments in Washington with a view to promoting greater efficiency and expedition in the settlement of controversies arising under them. During Mr. Roosevelt's Administration we were all struck with the necessity for reform in business methods, for more scrupulous attention to the conduct of business in accord- ance with the law, and with the necessity for simplifying the 188 PRESIDENTIAL ADDRESSES law in such a way as to make it clear to corporate managers what they can do and what they can not do. We are, I believe, unless all signs fail, on the eve of another great business expansion, and an era of prosperity. Indeed it is already here in many branches of business. The hum of prosperity and the ecstasy of great profits are likely to dull our interest in these reforms and to lead us back again to the old abuses, unless we insist upon legis- lation which shall clinch and enforce those standards by positive law. Nothing revolutionary, nothing disturbing to legitimate business is needed; but we must set the marks clear in the statute by which the lines can be drawn and the proper legitimate paths be laid down upon which all business shall proceed, and must have it understood by means of prompt prosecution and punishment that the law is for all and is to be enforced even against the most powerful. Then, too, the needs in respect to the conservation of our national resources; the amendment to the public land system; the execution of the pure-food law; and all the rest of the important matters that should demand attention, make the legislative and executive labor of the next three years heavy enough, if our purposes are carried out, to exhaust the energy of the most enthusiastic and hopeful. Still the world is making progress — our country is mak- ing progress. Occasionally one hears a note like that of Governor Johnson, denouncing the East and calling upon the West to organize in a sectional way against the East, because the East is deriving more benefit from the governmental policy than the West, and at the expense of the West. It is difficult for one to treat such an appeal seriously. Throughout the country there is free trade of the freest character; and due to this the prosperity of the West, espe- cially of the agricultural West, is even more pronounced than that of the East. Moreover, the East is too close to the Pacific Coast, too close to the Middle West, too close to the Rocky Mountains, AND STATE PAPERS 189 because all the people of these western stretches have eastern ancestry and eastern associations and eastern connections, and because they have eastern capital with which their sections have been largely built up, and because they are too much assisted by eastern markets in enhancing the prices which their products bring, to make such an attempt at sectionalism successful. It is true that at times public questions will be given a local color by what is thought to be a local benefit, as dis- tinguished from the general and the national benefit. But such attitude is generally temporary, and it takes but a few years of business experience, it takes but a panic or two, to present the most convincing evidence that in this country we are all in the? same business boat, and that the prosperity of one section adds to the prosperity another, and the business disaster in one section is only the forerunner of business depression and disaster in another. I was born and brought up in the Middle West. I have had a New England ancestry and New England associations. Fortune threw me out into the Pacific so that I know some- thing of the feelings of the West coast. Jurisdiction as a judge gave me a somewhat intimate knowledge of Southern feelings and Southern aspirations. I feel, therefore, as if I could speak with confidence in respect to the whole nation, and as President of the United States may well lift up my voice to protest against any effort, by whomsoever made, to arouse section against section, and Americans against Americans. Not in the history of the country since the war has the feeling between the North and the South been more cordial and friendly than it is to-day, and a political attempt to make a cleavage between New England and the East on the one side and the West on the other, will be found to be so utterly hopeless as to confound those who propose it. And now, my friends and fellow citizens, as I take my departure for the West I feel that I carry from you to every citizen and inhabitant of the United States whom I shall meet, 100 PRESIDENTIAL ADDRESSES the cordial greetings of New England and the East, your con- gin tul. -it ions on the prospective prosperity in the whole country, and an earnest wish that the national Government shall be conducted in such a way as to ensure peace with all the nations of the world and tranquillity and prosperity at home, growing out of the conduct of business on lines of commercial integrity and within the law which forbids the organization and maintenance of monopolies and the systematic suppression of competition. Things are not perfect; but we have made progress. We have a right to be optimistic and believe that further progress is likely; that conditions are improving and that we may continue to maintain for all citizens of the country that equality of opportunity which it is the highest object of a well-conducted Government to preserve. XXII ADDRESS AT ORCHESTRA HALL, CHICAGO, ILLINOIS (SEPTEMBER 16, 1909) My Felloiv Citizens of Chicago: IT IS just about a year ago to-night that I made a speech in this hall to some 1,800 members of the railroad labor organizations, in which I attempted to convince them that there was nothing in my decisions as a Circuit Judge in labor injunction cases which ought to make them vote against me for the Presidency. It was a critical time in the campaign. It was a critical question in the campaign, and as I review that whole controversy, there was hardly another speech in my campaign of greater importance to me than that one; and in view of the result of the election I look back upon it now with especial interest. This hall, therefore, suggests one of the subjects upon which I shall speak to you. You will remember perhaps that the head of the Federa- tion of Labor, who had declared for my opponent, was anxious to carry the whole union labor vote against me, and as the ground for his action was my decisions as a Judge, I was put under the burden which I think no other candidate for the Presidency ever had to bear of explain- ing and defending in a political contest the decisions which I had made as a Judge upon the Bench. It was assumed by many, who thought themselves familiar with the situ- ation, that I would lose a part of the labor vote which had theretofore been evenly divided between the Republicans and the Democrats. The result showed that this assump- tion was incorrect and that labor men — union labor 191 192 PRESIDENTIAL ADDRESSES as well as non-union labor men — thought for themselves, voted according to their own judgment, and declined to be delivered as a body to one party or the other; and on the whole, I do not think that in that election I suffered materi- ally from the loss of labor votes. In the discussions I asserted that I was as much interested as any one in main- taining the cause of labor, when labor, organized or unorganized, by proper methods sought to better its condi- tion by legislation or otherwise. I said that I expected to recommend to Congress, if I were elected, that inter- state railroads be required to adopt any additional devices found useful for the purpose of saving from loss of life or limb employees engaged in the dangerous business of rail- roading. I also said that I favored the adoption of legis- lation looking to a proper definition of the cases in which preliminary injunctions might issue without notice and defining the proper procedure in such matters. Now that the election has come and gone, I want to take this oppor- tunity of saying that I have not forgotten my own promises or those of the platform, and I propose in the next session of Congress to recommend the legislation on the subject of injunction which was promised in the Republican platform, and to see whether by such legislation it is not possible to avoid even a few cases of abuses that can be cited against the Federal courts in the exercise of their jurisdiction. I do not think trades-unionism was greatly aided by the attempt to drag all organized labor into politics, and to induce it to vote one way; but that does not prevent my placing a proper estimate upon the immense good for labor in general which its organization and its efforts to secure higher wages have accomplished. I know there is an element among employers of labor, and investors of capital which is utterly opposed to the organization of labor. I can not sympathize with this element in the slightest degree. I think it is a wise course for laborers to unite to defend their interests. It is a wise course for them to provide a fund by which, should occasion AND STATE PAPERS 103 arise and strikes or lock-outs follow, those who lose their places may be supported pending an adjustment of the difficulties. I think the employer who declines to deal with organized labor and to recognize it as a proper element in the settlement of wage controversies is behind the times. There is not the slightest doubt that if labor had remained unorganized, wages would be very much lower. It is true that in the end they would probably be fixed by the law of supply and demand, but generally before this law mani- fests itself, there is a period in which labor, if organized and acting together, can compel the employer promptly to recognize the change of conditions, and advance wages to meet the rising market and increase in profits; and on the other hand can delay the too quick impulse of the employer facing a less prosperous future to economize by reducing wages. There is a higher standard of living among American laborers than in any country in the world, and while there have doubtless been a good many other reasons for this, certainly the effect of the organization of labor has been to maintain a steady and high rate of wages making such a standard of living possible. Nothing I have said, or shall say, should be construed into an attitude of criticism against, or unfriendliness to those workingmcn who for any reason do not join unions. Their right to labor for such wages as they choose to accept is sacred, and any lawless invasion of that right can not be too severely condemned. All advantages of trades-union- ism, great as they are, cannot weigh a feather in the scale against the right of any man lawfully seeking employment to work for whom and at what price he will. And I say this with all the emphasis possible even though the fact is that, if I were a workingman, I should probably deem it wise to join a union for the reasons given. The effect of organized labor upon such abuses as the employment of child labor, as the exposure of laborers to undue risk in dangerous employments, to the continuance 194 PRESIDENTIAL ADDRESSES of unjust rules of law exempting employers from liability for accidents to laborers, has been [direct, immediate and useful, and such reforms in those matters as have taken place would probably be long delayed but for the energetic agitation of the questions by the representatives of organ- ized labor. Of course, when organized labor permits itself to sympathize with violent methods, with breaches of the law, with boycotts and other methods of undue duress, it is not entitled to our sympathy. But it is not to be expected that such organizations shall be perfect, and that they may not at times and in particular cases show defective tenden- cies that ought to be corrected. One notable defect which has been pointed out has been in the disposition of the majority of members in labor unions to reduce the compensation of all men engaged in a particular trade to a dead level, and to fail to recognize the difference between the highly skilled and very industri- ous workman and the one only less skilled and less indus- trious. I think that there is a movement among trades- unions themselves to correct this levelling tendency, and nothing could strengthen the movement more than the adop- tion of some plan by which there should remain among union workmen the impetus and motive to be found in the greater reward for greater skill and greater industry. There is one thing to be said in respect to American trades-unionism that its critics are not generally alive to. In France the trades-unions are intensely socialistic. Indeed, in some of the late difficulties it was plain that there was a strong anarchistic feeling among them and that they opposed all authority of any kind. It is also plain that the tendency toward socialism in England and England's trades-unionism is growing stronger and stronger. I need not point out the deplorable results in this country if trades- unionism became a synonym for socialism. Those who are now in active control, the Federation of Labor and all the great railroad organizations, have set their faces like flint against the propagandism of socialistic principles. They AND STATE PAPERS 195 are in favor of the rights of property and of our present institutions modified by such remedial legislation as to put workingmen on equality with their opponents in trade controversies and trade contracts and to stamp out the mono- poly and the corporate abuses which are an outgrowth of our present system unaccompanied by proper limitation; and I think all of us who are in favor of the maintenance of our present institutions should recognize this battle which has been carried on by the conservative and influential members of trades-unionism, and willingly give credit to these men as the champions of a cause which should com- mand our sympathy, respect and support. Our friends of the great unions at times complain of our courts, more perhaps because of the decisions in injunc- tion cases than for anything else. I have already referred to this particular phase of litigation in which they have an interest, but when the subject of courts is mentioned it suggests to me a larger field for complaint and reform in which all citizens are interested and have a right to be heard. There is no subject upon which I feel so deeply as upon the necessity for reform in the administration of both civil and criminal law. To sum it all up in one phrase, the difficulty in both is undue delay. It is not too much to say that the administration of criminal law in this country is a disgrace to our civilization, and that the prevalence of crime and fraud, which here is greatly in excess of that in the European countries, is due largely to the failure of the law and its administrators to bring criminals to justice. I am sure that this failure is not due to corruption of officials. It is not due to their negligence or laziness, though of course there may be both in some cases; but it is chiefly due to the system against which it is impossible for an earnest prosecutor and an efficient judge to struggle. We inherited our system of criminal prosecutions and the constitutional provisions for the protection of the accused in his trial from England and her laws. We inherited from her the jury trials. All these limitations and the jury system are still 196 PRESIDENTIAL ADDRESSES maintained in England, but they have not interfered with an effective prosecution of criminals and their punishment. There has not been undue delay in English criminal courts. In this country we have generally altered the relation of the judge to the jury. In England the judge controls the trial, controls the lawyers, keeps them to relevant and proper argument, aids the jury in its consideration of the facts, not by direction but by suggestion, and the lawyers in the conduct of the cases are made to feel that they have an obli- gation not only to their clients but also to the court and to the public at large not to abuse their offices in such a way as unduly to lengthen the trial and unduly to direct the atten- tion of the court and the jury away from the real facts at issue. In this country there seems to have been on the part of all State legislatures a fear of the judge and not of the jury, and the power which he exercises in an English court has by legislation been reduced from time to time until now, and this is especially true in Western States, he has hardly more power than the moderator in a religious assembly. The tendency of legislation is to throw the reins on the back of the jury and to let them follow their own sweet will, influ- enced by all the arts of counsel for the defendant in leading them away from the real points at issue, and in awakening their emotions of pity for the defendant in forgetfulness of the wrongs of the prosecuting witness, or it may be of the deceased, and of the rights of society to be protected against crime, and all these defects are emphasized in the delays which occur in the trials — delays made necessary because the trials take so great a time. A murder case in England will be disposed of in a day or two days that here will take three weeks or a month, and no one can say, after an examination of the record in England, that the rights of the defendant have not been preserved and that justice has not been done. It is true that in England they have enlarged the procedure to the point of allowing an appeal from a judgment in a criminal case to a court of appeals, but this appeal is usually taken and allowed only on a few questions AND STATE PAPERS 197 easily considered by the court above and promptly decided. Counsel are not permitted to mouse through the record to find errors that in the trial seemed of little account, but that are developed into great injustices in the court of appeal. This is another defect of our procedure. No criminal is content with a judgment of the court below, and well may he not be because the record of reversals is so great as to encourage it in every case and to hang important judgments in appellate proceedings sometimes for years. I don't know when the reforms are to be brought about in this country. Until our people shall become fully aware and in some concrete way be made to suffer from the escape of criminals from just judgment in this country, the system may continue. One of the methods by which it could be remedied in some degree is to give judges more power in the trial of criminal causes and enable them to aid the jury in its consideration of facts and to exercise more control over the arguments that counsel see fit to advance. Judges, and especially judges who are elected, ought not to be mis- trusted by the people. A judgeship is a great office and the man who holds it should exercise great power and he ought to be allowed to exercise that in a trial by jury. Then it is undoubtedly true that in England, lawyers in the conduct of their cases feel much more and respect much more their obligations to assist the court in administering justice and restrain themselves from adopting the desperate and extreme methods for which American lawyers are even applauded. The trial here is a game in which the advantage is with the criminal, and if he wins he seems to have the sym- pathy of a sporting public. Trial by jury, as it has come to us through the Constitution, is the trial by jury under the English law, and under the law the vagaries, the weak- nesses, the timidities and the ignorance of juries were to be neutralized by the presence in court of a judge to whom they should look for instruction upon the law and sound advice in respect to the facts, although of course with regard to the facts their ultimate conclusion must be their own, 198 PRESIDENTIAL ADDRESSES and they were fully at liberty to disregard the judicial sug- gestion. But reform in our criminal procedure is not the only reform that we ought to have in our courts. On the civil side of the courts there is undue delay, and this always works for the benefit of the man with the longest purse. The employment of lawyers and the payment of costs all become more expensive as the litigation is extended. It used to be thought that a system by which cases involving small amounts could be carried to the Supreme Court through two or three courts of intermediate appeal was a perfect system, because it gave the poor man the same right to go to the Supreme Court as the rich man. Nothing is further from the truth. What the poor man needs is a prompt decision of his case and by limiting the appeals in cases involving small amounts of money so that there shall be a final decision in the lower court, an opportunity is given to the poor litigant to secure a judgment in time to enjoy it and not after he has exhausted all his resources in liti- gating to the Supreme Court. I am a lawyer and admire my profession, but I must admit that we have had too many lawyers in legislating on legal procedure, and they have been prone to think that litigants were made for the purpose of furnishing busi- ness to courts and lawyers, and not courts and lawyers for the benefit of the people and litigants. More than this, I am bound to say that in the matter of reducing the cost of litigation, and, indeed, the time of it, Congress and the Federal courts have not set a good example. Probably under the Constitution it is impossible in the Federal courts to unite suits at law and cases in equity in one form of action, as has been done in the codes of the States, but it certainly is possible to introduce a simpler form of pro- cedure both in suits in law and suits in equity. This last form of procedure — that is, equity — has been entirely in the control of the courts and especially the Supreme Court, and yet in years no real reform has taken place in AND STATE PAPERS 199 that regard, and the procedure is just about as clumsy, just about as expensive, just about as likely to produce delay as it was thirty or forty years ago. The fact that no reform has been instituted may perhaps be due to the circumstance that our judges have been overloaded with work in the Supreme Court, and thus opportunity has not been seized for this reform. But I conceive that the situation is now ripe for the appointment of a commission by Congress to take up the question of the law's delays in the Federal courts and to report a system which shall not only secure quick and cheap justice to the litigants in the Federal courts but shall offer a model to the legislatures and courts of the States by the use of which they can themselves institute reforms. I would abolish altogether the system of payment of court officers by fee. The fee system may be properly continued for the reimbursement of the public treasury by litigants specially interested, but the fees ought to be reduced to the lowest point and the motive for increasing the expense of litigation that arises from the payment of the compensation of court officers out of fees should be removed. I do not think that the delays in justice are due to any niggardliness on the part of the public in appropriating money to meet the expenses of administration. The evil lies deeper in the system which I have referred to only in a most summary way. Of all the questions that are before the American people I regard no one as more important than this, to wit, the improvement of the administration of justice. We must make it so that the poor man will have as nearly as possible an opportunity in litigating as the rich man, and under pre- sent conditions, ashamed as we may be of it, this is not the fact. And now, my friends, I have subjected you to a rather solemn discussion of a rather solemn subject. I always like to visit Chicago because it is in a sense the center of the country. Much more than Boston is it the hub about which many people and many interests revolve. 200 PRESIDENTIAL ADDRESSES In making up the personnel of my Cabinet and my admin- istration I have been surprised to find how many admirable men you have in your community, and I must apologize for the drain which I have made upon your resources by calling to Washington and foreign courts at least half a dozen of your most prominent and able citizens. In doing so I had to ask them all to make personal sacrifices in the matter of compensation and to gather their reward from dis- interested desire to serve the public and a patriotic willing- ness to put their abilities at the disposition of the country. We are entering now upon an era of prosperity which I hope will be long continued. We have just passed a tariff bill which has ended for the time the disturbance of busi- ness that always arises from the consideration and agitation over such a bill, and there is nothing now to prevent the application of all the capital and all the forces which have been suspended for the last year and a half or two years by a lack of confidence and a waiting for such settlement, to the expansion of business and the further development of the resources of this country. But this prospect of prosperity must not blind us to the necessity for carrying out certain great reforms advocated by Mr. Roosevelt, recommended in the Republican party platform, which I believe are needed to prevent a return to the abuses of which all men recognize the evil in our previous business methods and the management of our great corporations. I expect to consider these questions more at length at another stage in my journey, as I do also the character of the tariff bill which has been adopted and which has been subjected to much criticism, but to-night I feel that I have wearied you far beyond any claim I have had to your attention. XXIII ADDRESS AT THE STATE FAIR GROUNDS, MILWAUKEE, WIS. (SEPTEMBER 17, 1909) Mr. President, Governor, Senators, Ladies and Gentlemen, and Citizens of Wisconsin : I AM only too conscious of my lack of experience and knowledge in the presence of farmers. You have a Governor who is a farmer. You have Senators who are farmers. I think all your business men must be farmers if I can judge by the crowd that greets me here. I must admit that I am a city-bred man, and while the spirit would be willing I am afraid I could not milk a cow. Neverthe- less, he must be blind indeed to the interests of his country, he must be lacking indeed in acquaintance with the progress of the world who does not realize what, in the fifty years since that noble patriot, Abraham Lincoln, stood here, has been accomplished in the way of improvement of agriculture and scientific investigation into the methods of breeding and into the methods of treating the soil. But I do not intend to occupy your time in discussing something that you know a great deal better than I do. I want to get on to something that perhaps we are both equally ignorant of, but which it will help us to discuss. Something was said about a man's being a ruler and a servant of the people. I have had occasion to say a number of times that it is perhaps true that the President of the United States has a great deal of power, but while he is in office the thing that strikes him is the limitations and the difficulties of exercising that power. The real power is in the House of Representatives and in the Senate. But 201 202 PRESIDENTIAL ADDRESSES the man who gets the blame for everything is the fellow at the top. Now, parties make platforms. They are said to be, in the language of the cynical, something to get in on but not to stand on. Our party, if I may make a partisan reference when I am here only in a non-partisan capacity — the Republican party agreed that we ought to have an insti- tution, the benefit and virtue of which I wish to discuss this morning, in the shape of postal-savings banks. We heard discussed in the Senate last winter the question of how planks were introduced into a party platform, and when they grew a little burdensome to carry out, it was said that they were put in at three o'clock in the morning when more than half the convention were asleep, and when the minority was awake enough to push them in. I don't mean to say that the question of postal-savings banks binds every one who calls himself a Republican — I don't mean that a plank binds every one who calls himself a Republican — because that is not the kind of people the Americans are. If they do not like a plank in a platform, or if they do not like the platform, they cease to be Republicans, or they are Republicans with an exception, and that indicates a free, enlightened and discriminating people. But I am here to uphold the doctrine of postal-savings banks, because I believe that they will fill in this country a long-felt want. In the first place I want to describe a little bit what it was proposed to put into the savings-bank law, in order that you may understand something about which we are speaking. It was proposed to make every money-order office in the United States, of which there are 40,000, and such other post offices as the Postmaster General might think fit, postal-savings banks. It was proposed to allow anybody to deposit there a dollar or anything more than a dollar, in multiples of ten cents. It was proposed to limit the amount of the deposit in any one month to $200, and to limit the amount of total deposits to $1,000, and to agree to pay interest at the rate of 2 per cent, on not more than $500. The money thus accumulated was to be invested AND STATE PAPERS 203 by a committee consisting of the Postmaster- General, the Attorney- General and the Secretary of the Treasury, either in the neighboring national bank in the county, or if there was no such bank, in the nearest national bank, or if that was impracticable, in State, county or Federal bonds. They were required to secure in everything but Federal bonds 2J per cent, annually. Now, our friends the bankers — and they are friends; I am not attacking them. It is not wise to attack bankers either, for really we have a right to be proud of our banking fraternity. — But there are a good many who object to the postal-savings banks on a number of grounds, and I wish to take up those objections. In the first place it is said that the postal-savings bank is a very paternal institution; that it has a leaning toward State socialism, and that it proposes to take the banking business out of the hands of private persons and put it in those of the Government. Now I am not a paternalist, and I am not a socialist, and I am not in favor of having the Gov- ernment do anything that private citizens can do as well, or better. We have passed beyond the time of what they call the laisser-faire school which believes that the Govern- ment ought to do nothing but run a police force. We do recognize the interference of the government because it has great capital and great resources behind it, and because sometimes it can stand the lack of an immediate return on capital and help out. We did it in our Pacific roads. We have done it in a great many different ways, and this particular postal-savings banks business is a business which the government is especially fitted to do, and which no system of private banks can do. In the first place they have this great organization of the post officej with skilled employ- ees sprinkled all over this country in every nook and cranny of it. Whether there are many people or few, the post offices have to be maintained. Therefore it will be a most economic means of establishing a system of savings banks merely to add one function to the duty of the postmasters all through this country. It can be done most cheaply. 204 PRESIDENTIAL ADDRESSES The Government can afford it and nobody else could do it. It is said that we have enough banking in this country and therefore we ought not to put the Government into it. It is said, moreover, that if we did put the Government into it, it would not be very long before the Government would do all the banking, discounting and everything else, and the bankers would be driven out of business. I don't think that that argument amounts to much. It is to say that the American people have not sense enough to discrimi- nate between what is a right use of the post office and what is a right thing to do with reference to savings banks and the going into the general business of discounting and bank- ing which the government has no business to do. I believe in the discriminating sense of the American people to know the degree to which they ought to go in a good thing and then to know that when they get beyond it, it becomes a bad thing. To say that if the people go into one good thing, they are necessarily going to get into something which is not good, is to question the intelligence and the discrimi- nation of our people, and I don't propose to do it. Let us see about banking and the amount that the people of the United States have in the way of opportunities to deposit money. In 14 States the deposits of savings banks amount to $3,000,000,000. I won't say that in those States there was a crushing demand for postal-savings banks, although even there they would discharge a certain function, but when you come to consider the other 32 States and terri- tories, the deposits are only $70,000,000. In other words, 98 per cent, of all the deposits in the savings banks in the country are in 14 States, which tends to show conclusively that in the 32 States the banking facilities — at least the savings-bank facilities — for the deposit of funds to encour- age thrift on the part of the people are very inadequate, and it is in those States that we expect, if the postal-savings bank system is put in, that the people will be induced to save more money instead of spending it, or instead of putting it into the sock where it does not do much good until it is AND STATE PAPERS 205 withdrawn. Now, in New England in the savings banks there are two citizens to one savings-bank account. In every other part of the United States the savings-bank accounts are one to every 157 people, which tends to show the concentration of savings-bank deposits in the East. Another fact showing the need for such a system is that to-day in the distant States to which I have referred there are $8,000,000 deposited by men who take out money orders and just leave the money in the money-order office of the post office without drawing any interest at all. They just put it there because they don't know where else to put it, which is an indication that they ought to have some place where they can put it and draw some interest. Our new citizens send abroad every year over $90,000,000, and a very large proportion of that goes into the savings banks abroad. Our new immigrants when they come here are distrustful of the local banks, they are distrustful of the private savings-deposit banks, and what they want is a gov- ernment guaranty in order to secure to them the certainty that when they want their money, they can get it. They are not so insistent on the rate of interest as they are on the certainty of getting their money back, and if they have the government guaranty that they will get it, they can be counted upon rather to deposit their money than to waste it. The great usefulness of the postal-savings bank is an encourage- ment of thrift on the part of those who are just wavering in the balance whether they shall save the money or spend it, because they do not know where they can put it safely. It is said that this will interfere with the system of savings banks and other banks. I most urgently deny that, because we only propose to pay 2 per cent, and every savings bank that you know pays at least three and sometimes three and one-half or four. Therefore, those who put their money in a postal-savings bank at 2 per cent, are not those who would be likely to put the money in a savings bank at three. Instead of that it will furnish more money to the savings banks, and I will tell you how, and I will tell you this in 200 PRESIDENTIAL ADDRESSES confidence, because this is the way it is worked in other countries. You stir up a lot of people to begin to save money and put it in at 2 per cent, and they put it in there because they know they can get the money back. That is the whole idea they have at first, but after they begin to calculate what a low rate two per cent, is they begin to look around; they learn for themselves; they acquire some discrimination, and they understand that in the neighbor- ing bank they can get 3 or 3^ per cent. They acquire more intelligence and more knowledge in respect to the matter and then they begin to estimate the security of the private or State savings bank. Under these conditions this fund, which never would have come at all, will be avail- able for the savings banks as the intelligence of the depositor grows greater and as his willingness to risk a little more in order to get a little more interest becomes more acute. We are not usually backward in adopting new and proper assistance to our people and to the government, but we may look abroad frequently to learn lessons in the matter of finance, and even in the matter of some departments of the Government. I want to read you a list of the countries that have postal-savings banks. Let me first say, in Italy there are $273,000,000 deposited in the postal- savings banks of the country. In Russia $130,000,000; in Great Britain and Ireland $706,000,000; in Canada $47,000,000; in Japan $47,000,000. Now, I want to refer to Canada. Canada has postal-savings banks and what is the result along the border up in the Northwest ? You find Americans going over the border and making deposits in those savings banks. Why ? Because they have the guarantee of the Canadian Government. Now, it is right that when the Gov- ernment takes custody of money it should agree to return it. It is upon the agreement to return that the basis of the postal-savings bank may be put. There are postal-savings banks in Austria, Belgium, Japan, France, Hungary, Italy, Holland, Russia, Sweden, Great Britain and Ireland, Baha- mas, Canada, India, Ceylon, Straits Settlements, Cape AND STATE PAPERS 207 Colony, Tasmania, Western Australia, New Zealand and the Gold Coast, and I may add in the Philippines, because I had something to do with putting them there. In Germany they do not have them, but they have a system of town and provincial banks which fills the measure of the demand. You know we have issued upward of $700,000,000 of l 2 per cent, bonds of the United States, and we have prided ourselves, and our heads have been a little bit swelled on the theory, that we could float bonds at 2 percent, and no other country could. We did float those at par at 2 per cent. — I don't know but that it was a little more — but we did it by getting the banks into a corner so that they had to have under the law some government security, and so they were obliged to buy those 2 per cent, bonds. Now they are liable to be on the market. We have to take care of them in some way. We have got to prevent their going down below par because the normal interest rate that a government can get is quite above 2 per cent. — somewhere between 2 and 3 per cent., and if we have the postal-savings banks, if we have a large fund of $.500,000,000 to $000,000,000 or $700,000,000, as we may expect to have in view of what has happened in Great Britain, we can use that fund to put in Government bonds and take care of that issue, which is our child and which after all we ought not to be so proud of, because we fooled the world into thinking that we were getting something at 2 per cent, and that our credit was worth that, when as a matter of fact we were forcing the banking fraternity into taking them because of certain other advantage's which they had to have. It was just a little sharp game which the Government played, and it is necessary that in any legislation which comes along we should take care of that issue of 2 per cent, before issuing any more bonds at a higher rate. I observed yesterday in the convention of bankers the proposition was urgently and ably fought. Nevertheless, it seems to me, looking at it from a larger field of view possibly than bankers can have, because we are all subject 208 PRESIDENTIAL ADDRESSES to the prejudices of our profession — I am a lawyer, and I know I am prejudiced as a lawyer, and I think bankers are likely to be prejudiced as bankers; nevertheless, I believe that the arguments in favor of instituting such a system, backed up by the experience of so many other nations as those I have named to you, justify our going into the business of encouraging our people by something that will be inex- pensive to the Government, encouraging our people, those of them who have not the sense of security in private banks, encouraging them to a thrift and furnishing the means by which they shall save on small interest. We are looking forward, I hope, with confidence, to a readjustment of our whole financial and banking system. Certainly it needs it, and it has been suggested that the postal-savings bank might well await that. I am bound to say that I do not see the necessity for uniting them. It seems to me that one system can stand by itself, and if we adopt the postal- savings bank it would be easily worked into a general system of banking because those savings banks will furnish us $500,000,000 or $600,000,000, and that is a very tidy pile to have around for the Government to use legitimately in order to carry on 4ny financial operations. XXIV TARIFF SPEECH (DELIVERED AT WINONA, MINN., SEPTEMBER 17, 1909) My Fellow Citizens: AS LONG ago as August, 1906, in the Congressional campaign in Maine, I ventured to announce that I was a tariff revisionist and thought that the time had come for readjustment of the schedules. I pointed out that it had been ten years prior to that time that the Dingley Bill had been passed; that great changes had taken place in the conditions surrounding the productions of the farm, the factory, and the mine, and that under the theory of pro- tection in that time the rates imposed in the Dingley Bill in many instances might have become excessive; that is, might have been greater than the difference between the cost of production abroad and the cost of production at home with a sufficient allowance for a reasonable rate of profit to the American producer. I said that the party was divided on the issue, but that in my judgment the opinion of the partv was crystallizing and would probably result in the near future in an effort to make such revision. I pointed out the difficulty that there always was in a revision of the tariff, due to the threatened disturbance of industries to be affected and the suspension of business, in a way which made it unwise to have too many revisions. In the summer of 1907 my position on the tariff was challenged, and I then entered into a somewhat fuller discussion of the matter. It was contended by the so-called "standpatters" that rates beyond the necessary measure of protection were not objec- tionable, because behind the tariff wall competition always reduced the prices, and thus saved the consumer. But I 209 210 PRESIDENTIAL ADDRESSES pointed out in that speech what seems to me as true to-day as it then was, that the danger of excessive rates was in the temptation they created to form monopolies in the pro- tected articles, and thus to take advantage of the excessive rates by increasing the prices, and therefore, and in order to avoid such a danger, it was wise at regular intervals to examine the question of what the effect of the rates had been upon the industries in this country, and whether the conditions with respect to the cost of production here had so changed as to warrant a reduction in the tariff, and to make a lower rate truly protective of the industry. It will be observed that the object of the revision under such a statement was not to destroy protected industries in this country, but it was to continue to protect them where lower rates offered a sufficient protection to prevent injury by foreign competition. That was the object of the revision as advocated by me, and it was certainly the object of the revision as promised in the Republican platform. I want to make as clear as I can this proposition, because, in order to determine whether a bill is a compliance with the terms of that platform, it must be understood what the platform means. A free trader is opposed to any protect- ive rate because he thinks that our manufacturers, our farmers, and our miners ought to withstand the competi- tion of foreign manufacturers and miners and farmers, or else go out of business and find something else more profitable to do. Now, certainly the promises of the plat- form did not contemplate the downward revision of the tariff rates to such a point that any industry theretofore protected should be injured. Hence, those who contend that the promise of the platform was to reduce prices by letting in foreign competition are contending for a free trade and not for anything that they had the right to infer from the Republican platform. The Ways and Means Committee of the House, with AND STATE PAPERS 211 Mr. Payne- at its head, spent a full year in an investigation, assembling evidence in reference to the rates under the tariff, and devoted an immense amount of work to the study of the question where the tariff rates could be reduced and where thev ought to be raised with a view to maintaining a reasonably protective rate, under the principles of the platform, for every industry that deserved protection. They found that the determination of the question, what was the actual cost of production and whether an industry in this country could live under a certain rate and withstand threatened competition from abroad, was most difficult. The manufacturers were prone to exaggerate the injury which a reduction in the duty would give and to magnify the amount of duty that was needed; while the importers, on the other hand, who were interested in developing the importation from foreign shores, were quite likely to be equally biased on the other side. Mr. Payne reported a bill — the Payne tariff bill — which went to the Senate and was amended in the Senate by increas- ing the duty on some things and decreasing it on others. The difference between the House bill and the Senate bill was very much less than the newspapers represented. It turns out upon examination that the reductions in the Senate were about equal to those in the House, though they differed in character. Now. there is nothing quite so dif- ficult as the discussion of a tariff bill, for the reason that it covers so many different items, and the meaning of the terms and the percentages are very hard to understand. The passage of a new bill, especially where a change in the method of assessing the duties has been followed, presents an opportunity for various modes and calculations of the percentages of increases and decreases that are most mis- leading and really throw no light at all upon the changes made. One way of stating what was done is to say what the facts show — that under the Dingley law there were 2,024 items. 212 PRESIDENTIAL ADDRESSES This included dutiable items only. The Payne law leaves 1,150 of these items unchanged. There are decreases in 654 of the items and increases in 220 of the items. Now, of course, that does not give a full picture, but it does show the proportion of decreases to have been three times those of the increases. Again, the schedules are divided into letters from A to N. The first schedule is that of chemi- cals, oils, etc. There are 232 items in the Dingley law; of these, 81 were decreased, 22 were increased, leaving 129 unchanged. Under Schedule B — earths, earthenware and glassware — there were 170 items in the Dingley law; 46 were decreased, 12 were increased, and 112 left unchanged. C is the schedule of metals and manufactures. There were 321 items in the Dingley law; 185 were decreased, 30 were increased, and 106 were left unchanged. D is the schedule of wood and manufactures of wood. There were 35 items in the Dingley law; 18 were decreased, 3 were increased, and 14 were left unchanged. There were 38 items in sugar, and of these 2 were decreased and 36 left unchanged. Sched- ule F covers tobacco and manufactures of tobacco, of which there were 8 items; they were all left unchanged. In the schedule covering agricultural products and provisions there were 187 items in the Dingley law; 14 of them were decreased, 19 were increased, and 154 left unchanged. Schedule H — that of spirits and wines — contained 33 items in the Dingley law; 4 were decreased, 23 increased, and 6 were left unchanged. In cotton manfactures there were 261 items; of these 28 were decreased, 47 increased, and 186 left unchanged. In Schedule J — flax, hemp, and jute — there were 254 items in the Dingley law; 187 were reduced, 4 were increased, and 63 left unchanged. In wool, and manfactures thereof, there were 78 items; 3 were decreased, none were increased, and 75 left un- changed. In silk and silk goods there were 78 items; of these, 21 were decreased, 31 were increased, and 26 were left unchanged. In pulp, papers, and books there were 59 items in the Dingley law, and of these 11 were decreased, AND STATE PAPERS 211 9 were increased, and 39 left unchanged. In sundries there were 270 items, and of these 54 were decreased, 20 were increased, and 196 left unchanged. So that the total showed 2,024 items in the Dingley law, of which 654 were decreased, 220 were increased, making 874 changes, and 1,150 left unchanged. Schedules. A- Chemicals, oils, etc. B. Earths, earthenware and glassware - C Metals, and manufactures of D. Wood, and manufactures of E. Sugar, molasses, and manufactures of F. Tobacco, and manufactures of ... . G. Agricultural products and provisions H, Spirits, wines, etc I. Cotton manufactures J. Flax, hemp, jute, and manufactures of K. Wool, and manufactures of L. Silk and silk goods M. Pulp, papers and books N. Sundries Total Items Dingle} law. 2:32 170 S21 35 88 8 1ST S3 261 .'.vt 78 7s 59 270 Changes in Dingley law by Payne law. De- creases. In- creases. 81 46 185 18 2 14 t 28 187 3 21 II SI Total change; Un- changed 215 21 129 112 106 14 15+ 6 186 6:5 75 26 39 196 Attempts have been made to show what the real effect of these changes has been by comparing the imports under the various schedules, and assuming that the changes and their importance were in proportion to the importations. Nothing could be more unjust in a protective tariff which also contains revenue provisions. Some of the tariff is made for the purpose of increasing the revenue by increas- ing importations which shall pay duty. Other items in the tariff are made for the purpose of reducing competition, that is, by reducing importations, and, therefore, the ques- tion of the importance of a change in rate can not in the slightest degree be determined by the amount of imports that take place. In order to determine the importance of the changes, it is much fairer to take the articles on which 214 PRESIDENTIAL ADDRESSES the rates of duty have been reduced and those on which the rates of duty have been increased, and then determine from statistics how large a part the articles upon which duties have been reduced play in the consumption of the country, and how large a part those upon which the duties have been increased play in the consumption of the country. Such a table has been prepared by Mr. Payne, than whom there is no one who understands better what the tariff is and who has given more attention to the details of the schedule. Now, let us take Schedule A — chemicals, oils, and paints. The articles upon which the duty has been decreased are consumed in this country to the extent of $433,000,000. The articles upon which the duty has been increased are consumed in this country to the extent of $11,000,000. Take Schedule B. The articles on which the duty has been decreased enter into the consumption of the country to the amount of $128,000,000, and there has been no increase in duty on such articles. Take Schedule C — metals and their manufactures. The amount to which such articles enter into the consumption of the country is $1,221,000,000, whereas the articles of the same schedule upon which there has been an increase enter into the consumption of the country to the extent of only $37,000,000. Take Schedule D — lumber. The articles in this schedule upon which there has been a decrease enter into the consumption of the country to the extent of $56G,000,000, whereas the articles under the same schedule upon which there has been an increase enter into its consumption to the extent of $31,000,000. In tobacco there has been no change. In agricultural products, those in which there has been a reduc- tion of rates enter into the consumption of the country to the extent of $483,000,000; those in which there has been an increase enter into the consumption to the extent of $4,000,000. In the schedule of wines and liquors, the articles upon which there has been an increase, enter into the consumption of the country to the extent of $462,000,000. AND STATE PAPERS 215 In cottons there has been a change in the higher-priced cottons and an increase. There has been no increase in the lower-priced cottons, and of the increases the high- priced cottons enter into the consumption of the country to the extent of $41,000,000. Schedule J — flax, hemp, and jute: The articles upon which there has been a decrease enter into the consumption of the country to the extent of $22,000,000, while those upon which there has been an increase enter into the consumption to the extent of $804,000. In Schedule K, as to wool, there has been no change. In Schedule L, as to silk, the duty has been decreased on articles which enter into the consumption of the country to the extent of $8,000,000, and has been increased on articles that enter into the consumption of the country to the extent of $106,000,000. On paper and pulp the duty has been decreased on articles, including print paper, that enter into the consumption of the country to the extent of $67,000,000, and increased on articles that enter into the consumption of the country to the extent of $81,000,000. In sundries, or Schedule X, the duty has been decreased on articles that enter into the consumption of the country to the extent of $1,719,000,000; and increased on articles that enter into the consumption of the country to the extent of $101,000,000. It will be found that in Schedule A the increases covered only luxuries — perfumeries, pomades, and like articles; Schedule II — wines and liquors — which are certainly luxuries and are made subject to increase in order to increase the revenues, amounting to $462,000,000; and in Schedule L — silks — which are luxuries, certainly, $106,000,000, making a total of the consumption of those articles upon which there was an increase and which were luxuries of $579,000,000, leaving a balance of increase on articles which were not luxuries of value in consumption of only $272,000,000, as against $5,000,000,000, representing the amount of articles entering into the consumption of the country, mostly necessities, upon which there has 21G PRESIDENTIAL ADDRESSES been a reduction of duties, and to which the 650 decreases applied. Statement Sched- ule. Article. Chemicals, oils, and paints Earths, earthenware, and glassware Metals, and manufactures of Wood, and manufactures of Sugar, molasses, and manufactures of Tobacco, and manufactures of (no change of rates) Agricultural products and provisions Spirits, wines, and other beverages Cotton manufactures Flax, hemp, jute, and manufactures of Wool, and manufactures of wool. (No production statistics available for articles affected by changes of rates) Silks and silk goods Pulp, papers, and books Sundries Total 4,951,878,575 Consumption value. Duties de- creased. $4.33,099,846 128,423,732 1,221,956,620 566,870,950 300,965,953 483,430,637 7,947,568 67,628,055 1,719,428,069 Duties in- creased. $11,105,820 37,675,804 31,280,372 4,380,043 462,001,856 41,622,024 804,445 106,742,646 81,486,466 101,656,598 878,756,074 Of the above increases the following are luxuries, being articles strictly of voluntary use: Schedule A. Chemicals, including perfumeries, pomades and like articles $11,105,820 Schedule H. Wines and liquors -.. „., 462,001,856 Schedule L. Silks ...„„- , 106,742,646 Total 579,850,322 This leaves a balance of increases which are not on articles of luxury of $298,905,752, as against decreases on about five billion dollars of consumption. Now, this statement shows as conclusively as possible the fact that there was a substantial downward revision on articles entering into the general consumption of the country which can be termed necessities, for the proportion is $5,000,000,000 representing the consumption of articles to which decreases applied, to less than $300,000,000 of articles of necessity to which the increases applied. Now, the promise of the Republican platform was not to revise everything downward, and in the speeches which AND STATE PAPERS 217 have been taken as interpreting that platform, which I made in the campaign, I did not promise that everything should go downward. What I promised was, that there should be many decreases, and that in some few things increases would be found to be necessary; but that on the whole I con- ceived that the change of conditions would make the revision necessarily downward — and that, I contend, under the showing which I have made, has been the result of the Payne bill. I did not agree, nor did the Republican party agree, that we would reduce rates to such a point as to reduce prices by the introduction of foreign competition. That is what the free traders desire. That is what the revenue- tariff reformers desire; but that is not what the Republican platform promised, and it is not what the Republican party wished to bring about. To repeat the statement with which I opened this speech, the proposition of the Republican party was to reduce rates so as to maintain a difference between the cost of production abroad and the cost of production here, insuring a reasonable profit to the manufacturer on all articles produced in this country; and the proposition to reduce rates and prevent their being excessive was to avoid the opportunity for monopoly and the suppression of competition, so that the excessive rates could be taken advantage of to force prices up. Now, it is said that there was not a reduction in a number of the schedules where there should have been. It is said that there was no reduction in the cotton schedule. There was not. The House and the Senate took evidence and found from cotton manufacturers and from other sources that the rates upon the lower class of cottons were such as to enable them to make a decent profit — but only a decent profit —and they were contented with it; but that the rates on the higher grades of cotton cloth, by reason of court decisions, had been reduced so that they were considerably below those of the cheaper grades of cotton cloth, and that by undervaluations and otherwise the whole cotton schedule had been made unjust and the various items were dispro- 218 PRESIDENTIAL ADDRESSES portionate in respect to the varying cloths. Hence, in the Senate a new system was introduced attempting to make the duties more specific rather than ad valorem, in order to prevent by judicial decision or otherwise a disproportionate and unequal operation of the schedule. Under this schedule it was contended that there had been a general rise of all the duties on cotton. This was vigorously denied by the experts of the Treasury Department. At last, the Senate in conference consented to a reduction amounting to about 10 per cent, on all the lower grades of cotton, and this reduced the lower grades of cotton substantially to the same rates as before and increased the higher grades to what they ought to be under the Dingley law and what they were intended to be. Now, I am not going into the question of evidence as to whether the cotton duties were too high and whether the difference between the cost of production abroad and at home, allowing for a reasonable profit to the manufac- turer here, is less than the duties which are imposed under the Payne Bill. It was a question of evidence which Con- gress passed upon, after they heard the statements of cotton manufacturers and such other evidence as they could avail themselves of. I agree that the method of taking evidence and the determination was made in a general way, and that there ought to be other methods of obtaining evidence and reaching a conclusion more satisfactory. Criticism has also been made of the crockery schedule and the failure to reduce that. The question whether it ought to have been reduced or not was a question of evi- dence which both committees of Congress took up, and both concluded that the present rates on crockery were such as were needed to maintain the business in this country. I had been informed that the crockery schedule was not high enough, and mentioned that in one of my campaign speeches as a schedule probably where there ought to be some increases. It turned out that the difficulty was rather in undervaluations than in the character of the schedule itself, and so it was not changed. It is entirely possible AND STATE PAPERS 219 to collect evidence to attack almost any of the schedules, hut one story is good until another is told, and I have heard no reason for sustaining the contention that the crockery schedule is unduly high. So with respect to n merous details — items of no great importance — in which, upon what they regarded as sufficient evidence, the committee advanced rates in order to save a business which was likely to be destroyed. I have never known a subject that will evoke so much contradictory evidence as the question of tariff rates and the question of cost of production at home and abroad. Take the subject of paper. A committee was appointed by Congress a year before the tariff sittings began, to deter- mine what the difference was between the cost of production in Canada of print paper and the cost of production here, and they reported that they thought that a good bill would be one imposing $2 a ton on paper, rather than $6, the Dinglev rate, provided that Canada could be induced to take off the export duties and remove the other obstacles to the importation of spruce wood in this country out of which wood pulp is made. An examination of the evidence satisfied Mr. Payne — I believe it satisfied some of the Republican dissenters — that $2, unless some change was made in the Canadian restrictions upon the exports of wood to this country, was much too low, and that $4 was only a fair measure of the difference between the cost of produc- tion here and in Canada. In other words, the $2 found by the special committee in the House was rather an invitation to Canada and the Canadian print-paper people to use their influence with their government to remove the wood restrictions by reducing the duly on- print paper against Canadian print-paper mills. It was rather a suggestion of a diplomatic nature than a positive statement of the dif- ference in actual cost of production under existing conditions between Canada and the United States. There are other subjects which I might take up. The tariff on hides was taken off because it was thought that it 220 PRESIDENTIAL ADDRESSES was not necessary in view of the high price of cattle thus to protect the man who raised them, and that the duty imposed was likely to throw the control of the sale of hides into the hands of meat packers in Chicago. In order to balance the reduction on hides, however, there was a great reduc- tion in shoes, from 25 to 10 per cent; on sole leather, from 20 to 5 per cent.; on harness, from 45 to 20 per cent. So there was a reduction in the duty on coal of 33^ per cent. All countervailing duties were removed from oil, naphtha, gasoline, and its refined products. Lumber was reduced from $2 to $1.25; and these all on articles of prime necessity. It is said that there might have been more. But there were many business interests in the South, in Maine, along the border, and especially in the far Northwest, which insisted that it would give great advantage to Canadian lumber if the reduction were made more than 75 cents. Mr. Pinchot, the Chief Forester, thought that it would tend to make better lumber in this country if a duty were retained on it. The lumber interests thought that $2 was none too much, but the reduction w r as made and the compromise effected. Person- ally I was in favor of free lumber, because I did not think that if the tariff was taken off there would be much suffer- ing among the lumber interests. But in the controversy the House and the Senate took a middle course, and who can say they were not justified. With respect to the wool schedule, I agree that it is too high and that it ought to have been reduced, and that it probably represents considerably more than the difference between the cost of production abroad and the cost of pro- duction here. The difficulty about the woolen schedule is that there were two contending factions early in the history of Republican tariffs, to wit, woolgrowers and the woolen manufacturers, and that finally, many years ago, they settled on a basis by which wool in the grease should have 11 cents a pound, and by which allowance should be made for the shrinkage of the washed wool in the differential upon woolen manufactures. The percentage of duty was very AND STATE PAPERS 221 heavy — quite beyond the difference in the cost of produc- tion, which was not then regarded as a necessary or proper limitation upon protective duties. When it came to the question of reducing the duty at this hearing in this tariff hill on wool, Mr. Payne, in the House, and Mr. Aldrich, in the Senate, although both favored reduction in the schedule, found that in the Repub- lican party the interests of the wool growers of the Far West and the interests of the woolen manufacturers in the East and in other States, reflected through their representatives in Con- gress, were sufficiently strong to defeat any attempt to change the woolen tariff and that, had it been attempted, it would have beaten the bill reported from either committee. I am sorry this is so, and I could wish that it had been otherwise. It is the one important defect in the present Payne tariff bill and in the performance of the promise of the platform to reduce rates to a difference in the cost of production, with reasonable profit to the manufacturer. That it will increase the price of woolen cloth or clothes, I very much doubt. There have been increases by the natural increase in the price of wool the world over as an agricultural pro- duct, but this was not due to the tariff, because the tariff was not changed. The increase would therefore have taken place whether the tariff would have been changed or not. The cost of woolen cloths behind the tariff wall, through effect of competition, has been greatly less than the duty, if added to the price, would have made it. There is a complaint now by the woolen clothiers and by the carded-woolen people of this woolen schedule. They have honored me by asking in circulars sent out by them that certain questions be put to me in respect to it, and ask- ing why I did not veto the bill in view of the fact that the woolen schedule was not made in accord with the plat- form. I ought to say in respect to this point that all of them in previous tariff bills were strictly in favor of maintaining the woolen schedule as it was. The carded-woolen people are finding that carded wools are losing: their sales because on PRESIDENTIAL ADDRESSES they are going out of style. People prefer worsteds. The clothing people who are doing so much circularizing were contented to let the woolen schedule remain as it was until very late in the tariff discussion, long after the bill had passed the House, and, indeed, they did not grow very urgent until the bill had passed the Senate. This was because they found that the price of woolen cloth was going up, and so they desired to secure reduction in the tariff which would enable them to get cheaper material. They themselves are protected by a large duty, and I can not with deference to them ascribe their intense interest only to a deep sympathy with the ultimate consumers, so called. But, as I have already said, I am quite willing to admit that allowing the woolen schedule to remain where it is, is not a compliance with the terms of the platform as I interpret it and as it is generally understood. On the whole, however, I am bound to say that I think the Payne tariff bill is the best tariff bill that the Republi- can party ever passed; that in it the party has conceded the necessity for following the changed conditions and reducing tariff rates accordingly. This is a substantial achievement in the direction of lower tariffs and downward revision, and it ought to be accepted as such. Critics of the bill utterly ignore the very tremendous cuts that have been made in the iron schedule, which heretofore has been sub- ject to criticism in all tariff bills. From iron ore, which was cut 75 per cent., to all the other items as low as 20 per cent., with an average of something like 40 or 50 per cent., that schedule has been reduced so that the dano-er of increasing; prices through a monopoly of the business is very much lessened, and that was the chief purpose of revising the tariff downward under Republican protective principles. The severe critics of the bill pass this reduction in the metal schedule with a sneer, and say that the cut did not hurt the iron interests of the country. Well, of course it did not hurt them. It was not expected to hurt them. It was expected only to reduce excessive rates, so that business should still AND STATE PAPERS 223 be conducted at a profit, and the very character of the criti- cism is an indication of the general injustice of the attitude of those who make it, in assuming that it was the promise of the Republican party to hurt the industries of the country by the reductions which they were to make in the tariff, whereas it expressly indicated as plainly as possible in the platform that all of the industries were to be protected against injury by foreign competition, and the promise only went to the reduction of excessive rates beyond what was necessary to protect them. The high cost of living, of which 50 per cent, is consumed in food, 25 per cent, in clothing, and 25 per cent, in rent and fuel, has not been produced by the tariff, because the tariff has remained the same while the increases have gone on. It is due to the change of conditions the world over. Living has increased everywhere in cost — in countries where there is free trade and in countries where there is protection — and that increase has been chiefly seen in the cost of food products. In other words we have had to pay more for the products of the farm, for meat, for grain, for everything that enters into food. Now, certainly no one will contend that protection has increased the cost of food in this country, when the fact is that we have been the greatest exporters of food products in the world. It is only that the demand has increased beyond the supply, that farm lands have not been opened as rapidly as the popula- tion and the demand has increased. I am not saying that the tariff does not increase prices in clothing and in build- ing and in other items that enter into the necessities of life, but what I wish to emphasize is that the recent increases in the cost of living in this country have not been due to the tariff. We have a much higher standard of living in this country than they have abroad and this has been made possible by higher income for the workingman, the farmer, and all classes. Higher wages have been made possible by the encouragement of diversified industries, built up and fostered by the tariff. 224 PRESIDENTIAL ADDRESSES Now, the revision downward of the tariff that I have favored will not, I hope, destroy the industries of the country. Certainly it is not intended to. All that it is intended to do, and that is what I wish to repeat, is to put the tariff where it will protect industries here from foreign competition, but will not enable those who will wish to monopolize to raise prices by taking advantage of excessive rates beyond the normal difference in the cost of production. If the country desires free trade, and the country desires a revenue tariff and wishes the manufacturers all over the country to go out of business, and to have cheaper prices at the expense of the sacrifice of many of our manufacturing interests, then it ought to say so and ought to put the Demo- cratic party in power if it thinks that party can be trusted to carry out any affirmative policy in favor of a revenue tariff. Certainly in the discussions in the Senate there was no great manifestation on the part of our Democratic friends in favor of reducing rates on necessities. They voted to maintain the tariff rates on everything that came from their particular sections. If we are to have free trade, certainly it can not be had through the maintenance of Republican majorities in the Senate and House and a Republican administration. And now the question arises, what was the duty of a Mem- ber of Congress who believed in a downward revision greater than that which has been accomplished, who thought that the wool schedules ought to be reduced, and that perhaps there were other respects in which the bill could be improved ? Was it his duty because, in his judgment, it did not fully and completely comply with the promises of the party platform as he interpreted it, and indeed as I had interpreted it, to vote against the bill ? I am here to justify those who answer this question in the negative. Mr. Tawney was a downward revisionist like myself. He is a low-tariff man, and has been known to be such in Congress all the time he has been there. He is a prominent Republican, the head of the Appropriations Committee, and when a man votes AND STATE PAPERS 225 as I think he ought to vote, and an opportunity such as this presents itself, I am glad to speak in behalf of what he did, not in defense of it, but in support of it. This is a government by a majority of the people. It is a representative government. People select some 400 members to constitute the lower House and some 92 members to constitute the upper House through their legislatures, and the varying views of a majority of the voters in eighty or ninety millions of people are reduced to one resultant force to take affirmative steps in carrying on a government by a system of parties. Without parties popular govern- ment would be absolutely impossible. In a party those who join it, if they would make it effective, must surrender their personal predilections on matters comparatively of less importance in order to accomplish the good which united action on the most important principles at issue secures. Now, I am not here to criticize those Republican Mem- bers and Senators whose views on the subject of the tariff were so strong and intense that they believed it their duty to vote against their party on the tariff bill. It is a question for each man to settle for himself. The question is whether he shall help maintain the party solidarity for accomplish- ing its chief purposes, or whether the departure from prin- ciple in the bill as he regards it is so extreme that he must in conscience abandon the party. All I have to say is, in respect to Mr. Tawney's action, and in respect to my own in signing the bill, that I believed that the interests of the country, the interests of the party, required me to sacrifice the accomplishment of certain things in the revision of the tariff which I had hoped for, in order to maintain party solidarity, which I believe to be much more important than the reduction of rates in one or two schedules of the tariff. Had Mr. Tawnev voted against the bill, and had there been others of the House sufficient in number to have defeated the bill, or if I had vetoed the bill because of the absence of a reduction of rates in the wool schedule, when there was 226 PRESIDENTIAL ADDRESSES a general downward revision, and a substantial one though not a complete one, we should have left the party in a con- dition of demoralization that would have prevented the accomplishment of purposes and a fulfilment of other prom- ises which we had made just as solemnly as we had entered into that with respect to the tariff. When I could say without hesitation that this is the best tariff bill that the Republican party has ever passed, and therefore the best tariff bill that has been passed at all, I do not feel that I could have recon- ciled any other course to my conscience than that of signing the bill, and I think Mr. Tawney feels the same way. Of course if I had vetoed the bill I would have received the applause of many Republicans who may be called low- tariff Republicans, and who think deeply on that subject, and of all the Democracy. Our friends the Democrats would have applauded, and then laughed in their sleeve at the condition in which the party would have been left; but, more than this, and waiving considerations of party, where would the country have been had the bill been vetoed, or been lost by a vote? It would have left the question of the revision of the tariff open for further discussion during the next session. It would have suspended the settlement of all our business down to a known basis upon which prosperity could proceed and investments be made, and it would have held up the coming of prosperity to this country certainly for a year and probably longer. These are the reasons why Mr. Tawney voted for the bill. These are the reasons why I signed it. But there are additional reasons why the bill ought Hot to have been beaten. It contained provisions of the utmost importance in the interest of this country in dealing with foreign countries and in the supplying of a deficit which under the Dingley bill seemed inevitable. There has been a disposition in some foreign countries to take advantage of greater elasticity in their systems of imposing tariffs and to make regulations to exclude our products and exercise against us undue discrimination. Against these things we AND STATE PAPERS 227 have been helpless, because it required an act of Congress to meet the difficulties. It is now proposed, by what is called the maximum and minimum clause, to enable the President to allow to come into operation a maximum or penalizing increase of duties over the normal or minimum duties when- ever in his opinion the conduct of the foreign countries has been unduly discriminatory against the United States. It is hoped that very little use may be required of this clause, but its presence in the law and the power conferred upon the Executive, it is thought, will prevent in the future such undue discriminations. Certainly this is most important to our exporters of agricultural products and manufactures. We have imposed an excise tax upon corporations meas- ured by 1 per cent, upon the net income of all corporations except fraternal and charitable corporations after exempt- ing $5,000. This, it is thought, will raise an income of 26 to .'50 millions of dollars, will supply the deficit which otherwise might arise without it, and will bring under Federal supervision more or less all the corporations of the country. The inquisitorial provisions of the act are mild but effective, and certainly we may look not only for a revenue, but for some most interesting statistics and the means of obtaining supervision over corporate methods that has here- tofore not obtained. Then, we have finally done justice to the Philippines. We have introduced free trade between the Philippines and the United States, and we have limited the amount of sugar and the amount of tobacco and cigars that can be introduced from the Philippines to such a figure as shall greatly profit the Philippines and yet in no way disturb the products of the United States or interfere with those engaged in the tobacco or sugar interests here. These features of the bill were most important, and the question was whether they were to be sacrificed because the bill did not in respect to woo! and woolens and in some few other matters meet our expectations. I do not hesitate to repeat that I think it would have been an unwise sacrifice of the business interests 228 PRESIDENTIAL ADDRESSES of the country, it would have been an unwise sacrifice of the solidarity, efficiency, and promise-performing power of the party, to have projected into the next session another long discussion of the tariff, and to have delayed or probably defeated the legislation needed in the improvement of our interstate commerce regulations, and in making more effi- cient our anti-trust law and the prosecutions under it. Such legislation is needed to clinch the Roosevelt policies, by which corporations and those in control of them shall be limited to a lawful path and shall be prevented from returning to those abuses which a recurrence of prosperity is too apt to bring about unless definite, positive steps of a legisla- tive character are taken to mark the lines of honest and lawful corporate management. Now, there is another provision in the new tariff bill that I regard as of the utmost importance. It is a provision which appropriates $75,000 for the President to employ persons to assist him in the execution of the maximum and minimum tariff clause and in the administration of the tariff law. Under that authority I conceive that the President has the right to appoint a board, as I have appointed it, who shall associate with themselves, and have under their control, a number of experts who shall address themselves, first, to the operation of foreign tariffs upon the exports of the United States, and then to the operation of the United States tariff upon imports and exports. There are provisions in the general tariff procedure for the ascertainment of the cost of produc- tion of articles abroad and the cost of production of articles here. I intend to direct the board, in the course of these duties and in carrying them out, in order to assist me in the administration of the law, to make what might be called a glossary of the tariff, or a small encyclopedia of the tariff, or something to be compared to the United States Pharma- copoeia with reference to information as to drugs and medi- cines. I conceive that such a board may very properly, in the course of their duties, take up separately all the items of the tariff, both those on the free list and those which are AND STATE PAPERS 229 dutiable, describe what they are, where they are manu- factured, what their uses are, the methods of manufacture, the quality of the manufacture, the cost of production abroad and here, and every other fact with respect to each item which would enable the Executive to understand the operation of the tariff, the value of the article, and the amount of duty imposed, and all those details which the student of every tariff law finds it so difficult to discover. I do not intend, unless compelled or directed by Congress, to publish the result of these investigations, but to treat them merely as incidental facts brought out officially from time to time, and as they may be ascertained and put on record in the Department, there to be used when they have all been accumulated and are sufficiently complete to justify executive recommendation based on them. Now I think it is utterly useless, as I think it would be greatly distressing to business, to talk of another revision of the tariff during the present Congress. I should think that it would cer- tainly take the rest of this administration to accumulate the data upon which a new and proper revision of the tariff might be had. By that time the whole Republican party can express itself again in respect to the matter and bring to bear upon its Representatives in Congress that sort of public opinion which shall result in solid party action. I am glad to see that a number of those who thought it their duty to vote against the bill insist that they are still Repub- licans and intend to carry on their battle in favor of lower duties and a lower revision within the lines of the party. That is their right and, in their view of things, is their duty. It is vastly better that they should seek action of the party than that they should break off from it and seek to organize another party, which would probably not result in accom- plishing anything more than merely defeating our party and inviting in the opposing party, which does not believe, or says that it does not believe, in protection. I think that we ought to give the present bill a chance. After it has been operating for two or three years, we can tell much more 230 PRESIDENTIAL ADDRESSES accurately than we can to-day its effect upon the industries of the country and the necessity for any amendment in its provisions. I have tried to state as strongly as I can, but not more strongly than I think the facts justify, the importance of not disturbing the business interests of this country by an attempt in this Congress or the next to make a new revision; but in the meantime I intend, so far as in me lies, to secure official data upon the operation of the tariff, from which, when a new revision is attempted, exact facts can be secured. I have appointed a tariff board that has no brief for either side in respect to what the rates shall be. I hope they will make their observations and note their data in their record with exactly the same impartiality and freedom from anxiety as to result with which the Weather Bureau records the action of the elements or any scientific bureau of the Gov- ernment records the results of its impartial investigations. Certainly the experience in this tariff justifies the statement that no revision should hereafter be attempted in which more satisfactory evidence of an impartial character is not secured. I am sorry that I am not able to go further into detail with respect to the tariff bill, but I have neither the informa- tion nor the time in which to do it. I have simply stated the case as it seemed to Mr. Tawney in his vote and as it seemed to me in my signing the bill. XXV ADDRESS AT DES MOINES, IOWA (SEPTEMBER 20, 1909) Fellow Citizens of Iowa: I HAVE great pleasure in meeting such a concourse of citizens of one of the most purely agricultural States in the union — one which has enjoyed to the full the prosper- ity which has come to the man who has invested his money and his labor in the farm for the last decade. Iowa has come to be a State in which there is great independence of view, and in which the voters exercise intelligent discrimination with reference to candidates and policies that keeps those who are looking for political vic- tories in a constant state of doubt and anxiety. The last general election was held in November of 1908, and resulted in the success of the Republican party in the national contest. In both chambers of Congress the Repub- licans have a majority and they have the President. Looking forward to the legislation that ought to be expected from that party, we must refer back to the platform upon which the party was elected. In the extra session recently closed a tariff bill was passed as was promised in the platform. I do not intend to dwell upon the much-disputed question whether that bill complied with the bill promised, for I have considered that at another time and at another place. What I wish to invite your attention to this morning is, with the tariff bill out of the way for the time at least, what there is for the Republican party in Congress under the promises of its platform to do in the coming regular session. Now, in the first place one of the great issues in the last campaign — one in which I took a deep personal interest 231 232 PRESIDENTIAL ADDRESSES because the issue concerned nie personally — was the claim that the Republican party was opposed to labor organiza- tions, and had favored the use of the injunction in labor disputes in behalf of the employer, and, therefore, that its candidate should be opposed by all of organized labor and of all other kinds of labor on this account. As you perhaps remember, I had decided a number of the important labor cases in which permanent injunctions were issued, and I was characterized as the "father of labor injunc- tions." It became necessary for me to go about the country explaining and defending my labor decisions and showing, as I was able to show, that my attitude, while it was in favor of certain punishment of disturbance of the peace and other violations of the law in connection with labor disputes, was that of one favorable to the organ- ization of labor as necessary to enable it to stand upon an equality of resources with capital in the necessary contro- versies that arise between labor and capital with respect to the fixing of their compensation and arranging the other terms of employment. I discussed this subject at Chicago the other night at length. I do not intend to discuss it here other than to say that I have not forgotten the promise of the platform, and Congress should take up the question of injunctions and labor disputes and should adopt a law embodying the procedure as to issuing of injunctions without notice and framing it in such a way as to prevent such injunc- tions save in rare and meritorious cases. More than this, I am prepared to recommend that Con- gress require the interstate railroads to adopt any other safety device that can be proved as valuable in order to protect the lives and limbs of men engaged in that dangerous employment. While I believe that every man ought to be permitted to work for whom and at what wage he pleases — and I am prepared to go to the extreme limit in defending this right — I am nevertheless one of those who approve the organization of labor and, if I were [a workingman, would probably become a member of a trades union if I AND STATE PAPERS 233 could gain admission. My attitude on this point is based upon the belief that the organization of labor has secured better terms of employment, higher wages, a safer place to work in, and other advantages which but for the organi- zation and its demands in a form that could not be denied might have been long delayed in coming. The leading men of the labor organizations of this country, many of whom opposed my last election, are greatly to be commended because of the stand that they have taken against the prevalence of socialism in labor unions. They favor the preservation and maintenance of our institutions under the Constitution, which recognizes the right of property as well as the liberty of the individual; and they are entitled to our sympathy in this struggle, which by reason of the socialistic and anarchistic tendencies of European labor organizations, they have much difficulty in maintaining. But legislation with respect to the laborer is not all the legislation that the Republican party is pledged to. Indeed, when I look forward to the next session and realize how much there is to be considered, I tremble lest the session will not be long enough, and lest it will not be possible to do all that has been promised. Immediately after Mr. Roosevelt's election in 1904, he wrote a message to Congress in which he recommended to Congress that the interstate commerce law be amended so that the Interstate Commerce Commission, finding a rate to be unreasonable and unduly discriminatory, might change the rate and fix one which should be fair. In other words, his recommendation embodied the fixing of the rates by the Interstate Commerce Commission The suggestion of the message was followed by the introduction of a bill in the House which in the first regular session of the newly elected Congress was passed by the House as the Hepburn Rate Bill. It went to the Senate and received a good many amend- ments, and then after a long and acrimonious fight it was passed almost unanimously. The chief feature of the bill was the new authoritv of the Commission after determining 234 PRESIDENTIAL ADDRESSES that an existing rate complained of was unreasonable, to say what would be a reasonable rate; in other words, to fix the rate if the rate complained of was unjust. There were many other features to the rate bill, but the one I have given is perhaps the most important. A provision was made for appeal from the action of the Commission to the court, and this was wisely done for, even if no provision was made, the court would still have jurisdiction to consider whether the rate fixed was confiscatory or not. If the act had attempted to prevent such an appeal to the court, it probably would have rendered it invalid under the Constitution. The rate bill has now been in operation some three years and it must be admitted that it has not furnished the relief against unduly discriminatory rates with the expedition and effectiveness which were expected. The Republican platform promised additional legislation in aid of enforcing the interstate commerce law, and I have been engaged in the consideration of what I ought to recommend to Congress in order to comply with that promise. Those who opposed the provision by which appeal from the order of the Com- mission might be taken to the court did so because they thought such a right to appeal would offer much opportunity to delay the proceedings. An examination of the decisions of the Commission and the resort to the courts by the way of temporary injunctions, fully justifies the conclusion that one of the defects of the present interstate commerce law is the delay entailed by litigation in the court over the correctness of the order of the Commission. The court appeal can not be abolished because it is a constitutional right. Something must be done to reduce its effect by way of delay, so that the decision of the court shall be prompt, final and effective. It is proposed now by a number of gentlemen of my Cabinet, who have conferred with some members of the Interstate Commerce Commission, to facilitate these appeals from the Commission by the creation of a separate interstate commerce court of five members which shall sit in Washing- ton and which shall be the only court to which petitions AND STATE PAPERS 235 to set aside or nullify the orders of the Interstate Commerce Commission can be made; and it is proposed to allow a single judge to make an order staying the proceedings of the Interstate Commerce Commission but sixty days, and thereafter that no injunction shall be allowed against the order of the Commission unless granted by the whole court of five members. I know that objection will be made to the creation of this court. In one of the bills originally introduced such a separate court was provided for, but the provision was defeated. A tariff court has been provided in the new tariff bill to consist of five members whose judg- ment shall be final on all questions arising under the admin- istration of the tariff. I am strongly inclined to think that a similar court, except that an appeal ought to lie from it to the Supreme Court, will serve the purpose of expedition and the dispatch of business in respect to the orders of the Commission. I know that there is a well-grounded objec- tion to increasing Federal courts and to the provision for the appointment of Federal judges, whose terms and salaries last for life and who become a permanent expenditure of the Government. But there is this to be said, that if the establishment of such a court proves to be a mistake, the demand for judges throughout the country and their increase will furnish an opportunity to use the judges thus appointed for other and general judicial work. The uniformity of decisions, and the promptness of decision, which may be expected from a court whose experience will soon make them experts in the disposition of such cases, would promise to the shipper and railroad litigants quick decision as to their rights. A second change in the interstate commerce law ought to give to the Commission the power to hear and entertain complaints against unjust classification of merchandise for transportation. The classification of merchandise is just as important in determining the expense of transportation as the fixing of the rates, because rates are fixed according to classes, and if an article is classed in one class this deter- 23G PRESIDENTIAL ADDRESSES mines the rate at which that article is to be carried. The classification should be as near as possible so that each class includes within it all the various merchandise that can reasonably be carried by the railroad at the same cost and rate. It is perfectly clear that by including articles in the same class which ought to pay different rates, a railroad can commit exactly the same kind of injustice as it would by imposing an exorbitant rate as to any class. Hence, I haven't the slightest hesitation in recommending to Con- gress that the power of the Commission should be extended to include not only the fixing of rates after complaint, but also the readjustment of classification if it proves on investigating to be unjust. The Interstate Commerce Commission has found great embarrassment in the proper administration of the law in the fact that it is limited in its action to investigating only those rates which are specifically complained of by a shipper or some other interested person. It has frequently found that in the examination of one rate complained of and the dis- covery that it is unjust, there are many other rates connected with this rate equally unjust that if it had the power of initiating complaints of itself it could promptly reach and readjust and fix to the benefit of persons who have not seen fit or have not had the courage or money to contest the fair- ness and correctness of the rates. I am aware that the ques- tion was hotly discussed in Congress at the time of the passage of the rate bill, and it was thought wise to limit the power of the Commission to the consideration of rates actually complained of by persons interested. It would now seem from the experience of the Commission that it is the extension of its power so as to institute complaints of its own that is necessary to make its work truly effective. This is the proper method of legislation — to pass the bill and if it does not operate as fully in the direction intended as we had hoped, then amend the bill so as to improve it in that direction. I do not think that until we try this new amendment and see how it works, we ought to put down AND STATE PAPERS 237 the bars entirely and give to the Interstate Commerce Commission the absolute power to fix rates in advance and on their own initiative, and without complaint filed and investigation made as is done in some of the States. I think it a great deal better to proceed cautiously in this matter and feel our way to a satisfactory act which shall accom- plish the purpose without too drastic or radical action. Under the interstate commerce law, a new rate or classi- fication is to be filed with the Commission. It is proposed now to authorize the Commission to postpone the date that such new rate or classification is to take effect, provided that within thirty days of the date of the order a complaint be filed that such rate or classification is unreasonable or unjust, or, provided, second, that the commission itself shall institute an inquiry into the reasonableness or justice of such rate or classification. This introduces a somewhat new element into the act by placing the railroad company in the situation when it proposes to make a change in the rate, that it should be prepared to show to the Commission affirmatively that the change to the new rate is justified. I am inclined to think that this is a fair change in the pro- visions of the law. It gives to the public the same right to have changes which affect them injuriously, investigated before they go into effect as it does changes of rates by the railroad, by appeal to the courts to have the order of the Commission subjected to investigation and hearing. Rail- roads ought not to be permitted to change rates unless they can give reason for it. A third amendment to the act should provide that the Commission may by order suspend, modify or annul any changes in the rules or regulations which impose undue burdens on shippers. No doubt ought to be left with respect to the power of the Commission on such a subject, because the rules and regulations of a railway are the means by which injustice may be done to the shipper. There has been a good deal of difficulty encountered by shippers over connecting lines, and the power of the Commission in respect 238 PRESIDENTIAL ADDRESSES to this lias been quite limited. It would seem well to empower the Commission on the application of one carrier, or an individual, or at the instance of the Commission itself, to compel connecting carriers to unite in forming a through route and fix the rate and the apportionment thereof among the carriers. The Commission should also be empowered to prescribe the rules and regulations under which the ship- pers shall have the privilege to designate the route over which their shipments shall be carried to the destination beyond that of the first carrier. Another most important amendment of the interstate commerce law — part of which was specifically promised in the platform — is a prohibition against any interstate railroad company acquiring stock in any competing rail- road in the future, and a further provision that no railroad engaged in interstate commerce shall after a certain date hold stock in a competing railroad; and the further amend- ment that after the passage of the amending act, no rail- road company engaged in interstate commerce shall issue any additional stock or bonds or other obligations except with the approval of the Commission, based upon a finding by the Commission that the same are issued, first, for pur- poses authorized by law, and, second, for a price not less than par for stock, and not less than the reasonable mar- ket value for bonds, such price being paid either in cash or in property or services, and if in property or services, then at the fair value thereof as determined by the Commis- sion. By these provisions enforced with reason, and drawn with a view not to be too drastic with railroads in the beginning, we shall gradually abolish that evil which is involved in the union of competing roads by one road's owning the stock of another; and we shall prevent the over-issue of stock and bonds so as to prevent watering, and to keep the rail- road efficient for the service for which it was intended. It greatly interferes after a time with the power of the owners to improve a railroad if it is loaded down with securities, AND STATE PAPERS 239 the interest upon which it cannot pay because those secur- ities were not represented by actual value put into the railroad; and I think it, therefore, plainly within the power of Congress in dealing with interstate railroad companies that are organized under state corporations to insist that in order to maintain efficient instruments of transportation the watering of stock and bonds on them shall cease. These suo-o-ested amendments to the interstate commerce law will entrust to the Interstate Commerce Commission considerably more power than that tribunal has at present. But we have entered upon a course of regulating railroads, and as the laws which we passed have not been as effective for the purposes as it was hoped, we must continue to introduce amendments to bring about a law which wall serve the purpose which we have. You in Iowa have been perhaps more successful than elsewhere in the country in regulating your railroads. The difficulties of the interstate commerce regulation are, however, very much greater than those in a State, and present much more difficult questions; but as we are now entering upon a period of the greatest prosperity, in which the railroads are sure to share, it seems wise to remedy as promptly as we can the defects in the present regulation in order that we shall not under the influence of prosperity forget to insist that we are not to return to former abuses. One great trouble with railroad management was the allowance by railroads of illegal and discriminatory rebates. Those have now largely ceased, and that was one of the great accomplishments of Mr. Roosevelt's administration. But the question of rates and their justice still remains. The scope of the authority of the Interstate Commerce Commission has not been wide enough to make the regu- lation as effective as it ought to be, and to bring under con- sideration as many of the rates as it should within a reason- able time. In addition to these amendments to the law which are looking to a rather more drastic regulation of railroad rates 240 PRESIDENTIAL ADDRESSES than heretofore, another provision should be added by which railroads may be permitted to agree upon traffic rates, and make contracts with respect to rates that shall not be pooling contracts, but shall constitute agreements as to rates — pro- vided always that such agreements shall receive the approval of the Interstate Commerce Commission. In this wise the operation of the anti-trust law against traffic agree- ments between railroads will be abolished; and against their absolute prohibition would be substituted a require- ment that such agreements shall meet the approval of a properly constituted tribunal. This last section brings me to the question of the anti- trust law. While we have not threshed the whole matter out so as to reach a definite conclusion, I am strongly inclined to the view that the way to make the anti-trust law more effective is to narrow its scope somewhat, so that it shall not include in its prohibition and denunciation as a crime anything but a conspiracy or combination or contract entered into with actual intent to monopolize or suppress competition in interstate trade. At the common law all contracts in restraint of trade, except those which were called reasonable, the courts would decline to enforce and leave the parties in the condition in which they were found. The anti-trust law denounces such contracts when in restraint of interstate trade as criminal — and that whether made with intent to monopolize or to suppress competition or with- out intent to do either. The theory seemed to be that a contract in restraint of interstate trade tended to a monop- oly, and therefore should be denounced because of its tendency, whether there was any actual purpose on the pari of the person making it to monopolize or suppress com- petition or not. This feature of the present anti-trust law has, it seems to me, weakened its force because it has seemed to bring within the condemnation of the law contracts and other arrangements which were actually innocent in their character, and which were not included in those vicious combinations which it was the real intent of the law to sup- AND STATE PAPERS 241 press. This wider scope of the law, which I would narrow, has been seized upon by those who do not favor the law at all as a ground for ridiculing its provisions and as a means of demonstrating its absurdity. If the crimes denounced in the law were confined to combinations, con- spiracies and contracts made with intent to monopolize or partially monopolize interstate trade, or to suppress com- petition in interstate trade, then the real object of the law would come within its denunciation, and no one could declare its operation to be unreasonable in that it included a lot of innocent contracts or arrangements. It has been suggested that the law ought to limit its \ denunciation to those contracts in restraint of trade that are unreasonable. I do not favor any such limitation/ for the reason that in the common law the reasonable restraint of trade came to have a very different meaning. It was a narrow one, and one which would have but excep- tional application. A reasonable restraint of trade was one made ordinarily in the sale of the good will of a business in which the vendor agreed not to go into business within the territory covered by the business, the good will of which he was selling, and this was to enable him to sell what he had acquired and to enable the buyer to maintain in its integrity the good will which he had bought; but if the restraint went beyond the territory covered by the business, it was regarded as an unreasonable restraint of trade and was unenforcible. But the proposal of introducing the word "reasonable" into the act goes much farther than this excep- tional case in the common law. It seems to be proposed to leave to the judges to decide what combinations and contracts in restraint of trade ought to be permitted to exist and to be enforced on general grounds of public policy — in other words, to have the court attempt to establish some line between what are called good and bad trusts, as if the suppression of competition in some cases was a good thing and in other cases was bad. I can not agree that any such distinction can properly be made. All combinations to 242 PRESIDENTIAL ADDRESSES suppress competition, or to maintain a monopoly in whole or in part, of interstate trade, is and should be in violation of the anti-trust law and should be punished as such; and there is no room for the expression "reasonable" or "unrea- sonable" in this general view of the statute. If the statute were limited to combinations, conspiracies and contracts to restrain trade with the intent to monopolize interstate trade, or with intent to suppress competition therein, it would probably not include within its denunciation a boy- cott against goods going into interstate trade, because such a boycott is a restraint against interstate trade with the intention to restrain it, but it is not a restraint of interstate trade with intent either to suppress competition or to main- tain a monopoly of the goods with respect to which the con- tract is made. I am entirely opposed to excepting from the operation of any law of general application a class of persons like laborers or workingmen or farmers or ministers or teachers or lawyers. Take the present anti-trust law, there- fore, and insert a special exception to the application of that law by providing that it should not apply to the trades unions class and it would be legislation of the most vicious character; but when you make the law apply only to conspiracies seek- ing to suppress competition or to monopolize the trade, then the labor boycott is probably not included, simply because the statute would not seem wide enough to include it in its scope, and this result is obtained without class legislation at all. I am in favor of this change because I believe that the ordinary action in equity by injunction in any place where the boycott is operative can accomplish effectively all the purposes that ought to be accomplished in the suppression of such an evil. On the other hand, to employ the anti- trust law for the purpose of suppressing evils growing out of the labor organizations is to take advantage against such unlawful labor organizations of the literal terms of statute which were probably not intended to include that which judi- cial construction could not avoid including within its words. AND STATE PAPERS 243 It would probably seem wise to establish an accusatory bureau in the Department of Justice to institute prosecutions for violations of the interstate commerce law and of the anti-trust law, while it will be wise to continue the Bureau of Corporations, enlarging its scope somewhat perhaps to maintain the registration of corporations and the investi- gation into their operation so far as interstate trade is con- cerned. It has been found most difficult to separate the admin- istrative from the quasi-judicial functions of the Interstate Commerce Commission, but it is thought that it would be wise to take away from them any responsibility in regard to the investigation of the validity of their orders before the Interstate Commerce Commission court and to leave the maintenance of those orders to the Department of Justice when the appeal comes on to be heard in the court. The two statutes which must claim the attention of our Congress in its next session are the interstate commerce law and the anti-trust law, and I have outlined in a tenta- tive way what I am inclined to recommend to Congress as proper amendments. I do so for the purpose of promoting public discussion of them in order that when Congress shall meet the subjects shall not be entirely new and arguments fro and con shall not be lacking. I believe it will facili- tate consideration of matters in Congress itself. Another series of questions for Congress is with refer- ence to the conservation of resources. These I shall not dis- cuss now, but shall do so later in my journey. As I look forward to the coming session of Congress, it seems to me that the work to be done will involve close attention and much discussion, which I hope will be temperate, entered into with a view of reaching a clear and satisfactory conclu- sion. The monetary commission will probably report so that its final conclusion may be considered at the end of the coming session or at the beginning of the next. In any event, as we look forward to the work which this Congress 2U PRESIDENTIAL ADDRESSES has to do. we must be conscious that the measures I have proposed will consume all the time there is. All this is in the line of performing the promises of the Republican platform, and we can certainly be discharging no higher or more sacred duty- If by the legislation we shall have defined with exactness the proper course for railroads to pursue and also the proper course for great industrial corporations to pursue and make clear the path of law- fulness, we shall have vindicated the good sense of the people in placing the Republican party in power. XXVI ADDRESS AT AUDITORIUM, DENVER, COLORADO (SEPTEMBER 21, 1909) Fellow Citizens of Colorado: IT GIVES me great pleasure again to visit the Cen- tennial State, and to find here, as elsewhere, the signs of a coming period of prosperity which promises to be exceptional in the history of the country. I have undertaken a trip of 13,000 miles, with a view to getting a somewhat more accurate and reliable impres- sion of the needs of the country, and with the view to coming into personal touch with the people of the country, and especially in those States so far distant from the seat of government that their people are apt to suppose that their interests are forgotten in the conduct of the Government. It certainly serves to bring the Chief Magistrate into closer union with the eighty millions of people of this country, for he can at reasonably short intervals come into contact with those to whom he is responsible for the proper discharge of his duties during the temporary delegation of power with which they have honored him. The great difficulty and burden of such a trip upon the one making it is the indispensable accompaniment of speeches along the way. It may also be hard on the people to have to hear the speeches, but in a country where the people rule, discussion is necessary, and if the Chief Executive in going about among the people does not discuss something, he will seem to be in the position of wishing to avoid consideration of the interests of the public, or to be afraid of bringing to their attention and rendering account to them of what the Gov- ernment has done or intends to do. For that reason I have 245 240 PRESIDENTIAL ADDRESSES attempted on this trip, at various centers of population of importance, to take up some topic of immediate interest, and explain my views upon it, and if it is a matter already acted upon, to show the wisdom of the action if I can, or if it is to be acted upon, outline what I deem to be the proper course to be taken. In the pursuit of this plan I have selected to-night for consideration and discussion the cor- poration, tax which was embodied in the tariff bill recently passed, and the income tax proposition which at the same session of Congress, and really as a part of the tariff bill, though formally included in a joint resolution, was submitted to the States to amend the Constitution of the United States by giving to the Congress power to levy an income tax generally, without regard to the apportionment of the tax among the States according to population. The necessity for the revision of the tariff arose not only because the rates in a number of the schedules had become excessive and were quite beyond the measure of the tariff set by the Republican platform, to wit, the difference between the cost of production of the article at home and that abroad, together with a reasonable allowance for profit to the Ameri- (.111 manufacturer, but also because within the last year or two the tariff had ceased to produce enough revenue in connection with the internal revenue law, to pay the expenses of the government. There are two ways of meeting the difficulty which arises when your expenditures exceed your receipts; one is to reduce your expenditures, and the other is to increase your receipts. It is the proposal of the Administration and the Government to take both courses in this regard, and I have no doubt that the appropriations for that coming year will show a very considerable reduction in expenditures, per- haps reaching $40,000,000 or $50,000,000. But even this is not enough to make up for the probable deficit under the old tariff law, or under the tariff law as it has passed, unless accompanied by some additional method of taxation. It was first proposed, and I recommended it in my Inaugu- AND STATE PAPERS 247 ral Address, that the central government impose a tax upon inheritances — a graduated inheritance tax; that is, a tax, the percentage of which increased as the inheritance was greater, in a certain proportion; but this was seriously objected to by many of the States, some of whose legisla- tures passed protests against it, on the ground that that was a field of taxation which the States had preempted, and in respect to which it would be rather unfair to impose a double burden. I have no disposition to quarrel with that conclu- sion, although I think a good deal might have been said in favor of the Federal inheritance tax because the truth is that even although the State and Federal Governments imposed the inheritance tax at the rate proposed, it would not have been particularly heavy. Still with the inheri- tance tax foreclosed, the question then arose as to what tax should be imposed in order to make up the deficit. This question arose in the Senate, for the inheritance tax had passed the House, and had been stricken out by the Finance Committee of the Senate. A part of the Republicans and all of the Democrats of the Senate united in pressing for consideration a general income tax on individuals throughout the United States. It left an exemption of those whose income did not exceed $5,000, but upon the rest it imposed a general income tax of 2 per cent. It also imposed a tax under the former income tax upon inheritances, and it was as inquisitorial as possible in subjecting the business of every individual in the community to investigation, and permitted the examination of his books and all private evidences of what his business consisted of, and what his income was; this investigation to be carried on by the collectors and deputy collectors of internal revenue. The law was as near as it could be made that income tax law which had once been considered by the Supreme Court some ten years ago, and which was held to be unconsti- tutional by a vote of five to four. It was conceded that the tax would probably raise $150,000,000 to $200,000,000, which was far in excess of the needs of the Government 248 PRESIDENTIAL ADDRESSES if the tariff bill was to retain its general form, as proposed, and so to produce revenues which should be reasonably expected from it. Our friends the Democrats favored the income tax with a view to substituting it for the tariff as an income-producing measure, thus minimizing the office of the tariff in protecting the industries of this country. In other words, the passage of the income tax bill would have lent support probably to the proposition to have a tariff for revenue only, and would have interfered with the protective policy to which the Republican party is pledged. One further objection to the income tax amendment was that it had been declared to be unconstitutional by the Supreme Court, and to invoke a second decision upon that issue was to question the uniformity of the decisions of the Supreme Court and to drag the Court into a politi- cal discussion which, whatever its decision, could not make for its standing as an impartial tribunal before the people. It indicated a diversity of view between the Congress and the Court — two coordinate branches — with reference to the constitutionality of the law which it seemed unwise to perpetuate in a formal statute. But the income tax amend- ment seemed quite likely to pass by the vote of all the Democrats and a sufficient number of Republicans. There- fore those who were opposed to the income tax amendment looked about to see if a compromise could not be proposed less objectionable than the income tax amendment, which would satisfy enough Republicans who were advised to favor the income tax amendment to prevent the passage of that amendment, and such a compromise was found in a proposal to pass the present corporation tax, and also the joint resolution already referred to, proposing to. the States an amendment authorizing the General Government to impose an income tax without apportioning it as a direct tax according to the population of the States. When Con- gress assembled, the Ways and Means Committee of the House had adopted a bill in which they made up the proper deficit by an inheritance tax and also by a tax upon tea and AND STATE PAPERS 049 coffee. There were serious objections to the tax on tea and coffee on the ground that it increased the expenses of living, especially among those least able to bear such expense, and therefore the Ways and Means Committee was induced to omit the coffee and tea tax. And then the question arose, what should be substituted for that tax in the bill ? In my Letter of Acceptance of the Republican nomina- tion for the Presidency, I said I thought that an income tax could be devised which could conform to the Constitution of the United States, and therefore that the income tax amendment was not necessary, and when this situation arose which I have described, I directed the Attorney- General to prepare a law which should impose what in effect would be an income tax and still conform to the Constitution. The Attorney-General did so, and I recom- mended the imposition of that tax to the Committee on Ways and Means. After some deliberation, the committee concluded that even without the coffee and tea tax the income produced would be sufficient, by means of the inheritance tax, to make an additional form of taxation unnecessary. So the matter went to the Senate, where the situation became changed, as I have described it, and the question arose whether we could find some substitute for a general income tax that would satisfy the majority of that body and prevent the passage of a general income tax held by the Supreme Court to be unconstitutional. Accordingly a compromise was reached by -which the present corporation tax was passed, and the amendment to the Constitution proposed. For the sake of clearness, I may say that the Constitution does not forbid the levying of an income tax by the Central Government. The section of the Constitution involved in general terms forbids the levy of a direct tax by the Cen- tral Government unless such direct tax is apportioned among (Hie States according to their population. The Supreme ^Court, in the last decision referred to, held that the income tax was a direct tax, and if levied at all by the Central Gov- ernment must be apportioned according to the population 250 PRESIDENTIAL ADDRESSES of the States. This made the imposition of such a tax utterly impracticable, and so construed in effect forbade a general income tax at all. But there are decisions of the Supreme Court authorizing an excise tax to be levied on business corporations and to be measured by the gross income or the net income of the business; and therefore it seemed to the Attorney-General, as it has to a great many excellent lawyers, entirely within the decision of the Supreme Court as constitutional to provide that all corporations engaged in a business for profit should pay to the Central Government an excise tax equal to one per cent, of their net earnings. At first it w T as thought that two per cent, would produce about $25,000,000. Subsequent investigation seemed to show that this was a very decided underestimate, and that one per cent, would produce that amount, and that that amount would be sufficient to meet the probable difference between the net receipts from the internal revenue and tariff bill and the expenditures of the Government. The provisions for the corporation tax in the bill exempt all corporations w T hose net income does not exceed $5,000. It is, therefore, in effect an income tax; that is it taxes earnings actually made. It is a tax upon success and not failure. Complaint is made that it is a discriminating tax in that it taxes business conducted under a corporate form, whereas when the business is conducted by a partnership the busi- ness escapes taxation altogether. The justification for the distinction arises from the advantages which the business enjoys under a corporate form, first in that the individuals who really own the business by being the share owners of the corporation have only a limited liability and are not bound to meet the debts of the corporation beyond their slock investment, or in some States more than 100 per cent, beyond their stock investment; and, on the other hand, the advantage of a permanent establishment in the busi- ness, because no matter whether the present owners and managers die or not, the business continues in its corporate AND STATE PAPERS 251 form without a settlement thereof in the administration of the estate of the deceased owners. Again, objection is made that the tax is really a tax upon the dividends of the corporation, and that in the stock of the corporation may be interested a great many people having but little property — widows, orphans and others. I am not disposed to deny that theoretically it would be better to impose a higher rate of taxation upon those having large fortunes than upon those having only a competence. As I shall elaborate farther on, I am very much opposed to exempting incomes above the actual living wage, because I think every one in the Government ought to pay something toward its sustenance, because every one derives benefit from it, and while an increase in the percentage of the tax, as the fortune of the individual taxed increases, is fair, it is fair because the burden of the taxation at the same rate is heavier upon a man with a small income than upon a man with a large income or fortune. Still it is not practi- cal with such a tax as the corporation tax, where you tax the sources of the income before it reaches the individual who is to pay the tax, to impose a graduated tax, and the tax upon the net earnings of the corporation of one per cent. or two per cent, is so small that small holders of the shares will feel the burden lo be very light. In all probability it will hardly affect their dividends at all, because most corporations do not declare all their earnings in dividends, and will simply take the tax out of the surplus. We have had very little experience with income taxes in this country, but those we have had have shown the inquisi- torial feature of the tax to be most harassing; that is, the power given to collectors of internal revenue and deputy collectors to look into a man's private affairs and to compel him to produce his private papers in order that his actual income may be ascertained. Moreover, the most objection- able feature of the tax is the premium upon perjury which it offers to those who were willing to conceal their income — a matter not at all difficult to do — and who thus subject 252 PRESIDENTIAL ADDRESSES to a much heavier proportionate burden, those who are conscientious in making their returns and who pay the tax as the law intended. So great was this evil in the levy of an income tax in England that when that tax was imposed directly upon individuals, as was proposed here in the so-called income tax amendment bill, it was found that the proceeds of the tax at 10 per cent, were less than the pro- ceeds of an income tax of 5 per cent, imposed as our corpora- tion tax is, not upon the individuals directly but upon the income before it came into their hands. This is a practical argument in favor of the corporation income tax as against an individual income tax that is altogether unanswerable. In England, after a hundred years of experience, the income tax is levied in only exceptional instances on the individual directly. It is first levied on the declared divi- dends of corporations; secondly, on rents before they leave the hands of the tenants, and, finally, on the individual with respect to matters that are not covered by rents and corporate investments. Another distinction which is made in the English law, and which commends itself to every one with a sense of justice, is that the income tax on passive and permanent invest- ments like the stocks and bonds in a corporation, should be higher than on earned incomes, that is, incomes earned by the services of the individual as salary, or as a professional income. Earned incomes thus described are really the pro- ceeds of an application of the capital of the individual which is being consumed and will be entirely used up at the end of his professional life of twenty or thirty years, whereas the income from corporate and business investments will con- tinue permanently without regard to whether the owner lives or dies, and will pass on by succession of law undimin- ished and without reducing the capital. This distinction justifies making a difference between a tax upon the income of corporations and that of individuals where they earn their income by services, either by making the rate less or by AND STATE PAPERS 253 not taxing the earned incomes at all. The latter is the effect of the corporation tax. Another criticism of the corporation tax in the present bill is that only shares of stock in corporate interprises are thus taxed, and that those who own bonds secured by mort- gage upon the entire property or plant of the corporation, do not pay any tax at all. This is true, and the defect was fully recognized by those who drafted the corporation tax. They would have been glad if possible to impose a tax upon the bondholders who are only less interested in the earnings and success of the corporations than are stockholders; but the difficulty of including them and of collecting from the corporation before the payment of interest on the bonds, an income tax proportioned to a percentage of the interest to be paid on the bonds, was that Congress could not author- ize a corporation to recoup itself in the payment of such a tax from the interest to be paid, because thus to impose a tax on the bondholder proportioned to the interest he received would be in violation of the Constitution as interpreted by the Supreme Court, as an income tax not apportioned among the States. Now, if the proposed amendment to the Con- stitution authorizing the imposition of an income tax without apportioning it among the States according to population passes, it will be possible to add to our corporation tax the feature of imposing a tax on the bonded interest in that corporation by a percentage tax upon the interest to be paid, thus reducing the amount of interest which the corporation would pay to the bondholder to the extent of the tax col- lected. This would make the corporation tax a more beneficial measure, and one reaching interests that ought to be reached, because under modern systems of financing corporations, the bondholders and the stockholders are all of them in a sense joint investors and a corporation income tax ought to include them all. Under the conditions that existed with reference to the Constitution it seems to me clear that the corporation tax is an equitable burden — one reaching active business not too heavy to retard it, but enough 254 PRESIDENTIAL ADDRESSES to collect a substantial revenue from those who are success- ful in business. It is a tax easily collected — one that no corporation can escape — one in which perjury can not play any important part at all in an effort to escape it. Another feature of it is that incidentally it will give the Federal Government an opportunity to secure most valuable information in respect to the conduct of corporations, and their actual financial condition which they are required to show in general terms in a public return. In addition, the law provides the means under proper limitations of investiga- ting fully and in detail their course of business. This is to be done only after the Commissioner of Internal Revenue shall have ascertained from evidence that their returns required by law are not correct. Then the evidence which he secures by his investigations of books and papers and examination of witnesses is not to be made public but is to be held in the secret archives of the Government until the President shall deem it of public interest and according to justice to make the facts known. Up to this time we have no adequate statistics concerning our corporations. Even the stockholders, whatever their right may be to know the course of business of corporations, are generally in a state of complete ignorance, and any instrumentality by which the corporation shall be compelled to disclose with accuracy a general statement of their condition certainly makes for the public good. Indirectly it would help very much in another revision of the tariff, whenever that shall come, because corporations engaged in business said to be affected by the tariff will have upon record in Washington their exact financial condition from year to year in the matter of their income, their expenditures and their debts. Having said this much with respect to the corporation tax as it is, I want to say a few words in favor of the passage of the income tax amendment as proposed by Congress to the States. Assuming the constitutional authority to have been given, I am opposed to a general individual income tax law except in times of great national stress. I am AND STATE PAPERS 255 opposed to it because of the difficulty already alluded to, that it puts such a premium on perjury as to have led other governments to abandon that method of levying an income tax and of imposing the tax wherever possible on the sources of income in the hands of those who are not ultimately to pay it. The instance I have already given of an increase of 100 per cent, in the proceeds of the tax when changed from a personal tax to one upon the sources of the income, like our corporation tax, is a most forceful argument in favor of the proposition — that the inquisitorial feature of an income tax levied directly upon the person, together with the inevitable opportunities for escape from the tax by use of perjury, make it desirable if possible to avoid such a direct method of levying an income tax. But I am most strongly in favor of the adoption by the States of the amendment authorizing Congress to impose an income tax without apportioning it among the States according to population; and I am strongly in favor of this because in times of great stress, if war or some other calamity were to visil I his country and we should need to strain our resources, the income tax would be one of the essential instruments by which we could collect a large amount of money to enable us to meet the exigency. It has been so in the past, for during the Civil War it was under- stood that the levy of an income lax without apportion- ment was constitutional, and such a tax was levied and was collected. And I consider it in the Constitution, as at pres- ent construed, an elemental weakness on the part of the Central Government not to be able in times of emergency to levy such a tax. Of "course, it will be said by (hose who are opposed to the income tax that there will be a disposition to impose a direct income tax merely as a means of collecting ordinary income taxes in normal times and that no distinction can be made in the Constitution by which the power to levy such a tax can be limited to times of emergency, because it is impossible to describe what the emergency should be. I agree with 256 PRESIDENTIAL ADDRESSES that, and I agree that there is a probability that at times the desire to tax accumulated wealth will lead to the move- ment in favor of a direct income tax, but I am also con- fident that its inquisitorial character, and the fact that in time the opportunity for perjury will show it to be so inef- fective in reaching the persons whom it is sought to reach by a proportionate burden, that it will be wise to adopt the course taken in England and other countries having great experience with such a tax, and to follow the course of our corporation tax rather than by direct personal imposition, except in great emergencies. If the income tax amendment passes, as I hope it may, we can then enlarge the corporation tax so as to include a proper burden on the bondholders in corporations as well as upon the shareholders; and this will make this instru- ment of taxation even more equitable than it now is. Those who favor a directly personal income tax to use it for the purpose of permanently restraining great wealth will probably find it ineffective for the reasons given. I have already considered in a speech which I made at Columbus in 1907 how our great fortunes could be divided without drastic confiscatory methods. It seems to me now, as it did then, that the proper authority to reduce the size of fortune is the State rather than the Central Government. Let the State pass laws of inheritance which shall require the division of great fortunes between the children of the decedants, and shall not permit a multi-millionaire to leave his fortune in trust so as to keep it in a mass ; make much more drastic the rule against perpetuities which obtains at common law; and then impose a heavy and graduated inheri- tance tax, which shall enable the State to share largely in the proceeds of such large accumulations of wealth that could hardly have been brought about save through its protection and its aid. In this way, gradually but effectively, the concentration of wealth in one hand or a few hands will be neutralized and the danger to the Republic that has been anticipated by a continuation through generations of AND STATE PAPERS 257 such accumulating fortunes, will be obviated. The use of the income tax itself for this purpose will, I think, never be very successful because of the defect already indicated — the difficulty of finding the income upon which to impose the tax and the opportunity that perjury will offer to escape it. An inheritance tax can not be thus escaped because when a man dies his property must come before some court for consideration and adjudication with a view to its legal transmission, and therefore those who are to succeed, how- ever reluctant, must always make a showing of just what the deceased left in order that they may acquire valid title to the succession. • It seems, therefore, that the present Congress has taken the wisest course in adopting as much of the feature of an income tax as conforms to the Constitution, and by recom- mending an amendment to the Constitution which shall enable us to round out and perfect this corporation tax so as to make it more equitable, and so as to make it an instrument of supervision of corporate wealth by Federal authority. I doubt not that the information thus obtained may be made a basis for further legislation of a regulative character, applicable only to those corporations whose busi- ness is so largely of an interstate character as to justify greater restrictions and more direct supervision. XXVII ADDRESS AT THE MORMON TABERNACLE, SALT LAKE CITY, UTAH (SUNDAY, SEPTEMBER 26, 1909) Mr. Chairman, Ladies and Gentlemen: I THANK you from the bottom of my heart for this expression of welcome and good will. I have been oppressed since I have come into this magnificent structure with the thought that you had gathered here in part to hear me, and that I have nothing to address to you worthy of such a magnificent presence. I am told that my distin- guished predecessor, under the inspiration of an audience like this, delivered an address in the nature of a sermon upward of two hours in length. Now, he had the capacity; he had the spirit; and he had the mission to make such a preachment, of moral force and inspiration. He knew how to appeal to the best that is in a man and a woman, and arouse them to uplift themselves to higher standards and higher ideals. But it has not been given to me to exer- cise that great influence which was his and which shone forth from him as he stood before men upon a platform. Yet I have felt that on this Sunday morning it was necessary for me to make such effort as I could to follow him in some- thing that may sound a bit like a sermon. And as sermons are begun with the quotation of a text, having more or less relation to what follows it, I am going to give you the text from Proverbs: "A soft answer turneth away wrath, but grievous words stir up anger." It is a text that has enforced itself upon my mind during the last ten years with especial emphasis, because I have come into contact with Oriental peoples and with those descended 258 PRESIDENTIAL ADDRESSES 259 from the Latin races of Europe, and I have had a chance to compare their views of life and their methods of speech, and their social conventions and amenities with those of the Anglo Saxon race. We Anglo Saxons are, we admit, a great race. We have accomplished wonders in hammering out against odds that seemed insurmountable the principles of civil liberty and popular government and making them prac- tical and showing to the world their benefits. But in so doing, and in the course of our life, it seems to me we have ignored some things that our fellows of Southern climes have studied and made much of; and those are the forms of speech and the method of e very-day treatment between themselves and others. An Oriental will tell you in all the various beautiful forms, of his anxiety for your health, his respect for your character, his almost love of you and your family, and he will put you in a good humor with him and with the world, and he will not expect exactly that you take him literally but he will hope that you will understand that he has good will toward you, as you have toward him. Now that, to our Anglo Saxon nature, seems at first hypocritical, when probably you think, and perhaps rightly, that he does not care much about you at any rate, but he understands and hopes that you understand that what he means to do is to make life more agreeable to you and life more agree- able to him, to lubricate, so to speak, the wheels of society, and to make things move more smoothly without jarring and jolting the nerves of either side. At first that seems superficial to us, who prefer "No" and "Yes," and abrupt methods and the communication in the shortest and curt est sentences. But, my friends, we have much to learn from people of that kind, of courtesy and politeness. The truth is that a man's life in his family, with his wife, with his children, with his mother, with his neighbors, is not made up of grandstand plays and defiance of the elements and all that sort of thing. It is made up of a series of little acts, and those little acts and little self-restraints are what go to make up the man's character. I agree that 260 PRESIDENTIAL ADDRESSES there are men, and many of them, I hope, who are a great deal better than they seem to be in their families and to their wives and to their children and to their neighbors, and that when exigencies arise they do betray and show forth elements of strength of character that ought to commend them to their fellow citizens and their families. But it does seem as if they were depriving their families and their neighbors of something in their not living up to that standard all the time in little things as well as in big things; and the truth is that if we yield to negligence in the little things, if we yield to the momentary desire to be lazy and not attentive, and not courteous to every one, so as to make every one feel as comfortable as possible during the day, we are going to cut down that higher character that we assume to have under greater exigencies when we are showing forth its strength. And so I say that our friends of the Southern climes and our Oriental friends have touched a point in philosophy, the philosophy of life, that we may well learn from them, and introduce into our lives more courtesy and more politeness — more real, genuine desire to make every- body happy by the little things of life, which after all con- stitute nearly all there is in life. I don't for a moment decry the necessity at times for speak- ing out and speaking out with all the emphasis possible, but what I am urging upon you, and what I have seen in other countries with the advantage of having had an opportunity to see both civilizations, is the added happiness that comes to the whole human race when each member of it in a small but effective way tries to make each other member whom he happens to meet happy for the moment, for life is made up of moments and that contributes to the happiness of all. Now, another corollary from the text which I would like to draw, is that we ought to ascribe to our neighbors and to those with whom we come in contact, or with respect to whose action we have to express an opinion — we ought to ascribe as high motives as we can. We ought to avoid AND STATE PAPERS 261 this acrimonious discussion, that consigns everybody who is opposed to our view to perdition, and to having the most corrupt motives, and that ascribes to those who stand with us only the purest. Life is too valuable to waste in anger and hatred, and the charging and denunciation of our fellow- men when they don't deserve it. Now, there are to me some things as full of humor as possible. Just within the recent three or four months we have had an illustration. You know something about the pure-food law which has been passed for the purpose of saving the public from food that will injure the health, or from deceiving the public by giving to it in a form that does deceive something for consumption as food. Well, there has arisen in this reform a discussion over — what ? You don't know what it is, and I don't know what it is, but for lack of more definite information we will call it benzoate of soda. Now that question has been submitted to experts. Some experts have said that it was deleterious when used in connection with food, and other experts have said that it was harmless, but if you read the discussions you will think that benzoate of soda is a moral line and that any who take their place on one side of it are doomed to hopeless corruption and those on the other side are carrying on a cause of the highest morality. I don't mean to say that the pure-food law is not one of the most important laws on the Federal statute books — and it ought to be. But what I do mean to say is that in its enforcement and in view- ing its construction, we must assume that where men differ they differ honestly unless a corrupt motive can be shown, and that while it may be necessary or useful for the public press to encourage the idea that somebody is being moved by corrupt motives, in order to make the headlines a little more salacious, and attractive, and increase the circulation of the paper, it is not necessary for the happiness of the people that it be thought that that question presents a great moral issue which Ss going to divide men between the bad and the good. We will reach a proper solution some time. 202 PRESIDENTIAL ADDRESSES It will probably be found, when the differences are examined closely, that those who oppose each other do not stand so far apart. Another subject that is making a great deal of trouble is the question of what is whiskey, and I have that subject on my hands now. I get letter after letter indicating that if I decide that whiskey is one thing, the whole pure-food law might just as well be abolished, and that I will yield to an element in the community that ought to be condemned and that ought to have no right to live here anyhow. It puts a man in rather an embarrassing situation when the question is really one of fact and law, mixed together, largely one of fact, and one in which I say in passing I have no expert knowledge. The truth is, my friends, this matter of hatred and resent- ment which accompanies the attributing of a bad motive to those who differ with you is a waste of nervous strength, of time, of worry, without accomplishing one single good thing. I don't know how it has been with you, but it has happened time and time again with me that some man has done some- thing that I did not like which I thought had a personal bearing, and that I have said in my heart, times will change and I will get even with that gentleman. I don't profess to be free from those feelings at all. But it has frequently happened, I may say generally, that the time did come when I could get even with that man, and when that time came, it seemed to me that I would demean myself and that it would show me no man at all if I took advantage of the opportunity. Now I am going to tell you a story that interested me greatly when it was told to me, and that I can make appli- cable to this sermon, by the reason for its introduction and its telling. When I was Solicitor-General, it became my duty, in company with the Attorney-General, to call upon each of the Justices of the Supreme Court in Washington; and among those on the Bench at that time was that dis- tinguished statesman, that great orator, and that most excel- AND STATE PAPERS - 263 lent judge, Mr. Justice Lamar of Mississippi. As you know, he was on the other side supporting the Confederacy during the Civil War. It happened that we found him the night of our visit in a most talkative and communicative mood, and when in that mood he was as charming a man as I have ever met. Something arose which led him to say a number of things along the line that I have followed in what I have said to you — that early in life he rather cherished resent- ments and hatreds, and he thought it was an evidence of great strength of character if only he could remember them a long time; but as he had grown older, as God had seemed to be better to him, as the years had grown mellow, and as he had come to love every one of his race, with real affection and interest, he had seen the utter lack of wisdom in allow- ing his time and mind and nerves to be taken up in cherishing those unworthy thoughts. "Well," I said, "Mr. Justice Lamar, you seem to have had some experience. Perhaps you can say what has led you to this." "Well," he said, "there are a good many instances, but I can give you one. I was the agent of the Confederacy in visiting England to secure the recognition of our belligerency during the Civil War. Mr. Mason and Mr. Slidell were Ambassadors really but I was the active agent, and a resolution had been intro- duced in the lower house of Parliament, the House of Com- mons, recognizing the belligerency and, I am not sure but the independence of the Confederacy. Our great friend was a member of Parliament named Mr. Roebuck, and walking on the Thames embankment the day before the resolution was to be discussed in the House, he expressed his great confidence in the success of our side and in the passage of the resolution; and I said to him, 'Yes, Mr. Roebuck, I hope that is true, but every once in a while there comes over me the fear that the House will be carried off its feet by the eloquence of John Bright.' 'Oh,' said Mr. Roebuck, 'Mr. Bright is a great orator for a set occasion, but in a debate I have measured swords with him myself, and I may say I didn't come off second 264 PRESIDENTIAL ADDRESSES best. Or, to change the metaphor, it was a case of the swordfish and the whale.' I was not entirely satisfied," continued the Justice, " but with hopefulness I attended the House of Commons the next morning and had as my com- pany Mr. Charles Dickens, the novelist. Seated just beyond Mr. Dickens was a gentleman of the most distinguished appearance, whose face I had never seen before in the flesh but whom I soon recognized as the Reverend Henry Ward Beecher, who had come over to England to defend the North- ern cause. We three sat there and listened to the debate; there was first an address by Sir Roundell Palmer, the Attorney-General, who defended the resolution; then Mr. Gladstone, who did not support the resolution, although he expressed great sympathy with the Southern Confed- eracy." And so Mr. Justice Lamar went on describing one speaker and another. He loved oratory; he could repeat what he had heard, and I am sorry I can not repeat it to you. But finally said he, " Mr. Roebuck arose and proceeded to attack the North, its motives in assuming to be interested in the freeing of the slaves, its greed; its character as nothing but a commercial people," and so on and so on. To use Mr. Justice Lamar's expression, "He did give it to you fellows in a way that I very much enjoyed and I could not help, every time that he made a point and sent it home, looking around Mr. Dickens to see how Mr. Beecher took it." " Well," the Justice said, " the debate went on and the hour for dinner approached, and I was hoping that the debate was over, because it seemed clearly with us and that no other prominent personage would take part, when I heard a voice like an organ note, a voice of volume and sweetness, the like of which I had never heard before and never have heard since, and I followed the note to the lips of the speaker. When I saw the speaker I saw that the whale was in the fight, and that John Bright had risen to meet the occasion. And bitter as I was on the subject, full as I was of the wrongs of the South and the righteousness of our cause, I could AND STATE PAPERS 265 not but appreciate the strength of his sentences and the greatness of his oratory, and, to complete my humiliation and disappointment, every time in a glowing period that he drove home what he called the iniquity of slavery and the iniquity of our cause, Mr. Beecher leaned around Mr. Dickens to see how I took it. "Now," said Justice Lamar, "from that moment, I hated Mr. Beecher, but subsequently in Mr. Beecher's life, when he became subjected to charges and a great strain and a trial that developed the real sweetness of his character and the grandeur and force of what he was as a man, I lost all that feeling. I did not rejoice in the trials that he had, but I came personally to know him and to recognize in that instance, as in many others, the utter fatuity, the utter uselessness of cherishing a personal feeling, a personal hatred beyond the moment when you can suppress it." And so, my friends, what I am urging is less acrimony in public discussion — more charity with respect to each other as to what moves each man to do what he does do — and that you do not charge dishonesty and corruption until you have a real reason for doing so. I am the last man to pardon or mitigate wrongs against the public or against the individual. I believe, and I regret to say it, that throughout this country the administration of the criminal law and the prosecution of crime is a disgrace to our civilization; but it is one thing to prosecute a criminal when you have evidence and it is another thing to ascribe motives to the acts of men when you haven't any evidence and are just relying on your imagination in respect to what you infer. My friends, I can not in the presence of so great an audi- ence as this, an audience that inspires one with higher thought of country and patriotism, fail to refer to the depth of feeling that has been awakened in me, of gratitude for your welcome, of an appreciation of the basis of that welcome which is loyalty to your flag and country. I understand that in the great office of the President the personality of 2G6 PRESIDENTIAL ADDRESSES the man who fills it for the time sinks, and that the office typifies the nation, so that all people of whatever party ought to feel that toward the man who for the time being holds the office they are manifesting a respect for the nation for which they live and for which they would be willing to die. The advantage of such a trip as that I am taking is of course that I come into personal touch with the people, and I am thus enabled to learn a great many things which other- wise I should be ignorant of, and on the other hand that they come into personal touch with me and find out the kind of personality in a way — very superficially — that they have selected through good fortune or misfortune tempo- rarily to preside over them. A man of an inquiring mind said to me the other day, "It is quite true that you are speaking a good deal so that the people may learn something about your views, but how do you, if you do all the talking, learn anything about what the people think?" Well, stated simply, that would seem to be unanswerable unless you have a knowledge of the people whom I meet along the way, of the persons with whom I talk and of the opportu- nities for observation that are presented in so long a trip as that of 13,000 miles. If a man can not absorb a good deal from the newspapers, from talks along the way, of what is going on in a community, he had better not take a trip. But if he has the ordinary pores in his skin and the ordinary brain tentacles for holding on to things that are in the air, he is apt to get a pretty good knowledge of what is in the atmosphere, what is on the earth, in the communities that he visits. I am not here to justify my coming, because you have been kind enough to be so cordial in your welcome that I do not think it is necessary, and yet I do wish to explain some of the advantages that come from informa- tion at first hand and by personal touch, that one who is charged with the responsibility for four years of carrying on the executive department of the government may pick up. AND STATE PAPERS 2G7 And now, my friends, I say to you again how grateful I am for your cordial welcome, and express to you as sincerely as possible my earnest hope for your further progress and development in order to cap that wonderful advancement and seizure of opportunities that this community displays in its history. I thank you ! XXVIII REMARKS AT THE YOUNG MEN'S CHRISTIAN ASSOCIATION, SALT LAKE CITY, UTAH (SEPTEMBER 26, 1909) Young Men: IT IS always a great pleasure for me to attend a Young Men's Christian Association in any city and to assist, as I have a number of times, in the dedication of new build- ings for the purpose of the Association. I have done that in I don't know how many cities and even as far as Shanghai and Hong-Kong and Manila, and the reason is because I feel that the Young Men's Christian Association supplies a need in every community which no church, no institution, nothing else that I know of can meet. It supplies an oppor- tunity for rational amusement, and at the same time for the study of ideals and for religious worship at appropriate times ; and it saves young men of the city who have not the oppor- tunity of home surroundings. As our cities grow, the number of young men who leave their homes in the country and go to the city increases and it offers to them an opportunity for a rational occupation of their leisure hours — hours which if they do not have the opportunity to spend in rational amusement and occupation are only too frequently devoted to vicious pursuits. Now, that is true in every city. It is especially true in the newer and younger cities. It is very true in the Orient where, so far away from home, young men especially forget the restraints and the obligations that neigh- borhood life puts upon them, and they first take one drink and then another, and as there is nothing else to do, a third, and as those drinks in those far distant countries seem to offer a stimulus that is agreeable, the end is not until they are in the gutter. 268 PRESIDENTIAL ADDRESSES 2G9 I congratulate you sincerely on the evidence of the especial excellence of your Association here. I am told that two or three times you have taken prizes offered to those interested in the Associations the country over for the excellence of your work and the skill and persistence of those who superin- tend it and engage in it. That is an admirable sign of your usefulness to the community. The Young Men's Christian Association offers a lesson which can not be too deeply impressed upon the people — the lesson of tolerance. It means the brotherhood of man and the Fatherhood of God, and the recognition of the advantages of all religion within the Christian brotherhood bringing one nearer to that ideal that we all aspire to and from which we so often fall away. Now, my friends, I should be glad to talk with you longer on some of the details of Young Men's Christian xAssocia- tion work, but it is impossible for me to do so. I can only express my pleasure at having this opportunity in the some- what strenuous program of the last three days to express to you my congratulation on the work that you have done and my hope for your continued usefulness in the com- munity. P XXIX ADDRESS AT SPOKANE, WASHINGTON, (SEPTEMBER 28, 1909) Ladies and Gentlemen of Spokane; Fellow Citizens of Wash- ington : 1AM going to take up to-day the subject of the conserva- tion of our natural resources. This has been given a very wide scope. I do not propose to cover the whole ground to-day. I shall confine my attention to those parts of the policy which are certainly within the jurisdiction of the National Government, and which especially concern the country west of the Missouri River. I refer, first, to the preservation of the national forests; second, to the reclamation of the arid and semi-arid lands by irrigation; third, to the disposition of water-power sites upon public lands with proper restrictions upon the use both in respect to the compensation, its extent in point of time, and the adjustment of rates to be charged to the public by the beneficiary of the grant; fourth, to the disposition of coal, oil and phosphate lands owned by the Government with such restrictions as will permit their development for private profit, and yet will prevent monopoly and extortion in the sale of the product. The national forests as reserved by Executive Order con- tain about 1G7,000,000 acres of land in the United States proper. All of this land is now under the direct control of the Forestry Bureau and is being preserved from fire and from other destruction, and is being treated in accordance with the best modern methods of treating forests under the supervision of Mr. Pinchot, the Chief Forester, and the head of the Bureau of Forestry in the Department of Agriculture. 270 PRESIDENTIAL ADDRESSES 271 It appears that the Government timber land is only about one-fourth of the timber land owned by private individ- uals, and that only three per cent, of the timber land owned by private individuals is properly looked after according to modern methods of forestry. The destruction by fire of forests is estimated to be $50,000,000 a year. It would seem, therefore, imperative that the States should exercise their jurisdiction over these forests to which I have referred and which are held by private individuals, and require some system of fire protection and the adoption of the best methods of forestry. It would seem that the States have a right to do this because of the general interest which the public has in the preservation of the forests, in their equalizing of the water supply, and in their effect upon the climate. The equalization of the water supply, of course, prevents erosion of the soil and the wasteful destruction of the best part of the soil, which is carried down the river with the floods. The regulation of forests in private ownership within State boundaries is plainly not within the scope of Federal jurisdiction, and it should be undertaken by the States. I do not think the States have taken up the matter with as much energy as they ought, and they have not improved the opportunity which was given them by way of example by the Forestry Bureau of the United States. The question whether the Federal Government, with the purpose of equalizing the flow of water in navigable streams, and to promote navigation during the entire year, may enter upon a plan of regulating existing forests and reforesting certain denuded territory in the States, I need not now discuss. The subject would involve a wider discussion than I have time to give it. The plan of the Government to reclaim the arid and semi-arid lands manifested in the reclamation act has been carried out most rapidly by the Bureau charged with its execution. I had the honor the other day in Colorado of opening the most ambitious of these projects, at least the most difficult of them — the Gunnison tunnel — which is to bring water into a valley in Colorado, known as the 272 PRESIDENTIAL ADDRESSES Uncompaghre Valley, with some 150,000 acres, and to put it in a condition to grow fruit and cereals. There are some thirty projects which have been entered upon by the Reclama- tion Bureau, and I believe that all of them are to be com- mended for their excellent adaptation to the purpose for which they were erected, and for the speed with which the work has been done. It is said, however, that in the planning of a number of these improvements, the enthusiasm of the projectors has carried them to a point where they begin to feel embarrassed in the matter of resources with which to complete the projects, and begin to show that prudence was not observed by those engaged in executing the act; that the projects were too many and more than could be completed in a reasonable time after their beginning, because of a lack of funds. The reclamation act provides for the expenditure of funds made up of the proceeds of the sale of public lands and reimbursed from time to time by the instalments to be paid by the settlers who take up the irrigated land, and it also provides that no part of a project is to be contracted for and begun, until the money for the completion of that part of the project contracted for shall be in the reclama- tion fund. Now, it appears that it will take $10,000,000 or more, which is not available in the reclamation fund at present, fully to complete the projects, and it also appears that a great number of persons by reason of the beginning of the projects have been led into the making of settlements, the expenditure of time and labor, with the hope and upon the reliance that such reclamation enterprises would be carried through in a reasonable time. I think there is no doubt that it was the intention of Con- gress that projects should not be multiplied in such a way that they could not be completed within a reasonable time out of the reclamation funds provided by the sale of public lands, and it probably would have been wiser to adhere strictly to the limitation thus construed, even though the language of the act, by dividing up the projects into parts in terms permits the beginning of more projects than there was likely AND STATE PAPERS 273 to be money enough to complete within a reasonable time. The pressure was doubtless very great, and the reclamation service yielded to the pressure within the letter of the law, and now find themselves in the situation described. The work has been well done and reflects great credit on the engineers who have had charge of it. But something must be done to relieve the present situation, which is one of disappointed hopes to many settlers upon the arid lands, who counting upon an early completion of the projects undertaken have invested their money and spent their time and seem to be no nearer the goal of satisfactory irrigation than they were when the projects were begun. I think it wise to apply to Congress for relief by urging the passage of an enabling act, which shall permit the Secretary of the Interior to issue bonds in the sum of $10,000,000 or more, to complete all the projects now projected. These bonds should be redeemed from the money paid into the reclama- tion funds after the completion of the projects. From conversation with the Senators who have visited much of the reclamation work and given an examination to its progress, I infer that such a proposal as this seems to them to be the best way out of the present difficulty, and I shall take pleasure in recommending the passage of such a remedial measure by I lie next Congress. No one can visit this western country without being over- whelmingly convinced of the urgent necessity for the proper treatment of arid and semi-arid lands by the extension of systems of irrigation. The results in the productivity of the soil when irrigated arc marvellous. The mere fact that the reclamation service has gone ahead too fast ought not to prevent Congress from lending its aid to overcome the difficulty. We shall know better in the further treatment of the subject and in the further use of the $50,000,000 fund how to avoid putting ourselves in a similar position again. Meantime irrigation works under private auspices are being projected in every direction, and the prospect of reclaiming millions of acres from the deserts is most encouraging. 274 PRESIDENTIAL ADDRESSES The examples of Government engineering and of ingenuity in planning the structures in these various Government projects for irrigation are of immense utility as models for private enterprise. One subject that is now being agitated in some quarters calls for notice. Payment for irrigated lands is required in ten annual instalments. Suggestions are now being made that these should be lengthened into a longer term. I sincerely hope that Congress will not listen to such appeals. It may be well to make the first three or four instalments nominal, but after that time the instalments should be large enough to pay the total amount due, upon which no interest is calculated, in ten years. Any other course will encourage a lack of thrift and industry and will greatly embar- rass the extension and continuance of the work of irrigation. When the Government became possessed of its public domain and took measures to secure its settlement by the passage of the homestead act and other acts offering, after certain steps prescribed, to vest title to a specific part of the public lands in individuals, the chief object of Congress seemed to be to secure development by inducing people to settle on public lands and acquire it for themselves. The thought of conserving the resources which were thus opened to private acquisition hardly occurred to Congress. Its generosity to the Pacific railroads in offering the public lands in such extensive grants to them is an instance of the spirit which actuated Congress thirty and forty and fifty years ago. I am not criticizing Congress in the slightest for this policy. It certainly was necessary to make extensive grants to secure the construction of a railroad which should unite the Pacific Coast with the Atlantic Coast, and bring closer to the Eastern seaboard the far distant regions of this country. I merely refer to it in a historical way to explain the character of the statutes now upon the statute books with reference to the sale and disposition of public lands. There has always been a distinction made between agricul- tural lands and mineral lands, because it was recognized that AND STATE PAPERS 275 mineral lands would probably be much more valuable, and a different method was required for the acquisition of the one from that of the other. But never until now has adequate provision been made for a classification of lands so as to show distinctly what are mineral lands and what are agri- cultural lands. The truth is, that the needs of the country have developed so, and the demand for land has so much increased, that in order to secure a sensible, business-like disposition of the lands remaining in the public domain, there must be an authoritative classification of lands by the proper bureau so as to show whether they are agricultural lands, forest lands or lands available for water power sites on the banks of rivers and other streams, or mineral lands, coal lands, oil lands, or phosphate lands. Had this classi- fication been made earlier, it would have saved a great amount of litigation and would have saved to the Government millions of acres patented as one kind of land when in fact it was another. The classification so far as authorized is being rapidly executed by the Geological Survey. After classifica- tion, legislation should be and doubtless will be directed to the means by which such lands should be disposed of and the restrictions specified in the interest of the public upon the tenure and use to which the owner is to put such lands. As to lands which arc purely agricultural, there would seem to be no reason for departing from the ordinary method of disposition under the homestead and other laws, including the reclamation acts, by which citizens acquire title in them. With respect to forest lands owned by the public, they should be surveyed and held by the Government under the regulation of the Forestry Bureau permitting a sale of such timber as shall be necessary in the proper forestry preserva- tion. As to water-power sites, there has been such a change in conditions that a special provision should be made in the interest of the public for their transfer to private control. The development of electrical appliances and the transfer 276 PRESIDENTIAL ADDRESSES of power through electric lines for long distances has made the use of water power to produce electricity one of the most important sources of power that we have in this country, and it will so affect the cost of production in all the fields of manufacture and production of the necessities of life as to require the Government to retain control over the use by private capital of such power when it can only be exercised upon sites which belong to the Government. Such sites can be properly parted with under conditions of tenure, use and compensation, consistent on the one hand with reason- able profit to the private capital invested and on the other with the right of the public to secure the furnishing of such power at reasonable rates to every one. There should be a condition of forfeiture if the owner of the power site does not within a certain time expend capital sufficient to double the power, and after development shall charge rates to the public beyond what is a reasonable profit on the capital invested in the improvement to be regulated by the Govern- ment. The amount of compensation that ought to be charged by the Government for the use of the water-power sites might perhaps be left to readjustment every ten or fifteen or twenty years. The compensation to be charged in the outset might well be purely nominal, but after the project has become a complete success and the profit has grown to a considerable percentage of the amount invested, then there Avould seem to be no reason why the public might not be benefited by sharing in the profits of the transaction to an amount to be fixed upon arbitration or in some other method at the end of a stated period of fifteen or twenty years. This is an arrangement toward which the tenure of all public utilities is tending, and I know of no reason why it should not be introduced into the governmental disposition of such sources of continuous power as the water sites upon public lands are likely to be. I know it has been the course in the past under the bounteous and generous disposition of the Government to give these water sites away under existing inadequate acts; but we have reached a time now when the AND STATE PAPERS 277 importance of these water power sites has greatly increased, and there would seem to be no reason why it would interfere with a speedy development of the country to impose restric- tions upon the use of such water sites, equitable as between the public and the investor. This is a matter which Congress must take up. The water-power sites are now generally disposed of under the same kind of a procedure as that by which agricultural lands are taken up, and there is no power on the part of the Secretary of the Interior in the disposition of such sites to impose the conditions suggested. This matter has become so important that under the last administration large tracts of lands amounting to upward of four million acres were temporarily withdrawn from settle- ment in order to prevent the acquisition of water-power sites under the general land laws. This amount has been reduced under the present administration to 450,000 acres, which include even more ascertained water sites than the original withdrawals. It should be understood that these with- drawals are temporary and can only be justified as made in order to permit Congress to legislate on the subject of water- power sites. Should Congress conclude not to do so, it would be difficult for the executive to find the authority indefinitely to withhold these lands from settlement under the general laws, on the ground that they contain water-power sites. The legislative power is vested in Congress and not in the executive. I shall, therefore, urge upon Congress at its next session, the passage of a law authorizing the disposition of such water-power sites upon terms to be agreed upon by the Secretary of the Interior with the proposed purchaser of the character already indicated. It may turn out that restrictions of this sort are so burdensome as to discourage the investment of capital, and it may be necessary to modify the requirements on this account. But my own impression is that the demand for water power is going to be so great that these restrictions will not prevent the investment of capital but will ultimately bring to the public coffers a revenue from an entirely proper source and will secure the develop- 278 PRESIDENTIAL ADDRESSES ment of a power for manufacturing industries that will probably in time exceed the utility and value of coal, and become a substitute for it. I now come to what should be the proper disposition of coal lands, oil lands and phosphate lands. The anthracite coal strike evoked a great deal of discussion in respect to the evils of the ownership by private persons of a monopoly of the coal supply of the country, and led Mr. Roosevelt to declare the necessity for preserving from acquisition by monopolizing syndicates the public coal lands still undisposed of. The truth is that in Alaska the deposits of coal are so great that when they are developed they will doubtless furnish coal to the entire Pacific Coast. They have been reserved from filings since 1906. There are some 900 claims but it is probable that under the evidence adduced most of these claims will prove to have been defec- tive. With such an immense tract of coal land at a place near the sea as this is, from which coal easily can be furnished by water to the entire Pacific Coast, it becomes highly important to settle, before this land shall be disposed of under present laws, whether we are to retain any different control over these lands from those which have been already sold by the Government in other parts of the country. It seems wise in the disposition of coal lands, and indeed of all mineral lands having agricultural value, to separate the surface of the land from its mineral contents; and then either to lease the right to take coal from the land at a speci- fied compensation per ton — that is to provide a system of royalties — or to sell the deposits of the land outright to the coal miner. In every case, restriction by way of forfeiture ought to be included to prevent a monopoly of ownership of the coal land in any one set of men so as to enable them to control the price of coal. This is the great object of a change in the method of their disposition. Some provision should be made with reference to the disposition of phosphate land. This land, which is found in Wyoming and in Idaho, contains the wonderful fertilizer ' AND STATE PAPERS 279 which it will soon be necessary to use on much of the land in the United States, and as the need for the use of this fer- tilizer on much land is growing, we should see to it, if possible, that the product be not subject to monopoly or sold outside of the United States. The oil lands of California, as well as the phosphate lands, and practically all the coal lands have been withdrawn from settlement in order to await the action of Congress; and I expect to recommend to Congress legislation on the lines above indicated, with the general purpose of enabling the Secretary of the Interior in the administration of the land laws to secure more benefit to the public and greater cer- tainty in the security against the monopoly of resources. What, however, I wish t<> make as plain as possible is that these purposes can nol be accomplished unless Congress shall act, and that I he burden of carrying out the policy of the conservation of our resources, in respect to the matters I have discussed is upon Congress. The Executive can recommend but the legislature musl enact. After the enactment of general authority, it is easy for the Executive to make proper regulations calculated to carry out in detail the general purpose which Congress had, but the first duty in respect to the conservation of resources falls upon Con- gress. There has been a good deal of discussion in the newspapers as to the altitude of the present administration toward the general policy of the conservation of resources, and some very unfair and altogether unfounded inferences have been drawn. The truth is, my administration is pledged to follow out the policies of Mr. Roosevelt in this regard, and while that pledge does not involve me in any obligation to carry them out unless 1 have Congressional authority to do so, it does require that I take every step and exert every legiti- mate influence upon Congress to enact the legislation which shall best subserve the purposes indicated. I do not think that Congress, if properly approached, will object to adopt- ing legislation of the general character which I have outlined. 280 PRESIDENTIAL ADDRESSES In the past it has aided the forestry service by what seemed to be ample appropriations. It has in a measure provided for a classification of lands by the head of the Geological Survey. These are both important steps. I hope nothing will prevent our taking the further steps needed when Congress meets. Secretary Ballinger of the Interior Depart- ment, upon whom will fall the duty of executing the new provisions of law, is in entire accord with me as to the necessity for promoting in every legitimate way the conserva- tion of the resources which I have named, and he can be counted upon to use the great influence which he must have as Secretary of the Interior to this proper end. Indeed, it will be found that in his reports as Commissioner of the General Land Office he brought these matters to the atten- tion of Congress and urged the adoption of a general policy along the lines I have indicated. XXX ADDRESS AT THE ALASKA- YUKON-PACIFIC EXPOSITION, SEATTLE, WASH. (SEPTEMBER 29, 1909) Ladies and Gentlemen, Fellow Citizens of Seattle, of Wash- ington, and of the Pacific Coast: THIS great Alaska- Yukon-Pacific Exposition was the objective point on my trip to the West, and I am glad to have arrived here after two weeks' travel from the old Bay State. As I look about me at this wonderful exhibition of the progress of the Northwest, of Alaska, and the Pacific Coast, I feel a great pride in having urged upon the proper Congressional committee, with all the emphasis of which I was capable, the importance and the utility of the enterprise. And it is gratifying to know that under the administration of Seattle men the Exposition has been a great success both in arousing world-wide interest in the growth of the Far Northwest and in showing a profit over the immense outlay needed in its construction and main- tenance. When I first planned my visit to Seattle, I had included with it a trip to Alaska in order that I might by a personal investigation make myself better acquainted with the char- acter of that great territory and with the best method of securing its development. I greatly regret that the time consumed by Congress in the consideration of the tariff bill prevented my carrying out the part of the plan embraced in a visit to this most interesting territory. One of Mr. Seward's substantial claims to the gratitude of his countrymen and to a place among the statesmen of his country was the broad view which he took of the value 281 282 PRESIDENTIAL ADDRESSES of Alaska and his wisdom in effecting its purchase. The cession of Virginia and the ordinance of 1787, which gave to the nation the Middle West, the purchase by Jefferson of Louisiana Territory, which carried our domain to the Rocky Mountains, the annexation of Texas, and the treaty of Guadaloupe Hidalgo, which extended our territory to the Pacific Coast, were properly supplemented by the acquisition of Alaska, and this Exposition may well be regarded as a celebration of the foresight of Seward in his policy of expansion. It would seem that the wealth of Alaska in minerals, in fish, in furs, and even in agriculture, was still but inade- quately known, and yet its value from a mere money stand- point to the nation, as shown by the wealth which has been extracted from it, exceeds by many fold the cost of it to the Government of the United States. A review of the history of the territory will show that Congress has been very slow to extend to it a proper form of government. Alaska is a country of immense expanse, and the govern- mental needs of the southeastern portion near to Washington and the Northwest are quite different from those of Nome and the Seward peninsula and of the valley of the Yukon. Such a territory has need of local legislation and local government, which can only be understood by those who are on the ground, and it is utterly impossible and impractical for Congress in its legislation to govern the details by legis- lation required for the best development of the territory. There has been no authority in the territory having an adequate jurisdiction to meet the exigencies of such a young but potentially prosperous territory. It has been proposed that Congress should give to Alaska the regular form of territorial government under which a legislature and a Governor might be elected, and between the two they might be given the powers ordinarily given to the legislature and executive of regularly organized ter- ritories. I think this would be a great mistake, because I don't think that the territory has a population of sufficient AND STATE PAPERS 283 number or sufficient stability and permanence of residence to warrant the delegation to a locally elected legislature of such authority. Many of the places in Alaska, where there is a considerable population, are nothing but mining camps, with all the migratory and temporary features of such settle- ments. More than that, the population is so small, as compared with the vast expanse of the territory, that it would be unwise to provide that a comparatively small population in southeastern Alaska should elect representa- tives and legislate for the enormous territory reaching from British Columbia clear to the Bering Sea and the Arctic Ocean. Local self-government or home rule, in a country so large as Alaska, with a scattered nomadic population, intense local and sectional feeling, should not be given serious consideration until the population and developed resources of the country have increased to such an extent as to warrant the division of the territory into more limited areas, where the inhabitants of each would have an opportunity to become acquainted, and where there would be some degree of similarity of interests. Before such an experiment, an earnest effort should be made to secure larger percentage of permanent residents and endeavor to attach some of the population to the soil. My own judgment is that the only way properly to develop Alaska for' the benefit of everybody in it, is to bring the Territory under the management of one bureau and depart- ment in 'Washington, so that all the officials in the Govern- ment shall have to report to one head, and so also that the interests of the entire Territory shall be centered in one responsible bureau chief in Washington, whose business it shall be through his Department chief to present to Congress the needs of the Territory, to follow legislation, and to attend to everything at the National Capital in which the people of the Territory are interested. It is not necessary that the delegate shall be dispensed with, but an executive office, with records, with information and constantly active, can 284 PRESIDENTIAL ADDRESSES greatly contribute to the welfare of a territory for which it is responsible when located at the National Capital, and when understood to have the proper authority and responsi- bility. Certain general laws, like the mining laws, the forestry laws, the customs laws and the land laws should be passed by Congress and perhaps executed by national officers, but this would leave a wide domain for domestic legislation which it seems to me ought to be intrusted to some local authority on the ground and having a knowledge of local needs. Of course if the Territory were so settled with a permanent population more or less equally distributed through its extent, such legislative power might be entrusted to an elected legislature, but for the reasons I have given, it seems to me that it would be much wiser to entrust this local legislative power to a commission of five or more members, appointed by the President, to act with the Governor in the discharge of such legislative functions. It seems wise not to confer legislative functions on the Governor alone, but to assist him in its exercise by the addition of competent persons who will live in the Territory, familiarize themselves with its local needs and bring to the attention of Congress and the Executive such additional legislation as may from time to time be wise. It will be observed that this is practically the govern- ment which was given to the Philippine Islands, although the Commission there had more legislative authority than it would be wise or necessary to give to the Alaskan Com- mission. Objection will be made on the ground that this is treating the people of Alaska, who are generally free-born American citizens, as if the Territory were a dependency of persons unfit to exercise the power of self-government. I can not deny that the conditions in Alaska are such as in my judgment to prevent the extension of local self-govern- ment safely to that Territory. It is not because of the character of the people if they were permanent residents and sufficient in number and sufficiently distributed to warrant AND STATE PAPERS 285 the establishment of a representative government, but the conditions that exist are such as to put them for the time being in a position justifying a similar treatment to that of the Philippines. Indeed it would be a great deal better government than at present, because it would be vesting power in a local authority familiar with local needs, and to-day no such power exists. In other words, it would be a great advance over the present conditions. I don't know that Congress will agree with me in this view, but a personal experience in the practical operation of such a system of government for the benefit of the territory governed leads me to feel justified in making such a recommendation. The Territory will develop much more rapidly and the boon of self-government will come much more quickly under such a system than as the government is being carried on at present. The future of Alaska is big with prosperity and great productiveness, but it needs intelligent legislation to develop it quickly and in the right way; and I know no better method of securing such a result than by a properly constituted Commission. There is an opportunity for Congress to aid in the construction of certain railroads that will largely develop the Territory, and which private enterprise is not able or willing to undertake unless it receives some sort of guaranty from the Government. That I would unhesita- tingly recommend, because Alaska is a territory in which private capital can not be expected to build the first railroads. I am especially interested in Alaska because her develop- ment has been delayed by a lack of appropriate legislation and because I know something of the needs of a land so far distant. Of course the law-making power of the Commission should be subject to the approval of the head of the depart- ment at Washington responsible for the government of Alaska, just as is provided now by the law governing the Philippines. Since I last visited the Coast, I am glad to say that the Phil- ippines have had extended to them in the matter of a tariff law a measure of justice, which ought to have been adopted 286 PRESIDENTIAL ADDRESSES nine years ago. If it had been adopted, the city of Seattle, the city of San Francisco, and the whole Pacific Coast would have profited by its enactment. Free trade with the Philip- pines as now established between the Islands and this country will develop an exchange of business between the two countries which will be greatly to the advantage of both. Trade in the Philippines has long had one trend, and it will take some time, perhaps two or three years, to effect a change, even now that the law is passed; but a familiarity with the situation in the Islands makes me confident that the Pacific Coast will come to value more and more highly the trade from the Philippines Avhich will fall to it. There are many industries in the Philippines the products of which will sell well in the United States now that the tariff is lifted from them, and with similar relief from burden in entering the Philippines, American manufactures will have a far wider sale in those distant islands on the Pacific. The Panama Canal will be completed on or before the first of January, 1915, and with its completion the trade between the Eastern and Western coasts of this country will be revolu- tionized, for the carriage of heavy bulk merchandise between the Pacific and the Atlantic Coast is almost certain to be by water. This will reduce the transcontinental business to the carriage of the more valuable classes of merchandise, which can profitably pay a higher rate of transportation. More than this, it will change the avenues of international trade, will bring the eastern coast of America closely in touch with the western coast of South America, and will greatly facilitate the direct transportation from the west coast of America to European ports. China is waking up. She is approaching a period of development that can not but increase her trade and aug- ment her importance as customer and as a trader with this country, while Japan and all the other Oriental countries are moving onward with giant steps in the commercial competition of the world. The many prophecies that have been made that in the next half century the commercial AND STATE PAPERS 287 progress of the world is to he seen more decidedly in the Pacific than anywhere else are certainly well founded; and under those conditions it behooves us as Americans interested in pushing her trade into every quarter of the globe to take steps to repair a condition that exists in respect to our mer- chant marine that is humiliating to our national pride and most burdensome to us in competition with other nations in obtaining international trade. We maintain a protective tariff to encourage our manu- facturing, farming, and mining industries at home and within our jurisdiction, but when we assume to enter into competition upon the high seas in trade between international ports, our jurisdiction to control that trade so far as the vessels of other nations are concerned, of course ceases, and the question which we have to meet is how with the greater wages that we pay, with the more stringent laws we enact for the protection of our sailors, and with the protective system making a difference in the price between the neces- saries to be used in the maintenance of a merchant marine, we shall enable that merchant marine to compete with the marine of the rest of the world. This is not the only question either, for it will be found on an examination of the methods pursued in other countries with respect to their merehanl marines, that there is now extended by way of subsidies by the various governments to their respective ships, upward of $35,000,000, and this offers another means by which in the competition the American merchant ship is driven out of business and finds it utterly impossible to bid against its foreign competitors. Not only this, but so inadequate is the American merchant marine to-day that in seeking auxiliary ships with which to make our navy an instrument of offense or defense, or indeed in sending it around the world as a fleet, we have to call on vessels sailing under a foreign flag to carry the coal and to supply the other needs of such a journey. Were we compelled to go into a war to-day, our merchant marine lacks altogether a sufficient tonnage of auxiliary unarmed 288 PRESIDENTIAL ADDRESSES ships absolutely necessary to the proper operation of the navy, and were a war to come on we should have to purchase such vessels from foreign countries, and this might under the laws governing neutrals be most difficult. The trade between the eastern ports of the United States and South America is a most valuable trade, and now equals something like $250,000,000; but European nations, appreci- ating the growing character of this trade, have by subsidies and other means of encouragement so increased the sailings of large and well-equipped vessels from Europe to the ports of South America as visibly to affect the proportion of trade which is coming to the United States by the very limited service of a direct character between New York and South American ports. I need not tell you of the inadequacy of the American shipping marine on the Pacific Coast and the growing power for commercial purposes in this regard of the Empire of Japan. Japan is one of the most active and generous coun- tries in the matter of subsidies to its merchant marine that we have, and the effect is only too visible in an examination of the statistics. For this reason, it seems to me that there is no subject to which Congress can better devote its attention in the coming session than the passage of a bill which shall encour- age our merchant marine in such a way as to establish American lines directly between New York and eastern ports and South American ports, and between our Pacific Coast ports and the Orient and the Philippines. We earn a profit from our foreign mails of from $6,000,000 to $8,000,000 a year. The application of that amount would be quite sufficient to put on a satisfactory basis two or three Oriental lines and several lines from the East to South America. Of course, we are familiar with the argument that this would be contributing to private companies out of the treasury of the United States; but we are contributing in various ways on similar principles in effect, both by our protective tariff law, by our river and harbor bills, and AND STATE PAPERS 289 by our reclamation service. We are not putting money in the pockets of ship owners, but we are giving them money with which they can compete for a reasonable profit only with the merchant marine of the world. From my observation I think the country is ready now to try such a law and to witness its effect in a compara- tively small way upon the foreign trade of the United States. If it is successful, experience will show how the policy can best be expanded and enlarged and the American commercial flag be made to wave upon the seas as it did before our Civil War. It is true that our foreign trade is great and increas- ing, and this without the merchant marine, but it is also true that the ownership of a merchant marine greatly enhances the opportunities for the merchants of the country having such a merchant marine. This is shown by consular reports and a reference to statistics in an indisputable way. There is no part of the country more interested in the development of this policy than Seattle, Washington and the whole Pacific Coast. With the enormous energy and potential force that you have developed in your community here for trade and business expansion, it cannot have es- caped the foresight of your business captains that the devel- opment of a merchant marine means the growth of Seattle into a port of such importance that hardly the lively imagin- on of her ambitious citizens can compass, ati XXXI ADDRESS AT THE ARMORY, TACOMA, WASH. (OCTOBER 1, 1909) Mr. McCormick, Mr. Mayor, Ladies- and Gentlemen: AFTER what your Mayor has said I don't know exactly what I ought to say. It is a good deal of a burden to bear to start off with that kind of an introduction. It invites a hope that I am sorry to say you will hardly be able to realize: but I am yen- glad to meet a Tacoma audience again. My recollection is that I stole into your town and ran around with a friend on my way to Portland two years ago; that I returned, and then met an audience in the Park; and that I had the honor then of being introduced by your Congressman, Mr. Cushman — "Old Cush," as we called him affectionately in Washington. It saddens my visit to flunk that he is no more; that he has gone from you and has left to you but a sweet and fragrant memory. It was my good fortune to come into contact with him early in my service as Secretary of War, and to know how he cherished his dear old home of Tacoma. I think I told you when I was here two years ago that he wore out the steps of the War Department trying to get me to recommend that a goyernment reservation should be turned oyer to the city as a park. He said, "Mr. Secretary, if you will only do this my people of Tacoma will put a monument in that Park that can be seen way down Puget Sound"; and I said to him, "Why, Cush, old man, you would make a good deal better monument than I would, and what I will do is to get that park and then they will put up a monument to you." Of course, those things were said in kindly jest, but I am here to suggest to the people of Tacoma that they could not honor a more loving son — 290 PRESIDENTIAL ADDRESSES 291 one who had served them better — than by putting up a monument to Francis Cushman in Wright's Park. First, he was an honest man; second, he was a courageous man; third, he was a man of intellect; fourth, he had a genial, kindly heart; and, fifth, he had that delicious flavor of humor that made everybody love to be with him and to come under its influence. There was something about Cushman that always reminded me of Lincoln. He was not a hand- some man — neither was Lincoln — but it is impossible to think of either without an admiration for something about his physical make-up that appealed to you as an evidence of his straight-forward simplicity and love of his fellow-men. His humor, flashes of which have outlasted his life in Wash- ington, comes back every time I think of him. He was going into the tariff debate, and he had known that his committee had voted for a dollar on lumber, and he wanted to keep it up to $2, but he was a party man; lie believed in party; he believed that the maintenance of the solidarity of the Repub- lican party on (he whole was more important than his opinion on a particular issue, and so he was marching up to meet that particular thing he expected to be done, lumber carried from $2 to $1, but when he rose in that House, he said he wasn't hastening the moment because he felt a little bit like that gentleman who in the early days had established a small ranch, and then increased his herd of cattle by a judicious selection from hi- neighbors' herds until they came to the conclusion that it was necessary for him to swing from a limb; and when they asked him to come, he said hs was coming - that he wasn't hurrying because he said that while it was an event in which he had very considerable interest, he could not describe his attitude as one of enthusiasm. I remember another of his witticisms. There was a gentleman in office in Washington whom " Cush" didn't think to be very popular in the West, and so at a Gridiron dinner, at which' the President was present, after it was announced that this gentleman was about to retire. "Cush" expressed proper regret at his going, but said that he was bound to 292 PRESIDENTIAL ADDRESSES admit that when news of that retirement came to the West there would not be a dry throat west of the Missouri River. And so, my friends, Cushman went on through life — helping every one by his optimism — helping every one by his apt story — helping every one by his good fellowship, by his high standard, and by his wish to stand by his fellows. I am sorry, deeply sorry, that you have lost him as a Representa- tive. I am sorry, deeply sorry, that I have lost him as a friend. And I could not come into this community after having been introduced to you, as I was by him two years ago, and having been associated with him since in a close and intimate way, without paying this tribute to a man who loved his people, to a man who deserved well of his people, to a man who loved his country, and to a man who deserved well of his country. Now, my friends, I do not know what I am going to talk about exactly. I have delivered six or eight set speeches on subjects that I think ought to command the attention of Congress, and I have gotten rid of those. I felt about them very much as boys do about written examinations, and now I do not have anything to tie me down. I can talk to you about anything, if I can think of anything to say. There are one or two things I would like to argue with you, because perhaps you differ with me. It isn't of much use to talk with a man and to try to convince him of something he is already convinced of, to talk with him about something that he t^lieves even more strongly than you do; but there is a subject in which possibly in this audience I shall find a number who disagree with me. I talked to an audience over in Seattle about it, and that is the question as to what we ought to do about Alaska. You are interested in Alaska here. The State of Washington — Seattle and Tacoma are the nearest ports to that great possession of the United States. Now, in the first place, we have to admit that we haven't any reason to be proud of the governmental arrangements that we have made in Alaska. Unfortunately, there is right next to Alaska <» country that has been governed by our AND STATE PAPERS 293 neighbors on the north, and that government compares most favorably with our government of Alaska, and we ought to do something about it. It is proposed that we should give to Alaska a territorial form of government, per- mitting the thirty or forty thousand people who are there, to elect a legislature, a governor and other territorial officers to exercise legislative power in that vast territory. Well, that sort of a proposition, of course, appeals to Americans because we Americans are generally in favor of popular government. We believe that popular government among intelligent people is better, because we believe that each set of men, call it class or otherwise, as you choose, men similarly situated are better able generally to decide through their representatives what is to their interest than if you leave it to somebody else; and hence we favor popular government and representative government, but that assumes certain conditions that make it possible for the people to act intelligently. Now, what is the condition in Alaska? They have 35,000 or 40,000 people there, but they are a nomadic people. There are very few permanent residents attached to the soil. There are miners, moving from one mining camp to another. There are saloon-keepers, for that seems to be a very import- ant element in that territory, who change from one place to another, and they are not so situated with reference to the permanent attachment to the soil, or with reference to a distribution through the entire territory, which is enormous, reaching from British Columbia to the Arctic Ocean — they are not so situated that they could provide a government of people having similar interests and reaching similar con- clusions with reference to the whole territory. They are situated in one corner, or they are so scattered that it seems most unwise to me to attempt to make out of so small a community an organized territory and a territorial govern- ment. But you say, "If you don't do that, what are you going to do ? They ought to have some authority in the territory that has power to legislate upon domestic matters. 294 PRESIDENTIAL ADDRESSES The}' ought to have some authority in the territory exercised by people who are on the ground and who understand the local needs." I agree to that. I think that is one of the things that has been most lacking. We have, of course, a commission of army officers there to build roads. We have some judges up there who exercise judicial jurisdiction and some sort of other jurisdiction. We have collectors of internal revenue, and we have a Governor, who has some authority, chiefly of making recommendations to Congress; and then we have a Delegate who comes to Congress, who does not vote but who suggests methods by which improve- ments can be made. But there is nobody to do anything in the sense of acting on the ground and making laws and regulations, which shall meet the needs of that territory. Now, how are you going to bring it about? If they are not in a condition justifying local self-government, as I believe they are not, there is only one other way by which they can do it, and that is the way we pursued in the Philip- pines. There President Mc Kin ley appointed a commission of five persons, who went out to the Philippines and lived there and familiarized themselves with the needs of the Islands. The commission had the power to legislate on all matters of domestic concern except customs, and here in Alaska we might well omit land laws, mining laws and possibly a number of other general statutes with reference to the juris- diction of courts. But if you give to the President the power to appoint five men who are to go there and settle and live there while they exercise their office, pay them good salaries — men who have no interest in the territory — and make it essential that they shall have no interest there of any sort, so that they will be entirely free from factionalism and sectionalism. Then you will get a body of men who will pass intelligently on measures needed to build up the territory and whose recommendations Congress will be glad to follow. Congress, on the other hand, will give to these men the power of local legislation — power to make certain things crimes, to make other things misdemeanours — power to AND STATE PAPERS 295 levy internal taxation, power to make improvements; and then if you get such a commission, I doubt not that it will recommend to Congress to help railroads, because railroads can not be built by private enterprise in a country so far away and where so much risk attends the investment. There is no reason why we should not help Alaska, as we have in the Philippines helped the railroads there, by guaranteeing for a certain time the interest on railroad bonds. There is not a subject in which I take a deeper interest than I do in the development of Alaska, and I propose, if Congress will follow my recommendation, to do something in that territory thai shall make it move on. The ground has hardly been scratched there. Seward was laughed at for paving seven million dollars for that territory, and I think we have drawn from there already $200,000,000 of gold. The agricultural possibilities of the country, the forests and the timber that are there, are not fully understood. We do know thai there is a wealth of coal that can be mined and thai will make coal cheaper along the whole Pacific Coast. It is worth while, therefore, for us to take it up as a business matter. These things are to be treated from a common sense standpoint, not from a purely sentimental one, and if you believe in your hearts, as I believe in mine, that for ten years at leasl we will give a belter government there by sending up live able, honest, disinterested men to pass laws, to recommend legislation to Congress, and to do the things thai are needed to lead that territory on to proper development — if you believe it in your heart, then you ought to say so, and you ought not to be led aside by what seems to be for the moment a popular cry. I know thai the newspapers of Alaska have forwarded a telegram, and I think it got into the papers, in which they recommend that they have a territorial legislature. Now, I am not going to impugn their motives. It is not necessary. I do think that their situation is such that they are much more likely to look upon themselves as able to legislate than per- haps men who look at it from a standpoint of indifference 296 PRESIDENTIAL ADDRESSES and who understand the nomadic or moving character of the population. You would hardly arrange for a mining camp to be a territory. It is agricultural soil and attach- ment to the ground itself that makes a permanent population and that is safe to legislate and maintain a popular government. Now, I have said as much on that subject as I intend to say, except this, that there are a great many people who agree with me and I think there are a majority in Congress who believe that the territory is not in a condition to justify an organized territorial government. Those who are in favor, intensely in favor of developing Alaska, will perceive that my proposition is much more likely to receive support, and that, even if they really believe that they ought to have organized territorial government on a popular basis, it is a great deal better to get half a loaf than none at all, and it is better to take the proposition of a com- mission with legislative power than it is to have the present unsatisfactory condition of nobody able to legislate there and nobody to develop the country. I am appealing, there- fore, to those who differ with me as to what would be wiser — to come over to my side, because on my side we are much more likely to get reform and remedial legislation with respect to Alaska, or to insist upon territorial organization by popular legislation ? I like to come out here, because I believe that here I find a people that sympathize deeply with me about the Philip- pines. The truth is, my political life began in the Philip- pines, and I rather feel as if I hailed from the gem of the Pacific than from any state of the Union, in a political sense. Certainly if it would not have been for them, I would not be President of the United States; and when I come to a people who are as interesting as you are, I like to talk with them because my sympathy and my hopes are far out in the Pacific from a personal standpoint. I am convinced that with the adoption in this last tariff bill of free-trade with the Philippines, the people of Tacoma, AND STATE PAPERS 297 Seattle and San Francisco are going to live to see the day when they will thank God for the passage of that bill. I came over from Seattle this afternoon with a gentleman who congratulated me on the immediate effect of the bill, and said that if I wanted to I could use his certifica- tion that the trade has already begun. He said that he had just sold 100,000 barrels of flour to Manila, and that a great many oihcr things had been sold in the same direction. They are going to have a good many cloths, like pifia cloth, that will attract the attention of the ladies, and will lead them to buy it because it will come over at a cheap rale and because it is very pretty. I am not a judge of it myself. There are summer hats of a delightful texture — I know because I have worn Ihein — and there are many other thing's that the deft fingers of the Filipinos will make and export into this country. On the other hand, your manufactures, your flour and other tilings that yon raise will go oul to the Philippines, all because the duties have been taken off at both ends. I want to congratulate you on the fact that in the next fifty years the growth of this world's business is to be in the Pacific — and you are on the Pacific. You have one of the most magnificent harbors in the world. I do not need to convince you about that I believe, and here at the end of three or four great transcontinental lines you have an oppor- tunity to play an important pari in the Oriental trade of this country. Japjin is making giant strides to control the Oriental trade. She is trying to gel trade in China, jnst as we are. China is waking up from her dream of centuries past. She is developing and the more she develops the more we ought to like it. We ought not to proceed oh the theory that the proper kind of a country for us to deal with is a country that sells to us things at a cheaper price than they ought to bring, and that will give us a higher price than our things ought to bring. That is the way modern commerce is carried on. The great countries that deal with us profitably are the countries who know what they want and whose business 298 PRESIDENTIAL ADDRESSES is of such great extent that they are able to deal with us on a level, and that is the kind of development that we ought to hope for China. With China growing, with Japan growing, with the Philippines growing, and you here at the end of two or three transcontinental lines, with a harbor so magnificent as this is, I do not know what your future is going to be. It is full of hope and if I did not know that you are just as full of hope as you ought to be, I would emphasize it. Hut, that trade is to be carried in what ? It is to be carried in ships. Now, whose ships ought it to be carried in ? [Cries of "ours".] Yes, you are right — you ought to go to the head. And yet we haven't a ship — well, you have; there is the Minnesota, and I am not going to cross the bridge that carried me over; it is a comfortable ship and it took me across the ocean, but it is the one ship you have here with an American flag. There are some in the Pacific Mail in San Francisco. If the bill introduced in Congress by one of your Congress- men from Washington, Mr. Humphrey, passes, offering a subsidy, we shall have a number of lines to the Orient and several lines between New York and the southeastern coast of South America, where there is another trade we are likely to lose because Europe is putting on many fast lines running to that part of the world. This bill is an experiment. We are earning by our foreign mail upward of six or eight million dollars a year profit, that is, the stamps that we sell and our part of the money that is collected for foreign mail exceed our expendi- tures from six to eight million dollars. And all this bill proposes is that that sum shall be invested in subsidies to be paid to a number of lines to the Orient and to several lines to South America, so that we may try it out and see how it will work. Now, I say that it is wise to do that. There are gentlemen who will oppose it, and oppose it consistently, because they say it is paying money out of the public treasury into the pockets of private individuals. It is, but it is not paying it for them to keep it there. It is paying it for them AND STATE PAPERS 299 to run ships out of which they can make no profit at all unless they get it out of what we pay to them; in other words, out of what is paid to them they will have to pay a large propor- tion in order to be able to compete with the ships of other nations, so that it is not paying the subsidy into their pockets for nothing. It is paying something into their pockets for them to do something which will inure to the benefit of the country. Mr. Thomas B. Reed used to express his opinion of men who opposed what he regarded as beneficial legislation because somebody was likely to profit by it. " Oh, yes," he said, "he is one of those men opposed to the bill because a man might make $1.50." Now, that spirit I deprecate. We have proceeded to invest money in our rivers and har- bors so that steamboats could run on them. Well, that money came out of your pocket and mine and through other sources of taxation to put water into the stream so that the steamboats should run on it. The man who runs the steam- boat on the water gets profit out of it. Are not we helping him by direct contribution to do his business? So it is with the protective tariff. We put up a tariff for the purpose of increasing prices and making everybody contribute a little bit in order to have our industries diversified. This subsidy is exactly on the same principle. We cannot protect it by the tariff because the competition is by foreign vessels which we can not control, and the only thing we can do is to pay the money directly instead of making a protective tariff. People run away from the name subsidy. It is a sub- sidy. I am not afraid to call it so. It is paid for the purpose of giving a merchant marine to the whole country so that the trade of the whole country may be benefited thereby, and the men running the ship will of course make a reasonable profit. It is difficult for anybody with any amount of money to run a vessel if he be an American and subject to American laws and make a profit. He can not do it; and we are trying to help him out with this subsidy so that he may make a reasonable profit. We are not making him a millionaire 300 PRESIDENTIAL ADDRESSES cither. When he gets the subsidy he has to work hard to earn it and to make a reasonably small profit. We are gradually convincing those through the Middle West of the mistake of their opposition and the wisdom of paying such subsidies for the purpose of increasing our merchant marine. It is said we have a great foreign trade at any rate. It is increasing every year, so what is the need of this. Let the rest of the world do our carrying business. If they will do it at a cheap rate, let's get it and save our money. The difficulty about that is that when you control the merchant marine, you do control trade. It is seen in South America. The facility with which steamer lines can be established between Europe and the ports of South America has led to their getting more and more proportionately of the trade between the eastern ports and South America, and so it is everywhere. When you control the merchant marine you control the avenues of trade, and you are able to divert it in one direction or another; therefore, it is a great instrument to help us increase our international trade. I ought to say about that trade that one of our troubles is that we are altogether too conceited. We feel, for instance, that we have so much business here that if they do not like the patterns which we make, if they do not like the looms upon which our textile fabrics are made, they need not take them, and the consequence is we lose the trade. We need our foreign trade, and our merchants have to learn that they must make the same effort with the foreign trade as with the domestic trade. This is the course which has been followed by great companies that have made foreign com- merce a success. But I merely note in passing that which has been made most apparent to those of us who have lived in the Orient — that the German and Swiss and Japanese manufacturers consult with the utmost attention the desires of the Oriental, and it is just as well that we should. If we want to sell something, we had better make it attractive to the men who wish to buy it. Now, something which ought to appeal to all of us is that AND STATE PAPERS 301 unless we have a merchant marine, our navy if called upon for offensive or defensive work is going to be most defective. We haven't tonnage enough to-day in our foreign trade to enable us to give to the navy the auxiliary ships that will be necessary to carry ammunition, coal and those other things that are necessary in order to fit the sailors and main- tain the ships. Therefore, we ought to exert ourselves to produce that tonnage so when the time comes that the life of the nation is in danger and we need the navy to protect us against invasion or against attack, we should have the auxiliary under our own flag in order to make the operations of the navy effective. I have talked a good deal longer than I have had a right. I have become interested in these subjects, and have gotten into a perspiration over them, but I believe thoroughly what I have said to you, and I hope when you go home and think it over, you will come over to my side; at any rate, if you do not, that you will believe I have been in earnest in what I have said. I thank you sincerely for your attention. I hope your community will go on increasing in wealth and in intel- ligence, if that is possible. XXXII ADDRESS AT THE ARMORY, PORTLAND, ORE. (OCTOBER 2, 1909) Mr. Mayor; Ladies and Gentlemen; Citizens of Portland: I WISH to extend to your distinguished Mayor and your people of this beautiful city my heartfelt acknowledg- ment of the cordial reception which I have had at your hands since reaching your city this morning. I wish to thank the veterans of the Grand Army for the honor which they have done me to-night in escorting me to this hall. I appreciate the motive of these men who helped preserve the Union, who recognize in me the Commander-in-chief, under the Constitution, of that country which they did so much to preserve and save. I am going to-night, my friends, if my voice holds out, and your patience holds out, to take a little review of the present administration, of what it has done, and of what it has agreed to do. In the first place the party of the adminis- tration agreed to revise the tariff, and in my judgment, that ao-reement involved a revision downward, because, under the theory of the protective tariff after a ten years' trial, the effect of competition ought to have made rates of tariff less necessary generally than they were ten years ago. Now the tariff bill which was passed was, in my judgment, a sub- stantial revision downward, but it was not, in certain impor- tant respects, a compliance with the terms in respect to the woolen schedule, and perhaps there might be some other things mentioned of that character, but the truth was, that the States that were interested in the manufacture of woolens and the states that were interested in the preservation of the woolen industry united and prevented a change of that tariff, 302 PRESIDENTIAL ADDRESSES 303 which had been reached by agreement after very difficult negotiation. Now, the question was whether, because that bill did not, in all respects, comply with the terms of the party, members of the House and of the Senate should decline to vote for it, and the President should decline to sign it. After thinking the matter over, I became convinced that it was my highest duty to sign it, for the reason that while, in certain respects, it was defective, it was nevertheless the best tariff bill which the Republican party had ever offered to the people, and it was necessary that a tariff bill should be passed, in order that the prosperity which we were awaiting should come. As long as there remained unsettled the important question of the tariff, business would not resume with the prosperity and the energy and the enterprise which it would have when business conditions became settled. Again, we are engaged in running a government by party, and because some of us are disappointed with respect to some things that the party does not do, if we think that party considerations are of higher importance, if we think that in order to accomplish anything, we must have solidarity of party, then we may well weigh our personal predilections with reference to some issues, in order that we may maintain a strong party front and accomplish affirmatively the steps that we believe we ought to accomplish. It is easy enough to break up a party; it is easy enough to prevent legislation, but when you are charged with the responsibility before the country of carrying legislation, then you must have a party behind you. Now, that tariff bill not only affected the tariff of the United States, but it also provided an additional means of taxation in order to meet the deficit which was promised, unless some other method of taxation was added to that of the customs and the then existing internal revenue. At first it was proposed to have an inheritance tax, and I recommended that, but the Senate found protests from all the States that they had occupied that field of taxation, and that they 304 PRESIDENTIAL ADDRESSES desired the United States to keep off that reservation. Accord- ingly, the question arose, What should we do? It was proposed in the Senate to pass an income tax laAv, to pass a law that had been declared by the Supreme Court of the United States to be unconstitutional. That court had held that an income tax was a direct tax, and that a direct tax, under the Constitution must be levied in accord- ance with the population of states. Nevertheless there was a majority in the Senate of Democrats and Republicans in favor of passing that bill unless some substitute could be devised which would satisfy the Republicans who were in favor of an income tax, and not involve the passage of a bill which had been declared to be unconstitutional. Accord- ingly it was proposed to have what is now known as the corporation tax, and also to pass an income tax amendment to the Constitution; that is, to propose to the States to amend the Constitution by providing that an income tax might be levied without apportionment as to population between the States. And, accordingly, by almost the unanimous vote of both Houses that amendment has been proposed to the people of the United States, and the cor- poration tax was passed in the tariff bill. I propose, first, to allude to the income tax amendment, which may come up at any time in the legislature of any of the States. I sincerely hope that when it does come up it will pass in each State, and the reason why I hope so is that I think that such a power in times of need and disaster is necessary for the central government to maintain itself, and I would not take from the central government a power which in war is necessary to save the government. We had an experience in the Civil War in respect to that matter. An income tax was levied, and it was supposed, by reason of judicial decision at that time, that the income tax was constitutional, but since that time, as you know, by a late decision — I say late; in 1896 or 1897 — it was held to be unconstitutional. I am not in favor of levying an income tax such as that which was provided in the bill, in AND STATE PAPERS 305 times of peace. I am not in favor of it because I think it will prove to be too inquisitorial as to individuals, and I think it will be found also that it puts a premium on perjury, so that the gentlemen whom you are especially after, when you levy an income tax, will escape, and only those who are too conscientious will pay more than their share. In times of dire need it is necessary that we should use such a tax, objectionable as it is in certain of its features, and, therefore, I hope it will pass the States. Now, what is the corporation tax ? That is a species of income tax which the Supreme Court has said was constitu- tional. It proposes to levy one per cent, on the dividends of all corporations as an excise tax, upon the business which they do as corporations. If I understand the decisions of the Supreme Court, that is held not to be a violation of the Constitution, because it is not a direct tax, but it is only a tax on business; it is an excise tax. That brings under Federal control in a sense and under Federal supervision in a sense all corporations. The tax is not levied on incomes of corporations less than $5,000, but all corporations for gain are required to file returns which show their gross receipts, their expenses, their debts, bonded or othenyise, and certain other general facts which will show their con- dition and enable the tax-gatherer to assess the proper taxation. If the Commissioner of Internal Revenue shall have reason to believe by evidence that those returns are inaccurate in any case, then he may send an agent who shall examine the corporate officers and the corporate books and such other witnesses as may be necessary to determine what the actual condition of the corporation in question is. Now, that is a qualified publicity provision with respect to all corporations of the country, and I think it is an excel- lent incidental benefit of the corporation tax. It is said it is not fair, because on one side of the street is a partnership that is not a corporation, doing exactly the same business that the corporation is doing on the other side of the street. 306 PRESIDENTIAL ADDRESSES But the corporation on the other side of the street has certain advantages in doing its business which are not enjoyed by the partnership. One advantage, and a very decided one, is that the partners are liable in all their estate for the debts of the partnership, whereas the share-holders in the corporation are liable only to the amount of their stock, or, under some State constitutions, to double that. Again, the corporation lives forever; a partnership dies with the death of one of the partners. Other advantages may occur to you, but these two are sufficient to make a distinction. If the corporation does not choose to continue, and they can divide back again into a partnership, they can do so, and nobody will charge them a tax, but as long as they enjoy the privilege of doing business as a corporation, and carry on their business with that advantage, then the Federal Government has a right to levy, and it seems to me it is a wise tax for the Government to levy. It is not a heavy tax; one per cent. — that is one per cent, on a year's income. If you own ten shares of $100 each, that is $1,000, and you receive six per cent.; that would be $60, and one per cent, on that would be sixty cents. It is not a very heavy tax, and I doubt if it will reduce the dividend in the case of any corporation, because a well regulated cor- poration ordinarily does not declare all of its earnings into the dividends. But whether it does or not, I do not mean to say that it is not a tax, but it is not heavy. It will raise about $26,000,000 or $30,000,000, and that will make up the deficit as it is calculated between the expenditures of the Government and the amount raised from the customs and the internal revenue. Another provision of the tariff law is the section which declared free trade between the Philippines and the United States, and that, my friends, you are decidedly more interested in from the standpoint of your pocket than I am, because, unless I am no prophet at all, unless I know nothing of the Philippine Islands, and am no judge of the business that is to grow out of our association in free trade with them, you AND STATE PAPERS 307 are going to find a trade with the Philippines that will grow each year, that will become more and more valuable to you, that will become more and more valuable to the Philippine Islands; so that when the time comes that we can say to the Filipinos: "Here, we have educated you all up to self- government, and you are at liberty to go and become a separate nation, and cut off our business associations and have a tariff between us," you will find, in my judgment, that neither the Filipinos on the one side, nor we on the other will desire that severance. The corporation tax, I have said, gives some Federal supervision over corporations. If you were to look into the statistics of the corporations and try to find out how many there are in this country and what business they are doing and what earnings they are having and what their expenses are, I venture to think you would be in a mass of statistics in which you would lose yourselves. The fact is, there are at present no means of telling what our corporations are doing. In some States they are required to make reports, and in others not. All the difficulties that we have had in respect to the standards of business, in respect to monopolies, in respect to those things that Theodore Roosevelt denounced, and intended to bring about legislation which should stop — all those things have arisen out of corporations and the privileges which corporations have been given. Now, I am not here to denounce corporations. We could not get along without corporations — they are a necessary instru- ment in the business of this country, and in its prosperity; but as we give them privileges, as we give them power, so they must recognize the responsibility with which they exercise that power, and we must have the means of com- pelling them to recognize that responsibility and to keep within the law. One of the things that enables us to keep them within the law is to know what they are doing, for one of the things that a corporation does, if you do not supervise and look closely, is to hide even thing behind it, and this corporation tax is a step 308 PRESIDENTIAL ADDRESSES and a long step toward Federal investigation and supervision — I had almost said control — of all corporations. Of course, corporations within the State are State corporations, but they generally do a large interstate business, and after we have established this only modified and qualified supervision of all corporations, we can begin to classify and make more acute and more direct and more thorough our investigation of those particular corporations that we are after. I think, therefore, that this administration has something already to point to in its accomplishment; that it has passed the tariff bill, that it has put free trade between the United States and the Philippines, and that it has taken a long step toward the proper control of the corporations in the passage of the corporation tax law. Another thing which the tariff bill has done, which has not been commented on particularly, is the provision called the maximum and minimum clause. The European nations have not been slow in levying tariffs themselves. And they have at times discriminated against us in favor of some other country with which they had friendly relations. They have also at times imposed such restrictions, hardly in good faith, upon the importation of our food-stuffs, our lard, our hogs, our beef and other food products, which we send over there, as really to exclude us from their markets; and they have done it in such a way that it was difficult for us to retaliate or to secure an amelioration of the condition of exclusion. Now, this maximum and minimum provision leaves to the President to say whether any country with which we have business exercises the power of unduly discriminating against American products, and if it does not, then they enjoy the benefit of the minimum or normal rate of tariff in coming into this country with their products. But if it does, then the President shall refuse, if in his judgment their provisions are unduly discriminatory against this country and in favor of some other country. If that is found to be the case, then the President shall refuse to proclaim that the AND STATE PAPERS 309 minimum tariff is in effect between us and that country, and therein- the maximum tariff of 25 per cent, of increase on everything goes into force. They have maximum and minimum tariffs in other coun- tries. Up to this time we have had none here, and every time we wanted to get even with some country in order to make that country come down and do justice to us, we have had to appeal to Congress to change the rates, and that was a very clumsy and generally an impossible thing to do, because Congress does not want to change one rate without changing a great many others. So this now transfers that power to the Executive, and enables the Executive to act without waiting for Congressional action. What is going to be its effect ? Not that we are going into a tariff war — not at all. I sincerely hope I shall not be called upon to exercise this power in a single case with respect to a single country, because the existence of the power is enough to prevent other countries from exercising that discrimination against us when they are advised that we have weapons of our own with which to retaliate. Another and most important provision of the tariff is that which enables the President to appoint or employ as many experts as he sees fit, consistent with the appropriation of $75,000, made to assist him in the execution of this maximum and minimum tariff clause, and also to assist him and other officers in the execution of the tariff law itself. I construe that to give me power to appoint a board, which I have appointed, which shall go into this tariff business thoroughly, which shall assist me with respect to a knowledge of foreign tariffs, whether they are unduly discriminatory, and if so, how; also to tell me of the operation of this tariff, to tell me the cost of things here, and the cost of things abroad, and to explain to me what these mysterious technical and business expressions in the tariff law mean. You hear a great deal about the tariff, but I would like to have you take up a tariff bill and go through it and then tell me what it means. Why, it is just like so much Choctaw to a man who is not 310 PRESIDENTIAL ADDRESSES an expert, and you take an expert on a part of it and he will find that a good deal of the rest that he is not an expert on is Choctaw. So what I wish to use this board for, and what I think under the law I have a right to use it for, is to make a glossary, to make an encyclopedia, to make what is com- parable to the United States Pharmacopoeia with respect to drugs, so that when a thing is completed and you take up the tariff law and come to something you do not understand, you can turn to that particular head in the encyclopedia and find out what it means, find out what the exact rate is ad valorem, find out where the article is produced, how many factories in this country, how many in other countries are producing it, and in what quantity; find out how it is pro- duced and what labor goes into it, and what the material costs here and abroad. When we have that, we shall have something upon which the Senate and the House and the people can act intelligently in respect to the revision of the tariff. Now, my friends, that is what has been done. What is there yet to do ? In the first place, this administration was elected on a platform that we proposed to carry out the poli- cies of Theodore Roosevelt, and we propose to keep that promise. Let us see what those policies were, speaking generally. I had occasion to say the other night that one little difficulty in carrying out those policies is that there are sometimes indefinite views as to what those policies are. There are some gentlemen, to use an expression that I have heard good Catholics use when they say that a man is even more Catholic than the Pope, who are more Rooseveltian than Mr. Roosevelt; and when they get a fad that Mr. Roosevelt may have heard of or may not have heard of, but which they are very much attached to, they like to gather it in as a part of the Roosevelt policies, and then if you do not subscribe to it, they denounce you as a traitor to the Roose- velt policies. Well, I was in Mr. Roosevelt's Cabinet four years and had some opportunity to understand what his policies were. AND STATE PAPERS 311 The fact is, it fell to my lot to take the platform and discuss them, by his direction and with his sympathy, and therefore I think I know pretty generally what the Roosevelt policies are and what the platform of the Republican party meant when it pledged the party in the administration, if elected, to the carrying out of these policies. Mr. Roosevelt's chief policy was the determination to make the great corporations of this country obey the law, and those great corporations included two classes; the rail- roads and the great industrial corporations that did a large industrial business, and that had shown a tendency to try to monopolize that business and control prices and suppress competition. Mr. Roosevelt impressed upon the country, impressed upon Congress, and succeeded in inducing Con- gress to pass what was known as the Hepburn Rate Bill, and that was for the purpose of enabling the Interstate Com- merce Commission to fix rates when complaint was made as to their unreasonableness. Up to that time the only thing that the Commission could do was to say, "We believe this rate is unreasonable, and yon must fix another rate"; but thai law said: "No, when you find that the rate is unreason- able, then it is your business to go on and fix a reasonable rate." The law gave greater power to the Commission in other respects in detail, which I shall not dwell upon; but it con- tained a provision for a court of review. There was con- siderable discussion as to whether it ought to do so or not. In mv judgment it ought to have done so but it did not make any difference whether it did so or not; there would be a court of review of a decision of the Interstate Commerce Commission. A court of review arises from a constitutional right of a railroad company or any other corporation owning property to obtain from its use a fair compensation; and, therefore, if the rates were confiscatory, to complain that it was property taken away from them without due process of law. Hence the situation was this — if you attempted by such a law to prevent recourse to the courts it would invalidate 312 PRESIDENTIAL ADDRESSES the law; if you gave recourse to the courts, well and good; if you did not say anything about it, then there was recourse to the courts anyhow. So that the question really was a moot one. Now, the friends of the measure, many of them, dreaded the reference to the court because it was thought that this would delay action and prevent a rapid fixing of rates; and I am inclined to think from the reports of the Interstate Commerce Commission that this fear has proven to be well founded, and that the reference to the court, to the circuit courts and the court of appeals has delayed the remedies sought before the Interstate Commerce Commission, so that we ought to make some other provision in order to expedite those proceedings. For myself, I think it wise, after a consultation with the Commission, and after conferring with members of the Cab- inet, to recommend the establishment of one court of five members to whom all such appeals shall be referred. The fact that they have no other jurisdiction will make them experts; the fact that they sit as five men will enable them to dispose of the business rapidly, and then a case will be ended, except on an appeal to the Supreme Court. It is possible to go into one of some forty or fifty United States Courts all over the country and file your review or petition for review of the decision of the Interstate Com- merce Commission. That produces conflict of decisions between a judge in Oregon and a judge in Massachusetts, and prevents that uniformity which is wanted, necessarily, to establish the proper rights and proper conduct t>f railroad companies. Then there are some other features which ought to be amended in the Hepburn Bill, which I shall not stop to call attention to, except to say in the party platform specifically was provided a promise that a law should be passed referring to some tribunal the question of how many bonds and how many shares of stock every interstate railway company may issue. In other words, a measure to prevent the watering of AND STATE PAPERS 313 stock in the way in which it has gone on heretofore. That is important in a number of respects. It is important, of course, because when you water stock you only do it to deceive people and get them to pay more than the stock is worth. That is the only object of watering stock. Again, it is wrong because when you come to determine what a railroad company ought to earn, the owners of the railroad company turn at once to their stock and bond account and say: "Here are our shares of stock, and here are our bonds, and we ought to earn 5 per cent, on our bonds and 6 per cent, on our stock." If they water the stock and treble it beyond the actual property they have, you see that requires they should pay 18 per cent, of what was the real value of the railroad, rather than six. In other words, it affects, and affects most injuriously, the rights of the people in deter- mining what a reasonable compensation for a railroad shall be. Another thing is that if you pile up the stocks and bonds of a railroad company in such an amount that they can not even earn, no matter what they charge, their interest charge and the dividend on the stock, you are going to have that company in court in the hands of a receiver; you are going to prevent the expenditure of money needed to make it a good common carrier; yon arc going to interfere with its useful- ness in carrying the interstate trade. And there is where the Federal Government has a right to step in and say, "We propose to supervise your method of doing business, even if you are a State corporation only; you are doing an inter- state business, and we have a right to impose such a limita- tion on your method of doing that business as to secure etliciency and to secure the best kind of a railroad to carry goods and carry passengers." Then there is the anti-trust law. That law provides that any corporation or any combination or conspiracy in restraint of interstate trade shall be punished. It provides also that a monopoly shall be punished in interstate trade. It is a law most difficult to enforce. It is a law that by its terms is so wide that it includes other restraints of trade than 314 PRESIDENTIAL ADDRESSES those which arc with intent to monopolize or with intent to suppress competition. And if you read some of the decisions of the court by judges who do not appear to be friendly to the law, you will find that the very fact that it seems to cover a great many innocent arrangements which have a tendency to restrain interstate trade serves to make the law ridiculous. Now, what I recommend is that the law be so amended as to narrow it and confine it to combinations and conspiracies to suppress competition and to establish monopolies, and to leave out the denunciation of general restraints of trade. At common law general restraints of trade were not crimes, but men who entered into a contract that had a tendency to restrain trade were left to their own devices to secure its execution. The courts would not enforce it, but this goes farther and denounces as a crime all restraints by contracts and combinations and conspiracies in restraint of trade. Now, what is the effect of that ? One effect has been that the Supreme Court has held that a boycott levied against interstate trade is within that statute, and the labor unions and others have complained that that is an extension of a statute intended to suppress monopolies, trade monopolies and trade suppression and competition, to something which, while the letter of the statute permits it, was not intended by Congress, and was not the evil at which Congress aimed. I am inclined to think that that complaint is not without good foundation, and that we ought not to strain the statute to meet something which in its original conception it was not intended to remedy. I do not think there is any doubt about where I stand in respect to boycotts. If there is, I will just state what I think about them. They are illegal and they ought to be suppressed. I would never countenance a law which recognizes their legality, and I have not hesitated to say so for a good many years, but I do not think the way to suppress them is to take a Federal statute that was intended for another evil and make it apply to them, although the letter of the statute, and doubtless the judicial construction is right — I am not saying AND STATE PAPERS 315 anything against that, I am not criticising the courts, but I am saying it has just happened that the letter of the statute covers their cases. If the statute is changed as I suggest, the letter of the statute will not cover their cases. The labor unions have said they would like to have a definite exception, saying this statute should not apply to labor unions. I would not consent to that at all. Labor unions have got to obey the laws like everybody else. And to introduce a special exception into a statute is to introduce class legislation, and that we do not approve in this country at all. But if by language which narrows this statute and reaches the evil which it was intended to reach, and reaches it better than by language that is broader and gets in a lot of innocent things in addition, we can make it more effective, and in making it more effective we leave out its application to boycotts, I have not the slightest objection. I think it is a good result. The anti-trust law is a hard law to enforce. It is a hard law to enforce because it is directed against something which the natural tendency in the spirit — - the intense spirit of competition — leads business men to. They wanted to avoid competition. They wanted to get ahead of their competitors, and soon they would proceed to unite with their competitors to drive everybody else out of the business, and they would control prices. Twenty or thirty years ago that seemed all right. But when we began to realize what the logical result of that was, and that if it went on we would soon have every business in the hands of a few men, and we would all be subject to the tyranny and the greed of those few men, we saw something had to be done — and this statute was passed. Now the statute has been most useful and I believe to-day that due to Theodore Roosevelt's efforts, and due to the crusade which he, like Peter the Hermit of old preached, there has been a new standard introduced into the business of the country; and that men consult statutes now, and consult lawyers to know what the lines of the law are. And it is our business to say to these gentlemen: "Thus far shalt 316 PRESIDENTIAL ADDRESSES thou go, and no farther" — to point out what that line is. It takes some time for a series of courts to make a decision which shall be plain to the business world. But we are going on with this trust law, and if we amend it as I suggest, we shall draw the lines closer and closer and enable men to know what is legitimate business on the one hand, and what is not on the other. Now, I have a great many friends in business, and have talked with them on this subject; and I am convinced a good many of them have a good deal to learn. A gentleman said to me, "We ought to have a trust law that shall permit us reasonably to regulate competition, so that we shall unite to prevent too much competition." Well, he didn't tell me just what kind of a law that was going to be; and he did not tell me, because he could not tell me. Again, you will hear a gentleman say that we ought not to have a provision for these restraints of trade to suppress competition which shall be unreasonable; and if they only reasonably restrain trade, and reasonably suppress com- petition, and you get a reasonable monopoly, then it is all right. Well, I don't know what a reasonable monopoly is. I do know what, at common law, a reasonable restraint of trade is; and I will explain that to you, if you have the patience to listen. I didn't expect to speak this long, but this is a subject most important, and if you will only bear with me I will get through. The term "restraint of trade," in English law — common law — our law — ■ referred to contracts by which a man agreed that he would not go into business — a certain kind of business — within a certain territory. Now, that contract was enforceable at common law if it was reasonable. If it was unreasonable it was not enforceable. Now, let us see how the courts arrived at the question whether a contract was reasonable or not. The exception as to reasonableness was introduced for the purpose of enabling a man who had made a good business, and acquired a good will in that business to dispose of that AND STATE PAPERS 317 good will for a price, and to give it to some one else so that some one else might enjoy it. As, for instance, there is a merchant doing business in a certain line in the town of Portland, who wants to sell the good will which by twenty years' business he has built up and made valuable, and he goes to John Smith and says, "I want to go out of business; I will sell you all my plant, and I will sell you my good will." "Well," John Smith says, "what is the good will worth if you can sell it to me and then can go into business on the next corner? You will get back all your old customers." "Ah," says the man who is about to sell, "but, I will make a contract with you that I will not go into business in the city of Portland." Now, that is in restraint of trade. It is in restraint of the man's own trade. But the common law said that was reasonable; because the restraint is limited to that which the man is selling, and which the man is buying. It is what is necessary to protect the good will and make it property on the one hand and enable the man with a business to offer it as something worth having on the other. Now that is as far as the common law went in saying what was a reasonable restraint of trade. I need not say to you that is a narrow phase which in the great industrial business we are talking about plays no part whatever. But when we talk about reasonable suppression of competition and of a reasonably good trust, assuming that a trust intends to monopolize something, I don't see how you can make any distinction at all, or how a judge can sit on the bench and say, "This monopoly is all right, and that is not." I say all monopoly is wrong, and all combinations to suppress com- petition — legitimate competition — are wrong. The statute ought to say so, and ought to be enforced in that way. But restraints of trade which are intended to suppress com- petition are monopolies, and ought not to be regarded at all. We are going ahead to enforce that statute. As I say, it is a difficult statute to enforce; but I think the country is 318 PRESIDENTIAL ADDRESSES prepared now to accept that rule of law. I think the business community generally is looking with great care to see whether it is coming within the inhibition of the law; and I hope by urgent prosecution, and by a change in departments, so we can get more rapid action, the law may be more promptly enforced. There is another Roosevelt policy that we are pledged to, and that is the conservation of resources. I have not time to-night, and I will not detain you with a discussion in detail in respect to that, except to say it covers the treatment of our forests in such a way as to leave some- thing of those forests to posterity; to leave them so that they shall restrain and equalize the water supply. That means also such retention of control over the water powers of this country by the Government, over those water powers which in order to be used men must use the Government land, to retain such control over those that the Government may be able to supervise or regulate the rates charged for the power furnished — the electrical power furnished through those water powers. Then with reference to the reclamation of arid lands, it means the Government shall go on and by the use of money which the public lands bring to it, increase the productive area of land throughout this arid or semi-arid territory all over this western country. Again, it means with respect to coal lands, with respect to oil lands, and with respect to land which produces fertilizers, that there should be some provision by which the Govern- ment shall prevent the use of those lands by monopolies or syndicates which shall monopolize the use of the coal, the use of the fertilizer, or the use of the oil. Now, I do not mean to say those problems have all been worked out; but I do say we have gone so far in the matter of the waste of our resources as that men have seen it, and have been able to call a halt and impress the public mind with the necessity for action. And when Congress meets, I purpose to bring the matter before them and to ask Congress AND STATE PAPERS 319 to amend the statutes so as to put more power in the hands of the Executive in respect to the disposition of this domain, with respect to imposing conditions on the use of the lands which the public gives to its citizens for settlement, in order that there may he a retention of power in respect to these resources, and that they may not be turned over to men who will not observe proper rules, so that on the whole we may not look back upon a field of disaster and waste of which we should not be proud in our history. Now, my friends, I have talked to you a great deal too long; but these are subjects I am interested in and you came in here and deliberately sat here and didn't move out, and you have had to pay the penalty. I thank you. XXXIII REMARKS TO THE PUPILS OF ST. MARY'S ACADEMY AT PORTLAND, OREGON (OCTOBER 3, 1909) Young Ladies and Gentlemen, Boys and Girls: YOU see I make some distinction in the matter of age. His Grace, the Archbishop, called you all his children, as you are, but I have to make a distinction. I am delighted to see you, and I thank the Archbishop, the clergy and the teachers for giving me an opportunity to come here this afternoon and to look into your faces. I understand that you are curious; that you are interested to see the President of the United States, to see what manner of man he is. I am very much interested to see you and to see in your faces and in your bearing the indications of the coming generation in Oregon. I was delighted to hear you sing "America." That is our song, although the air first came from Germany, and then was appropriated by England and now is appropriated by us; but it is a beautiful air, and it is the words that make the sentiment, and the sentiment of that song I am sure searches your hearts, as it does those of older people. Your church teaches that loyalty to God is the same as fidelity to country and reverence for constituted authority, and so do all good churches; and we can be very certain that those who are loyal to their church are certain to be loyal to the country; that those who are good Catholics are good citizens, just as those who are consistent members of every church find in the doing of their duty to the church everything that leads them on to the uplifting of humanity and the observation of all the obligations to government. 320 PRESIDENTIAL ADDRESSES 321 And now, my boys and girls, I am going to say good- bye. I wish you all prosperity. I can see in your faces a healthiness, chubbiness and determination, so that when you get into your games you strive to win. I hope you do, but I also hope that when somebody else is a little stronger or a little better or a little fleeter and that somebody else wins, you will have self-restraint to be good losers. For it some- times' takes a good deal more firmness and character and substance that will carry us through life f<> bear the humilia- tion of defeal than to achieve success and win; not that you ought not to try to win. You oughi to have the feeling when yon win a race thai the nexl time somebody will heat you, and if he does, render to him what is d\w him. Now inv friends, good-bye. I am delighted to have met you. 1 hope this Mine will remain in your memories, as it certainly will in mine. I wish you all prosperity. God bless you all. XXXIV ADDRESS AT THE LAYING OF THE CORNER- STONE OF THE UNIVERSALIST CHURCH, IRVINGTON, PORTLAND, OREGON (OCTOBER 3, 1909) Mr. Pastor, Mr. Chairman, Ladies and Gentlemen: 1 DON'T know that anybody questions the propriety of my attendance on this occasion, or that it is neces- sary for me to enter into an explanation. I conceive it to he the duty of the President of the United States to welcome and encourage and support every instrument by which the standard of morals and religion in the community may be elevated and maintained. It was my pleasure and my opportunity to take part in the dedication of an orthodox Congregational Church in Washington in the spring; my pleasure to take part in ceremonies in a Jewish tabernacle in Pittsburg; to officiate as the layer of the cornerstone of a Roman Catholic university at Helena, and now to take what part I may in the ceremonies of laying the cornerstone of a Universalist Church in this beautiful suburb of Portland. And I do it because I believe that the cornerstone of modern civilization must continue to be religion and morality. We have in our Constitution separated the civil from the religious. It was at one time my good fortune to visit Rome in order by negotiation to effect a settlement of a number of questions which had arisen between the Roman Catholic Church and the civil government in the Philippines. The government of the Philippines under Spain had illustrated that system known in the Spanish Government as the union of Church and State. Their interests were so inextricably united that it seemed almost impossible to separate them 322 PRESIDENTIAL ADDRESSES 323 but with the consent and acquiescence of all denominations in this country, I was authorized to go to Rome to meet the head of the great Roman Catholic Church, in order to see if those matters might not be settled amicably. I am glad to say that the result of the visit was a satisfactory settle- ment, equitable and just to both sides. But I started to mention it in order to relate that I ventured to say to the Pope that the division between Church and State in this country and their separation was not in the slightest degree to be taken as an indication that there was anything in our government or in our people which was opposed to the Church and its highest development, and I ventured to point out that in the United States the Roman Catholic Church had flourished and grown as it had not grown in many European countries, and that it had received at the hands of the government as liberal and as just and as equal treatment as every other church; no better and no worse; but that that was not to be taken as an indication that every officer of the government properly charged with his responsibility would not use all the official influence that he had to encourage the establishment of churches, their maintenance and the broad- ening of their influence in order that morality and religion might prevail throughout the country. This is a Universalist Church, known as a liberal church. I think it must have been a Universalist who said that the Universalists believed that they would be saved because Cod was good; that the Unitarians believed they would be saved because Unitarians were good. But whatever the creed, we have reached a time in this country when the churches are growing together; when they are losing the bitterness of sectarian dispute; when they appreciate that it is necessary, in order that their influence be felt, that they stand shoulder to shoulder in the contest for righteousness. They believe in the Fatherhood of Cod and the brotherhood of man; and the real broad Christian statesman is glad to accept from every quarter the assistance which will elevate the people and lead them on in that progress that we all 324 PRESIDENTIAL ADDRESSES believe the American people are making. If they are not attaining higher moral standards, then all this material pro- gress, all this advance in luxury and comfort is worth nothing. I am an optimist. I believe we are better to-day than we were fifty years ago, man by man. I believe we are more altruistic. I believe that each man is more interested in his fellow than he was fifty or one hundred years ago. I know you can point to instances of self-depravity, of self- ishness and greed, but I believe those instances are made more prominent because we condemn them more, and because by being made prominent the happening of them is made less likely. I am glad to be here. I hope this church will thrive. I hope it will maintain its high principles of making a good man and a good citizen and mixing them together. I welcome the opportunity to be able as President of the United States to say there is no church in this country, however humble, which preaching true religion, which preach- ing true morality, will not have my support and my earnest effort to make it more successful when opportunity offers. XXXV ADDRESS AT HOTEL FAIRMONT AT BANQUET TENDERED BY CITIZENS OF SAN FRANCISCO (OCTOBER 5, 1909) Mr. Mayor and Men of San Francisco: THIS is the fifth time that I have had the honor and the pleasure of visiting your great city. And I am going to come again when I can. I have not had the privi- lege at any time of staying long. But one of the great advantages of your city is that you do not have to stay long to like it well. There is something so cosmopolitan, something so free and open-hearted in the way in which vou take in strangers, something so confident on your part that you have something to give to us which we ought to know and love and feel grateful about as long as San Francisco lives, that I come here always with a feeling that, first I am coming where I am welcome; second, that I will always carry away in my heart a memory, sweet and always to be called up when I think of mv favorite cities. I shall feel deeply this expression of your good fellowship. You have added to the character of San Francisco in the last three years something that makes you exceptional in the history of the world. I know, because there was a time when I had some responsibility connected with it — I know how that first year after the disaster that visited you seemed an unsurmountable obstacle to your restoring the city to the imperial sway that it had upon this coast. And we in the East were considering whether your power was to pass northward or southward, and were regretting that the Golden Gate and your magnificent harbor were not to be 325 326 PRESIDENTIAL ADDRESSES in accord with the city upon its shores. And yet you have overcome all of this. I do not know how you have done it. Somebody ought to write a history about it and tell how it was that you over- came not alone the disaster, but the difficulties that in your own population you had to meet and that seemed for a time entirely impossible to overcome. I do not wonder that you are proud" of it. I do not wonder that your orators can speak of nothing else, for that fills the measure of your mem- ories during the last three years. I had intended to make a staid, sober, dull, business speech to you. It did occur to me as I heard what we had been delighted to hear to-night, that there was an answer to a question which was put to me with respect to the presidential tour. A man said to me, "It's all right in respect to your going and imparting informa- tion to the people. But how are they going to impart it to you with reference to the needs of their sections?" It occurred to me as I sat here this evening that if that man had been here to-night he might have heard a hint or two. Now, there are certain local matters of which I have heard with reference to which I should like to speak, because I am deeply interested in them. You have undertaken to furnish an auxiliary coast artillery force. The United States agrees to equip it and give it instruction, so that if your shores are ever threatened that force will be trained to work the guns for which in the Federal army we have but about a quarter of the men required. I understand that there is a movement in San Fran- cisco to erect an armory for that coast artillery. I sin- cerely hope it will succeed. You could not do anything that would aid the Government more than in the prep- aration and the furnishing of such a force. Infantry are good, and infantry we ought to have. But if you will furnish a trained force to man the guns, you will give us a force that, under ordinary circumstances if we did not have it, would take at least two and perhaps three years to fit men to discharge that duty. AND STATE. PAPERS 327 Then I have heard something about the merchant marine. You are the gateway to the Pacific. The Philippine Islands have at last had justice done to them, and we are going to have free trade between them and this country. And that trade is going to grow. It may be slow at first, but it will grow so substantially and be of such mutual advantage to this country and the Philippines that when the time comes for us to say to them, "Go if you choose; cut off your relations to us: you are fit for self-govern- merit," in my judgment neither they nor this country will be willing to say so. I do not mean to say that we should not go Dii and give them as full a self-government as they desire. Hut I do mean to say that they will see it to their advantage, as you will, that the bond shall not be broken, and that some sort of relation like that between Australia and England or between Canada and England, shall be retained, and the markets of each country opened to the merchants of the other You have Alaska on the north. Its wealth — though it has produced marvellously, measured by the expectations of those who sal up and threw bricks at Seward for spending seven millions to buy it nevertheless hardly has been scratched. And if I can carry out my purpose, and Congress will follow my recommendation, we will have in that territory a government l>\ a commission which shall have legislative power to attend to the domestic needs of that territory and recommend to Congress the development that ought to be going on there. Congress and I do not hesitate to say it — has been derelict. It has not done its duly with respect to Alaska. It ought to do it now. I know there is a disposition to say that we ought to give it popular self-government. But I think that those of you who are familiar with the character of the settlements in that Territory will agree with me that they have not reached the time when that is the safest and best method of government for their real development. It is easy to catch the applause of the crowd by saying, 328 PRESIDENTIAL ADDRESSES "We are bound to self-government, and self-government is the best government possible." Well it is — under conditions favorable to it. But there are times and con- ditions of a temporary character when it is not the best. And we ought to say so. Then we are building the Panama Canal. We are digging out of it three millions of cubic yards a month. W T e shall certainly complete it by the first of January, 1915, and I am hoping, oh, so fervently, that it will be a considerable time before that. China is waking up. It is developing as it never has before. Its future is bright with the prospects of increased activity in its industries and the development of its marvellous resources. Its trade must grow under these conditions, and its international relationship become more and more valuable. Japan is showing marvellous advance in its commercial strides. And as it does grow in its commercial success it becomes valuable as a neighbor and a trader and a customer. I am in favor of helping the prosperity of all countries because, when we are all prosperous, the trade of each be- comes more valuable to the other. As has been said to-night, it is true that the future of the world for the next fifty or one hundred years in progress lies in the Pacific Ocean, at your gates. The success of your community as a business community and a trading com- munity is not going to be dependent entirely on whether you have a merchant marine or not. We have gotten along in a wonderful way in increasing our international trade without any merchant marine at all. But that is no argument and no reason for saying that we might not have made greater strides and might not have directed that trade much more intelligently had we had the ships which helped us to carry that trade to the foreign countries. The trade of South America is a most valuable one, AND STATE PAPERS 329 reaching up nearly to a billion dollars. Of that sum 2r>0 millions is between the United States and South America. We have word from our consuls that, appreciating the importance of that trade, European countries are stimulating by subsidies, and other means of encouragement that comes to the same thing, the addition to the number of sailings of steamships from European ports to South American ports, and thai that addition is showing an effect upon the trade and moving more of it proportionately to Europe. Now, we musl do something. We have a protective system in the United States which encourages industries, and we are able to carry it because these industries are com- pletely within our jurisdiction. But when we enter into competition on the high seas we can only control our own ships. We can not control the ships of other countries. Therefore we musl adopt some other method than that which we pursue with respect to the protection of our industries. What method is that ? 1 do not know any that commends itself quite as much to me. because it is on a protective prin- ciple, as to furnish to those men who will engage in that trade enough money to make the difference, to equalize the difference thai they encounter in their competition with foreign trade by reason of the greater expense of labor, the greater expense of material and the greater cost incident to the stricter regulations that we impose with respect to our sailors, and unless we also add an amount equal to the subsidies which our competing nations give to their own ships. That is said to !><• undemocratic doctrine. It is said to be subsidy. It is said to put money in the pockets of private individuals. As Tom Reed said: "That man is opposed to the statute because somebody might make a dollar and a half out of it." It is not true that we put that subsidy into his pocket to enlarge it. We put that subsidy into the pocket of a private individual or a private corporation to enable him or it to render to us a service — that is, to give us a merchant marine, out of which, with the subsidy added, he shall be able to make only a reasonable profit. 330 PRESIDENTIAL ADDRESSES Now we make eight or nine million dollars out of our foreign mails. The proposition is to experiment first by using that profit which we thus make to pay mail subsidies and establish lines of those steamships between this coast and the Orient, between this coast and Australia, and between the east coast of this country and South America. Let us try that. Let us see how it works. If it gives us good times, and those lines, by reason of the fact that they carry the United States flag and are put on for the purpose of encourag- ing American business, do encourage that business — that will be a basis for further trial, further experiment and further building up of a United States merchant marine. If, on the other hand, that experiment proves to be a failure, the money that we have spent will be well spent in teaching that it was a failure. Something has been said about the conservation of re- sources by Governor Gillett — oh, no, there is another thing that I forgot about the Governor. He wants sixteen or eighteen battleships on this side of the water. Well if you will guarantee that the only attacks which are coming will come on this side, we will let you have the battleships. But I want to call attention to the fact that if, in two or three or five years, we have a Panama Canal, it in itself will double the efficiency of our navy, and the difference between the east coast and the west coast will be far less in sailing distance than it ever was before. The truth is that my impression about the Panama Canal is that the great revolution it is going to introduce in trade and the trade of the world is in the trade between the east and the west coast of the United States. I think it is going to affect the transcontinental lines so as to take from them a large part of the heavy bulk merchandise that can not afford to and ought not to pay high rates, and to limit their carriage to that kind of merchandise that needs rapid dispatch and is valuable enough to pay the high rates consistent with that rapid dispatch. It will also, of course, affect the trade between the eastern AND STATE PAPERS 331 coast of the United States and the western coast of South America; for that, with the Panama Canal, will be almost in a straight line. If you will look at your geography, you will see it — your recollection of your geography does not tell you that, hut if you will put the ruler there you will find that is just about it. Also, it will develop the trade between the west coast of the United States and European ports. Everybody in the United States will, I am very sure, feel the benefits of the Panama Canal. How far it will affect the Oriental trade from New York or from Liverpool is a different question. There the competition of the Suez Canal will be so greai thai the modification will not be, I think, as much as is expected. But to come to the question of the conservation of resources — the Governor stated it with exactness. We must preserve our forests, but we must preserve them in such a way and with such a knowledge of forestry and the reproduction of the timber as shall permit us to enjoy all the timber that ought to be cut and to leave that which shall insure a constant reforestation of the country. Now, thai is a difficult matter. The Government forests amount lo aboul 195,000,000 acres. I think there are four times thai amount in private ownership. Seventy per cent, of the Government forests are subjected to proper forest regula- tions, and only about 3 per cent, of the privately owned forests are so treated. That is a subject probably only within the Slate jurisdiction. It seems to me that the States ought to be, and doubtless they are, taking immediate steps to bring about the preservation of privately owned forests, because we are all concerned in the maintenance . of our tiers, in the distribution of the waters, and the equalization of the waters which the forests affect. And the Federal government, unless in some way or other through the theory that it wishes to maintain navigable streams may exercise that authority, will find it difficult to deal directly with those who own forests and wish to 332 PRESIDENTIAL ADDRESSES cut them down without regard to the preservation of the trees and the equalization of the falling waters. Then there are the water-power sites. There are a great many water-power sites that the government does not control, a great many that either are controlled by the States or are owned by the riparian owners. But I think we now know enough of the growing value of that water power to insist that the water-power sites which are still owned by the government shall be treated in such a way that the govern- ment may, in its conveyance of these sites, retain sufficient control over the large amount of water power that is still to be used which is on government sites, to prevent a monopoly and the gathering of all that power into a single hand. And I believe it can be done reasonably by imposing con- ditions which in the beginning are not burdensome, but which by readjustment, after successful use shall have shown a profit, we can share with the government or with the con- suming public, by reduction in rates, the charges that accrue from a continuing use of that water. In respect to the reclamation of arid land — the irrigation of arid land — no one can visit this western country without realizing that that is perhaps the greatest problem we have. We used to think that our farming and agricultural land was so extensive that we never could exhaust it. The truth is, we are up against it now. And the real reason for the increase in prices in the things that go to make up the food of our inhabitants is the fact that all the good land has been or is rapidly being taken up. We must, therefore, if we would still retain agricultural control of the world, take some steps to avail ourselves of those great stretches of what seem now to be arid and desert lands, but which, by the application of water, when the water is properly administered, may yield a production marvellous to behold. So I think this trip has for me been full of information. It has made me much more alive to the immense importance AND STATE PAPERS 333 of the conservation of our natural resources, especially of the importance of dealing properly with our arid lands. The Federal Government has, of course, resources greater than most corporations. How far the Federal Government ought to go in this matter may be a subject for discussion. We certainly ought to encourage, as far as we can, private enterprises in the building of canals, irrigating canals, and in using the water of the streams to bring into agricultural production those desert plains. But there are a great many enterprises about which it probably may be said that they are too venturesome, too full of risk for private enterprise. These ought to be undertaken by the Government with a hope of furnishing models to private owners thereafter upon which to complete the system and extend it. I am not a paternalist, and yet I am not a doctrinaire of the laisser-faire school. I think a judicious mixture of paternalism where it trains the children of the Government in the way in which they should go is proper. If we limit our expenditures on this head, as they are limited in the reclamation act to the proceeds of the sales of public lands and to the proceeds of bonds to be paid out of the sales of public land — as is now proposed — I don't think we shall have carried the matter to such an excess as will demoralize our people. I know there was a convention up at Spokane, or some- where, and a resolution was introduced that we should issue a billion of bonds for reclamation, a billion of bonds for irrigation, a billion of bonds for the improvement of rivers, and then there were two other billions, but I have forgotten just what they were to be applied to. Of course, such pro- positions send a chill down the back of a member of the appropriation committee, like my friend Senator Perkins; and everybody connected with the expenditure of money in Congress has gooseflesh when you even mention it. Therefore I warn those who are very earnest in this matter that they must be reasonable and wise as serpents in making 334 PRESIDENTIAL ADDRESSES their suggestions in respect to the matter so as not to frighten those who feel charged with saving us from financial disaster. And now, my friends, to return again to the personal element in the reception of to-day and to-night — I can not speak with the eloquence and fullness of heart that I feel welling up within me. I thank you and the people of San Francisco, for whom, in their stress and trial and admirable recovery I have the highest admiration, and I feel it a great honor to have at their hands such a cordial and sincere welcome as they gave me to-day, and such a good fellowship welcome as you have given me to-night. XXXVI ADDRESS AT CITY HALL PARK, FRESNO, CAL- IFORNIA, AT A UNION RELIGIOUS SERVICE (OCTOBER 10, 1909) Mr. Mayor, Clergymen of Fresno, Ladies and Gentlemen, Citizens of Fresno: IT HAS not been my part in religious exercises, until I began this trip, to do other than form one of the audience; hut I have found it impossible, under the friendly urgency of ministers of the gospel who occasionally desire a lay substitute, to keep from taking their places and attempt- ing to preach a sermon. I want to say, first, with respect to this audience, that the presence of the veterans of the Civil War is always a great inspiration to higher thoughts, io higher moral standards and to everything that goes to make our country worth living for. I had discussed the question with some of my companions as to what subject I might select for this Sunday afternoon as one taking part in religious exercises, and, with the true California spirit, it was suggested that I ought to point out to Californians how much they have to thank God for. And perhaps if I took that subject I could get more earnest sympathy and hearing than with some other texts more useful. There is a text, however; I do not know that I can quote it exactly; but to these gentlemen before me who have taken part in the battles of the war, it will come by reason of its comparison with great significance, that "He who conquers himself is greater than he who taketh a city." Now the home application of that text to the individual I need hardly point out. The struggles of a man who is burdened by "~ 335 336 PRESIDENTIAL ADDRESSES heredity or otherwise with the taste for strong drink, who having yielded many times has finally struggled and with the aid of God won the victory, those of us who are not so afflicted may yet appreciate and honor. But it is not drink alone. I sometimes think, and perhaps your distinguished Mayor, even more distinguished as a physician, will agree with me, that the appetite for food is one that may well enable a man, if he can control it, to look upon himself as better than the man who taketh a city. And then there are so many instances in little things. I like to dwell upon the importance of little things in life, for life is not made up of one great series of grand stand plays. It is made up of the little things that go either to make others happy or to make them unhappy. It is the conduct of the husband as he comes home after a tired day in restraining himself when he is met by his eager, curious wife who wants to know how he has been living during that day and what has happened. Perhaps something has happened that does not please him, and he does not like to refer to it, and he cuts her off with a short answer. Oh, I know it and so do you. You have done it. So have I. Now, the overcoming of that disposition, the keeping of her happiness, and not your comfort and disposition con- stantly in your mind and heart is what makes you greater than if you took a city. And so it is with reference to every one with whom you come in contact. If you have to say "No" say it in such a way as to indicate to the person to whom you say it that you would like to say "Yes" if you could; and when you do say "Yes" and are able to communicate it to the other person, then you are glad because you know it makes him feel happy. These are the homely illustrations of what I read into that text. But I am ex- pected, I suppose, to look at things from a political and governmental standpoint, and the text appeals to me more strongly in that regard possibly than in any other, because of some very acute experiences that I have had in political matters. AND STATE PAPERS 337 Popular government we all approve of, though sometimes I don't think we know exactly why we do approve it. I think frequently we mistake ends for means. We talk about liberty as something to be secured as an end. We think of popular government as something to be secured as an end. Well, neither is true. Liberty is a means in the pursuit of happiness. Popular government we have because we believe in the long run that it is the best government, that it is the government which makes most people happy, and the reason is this : That in the long run the interests of any particular class, and by that I mean those people who are affected by the same set of circumstances, can by representa- tion in the government be better trusted to look after their own interests than any other class can be trusted to look after those interests, no matter how altruistic that class. So that if every class is represented, assuming that each class has intelligence enough to know its own interest, we can count on that being a better government than a government by one or a few or only a particular class. That is a popular government, but yon can not run a popular government merely by calling it so. You must have some means of determining what shall direct the course of government; what shall decide. That is the majority. I do not know any other method in a popular government. We do have checks. We do have indirect means of giving expression to that vote of the majority, but when you get down to the basis, it is the control of the majority. Now you can not have a decent, popular government unless that majority can conquer itself; that is, unless that majority exercises the self-restraint that men with great power ought to exercise if it is to be exercised justly, you can not have popular government. And why ? Well, take instances. I am not going into the various parts of the world, but I could call your attention, if it were not that I am in a responsible position now with respect to foreign countries, and must speak with care — I could call your attention to a good many instances where those who are in favor of popular 338 PRESIDENTIAL ADDRESSES government, and who, if I may use the expression, pull the tail feathers out of the eagle in deifying liberty and apostrophizing everything that we hold dear, think just as soon as they become a majority that that gives them the right to control the minority absolutely, and if the min- ority show any disposition to question it, they send them to jail. What is the effect of that? They say this is popular rule; this is the rule of the majority. So what does the minority do? Why the minority says "We will take to the woods," and they do take to the woods. And so we have that system that alternates between an election and a revolution and a revolution and an election, and we call that popular government. Now, why is it that it works that way ? It is because the majority and the minority do not govern themselves and do not exercise that self-restraint without which popular government is absolutely impossible. And that is the application of the text that comes home to me in thinking and dealing with these coun- tries that are struggling for popular government. A minority that is beaten in the election can not stand the defeat. It has to go to the woods. They are not good losers, and the majority are not good winners. Popular government is a most difficult thing to establish. We have had to hammer it out in a thousand years of Anglo-Saxon suffering and controversy and contest. And now it rests, where ? It rests in the common -sense, and the self-restraint of the American people. It rests in the knowledge of the majority that it must keep within the checks of the law and the Constitution if the Government is to be preserved. And it must rest in the view of the minority that it is much more important that the government should be sustained than that the minority should have for the time being control of or a voice in the government. Its rests in the knowledge of the majority that the rights of the minority and the individ- uals of that minority are exactly as sacred as the rights of the individuals of the majority. Our people exercised govern- ment over themselves when they adopted the Constitution AND STATE PAPERS 339 of the United States. We do not vote directly under that Constitution. We have a vote which controls the lower House in the selection of the members. We delegate to those members the power to make laws. We do not make them directlv. We elect legislatures which elect Senators. Those Senators are reelected every six years. The members of the House are elected every two years, and then we elect a President every four years. Each one of those little joints between popular expression and will and the embodying of that will in I he resultant course of the Government, is something which the people voluntarily introduced into our government — for what purpose ? To enable them to govern themselves, so that the first wave of popular will should not find immediate expression in legislation, but that the people should take time, should discuss the matter, and should have several delays before they accomplish their entire purpose with respect to the Government. The people rule, there is no doubt about that, but they rule according to law and under the Constitution, and they voluntarily and willingly placed the restraints of that Con- stitution upon themselves in order that they might act with deliberation and with the checks that were sure to secure moderate, clear-headed, well-thought out policies, and there- fore when the American people voted that Constitution and now are maintaining it and supporting it, as I hope they always will, they are governing themselves, and are more to be credited than he that taketh a city. And finally even we — or rather even those of the cloth, whose place I humbly take at this hour, have learned to govern themselves in 'this. There was. a time in religious history when the man who was in governmental control and had his own theological theory to work out, worked it out by breaking everybody into believing it or else by cutting off the head or burning the body of the man who didn't agree with him. Well, you can reason out pretty logically sometimes that that was the course to be properly taken. ' And we tried it on both sides. One church and 340 PRESIDENTIAL ADDRESSES then another, as it got a chance, took that method of intro- ducing religion into the mind and soul and body of the person thus offered up. After a time there crept into the beliefs and practice of all religion the idea that the way to have religion conquer was to be gentle with views that were contrary to the creed and rely on the arguments and the spirit of the religion to win converts rather than to use the stake and the axe. They overcame the feeling in themselves that they must make their religion conquer by any means, and they took the method that introduced a broad tolerance of all religious creeds and let each creed and each religion speak for itself gently with a message of good will to all humanity; and that is what we have to-day. And that is what I am glad to think is illustrated by this meeting to-day. It means the brotherhood of man as between all christian religions, the brotherhood of man and the Fatherhood of God. It means tolerance for every belief and every creed that a man honestly and conscientiously entertains. And it means that with that tolerance all the people can be much more surely brought within the circle of those who believe and act upon that belief than by any other method. XXXVII REMARKS AT THE BANQUET TENDERED HIM BY THE CHAMBER OF COMMERCE AT LOS ANGELES, CAL. (OCTOBER 11, 1909) Mr. Toastmastcr, Mr. President, Members of the Los Angeles Chamber of Commerce, Ladies and Gentlemen: I HAVE attended many banquets. I think that, measur- ing up for the last ten years, I may be said to be as great an expert on banquets as any thai the world affords, and while I have attended larger ones than this I have never attended one more beautifully appointed and never one set with such beautiful gems. If is not for me, a guest, to critieise the arrangement by which the ladies look on and see the animals feed. But it is only a type of their loving patience that they should be willing thus to retire and have the men seem to do the important tiling. It is a great pleasure for me to revisit your beautiful city after now some ten years preceded by a visit ten years before that, so that I claim temporarily to be one of your pioneers. I came into your city this morning by way of your harbor, and my interest in your city was originally largely developed not from an Eastern standpoint, but from the standpoint of a territory from which I have more right to hail I think than the State of Ohio — I mean the Philippine Islands, and I remember as I went there in 1900 I passed through your city and received the welcome and the wise advice of your distinguished fellow citizen, General H. G. Otis, who had labored faithfully and well and exposed himself to the dangers of death in order that we might tranquilize a 341 342 PRESIDENTIAL ADDRESSES country, which God had placed under our guidance. Then another connection with the Philippines is the fact that after we had made a great General in the Army of the United States — General Chaffee — and fitted him for great tasks, and then retired him because the law required it, you had the good sense to take him and make use of the talents with which he was endowed. Now, coming in by way of that harbor I learned a lot of things. The fact is, in the trip across the country, I have had to justify my coming at all, and have attempted to explain that in coming I have gathered a great deal of information. But it has been said to me that if I do all the talking, how do I absorb any information. I only want to cite as witnesses those who are present to-night to prove that in the course of my journey there are oppor- tunities for information, and I am delighted to improve them. I thought that story of the hobo and the generous lady was exceedingly apt and that the gentleman who used it followed out to the uttermost the principles of that student of human nature. But with respect to your harbor, I am bound to say, first, that I have learned to-day by personal observation a great deal about it and of its value and of its possibility as one of the great harbors of the Pacific Coast that I did not know before. I did know that you were in- tensely interested in it. No man could live in the neigh- borhood of your junior Senator and have anything to do with the authority concerning that harbor without having it borne in upon him, as our Methodists say, with an intens- ity that he doesn't forget. It did not seem to me to be of such immediate importance that the harbor lines away out here on the west coast should be fixed for a particular harbor, but there was nothing for me to do under the circumstances but to end that controversy in view of the attitude that Senator Flint bore toward me, and I made an order that the engineers should fix those harbor lines or else some engineers would suffer. No, I do not ask your AND STATE PAPERS 343 gratitude on that account. It was a matter of personal comfort to me, and I fixed them, and they are going to stay there, at least as long as I have control; but, of course, they are going to stay there. They were fixed by an eminent body of army engineers, than whom there are no greater or men of higher character. You were greatly concerned, or some of you were, when the gentleman who preceded the present engineer was assigned to some other duty and the present engineer put in. It is possible I have met Captain Frees. It is a little difficult to keep all the army officers, when there are 3,000 of them, in your mind, but I have met the present engineer — I met him this morning — and if there is any citizen of Los Angeles that is more imbued with the Los Angeles spirit than he is, I have yet to meet him, and I have met a good many. The truth is, with respect to army engineers, they are put where they are to do their duty, and when they are there they do their duty, and the great advantage that we have in building the Panama (anal to-day is that while we have the most eminent men at the head of that work, if they were to die to-morrow from any cause, yellow fever or pestilence of any kind suggesting immediate death to their successors, we could call upon the members of that corps immediately to furnish men who would step into their places and die if necessary in the discharge of their duty without a question. That is the kind of men we have in the army engineers, and if the lime conies under the regulations of that Depart- ment for the present lieutenant to move on and acquire the atmosphere of some other enterprising port and harbor and city, he will be followed by a man who will do his duty just as well as the presenl engineer, and you can count on it. The last speaker suggested a number of things that you would like to have from the general government. I am not a dispenser of the funds of the general government. I am its distributor, or at least those under me distribute the funds that the Congress of the United States appropriates; but living near the seat of government and having had some 344 PRESIDENTIAL ADDRESSES experience in the way that the government works and with the matters that influence the committees on rivers and harbors in both Houses, I can give you the benefit of that experience enough to prophesy a few things in regard to that harbor. I do not guarantee it. No wise man ever guaranteed what the verdict of a jury would be or what a Congress would do, but I venture to prophesy with that qualification, first, that you have got a harbor now sufficiently constructed to show that it is worthy of being improved to the uttermost; second, that you have taken the step which most of all will secure from Congress the money needed to make the harbour all that you wish it to be, and that is, you have voted to put your own money into the improvement of that harbor in order that the public may get the benefit of the wharf. The principle that has moved*. the committees in both Houses is that the Lord helps those who help themselves, and that they are most willing to put the Government's money into those enterprises in which the local communities are so intensely interested that they are willing to make large con- tributions themselves. Hence, I say without hesitation at all, that with your improvement secured, as you have secured it by a vote of bonds, there isn't any trouble about the improvement of your harbor as you desire. I say as you desire it. Our friend on the left suggested 45 feet depth. Well, that is all right, but what you will do with that extra 10 or 15 feet I do not know until you get boats that have that draft. We had to make the Panama Canal 45 feet because it was a work which was to be constructed for all time. The locks when put in there can not be changed with any reasonable expense, and therefore the law provided that the Canal should be constructed of such dimensions that it would transport or furnish the means of transporta- tion for any vessel now sailing or projected. Well, there were two or three vessels projected of 38 feet maximum loaded draft, 88 feet beam and 800 feet long, and we have put in locks that are 41 feet deep over sill, that are a thousand feet of usable length and are 110 feet wide, but that is for AND STATE PAPERS 345 the far future, because it would be most inconvenient and most expensive to change those locks, but it is easy enough to deepen a harbor like this; if you conclude that you have so many ships of 4.5 feet maximum loaded draft that you need that additional 10 feet I can prophesy that you can get it, but my impression now is if I were you I would not go for 45 feet direct. I would begin with something less. The Panama Canal is of course the greatest enterprise of a constructive character which has been entered upon for centuries. It will certainly be completed by the 1st of January 1915. We are now engaged in an excavation that equals or nearly equals three millions of cubic yards of material a month, and that would easily finish the Canal some two years before the date that I have mentioned. The uncertainty as to its completion depends upon the con- struction of the dam and the construction of the locks, and the engineers are not yet in a position to prophesy, as they could with respect to the excavation, when the whole work can be completed. What its effect will be upon the trade of the world is problematical. I do not think that we can always calculate with exactness how trade avenues are to change, but I think there are certain facts with respect to the opera- tion of the Canal upon the commerce of the world that we can make as promises. One is that its most important' function will be the trade between the east and west coast, of the United States. I low far it will affect the transcon- tinental lines of course it is difficult to say, but that it will make a radical change in the character of the merchandize carried I believe is certain. The next important change that it is going to make is in reference to the trade between this coast and Europe, and the next most important is the trade between the east coast of the United States and the west coast of South America. With respect to all other avenues of trade the Suez Canal is apt to be a competitor and the change that will be effected by a new way of getting through the continent is one that can only be known when the change has been effected and years have been given to 346 PRESIDENTIAL ADDRESSES allow that change to have all its effect. Certain it is, however, that the city of Los Angeles and the city of San Fran- cisco and the city of Seattle are the cities most to be affected by the completion of the Panama Canal, and no one can criticize, no one has the right to ridicule the effort and the great efforts that your city has made to establish a harbor for your city, so that you shall get the benefit of that great trade which the Panama Canal is certain to bring to the western coast. I do not know that the increase in the merchant marine is essential to your enjoyment of great benefits from that Canal. I do not think it is. I think if we were to go on as we are now, you still would derive immense benefit by the trade brought in here by foreign vessels and by the trade which could only be brought here by coast vessels — vessels of the United States. Nevertheless, you are on the Pacific; you are on that great ocean surrounded by the Orient on the one side, by the west coast of South America and by the west coast of North America on the other, in which the great commercial progress of the world is to be manifested for the next hundred years. And what that trade shall be is going to be largely influenced by the question of who controls the merchant marine that crosses its waters. Now, we haven't any international merchant marine. I defer to those vessels that are doing the best they can, but I mean, speaking at large, we have none and the question is, how are we going to get it? I do not know that the system of subsidy is to be the correct way of working out that prob- lem, but I do know that it is in accordance with the principle that we have followed in respect to the development of our industries — the protective system. We can not protect it in the sense of controlling foreign bottoms, and therefore, the only equivalent that we can offer is to pay those of our people who will build and operate our ships under our laws enough to equal the difference in condition between their running the ships and foreigners running foreign ships and allowing them a reasonable profit; and I for one am in AND STATE PAPERS 347 favor of trying that experiment. It is true that we will pay money into the coffers of private corporations, and it is also true that they will have to render to us a service for the money which we pay into those coffers, because it is undoubtedly true — it is shown in our South American trade — that the control by the flag of the ships that carry the trade greatly influences the trade in favor of the country that owns that flag ami owns those ships. We must not be frightened by a word — we must not be frightened by a shibboleth. You say we are going to help along a selfish private corporal ion by contribution. Well, we are, because the private corporation is the instrument by which we wish to accomplish a great public good. We do not intend to give them any more than a reasonable profit for the good they render us. There are a good many other subjects that I should like io discuss with you. As I looked at that beautiful map and followed that red eye and green eye across it, and saw where I had inflicted my views on various suffering citizens of the United Slates at points across its surface, 1 wondered how long the American people would bear it, and therefore I hesitate to take up the questions that are just as important to you as they are to any of the citizens I have had the honor to address. The truth is, 1 doubt whether in New York, in Boston, in Chicago, in any city in the country, I should have the honor and opportunity of addressing so cos- mopolitan an audience as I now face, an audience made up of the bone and sinew of the community that has builded a beautiful city in a desert; that brings its water 230 miles; that goes 20 miles for a harbor; and that expects to enlarge by the application of water to earth, drawn I do not know from where. You are a marvel. You have got two marvels in California. One in San Francisco that has arisen from its ashes, and the other is Los Angeles that is risen from the desert. There is one thing that that map has taught me as I looked at it — has only confirmed that which comes to me 348 PRESIDENTIAL ADDRESSES every time I rise to address an American audience — I don't care whether it is in a small town resurrected from the desert in Colorado, or a large city, or anywhere else — there is in the faces of those people to whom I have talked a sense of contentment, of peace, and of determination to get on and subdue the obstacles that are before them, which they welcome because they are obstacles, in order that they may show their American spirit in overcoming them, and that spirit I find everywhere. Talk about anarchists and social- ists and discontent with the situation. It may be that I do not see those people; perhaps I don't. I am not anxious to see them. But I do meet the majority of the American people and they come out to me in order to testify their interest in the government and their pride in their country and their belief that there is nothing that an American can not achieve and can not overcome. I never was so much impressed before with the idea, if I may use a stock-breeder's simile, that we are breeding to a type, that we haven't any Englishmen and we haven't any Irishmen, though there are some that tell stories that are marvellously like it, and we haven't any Germans, we haven't any French, we haven't any Italians or Mexicans, but we only have Americans. Now, an allusion was made to my predecessor's pronunci- ation of the name of your desert here. He did not come into this country through a Spanish country, or else he would have known how that name ought to be pronounced. Allu- sion has been made to the policies of my predecessor. I yield to no one in my admiration for that great man and the map he laid out for those who were to follow him. Some- times it seems as if it were pretty burdensome for those who do follow them in order to keep up with the procession, but it is a great aid to have his example before me, to have the test of the judgment of the American people which he was able to make, and to know that in following along the general lines which he laid down, the administration which follows him is following the will of the American people. CHAPTER XXXVIII ADDRESS AT GLEN WOOD MISSION INN, RIVER- SIDE, CALIFORNIA (OCTOBER 12, 1909) Mr. Governor and Bishop and Gentlemen of Southern Cali- fornia: THIS dinner has assumed a phase that I did not expect. The truth is that the honor of unveiling the tablet to the Rev. Father Serra was one that I had not antic- ipated, but which I was glad to perform, but had I known what was to come I should have prepared myself with some investigation and some knowledge of the history of the country of that interesting period in California's life when the missions began and continued down to the time that we from the East came into California. Bishop Conaty has been good enough to refer to some of our experiences in the Philippines, and that enables me to say something appropriate of the settlement by monks of Southern California. I there became aware of the great work which had been done by the missions not only of the Franciscans, but of the Jesuits, the Recolletos, the Dominicans and the Augustinians in the Philippines. I became acquainted with the Spanish character and w r as made to know its heroic side by a study of what the Spaniards had to do to accomplish what they did accomplish in the Philippine Islands in the 15th and 16th centuries. We are in the habit, we Anglo-Saxons, of looking back to our ances- tors with a smug satisfaction and thinking that no one has exactly the right to that pride of ancestry that we have, and I think it reduces our heads somewhat and gives a proper sense of proportion to become aware of the fact that there 319 350 PRESIDENTIAL ADDRESSES were others than Englishmen in the 15th and lGth and 17th centuries who were making for progress in the world and were fighting the battles of civilization under the burdens that it now seems impossible for them to bear. When you consider the voyages that were taken by the Spanish and Portuguese sailors, when you consider the hardships that were under- gone by the Spanish monks, in advancing the cause of Christian civilization, it is hard to believe the story in the Philippines. They made a people a Christian people, who were the only Christian people, and continue down to to-day to be the only Christian people, in the Orient. Now I have to-day enjoyed the privilege of seeing as much of Southern California as one man could see in twelve hours and I think it fitting that the journey should end in a build- ina- like this constructed to commemorate the missions that formed so important a part in the history of this region which we have been privileged to visit to-day. I fully sympathize with the desire to preserve as historical memorials worthy of preservation those missions and the style of architecture that those missions represent. I sympathize with the people of Riverside in desiring their government building to be erected on the mission plan. When we have any past of a picturesque character we ought not to destroy it, and Cali- fornia is one of the few States that reaches back far enough into the past to have an ancient picturesque architecture with which she can well make her present architecture accord. I have at another time and place delivered myself on the subject of foreign missions, and I am not sure that the time to-night will permit me to go into that subject. My association with the churches in the Philippines and with the Bishops of the various churches and the fortuitous preach- ins: that I have had to do as President of the United States at times makes me feel a little bit like a Bishop. But I know this and I know it from actual experience in the Orient, that the progress of modern Christian civilization is largely dependent on the earnest hard work of the Christian missions AND STATE PAPERS 351 of every denomination. The truth is, gentlemen, that where we are advancing the cause of Christian civilization it docs not help us to introduce to those whom we would convince of the benefits of Christian civilization, the persons who represent the seamy side of our civilization, and those I am sorry to say, with the exception of the missionaries, are the only persons that advance themselves into heathendom. They go there for the purpose of buying or getting from the heathen what the heathen regards as but little, and what they know to be valuable. In other words, they are there for trading purposes, and when our non-Christian friends say that in those that represent us there is a great deal of guile it docs not convince them of the disinterested character of Christian civilization. It is only through the foreign missionaries who go there pledging their lives to the cause of the advancement of Christianity that we have presented to those whom we would convince of the strength and efficacy of Christian civilization that there is in that Christian civili- zation a living spirit that they ought to embrace. Now there is another note in the Bishop's address to-night which I listened to with pleasure, and that is that in Southern California there is a broad tolerance between all denomi- nations which willingly gives credit to the representative of any one who as a man and as a Christian has done all that he could and offered himself up for the advance of the race, and I was glad to note that of those who were interested in preserving the missions in Southern California there were 90 per cent, who were not members of the Catholic Church. The truth is, gentlemen, we are making progress in Chris- tian tolerance, in the brotherhood of man and the Father- hood of God, and those who have any responsibility at all in the government of men welcome the progress of all churches as the greatest support of government and of peace on earth and good will to men. Now I want to respond to what the Governor has said with respect to California. I have valued much and appreciate greatly as an honor his company from one end of Cali- 352 PRESIDENTIAL ADDRESSES fornia to the other, and during the week that I have spent within the hospitable borders of this State I have felt deeply the welcome of all Californians. I know that welcome is sincere. I don't misconstrue it, but I know that Califor- nians are loyal to the backbone and they are glad to wel- come to the borders of their great State the representative of the Nation of which they are proud to be a part. Perhaps you are rather warmer in your welcome, perhaps you are more intense in your hospitality, because you are so far removed from Washington. If I were an every day story, if you had to see me every week, things might be different. But as it is, I am delighted to take advantage of the fact that you don't know me very well, and therefore that your welcome is entirely unqualified. But jesting aside, my dear friends, there is no experience in my life more delightful than that which I have had in California. It has been somewhat strenuous, but so life is generally strenuous if it is worth having at all, and I am glad to get out of California with the sweet and pleasant memory of this function held in such a beautiful mansion and suggestive of all the sweet romance of the early history of the State. XXXIX ADDRESS AT CITY HALL, PHOENIX, ARIZONA, (OCTOBER 13, 1909) Governor Sloan, Ladies and Gentlemen: 1AM glad to meet you. It is a new sensation for me to talk to the people of a territory, and I may say thus far it is a very pleasant sensation. In the first place, I want to commend myself, and that is by having appointed Judge Sloan your Governor. In the second place I want to congratulate you on having such a territory, such energy and such enterprise as has called forth from the Republican party a pledge that you shall have statehood, and in order to establish my relation with you early, I want to say that so far as I am concerned, I am going to help carry out that promise as far as I can. I say that as a beginning of my speech and not as its ending. Sometimes it is better to postpone the marriage and every- thing else in a novel to the end, but I always have the habit of looking through to see whether it ends all right before I beerin, and I am inclined to think that the ladies before me generally follow that course. Now, gentlemen, and ladies, for T don't know whether you are going to let the ladies vote or not, and I speak there- fore with due consideration, you are anticipating statehood, you are anxious to show what you can do as an indepen- dent government, and I am afraid you are anticipatng the pleasure of thai independence without fully understanding or realizing the responsibilities of it; and therefore if after having made this announcement I point out some of the difficulties that you are to have, you will excuse me. You have got to formulate a constitution after the Congress 353 354 PRESIDENTIAL ADDRESSES says you can come in, and I want to say a word about that constitution. In saying it I give you an earnest of the seriousness with which I say that I believe you will be made a State. A constitution is for the purpose of laying down fundamental limitations upon your legislature and your Executive. Now if you think that in the Constitutional Convention you ought to lay down all the limitations that are ordinarily included in a statute, you are going to make a great mistake. The greatest Constitution that was ever made is the Constitution of the United States; and you can go through that in a very short time. You take the last constitution that was made. It is the constitution of Okla- homa, and it is a zoological garden of cranks. I don't mean to say that it has not good ideas in it. It has. But the idea of tying down a legislature which is an experiment, so to speak, with the laws that are to be adapted to a new territory, with a long discourse imposing all sorts of limita- tions, is a mistake which you ought to profit by. I want to congratulate you on having room enough in this Territory to grow. It is about four times the size of Ohio, and Ohio is a fairly large State. Of course there is a good deal of soil out here that we would not at first sight value in Ohio, but by your energy and by the application of modern methods of agriculture you seem to be reducing it to a condition where it brings forth wonderful crops and enriches those who devote their attention to its culture. Then the Governor tells me that you have another occupa- tion — you can not call it agriculture or horticulture — I mean the hatching and raising of ostriches. I understand that this is the only State in which ostriches think it worth while to pursue race suicide, and that the result is that there is an industry, to call it by a general term, which is really profitable and which enables you to compete with South Africa. Then the alfalfa fields, the fruit and all the other products which you are able to bring forth make your future one which I need not assure you is most promising. But as I have said in the beginning, your assumption of AND STATE PAPERS 3.5.5 statehood throws upon you a responsibility that will not enable you thereafter to charge it all to the Federal Gov- ernment. When you get into difficulty out here and have bad officials you can not say the fault is all at Washington because Washington does not understand your needs. Then the fault will be on your own head. I have no doubt that you will stumble and fall as other peoples and other States have stumbled and fallen, but you are Americans, you are come of a race used to self-government, used to taking hard knocks in the school of experience and profiting by them. And if by a caution I can restrain the desire of those most progressive, or most full of the idea of having limitations on government — can restrain them from making the con- stitution other than fundamental law with simple rules of limitation, if I can halt and induce the people of this State to take time to deliberate over that instrument which is to follow them so long in the history of their State and in its growth and development, I shall not have let this morn- ing go without its profit. I thank you for the cordiality of your reception. I like to look into your eyes and see the spirit of enterprise, the spirit of welcome to the man who for the time being repre- sents the Government of the United States of which you are so proud, and your recognition of the sovereignty of your country and a desire on your part to pay respect to him who for the time being represents the dignity of the law. XL ADDRESS AT PRESCOTT, ARIZONA, (OCTOBER 13, 1909) Mr. Chairman, Mr. Mayor, Ladies and Gentlemen of Pres- cott : MY FATHER used to tell me of an old gentleman who lent his coat to another man and said to him as he went away, "Don't swear while you wear that coat." He went away and came back ofter two or three hours, and the owner of the coat asked him whether he had sworn. He said, "No, I have not sworn, but I never felt so much like lying in my life." [Here the President drank a glass of the famous Hassayampa water, handed him by the Chairman.] After that dose which your Chairman admin- istered to me, I feel like drawing the long bow more than ever on this trip. I am delighted to meet you. I am willing to admit, as I suppose you will, the truth of the statement of the Chair- man, that I have not anywhere had an audience of which this is not a peer. I see you admit it, and you haven't drunk any of that water either. I got some of the water on the way up, but I believe it was from below the crossing. I had it in a canteen, and I expect to try it on some of my party. My fellow citizens, I am glad to see you because I am glad to know that the population of Arizona, which I believe will soon become a State, is of a character to deserve it. I observe that even out of the mouths of babes and sucklings you hear the desire for statehood. I congratulate you on having such an energetic and pretty city. I have no doubt that here, as elsewhere in Arizona, as elsewhere in the new States 356 PRESIDENTIAL ADDRESSES 357 which I have had the honor to visit, there is a determina- tion on the part of each citizen in Prescott to make her popu- lation double in the next few years, to increase the wealth and prosperity and to make it known as a large place on the map. That spirit I found everywhere throughout the West. I found it subordinate, however, to the interest in the State and still more subordinate to the interest in the development of the country. All these feelings develop into an Americanism that makes a type in which every one who feels an interest in his country has a right to have great pride. Now I had the honor to address an audience at the capital of your territory this morning, and in the course of those remarks I ventured to prophesy that you would have statehood in the near future. The Republican platform upon which I had the honor to be elected promised statehood to Arizona and to New Mexico separately. I am not, however, the legislature of this government, and all I can do is to prophesy, not to promise. But from what I know, from what I have heard of the discussion, I am quite sure that the movement is proceeding, and that you may count on its success. Now then, if it is to be successful, I want to call your attention to the responsibilities that will be upon you as citizens of a State, as citizens of the country. You will have to select your own State officers, you will have to select your Representatives and Senators, but before all that you will have to make a fundamental law called your constitution, which is to govern your legislature, your law- makers and your executive thereafter, and that is a responsi- bility which is very heavy and to which I invite your careful attention. The trouble is that you are so anxious for state- hood, so determined to have it, that no matter what your constitution is, if it is presented to you, you will vote for statehood and vote for the constitution. At least that has been the experience in other territories. Therefore it behooves you to see to it that the men who frame your con- stitution are charged with the responsibility of making a good one. Now we have had constitutions made by 358 PRESIDENTIAL ADDRESSES territories coming into the Union which were voted and approved, and which did not approve themselves to those men who looked forward and understood what a consti- tution ought to be. It ought to be simple. It ought to be general. It ought to be comprehensive. It ought not to include every limitation upon the legislature that each member of that constitutional convention thinks would be wise to follow in legislation. You ought to leave some- thing to your legislature. Don't make your constitution read like a statute. Be statesmen and make it read like a fundamental law. Study the Constitution of the United States and see what the greatest instrument of fundamental law was and is, and how simple; how it has been elastic and has yielded to the demands of our increasing country, and yet is to-day the wonder of the world. Don't allow every fact or every principle, however sound, to be asserted in that constitution. Trust something to your legislature thereafter and don't bind them and yourselves in such a way that you will be struggling for twenty-five years to get away from something that was made in haste and not with the sense of deliberation that you ought to exercise in making a path intended to last for fifty or one hundred years. I am talk- ing sense, I know. You will find in your constitutional convention gentlemen who have radical progressive ideas. Many of the germs of truth ought to be carried out at least in statutes, but don't fasten yourselves down by all crankisms and by the views of people who want to make laws for a hundred years without knowing exactly what the conditions are under which those laws are to be made. I am not talk- ing just for the sake of talking. I expect that you are going to make a constitution here. I hope you will. I am going to do the best I can to help to give you the power to make it, but don't load down yourselves and your future with restrictions and limitations in your fundamental law like those which are in the Oklahoma Constitution, making it read like a long page of the statutes instead of a funda- mental instrument like some of the constitutions of the older AND STATE PAPERS 359 States and the Constitution of the United States. Our fathers builded even better than they knew, and we have not gotten in advance of them in the matter of laying down simple principles of constitutional law. We do not know more than our fathers, for in that respect they have proven what they knew by the usefulness of the Constitution of the United States. Now, my friends, as has been said, I can stay with you but a short time. You give me great courage, and give me great inspiration as I look into your eyes and see that you are deliberate men, that you are intelligent men, and that you propose to exercise your suffrage in such a way as to have a government of law, a government that respects the vested rights of property, that respects the liberty of the individual, and a government that shall reflect credit on your popula- tion. I have passed from Boston to the west coast and down the west coast, and the thought that was uppermost in my mind as I addressed all the audiences which I have seen is that we are here and have lor years been breeding to a type of men, not German, not English, not French, not Spanish, not Mexican, not Swiss, or Swedish, but a type adapted to our civilization, a type of Americans by which we can all stand. There may be discontent in this country, but if so I have not found it in any community. In every com- munity, in every hamlet that I have addressed, there is a determination to make things better, both materially, in an educational way and spiritually. All they want is an oppor- tunity and they don't ask odds of anybody. Now, that is the spirit I have found everywhere, and I am proud to be an American, and to know that such a spirit is actuating our people, because its continuance assures the greatness of our country and the making of it such that we can continue to love it with all our hearts. XLI INTERVIEW WITH PRESIDENT DIAZ OF MEXICO HELD IN THE CHAMBER OF COMMERCE BUILDING, EL PASO, TEXAS (SATURDAY, OCT. 16, 1909, 11 A. M.) THOSE present at the interview were Hon. J. M. Dickin- son, Secretary of War; Hon. Frank H. Hitchcock, Post- master General; the Governor of Texas and other State officials; Captain Archibald W. Butt, U. S. A., the President's Military Aide; Mr. John Hays Hammond; Dr. J. J. Richardson; and Mr. Wendell W. Mischler and Mr. Charles C. Wagner, the President's assistant secretaries. The President of Mexico was accompanied by General Manuel Gonzales Cosio, Minister of War; Hon. Olegario Molina, Minister Fomento (Industry, Colonization, Mines and Agriculture) ; Governor Creel of the State of Chihuahua (formerly Ambassador to the United States); Colonel Pablos Escandon, Chief of the Military Staff of President Diaz; and Ignacio de la Barra, Private Secretary to Presi- dent Diaz. President Tap: I am very glad to welcome you here, sir; I am very glad indeed. President Diaz: I am very happy to meet you and to have the honor of being one of the first foreigners to come over to give you a hearty welcome. President Taft: It gives me not only great pleasure to welcome the President of the great Republic of Mexico, but to welcome the present President of the Republic of Mexico, who has made it so great. President Diaz: I am very proud to grasp the hand of 360 PRESIDENTIAL ADDRESSES 3G1 the great statesman who lias made such a record in his life — in the Philippines, in Cuba, and, at present, as the head of the great nation of the United States. President Toft: I wish to express to you my belief that this meeting is looked upon by both peoples with a great deal of interest not as making stronger but as typifying the Strength of the bond between the two countries. President Diaz: .My friendly relations and my personal acquaintance with yon will make thousands and thousands of friends of tin 1 American and Mexican people, and streams and wonders of beneficial development will have to follow for the good of the countries. President Taff: You have already met the Secretary of War and the Governor of Texas. I shall be glad to have the privilege of presenting to you the Postmaster General. [The Postmaster General was then presented to President Diaz.] President Taft: I should be glad to have the privilege of meeting your stall'. [The Minister of War, General Manuel Gonzales Cosio, was thereupon presented to President Taft.] President Taff: [addressing the Minister of War]: I have been Minister of War, and therefore I have a sympathy with you. The Minister of War: You have been an excellent Min- ister of War and I have a good example in you. President Taff; I should be very glad to have the pleasure of taking you and Governor Creel, who interprets so well and who is my personal friend, into an adjoining room for just a i'vw moments. [Thereupon President Taft, President Diaz, and Gover- nor Creel retired to an adjoining room for a private inter- view, which lasted about fifteen minutes.] INTERVIEW WITH PRESIDENT DIAZ OF MEXICO IN THE FEDERAL CUSTOM HOUSE IN JUAREZ, MEXICO (SATURDAY, OCT. 16, 1909, 12.20 NOON) THOSE present at the interview were Governor Creel of the State of Chihuahua (formerly Ambassador to the United States); General Manuel Gonzales Cosio, Minister of War; Hon. Olegario Molina, Minister Fomento (Industry, Colonization, Mines and Agriculture); ColoneJ Pablos Escandon, Chief of the Military Staff of President Diaz; and Ignacio de la Barra, Private Secretary to President Diaz. President Taft was accompanied by Hon. J. M. Dick- inson, Secretary of War; Hon. Frank H. Hitchcock, Post- master General; the Governor of Texas and other State officials; Captain Archibald W. Butt, U. S. A., the President's Military Aide; Mr. John Hays Hammond; Dr. J. J. Richardson; and Mr. Wendell W. Mischler and Mr. Charles C. Wagner, the President's assistant secretaries. President Diaz: Your excellency, the Mexican people and I feel very proud indeed to have you on Mexican soil. I believe that the personal acquaintance which I have made with you and the friendly feelings which already exist between the United States and Mexico will be a guarantee of the continuance of the friendly, cordial and strong relations between the people of the two countries, and that success and prosperity will follow. President Taft: This is the first time, so far as I know, that a President of the United States has stepped beyond 362 PRESIDENTIAL ADDRESSES 303 the border of the United States, either on the north or on the south, and I esteem it a great privilege to be the Presi- dent at the time when that event has happened. I hope that it is significant of the tightening of the bond between the two countries. Railroads and other means of communi- cation, like the telegraph, have brought us closer to each other, so that the City of Mexico and the City of Washington are far nearer to-day than they ever were before, and that means a closer union of feeling between the two peoples, a closer feeling between those responsible for the Govern- ment of each country, and I esteem it the greatest honor of my life to have the privilege of representing the United States in such a significant ceremony. President f)i. in which the following powers participated: (he United Stales, Austria-Hungary, France. Germany, Great Britain, Italy. Japan, the Nether- lands, Russia, and Spain. The conference resulted in the Declaration of London, unanimously agreed to and signed by the participating powers, concerning among other matters the highly important subjects of blockade, contraband, the destruction of neutral prizes, and continuous voyages. 450 PRESIDENTIAL ADDRESSES The Declaration of London is an eminently satisfactory codification of the international maritime law, and it is hoped that its reasonableness and fairness will secure its general adoption, as well as remove one of the difficulties standing in the way of the establishment of an International Prize Court. Under the authority given in the sundry civil appropriation act, approved March 4, 1909, the United States was repre- sented at the International Conference on Maritime Law at Brussels. The conference met on the 28th of September last and resulted in the signature ad referendum of a conven- tion for the unification of certain regulations with regard to maritime assistance and salvage and a convention for the unification of certain rules with regard to collisions at sea. Two new projects of conventions which have not heretofore been considered in a diplomatic conference, namely, one concerning the limitation of the responsibility of shipowners, and the other concerning marine mortgages and privileges, have been submitted by the conference to the different governments. The conference adjourned to meet again on April 11, 1910. The international conference for the purpose of promoting uniform legislation concerning letters of exchange, which was called by the Government of the Netherlands to meet at The Hague in September, 1909, has been postponed to meet at that capital in June, 1910. The United States will be appropriately represented in this Conference under the provision therefor already made by Congress. The cordial invitation of Belgium to be represented by a fitting display of American progress in the useful arts and inventions at the World's Fair to be held at Brussels in 1910 remains to be acted upon by the Congress. Mindful of the advantages to accrue to our artisans and producers in competition with their Continental rivals, I renew the recommendation heretofore made that provision be made for acceptance of the invitation and adequate representation in the Exposition. AND STATE PAPERS 451 The question arising out of the Belgian annexation of the Independent State of the Congo, which has so long and earnestly preoccupied the attention of this Government and enlisted the sympathy of our best citizens, is still open, but in a more hopeful stage. This Government was among the foremost in the great work of uplifting the uncivilized regions of Africa and urging the extension of the benefits of civilization, education, and fruitful open commerce to that vast domain, and is a party to treaty engagements of all the interested powers designed to carry out that great duty to humanity. The way to better the original and adventitious conditions, so burdensome to the natives and so destructive to their development, has been pointed out, by observation and experience, not alone of American representatives, but by cumulative evidence from all quarters and by the investigations of Belgian agents. The announced pro- grams of reforms, striking at many of the evils known to exist, are an augury of better things. The attitude of the United States is one of benevolent encouragement, coupled with a hopeful trust thai the good work, responsibly under- taken and zealously perfected to the accomplishment of the results so ardently desired, will soon justify the wisdom that inspires them and satisfy the demands of humane sentiment throughout the world. A convention between the United States and Germany, under which the non-working provisions of the German patent law are made inapplicable to the patents of American citizens, was concluded on Febuary ^.'5, 1909, and is now in force. Negotiations for similar conventions looking to the placing of American inventors on the same footing as nationals have recently been initiated with other European governments whose laws require the local working of foreign patents. Under an appropriation made at the last session of the Congress, a commission was sent on American cruisers to Monrovia to investigate the interests of the United States and its citizens in Liberia. Upon its arrival at Monrovia, 452 PRESIDENTIAL ADDRESSES the commission was enthusiastically received, and during its stay in Liberia was everywhere met with the heartiest expressions of good-will for the American Government and people, and the hope was repeatedly expressed on all sides that this Government might see its way clear to do something to relieve the critical position of the Republic arising in a measure from external as well as internal and financial embarrassments. The Liberian Government afforded every facility to the commission for ascertaining the true state of affairs. The commission also had conferences with representative citizens, interested foreigners and the representatives of foreign governments in Monrovia. Visits were made to various parts of the Republic and to the neighboring British colony of Sierra Leone, where the commission was received by and conferred with the Governor. It will be remembered that the interest of the United States in the Republic of Liberia springs from the historical fact of the foundation of the Republic by the colonization of American citizens of the African race. In an early treaty with Liberia there is a provision under which the United States may be called upon for advice or assistance. Pursuant to this provision and in the spirit of the moral relationship of the United States to Liberia, that Republic last year asked this Government to lend assistance in the solution of certain of their national problems, and hence the commission was sent. The report of our commissioners has just been completed and is now under examination by the Department of State. It is hoped that there may result some helpful measures, in which case it may be my duty again to invite your attention to this subject. The Norwegian Government, by a note addressed on January 26, 1909, to the Department of State, conveyed an invitation to the Government of the United States to take part in a conference which it is understood will be held in February or March, 1910, for the purpose of devising AND STATE PAPERS 453 means to remedy existing conditions in the Spitzbergen Islands. This invitation was conveyed under the reservation that the question of altering the status of the islands as countries belonging to no particular state, and as equally open to the citizens and subjects of all states, should not be raised. The European powers invited to this Conference by the Government of Norway were Belgium, Denmark, France, Germany, Great Britain, Russia, Sweden, and the Nether- lands. The Department of State, in view of proofs filed with it in 1906, showing the American possession, occupation and work- ing of certain coal-bearing lands in Spitzbergen, accepted the invitation under the reservation above stated, and under the further reservation that all interests in those islands already vested should be protected and that there should be equality of opportunity for the future. It was further pointed out that membership in the conference on the part of the United States was qualified b\ the consideration that this Government would not become a signatory to any conven- tional arrangement concluded by the European members of the conference which would imply contributory participa- tion by the United Slates in any obligation or responsibility for the enforcement of any scheme of administration which might lie devised by the conference for the islands. THE NEAR EAST His Majesty, Mehmed V., Sultan of Turkey, recently sent to this country a special embassy to announce his accession. The quick transition of the Government of the Ottoman Empire from one of retrograde tendencies to a constitutional government with a parliament and with progressive modern policies of reform and public improvement is one of the important phenomena of our times. Constitutional govern- ment seems also to have made further advance in Persia. These events have turned the eyes of the world upon the Near East. In that quarter the prestige of the United States 454 PRESIDENTIAL ADDRESSES has spread widely through the peaceful influence of American schools, universities, and missionaries. There is every reason why we should obtain a greater share of the commerce of the Near East since the conditions are more favorable now than ever before. LATIN AMERICA One of the happiest events in recent Pan-American diplomacy was the pacific, independent settlement by the governments of Bolivia and Peru of a boundary difference between them, which for some weeks threatened to cause war and even to entrain embitterments affecting other republics less directly concerned. From various quarters, directly or indirectly concerned, the intermediation of the United States was sought to assist in a solution of the con- troversy. Desiring at all times to abstain from any undue mingling in the affairs of sister republics and having faith in the ability of the governments of Peru and Bolivia themselves to settle their differences in a manner satisfac- tory to themselves which, viewed with magnanimity, would assuage all embittcrment, this Government steadily abstained from being drawn into the controversy and was much gratified to find its confidence justified by events. On the 9th of July next there will open at Buenos Ayres the Fourth Pan-American Conference. This conference will have a special meaning to the hearts of all Americans, because around its date are clustered the anniversaries of the independence of so many of the American republics. It is not necessary for me to remind the Congress of the political, social, and commercial importance of these gather- ings. You are asked to make liberal appropriation for our participation. If this be granted, it is my purpose to appoint a distinguished and representative delegation, qualified fittingly to represent this country and to deal with the problems of intercontinental interest which will there be discussed. The Argentine Republic will also hold from May to AND STATE PAPERS 455 November, 1910, at Buenos Ayres, a great International Agricultural Exhibition in which the United States has been invited to participate. Considering the rapid growth of the trade in the United States with the Argentine Republic and the cordial relations existing between the two nations, to- gether with the fact that it provides an opportunity to show deference to a sister republic on the occasion of the celebra- tion of its national independence, the proper Departments of this Government are taking steps to apprise the interests concerned of the opportunity afforded by this exhibition, in which appropriate participation by this country is so desirable. The designation of an official representative is also receiving consideration. To-day, more than ever before. American capital is seeking investment in foreign countries, and American products are more and more generally seeking foreign markets. As a consequence, in all countries there are American citizens and American interests to be protected, on occasion, by their Government. These movements of men, of capital, and of commodities bring peoples and governments closer together and so form bonds of peace and mutual dependency, as they musl also naturally sometimes make passing points of friction. The resultant situation inevitably imposes upon this Govern- ment vastly increased responsibilities. This Administration, through the Department of State and the foreign service is lending all proper support to legitimate and beneficial American enterprises in foreign countries, the degree of such support being measured by the national advantages to be expected. A citizen himself can not by contract or otherwise divest himself of the right, nor can this Govern- ment escape the obligation, of his protection in his personal and property rights when these are unjustly infringed in a foreign country. To avoid ceaseless vexations it is proper that in considering whether American enterprise should be encouraged or supported in a particular country, the Govern- ment should give full weight not only to the national as opposed to the individual benefits to accrue, but also to 456 PRESIDENTIAL ADDRESSES the fact whether or not the Government of the country in question in its administration and in its diplomacy faithful to the principles of moderation, equity, and justice upon which alone depend international credit, in diplomacy as well as in finance. The Pan-American policy of this Government has long been fixed in its principles and remains unchanged. With the changed circumstances of the United States and of the republics to the south of us, most of which have great natural resources, stable government, and progressive ideals, the apprehension which gave rise to the Monroe Doctrine may be said to have nearly disappeared, and neither the doctrine as it exists nor any other doctrine of American policy should be permitted to operate for the perpetuation of irresponsible government, the escape of just obligations, or the insidious allegation of dominating ambitions on the part of the United States. Beside the fundamental doctrines of our Pan-American policy there have grown up a realization of political interests, community of institutions and ideals, and a flourishing commerce. All these bonds will be greatly strengthened as time goes on and increased facilities, such as the great bank soon to be established in Latin America, supply the means for building up the colossal intercontinental commerce of the future. My meeting with President Diaz and the greeting exchanged on both American and Mexican soil served, I hope, to signalize the close and cordial relations which so well bind together this republic and the great republic immediately to the south, between which there is so vast a network of material interests. I am happy to say that all but one of the cases which for so long vexed our relations with Venezuela have been settled within the past few months and that, under the enlightened regime now directing the Government of Venezuela, pro- vision has been made for arbitration of the remaining case before The Hague Tribunal. AND STATE PAPERS 457 On July 30, 1909, the Government of Panama agreed, after considerable negotiation, to indemnify the relatives of the American officers and sailors who were brutally treated, one of them having, indeed, been killed by the Panaman police this year. The sincere desire of the Government of Panama to do away with a situation where such an accident could occur is manifest in the recent request in compliance with which this Government has lent the services of an officer of the Army to be employed by the Government of Panama as Instructor of Police. The sanitary improvements and public works undertaken in Cuba prior to the present administration of that Govern- ment, in the success of which the United States is interested under the treaty, are reported to be making good progress; and since the Congress provided for the continuance of the reciprocal commercial arrangement between Cuba and the United Slates assurance has been received that no negotia- tions injuriously affecting the situation will be undertaken without consultation. The collection of the customs of the Dominican Republic through the general receiver of customs appointed by the President of the United States in accordance with the con- vention of February 8, 1907, has proceeded in an uneventful and satisfactory manner. The customs receipts have decreased owing to disturbed political and economic con- ditions and to a very natural curtailment of imports in view of the anticipated revision of the Dominican tariff schedule. The payments to the fiscal agency fund for the service of the bonded debt of the republic, as provided by the convention, have been regularly and promptly made, and satisfactory progress has been made in carrying out the provisions of the convention looking toward the completion of the adjustment of the debt and the acquirement by the Dominican Govern- ment of certain concessions and monopolies which have been a burden to the commerce of the country. In short, the receivership has demonstrated its ability, even under unfa- 458 PRESIDENTIAL ADDRESSES vorable economic and political conditions, to do the work for which it was intended. This Government was obliged to intervene diplomatically to bring: about arbitration or settlement of the claim of the Emery Company against Nicaragua, which it had long before been agreed should be arbitrated. A settlement of this troublesome case was reached by the signature of a protocol on September 18, 1909. Many years ago diplomatic intervention became necessary to the protection of the interests in the American claim of Alsop & Company against the Government of Chile. The Government of Chile had frequently admitted obligation in the case and had promised this Government to settle it. There had been two abortive attempts to do so through arbitral commissions, which failed through lack of jurisdic- tion. Now, happily, as the result of the recent diplomatic negotiations, the Governments of the United States and of Chile, actuated by the sincere desire to free from any strain those cordial and friendly relations upon which both set such store, have agreed by a protocol to submit the con- troversy to definitive settlement by His Britannic Majesty Edward VII. Since the Washington Conventions of 1907 were com- municated to the Government of the United States as a consulting and advising party, this Government has been almost continuously called upon by one or another, and in turn by all of the five Central American Republics, to exert itself for the maintenance of the conventions. Nearly every complaint has been against the Zelaya Government of Nic- aragua, which has kept Central America in constant tension or turmoil. The responses made to the representations of Central American Republics, as viewed from the United States on account of its relation to the Washington Con- ventions, have been at all times conservative and have avoided so far as possible any semblance of interference, although AND STATE PAPERS 459 it is very apparent that the considerations of geographic proximity to the Canal Zone and of the very substantia] American interests in Central America give to the United States a special position in the zone of these republics and the Caribbean Sea. I need not rehearse here the patient efforts of this Govern- ment to promote peace and welfare among these republics, efforts which are fully appreciated by the majority of them who are loyal to their true interests. It would be no less unnecessary to rehearse here the sad tale of unspeakable barbarities and oppression alleged to have been committed by the Zelaya Government. Recently two Americans were put to death by order of President Zelaya himself. They were reported to have been regularly commissioned officers in the organized forces of a revolution which had continued many weeks and was in control of about half of the republic, and as such, according to the modern enlightened practice of civilized nations, they were entitled to be dealt with as prisoners of war. At the dale when this message is printed this Government has terminated diplomatic relations with the Zelaya Govern- ment, for reasons made public in a communication to the former Nicaraguan charge d'affaires, and is intending to take such future steps as may be found most consistent with its dignity, its duty to American interests, and its moral obliga- tions to Central America and to civilization. It may later be necessary for me l<> bring this subject to the attention of the Congros in a special message. The International Bureau of American Republics has carried on an important and increasing work during the last year. In the exercise of its peculiar functions as an inter- national agency, maintained by all the American Republics for the development of Pan-American commerce and friend- ship, il has accomplished a great practical good which could be done in the same way by no individual department or bureau of one government, and is therefore deserving of your liberal support. The fact that it is about to enter a new 400 PRESIDENTIAL ADDRESSES building, erected through the munificence of an American philanthropist and the contributions of all the American nations, where both its efficiency of administration and expense of maintenance will naturally be much augmented, further entitles it to special consideration. THE FAR EAST In the Far East this Government preserves unchanged its policy of supporting the principle of equality of opportunity and scrupulous respect for the integrity of the Chinese Empire, to which policy are pledged the interested powers of both East and West. By the Treaty of 1903 China has undertaken the abolition of likin with a moderate and proportionate raising of the customs tariff along with currency reform. These reforms being of manifest advantage to foreign commerce as well as to the interests of China, this Government is endeavoring to facilitate these measures and the needful acquiescence of the treaty powers. When it appeared that Chinese likin revenues were to be hypothecated to foreign bankers in connection with a great railway project, it was obvious that the governments whose nationals held this loan would have a certain direct interest in the question of the carrying out by China of the reforms in question. Because this railroad loan represented a practical and real application of the "open door" policy through co- operation with China by interested powers as well as because of its relations to the reforms referred to above, the Administration deemed American participation to be of great national interest. Happily, when it was as a matter of broad policy urgent that this opportunity should not be lost, the indispensable instrumentality presented itself when a group of American bankers, of international reputa- tion and great resources, agreed at once to share in the loan upon precisely such terms as this Government should approve. The chief of those terms was that American railway material should be upon an exact equality with that of the other AND STATE PAPERS 461 nationals joining in the loan in the placing of orders for this whole railroad system. After months of negotiation the equal participation of Americans seems at last assured. It is gratifying that Americans will thus take their share in this extension of these great highways of trade, and to believe that such activities will give a real impetus to our commerce and will prove a practical corollary to our historic policy in the Far East. The Imperial Chinese Government in pursuance of its decision to devote funds from the portion of the indemnity remitted by the United States to the sending of students to this country has already completed arrangements for carrying out this purpose, and a considerable body of students have arrived to take up their work in our schools and univer- sities. No one can doubt the happy effect that the associa- tions formed by these representative young men will have when they return to take up their work in the progressive development of their country. The results of the Opium Conference held at Shanghai last spring at the invitation of the United States have been laid before the Government. The report shows that China is making remarkable progress and admirable efforts toward the eradication of the opium evil and that the governments concerned have not allowed their commercial interests to interfere with a helpful cooperation in this reform. Collateral investigations of the opium question in this country lead me to recommend that the manufacture, sale, and use of opium and its derivatives in the United States should be so far as possible more rigorously controlled by legislation. In one of the Chinese-Japanese Conventions of September 4 of this year there was a provision which caused considerable publie apprehension in that upon its face it was believed in some quarters to seek to establish a monopoly of mining privileges along the South Manchurian and Antung-Mukden Railroads, and thus to exclude Americans from a wide field of enterprise, to take part in which they were by treaty with China entitled. After a thorough examination of the 462 PRESIDENTIAL ADDRESSES Conventions and of the several contextual documents, the Secretary of State reached the conclusion that no such monopoly was intended or accomplished. However, in view of the widespread discussion of this question, to confirm the view it had reached, this Government made inquiry of the Imperial Chinese and Japanese governments and received from each official assurance that the provision had no purpose inconsistent with the policy of equality of opportu- nity to which the signatories, in common with the United States, are pledged. Our traditional relations with the Japanese Empire con- tinue cordial as usual. As the representative of Japan, His Imperial Highness Prince Kuni visited the Hudson- Fulton Celebration. The recent visit of a delegation of prominent business men as guests of the chambers of com- merce of the Pacific Slope, whose representatives had been so agreeably received in Japan, will doubtless contribute to the growing trade across the Pacific, as well as to that mutual understanding which leads to mutual appreciation. The arrangement of 1908 for a cooperative control of the coming of laborers to the United States has proved to work satisfac- torily. The matter of a revision of the existing treaty between the United States and Japan which is terminable in 1912 is already receiving the study of both countries. The Department of State is considering the revision in whole or in part, of the existing treaty with Siam, which was concluded in 1856 and is now, in respect to many of its provisions, out-of-date. THE DEPARTMENT OF STATE I earnestly recommend to the favorable action of the Congress the estimates submitted by the Department of State and most especially the legislation suggested in the Secretary of State's letter of this date whereby it will be possible to develop and make permanent the reorganization of the Department upon modern lines in a manner to make it a thoroughly efficient instrument in the furtherance of our AND STATE PAPERS 4G3 foreign trade and of American interests abroad. The plan to have Divisions of Latin-American and Far Eastern Affairs and to institute a certain specialization in business with Europe and the Near East will at once commend itself. These politico-geographical divisions and the detail from the Diplomatic or Consular Service to the Department of a num- ber of men, who bring to the study of complicated problems in different parts of the world practical knowledge recently gained on the spot, clearly is of the greatest advantage to the Secretary of State in foreseeing conditions likely to arise and in conducting the great variety of correspondence and negotiation. It should be remembered that such facilities exist in the foreign offices of all the leading commercial nations and that to deny them to the Secretary of State would be to place this Government at a great disadvantage in the rivalry of commercial competition. The Consular Service has been greatly improved under the law of April 5, 1900, and the Executive Order of June 27, 1906, and I commend to your consideration the question of embodying in a statute the principles of the present executive order upon which the efficiency of our Consular Service is wholly dependent. In modern times political and commercial interests are interrelated, and in the negotiation of commercial treaties, conventions, and tariff agreements the keeping open of opportunities and the proper support of American enter- prises, our Diplomatic Service is quite as important as the Consular Service to the business interests of the country. Impressed with this idea and convinced that selection after rigorous examination, promotion for merit solely and the experience only to be gained through the continuity of an organized service are indispensable to a high degree of effi- ciency in the Diplomatic Service, I have signed an executive order as the first step toward this very desirable result. Its effect should be to place all secretaries in the Diplomatic Service in much the same position as consular officers are now placed and to tend to the promotion of the most 464 PRESIDENTIAL ADDRESSES efficient to the grade of minister, generally leaving for outside appointment such posts of the grade of ambassador or minister as it may be expedient to fill from without the service. It is proposed also to continue the practice instituted last summer of giving to all newly appointed secretaries at least one month's thorough training in the Department of State before they proceed to their posts. This has been done for some time in regard to the Consular Service with excellent results. Under a provision of the act of August 5, 1909, I have appointed three officials to assist the officers of the Govern- ment in collecting information necessary to a wise adminis- tration of the tariff act of August 5, 1909. As to questions of customs administration they are cooperating with the officials of the Treasury Department and as to matters of the needs and the exigencies of our manufacturers and exporters, with the Department of Commerce and Labor, in its relation to the domestic aspect of the subject of foreign commerce. In the study of foreign tariff treatment they will assist the Bureau of Trade Relations of the Department of State. It is hoped thus to coordinate and bring to bear upon this most important subject all the agencies of the Government which can contribute anything to its efficient handling. As a consequence of Section 2 of the tariff act of August 5, 1909, it becomes the duty of the Secretary of State to con- duct as diplomatic business all the negotiations necessary to place him in a position to advise me as to whether or not a particular country unduly discriminates against the United States in the sense of the statute referred to. The great scope and complexity of this work, as well as the obligation to lend all proper aid to our expanding commerce, is met by the expansion of the Bureau of Trade Relations as set forth in the estimates for the Department of State. I have thus in some detail described the important trans- actions of the State Department since the beginning of this Administration for the reason that there is no provision AND STATE PAPERS 465 either by statute or custom for a formal report by the Sec- retary of State to the President or to Congress and a Presi- dential message is the only means by which the condition of our foreign relations is brought to the attention of Congress and the public. OTHER DEPARTMENTS In dealing with the affairs of the other Departments, the heads of which all submit annual reports, I shall touch only those matters that seem to me to call for special mention on my part without minimizing in any way the recommenda- tions made by them for legislation affecting their respective Departments, in all of which I wish to express my general concurrence. GOVERNMENT EXPENDITURES AND REVENUES Perhaps the most important question presented to this Administration is that of economy in expenditures and sufficiency <>f revenue. The deficit of the last fiscal year, and the certain deficit of the current year, prompted Congress to throw a greater responsibility on the Executive and the Secretary of the Treasury than had heretofore been declared by statute This declaration imposes upon the Secretary of the Treasury the duly of assembling all the estimates of the Executive Departments, bureaus, and offices, of the expenditures necessary in the ensuing fiscal year, and of making an estimate of the revenues of the Government for the same period; and if a probable deficit is thus shown, it is made the duty of the President to recommend the method by which such deficit can be met. The reporl of the Secretary shows that the ordinary expenditures for the current fiscal year ending June 30, 1910, will exceed the estimated receipts by $34,075,620. If to this deficit is added the sum to be disbursed for the Panama Canal, amounting to $38,000,000, and $1,000,000 to be paid on the public debt, the deficit of ordinary receipts and expenditures will be increased to a total deficit of $73,075,620. 466 PRESIDENTIAL ADDRESSES This deficit the Secretary proposes to meet by the proceeds of bonds issued to pay the cost of constructing the Panama Canal. I approve this proposal. The policy of paying for the construction of the Panama Canal, not out of current revenue, but by bond issues, was adopted in the Spooner Act of 1902, and there seems to be no good reason for departing from the principle by which a part at least of the burden of the cost of the canal shall fall upon our posterity who are to enjoy it; and there is all the more reason for this view because, to date, the actual cost of the canal, which is now half done and which will be completed January 1, 1915, shows that the cost of engineering and construction will be $297,766,000, instead of $139,705,200 as originally estimated. In addition to engineering and construction, the other expenses, including sanitation and government, and the amount paid for the properties, the franchise, and the privilege of building the canal, increase the cost by $75,435,000, to a total of $375,201,000. The increase in the cost of engineering and construction is due to a substantial enlargement of the plan of construction by widening the canal 100 feet in the Culebra cut and by increas- ing the dimensions of the locks, to the underestimate of the quantity of the work to be done under the original plan, and to an underestimate of the cost of labor and materials both of which have greatly enhanced in price since the original estimate was made. In order to avoid a deficit for the ensuing fiscal year, I directed the heads of Departments in the preparation of their estimates to make them as low as possible consistent with imperative governmental necessity. The result has been, as I am advised by the Secretary of the Treasury, that the estimates for the expenses of the Government for the next fiscal year ending June 30, 1911, are less than the appro- priations for this current fiscal year by $42,818,000. So far as the Secretary of the Treasury is able to form a judgment as to future income, and compare it with the expenditures for the next fiscal year ending June 30, 1911, AND STATE PAPERS 467 and excluding payments on account of the Panama Canal, which will doubtless be taken up by bonds, there will be a surplus of $35,931,000. In the present estimates the needs of the Departments and of the Government have been cut to the quick, so to speak, and any assumption on the part of Congress, so often made in times past, that the estimates have been prepared with the expectation that they may be reduced, will result in seriously hampering proper administration. The Secretary of the Treasury points out what should be carefully noted in respect to this reduction in govern- mental expenses for the next fiscal year, that the economies are of two kinds — first, there is a saving in the permanent admin- istration of the Departments, bureaus, and offices of the Government; and, second, there is a present reduction in expenses by a postponement of projects and improvements that ultimately will have to be carried out, but which are now delayed with the hope that additional revenue in the future will permit their execution without producing a deficit. It has been impossible in the preparation of estimates greatly to reduce the cost of permanent administration. This "can not be done without a thorough reorganization of bureaus, offices, and departments. For the purpose of securing information which may enable the executive and legislative branches to unite in a plan for the permanent reduction of the cost of governmental administration, the Treasury Department has instituted an investigation by one of the most skilled expert accountants in the United States. The result of his work in two or three bureaus, which, if extended to the entire Government, must occupy two or more years, has been to show much room for improvement and opportunity for substantial reductions in the cost and increased efficiency of administration. The object of the investigation is to devise means to increase the average efficiency of each employee. There is great room for improvement toward this end, not only by the reorgan- ization of bureaus and departments and in the avoidance 468 PRESIDENTIAL ADDRESSES of duplication, but also in the treatment of the individual employee. Under the present system it constantly happens that two employees receive the same salary when the work of one is far more difficult and important and exacting than that of the other. Superior ability is not rewarded or encouraged. As the clarsification is now entirely by salary, an employee often rises to the highest class while doing the easiest work, for which alone, he may be fitted. An investigation ordered by my predecessor resulted in the recommendation that the civil service be reclassified according to the kind of work, so that the work requiring most application and knowledge and ability shall receive most compensation. I believe such a change would be fairer to the whole force and would permanently improve the personnel of the service. More than this, every reform directed toward the improve- ment in the average efficiency of government employees must depend on the ability of the Executive to eliminate from the government service those who are inefficient from any cause, and as the degree of efficiency in all the Departments is much lessened by the retention of old employees who have outlived their energy and usefulness, it is indispensable to any proper system of economy that provision be made so that their separation from the service shall be easy and inevitable. It is impossible to make such provision unless there is adopted a plan of civil pensions. Most of the great industrial organizations, and many of the well-conducted railways of this country, are coming to the conclusion that a system of pensions for old employees, and the substitution therefor of younger and more energetic servants promotes both economy and efficiency of admin- istration. I am aware that there is a strong feeling in both Houses of Congress, and possibly in the country, against the estab- lishment of civil pensions, and that this has naturally grown out of the heavy burden of military pensions, which it has always been the policy of our Government to assume; but AND STATE PAPERS 469 I am strongly convinced that no other practical solution of the difficulties presented by the superannuation of civil servants can be found than that of a system of civil pensions. The business and expenditures of the Government have expanded enormously since the Spanish War, but as the rev- enues have increased in nearly the same proportion as the expenditures until recently, the attention of the public, and of those responsible for the Government, has not been fastened upon the question of reducing the cost of adminis- tration. We can not, in view of the advancing prices of living, hope to save money by a reduction in the standard of salaries paid. Indeed, if any change is made in that regard, an increase rather than a decrease will be necessary; and the only means of economy will be in reducing the number of employees and in obtaining a greater average of efficiency from those retained in the service. Close investigation and study needed to make definite recommendations in this regard will consume at least two years. I note with much satisfaction the organization in the Senate of a Committee on Public Expenditures, charged with the duly of conducting such an investigation, and I tender to that Committee all the assistance which the executive branch of the Government can possibly render. FRAUDS IN THE COLLECTION OF CUSTOMS I regret to refer to the fact of the discovery of extensive frauds in the collection of the customs revenue at New York City, in which a number of the subordinate employees in the weighing and other departments were directly concerned, and in which the beneficiaries were the American Sugar Refining Company and others. The frauds consisted in the payment of duty on underweights of sugar. The Govern- ment has recovered from the American Sugar Refining Company all that it is shown to have been defrauded of. The sum was received in full of the amount due, which might have been recovered by civil suit against the beneficiary of the fraud, but there was an express reservation in the 470 PRESIDENTIAL ADDRESSES contract of settlement by which the settlement should hot interfere with, or prevent the criminal prosecution of every one who was found to be subject to the same. Criminal prosecutions are now proceeding against a number of the Government officers. The Treasury Depart- ment and the Department of Justice are exerting every effort to discover all the wrongdoers, including the officers and employees of the companies who may have been privy to the fraud. It would seem to me that an investigation of the frauds by Congress at present, pending the probing by the Treasury Department and the Department of Justice, as proposed, might by giving immunity and otherwise prove an embarrassment in securing conviction of the guilty parties. MAXIMUM AND MINIMUM CLAUSE IN TARIFF ACT Two features of the new tariff act call for special reference. By virtue of the clause known as the "Maximum and Minimum" clause, it is the duty of the Executive to consider the laws and practices of other countries with reference to the importation into those countries of the products and merchandise of the United States, and if the Executive finds such laws and practices not to be unduly discriminatory against the United States, the minimum duties provided in the bill are to go into force. Unless the President makes such a finding, then the maximum duties provided in the bill, that is, an increase of twenty-five per cent, ad valorem over the minimum duties, are to be in force. Fear has been expressed that this power conferred and duty imposed on the Executive is likely to lead to a tariff war. I beg to express the hope and belief that no such result need be anticipated. The discretion granted to the Executive by the term "unduly discriminatory" is wide. In order that the maxi- mum duty shall be charged against the imports from a country not only discriminations in its laws or the practice under them against the trade of the United States, but that the AND STATE PAPERS 471 discriminations found shall be undue; that is, without good and fair reason. I conceive that this power was reposed in the President with the hope that the maximum duties might never be applied in any case, but that the power to apply them would enable the President and the State Department through friendly negotiation to secure the elimination from the laws and the practice under them of any foreign country of that which is unduly discriminatory. No one is seeking a tariff war or a condition in which the spirit of retaliation shall be aroused. uses of Tin; new tariff board The new tariff law enables me to appoint a tariff board to assist me in connection with the Department of State in the administration of the maximum and minimum clause of the acl and also to assist officers of the Government in the administration of the entire law. An examination of the law and an understanding of the nature of the facts which should be considered in discharging the functions imposed upon the Executive show that I have the power to direct the tariff board to make a comprehensive glossary and encyclopedia of the terms used and articles embraced in the tariff law, and to secure information as to the cost of production of such goods in this country and the cost of their production in foreign countries. I have therefore appointed a tariff board consisting of three members and have directed them to perform all I he duties above described. This work will perhaps take two or three years, and I ask from Con- gress a continuing annual appropriation equal to that already made for its prosecution. I believe that the work of this board will be of prime utility and importance whenever Congress shall deem it wise again to readjust the customs duties. If the facts secured by the tariff board are of such a character as to show generally that the rates of duties imposed by the present tariff law are excessive under the principles of protection as described in the platform of the successful party at the late election, I shall not hesitate to 472 PRESIDENTIAL ADDRESSES invite the attention of Congress to this fact and to the neces- sity for action predicated thereon. Nothing, however, halts business and interferes with the course of prosperity so much as the threatened revision of the tariff, and until the facts are at hand, after careful and deliberate investigation, upon which such revision can properly be undertaken, it seems to me unwise to attempt it. The amount of misinformation that creeps into arguments pro and con in respect to tariff rates is such as to require the kind of investigation that I have directed the tariff board to make, an investigation under- taken by it wholly without respect to the effect which the facts may have in calling for a readjustment of the rates of duty. WAR DEPARTMENT In the interest of immediate economy and because of the prospect of a deficit, I have required a reduction in the estimates of the War Department for the coming fiscal year, which brings the total estimates down to an amount forty-five millions less than the corresponding estimates for last year. This could only be accomplished by cutting off new projects and suspending for the period of one year all progress in military matters. For the same reason I have directed that the Army shall not be recruited up to its present authorized strength. These measures can hardly be more than temporary — to last until our revenues are in better condition and until the whole question of the expediency of adopting a definite military policy can be submitted to Congress, for I am sure that the interests of the military establishment are seriously in need of careful consideration by Congress. The laws regulating the organization of our armed forces in the event of war need to be revised in order that the organization can be modified so as to produce a force which would be more consistently apportioned through- out its numerous branches. To explain the circumstances upon which this opinion is based would necessitate a lengthy discussion, and I postpone it until the first convenient VXD STATE PAPERS 473 opportunity shall arise to send to Congress a special message upon this subject. The Secretary of War calls attention to a number of needed changes in the Army in all of which I concur, but the point upon which I place most emphasis is the need for an elimina- tion bill providing a .method by which the merits of officers shall have sonic effect upon their advancement and by which the advancement of all may be accelerated by the effective elimination of a definite proportion of the least efficient. There are in every army, and certainly in ours, a number of officers who do not violate their duty in any such way as to give reason for a court-martial or dismissal, but who do not show such aptitude and skill and character for high command as to justify their remaining in the active service to be promoted. Provision should be made by which they may be retired on a certain proportion of their pay, increasing with their length of service at the time of retirement. There is now a personnel law for the Navy which itself needs amend- ment and lo which I shall make further reference. Such a law is needed quite as much for the Army. The coast defenses of the United Slates proper are generally all that could be desired, and in some respects they are rather more elaborate than under present conditions are needed to stop an enemy's licet from entering the harbors defended. There is, however, one place where additional defense is badly needed, and that is at the mouth of Chesapeake Bay, where it is proposed to make an artificial island for a fort which shall prevent an enemy's fleet from entering this most important strategical base of operations on the whole Atlantic and Gulf coasts. I hope that appropriate legislation will be adopted to secure the construction of this defense. The Military and Naval Joint Board have unanimously agreed that it would be unwise to make the large expenditures which at one time were contemplated in the establishment of a naval base and station in the Philippine Islands, and have expressed their judgment, in which I fully concur, in 474 PRESIDENTIAL ADDRESSES favor of making an extensive naval base at Pearl Harbor, near Honolulu, and not in the Philippines. This does not dispense with the necessity for the comparatively small appropriations required to finish the proper coast defenses in the Philippines now under construction on the island of Corregidor and elsewhere or to complete a suitable repair station and coaling supply station at Olongapo, where is the floating dock "Dewey." I hope that this recommendation of the joint board will end the discussion as to the compara- tive merits of Manila Bay and Olongapo as naval stations, and will lead to prompt measures for the proper equipment and defense of Pearl Harbor. THE NAVY The return of the battle-ship fleet from its voyage around the world, in more efficient condition than when it started, was a noteworthy event of interest alike to our citizens and the naval authorities of the world. Besides the beneficial and far-reaching effect on our personal and diplomatic relations in the countries which the fleet visited, the marked success of the ships in steaming around the world in all weathers on schedule time has increased respect for our Navy and has added to our national prestige. Our enlisted personnel recruited from all sections of the country is young and energetic and representative of the national spirit. It is, moreover, owing to its intelligence, capable of quick training into the modern man-of-warsmen. Our officers are earnest and zealous in their profession, but it is a regrettable fact that the higher officers are old for the responsibilities of the modern navy, and the admirals do not arrive at flag rank young enough to obtain adequate training in their duties as flag officers. This need for reform in the Navy has been ably and earnestly presented to Congress by my predecessor, and I also urgently recommend the subject for consideration. Early in the coming session a comprehensive plan for the reorganization of the officers of all corps of the Navy AND STATE PAPERS 475 will be presented to Congress, and I hope it will meet with action suited to its urgency. Owing to the necessity for economy in expenditures, I have directed the curtailment of recommendations for naval appropriations so that they are thirty-eight millions less than the corresponding estimates of last year, and the request for new naval construction is limited to two first-class battle- ships and one repair vessel. The use of a navy is for military purposes, and there has been found need in the Department of a military branch deal- ing directly with the military use of the fleet. The Secretary of the Navy has also felt the lack of responsible advisers to aid him in reaching conclusions and deciding important matters between coordinate branches of the Department. To secure these results he has inaugurated a tentative plan involving certain changes in the organization of the Navy Department, including the navy yards, all of which have been found by the Attorney-General to be in accordance with law. I have approved the execution of the plan proposed because of the greater efficiency and economy it promises. The generosity of Congress has provided in the present Naval Observatory, the most magnificent and expensive astronomical establishment in the world. It is being used for certain naval purposes which might easily and adequately be subserved by a small division connected with the Navy Department at only a fraction of the cost of the present Naval Observatory. The Official Board of Visitors estab- lished by Congress and appointed in 1901 expressed its conclusion that the official head of the observatory should be an eminent astronomer appointed by the President by and with the advice and consent of the Senate, holding his place by a tenure at least as permanent as that of the Superintend- ent of the Coast Survey or the head of the Geological Survey, and not merely by a detail of two or three years' duration. I fully concur in this judgment, and urge a provision by law for the appointment of such a director. 476 PRESIDENTIAL ADDRESSES It may not be necessary to take the observatory out of the Navy Department and put it into another department in which opportunity for scientific research afforded by the observatory would seem to be more appropriate, though I believe such a transfer in the long run is the best policy. I am sure, however, I express the desire of the astronomers and those learned in the kindred sciences when I urge upon Congress that the Naval Observatory be now dedicated to science under control of a man of science who can, if need be, render all the service to the Navy Department which this observatory now renders, and still furnish to the world the discoveries in astronomy that a great astronomer using such a plant would be likely to make. DEPARTMENT OF JUSTICE Expedition in Legal Procedure The deplorable delays in the administration of civil and criminal law have received the attention of committees of the American Bar Association and of many state bar associa- tions, as well as the considered thought of judges and jurists. In my judgment, a change in judicial procedure, with a view to reducing its expense to private litigants in civil cases and facilitating the dispatch of business and final decision in both civil and criminal cases, constitutes the greatest need in our American institutions. I do not doubt for one moment that much of the lawless violence and cruelty exhibited in lynchings is directly due to the uncertainties and injustice growing out of the delays in trials, judgments, and the execu- tions thereof by our courts. Of course these remarks apply quite as well to the administration of justice in State courts as to that in Federal courts, and without making invidious distinction it is perhaps not too much to say that, speaking generally, the defects are less in the Federal courts than the State courts. But they are very great in the Federal courts. The expedition with which business is disposed of both on the civil and the criminal side of English courts under AND STATE PAPERS 477 modern rules of procedure makes the delays in our courts seem archaic and barbarous. The procedure in the Federal courts should furnish an example for the State courts. I presume it is impossible, without an amendment to the Con- stitution, to unite under one form of action the proceedings at common law and proceedings in equity in the Federal courts, but it is certainly not impossible by a statute to simplify and make short and direct the procedure both at law and in equity in those courts. It is not impossible to cut down still more than it is cut down, the jurisdiction of the Supreme Court so as to confine it almost wholly to statutory and constitutional questions. Under the present statutes the equity and admiralty procedure in the Federal courts is under the control of the Supreme Court, but in the pressure of business to which that court is subjected it is impossible to hope that a radical and proper reform of the Federal equity procedure can be brought about. I therefore recommend legislation providing for the appointment by the President of a commission with authority to examine the law and equity procedure of the Federal courts of first instance, the law of appeals from those courts to the courts of appeals and to the Supreme Court, and the costs imposed in such procedure upon the private litigants and upon the public treasury and make recommendation with a view to simplifying and expediting the procedure as far as possible and making it as inexpensive as maybe to the litigant of little means. Injunction* Without Notice The platform of the successful party in the last election contained the following: "The Republican party will uphold at all times the authority and integrity of the courts, State and Federal, and will ever insist that their powers to enforce their process and to protect life, liberty, and property shall be preserved inviolate. We believe, however, that the rules of pro- 478 PRESIDENTIAL ADDRESSES cedure in the Federal courts with respect to the issuance of the writ of injunction should be more accurately defined by statute, and that no injunction or temporary restraining order should be issued without notice, except where irreparable injury would result from delay, in which case a speedy hearing thereafter should be granted." I recommend that in compliance with the promise thus made, appropriate legislation be adopted. The ends of justice will best be met and the chief cause of complaint against ill-considered injunctions without notice will be removed by the enactment of a statute forbidding hereafter the issuing of any injunction or restraining order, whether temporary or permanent, by any Federal court, without previous notice and a reasonable opportunity to be heard on behalf of the parties to be enjoined; unless it shall appear to the satisfaction of the court that the delay necessary to give such notice and hearing would result in irreparable injury to the complainant and unless also the court shall from the evidence make a written finding, which shall be spread upon the court minutes, that immediate and irrepar- able injury is likely to ensue to the complainant, and shall define the injury, state why it is irreparable, and shall also indorse on the order issued the date and the hour of the issuance of the order. Moreover, every such injunction or restraining order issued without previous notice and opportunity by the defendant to be heard should by force of the statute expire and be of no effect after seven days from the issuance thereof or within any time less than that period which the court may fix, unless within such seven days or such less period, the injunction or order is extended or renewed after previous notice and opportunity to be heard. My judgment is that the passage of such an act which really embodies the best practice in equity and is very like the rule now in force in some courts will prevent the issuing of ill-advised orders of injunction without notice and will render AND STATE PAPERS 479 such orders when issued much less objectionable by the short time which they may remain effective. Anti-Trust and Interstate Commerce Laws The jurisdiction of the general Government over inter- state commerce has led to the passage of the so-called "Sherman Anti-trust Law" and the "Interstate Commerce Law" and its amendments. The developments in the opera- tion of those laws, as shown by indictments, trials, judicial decisions, and other sources of information, call for a dis- cussion and some suggestions as to amendments. These I prefer to embody in a special message instead of including them in the present communication, and I shall avail myself of the first convenient opportunity to bring these subjects to the attention of Congress. Jail of the District of Columbia My predecessor transmitted to the Congress a special message on January 11, 1909, accompanying the report of Commissioners theretofore appointed to investigate the jail, workhouse, etc., in the District of Columbia, in which he directed attention to the report as setting forth vividly, "the really outrageous conditions in the workhouse and jail." The Congress has taken action in pursuance of the recom- mendations of that report and of the President, to the extent of appropriating funds and enacting the necessary legislation for the establishment of a workhouse and reformatory. No action, however, has been taken by the Congress with respect to the jail, the conditions of which still are antiquated and insanitary. I earnestly recommend the passage of a sufficient appropriation to enable a thorough remodeling of that institution to be made without delay. It is a reproach to the National Government that almost under the shadow of the Capitol dome prisoners should be confined in a build- 480 PRESIDENTIAL ADDRESSES ing destitute of the ordinary decent appliances requisite to cleanliness and sanitary conditions. POST-OFFICE DEPARTMENT Second-Class Mail Matter The deficit every year in the Post-Office Department is largely caused by the low rate of postage of 1 cent a pound charged on second-class mail matter, which includes not only newspapers, but magazines and miscellaneous periodicals. The actual loss growing out of the transmission of this second- class mail matter at 1 cent a pound amounts to about $03,000,000 a year. The average cost of the transportation of this matter is more than 9 cents a pound. It appears that the average distance over which newspapers are delivered to their customers is 291 miles, while the average haul of magazines is 1,049, and of miscellaneous periodicals 1,128 miles. Thus, the average haul of the magazine is three and one-half times and that of the miscellaneous period- ical nearly four times the haul of the daily newspaper, yet all of them pay the same postage rate of 1 cent a pound. The statistics of 1907 show that second-class mail matter con- stituted 63.91 per cent, of the weight of all the mail, and yielded only 5.19 per cent, of the revenue. The figures given are startling, and show the payment by the Government of an enormous subsidy to the newspapers, magazines, and periodicals, and Congress may well consider whether radical steps should not be taken to reduce the deficit in the Post-Office Department caused by this discrepancy between the actual cost of transportation and the compensa- tion exacted therefor. A great saving might be made, amounting to much more than half of the loss, by imposing upon magazines and periodicals a higher rate of postage. They are much heavier than newspapers, and contain a much higher proportion of advertising to reading matter, and the average distance of their transportation is three and a half times as great. AND STATE PAPERS 481 The total deficit for the last fiscal year in the Post-Office Department amounted to $17,500,000. The branches of its business which it did at a loss were the second-class mail service, in which the loss, as already said, was $63,000,000, and the free rural delivery, in which the loss was $28,000,000. These losses were in part offset by the profits of the letter postage and other sources of income. It would seem wise to reduce the loss upon second-class mail matter at least to the extent of preventing a deficit in the total operations of the Post-Office. I commend the whole subject to Congress, not unmindful of the spread of intelligence which a low charge for carrying newspapers and periodicals assists. I very much doubt, however, the wisdom of a policy which constitutes so large a subsidy and requires additional taxation to meet it. Postal Savings Banks The second subject worthy of mention in the Post-Office Department is the real necessity and entire practicability of establishing postal savings banks. The successful party at the last election declared in favor of postal savings banks, and although the proposition finds opponents in many parts of the country. I am convinced that the people desire such banks, and am sure that when the banks are furnished they will be productive of the utmost good. The postal savings banks are not constituted for the purpose of creating com- petition with other banks. The rate of interest upon deposits to which they would be limited would be so small as to prevent their drawing deposits away from other banks. I believe them to be necessary in order to offer a proper inducement to thrift and saving to a great many people of small means who do not now have banking facilities, and to whom such a system would offer an opportunity for the accumulation of capital. They will furnish a satisfactory substitute, based on sound principle and actual successful trial in nearly all the countries of the world, for the system 482 PRESIDENTIAL ADDRESSES of government guaranty of deposits now being adopted in several Western States, which with deference to those who advocate it seems to me to have in it the seeds of demoralization to conservative banking and certain financial disaster. The question of how the money deposited in postal savings banks shall be invested is not free from difficulty, but I believe that a satisfactory provision for this purpose was inserted as an amendment to the bill considered by the Senate at its last session. It has been proposed to delay the consideration of legislation establishing a postal savings bank until after the report of the Monetary Commission. This report is likely to be delayed, and properly so, because of the necessity for careful deliberation and close inves- tigation. I do not see why the one should be tied up with the other. It is understood that the Monetary Commission have looked into the systems of banking which now prevail abroad, and have found that by a control there exercised in respect to reserves and the rates of exchange by some central authority panics are avoided. It is not apparent that a system of postal savings banks would in any way interfere with a change to such a system here. Certainly in most of the countries in Europe where control is thus exercised by a central authority, postal savings banks exist and are not thought to be inconsistent with a proper financial and bank- ing system. Ship Subsidy Following the course of my distinguished predecessor, I earnestly recommend to Congress the consideration and pas- sage of a ship subsidy bill, looking to the establishment of lines between our Atlantic seaboard and the eastern coast of South America, as well as lines from the west coast of the United States to South America, China, Japan, and the Philippines. The profits on foreign mails are perhaps a sufficient measure of the expenditures which might first be tentatively applied to this method of inducing American AND STATE PAPERS 483 capital to undertake the establishment of American lines of steamships in those directions in which we now feel it most important that we should have means of transportation con- trolled in the interest of the expansion of our trade. A bill of this character has once passed the House and more than once passed the Senate, and I hope that at this session a bill framed on the same lines and with the same purposes may become a law. INTERIOR DEPARTMENT New Mexico and Arizona The successful party in the last election in its national platform declared in favor of the admission as separate States of New Mexico and Arizona, and I recommend that legislation appropriate to this end be adopted. I urge, how- ever, that care be exercised in the preparation of the legislation affecting each territory to secure deliberation in the selection of persons as members of the convention to draft a constitu- tion for the incoming state, and I earnestly advise that such constitution after adoption by the convention shall be sub- mitted to the people of the territory for their approval at an election in which the sole issue shall be the merits of the proposed constitution, and if the constitution is defeated by popular vote means shall be provided in the enabling act for a new convention and the drafting of a new constitution. I think it vital that the issue as to the merits of the constitution should not be mixed up with the selection of state officers, and that no election of state officers should be had until after the constitution has been fully approved and finally settled upon. Alaska With respect to the Territory of Alaska, I recommend legislation which shall provide for the appointment by the President of a governor and also of an executive council, the members of which shall during their term of office reside in 484 PRESIDENTIAL ADDRESSES the territory, and which shall have legislative powers suffi- cient to enable it to give to the territory local laws adapted to its present growth. I strongly deprecate legislation look- ing to the election of a territorial legislature in that vast district. The lack of permanence of residence of a large part of the present population and the small number of the people who either permanently or temporarily reside in the district as compared with its vast expanse and the variety of the interests that have to be subserved, make it altogether unfitting in my judgment to provide for a popular election of a legislative body. The present system is not adequate and does not furnish the character of local control that ought to be there. The only compromise, it seems to me, which may give needed local legislation and secure a conservative gov- ernment is the one I propose. Conservation of National Resources In several Departments there is presented the necessity for legislation looking to the further conservation of our national resources, and the subject is one of such importance as to require a more detailed and extended discussion than can be entered upon in this communication. For that reason I shall take an early opportunity to send a special mes- sage to Congress on the subject of the improvement of our waterways, upon the reclamation and irrigation of arid, semi-arid, and swamp lands; upon the preservation of our forests and the reforesting of suitable areas; upon the reclassification of the public domain with a view to separating from agricultural settlement mineral, coal, and phosphate lands and sites belonging to the Government bordering on streams suitable for the utilization of water power. DEPARTMENT OF AGRICULTURE I commend to your careful consideration the report of the Secretary of Agriculture as showing the immense sphere of usefulness which that Department now fills AND STATE PAPERS 485 and the wonderful addition to the wealth of the nation made by the farmers of this country in the crops of the current year. DEPARTMENT OF COMMERCE AND LABOR The Light-House Board The Light-House Board now discharges its duties under the Department of Commerce and Labor. For upward of forty years this board has been constituted of military and naval officers and two or three men of science, with such an absence of a duly constituted executive head that it is marvelous what work has been accomplished. In the period of construction the energy and enthusiasm of all the members prevented the inherent defects of the system from interfering greatly with the beneficial work of the Board, but now that the work is chiefly confined to maintenance and repair, for which purpose the country is divided into sixteen districts, to which are assigned an engineer officer of the Army and an inspector of the Navy, each with a light-house tender and the needed plant for his work, it has become apparent by the frequent friction that arises, due to the absence of any central independ- ent authority, that there must be a complete reorganization of the Board. I concede the advantage of keeping in the system the rigidity of discipline that the presence of naval and military officers in charge insures, but unless the presence of such officers in the Board can be made consistent with a responsible executive head that shall have proper authority, I recommend the transfer of control over light-houses to a suitable civilian bureau. This is in accordance with the judgment of competent persons who are familiar with the workings of the present system. I am confident that a reorganization can be effected which shall avoid the recurrence of friction between members, instances of which have been officially brought to my attention, and that by such reorganization greater 48G PRESIDENTIAL ADDRESSES efficiency and a substantial reduction in the expense of operation can be brought about. Consolidation of Bureaus I request Congressional authority to enable the Secretary of Commerce and Labor to unite the Bureaus of Manufac- tures and Statistics. This was recommended by a competent committee appointed in the previous administration for the purpose of suggesting changes in the interest of economy and efficiency, and is requested by the Secretary. The White Slave Trade I greatly regret to have to say that the investigations made in the Bureau of Immigration and other sources of informa- tion lead to the view that there is urgent necessity for addi- tional legislation and greater executive activity to suppress the recruiting of the ranks of prostitutes from the streams of immigration into this country — an evil which, for want of a better name, has been called "The White Slave Trade." I believe it to be constitutional to forbid, under penalty, the transportation of persons for purposes of prostitution across national and state lines; and by appropriating a fund of $50,000 to be used by the Secretary of Commerce and Labor for the employment of special inspectors it will be possible to bring those responsible for this trade to indict- ment and conviction under a Federal law. BUREAU OF HEALTH For a very considerable period a movement has been gathering strength, especially among the members of the medical profession, in favor of a concentration of the instru- ments of the National Government which have to do with the promotion of public health. In the nature of things, the Medical Department of the Army and the Medical Depart- ment of the Navy must be kept separate. But there seems to be no reason why all the other bureaus and offices in the general Government which have to do with the public AND STATE PAPERS 487 health or subjects akin thereto should not be united in a bureau to be called the "Bureau of Public Health." This would necessitate the transfer of the Marine-Hospital Service to such a bureau. I am aware that there is a wide field in respect to the public health committed to the States in which the Federal Government can not exercise jurisdic- tion, but we have seen in the Agricultural Department the expansion into widest usefulness of a department giving attention to agriculture when that subject is plainly one over which the States properly exercise direct jurisdiction. The opportunities offered for useful research and the spread of useful information in regard to the cultivation of the soil and the breeding of stock and the solution of many of the intricate problems in progressive agriculture have demon- strated the wisdom of establishing that department. Similar reasons, of equal force, can be given for the establishment of a bureau of health that shall not only exercise the police jurisdiction of the Federal Government respecting quaran- tine, but which shall also afford an opportunity for investiga- tion and research by competent experts into questions of health affecting the whole country, or important sections thereof, questions which, in the absence of Federal governmental work, are not likely to be promptly solved. CIVIL SERVICE COMMISSION The work of the United States Civil Service Commission has been performed to the general satisfaction of the executive officers with whom the Commission has been brought into official communication. The volume of that work and variety and extent have under new laws, such as the Census Act, and new executive orders, greatly increased. The activities of the Commission required by the statutes have reached to every portion of the public domain. The accommodations of the Commission are most inade- quate for its needs. I call your attention to its request for 488 PRESIDENTIAL ADDRESSES increase In those accommodations as will appear from the annual report for this year. POLITICAL CONTRIBUTIONS I urgently recommend to Congress that a law be passed requiring that candidates in elections of Members of the House of Representatives, and committees in charge of their candidacy and campaign, file in a proper office of the United States Government a statement of the contributions received and of the expenditures incurred in the campaign for such elections, and that similar legislation be enacted in respect to all other elections which are constitutionally within the control of Congress. freedman's savings and trust company Recommendations have been made by my predecessors that Congress appropriate a sufficient sum to pay the balance — about 38 per cent. — of the amounts due depositors in the Freedman's Savings and Trust Company. I renew this recommendation, and advise also that a proper limitation be prescribed fixing a period within which the claims may be presented, that assigned claims be not recognized, and that a limit be imposed on the amount of fees collectible for services in presenting such claims. semicentennial of negro freedom The year 1913 will mark the fiftieth anniversary of the issuance of the Emancipation Proclamation granting free- dom to the Negroes. It seems fitting that this event should be properly celebrated. Already a movement has been started by prominent Negroes, encouraged by prominent white people and the press. The South especially is mani- festing its interest in this movement. It is suggested that a proper form of celebration would be an exposition to show the progress the Negroes have made, not only during their period of freedom, but also from the time of their coming to this country. I heartily indorse this proposal, and request that the AND STATE PAPERS 489 Executive be authorized to appoint a preliminary com- mission of not more than seven persons to consider carefully whether or not it is wise to hold such an exposition, and if so, to outline a plan for the enterprise. I further recommend that such preliminary commission serve without salary, except as to their actual expenses, and that an appropriation be made to meet such expenses. CONCLUSION I have thus, in a message compressed as much as the sub- jects will permit, referred to many of the legislative needs of the country, with the exceptions already noted. Speaking generally, the country is in a high state of prosperity. There is every reason to believe that we are on the eve of a substan- tial business expansion, and we have just garnered a harvest unexampled in the market value of our agricultural products. The high prices which such products bring mean great pros- perity for the farming community, but on the other hand they mean a very considerably increased burden upon those classes in the community whose yearly compensation does not expand with the improvement in business and the general prosperity. Various reasons are given for the high prices. The proportionate increase in the output of gold, which to-day is the chief medium of exchange and is in some respects a measure of value, furnishes a substantial explanation of at least part of the increase in prices. The increase in population and the more expensive mode of living of the people, which have not been accompanied by a propor- tionate increase in acreage production, may furnish a further reason. It is well to note that the increase in the cost of living is not confined to this country, but prevails the world over, and that those who would charge increases in prices to the existing protective tariff must meet the fact that the rise in prices has taken place almost wholly in those products of the factory and farm in respect to which there has been either no increase in the tariff or in many instances a very considerable reduction. LX ADDRESS AT THE SIXTH ANNUAL CONVENTION OF THE NATIONAL RIVERS AND HARBORS CONGRESS AT THE NEW WILLARD HOTEL, WASHINGTON, D. C. (DECEMBER 8, 1909.) Mr. President, Members of the National Rivers and Harbors Congress, Ladies and Gentlemen: I DON'T know that I have any right to be here to talk about waterways, unless it makes a man an expert on the subject to have gone down the Mississippi River. The dangers to which one was exposed on that journey, by reason of the shoals and the other obstacles and temptations of the journey, certainly offered an opportunity for careful study and deliberation. Now I think I am a sufficiently established resident of Washington to make what I have to say an address of welcome. I am delighted that you selected Washington as your place of meeting. You have done it wisely, first, because when you want a thing done it is just as well to get close to the men who are to do it; and secondly, Washington is always a good place to come to, and you can induce the ladies of the family to come with you, which is always an assurance of both work and pleasure. I congratulate this Congress on having brought the subject of waterways to such a point that the Representatives in Con- gress, from one end of the country to the other, recognize it as a subject that calls for action. They have not come to a definite conclusion as to the policy that ought to be adopted, but they have come to the conclusion that some policy must be adopted with reference to the development of these instru- 490 PRESIDENTIAL ADDRESSES 491 mentalities which nature has furnished for the transportation of goods and for the controlling of railroad rates. You in your declaration say that you are in favor of a policy and not in favor of any particular project. I think that a wise platform to take; and yet when it comes to the practical enforcement and accomplishment of something, you have got to go into projects. You may insist that a policy ought to be adopted, and you have insisted, and I do not doubt that you have — indeed I know you have — made that distinguished member of Congress, the head of the Rivers and Harbors Committee, sit up nights to devise a policy which shall be presented to the country and satisfy the demand that has arisen in such a — I had almost said — unanimous way the country through. But you are coming now near to the detail of projects. One has to travel over the country to find out what the country is thinking about. You go into the Northwest and you find the development of the Columbia River as one of the great projects of many who live in that neighborhood. You go into far-distant Texas, and you find that they have an inland waterways project there reaching into Louisiana, into the bayous of Texas, and down along the Gulf, that has demonstrated its usefulness as to part, and that only needs further addition and improvement to carry out a great system of waterways there that shall reach farms and plantations that are even beyond railroads now. And so, as you come up the eastern shore of this country, you find the inland — I don't think they call it inland waterways exactly, but it is the inside waterway — the Atlantic Deeper Waterways Association. Now, it is well that there is in almost every part of the country a project of that sort to awaken the inter- ests of those who live in that part of the country, for while we are all patriots, and while we are all in favor of all the country, we are just a little more intensely in favor of that which is nearest than we are in favor of that which is very far away. The danger to this movement, the test of the value of the movement, is going to be seen when you get off 402 PRESIDENTIAL ADDRESSES that very safe platform, that you are in favor of a policy and not in favor of a project, and get down to the business of pushing projects. One of the things that I think we ought to do is not to decry the past. It is to take from the past that which is valuable and build on it. The trip down the Mississippi River was an eye-opener to many of us. The work which has gone on at the end of the river and near its mouth, up along the banks in Mississippi and Louisiana, and up into Arkansas, is a work that commends itself to every one who sees it. It is work in the direction both of the preservation of farms and the establishment of a great waterway there. The work which has been done by the National Government through its army engineers in strengthening the banks of that river is a work of experimentation, but work which has now demonstrated the possibility of treating that river in such a way as to hold the banks and keep the river within it, and insuring a reasonable depth where steamers may go. Then we have had an investigation by the army engineers into the practicability of deepening to six feet the Missouri River, from Sioux City to St. Louis; of deepening the Mis- sissippi River from St. Paul to St. Louis; of deepening and keeping at an eight-foot depth the river from St. Louis to Cairo; and also of a project for the maintenance of a nine- foot depth the year round in the Ohio River. I recognize the gentlemen who applaud, as coming from the Columbia River district and illustrating that disinterested enthusiasm that is certain to carry all the projects through. Now I don't think I betray a secret when I say that the gentleman who has most to do with the initiation of projects in Congress is fully charged with the necessity for doing something: in the next Congress to foreshadow, or rather to begin, a policy with respect to those rivers. You have the Missouri, the upper Mississippi, the Mississippi between St. Louis and Cairo, and the Ohio between Pittsburg and Cairo, all of them satisfying the requirements that you have to put in your platform with respect to the improvement of the AND STATE PAPERS 493 waterways. That is an improvement in the heart of the country, an improvement that reaches to more States than any other improvement that can be mentioned in this entire country. It affects not only the States along whose borders the improvements will be made, but it affects all the states along the borders of the Mississippi beyond Cairo, for the project will also include and must include the investment of a sufficient amount of money to keep the nine-foot stage always between Cairo and New Orleans. I am aware that there are a great many gentlemen in this country who are in favor of something more than nine feet between Cairo and the Gulf, but you must get nine feet before you get fourteen. When you once get that system that I have outlined into operation so as to show the benefits that can be derived from it, what will go on thereafter no man can foresee. The truth is that the engineers will tell you that after you have harnessed the Mississippi River by pro- tecting its banks, no man can tell what the depth of that river will be made by the river itself confined within reasonable banks. In other words, what I am urging, what I am labor- ing for, is something practical in the way of a moderate project in order that you may go on and gradually develop a larger project than that which was in your minds at its initiation — that you do something practical by taking the materials that you have, and as you go on and as the business increases, demonstrate to those in the country who are not so near to that improvement its advantage to the entire country in the reduction of railroad rates and in the actual transportation of that kind of business that the river will attract. Now speaking to this assembly — I think it w T as this assembly (we have got so many congresses in favor of so many good things that sometimes there is a little difficulty in distinguishing, and when you all meet together in Washington at the same time there is danger of mistaken identity as to associations) — but at any rate a year ago President Roose- velt and I were together on a platform before the Conserva- tion of Resources Convention,! think it was, in which we both 494 PRESIDENTIAL ADDRESSES advocated the issuing of bonds in order that a project improv- ing waterways when begun should be completed in a reason- able time. Now I am still a consistent advocate of that theory. I believe that the Government is entitled to as rapid a method of developing an enterprise and putting it through as private corporations, and as they always issue bonds, or generally do (some of them are fortunate enough not to have to), in order to expedite the completion of these projects,, it would seem wise for the Nation to do so where it will accomplish the same result. But I want to suggest a word of caution. You are going to encounter in Congress great opposition to the policy of issuing bonds right out of hand. You are much more likely to get from Congress a declaration of policy in the shape of a declaration that a certain improvement ought to be carried out and spread upon the minutes of Congress in the form of a resolution or a declaration in a statute. Now, what I advise you to do is to get that declaration. Then when the time comes that political exigency shall prevent the appro- priation of sufficient amounts from the current revenues to put the proper part of the project through the coming year or the coming two years as economy requires, the question of issuing bonds will arise. I would get the declaration first, and not have the bonds first, for the reason that you will encounter the objection of Congress that the issuing of bonds and the receipt of the money will develop a desire to be extravagant. That may not meet your views, but I have thought it over, and I know something about Congress. I know where you are going to encounter opposition, and I believe the best way is the natural way with those gentlemen. You lead them on to declare in favor of the Missouri improvement, in favor of the St. Louis to St. Paul improve- ment, in favor of the Cairo to St. Louis improvement, in favor of the Ohio improvement, all of which have been approved by the army engineers, and get them recorded in the statutes of this country as declaring that those things are to be carried out and let them make their first appro- AND STATE PAPERS 495 priation from the revenues of the country, and then you have them where they must issue bonds, unless the revenues afford a sufficient amount each year to carry that project on economically and with due rapidity. I tell you, gentlemen, you are getting, as the boys and girls used to say in "finding the button " — you are getting warm. You are at a point where you can accomplish something if you don't stop it by doing it the wrong way. I don't feel justified in giving advice to a body like this on a subject which they have studied so much, or, I should not feel it except that I have had pretty close association as Secretary of War and otherwise with the army engineers, who have given their lives to the study of these improvements. I know those army engineers very well. Doubtless you do, as you have met them in the districts to which they were assigned. I venture to say that in your whole experience you have never met men of a higher standard of character, of a higher devotion to public duty, and of greater skill in their profession than those same army engineers. They are selected from the first ten or the first five of the graduates of West Point, and they have a little ring in the Army, which I might betray to you by reason of some inside information. If a class comes out that has not developed very good material in the way of engineers and mathematicians, somehow or other the Chief of Engineers advises the Secretary of War that for that year they do not need any particular addition to the corps; and so it is that they have acquired a greater propor- tion of the mathematical and engineering ability of those who graduated from West Point than they really were entitled to. They have gone on, and, with but one exception, their record is clear, in the honesty, and I had almost said the severity, with which they have expended the Government's funds, and have seen to their being put into material at a cost which was an honest cost. But it has been said that they were crotchety; that at times they did not apparently catch the sound of progress; that they were slow sometimes in the building up of improvements. I am not prepared to 49G PRESIDENTIAL ADDRESSES say that those criticisms with reference to individuals were not well founded. You can not take a great corps like that, numbering as it does a great many officers within it, and not find men who fail to keep up with the procession, but I am very sure from talking with General Marshall and with a number of the other men at the head of the corps that they are fully charged with the increased interest in this country among the people and among the business men in the develop- ment of the inland waterways, and that you could not have a safer body of men to advise than the army engineers. I count it one of the great good fortunes of this country that when the country had to build the Panama Canal, after using the great ability of civil engineers, we finally settled down upon the army engineers to carry that project through. So it is with respect to the waterways. They have recom- mended to the chairman of the waterways committee in the House a system of improvements that I believe will meet the judgment of this convention, if it be moderated to the possibilities of what can be accomplished. I think you can secure upon the statute books of this country a declaration in favor of continuing contracts to build the four or five pro- jects which the engineers have recommended, in such a way, even if you do not get the bonds voted at first, that if the time arises when the revenues will not permit their use, I mean the current revenues, to continue that work with rea- sonable rapidity, you can move upon the Government for the issuing of bonds. I would make the fight for bonds when the conditions strengthen the argument in their favor. It is a strong argument that you will have to meet; that if you are going to issue a large amount of bonds just for the purpose of putting them into the waterways as their necessity may develop, then there is a temptation to extravagance. Perhaps it is my judicial experience, but I always feel as if you ought to shape your policy in order to win, not according to the enthusiastic suggestions of your imagination, but in order to overcome the obstacles that you are likely to encounter in winning the end which you seek. AND STATE PAPERS 497 And, now, ladies and gentlemen, I am very much obliged to you for giving me such attention. I realize that what I have said comes from the lips of a mere tyro, but it comes from one who has some temporary responsibility in respect to the matter, and from one who is thoroughly in sympathy with the general object which you seek here, to wit, the development of all the waterways of this country by a general policy in such a way as to reduce and control railroad rates and in such a way as to stimulate upon the bosom of the waters the transportation of such merchandise as is peculiarly fitted to that character of carriage. LXI REMARKS TO THE OHIO VALLEY IMPROVEMENT ASSOCIATION, AT THE WHITE HOUSE (DECEMBER 9, 1909) Mr. Chairman and Gentlemen: THIS is the first time in my life I can remember that I am sorry I am from Ohio. It is because, coming from Ohio, I can not make my recommendation in respect to the necessity for the improvement of the Ohio as strong as I might if I had not come from Ohio, for my motives will be questioned. You gentlemen who figure in private life do not have to encounter that. Those of us who do are rapidly getting used to it. With respect to the Ohio improvement, it is the first one out of all the conventions, out of all the oratory and out of all the indefinite nebulous appeals for waterways that has a definite scope, a plain reason for being, a clear estimate of cost and a plain possibility of execution. You have six locks now completed, and where those six locks operate, the success of the system of slack water has been demonstrated. You have seven locks under construction, and there are fifty- four locks in all necessary to establish slack water at nine feet the year round from Pittsburg to Cairo, and that improvement in the long run is to cost — I should not say in the long run, for no one knows how much it would cost in the long run — but under the present estimates of engineers, if done with business-like rapidity, it would cost $63,000,000. There is an additional advantage in this proposal. I have not looked into waterways very much, but I have gathered the impression from such reading and discussion as I have been able to do and to hear, that it does not always 498 PRESIDENTIAL ADDRESSES 499 follow because you have waterways with sufficient depth for steamers, for barges and for other transportation, that you are going to attract business on that waterway. The ques- tion is, whether you have the kind of business that the water- way will attract. In Europe I am told that there are rivers on which the traffic is all up-stream, or largely so, because the merchandise and material to be carried are at the mouth of the stream; and the place where they are to be landed is along near its sources, and that those steamers after carrying up the stream the material to be used come down partly empty, which is an indication that in order to justify improve- ments of this sort, those who contend for them must point out the utility by showing the proper business to be done. Now, in respect to the Ohio improvement you have the present business. You can point to your coal mines and to your heavy products of manufacture in Pittsburg and throughout that neighborhood which can be carried cheaply down the Ohio River clear to the mouth and to the Gulf; and having the business and having the estimate and having the water and having the plans, there is not any reason why improvement should not be made. I observe that there are a number of gentlemen who think that I cast a wet blanket over the convention yesterday by what I said there. I did not intend to do so. I only intended to help it along by pointing out the practical method of accomplishing what yon arc here for. You have had enough experience with Congress to know that it is sui generis to have to deal with it as a body dif- ferent from any other body, as it is different from any other body, being representative of three hundred and ninety-one districts of the United States, with differing interests and differing views. When you approach Congress with a pro- posal for the issuing of bonds, you are going to arouse great opposition and that opposition will arise and demand why, and they will demand an answer not in general expressions, not in resounding oratory, but they will want facts and estimates and a statement of something definitely useful into 500 PRESIDENTIAL ADDRESSES which they are going to put their money which they may even have to borrow in order to carry through the enterprise. You in the Ohio Valley have an enterprise in respect to which you can give the sufficient answers. All I can hope is that you shall find enough disinterested people in the country to support the Ohio improvement with some others that I mentioned yesterday that might be just as well carried along together, right in the heart of the country. The improvement of the Ohio River is not alone to improve the Ohio River and help the States along its border, but it is also to help the Mississippi River and the States that border on the Mississippi River down to the Gulf and the whole country. I am only a coordinate branch of this Government and the least important of those branches, but such influence as I can bring to bear you can count on my bringing to bear in favor of the Ohio River, and it is not because I was born and brought up in Ohio and looked across the Ohio River until I left Ohio, but it is because I have looked into the question of the improvement, and if I came from the Columbia River I should still be in favor of the improve- ment of the Ohio. LXII REMARKS TO THE COMMITTEE OF THE LAKES- TO-THE-GULF DEEP WATERWAYS ASSO- CIATION, AT THE WHITE HOUSE (DECEMBER 9, 1909) Governor Deneen, of her Governors, and Gentlemen of the Deep Waterways A ssociation: I AM glad to renew our old and our delightful association. The presence of gubernatorial timber on that trip sweetens every recollection of the trip. It will be, I doubt not, an epoch in the history of this country in fixing, more than any other one event, the attention of the country upon the necessity for action in respect to our inland waterways, the most important of which every one admits, of course, is the Mississippi River. How these details are to be worked out is a question that must be solved in the near future. I am sure that this coming Congress will take steps; I say I am sure — I mean I have received assurances from those gentlemen connected with the committees that have to do with legislation of that sort— that this whole matter will receive earnest consideration, and that steps will be made of an important character toward the development of a system of improvement in the heart of the country. That this may not meet the views of the most aspiring of those who are interested will probably be the case. With deference to Senator Warner and other members of that body called Congress, it never does quite meet the aspirations of everybody, but that "something is doing." if I may use a colloquial expression; that the interest of those who here- tofore have turned a cold shoulder to the entire subject has been aroused, no one at all familiar with the atmosphere of 501 502 PRESIDENTIAL ADDRESSES Washington can deny. And I hope that we are all engaged in a work in which we stand shoulder to shoulder without respect to a particular locality, and that if you gentlemen who are interested in a particular improvement find that your view may not be entirely met and that your particular project may not be the first one taken up in a substantial way, it will not prevent your welcoming a step by the Congress of the United States which when taken means the embracing of every improvement that ought to commend itself to those who are familiar with Congress. And, now, Governor Deneen, I am glad to renew the association and acquaintance which, though it was not begun on the broad bosom of the Mississippi, certainly received an impetus so that we shall never forget the company that we met there under auspices which our hosts, the Business Men's Association of St. Louis, made so delightful. LXIII ADDRESS AT A MASS MEETING IN CELEBRATION OF THE DIAMOND JUBILEE OF METHODIST EPISCOPAL MISSIONS IN AFRICA, AT CARNEGIE HALL, NEW YORK CITY (DECEMBER 13, 1909) Ladies and Gentlemen: I AM very glad to be here to bear witness to my very great interest in that which this meeting celebrates — the altaek of the Methodist Church upon Africa. I like to think of Methodism among the denominations as an affirma- tive, aggressive, pushing, practical church militant, and it needed to be thai to tackle Africa. Since I have had the honor to occupy public office, it has fallen to me to address meetings of many different churches, and I always seize the opportunity -when invited to any other church than my own, and I hope I don't leave out my own — to be present, because I like to feel and imbibe in my nature the sense of tolerance and increase in the feeling of the Fatherhood of God and the brotherhood of man among all the denominations of the churches; and my own reception by churches, not my own, makes me feel certain of the growing and wide catholicity of the Christian Church. Doubtless it is because I was not aroused to the importance of the missionary spirit and the great things that were being done years ago, that it seems to me thai it is only within recent times that this missionary feeling has taken such a hold upon the people. I have observed that each man dates the spread of public opinion on a particular subject from the time that he began to think of it ; but the history of our country does offer a date 503 501 PRESIDENTIAL ADDRESSES and an epoch when it seems to me that people of the United Slates acquired a wider and a world feeling, and an interest and a responsibility for all the people of the world, as dis- tinguished from those who enjoy our opportunities of living under the Stars and Stripes. It is not perhaps appropriate to date a religious movement from a war, but it does seem to me as if our people acquired a world feeling from the time we undertook the responsibility of freeing Cuba and saying what should be done by our neighbors with reference to internal government when that internal government seemed to us to pass the bounds of what we thought to be civilized. We began our war expecting to finish it shortly, and we landed in the Philippines and we are still there. But our horizon has widened much beyond those gems of the Pacific Ocean by reason of the respon- sibilities which we have been obliged to assume with reference to the entire world. We are a great power in the world, and we may be, and hope we are, a great power for usefulness, a great power fo ■ the spread of Christian civilization, and we must be so if we would justify our success and vindicate our right to enjoy the opportunities that God has given us in this fair, broad land of building of wealth and comfort and luxury and education and making ourselves, what we like to think we are, the foremost people of the world. There are those who would read the last words of Washing- ton in his farewell message as an indication that we ought to keep within the seas and not look beyond; but he was addressing thirteen states that had much to do before they could make themselves a great nation and that might well avoid entangling alliances, or any foreign interference, or any foreign trouble, while they were making themselves a nation. But now we are a nation with tremendous power and tremendous wealth, and unless we use that for the benefit of our international neighbors (and they are all neighbors of ours, for the world is very small) — unless we use that power and that wealth, we are failing to discharge the duties AND STATE PAPERS 505 that we ought to feel as members of the international com- munity. This world is very small. It is only 10,00(1 miles to the Philippine Islands, and I am carried Lack, as I look into the face of my brother. Homer Stuntz, to many a plat- form that he and I sat upon in the Philippine Islands and talked about the possibilities of what we might do in develop- ing those islands and bringing those people to a realization of what good government was. I thought your church ought to have established a bishopric out in the Philippines, and we had a candidate out there. I haven't lost hope that von may know a good thing when you see it. But it is true that when you live in the Philippines, 10,000 miles away from here, and meet people coming and going, see people on the streets of Washington that you met in Mindanao, or in Luzon, or in Panay, or in Samar, and shake hands with them as if it were only yesterday when you last saw them, the world does not seem very big around. And so I can understand, though I don't quite have the feeling, that Africa is not so dark, is not so far away from anything that vou would wish to be in when your interest is excited, when your knowledge is full of the 'needs of the 160,000.000 of people who are in that continent, and of the possibilities of developing them into a Christian people who shall learn after a time all the arts of peace, and learn to govern themselves. I confess, if I w r ere a missionary, I would prefer to try my hand in a country like China that has a history of two or three or four or five thousand years, than to go into Africa that hasn't any history at all except that which we trace to the apes. But you can not read the account of the missions thai your church is carrying on in that continent without knowing that there is the seed which is to lead those people on to be useful citizens and useful members of the community and of the world. Now, as I understand it, the Methodist Church has taken the continent in front and rear at Madeira, at Al- giers, in Areola, in Portuguese East Africa, and in Rhodesia, and that there are missions and a stream of them m 506 PRESIDENTIAL ADDRESSES which the practical, sensible methods of modern missionaries have been adopted, and accompanying instruction in the Christian religion and the leading on to Christian civiliza- tion, of lessons in agriculture, in the simple mechanical arts, in primary education, and in leading them on to feel that debt of gratitude which reaches a native's heart as nothing else can, the ministrations of the physician when the dear ones of those native savages seem about to be taken away. The mission is a nucleus and epitome of the civilization that is expected to widen out in that neighborhood. I have heard missions criticized. I have heard men say that they would not contribute to foreign missions at all; that we had wicked people enough at home and we might just as well leave the foreign natives and savages to pursue their own happy lives in the forests and look after our own who need a great deal of ministration. I have come to regard that as narrow-minded as a man who does not like music, who does not understand the things that God has provided for the elevation of the human race. The missionaries in China and the missionaries in Africa are the forerunners of our civilization, and without them we should have no hope of conquering the love and the admiration and the respect of the millions of people whom we hope to bring under the influence of Christian civilization. Those who go for mercantile purposes into those distant lands, I am sorry to say, are quicker to catch the savage tendencies than the savages are to catch from them the basis of our Christian civilization, and if they had to depend for their belief in the good that is to come to them from embrac- ing Christianity and accepting a civilization that we offer them, to that which they learn from the adventurers who go far into the interior to buy things from them at a price much too low and much below what ought to be paid, we should never succeed at all. I speak that with all the sense of moderation that I know I ought to have in dealing with countries so far from here and in saying things that can not be contradicted. If there is anything that promotes lying AND STATE PAPERS 507 and the abuse of imagination, it is the impunity thai a man enjoys in telling a story about something thai happened 25,000 miles away, in a country that you can not reach and from which you don't hear more than once a year. Now, as to these statements that missionaries have an easy time, which have been made by a good many travelers, I remember that a leading correspondent of one of the news- papers wrote a book in which he sought to illustrate and prove it. I am glad to say he has taken it back now, but he described the great houses that the missionaries lived in, the number of servants that they had, and the comfortable life generally that they led, which he said was much more com- fortable than that which they would have had at home; but he did not go into the lives that they really lead; he did not see the work that they had to perform; he did not encounter, he did not know that terrible drain upon the vitality of being so many years away from home and from the people you love, from the communities you love, and the surroundings you love, and if he had been talking about African missions he would not have been able to describe their large houses or their comfortable quarters. A man who goes into Africa as a missionary goes into a place where he must be content to put up with all sorts of sacrifices and a very possible death from the malignant fevers that he is constantly exposed to, unless he goes clear into the interior onto the tablelands. I admire the missionaries who go to India and China and the Philippines, because I know they are doing good work, and I know that they have many sacrifices to make; but the men whom I wish most to commend are those who in the face of all the obstacles that certainly tend to discourage the bravest, enter the dark continent of Africa in an attempt to win those people to Christianity and civilization. Of course, there has been great improvement in Africa; that is, they have surveyed it enough and investigated it enough to divide it up between the European nations. Well I hope that is an improvement. I have no doubt it is. I have no doubt that their governments there have defects as 508 PRESIDENTIAL ADDRESSES other governments have, and have the natural defects that governments so far removed from civilization must have. But it is a sign of progress that the boundaries have been fixed throughout Africa, and that European nations are becoming responsible for the governments in that country. The Unked States has not any territorial interest there. We did make an experiment, or encouraged an experiment some seventy odd years ago in Liberia, and we do have that interest that we ought to have in trying to preserve the integrity of that little Negro republic that was begun so many years ago. But you know, and the nations of the world know, that we are not in Africa to spread our territory. We have enough. Some people think we have a good deal more than enough, but certainly there is no one quite so imperialistic as to desire to share a part of the dark continent; but because we are not going in there to assume the powers of government does not furnish the slightest reason why we should not in every way possible encourage such movements as this under the auspices of other governments, to aid those governments, and to aid the people under those governments in the progress toward Christian civilization. We have the money here and we have the men and women who are willing to make the sacrifice; and those of us who sit back and come every two or three years to hear the stories of what has been done there by representatives of this country, may well afford to be generous in helping out that movement. It is curious to see how the Almighty works His ways. Our interest in Africa for many years was the interest to suppress the slave trade. We were all responsible — New England got out of it a little earlier than the rest — for a time in the encouragement of that trade. And now we have living with us ten millions of people who are descended from the slaves that were taken by force — the Negroes that were taken by force from that dark continent, taken with all the cruelties incident to the middle passage; and yet no one would say that the descendants of those people thus brought here are not to be congratulated on the fact that their ancestors AND STATE PAPERS 509 were brought here, so that they have been able to enjoy the proximity to civilization and are a hundred years In advance of their relatives in Africa; and yet they came here by the greed and the sin of those for whom we, by reason of ancestry, must be responsible. I think that is a very curious working out of the ways of God that no one could have anticipated. It is natural that the Negroes of America, who have had the advantage of an association in a Christian country, with modern civilization, so that they are civilized and educated, should yet retain an intense interest in the development of the continent from which their ancestors came; and I am glad to note the fact that there is an interest among the race, both as to Liberia and the maintenance of that republic, and this missionary movement through the dark continent, to bring all the black races into Christian civilization. Now, my friends, I ought not to have spoken at all to- night on this subject, because I haven't any information about Africa which you do not have; but I have acquired the habit of speaking at foreign mission meetings, and the managers of the meetings think that there is something missing in the support of the Government unless I appear to testify in my insufficient and inadequate way to the interest that the country all has in the success of this movement. Now, my dear friend. Bishop Hartzell I hope has realized what he came here to bring about, and I hope he will take back in his pocket that $300,000 that is necessary to aid him in the great work he is there carrying on. I wish he had $3,000,000 instead of $300,000, but it is a good deal easier to wish it than to get it; and if we have secured $300,000, we ought to be as smiling and as happy as possible in the thought of the good which that will do. LXIV REMARKS AT THE NEW BOWERY MISSION, NEW YORK CITY (December 13, 1909) My Friends: I AM just about as much surprised at being here as you are at seeing me. I had a note from your benefactor, Dr. Klopsch, asking me to come down to a mission which he had established in the Bowery, after the meeting at Car- negie Hall. Now, I have known Dr. Klopsch — well, not very long — but I have known him in a way that perhaps you know him. I know him by what he has done. It has been my fortune in life to play a good deal of the part of a figurehead. Some men do the work and others are figureheads; and nature developed me in such a way that I play a pretty good part as a figurehead. So they put me at the head of the Red Cross, and as the head of the Red Cross I came to know the enormous energy and the tremendous power for good which Dr. Klopsch could exercise through the Christian Herald in raising hundreds of thousands of dollars to relieve human suffering wherever it might be in the world. And so when he wrote and asked me to come here, I was not exactly advised as to where I was coming, except that it was on the Bowery, and I have always had a good deal of curiosity (for I have not lived in New York) to know the Bowery, and I felt certain that where Dr. Klopsch and the Bowery met there would probably be the best part of the Bowery, and so I came here. Now, your superintendent has been good enough to say some complimentary things about my coming from Carnegie Hall down to the Bowery to meet you. I am not conscious of 510 PRESIDENTIAL ADDRESSES 511 deserving any credit for that at all. As I look into your faces I see that you are earnest American citizens. To use a colloquial expression, some of you "down on your luck" perhaps, but nevertheless responding in every fiber of your body to the same sentiments of loyalty and patriotism and love of country and decency and aspirations for better things that I hope every other man in this country has. I am glad to be here, if, by being here and saying so, I can convince you that the so-called chasm between you and people who seem for the time to be more fortunate is not a chasm, and that there is extending over whatever is between you and them a deep feeling of sympathy and a deep earnest desire that you shall have that equality of opportunity, that means of getting onto your feet, of earning your livelihood, of sup- porting your families, f hat we hope every man under the Stars and Stripes may fully enjoy. I am glad to come here and to testify by my presence as to my sympathy with the great work of Dr. Klopsch in this mission by which he shall from time to time and constantly, help you and other men over hard places, help you over the times when things seem desperate, when it seems as if the Lord and everybody else had turned against you — help you over those times to believe that there are people in the world who sympathize with you and wish for better things, and enable you to achieve those better things that the equality of opportunity may, I hope, in this country enable you to achieve. I know it is difficult for you to believe that I, who for the time being am receiving a large salary from the United States and living in comfort, could understand or take into my heart, the feeling that you may have of desperation and of a sense of injustice that you have not had the chance that other men have had; and yet I assure you that, in spite of that seeming difference, your fellow-citizens and mine are not the greedy, oppressive persons that sometimes people would make you believe, but that, more to-day than ever in the history of the world, their hearts are open and their desires 512 PRESIDENTIAL ADDRESSES to help the needy and lift the suffering out of their suffering are greater to-day than ever before and are growing every month. Dr. Klopsch is one of those through whom I hope that thought is being conveyed to you, so that you may not burn with a sense of injustice, but that you may hope on and struggle on with the belief that the future is brighter for you. LXV SPECIAL MESSAGE ON INTERSTATE COMMERCE AND ANTI-TRUST LAWS AND FEDERAL INCORPORATION (JANUARY 7, 1910) To the Senate and House of Representatives: I WITHHELD from my annual message a discussion of needed legislation under the authority which Congress has to regulate commerce between the States and with foreign countries, and said that I would bring this subject- matter to your attention later in the session. Accordingly, I beg to submit to you certain recommendations as to the amendments to the interstate commerce law and certain considerations arising out of the operations of the anti-trust law suggesting the wisdom of Federal incorporation of industrial companies. INTERSTATE COMMERCE LAW In the annual report of the Interstate Commerce Com- mission for the year 1908, attention is called to the fact that between July 1, 1908, and the close of that year sixteen suits had been begun to set aside orders of the' commission (besides one commenced before that date), and that few orders of much consequence had been permitted to go with- out protest; that the questions presented by these various suits were fundamental, as the constitutionality of the act itself was in issue, and the right of Congress to delegate to any tribunal authority to establish an interstate rate was denied; but that perhaps the most serious practical question raised concerned the extent of the right of the courts to review the orders of the commission; and it was pointed out 513 514 PRESIDENTIAL ADDRESSES that if the contention of the carriers in this latter respect alone was sustained, but little progress had been made in the Hepburn Act toward the effective regulation of interstate transportation charges. In twelve of the cases referred to, it was stated, preliminary injunctions were prayed for, being granted in six and refused in six. "It has from the first been well understood," says the commission, "that the success of the present act as a regula- ting measure depended largely upon the facility with which temporary injunctions could be obtained. If a railroad company, by mere allegation in its bill of complaint, sup- ported by ex 'parte affidavits, can overturn the result of days of patient investigation, no very satisfactory result can be expected. The railroad loses nothing by these proceedings, since if they fail it can only be required to establish the rate and to pay to shippers the difference between the higher rate collected and the rate which is finally held to be reason- able. In point of fact it usually profits, because it can sel- dom be required to return more than a fraction of the excess charges collected." In its report for the year 1909 the commission shows that of the seventeen cases referred to in its 1908 report, only one had been decided in the Supreme Court of the United States, although five other cases had been argued and submitted to that tribunal in October, 1909. Of course, every carrier affected by an order of the com- mission has a constitutional right to appeal to a Federal court to protect it from the enforcement of an order which it may show to be prima facie confiscatory or unjustly discriminatory in its effect; and as this application may be made to a court in any district of the United States, not only does delay result in the enforcement of the order, but great uncertainty is caused by contrariety of decision. The questions pre- sented by these applications are too often technical in their character and require a knowledge of the business and the mastery of a great volume of conflicting evidence which is tedious to examine and troublesome to comprehend. It AND STATE PAPERS 515 would not be proper to attempt to deprive any corporation of the right to the review by a court of any order or decree which, if undisturbed, would rob it of a reasonable return upon its investment or would subject it to burdens which would unjustly discriminate against it and in favor of other carriers similarly situated. What is, however, of supreme importance is that the decision of such questions shall be as speedy as the nature of the circumstances will admit, and that a uniformity of decision be secured so as to bring about an effective, systematic, and scientific enforce- ment of the commerce law, rather than conflicting decisions and uncertainty of final result. For this purpose I recommend the establishment of a court of the United States composed of five judges designated for such purpose from among the circuit judges of the United States to be known as the "United States Court of Com- merce," which court shall be clothed with exclusive original jurisdiction over the following classes of cases: (1) All cases for the enforcement, otherwise than by adjudication and collection of a forfeiture or penalty, or by infliction of criminal punishment, of any order of the Interstate Commerce Commission other than for the pay- ment of money. (2) All cases brought to enjoin, set aside, annul, or sus- pend any order of requirement of the Interstate Commerce Commission. (3) All such cases as under section 3 of the act of Febru- ary 19, 1903, known as the "Elkins Act," are authorized to be maintained in a circuit court of the United States. (4) All such mandamus proceedings as under the pro- visions of section 20 or section 23 of the Interstate Commerce Law are authorized to be maintained in a circuit court of the United States. Reasons precisely analogous to those which induced the Congress to create the Court of Custom Appeals by the provisions in the tariff act of August 5, 1909, may be urged in support of the creation of the Commerce Court. 510 PRESIDENTIAL ADDRESSES In order to provide a sufficient number of judges to enable this court to be constituted, it will be necessary to authorize the appointment of five additional circuit judges who for the purposes of appointment, might be distributed to those circuits where there is at the present time the largest volume of business, such as the second, third, fourth, seventh, and eiehth circuits. The act should empower the Chief Justice afanv time when the business of the Court of Commerce does not require the services of all the judges, to reassign the judges designated to that court to the circuits to which they respectively belong; and it should also provide for payment to such judges while sitting by assignment in the Court of Commerce of such additional amount as is necessary to bring their annual compensation up to $10,000. The regular sessions of such a court should be held at the capital, but it should be empowered to hold sessions in different parts of the United States if found desirable; and its orders and judgments should be made final, subject only to review by the Supreme Court of the United States, with the provision that the operation of the decree appealed from shall not be stayed unless the Supreme Court shall so order. The Commerce Court should be empowered in its discretion to restrain or suspend the operation of an order of the Inter- state Commerce Commission under review pending the final hearing and determination of the proceeding, but no such restraining order should be made except upon notice and after hearing, unless in cases where irreparable damage would otherwise ensue to the petitioner. A judge of that court might be empowered to allow a stay of the commis- sion's order for a period of not more than sixty days, but pending application to the court for its order or injunction, then only where his order shall contain a specific finding based upon evidence submitted to the judge making the order and identified by reference thereto, that such irrep- arable damage would result to the petitioner, specifying the nature of the damage. Under the existing law, the Interstate Commerce Com- AND STATE PAPERS 517 mission itself initiates and defends litigation in the eourts tor the enforcement, or in the defense, of its orders and decrees, and for this purpose it employs attorneys who while subject to the control of the Attorney-General, act upon the initiative and under the instructions of the commis- sion. This blending of administrative, legislative, and judicial functions tends, in my opinion, to impair the effi- ciency of the commission by clothing it with partisan charac- teristics and robbing it of the impartial judicial attitude il should occupy in passing upon questions submitted to it. In my opinion all litigation affecting the Government should be under the direct control of the Department of Justice; and I therefore recommend that all proceedings affecting orders and decrees of the Interstate Commerce Commission be brought by or against the United States eo nomine, and be placed in charge of an assistant attorney-general acting under the direction of the Attorney-General The subject of agreements between carriers with respect to rates has been often discussed in Congress. Pooling arrangements and agreements were condemned by the gen- eral sentiment of the people, and, under the Sherman Anti- trusl Law. any agreement between carriers operating in restraint of interstate or international trade or commerce would be unlawful. The Republican platform of 1908 expressed the belief that the Interstate Commerce Law should be further amended so as to give the railroads the right to make and publish traffic agreements subject to the approval of I lie commission, but maintaining always the principle of competition between naturally competing lines and avoid- ing the common control of such lines by any means whatso- ever. In view of the complete control over rate-making and other practices of interstate carriers established by the acts of Congress and as recommended in this communication, I see no reason why agreements between carriers subject to the act. specifying the classifications of freight and the rates, fares, and charges for transportation of passengers and freight which thev may agree to establish, should not 518 PRESIDENTIAL ADDRESSES be permitted, provided copies of such agreements lie promptly filed with the commission, but subject to all the provisions of the Interstate Commerce Act, and subject to the right of any parties to such agreement to cancel it as to all or any of the agreed rates, fares, charges, or classifica- tions by thirty days' notice in writing to the other parties and to the commission. Much complaint is made by shippers over the state of the law under which they are held bound to know the legal rate applicable to any proposed shipment, without, as a matter of fact, having any certain means of actually ascertain- ing such rate. It has been suggested that to meet this griev- ance carriers should be required, upon application by the shipper, to quote the legal rate in writing, and that the shipper should be protected in acting upon the rate thus quoted; but the objection to this suggestion is that it would afford a much too easy method of giving to favored shippers unreasonable preferences and rebates. I think that the law should provide that a carrier, upon written request by an intending shipper, should quote in writing the rate or charge applicable to the proposed shipment under any schedules or tariffs to which such carrier is a party, and that if the party making such request shall suffer damage in consequence of either refusal or omission to quote the proper rate or, in consequence of a misstatement of the rate, the carrier shall be liable to a penalty in some reasonable amount, say two hundred and fifty dollars, to accrue to the United States and to be recovered in a civil action brought by the appropriate district attorney. Such a penalty would compel the agent of the carrier to exercise due diligence in quoting the applicable legal rate, and would thus afford the shipper a real measure of protection, while not opening the way to collusion and the giving of rebates or other unfair discrimination. Under the existing law the commission can only act with respect to an alleged excessive rate or unduly discriminatory practice by a carrier on a complaint made by some individual AND ST ATI-; PAPERS 519 affected thereby. I see no reason why the commission should not be authorized to act on its own initiative as well as upon the complaint of an individual in investigating the fairness of any existing rate or practice; and I recommend the amendment of the law to so provide; and also thai the commission shall be fully empowered, beyond any question, to pass upon the classifications of commodities for the pur- poses of fixing rates, in like manner as it may now do with respect to the maximum rate applicable to any transporta- tion. Under the existing law the commission may not investigate an increase in rates until after it shall have become effective; and although one or more carriers may file with the coin- mission a proposed increase in rates or change in classi- fications, or other alterations of the existing rates or classi- fications, to become effective at the expiration of thirty days from such filing, no proceeding can be taken to investigate the reasonableness of such proposed change until after it becomes operative. On the other hand, if the commission shall make an order finding that an existing rate is excessive and directing it to be reduced, the carrier affected may by proceedings in the courts stay the operation of such order of reduction for months and even years. It has, therefore, been suggested that the commission should be empowered, whenever a proposed increase in rates is filed, at once to enter upon an investigation of the reasonableness of the increase and to make an order postponing the effective date of such increase until after such investigation shall be com- pleted. To this, much objection has been made on the part of carriers. They contend that this would be, in effect, to take from the owners of the railroads" the management of their properties and to clothe the Interstate Commerce Commission with the original rate-making power — a policy which was much discussed at the time of the passage of the Hepburn Act in 11)0.3-0, and which was then and has always been distinctly rejected; and in reply to the suggestion thai they are able' by resorting to the courts to stay the taking 520 PRESIDENTIAL ADDRESSES effect of the order of the commission until its reasonableness shall have been investigated by the courts, whereas the people are deprived of any such remedy with respect to action by the carriers, they point to the provision of the Interstate Commerce Act providing for restitution to the shippers by carriers of excessive rates charged in cases where the orders of the commission reducing such rates are affirmed. It may be doubted how effective this remedy really is. Expe- rience has shown that many, perhaps most, shippers do not resort to proceedings to recover the excessive rates which they may have been required to pay, for the simple reason that they have added the rates paid to the cost of the goods and thus enhanced the price thereof to their customers, and that the public has in effect paid the bill. On the other hand, the enormous volume of transportation charges, the great number of separate tariffs filed annually with the Interstate Commerce Commission, amounting to almost 200,000, and the impossibility of any commission supervis- ing the making of tariffs in advance of their becoming effective on every transportation line within the United States to the extent that would be necessary if their active concurrence were required in the making of every tariff, has satisfied me that this power, if granted, should be con- ferred in a very limited and restricted form. I therefore recommend that the Interstate Commerce Commission be empowered, whenever any proposed increase of rates is filed, at once, either on complaint or of its own motion, to enter upon an investigation into the reasonableness of such change, and that it be further empowered, in its discretion, to post- pone the effective date of such proposed increase for a period not exceeding sixty days beyond the date when such rate would take effect. If within this time it shall determine that such increase is unreasonable, it may then, by its order, either forbid the increase at all or fix the maximum beyond which it shall not be made. If, on the other hand, at the expiration of this time, the commission shall not have com- pleted its investigation, then the rate shall take effect AND STATE PAPERS 521 precisely as it would under the existing law, and the coin- mission may continue its investigation with such results as might be realized under the law as it now stands. The claim is very earnestly advanced by some large associations of shippers that shippers of freight should be empowered to direct the route over which their shipments should pass to destination, and in this connection it has been urged that the provisions of section 15 of the Interstate Commerce Act, which now empowers the commission, after hearing on complaint, to establish through routes and maxi- mum joint rates to be charged, etc., when no reasonable or satisfactory through route shall have been already estab- lished, be amended so as to empower the commission to take such action, even when one existing reasonable and satis- factory route already exists, if it be possible to establish additional routes. This seems to me to be a reasonable provision. I know of no reason why a shipper should not have the right to elect between two or more established through routes to which the initial carrier may be a party, and to require his shipment to be transported to destination over such of such routes as he may designate for that purpose, subject, however, in the exercise of this right to such reasonable regulations as the Interstate Commerce Commission may prescribe. The Republican platform of 1908 declared in favor of amending the Interstate Commerce Law, but so as always to maintain the principle of competition between naturally competing lines, and avoiding the common control of such lines by any means whatsoever. One of the most potent means of exercising such control has been through the hold- ing of stock of one railroad company by another company owning a competing line. This condition has grown up under express legislative power conferred by the laws of many States, and to attempt now to suddenly reverse thai policy so far as it affects the ownership of stocks heretofore so acquired, would be to inflict a grievous injury, not only upon the corporations affected but upon a large body of the invest- 5H PRESIDENTIAL ADDRESSES ment-holding public. I, however, recommend that the law shall be amended so as to provide that from and after the date of its passage no railroad company subject to the Interstate Commerce Act shall, directly or indirectly, acquire any interests of any kind in capital stock, or purchase or lease any railroad of any other corporation which competes with it respecting business to which the Interstate Commerce Act applies. But especially for the protection of the minority stockholders in securing to them the best market for their stock I recommend that such prohibition be coupled with a proviso that it shall not operate to prevent any corporation which, at the date of the passage of such act, shall own not less than one-half of the entire issued and outstanding capi- tal stock of any other railroad company, from acquiring all of the remainder of such stock; nor to prohibit any railroad company which at the date of the enactment of the law is operating a railroad of any other corporation under lease, executed for a term of not less than twenty-five years, from acquiring the reversionary ownership of the demised rail- road ; but that such provisions shall not operate to authorize or validate the acquisition, through stock ownership or otherwise, of a competing line or interest therein in violation of the anti-trust or any other law. The Republican platform of 1908 further declares in favor of such national legislation and supervision as will prevent the future overissue of stocks and bonds by interstate carriers, and in order to carry out its provisions I recommend the enactment of a law providing that no railroad corpora- tion subject to the Interstate Commerce Act shall hereafter for any purpose connected with or relating to any part of its business governed by said act, issue any capital stock without previous or simultaneous payment to it of not less than the par value of such stock, or any bonds or other obligations (except notes maturing not more than one year from the date of their issue), without the previous or simultaneous payment to such corporation of not less than the par value of such bonds, or other obligations, or, if issued at less AND STATE PAPERS 523 than their par value, then not without such payment of the reasonable market value of such bonds or obligations as ascertained by the Interstate Commerce Commission, and that no property, services, or other thing than money shall be taken in payment to such a carrier corpora! ioii, of the par or other required price of such stock, bond, or other obligation, except at the fair value of such property, services, or other thing as ascertained by the commission; and that such act shall also contain provisions to prevent the abuse by the improvident or improper issue of notes maturing at a period not exceeding twelve months from dale, in such a manner as to commit the commission to the approval of a larger amount of stock or bonds in order to retire such notes than should legitimately have been required. Such act should also provide for the approval by the Interstate Commerce Commission of the amount of stock and bonds |o be issued by any railroad company subject to this act upon any reorganization, pursuant to judicial sale or other legal proceedings, in order to prevent the issue of stock and bonds to an amount in excess of the fair value of the properly which is the subject of such reorganization. I believe these suggested modifications in and amendments to the [nterstate Commerce Act would make it a complete and effective measure for securing reasonableness of rates and fairness of practices in the operation of interstate rail- road lines, wilhoul undue preference to any individual or class over any others; and would prevent the recurrence of many of the practices which have given rise in the past to so much public inconvenience and loss. By my direction the Attorney- General has drafted a bill to carry out these recommendations, which will be furnished upon request to the appropriate committee whenever it may be desired. In addition to the foregoing amendments of the Interstate Commerce 1 ,aw, the Interstate Commerce Commission should be given the power, after a hearing, to determine upon the uniform construction of those appliances — such as sill 524 PRESIDENTIAL ADDRESSES steps, ladders, roof handholds, running boards, and hand brakes on freight cars engaged in interstate commerce — used by the trainmen in operation of trains, the defects and lack of uniformity in which are apt to produce acci- dents and injuries to railway trainmen. The wonderful reforms effected in the number of switchmen and trainmen injured by coupling accidents, due to the enforced introduc- tion of safety couplers, is a demonstration of what can be done if railroads are compelled to adopt proper safety appliances. The question has arisen in the operation of the Interstate Commerce Employer's Liability Act as to whether suit can be brought against the employer company in any place other than that of its home office. The right to bring the suit under this act should be as easy of enforcement as the right of a private person not in the company's employ to sue on an ordinary claim, and process in such suit should be suffi- ciently served if upon the station agent of the company upon whom service is authorized to be made to bind the company in ordinary actions arising under State laws. Bills for both the foregoing purposes have been considered by the House of Representatives, and have been passed, and are now before the Interstate Commerce Committee of the Senate. I earnestly urge that they be enacted into law < ANTI-TRUST LAW AND FEDERAL INCORPORATION There has been a marked tendency in business in this country for forty years last past toward combination of capital and plant in manufacture, sale and transportation. The moving causes have been several : First, it has rendered possible great economy; second, by a union of former competitors it has reduced the probability of excessive competition; and, third, if the combination has been exten- sive enough, and certain methods in the treatment of com- petitors and customers have been adopted, the combiners have secured a monopoly and complete control of prices or rates. AND STATE PAPERS A combination successful in achieving complete control over a particular line of manufacture has frequently been called a trust. I presume that the derivation of the word is to be explained by the fact that a usual method of carry- ing out the plan of the combination has been to pul the capi- tal and plants of various individuals, firms, or corporations engaged in the same business under the control of trustees The increase of the capital of a business for the purpose of reducing the cost of production and effecting economy in the management has become as essential in modern prog- ress as the change from the hand tool to the machine When, therefore, we come to construe the object of Congress in adopting the so-called "Sherman Anti-trust Act" in 1890,^ whereby in the first section every contract, combina- tion in the form of a trust or otherwise, or conspiracy in restraint of interstate or foreign trade or commerce, is con- demned as unlawful and made subject to indictment and restraint by injunction; and whereby in the second section every monopoly or attempt to monopolize, and every com- bination or conspiracy with other persons to monopolize any part of interstate trade or commerce, is denounced as illegal and made subject to similar punishment or restraint, we must infer that the evil aimed at was not the mere bigness of the enterprise, but it was the aggregation of capital and plants with the express or implied intent to restrain inter- state or foreign commerce, or to monopolize it in whole or in part. Monopoly destroys competition utterly, and the restraint of the full and free operation of competition has a tendency to restrain commerce and trade. A combination of persons, formerly engaged in trade as partnerships or corporations or otherwise, of course eliminates the competition that existed between them; but the incidental ending of that competition is not to be regarded as necessarily a direct restraint of trade. unless of such an all-embracing character that the intention and effect to restrain trade are apparent from the circum- stances or are expressly declared to be the object of the 526 PRESIDENTIAL ADDRESSES! combination. A mere incidental restraint of trade and competition is not within the inhibition of the act, but it is where the combination or conspiracy or contract is inevi- tably and directly a substantial restraint of competition, and so a restraint of trade, that the statute is violated. The second section of the act is a supplement to the first. A direct restraint of trade, such as is condemned in the first section, if successful and used to suppress competition, is one of the commonest methods of securing a trade monopoly, condemned in the second section. It is possible for the owners of a business of manufacturing and selling useful articles of merchandise so to conduct their business as not to violate the inhibitions of the Anti-trust Law and yet to secure to themselves the benefit of the economies of management and of production due to the con- centration under one control of large capital and many plants. If they use no other inducement than the constant low price of their product and its good quality to attract custom, and their business is a profitable one, they violate no law. If their actual competitors are small in comparison with the total capital invested, the prospect of new invest- ments of capital by others in such a profitable business is sufficiently near and potential to restrain them in the prices at which they sell their product. But if they attempt by a use of their preponderating capital and by a sale of their goods temporarily at unduly low prices, to drive out of busi- iness their competitors, or if they attempt, by exclusive contracts with their patrons and threats of non-dealing except upon such contracts, or by other methods of a similar character, to use the largeness of their resources and the extent of their output compared with the total output as a means of compelling custom and frightening off competi- tion, then they disclose a purpose to restrain trade and to establish a monopoly and violate the act. The object of the Anti-trust Law was to suppress the abuses of business of the kind described. It was not to interfere with a great volume of capital which, concentrated under AND STATE PAPERS 527 one organization, reduced the cost of production and made its profits thereby, and took no advantage of its size by methods akin to duress to stifle competition with it. I wish to make this distinction as emphatic as possible, because I conceive that nothing could happen more destruc- tive to the prosperity of this country than the loss of thai great economy in production which has been and will be effected in all manufacturing lines by the employment of large capital under one management. I do not mean to say that there is not a limit beyond which the economy of management by the enlargement of plant ceases; and where this happens and combination continues beyond this point, the very fact shows intent to monopolize and not to econo- mize. The original purpose of many combinations of capital in this country was not confined to the legitimate and proper object of reducing the cost of production. On the contrary. the history of most trades will show at times a feverish desire to unite by purchase, combination, or otherwise all plants in the country engaged in the manufacture of a particular line of goods. The idea was rife that thereby a monopoly could be effected and a control of prices brought about which would inure to the profit of those engaged in the combination. The path of commerce is strewn with failures of such combinations. Their projectors found thai the union of all the plants did not prevent competition, especially where proper economy had not been pursued in purchase- and in the conduct of the business after the aggre- gation was complete. There were enough, however, of such successful combinations to arouse. the fears of good. patriotic men as to the result of a continuance of this move- ment toward the concentration in the hands of a few of the absolute control of the prices of all manufactured products. The anti-trust statute was passed in 1890 and prosecutions were soon begun under it. In the case of the United Stales v. Knight, known as the "Sugar Trust case," because o\ the narrow scope of the pleadings, the combination sought 528 PRESIDENTIAL ADDRESSES to be enjoined was held not to be included within the pro- hibition of the act, because the averments did not go beyond the mere acquisition of manufacturing plants for the refining of sugar, and did not include that of a direct and intended restraint upon trade and commerce in the sale and delivery of sugar across State boundaries and in foreign trade. The result of the Sugar Trust case was not happy, in that it gave other companies and combinations seeking a similar method of making profit by establishing an absolute control and monopoly in a particular line of manufacture a sense of immunity against prosecutions in the Federal jurisdic- tion; and where that jurisdiction is barred in respect to a business which is necessarily commensurate with the bound- aries of the country, no State prosecution is able to supply the needed machinery for adequate restraint or punishment. Following the Sugar Trust decision, however, there have come along in the slow but certain course of judicial dis- position, cases involving a construction of the anti-trust statute and its application until now they seem to embrace every phase of that law which can be practically presented to the American public and to the Government for action. They show that the Anti-trust Act has a wide scope and applies to many combinations in actual operation, rendering them unlawful and subject to indictment and restraint. The Supreme Court in several of its decisions has declined to read into the statute the word "unreasonable" before "restraint of trade," on the ground that the statute applies to all restraints and does not intend to leave to the court the discretion to determine what is reasonable restraint of trade. The expression "restraint of trade" comes from the common law, and at common law there were certain covenants incidental to the carrying out of a main or prin- cipal contract which were said to be covenants in partial restraint of trade, and were held to be enforcible because "reasonably" adapted to the performance of the main or principal contract. And under the general language used by the Supreme Court in several cases, it would seem that AND STATE PAPERS 529 even such incidental covenants in restraint of interstate trade were within the inhibition of the statute and tnusl be condemned. In order to avoid such a result, I have thoughl and said that it might be well to amend the statute so as to exclude such covenants from its condemnation. A close examination of the later decisions of the court, however, shows quite clearly in cases presenting the exact question, that such incidental restraints of trade are held not to lie within the law and are excluded by the general statemenl that, to be within the statute, the effect of the restraint upon the trade must be direct and not merely incidental or indirect. The necessity, therefore, for an amendment of the statute so as to exclude these incidental and beneficial covenants in restraint of trade held at common law to be reasonable does not exist. In some of the opinions of the Federal circuit judges there have been intimations, having the effect, if sound, to weaken the force of the statute by including within it absurdly unimportant combinations and arrangements, and suggest- ing therefore the wisdom of changing its language by limit- ing its application to serious combinations with intent to restrain competition or control prices. A reading of the opinions of the Supreme Court, however, makes the change unnecessary, for they exclude from the operation of the acl contracts affecting interstate trade in but a small and inci- dental way, and apply the statute only to the real evil aimed at by Congress. The statute has been on the statute book now for two decades, and the Supreme Court in more than a dozen opin- ions has construed it in application to various phases of business combinations and in reference to various subjects- matter. It has applied it to the union under one control of two competing interstate railroads, to joint traffic arrange- ments between several interstate railroads, to private manu- facturers engaged in a plain attempt to control prices and suppress competition in a part of the country, including .1 dozen states, and to many other combinations affecting 530 PRESIDENTIAL ADDRESSES interstate trade. The value of a statute which is rendered more and more certain in its meaning by a series of decisions of the Supreme Court furnishes a strong reason for leaving the act as it is, to accomplish its useful purpose, even though if it were being newly enacted useful suggestions as to change of phrase might be made. It is the duty and the purpose of the Executive to direct an investigation by the Department of Justice, through the grand jury or otherwise, into the history, organization, and purposes of all the industrial companies with respect to which there is any reasonable ground for suspicion that they have been organized for a purpose, and are conducting business on a plan which is in violation of the Anti-trust Law. The work is a heavy one, but it is not beyond the power of the Depart- ment of Justice, if sufficient funds are furnished, to carry on the investigations and to pay the counsel engaged in the work. But such an investigation and possible prosecution of corporations whose prosperity or destruction affects the comfort not only of stockholders but of millions of wage- earners, employees, and associated tradesmen, must neces- sarily tend to disturb the confidence of the business community, to dry up the now flowing sources of capital from its places of hoarding, and produce a halt in our present prosperity that will cause suffering and strained circumstances among the innocent many for the faults of the guilty few. The question which I wish in this message to bring clearly to the consideration and discussion of Con- gress is whether in order to avoid such a possible business danger something can not be done by which these busi- ness combinations may be offered a means, without great financial disturbance, of changing the character, organiza- tion, and extent of their business into one within the lines of the law under the Federal control and supervision, securing compliance with the anti-trust statute. Generally, in the industrial combinations called "trusts," the principal business is the sale of goods in many States and in foreign markets; in other words, the interstate and AND STATE PAPERS ;,:;i foreign business far exceeds the business done in any one State. This fact will justify the Federal Govemmenl in granting a Federal charter to such a combination to make and sell in interstate and foreign commerce the products of useful manufacture under such limitations as will secure a compliance with the anti-trust law. Il is possible so l<> frame a statute that while it offers protection to a Federal company against harmful, vexatious, and unnecessary invasion by the States, it shall subject it to reasonable taxa- tion and control by the States, with respect to its purely local business. Many people conducting great businesses have cherished a hope and a belief that in some way or other a line may be drawn between "good trusts" and "bad trusts/' and that it is possible by amendment to the Anti-trust Law to make a distinction under which good combinations may be per- mitted to organize, suppress competition, control prices, and do it all legally if only they do not abuse the power by taking too great profit out of the business. They point with force to certain notorious trusts as having grown into power through criminal methods by the use of illegal rebates and plain cheating,and by various acts utterly violative of business honesty or morality, and urge the establishment of some legal line of separation by which "criminal trusts" of this kind can be punished, and they, on the other hand, be permitted under the law to carry on their business. Now the public, and especially the business public, ought to rid themselves of the idea that such a distinction is practicable or can be introduced into the statute. Certainly under the present Anti-trust Law no such distinction exists. It has been proposed, however, that the word "reasonable" should be made a part of the statute, and then that it should be left to the court to say what is a reasonable restraint of trade. what is a reasonable suppression of competition, what is a reasonable monopoly. I venture to think that this is to put into the hands of the court a power impossible to exer- cise on any consistent principle which will insure the uni- 532 PRESIDENTIAL ADDRESSES formitv of decision essential to just judgment. It is to thrust upon the courts a burden that they have no precedents to enable them to carry, and to give them a power approaching the arbitrary, the abuse of which might involve our whole judicial system in disaster. In considering violations of the Anti-trust Law we ought, of course, not to forget that that law makes unlawful, methods of carrying on business which before its passage were regarded as evidence of business sagacity and success, and that they were denounced in this act not because of their intrinsic immorality, but because of the dangerous results toward which they tended, the concentration of industrial power in the hands of the few, leading to oppression and injustice. In dealing, therefore, with many of the men who have used the methods condemned by the statute for the purpose of maintaining a profitable business, we may well facilitate a change by them in the method of doing business, and enable them to bring it back into the zone of lawfulness without losing to the country the economy of management by which in our domestic trade the cost of production has been materially lessened and in competition with foreign manufacturers our foreign trade has been greatly increased. Through all our consideration of this grave question, however, we must insist that the suppression of competition, the controlling of prices, and the monopoly or attempt to monopolize in interstate commerce and business, are not only unlawful, but contrary to the public good, and that they must be restrained and punished until ended. I therefore recommend the enactment by Congress of a general law providing for the formation of corporations to engage in trade and commerce among the States and with foreign nations, protecting from them undue interference by the States and regulating their activities, so as to prevent the recurrence, under national auspices, of those abuses which have arisen under State control. Such a law should provide for the issue of stock of such corporations to an AND STATE PAPERS 533 amount equal only to the cash paid in on the stock; and if the stock be issued for property, then al a fair valuation, ascertained under approval and supervision of Federal authority, after a full and complete disclosure of all the facts pertaining to the value of such propcrl y and the interesl therein of the persons to whom it is proposed to issue stock in payment of such property. It should subjeel the real and personal property only of such corporations to I lie same taxation as is imposed by the States within which they may be situated upon other similar properly located therein, anil it should require such corporations to file full and complete reports of their operations with the Departmenl of ( lommerce and Labor at regular intervals. Corporations organized under this act should be prohibited from acquiring and holding stock in other corporations (except for special reasons upon approval by the proper Federal authority), thus avoiding the creation, under National auspices, of the holding company with subordinate corporations in different States, which has been such an effective agency in the creation of the great trusts and monopolies. If the prohibition of the Anti-trust Act against combinations in restraint of trade is to be effectively enforced, it is essential that the National Government shall provide for the creation of national corporations to carry on a legitimate business throughout the United States. The conflicting laws of the different States of the Union with respect to foreign corpora- tions make it difficult, if not impossible, for one corporation to comply with their requirements so as to carry on business in a number of different States. To the suggestion that this proposal of Federal incorpora- tion for industrial combinations is intended to furnish them a refuge in which to continue industrial abuses under Federal protection, it should be said that the measure contemplated does not repeal the Sherman Anti-trust Law and is not to be framed so as to permit the doing of the wrongs which il i^ the purpose of that law to prevent, but only to foster a con- 534 PRESIDENTIAL ADDRESSES tinuance and advance of the highest industrial efficiency without permitting industrial abuses. Such a national incorporation law will be opposed, first, by those who believe that trusts should be completely broken up and their property destroyed. It will be opposed, second, by those who doubt the constitutionality of such Federal incorporation, and even if it is valid, object to it as too great Federal centralization. It will be opposed, third, by those who will insist that a mere voluntary incorporation like this will not attract to its acceptance the worst of the offenders against the anti-trust statute, and who will therefore propose instead of it a system of compulsory licenses for all Federal corporations engaged in interstate business. Let us consider these objections in their order. The Government is now trying to dissolve some of these com- binations, and it is not the intention of the Government to desist in the least degree in its effort to end those combinations which are to-day monopolizing the commerce of this country. Where it appears that the acquisition and concentration of property go to the extent of creating a monopoly or of substantially and directly restraining interstate commerce, it is not the intention of the Government to permit this monopoly to exist under Federal incorporation or to transfer to the protecting wing of the Federal Government a State corporation now violating the Sherman Act. But it is not and should not be, the policy of the Government to prevent reasonable concentration of capital which is necessary to the economic development of manufacture, trade, and com- merce. This country has shown a power of economical production that has astonished the world, and has enabled ns to compete with foreign manufactures in many markets. It should be the care of the Government to permit such con- centration of capital while keeping open the avenues of individual enterprise, and the opportunity for a man or corporation with reasonable capital to engage in business. If we would maintain our present business supremacy, we should give to industrial concerns an opportunity to reorgan- AND STATE PAPERS 535 ize and to concentrate their legitimate capital in ;i Federal corporation, and to carry on their large business within the lines of the law. Second. There are those who doubt the constitutionality of such Federal incorporation. The regulation of interstate and foreign commerce is certainly conferred in the fullest measure upon Congress, and if for the purpose of seining in the most thorough manner that kind of regulation, Con- gress shall insist that it may provide and authorize certain agencies to carry on that commerce, it would seem to be within its power. This has been distinctly affirmed with respect to railroad companies doing an interstate business, and interstate bridges. The power of incorporation has been exercised by Congress and upheld by the Supreme Court in this regard. Why, then, with respect to any other form of interstate commerce like the sale of goods across State boundaries and into foreign commerce, may the same power not be asserted ? Indeed, it is the very fact thai they carry on interstate commerce that makes these great indus- trial concerns subject to Federal prosecution and control. How far as incidental to the carrying on of that commerce it may be within the power of the Federal Government to authorize the manufacture of goods, is perhaps more open to discussion, though a recent decision of the Supreme Court would seem to answer that question in the affirmative. Even those who are willing to concede that the Supreme Court may sustain such Federal incorporation are inclined to oppose it on the ground of its tendency to the enlargement of the Federal power at the expense of the power of the States. It is a sufficient answer to this argument to say that no other method can be suggested which offers Federal protection on the one hand and close Federal supervision on the oilier of these great organizations that are in fad federal because they are as wide as the country and are entirely unlimited in their business by State lines. Nor is the centralization of Federal power under this act likely to be excessive. Only the largest corporations would avail 536 PRESIDENTIAL ADDRESSES themselves of such a law, because the burden of complete Federal supervision and control that must certainly be imposed to accomplish the purpose of the incorporation would not be accepted by an ordinary business concern. The third objection, that the worst offenders will not accept Federal incorporation, is easily answered. The decrees of injunction recently adopted in prosecutions under the Anti-trust Law are so thorough and sweeping that the corporations affected by them have but three courses before them: First, they must resolve themselves into their component parts in the different States, with a consequent loss to them- selves of capital and effective organizations and to the country of concentrated energy and enterprise; or Second, in defiance of law and under some secret trust they must attempt to continue their business in violation of the Federal statute, and thus incur the penalties of contempt and bring on an inevitable criminal prosecution of the individuals named in the decree and their associates; or Third, they must reorganize and accept in good faith the Federal charter I suggest. A Federal compulsory license law, urged as a substitute for a Federal incorporation law, is unnecessary except to reach that kind of corporation which, by virtue of the con- siderations already advanced, will take advantage volun- tarily of an incorporation law, while the other State corpora- tions doing an interstate business do not need the supervision or the regulation of a Federal license and would only be unnecessarily burdened thereby. The Attorney-General, at my suggestion, has drafted a Federal incorporation bill, embodying the views I have attempted to set forth, and it will be at the disposition of the appropriate committees of Congress. LXVI SPECIAL MESSAGE ON THE CONSERVATION OF NATIONAL RESOURCES (JANUARY 14, 1910) To the Senate and House of Representatives: IN MY annual message I reserved the subject of the conservation of our national resources for discussion in a special message as follows: "In several departments there is presented the necessity for legislation looking to the further conservation of our national resources, and the subject is one of such importance as to require a more detailed and extended discussion than can be entered upon in this communication. For that reason I shall take an early opportunity to send a special message to Congress on the subject of the improvement of our water- ways; upon the reclamation and irrigation of arid, semi-arid, and swamp lands; upon the preservation of our forests and the reforesting of suitable areas; upon the reclassification of the public domain with a view to separating from agri- cultural settlement mineral, coal, and phosphate lands and sites belonging to the Government bordering on streams suitable for the utilization of water power." In 1800 we had a public domain of 1,055, 1)11.^88 acres. We have now 731,354,081 acres, confined largely to the mountain ranges and the arid and semi-arid plains. \\ e have, in addition, 308,035,975 acres of land in Alaska. The public lands were, during the earliest administrations, treated as a national asset for the liquidation of the public debt and as a source of reward for our soldiers and sailors. 537 538 PRESIDENTIAL ADDRESSES Later on they were donated in large amounts in aid of the construction of wagon roads and railways, in order to open up regions in the West then almost inaccessible. All the principal land statutes were enacted more than a quarter of a century ago. The homestead act, the preemption and timber-culture act, the coal land and the mining acts were among these. The rapid disposition of the public lands under the early statutes, and the lax methods of distribution prevailing, due, I think, to the belief that these lands should rapidly pass into private ownership, gave rise to the impres- sion that the public domain was legitimate prey for the unscrupulous, and that it was not contrary to good morals to circumvent the land laws. This prodigal manner of dis- position resulted in the passing of large areas of valuable land and many of our national resources into the hands of persons who felt little or no responsibility for promoting the national welfare through their development. The truth is that title to millions of acres of public lands was fraudu- lently obtained, and that the right to recover a large part of such lands for the Government long since ceased by reason of statutes of limitation. There has developed in recent years a deep concern in the public mind respecting the preservation and proper use of our national resources. This has been particularly directed toward the conservation of the resources of the public domain. The problem is how to save and how to utilize, how to conserve and still develop; for no sane person can contend that it is for the common good that Nature's bless- ings are only for unborn generations. Among the most noteworthy reforms initiated by my distinguished predecessor were the vigorous prosecution of land frauds and the bringing to public attention of the necessity for preserving the remaining public domain from further spoliation, for the maintenance and extension of. our forest resources, and for the enactment of laws amending the obsolete statutes so as to retain governmental control over that part of the public domain in which there are valuable AND STATE PAPERS 589 deposits of coal, of oil, and of phosphate, and, in additon thereto, to preserve control, under conditions favorable l<> the public, of the lands along the streams in which the fall of water can be made to generate power to be transmitted in the form of electricity many miles to the point of its use, known as "water-power" sites. The investigations into violations of the public land laws and the prosecution of land frauds have been vigorously continued under my administration, as has been the with- drawal of coal lands for classification and valuation and the temporary withholding of power sites. Since March 4, 1909, temporary withdrawals of power sites have been made on 102 streams, and these withdrawals therefore cover 229 per cent, more streams than were covered by the withdrawals made prior to that date. The present statutes, except so far as they dispose of the precious metals and the purely agricultural lands, are not adapted to carry out the modern view of the best disposition of public lands to private ownership, under conditions offer- ing on the one hand sufficient inducement to private capital to take them over for proper development, with restrictive conditions on the other which shall secure to the public that character of control which will prevent a monopoly or misuse of the lands or their products. The power of the Secretary of the Interior to withdraw from the operation of existing statutes tracts of land the disposition of which under such statutes would be detrimental to the public inter- est, is not clear or satisfactory. This power has been exercised in the interest of the public, with the hope thai Congress might affirm the action of the. Executive by laws adapted to the new conditions. Unfortunately. Congress has not thus far fully acted on the recommendations of the Executive, and the question as to what the Executive is to do is, under the circumstances, full of difficulty. It seems to me that it is the duty of Congress now, by a statute, to validate the withdrawals which have been made by the Secretary of the Interior and the President, and to authorize 540 PRESIDENTIAL ADDRESSES the Secretary of the Interior temporarily to withdraw lands pending submission to Congress of recommendations as to legislation to meet conditions or emergencies as they arise. One of the most pressing needs in the matter of public land reform is that lands should be classified according to their principal value or use. This ought to be done by that Department whose force is best adapted to that work. It should be done by the Interior Department through the Geological Survey. Much of the confusion, fraud, and contention which has existed in the past has arisen from the lack of an official and determinative classification of the public lands and their contents. It is now proposed to dispose of agricultural lands as such, and at the same time to reserve for other disposition the treas- ure of coal, oil, asphaltum, natural gas, and phosphate con- tained therein. This may be best accomplished by separating the right to mine from the title to the surface, giving the neces- sary use of so much of the latter as may be required for the extraction of the deposits. The surface might be disposed of as agricultural land under the general agricultural statutes, while the coal or other mineral could be disposed of by lease on a royalty basis, with provisions requiring a certain amount of development each year; and in order to prevent the use and cession of such lands with others of similar character so as to constitute a monopoly forbidden by law, the lease should contain suitable provision subjecting to forfeiture the interest of persons participating in such monopoly. Such law should apply to Alaska as well as to the United States. It is exceedingly difficult to frame a statute to retain gov- ernment control over a property to be developed by private capital in such manner as to secure the governmental purpose and at the same time not to frighten away the investment of the necessary capital. Hence, it may be necessary by laws that are really only experimental to determine from their practical operation what is the best method of securing the result aimed at. AND STATE PAPERS . , 1 1 The extent of the value of phosphate is hardly realized, and with the need that there will be for il as the years roll on and the necessity for fertilizing the land shall become more acute, this will be a product which will probably attract the greed of monopolists. With respect to the public land which lies along the si reams offering opportunity to convert water power into transmis- sible electricity, another important phase of the public- land question is presented. There are valuable water-power sites through all the public-land States. The opinion is held that the transfer of sovereignty from the Federal Gov- ernment to the territorial governments as they become States, included the water power in the rivers except so far as that owned by riparian proprietors. I do not think it necessary to go into discussion of this somewhat mooted question of law. It seems to me sufficient to say that the man who owns and controls the land along the stream from which the power is to be converted and transmitted, owns land which is indispensable to the conversion and use of that power. I can not conceive how the power in streams flowing through public lands can be made available at all except by using the land itself as the site for the construction of the plant by which the power is generated and converted and securing a right of way thereover for transmission lines. Under these conditions, if the Government owns the adja- cent land — indeed, if the Government is the riparian owner — it may control the use of the water power by imposing proper conditions on the disposition of the hind necessary in the creation and utilization of the water power. The development in electrical appliances for the conver- sion of the water power into electricity to be transmitted long distances has progressed so far that it is no longer problematical, but it is a certain inference that in the future the power of the water falling in the streams to ;i large extent will take the place of natural fuels. In the disposition of the domain already granted, many water- power sites have come under absolute ownership, and may 542 PRESIDENTIAL ADDRESSES drift into one ownership, so that all the water power under private ownership shall be a monopoly. If, however, the water-power sites now owned by the Government — and there are enough of them — shall be disposed of to private persons for the investment of their capital in such a way as to prevent their union for purposes of monopoly with other water-power sites, and under conditions that shall limit the right of use to not exceeding fifty years, with proper means for determining a reasonable graduated rental, and with some equitable provision for fixing terms of renewal, it would seem entirely possible to prevent the absorption of these most useful lands by a power monopoly. As long as the Government retains control and can prevent their improper union with other plants, competition must be maintained and prices kept reasonable. In considering the conservation of the natural resources of the country, the feature that transcends all others, includ- ing woods, waters, minerals, is the soil of the country. It is incumbent upon the Government to foster by all available means the resources of the country that produces the food of the people. To this end the conservation of the soils of the country should be cared for with all means at the Government's disposal. Their productive powers should have the attention of our scientists that we may conserve the new soils, improve the old soils, drain wet soils, ditch swamp soils, levee river overflow soils, grow trees on thin soils, pasture hillside soils, rotate crops on all soils, discover methods for cropping dry-land soils, find grasses and legumes for all soils, feed grains and mill feeds on the farms where they originate, that the soils from which they come may be enriched. A work of the utmost importance to inform and instruct the public in this chief branch of the conservation of our resources is being carried on successfully in the Department of Agriculture; but it ought not to escape public attention that State action in addition to that of the Department of Agriculture (as for instance in the drainage of swamp lands) AND STATE PAPERS 543 is essential to the best treatment of the soils in the manner above indicated. The act by which, in semi-arid parts of the public domain, the area of the homestead has been enlarged from 160 to 320 acres has resulted most beneficially in the extension of "dry farming," and in the demonstration which has been made of the possibility, through a variation in the character and mode of culture, of raising substantial crops without the presence of such a supply of water as heretofore has been thought to be necessary for agriculture. But there are millions of acres of completely arid land in the public domain which, by the establishment of reservoirs for the storing of water and the irrigation of the lands, may be made much more fruitful and productive than the besl lands in a climate where the moisture comes from the clouds. Congress recognized the importance of this method of artificial distribution of water on the arid lands by the passageof the Reclamation Act. The proceeds of the public lands create the fund to build the works needed to store and furnish the necessary water, and it was left to the Secre- tary of the Interior to determine what projects should he selected among those suggested, and to direct the Reclama- tion Service, with the funds at hand and through the engineers in its employ, to construct the works. No one can visit the Far West and the country of arid and semi-arid lands without being convinced that this is one of the most important methods of the conservation of ( un- natural resources that the Government has entered upon. It would appear that over thirty projects have been under- taken, and that a few of these are likely to be unsuccessful because of lack of water, or for other reasons, but generally the work which has been done has been well done, and many important engineering problems have been met and solved. One of the difficulties which have arisen is that too many projects in view of the available funds have been set on foot. The funds available under the reclamation statute are inadequate to complete these projects within a reasonable 544 PRESIDENTIAL ADDRESSES time. And yet the projects have been begun; settlers have been invited to take up and, in many instances, have taken up, the public land within the projects, relying upon their prompt completion. The failure to complete the projects for their benefit is, in effect, a breach of faith and leaves them in a most distressed condition. I urge that the nation ought to afford the means to lift them out of the very desper- ate condition in which they now are. This condition does not indicate any excessive waste or any corruption on the part of the Reclamation Service. It only indicates an overzealous desire to extend the benefit of reclamation to as many acres and as many States as possible. I recommend, therefore, that authority be given to issue not exceeding $30,000,000 of bonds from time to time, as the Secretary of the Interior shall find it necessary, the proceeds to be applied to the completion of the projects already begun and their proper extension, and the bonds running ten years or more to be taken up by the proceeds of returns to the reclamation fund, which returns, as the years go on, will increase rapidly in amount. There is no doubt at all that if these bonds were to be allowed to run ten years, the proceeds from the public lands, together with the rentals for water furnished through the completed enterprises, would quickly create a sinking fund large enough to retire the bonds within the time speci- fied. I hope that, while the statute shall provide that these bonds are to be paid out of the reclamation fund, it will be drawn in such a way as to secure interest at the lowest rate, and that the credit of the United States will be pledged for their redemption. I urge consideration of the recommendations of the Sec- retary of the Interior in his annual report for amendments of the Reclamation Act, proposing other relief for settlers on these projects. Respecting the comparatively small timbered areas on the public domain not included in national forests because of their isolation or their special value for agriculture or AND STATE PAPERS 545 mineral purposes, it is apparent from the evils resulting by virtue of the imperfections of existing laws for the disposi- tion of timber lands, that the acts of June 3, 1878, should be repealed and a law enacted for the disposition of the timber at public sale, the lands after the removal of the timber to be subject to appropriation under the agricultural or mineral land laws. What I have said is really an epitome of the recommenda- tions of the Secretary of the Interior in respeel to the future conservation of the public domain in his presenl annual report. He has given close attention to ilie problem of disposition of these lands under such conditions as to invite the private capital necessary to their development on the one hand, and the maintenance of the restrictions necessary to prevent monopoly and abuse from absolute ownership <>n the other. These recommendations are incorporated in bills he has prepared, and they are at the disposition of tin- Congress. I earnestly recommend that all the suggestions which he has made with respect to these lands shall be embodied in statutes, and, especially, that the withdrawals already made shall be validated so far as necessary, and that the authority of the Secretary of the Interior to withdraw lands for the purpose of submitting recommendations as to future disposition of them where new legislation is needed shall be made complete and unquestioned. The forest reserves of the United States, some 190,000,000 acres in extent, are under the control of the Department of Agriculture, with authority adequate to preserve them and to extend their growth so far as that may be practicable. The importance of the maintenance of our forests can not be exaggerated. The possibility of a scientific treatment of forests so that they shall be made to yield a large return in timber without really reducing the supply has been demon- strated in other countries, and we should work toward the standard set by them as far as their methods are applicable to our conditions. Upward of 400,000,000 acres of forest land in this country 548 PRESIDENTIAL ADDRESSES are in private ownership, but only 3 per cent, of it is being treated scientifically and with a view to the maintenance of the forests. The part played by the forests in the equaliza- tion of the supply of water on watersheds is a matter of discussion and dispute, but the general benefit lo be derived by the public from the extension of forest lands on watersheds and the promotion of the growth of trees in places that are now denuded and that once had great flourishing forests, goes without saying. The control to be exercised over private owners in their treatment of the forests which they own is a matter for State and not national regulation, because there is nothing- in the Constitution that authorizes the Fed- eral Government to exercise any control over forests within a State, unless the forests are owned in a proprietary way by the Federal Government. It has been proposed, and a bill for the purpose passed the lower house in the last Congress, that the National Government appropriate a certain amount each year out of the receipts from the forestry business of the Governn»ent to institute reforestation at the sources of certain navigable streams, to be selected by the Geological Survey, with a view to determining the practicability of thus improving and protecting the streams for Federal purposes. I think a mod- erate expenditure for each year for this purpose, for a period of five or ten years, would be of the utmost benefit in the development of our forestry system. I come now to the improvement of the inland waterways. He would be blind, indeed, who did not realize that the people of the entire West, and especially those of the Missis- sippi Valley, have been aroused to the need there is for the improvement of our inland waterways. The Mississippi River, with the Missouri on the one hand and the Ohio on the other, would seem to offer a great natural means of interstate transportation and traffic. How far, if properly improved, they would relieve the railroads or supplement them in respect to the bulkier and cheaper commodities is a matter of conjecture. No enterprise ought to be undertaken AND STATE PAPERS I, the cost of which is not definitely ascertained and the benefil and advantages of which are not known and assured by competent engineers and other authority. When, however, a project of a definite character for the improvemenl of a waterway hi*8 been developed so that the plans have been drawn, the cost definitely estimated, and the traffic which will be accommodated is reasonably probable, I think it is the duty of Congress to undertake the project and make provision therefor in the proper appropriation bill. One of the projects which answer the description I have given is that of introducing dams into the Ohio River from Pittsburg to Cairo, so as to maintain at all seasons of the year, by slack water, a depth of nine feet. Upward of seven of these dams have already been constructed and six are under construction, while the total required is fifty-four. The remaining cost is known to be $63,000,000. It seems to me that in the development of our inland water- ways it would be wise to begin with this particular project and .carry it through as rapidly as may be. I assume from reliable information that it can be constructed economically in twelve years. What has been said of the Ohio River is true in a less complete way of the improvement of the upper Mississippi from St. Paul to St. Louis, to a constant depth of six feet, and of the Missouri, from Kansas City to St. Louis, to a constant depth of six feet and from St. Louis to Cairo to a depth of eight feet. These projects have been pronounced practical by competent boards of army engineers, their cost has been estimated, and there is business which will follow the improve- ment. I recommend, therefore, that the present Congress, in the river and harbor bill, make provision for continuing contracts to complete these improvements. As these improvements are being made, and the traffic encouraged by them shows itself of sufficient importance, the improvement of the Mississippi beyond Cairo down to the Gulf, which is now going on with the maintenance of a depth 548 PRESIDENTIAL ADDRESSES of nine feet everywhere, may he changed to another and greater depth if the necessity for it shall appear to arise out of the traffic which can be delivered on the river at Cairo. I am informed that the investigation by the Waterways Commission in Europe shows that the existence of a water- way by no means assures traffic unless there is traffic adapted to water carriage at cheap rates at one end or the other of the stream. It also appears in Europe that the depth of the non-tidal streams is rarely more than six feet, and never more than ten. But it is certain that enormous quantities of merchandise are transported over the rivers and canals in Germany and France and England, and it is also certain that the existence of such methods of traffic materially affects the rates which the railroads charge, and it is the best regu- lator of those rates that we have, not even excepting the governmental regulation through the Interstate Commerce Commission. For this reason, I hope that this Congress will take such steps that it may be called the inaugurator of the new system of inland waterways. For reasons which it is not necessary here to state, Congress has seen fit to order an investigation into the Interior Depart- ment and the Forest Service of the Agricultural Department. The results of that investigation are not needed to determine the value of, and the necessity for, the new legislation which I have recommended in respect to the public lands and in respect to reclamation. I earnestly urge that the measures recommended be taken up and disposed of promptly, with- out awaiting the investigation which has been determined upon. LXVII ADDRESS BEFORE THE NATIONAL CIVIC FEDER- ATION AT THE BELASCO THEATRE, WASHINGTON, D. C. (JANUARY 17, 1910) Mr, President, Ladies and Gentlemen: IN THE first place, I am glad to welcome the Civic Federa- tion to Washington. I think the sun shines a little brighter in Washington than it does anywhere else along on the same latitude, and it is a very pleasant place either to live in or to be in; and therefore, I congratulate the Civic- Federation on having had the good sense to come here. You are not the only citizens of the United States who look in this direction. I am glad that you came here at the same time that the Governors did, so that your deliberations and theirs in the same direction, and the right direction, as they doubtless will be, will have the weight of two great forces, not only upon the National Legislature, but upon the State legislatures, for from Washington everything radiates to the ends of the country. In the discussion of uniformity of legislation, when you take a man who has gotten out of the practice of the law, so that he does not remember with great exactitude those principles that are applied in actual cases, he can not help falling back on a discussion of the Constitution. The constitutional lawyer is a gentleman who has gotten out of the practice and who has gone into politics. Now, my friend, Senator Root, whom I am delighted to class with me in the same category, some years ago was greatly misunderstood with reference to his view of the Constitution 549 550 PRESIDENTIAL ADDRESSES and the trend under the Constitution toward centralization of o-overnment. If I understood him, his view was that, unless the States did their duty in the exercise of the functions which it was necessary they should exercise in the interest of o-ood government, there would be a tendency toward the enlargement of the Government at Washington; and he uttered a warning to the States that if they would retain the power given to them under the Constitution in all its integrity, they must see to it that they exercised that power in the in- terest of the people and in the interest of the country generally. The misunderstanding led to ascribing to him views in favor of centralization that would certainly have been most radical, but I am sure he does not have them. We have a nation and we have a centralized government, and the reason why we have it is because John Marshall was put at the head of the Supreme Court early and exercised that power which a good judge always exercises with his col- leagues. He did not minimize the power of the Supreme Court to construe that Constitution authoritatively. And so construing it, he made this a nation with all the powers incident to a nation. And then when he left the Bench, after that long period of useful service, he was succeeded by Chief Justice Taney and his associates, and at that time the trend toward national power and authority of the party, from which Chief Justice Taney was selected, led him right along the same path that Marshall had marked out, until we came to the war. And then with the war amendments, the same tendency to make this government a Nation as dis- tinguished from a Federation, continued to the present day. Now, it is said that we have centralized too much. There are jurisdictions which might be asserted under the Con- stitution that Congress has not asserted, notably in the jurisdiction of the Federal courts. So. too, in bankruptcy; so, too, in elections. With respect to the jurisdiction of the Federal courts, there is a large measure which Congress does not assert which it might take away from that which the State courts now exercise. And so, with respect to bankruptcy, AND STATE PAPERS .,,1 it might be made much more exclusive of Stale jurisdiction in that regard, and with respect to elections, they have gone back entirely to the States. There are other matters under the Constitution which I shall not stop to mention, which show that all the power conferred upon the National Government has no! vet been exercised; but the reason why it seems as if we were becoming a more centralized government is not because of a change in the construction of the Constitution, but a change in the importance of the power which was always given to tin- National Government under that Constitution, to wit : tin- interstate commerce clause. When the Constitution was framed, the state traffic as distinguished from the interstate traffic was as 25 to 75, and now, instead, the interstate traffic is to the state traffic as 75 to 25 — a complete reversal of the amount of interstate business done as compared with the state business. And that is the reason why the National government's power seems to have grown so largely because its power covers more volume than it ever did before. With respect to that, I am inclined to think that it will be found wise after a time to recognize these great organizations, concentrations of wealth, and plant and capital that do a country-wide business, going into every State, whose business is almost wholly interstate, to recognize them as instrumental- ities of interstate commerce and to incorporate them in order that we may get them more directly under the control of the National Government. I admit there is ground for dispute, and I have only recommended this as something that I look forward to in the future as a means of saving to the public what is valuable; as there is a great deal that is valuable in those trusts, and eliminating permanently that which is vicious and con- trary to public policy. But you are not Congress, and I did not come here to convince you on that subject. I only mention it in passing. There has been, during the last ten or fifteen years, an earnest desire on the part of some people to minimize State 552 PRESIDENTIAL ADDRESSES power altogether. They say — I heard the distinguished Governor of Massachusetts say, the United States can better regulate child labor than can the States — so what's the use of talking! Why not put that power into the United States Government ? And so, with reference to every power, the suggestion is that the Central Government has more capi- tal; being more centralized, its execution of the laws is more certain and less affected by local conditions, and therefore it is wise in the interest of effective government to put what we can in the Central Government. Therefore we invoke the old "general welfare clause." We have got the money in the Treasury, and we can spend the money there for anything we choose, because there is no court to prevent i]L, We cannot issue an injunction against the Secretary of the Treasury dishonoring an appropriation of Congress. And when it comes to the expenditure of money, the history of the United States is full of appropriations and expenditures that can not be explained on any ground except that of old '* General Welfare." And the way they propose to ex- pend it when there is a particular subject that needs attention is to organize a bureau, and let that bureau occupy an advisory relation and experimental relation to the States in the exercise of that jurisdiction which is undoubtedly theirs. They have got to a point where, just before I sent in my message, in the list of bureaus that was asked for was a bureau on earthquakes. I assume that the argument was that as earthquakes did not know any State bounds neither did the exercise of jurisdiction with respect to them know any State bounds. Now, the lesson that this teaches is that we have a Con- stitution by which the Government of the United States can not accomplish all reform, and that there is a burden and there is a heavy responsibility, eloquently described by Mr. Root, upon the States with reference to meeting the demands of those who call themselves progressive, and who are in favor of the reforms to uplift the people and to make the comfort of the individual greater. IIS AND STATE PAPERS In no department of government, in no reform, is 1 1.. uniformity of legislation going to be more importanl than in the conservation of our resources. The Federal Governmenl has no power to compel owners of forests to attend to those forests with a view to the welfare of the community, of the neighbors who live there, or of those who are affected by the denudation of the land of the trees. Thai must be done through the State government if it is done at all. And so with respect to many of the streams. Indeed, if one follows out legal reasoning, it will seem, I think, that there is more to be done by the States in the conservation of resources even than by the Federal Government, large an influence as that Federal Government may have by reason of its owner- ship of the public domain. Now there are many other subjects that ought to occupy the States with reference to uniform legislation. If I had been a member of the Constitutional Convention, I would have voted to have included marriage and divorce in the Federal jurisdiction, but it will never get there now. The theory upon which they put in bankruptcy was that where a man was declared a bankrupt it fixed his status, and that status ought not to vary in one State from the status in another. But when a man is married, he has established a status and certainly that status ought not to vary between the States, but as it is not possible to secure an amendment to the United States Constitution placing that subject within Federal cognizance, it certainly calls for uniform legislation on the part of the States. I state that because I think every- body will agree with me. Then I am not going on to say what kind of legislation there ought to be, because I am told that in that discussion as yet even the Civic Federation has not reached a result. Then there is another subject upon which there may well be uniformity of legislation after we, in the Federal Government, have adopted a proper system, and that is with respect to judicial procedure. If there is anything in our whole Government, state and national, that justifies 554 PRESIDENTIAL ADDRESSES an attack upon our present system of living, it is the delays in our judicial procedure, and the advantage that wealth gives in the struggle in the courts against those who have not the means to meet the expense that is now imposed on them. If we can do something in the National Government to introduce the simplicity of .the English procedure in equity and in law, perhaps uniting them, that will be a model for State legislatures in adopting a uniform system. I might go on with respect to other subjects; I have said a good deal more than I intended to, and I have only — so to speak — "shot on the wing"; but if you had to write a message a week perhaps you would only write when you have to. LXVI1I ADDRESS AT THE CONFERENCE OF GOVERN- ORS IN THE EAST ROOM OF THE WHITE HOUSE (JANUARY 18, 1910) My dear Fellow Executives and Fellow Sufferers: 1AM delighted to greet you in the White House. I should have been glad to have had you here during all your sessions so that you might have made the White House your headquarters, but in discussing this matter with the committee it occurred to them, and it occurred to me, thai it would possibly be better for you to hold your sessions in a neutral place, so to speak, where you would feel i non- independent, and where doubtless things could be said and things could be done which perhaps might be a little embarrassing in doing when you were under the Executive shadow. When you were here before, Mr. Roosevelt, I think, extended to you the hospitality of the White House, and the meetings were held here, but those meetings were so fully his, in the sense of being called by him, that it seemed entirely appropriate; whereas now, I hope this is a movement among the Governors to have some sort of a permanent arrangement that shall bring them here without suggestion from any one but the Governors themselves. For my own comfort, it would have been better if the Civic Federation and the Governors had united in the initial meeting, for I made a speech yesterday and said all I could think of saying on the general subject that called you here. You are here for the purpose of considering those subjects 555 556 PRESIDENTIAL ADDRESSES for laws in respect to which the legislation of the States ought to be uniform; and to take that course of making up for what some people point out as defects of the Federal Constitution, in that it does not give jurisdiction to the Federal Govern- ment with respect to certain purposes which can only be accomplished by joint action of the States. I regard this movement as of the utmost importance. The Federal Constitution has stood the test of more than one hundred years in supplying the powers that have been needed to make the Central Government as strong as it ought to be, and with this movement toward uniform legislation and agreement between the States I do not see why the Con- stitution may not serve our purpose always. I speak to you as gentlemen who can influence legislation in the States, and who are in a sense responsible for it. That brings up a thought which I am sure you have had in common with me. I have no doubt each of you receives letters indicating that the writer thinks that you, with your good right hand, pass laws, and that without any further ceremony; and that you are entirely responsible for all the legislation that is enacted by the State legislatures. The States differ somewhat, but generally the Executive has the veto power and has that sort of relation to the legislature that the Chief Executive of the United States has toward Congress. I have found — per- haps you have found — that when people want legislation they felt that the Executive did not exercise as much control over the legislation as he ought to, and that when they did not want legislation he exercised altogether too much power. I have thought that the English system presents in certain ± spects a better system than ours in view of inevitable responsibility of the Executive for legislation, because there the Executive is not only the executive but also has control over the legislative action of the Government, leads the legislature, and indeed goes out when as the party head he is not able to control the majority of the legislature. It seems to me, without ever hoping or suggesting that AND STATE PAPERS 55-3 there can be any change in our system for its rigidity has advantages — that still that system would presenl a good many opportunities that you and I would like to seize upon and argue out questions to the legislature, and nol «,nK to argue out ^ questions but to save them time by giving them considerable information on subjects in regard to which they are not advised. It shortens, lam sure, the course of legislation — but we haven't that system, we haven't it in any State, and we are not going to have it, so there is no need of mourning over the fact that we can not have it. I am only speaking to you as executives who have felt the injustice of that sort of criticism that comes from the lack of that feature of the English system I have pointed out. You are the titular head of the party perhaps of your Stale, and you are made responsible for everything that is done by the party, although you may not be able by any declared legal way to control it, and therefore you have to use those influences, personal and otherwise, that are legitimate, to bring about the legislation for which the party of which you are to be the head has to be responsible. It is because you do have such great influence in molding legislation, that your meeting to secure uniformity of laws is so important and significant. I should like to sit down and talk over with each one of you some of your experiences and to know how you bring about a successful arrangement of things. I should like l<> talk w T ith my friend from Ohio as to how he gets along with a Republican legislature. I could tell him thai there are troubles even when you have a Congress that is - ominally of your own party. Gentlemen, I am delighted to welcome you here — delighted to hope and feel that this is the beginning of con- ferences which are certain to lead in the end to an adjustment of State legislation that shall make our country capable of doing so much more team work in the public good than we ever have before thought possible. 558 [PRESIDENTIAL ADDRESSES I hope to have the pleasure of seeing you all to-night in the White House and of meeting you to-morrow night again. The trip down the Mississippi River, and my trip through the country, gave me the opportunity to meet most of the governors of the States, and it is a great pleasure, I assure you, to renew the acquaintance thus so pleasantly begun. LXIX REMARKS AT THE BANQUET OF THE WASH- INGTON CORRAL OF THE MILITARY ORDER OF THE CARABAOS, NEW WILLARD HOTEL, WASHINGTON, D. C. (JANUARY 22, 1910) Mr. Carabao Paramount and other Carabaos, and those of us who are permitted to enjoy your hospitality: I AM sony to say that this is the first time I have had the privilege of attending a Carabao dinner. I am also sorry to say, if I understand the situation, thai I havenol been pressed to come to other dinners until this one because of the reforms that you have initiated so as to be certain that now a dinner shall be "dull and respectable." I don'i know whether it was with that in his mind that your presiding officer called on "my Brother Tillman" to open the ball; but after Brother Tillman got to work, the presiding officer looked to me like that farmer who yoked himself with a heifer and, when they started down the hill, overcome with the error he had made, said, "Here we conic, damn our fool souls, won't somebody stop us?" I don't know whether he struck the bottom yet or not, but in the interest of humanity I am going to do the best I can to head off that team. Now my friend, the distinguished Senator from South Carolina, I have known well, have been glad to know, have been honored by his friendship, and I want to assure yon that he is a good deal better fellow than you sometimes think from what he says. He is not always one who sits and talks, thinking about the race question and miscegenation and amalgamation and that sort of thing. He does have other thoughts, but when he gets on his feet and starts on 559 560 PRESIDENTIAL ADDRESSES that slippery subject, it requires a good deal of force or a good deal of poise to keep him from going farther than he really wanted to go himself. Now he tells my friend from Cuba that we are going to annex Cuba. Well, I don't think so. He thinks that because Cuba has a race question, we have got to mix their race question with our race question and have a sort of result with sulphur rising from it that is going to consume the world. I don't believe that. I don't believe the Senator does, except as these words roll from his lips, and they have rolled from his lips now since '99 on the Senate floor, and from the stump, and have never accomplished anything in the election, and yet he can not get over it. The Philippine question or the Philippines as a subject present themselves to me in two different lights — in three perhaps: One in the picturesqueness of the reminiscences that come to you as you look back to the three or four years of life that you spent in that beautiful country under con- ditions sometimes of privation, sometimes of discomfort; but the discomfort, the privations disappear in your memory; and when the beauties and the strangeness of those islands and the life in them come back to you, and you do feel — I feel it myself — I know it exists, that "Call of the East" that Kipling speaks of in his poem, that makes you yearn to be back again on that beautiful Luneta in Manila, and see the sun go down over the mountains of Marivailes — a pic- ture matchless in all its coloring rises in your memory to make you thank God that you have had the opportunity to be there. Now in the history of our stay in the Philippines there were times when the army was to the front, when nothing but war was there; when the Filipino fighting as best he could and taking the instruments that the Lord had given him, among which were stealth and easy change from being a friend to an enemy and back again — there arose between the army and those little people a feeling of enmity, a feeling of contempt on the part of the American soldier for soldiers who would resort to the ruses that they resorted to, and AND STATE PAPERS .-,.,1 which led to the killing f our brave men. It was inevitable that for a time a bitterness should exisl a..«I a contempl arise that should find its expression in some of these poems to which my friend the Senator has referred. Then you came, after the war disappeared, into contact with thai people, and found them after all a simple people, a ...wile, mis people, a people under the influence of the tropical sun, not too energetic, but a people who, childlike in their depend- ence, if they gave it to you, could win your affections a. few people could — at least that is the way I felt. I know they had a verse out there, "He may be "a brother of William H. Taft, but he ain't no friend of mine"; but that Mas because I occupied a different relation to him from thai which the army occupied toward him. Then there comes what the army did there. Mv friend, the Senator, thinks it was nothing to be proud of. That is because my friend the Senator does not know what the army did, and what the navy did in a less way. It was upon the army that there fell the burden of eliminating an insur- rection that extended the islands' full length, and they had to be divided up into five hundred different posts and they had to put small detachments of the army under command of lieutenants and second lieutenants, and even sergeants, and trust to the ability of the non-commissioned officer and the young commissioned officers to carry on independent cam- paigns in the neighborhood of the post to which they were assigned in stamping out this insurrection. No army, and I assert it without any fear of contradiction, could have offered that knowledge, that independence of judgment. that self-reliance on the part of those young officers that enabled it as a whole ultimately and quietly and soflh and — I had almost said — peaceably to bring about a condition of pacification in the islands and to stamp out an insurrection so difficult to overcome. And in those campaigns there was an opportunity for individual bravery and courage that is not exceeded by any opportunity in the Civil War or any other war that this country was engaged in. 562 PRESIDENTIAL ADDRESSES And this Signal Corps which was referred to to-night in a jocular way, may point to a record of loss in death and wounds in those islands that I think has been equaled by no other signal corps, and perhaps by no other corps in any other army. Now the Senator says that he has been allowed to think, but the officers of the army have not been. Well, I confess that under the circumstances, with the result of the fight, I think the army is ahead of the Senator. What we went to the Philippines to do was to defeat the fleet of an enemy in a war that was begun as no other war in the history of the world — no other foreign war — from pure altruism; and we got into the islands and we had them on our hands before we knew what the consequences were to be. And when they came into our hands there seemed to us ■ — - at least to those of us who were responsible — and my friend the Senator has had the advantage for the last fifteen years — I hope he may continue to have it for fifteen years — of not being at all responsible for the Government — the obligation of doing the right thing. The question was, "What are we going to do?" Are we going to let those islands go into chaos; are we going to turn them back to Spain with the charges against the domination of Spain that were made? Or are we to take them ourselves and develop them as best we may under our institutions ? Now my friend the Senator is troubled about taxation without representation, and about the Declaration of Independence. I am not going into those arguments and I am not going to point out to my friend the Senator some of the most glaring instances that I could point out in his view of the Constitution in South Carolina and his view of the Philippines. What I do say is, and I say it with a knowledge of McKinley, and I know the Senator and I share in the respect for President McKinley's memory, that President McKinley went into those islands with great reluctance and assumed the burdens which were most heavy to him of introducing a government there which should be the best for the islands. Now, of course it is a matter of AND STATE PAPERS .,.,:; dispute how good a government we have there. Having taken part in its formation, perhaps it is improper or at least I speak as a prejudiced witness bul I believe thai the ten years of government in the Philippines has made thai people a far happier people than they would have been under any other conditions that might have been presented by our taking a different course. They enjoy to-day a free trade tariff on the one hand and the right to sell in a pro- tected market on the other. That was long coming, bul we have ultimately secured it. We have saved the rice of our friend the Senator from South Carolina. We were asked to stave off a little bit of the injury to the tobacco and the sugar of other parts of the country. They are now I >egi nning, as I believe, an industrial progress there that means an eleva- tion of those people intellectually and spiritually in such a way that we can continue to extend to them, from time l<> time, additional self-government. We now have put them under one chamber which is elected popularly, sharing the government with a commission upon which there are a number of Filipinos. Now the cost has been considerable. Five hundred mil- lion dollars has been mentioned. My impression is thai the cost is not so much, and that will have to include whal is the cost of a war, and a war always costs most heavily. Hut the actual cost depends upon how you count the army, whether you would count it that we would have an army of the present size if we did not have the Philippines, or would not. Personally, I should have an army of this size, whether we have the Philippines or not, and therefore I don't think the cost goes beyond six or seven million dollars a year. Counting it the other way it is very considerably more. Now a third question which arises is the effect of the Spanish War and our going to the Philippines upon lli<- country at large, upon our standing before the nations of the world, and upon our opportunities for usefulness as a prosperous, powerful country. And I think in that record perhaps the Spanish War and what followed are more impor- 564 PRESIDENTIAL ADDRESSES tant than in any other aspect. I know it is easy to make fun of a proposition that we as a nation have an obligation because of our power and wealth to assist other nations that may be thrown upon us in such a way as to call for our aid and support; but I do believe in the brotherhood of nations, and I do believe that nations are like members of a community and a neighborhood where the wealthy and the powerful and the more fortunate owe it to the weaker and the less fortunate to assist them when circumstances point in that direction. As a matter of fact the result of the Philippine War, our ownership of the Philippines, our ownership of Porto Rico, our friendship for and close relation to Cuba, our assertion of an interest in South America and an interest in the Isthmus bringing us into close relations with Central America, and our assertion of a right to the "open door" in China, have put us in a position forefront among the nations of the world ; and I believe we have no right to neglect the opportunity to take such a position or the opportunity to use that position for the progress of civilization in the world. Now the result of that war, short as it was, involving as little blood as it did, was remarkable. The expansion of the United States as a great world power dates from that time. We are not going about seeking to aggrandize ourselves, seeking for territory in China or anywhere else. We are building the Panama Canal now for the benefit of the world, and at the same time to aid us in our commerce and to strengthen and double the force of our Navy. The broadening of our people with regard to those problems, the liberalizing of the army, or making the army a body — and especially the officers — a body of well-read gentlemen, men of affairs — all date from that time. Now I deprecate the tone of my friend Senator Tillman's statement that we are ashamed of all this. Well, I am not ashamed of it, because if it had not come that way I should not have been in the White House, I know, and if he expects me to shed tears over that lie is mistaken. I think I know AND STATE PAPERS ;,,;;, our army and navy well enough to know thai while they sine these songs that at times hoid up to ridicule our "little brown brothers" in the Philippines, they look back to thai service with pride, and with the belief that they accomplished u l,,,i no other army could have accomplished "in the same lime and under the same circumstances, with as little blood and as little oppression. It may be as I say that I am a prejudiced witness. I am. Nevertheless a witness may be prejudiced but he may have such an advantage in opportunities lor observation which are denied to those who are only free from prejudice, as to make his evidence better than the judge who sits on the case. I am sorry I did not have the opportunity of welcoming to the Philippine Islands my Brother Tillman. There were some of his Democratic brethren whom 1 enter- tained there with great pleasure and into their sphere of vision I think we introduced some things thai changed their aspect, changed their views I should say, of the situation there. They deplored what we had to do, but they thought we were doing it well. The truth is, while my friend the Senator comes from South Carolina and the South, I think I know something of the attitude of his brethren in the South with reference to the Philippine Islands and this general policy of expansion, and I think we could have a vote on that alone without introducing the race question and all that sort of thing — the wisdom of our taking the Philippines as we have taken them, and developing them as we are developing them, teaching them English and extending to them, as they show themselves fit, self-government. Then the time may come, and I hope it may come soon, when they shall I it- ready to take over a government like that of Australia or Canada, and I say so not because we might not be willing to part with them, but because they will find that under tin- present arrangement, under the tariff as arranged there and the tariff as arranged here, it is greatly to their advantage to retain some sort of bond, no matter how light, which will justify their continuing to enjoy the benefit of our markets with a free trade tariff toward the Orient. 566 PRESIDENTIAL ADDRESSES And now, my friends, I have talked a good deal longer than I intended to; but my friend the Senator whispered to me that he would not have said a word if he had not desired to start me up, so I had to gratify his desire and show him that he was successful. I thank you my friends for giving me this opportunity to bring back the reminiscences of the Philippines. There were times in the Philippines when the nervous strain upon those who were responsible was tremen- dous and the more tremendous because we were so far re- moved, it seemed, from Washington and the people of the United States. There were times, and there were many, when the beauties of life in that country, when the associations that we made there, when the feeling that we did have a people who were grateful at times and who listened to us as children, depending on us and having confidence in us — gave us a pleasure in doing the good which we thought we were doing, a pleasure that knows no measure, for there is nothing in life equal to the consciousness of having attempted to do good for a people and having in a measure succeeded. There is one other thought that I wanted to give you, and that was in relation to the carabao. He too received, I must say, unmerited condemnation from my friend the Senator, not for lack of sympathy with the dumb beast, but again for lack of opportunity for observation. There is no animal that is the friend of the Filipino like the carabao. He moves slowly, he moves deliberately, but he moves always in the right direction, and he gets there after a time without respect to obstacles. It is unwise in dealing with the Filipino or in dealing with anything in the tropics to suppose that you are going to make headway suddenly. The carabao represents the right policy in working out the problems in the East, and I con- gratulate you on having selected that animal as an indication that you know how to accomplish things in the Philippines. Ill as I was in 1902, for three or four months, and confined to my bed in the First Reserve Hospital in the Philippines, Mrs. Moses sent me a full set of Kipling's volumes, and in the head note to one of the chapters entitled "Naulahka" AND STATE TAPERS .-,,;: I found a verse that gave me a great deal of consolation and it I can remember it I want to recite il as a justification for your selection of this animal as typical of yom policy and our policy and our hopes and yours in the Philippines : ' Now it is not good for the Christian's health to hustle the Aryan brown; For the Christian riles and the Aryan smiles and he weareth the Christian down; And the end of the fight is a tombstone white, with the name of the late deceased; And the epitaph drear, "A fool lies here who tried to hustle the East." LXX ADDRESS AT THE LINCOLN BIRTHDAY BAN- QUET OF THE REPUBLICAN CLUB OF THE CITY OF NEW YORK (FEBRUARY 12, 1910) Mr. President, Gentlemen of the Republican Club, and Fellow-Guests: THE birthday of the man whose memory we celebrate to-night is an appropriate occasion for renewing our expressions of respect and affection for the Republican party, and our pledges to keep the part which it plays in the history of this country as high and as useful as it was during the administration of Abraham Lincoln. The trials which he had to undergo as Piesident, the political storms which the party had to weather during the Civil War, the divisions in the party itself between the radical anti-slavery element and those who were most conservative in observing the con- stitutional limitations, are most interesting reading, and serve to dwarf and minimize the trials through which the Republican party is now passing, and restore a sense of proportion to those who allow themselves to be daunted and discouraged, in the face of a loss of popular confidence thought to be indicated by the tone of the press. In what respect has the Republican party failed in its conduct of the Government and the enactment of laws, to perform its duty ? It was returned to power a year ago last November by a very large majority, after a campaign in which it made certain promises in its platform, and those promises it has either substantially complied with or it is about to perform within the present session of Congress. Let us take up these promises in order: 568 PRESIDENTIAL ADDRESSES 569 In the Republican platform of last year, upon which the campaign was made, appears the following plank in regard to the tariff: ''The Republican party declares unequivocally \\>v the revision of the tariff by a special session of Congress immedi- ately following the inauguration of the next President, and commends the steps already taken to this end in I Ik- work assigned to the appropriate committees of Congress which are now investigating the operation and effect of existing schedules. In all tariff legislation the true principle of protection is best maintained by the imposition of such duties as will equal the difference between the cosl of pro- duction at home and abroad, together with a reasonable profit to American industries. We favor the establish- ment of maximum and minimum rates to be administered by the President under limitations fixed in the law, the maxi- mum to be available to meet discriminations by foreign countries against American goods entering their markets, and the minimum to represent the normal measure of pro- tection at home, the aim and purpose of the Republican policy being not only to preserve, without excessive duties, that security against foreign competition to which American manufacturers, farmers, and producers are entitled, but also to maintain the high standard of living of the wage earners of this country, who are the most direct beneficiaries of the protective system. Between the United States and the Philippines, we believe in a free interchange of products with such limitations as to sugar and tobacco as will afford adequate protection to domestic interests." We did revise the tariff. It is impossible to revise the tariff without awakening the active participation in In- formation of the schedules of those producers whose busi ness will be affected by a change. This is the inherenl diffi- culty in the adoption or revision of a tariff by our repre- sentative system. 570 PRESIDENTIAL ADDRESSES Nothing was expressly said in the platform that this revision was to be a downward revision. The implication that it was to be generally downward, however, was fairly given by the fact that those who uphold a protective tariff system defend it by the claim that after an industry has been estab- lished by shutting out foreign competition, the domestic competition will lead to the reduction in price so as to make the original high tariff unnecessary. In the new tariff there were 654 decreases, 220 increases, and 1,150 items of the dutiable list unchanged, but this did not represent the fair proportion in most of the reductions and the increases, because the duties were decreased on those articles which had a consumption value of nearly $5,000,000,000, while they were increased on those articles which had a consumption value of less than $1,000,000,000. Of the increases, the consumption value of those affected which are of luxuries, to wit, silks, wines, liquors, per- fumeries, pomades, and like articles, amounted to nearly $600,000,000; while the increases on articles not of luxury affected but about $300,000,000, as against decreases on about $5,000,000,000 of consumption. I repeat, therefore, that this was a downward revision. It was not downward in reference to silks or liquors or high- priced cottons in the nature of luxuries. It was downward in respect to nearly all other articles except woolens, which were not affected at all. Certainly it was not promised that the rates on luxuries should be reduced. The revenues were falling off, there was a deficit promised, and it was essential that the revenues should be increased. It was no violation of the promise to increase the revenues by increasing the tax on luxuries, provided there was downward revision on all other articles. The one substantial defect in com- pliance with the promise of the platform was the failure to reduce woolens. Does that defect so color the action of the Republican party as to make it a breach of faith leading- to its condemnation ? I do not think so. Parties are like men. Revisions are like the work of men — they are AND STATE PAPERS 571 not perfect. The change which this tariff effected was a marked change downward in the rate of the duties, and it was a recognition by the party thai the time had come w hen instead of increasing duties they must be decreased, when the party recognized in its platform, and in much of what it did, that the proper measure of protection was the difference in cost in the production of articles here and abroad, including a fair profit to the manufacturer. There was a dispute as to what that difference is, and whether it was recognized in the change of all the duties down- ward. Particularly was this the case on the matt rials dial enter into the manufacture of paper and paper itself. The reduction on print paper was from $G to $3.75, or about .'IT per cent. There was a real difference of opinion on the question of fact whether the new duty correctly measured the difference in the cost of production of print paper abroad and prinl paper here. It affected the counting-rooms of the newspapers of the country and invited the attention of the newspaper proprietors who had associated themselves together like other interests for the purpose of securing a reduction of the tariff. The failure to make a larger reduction showed itself clearly in the editorial columns of a great number of the newspapers, whatever their party predilection. The amount of misrep- resentation to which the tariff bill in its effect as a downward revision bill was subjected has never been exceeded in this country, and it will doubtless take the actual operation of the tariff bill for several years to show to the country exactly what the legislation and its effect are. It is perhaps too early to institute the fairest comparisons between the Payne- Aldrich Bill and the bill which preceded it, but the Payne- Aldrich Bill has been in operation now for six months, ami figures are at hand from which we may make a reasonable inference, first as to whether it is a revision downward, and, second, as to its capacity for producing revenue; for it must be borne in mind that the passage of the law was demanded not only for the purpose of changing rates in 572 PRESIDENTIAL ADDRESSES their effect upon the industries of the country, but also for the purpose of increasing the revenues; and the success of the measure is to be judged by its results in both these respects. The Bureau of Statistics is authority for the statement that during the first six months of the operation of the Payne law, which has just ended, the average rate of duty paid on all imports was 21.09 per cent, ad valorem. The average rate of duty paid on all imports for the same six months for the four preceding years under the Dingley law was 24.03. This would show that the reduction in the Payne law is 2.94 per cent, of the value of the goods, or that the reduction below the previous tariff rates is 12 per cent, showing a downward revision to this extent. But this is not all. Under the Payne law 51.6 per cent, of the gross imports for the last six months have been entered free, while under the four years preceding for the same six months the free list amounted to 45.46 per cent, of the total importations; so there was not only a reduction of duty on gross imports of about 12 per cent, but also an enlargement of about the same percentage of the free list. For the production of revenue, the Payne law is even more an improvement on the Dingley Bill. During the six months that the Payne tariff was in force, from August 5 to the night of February 5, the customs receipts amounted to $166,002,- 856.54. Under the Gorman-Wilson tariff the semi-annual average was $83,147,625.90. Under the Dingley tariff the semi-annual average was $130,265,841.84. Under the Wilson tariff the monthly average was $13,857,937.65. Under the Dingley tariff the monthly average was $21,710,973.64; while under the Payne tariff the monthly average has been $27,667,142.75, or 100 per cent, greater than the monthly average under the Wilson tariff, and 26 per cent, greater than the monthly average under the Dingley tariff. Of course as the country increases in population, the customs receipts increase, but even considering the popula- AND STATE PAPERS tion, the increase in the tariff receipts has been marked. Under the Wilson tariff the average annual customs receipts per capita were $2.38; under the Dingley tariff $3.23; while under the Payne tariff they are $3.71. For the six months that the Payne (arid' has been in force the total receipts both from customs and internal revenue have been $323,899,231.91, while the disbursements have been $332,783,283.08, showing an excess of disbursements over receipts of about $8,884,051.17, with no collection as yet from the corporation tax. For the corresponding period last year the expenditures exceeded the receipts by over $40,000,000. This showing indicates that under the present customs law the deficit will be promptly wiped out. and that to meet our normal expenditures we shall have ample revenue. I therefore venture to repeat the remark I have had occasion to make before, that the present customs law is the best customs law that has ever been passed, and it is mosl significant in this: that it indicates on the part of the Republi- can party the adoption of a policy to change from an increase in duties to a reduction of them, and to effect an increase of revenues at the same time. The act has furnished to the Executive the power to apply the maximum and minimum clause in order to prevent undue discrimination on the part of foreign countries, and this is securing additional concessions in respect to impositions on our foreign trade. The act has done justice to the Philippine Islands by giving them free trade with the United States. More than all this, the new tariff act has provided for the appointment of a tariff board to secure" impartial evidence upon which, when a revision of the tariff seems wise, we shall have at hand the data from which can be determined with some degree of accuracy the difference between the cost of producing articles abroad and the cost of producing them in this country. The great difficulty in the hearing and discussion of the 574 PRESIDENTIAL ADDRESSES present tariff bill was the absence of satisfactory and credible evidence on either side of the issues as to low or high tariffs. The importer on the one hand and the manufacturer on the other were present to give their fallible judgments affected by their own pecuniary interests as to the facts under investigation. Men who were struggling to find the truth were greatly perplexed by the conflicting testi- mony. The tariff bill authorizes the President to expend $75,000 in employing persons to assist him in the administration of the maximum and minimum clause and to assist him and other officers of the Government in the administration of the tariff law. I have construed this to mean that I may use the board appointed under this power not only to look into the foreign tariffs, but also to examine the question with respect to each item in our tariff bill, what the cost of production of the merchandise taxed is, and what its cost is abroad. This is not an easy task for impartial experts, and it requires a large force. I expect to apply to Congress this year for the sum of $250,000 to organize a force through which this investigation may go on, the results to be recorded for the use of the Executive and Congress when they desire to avail themselves of the record. In this way any subsequent revision may be carried on with the aid of data secured officially and without regard to its argumentative effect upon the question of raising or lowering duties. Taken as a whole, therefore, I do not hesitate to repeat that the Republican party has substantially complied with its promise in respect to the tariff, and that it has set itself strongly in the right direction toward lower tariffs and furnished the means by which such lower tariffs can be properly and safely fixed. An investigation by the tariff board of the sort proposed will certainly take a full two years or longer. Meantime the operation of the present tariff promises to be consistent with the prosperity of the country and with the furnishing of sufficient funds with which to meet the very heavy but AND STATE PAPERS 575 necessary expenditures of carrying on our great Govern ment. The Republican national platform contained the following: ''We favor the establishment of a postal savings bank system for the convenience of the people and the encourage- ment of thrift." A bill has been introduced to establish a postal savings bank. The great difficulty in the bill seems to have been to secure a proper provision for the management and invesl ment of the money deposited. The great advantage of a postal savings bank is the encouragement to thrift of those whose fears of the solvency of any depository except a govern- ment depository tempts them away from saving. A govern- ment promise to repay seems to be specially effective in leading people to save and deposit their savings. The machinery of the Post-Office, with its 60,000 post-offices and 40,000 money-order offices, offers an economical and far-reaching machine for the reception in places remote from banks, and among people who fear banks, of that which but for the opportunity, they would not save, but spend. The low interest offered to it, that of 2 per cent., prevents such postal savings banks from interfering with regular savings banks whose rate of interest always is in excess of 2 per cent. In the present stage of the Senate bill there have been inserted amendments drawn apparently for the purpose of having money deposited as savings in government post- offices distributed through the locality where deposited in the banks, state and national, and so deposited as to make it impossible for the trustees of the fund appointed under the law to withdraw the money for investment in any other form. I regard such an amendment as likely to defeat the law. First, because it takes away a feature which ought to be present in the law to assure its constitutionality. If tin- law provided that the trustees to be appointed under the 576 PRESIDENTIAL ADDRESSES law with the funds thus deposited could meet the financial exigencies of the Government by purchase or redemption of the government 2 per cent, and other bonds the measure would certainly be within the Federal power, because the postal banks would then clearly be an instrument of the National Government in borrowing money. We have now about $700,000,000 of 2 per cent, bonds with respect to which we owe a duty to the owners to see that those bonds may be taken care of without reduction below the par value thereof, because they were forced upon national banks at this low rate in order that the banks might have a basis of circulation. This implied obligation of the Government, the postal savings bank funds would easily enable it to meet. Secondly, if the funds are to be arbitrarily deposited in all banks, state and national, without national supervision over the state banks, and a panic were to come, it is difficult to see how the Government could meet its obligations to its postal sav- ings bank depositors, because with every bank suspending payment, the funds of the postal savings banks would be beyond the control of the Government, and we should have a financial disaster greater than any panic we have heretofore met. A provision that when the money is not needed to invest in government bonds or to redeem the same it may be deposited in national banks, in the neighborhood of the place of deposit, will avoid the great danger of a panic and will strengthen a banking system which is an arm of the Federal Government. I sincerely hope that before the measure is hammered into its final shape it may take on these characteristics which shall give it a constitutional validity and sound financial strength and usefulness. Those who insist upon the elimination of these two necessary char- acteristic features of the bill will put the party in the position where it can not hope to escape the charge that it is not in good faith seeking the passage of a postal savings bank act, and is not seeking, therefore, to comply with the promise of the Republican platform in that regard. AND STATE PAPERS On the subject of railroads the Republican platform said: "We approve the enactment of the Railroad Rate Law and the vigorous enforcement by the present administration of the statutes against rebates and discriminations as a result of which the advantages formerly possessed by the large shipper oyer the small shipper have substantially disappeared ; and in this connection we commend the appropriation by the present Congress to enable the Interstate Commerce Com- mission to thoroughly investigate and give publicity to the accounts of interstate railways. We believe, however, that the Interstate Commerce Law should be further amended so as to give railroads the right to make and publish traffic agreements subject to the approval of the commission, but maintaining always the principle of competition between naturally competing lines and avoiding the common control of such lines by any means whatsoever. We favor such national legislation and supervision as will prevent the future overissue of stocks and bonds by interstate carriers." A bill to carry out these declarations has been introduced in both the House and the Senate, and is now being con- sidered before the appropriate committees of those two bodies, and there is every hope that the bills thus introduced in substantially the same shape as introduced will pass and be enacted into law. Indeed this railroad measure goes further than the promise of the platform, for while it subjects the issue of stock and bonds to the restrictive supervision of the commission and prevents future watering of securities and forbids the acquisition by a railroad company of stock in a competing line, it also puts very much more power into the hands of the commission for the regulation of rales, and it facilitates in every way the ease of supervision by the com- mission of the railroads to secure acomplianee by the railroads with the rights of the public and of the shipper. The bill was prepared by the Attorney-General, after a full conference with the Interstate Commerce Commission, with the repre- 578 PRESIDENTIAL ADDRESSES sentatives of the shippers and with the representatives of the railroads, and while it was not the result of an agreement between all the parties in interest, it was drafted with a view to meeting all the fair objections and suggestions made by every one of them. The platform further provided: "The Republican party will uphold at all times the authority and integrity of the courts. State and Federal, and will ever insist that their powers to enforce their process and to protect life, liberty, and property shall be preserved inviolate. We believe, however, that the rules of procedure in the Federal courts with respect to the issuance of the writ of injunction should be more accurately defined by statute and that no injunction or temporary restraining order should be issued without notice, except where irreparable injury would result from delay, in which case a speedy hearing thereafter should be granted." A bill to carry out exactly this promise has been intro- duced into both the Senate and House and will doubtless come up for consideration and passage. The bill does not go as far as Mr. Gompers and the Federation of Labor demand, but it goes as far as the Republican convention was willing to let- it go, and it is so drawn as to make an abuse of the issuance of injunction without notice very improbable. It requires that no injunction shall be issued without full notice and hearing, unless to prevent irreparable injury, and that in such case the court shall make a finding from the evidence adduced, pointing out what the injury antici- pated is and why irreparable, and why there is not time to give notice; and after the injunction shall be issued with- out notice, it is provided that such injunction shall lose its force at the expiration of five days, unless a hearing is had. The platform also promised statehood to Arizona and New Mexico, and the bill providing such statehood has AND STATE PAPERS passed the House and has been favorably considered by the committee of the Senate, so thai there seems to be no reasonable doubt that this promise will be fully kept. The Republicans in their platform spoke further, as follows: "We indorse the movement inaugurated by the Adminis- tration for the conservation of natural resources; we approve all measures to prevent the waste of timber; we commend the work now going on for the reclamation of arid lands, and reaffirm the Republican policy of the free distribution of the available areas of the public domain to the landless settler. No obligation of the future is more insistent and none will result in greater blessings to posterity. In line with this splendid undertaking is the further duty, equally imperative, to enter upon a systematic improvement upon a large and comprehensive plan, just to all portions of the country, of the waterways, harbors, and Great Lakes, whose natural adaptability to the increasing traffic of the land is one of the greatest gifts of a benign Providence." In accordance with this plank, measures for the con- servation of the public domain, for the reclassification of lands according to their greatest utility, and the vesting of power in the Executive to dispose of coal, phosphate, oil, and mineral lands, and of water-power sites in such a way as to prevent their monopoly, and union of ownership in one syndicate, or combination, have been already introduced, and will doubtless in a form approved by Congress be made into law. The subject has attracted the widest interest, and its importance is becoming more and more impressed upon the American people. The river and harbor bill, which has just been reported by the River and Harbor Committee of the House, has been framed with a view to complying with the plank of the platform I have just above quoted. It has taken the plan 580 PRESIDENTIAL ADDRESSES for the improvement of the Ohio from Pittsburg to Cairo as a project to be carried out in a certain number of years; and it has treated similar projects for the improvement of the Missouri from Kansas City to St. Louis, for the improvement of the Mississippi from St. Paul to St. Louis, and of the same river from St. Louis to Cairo; and by con- tinuing contracts and regular appropriations, these projects will go on until they are completed. This is a change from the previous plans, and is the result of an extended popular agitation in favor of such a system. Following the panic of 1907, the governmental revenues fell off and the expenditures continued as before, leaving a deficit for the years 1907, 1908, and 1909. There was, how- ever, no deficit in the whole administration of Mr. Roosevelt when the expenses are compared with the revenues. Indeed it will be found that under the operation of the Dingley Bill, which covers most of his administration and the first six months of the present administration, the surplus on the whole was about $250,000,000. At the beginning of this Administration, however it was perfectly evident that with expenses increasing and revenues decreasing, there would be a continuous deficit, and this the Republican party, with its majority in Congress and the responsibility placed upon it, has proposed to meet by reducing expenditures and increas- ing revenues. I have already shown what the increase in revenues has been. The present administration in its estimates for the year ending June 30, 1911, cut them some forty odd million dollars below the actual appropriations of the year before, and now it is proposed to appoint a joint commission, consisting of Senators, Representatives, and members appointed by the Executive, who shall examine the organiza- tion of the various departments and bureaus, and by the elimination of duplication, the consolidation of bureaus, and the increase in efficiency of the individual civil servant shall decrease the regular permanent cost of governmental operation. AND STATE PAPERS 581 With respect to trusts the Republican party spoke as follows in its platform: ■ "The Republican party passed the Sherman Anti-trust Law over Democratic opposition and enforced il after Democratic dereliction. It has been a wholesome instrument for good in the hands of a wise and fearless administration. Hut experience has shown that, its effectiveness can be strength- ened and its real objects better attained by such amendments as will give to the Federal Government greater supervision and control over and secure greater publicity in the manage- ment of that class of corporations engaged in interstate com- merce having power and opportunity to effect monopolies." Since this plank was adopted prosecutions of the Tobacco trust and the Standard Oil trust, begun in the last administra- tion, have gone on and have resulted in decrees in the Court of Appeals of the Second and Eighth circuits, which are now- pending on appeal in the Supreme Court. The decrees in each case tear apart the congeries of subordinate corpora- tions which, united by holding companies, make up the trust in each case and enjoin individuals from a further mainte- nance of the illegal combination of such corporations to carry on the business for which it was organized. It has been said that the Republican party made a promise so to amend the law as to ameliorate and soften the application of the trust law in its interdiction upon business as conducted by the greatest corporations, but I find nothing in the platform to justify such a construction. The principle of the anti-trust law is that those engaged in modern business, especially of manufacture and transportation, shall pursue the policy with respect to their competitors of "Live and let live," and that they shall not use the bigness of their con- cerns to frighten exclusive patronage from customers and eliminate smaller concerns from competition and thus control output and fix prices. The Attorney-General has prepared a bill which, he 582 PRESIDENTIAL ADDRESSES thinks, and I think, will offer to those who wish to pursue a lawful method of business, the means of easily doing so. A lawful interstate business under the protection of a Federal charter which, while it will subject the business of the concern to the closest scrutiny of government officers, will save the business from harassment by State authorities and will give it that protection which a peaceful pursuit of its business as a Federal corporation will necessarily secure it. This measure has not met the approval of those who fear too great concentration of power in the Federal Government, of those who deny the right of the Federal Government in such cases to grant incorporation. I believe the act to be constitutional, and I believe that if enforced it would furnish a solution of our present difficulties; but as it was not specifically declared for in the Republican platform, I do not feel justified in asking the adoption of such an act as a party matter. I have brought it forward, however, as a suggestion for meeting the difficulties which are likely to be presented in the prosecution of suspected illegal trusts as a means by which they can put their houses in order and take their places among those engaged in legitimate business. If the other measures to which I have referred are enacted into law, and the pledges of the Republican party performed, there would seem to be no good reason why the party should not receive renewed approval by the electors of the country in the coming congressional campaign. But there are signs which many construe as an indication that the Republican majority in the present Congress will change to a Democratic majority in the next. This is based chiefly on the dissensions in the Republican party, and upon the very severe attacks, made by a great many of the newspapers having Republican tend- encies, upon the party and its leaders in Congress and in the nation. I am glad to say that so far as the legislation which I have indicated above is concerned, there seems to be a clear party majority in both Houses in favor of its passage and the consequent redemption of the party pledges. There AND STATE PAPERS is, however, a very decided difference as to the proper rules to prevail in the House and as to the personnel of the leader- ship. It would seem as if these questions were questions that might well be solved within the party lines, but the) have been so acute as to produce what has been called an insurrection and to awaken the country over a controversy between the insurgents and the regulars, so-called. I am hopeful thai as we approach the lines of battle for the nexl year, the settle- ment of these internal questions can be effected withoul such a breach of the party as to prevent our presenting an unbroken front to the enemy. We among the Republicans may be discouraged when we consider our own dissensions, but when we look to the possibility of any united action on the part of the Democrats for any policy or any line of policies we must take courage. It was General Grant who said that when he first wenl into battle he had a great deal of fear, but he overcame thai feeling by maintaining in his mind the constant thoughl how much more afraid his opponent was. And so we who find ourselves at times given over to the thought that Repub- lican control is at an end should not forget to consider nol only our own factional strife but also that of our ancienl enemy. If the Democratic party were a solid, cohesive opposition, guided by one principle and following the same economic views as a whole, the situation would be far more discouraging than it is. The Republican party has been the party responsible for the Government for the last seven- teen years. It has discharged those responsibilities with wonderful success. The problems growing out of the Spanish war and those which have come from the rapid accumulation of wealth, and the greed for power of its accu- mulators, it has fallen to the party to meet, and while they have not yet all had a perfect solution, the record Is one of which we have no reason to be ashamed. Mr. Roosevelt aroused the country and the people to the danger we were in of having all our politics and all our places 584 PRESIDENTIAL ADDRESSES of governmental authority controlled in corporate interests and to serve the greed of selfish but powerful men. During his two terms of office, by what almost may be compared to a religious crusade, he aroused the people to the point of protecting themselves and the public interest against the aggressions of corporate greed, and left public opinion in an apt condition to bring about the reforms needed to clinch his policies and to make them permanent in the form of enacted law. But as an inevitable aftermath of such agitation, we find a condition of hysteria on the part of certain individuals, and on the part of others a condition of hypocrisy manifesting itself in the blind denunciation of all wealth and in the impeachment of the motives of men of the highest character, and by demagogic appeals to the imagination of a people greatly aroused upon the subject of purity and honesty in the administration of government. The tendency is to resent attachment to party or party organization, and to an assertion of individual opinion and purpose at the expense of party discipline. The movement is toward factionalism and small groups, rather than toward large party organiza- tion, and the leaders of the party organization are subjected to the severest attacks and to the questioning of their motives without any adequate evidence to justify it. I am far from saying that the Republican party is perfect. No party which has exercised such power as it has exercised for the last seventeen years could be expected to maintain either in its rank and file or in its management men of the purest and highest motives only. And I am the last one to advocate any halt in the prosecution and condemnation of Republicans, however prominent and powerful, whose conduct requires criminal or other prosecution and condem- nation. It should be well understood that with the Repub- lican party in its present condition, with its various divisions subjected to the cross fire of its own newspapers and its own factions, any halt or failure on the part of those in authority to punish and condemn corruption or corrupt AND STATE PAPERS 585 methods will be properly visited upon the party itself, however many good men it contains. We shall be called upon to respond to the charge in Hie next campaign that the tariff, for which we are responsible, has raised prices. If the people listen to reasonable argu- ment, it will be easy to demonstrate thai high prices proceed from an entirely different cause, and thai the presenl tariff, being largely a revision downward, except with respect to silks and liquors, which are luxuries, can nol be charged with having increased any prices. But this will nol prevent our Democratic friends from arguing on the principle of post hoc propter hoc, that because high prices followed the tariff, therefore they are the result of it. And we must not be blind to the weight of such an argument in an electoral campaign. The reason for the rise in the cost of neces- sities can easily be traced to the increase in our measure of values, the precious metal, gold, and possibly in sonic cases to the combinations in restraint of trade. The question of the tariff must be argued out. The prejudice created by the early attacks upon the bill and the gross misrepresentations of its character must be met by a careful presentation of the facts as to the contents of the bill and also as to its actual operation and statistics shown thereby. I believe we have a strong case if we can only get it into the minds of the people. Should disaster follow us and the Republican major- ity in the House become a minority in the next House, it may be possible that in the Democratic exercise of its power, the people of this country will see which is the parly of accomplishment, which is the party of arduous deeds done, and which is the party of words and irresponsible opposition. I only want one more word. From time to time attacks are made upon the Administration, on the ground thai its policy tends to create a panic in Wall Street and to disturb business. All I have to say upon that subject is this: That certainly no one responsible for a government like ours would foolishly run amuck in business and destroy values and confidence just for the pleasure of doing so. No one 58G PRESIDENTIAL ADDRESSES has a motive as strong as the Administration in power to cultivate and strengthen business confidence and business prosperity. But it does rest with the National Government to enforce the law, and if the enforcement of the law is not consistent with the present method of carrying on business, then it does not speak well for the present methods of con- ducting business, and they must be changed to conform to the law. There was no promise on the part of the Republican party to change the anti-trust law except to strengthen it, or to authorize monopoly and a suppression of competition and the control of prices, and those who look forward to such a change can not now visit the responsibility for their mistake on innocent persons. Of course the Government at Washington can be counted on to enforce the law in the way best calculated to prevent a destruction of public confidence in business, but that it must enforce the law goes without saying. I am glad to be present at this meeting of the Republican Club of New York and here meet your distinguished Governor, whose name is such a power before the people of this State and of the country, that to lose him as a candidate for Governor by his voluntary withdrawal is to lose the strongest asset that the Republican party has in the State to enable it to win at the next election. I am glad to be here at the meeting of the Republican Club on Lincoln's birthday, because my knowledge and informa- tion with respect to the club is that it stands for stalwart Republicanism, believes in party organization and party discipline, but insists on the highest ideals and methods in formulating the policies of the party and carrying them out. LXXI ADDRESS AT THE BANQUET OF THE BOARD OF TRADE, NEWARK, NEW JERSEY (FEBRUARY 23, 1910) Gentlemen of the Board of Trade of the ( 'it;/ of Newark: IT IS an opportunity to be able to speak to the business men of New Jersey, of whom this is a most repre- sentative gathering. The proximity of New Jersey to New York, and the fact that from the West one can hardly get to New York without passing through New Jersey, make one forget at times the importance of Newark and of all the rest of the hive of industry that spreads west from the Hudson River far into and across this prosperous Stale. It comes to a stranger with considerable surprise to find a city of 3.50,000, nine miles west of Jersey City, so extended in its manufacturing industries, so solid in its invested capital. When I accepted the invitation to come here, I learned that I was to have the pleasure of being a fellow-guest with my friend, Senator Lodge, and that he was to take up the question of high prices, a question which has occupied the attention of all the people and has invited the investigation into its causes of the Congress of the United States and some of the State legislatures. For my part of the evening, I should like to direct your attention to a more prosy subject, to the question of gov- ernment expenses and government revenues, and the possible economies, and what expenditures are essential at whatever burden of taxation. In the first place, it should be said that we have been so far from exhausting the resources of national taxation, and Federal revenues have been collected so easily and in such an 587 588 PRESIDENTIAL ADDRESSES amount, that we have failed in the past to adopt a budget system which is practiced in every other civilized country. By a budget system I mean a reference of proposed expen- ditures and receipts to some one authority or tribunal, which, after determining what the revenues are to be, must also determine what the expenditures can be, and make a budget without a deficit. In our legislative body, which provides the revenue and authorizes the expenditures, time was when the Committee on Ways and Means, on the one hand, determined the revenues of the Government, or provided the laws for raising them, and, on the other hand, determined the appropri- ations and measured the expenditures. But for many years in our Congress these functions have been divided. The revenues are provided by the Ways and Means Committee of the House and the Finance Committee of the Senate, and submitted to their respective Houses, while the appro- priations are made by the appropriation committees of the House and the Senate, and in too many instances without apparent reference to the revenues which are to be available to meet the appropriations. It has so happened that in many years of the past, the revenues have increased more rapidly than the expenditures, and there has been a surplus. During the life of the Dingley Bill, which carried us from 1896 to 1908, the appropriations exceeded the expenditures by about $250,000,000; but the surplus took place in the earlier years, so that in 1908 we had a deficit, and in 1909 we had a deficit. The pinching effect of the falling off of the revenues and the continuance of the expenditures at the same rate attracted the attention of Congress, so that now a preliminary duty is thrown upon the Secretary of the Treasury to make a budget; that is, by law he is required to receive all the estimates of all the Depart- ments, himself to make an estimate of the probable revenues, and if his calculations show a deficit, to recommend legis- lation for additional taxation or the raising of money by bonds sufficient to meet it. AND STATE PAPERS 589 The calculation of the Secretary of the Treasury for the present year showed that the deficit was likely to be $34,000,000 in respect to ordinary receipts and expendi- tures. I am glad to say that the operation of the new tariff bill has been so much more productive of income thai this deficit for the current year is likely to be considerably reduced. In addition, however, to the ordinary deficit, we have to add the Panama Canal expenditures for immediate provision $38,000,000; or what was estimated to be a total deficit of $72,000,000 is now reduced considerably by the better rates under the present tariff bill. By meeting the expenditures on the Panama Canal with the proceeds of bond issues, we have enough cash in the Treasury to meet the deficit in our ordinary expenses for the current year, and if we meet the expenditures on the Panama Canal for the following year, we shall have a surplus of $35,000,000; or if the revenue-producing capacity of the new tariff keeps up to its present indications, this surplus may be increased to $50,000,000. On the other hand, if the Congress proposes to add to the expenditures of the Government over those estimated for, for new enterprises in the Rivers and Harbors Bill, and for the construction of Federal buildings under a building act, it will be very easy to consume or exceed the entire surplus. Every one must admit the wisdom of providing for the payment of the canal expenditure by bonds. The original act made provision for the issuing of bonds, and while the amount therein estimated was far short of the actual cost, the policy of the Government in supplying funds for the enterprise by bonds was sufficiently declared. This is a work of a permanent character for the millions who come after us, and it seems only fair that that which we provide in such a generous measure for posterity should be paid for, in part at least, by posterity. Not only is the application of such a principle jiisl and right in the case of an enterprise like the Panama ('anal. but it seems to me wise and appropriate to adopt it with 590 PRESIDENTIAL ADDRESSES reference to other projects which commend themselves to Congress, and the economical completion of which requires the issuing of bonds. I refer to those definite projects that have been agreed upon in respect to the improvement of our inland waterways. I would not begin the expenditure of any money on any project the wisdom of which had not been fully vindicated by experts and the cost of which had not been fully ascertained by the most experienced engineers; but having determined to put through the improvement, it ought not to be done by fits and starts, but it ought to be done as one job, and provision for its completion ought to be made by the issuing of bonds, unless the current revenues afford a sufficient amount to complete it within a reasonable time. This statement has peculiar application to the River and Harbor Bill, which now has passed the House. There the Ohio River improvement, to cost $63,000,000, is entered upon, and an appropriation made for its continuing. The same thing is true of the improvement of the Mississippi from St. Paul to St. Louis, and the same river from St. Louis to Cairo; and of the Missouri River from Kansas City to St. Louis. These projects seem to be warranted by the traffic in sight. While I am dealing with the Panama Canal, however, I ought to refer to the discrepancy between the estimated cost of the enterprise and the actual cost as we are now able to fix it with very considerable accuracy within four or five years of its completion. The estimated cost of the engineer- ing and construction of the canal was $139,700,000. Its actual cost for engineering and construction will be $297,000,000, an increase of about $157,300,000. This increase is to be explained first by the very great appreciation in the cost of labor and material between the time when the estimate was made in 1900 and the time when the work was done between 1904 and 1909. Second, by the fact that the canal has been enlarged substantially beyond the original dimensions estimated for. You know that the AND STATE PAPERS ,:»i great work of excavation in the canal is called the Culebra Cut. This is where the backbone of the continent, reduced to its lowest height, is cut through in order to permit the flowing of the canal; and through live miles of that cut, which altogether is about nine miles long, for purposes of economy the original plan and estimate made the bottom of the canal in the rock 200 feet wide. This would not enable two of the largest steamers to pass each other in the canal with any degree of safety, and would require that one of them should tie up to the bank while the other went by. In order to avoid this delay in that part of the canal il has been thought wise to increase the bottom width from 200 to 300 feet in a place and in material that of course make the change most expensive. So, too, in order thai the canal may be adapted to the largest size of steamers possible, the dimen- sions of the six locks have been increased from 900 feet, usable length, by 90 feet width, to 1,000 feet, usable length, and 110 feet width. This was done at the instance of the Navy Department, on the ground that they could look forward in the future and see vessels of a beam exceeding 100 feet. It has also been found necessary to change the character of the canal on the Pacific side from a lake with a dam and locks on the shore of the Bay of Panama to a sea level canal running four miles inland, so as to remove the locks four miles inland and beyond the possible reach of the guns of an enemy in Panama Bay. These two changes also have added very considerably to the cost. Again it has been found wise to enlarge the canal into a lake or basin at the foot of the Gatun locks, and with other variations in the plans which experience in the construction has demonstrated the necessity for, the more than doubling of the cost of construction and engineering has been made necessary. In addition to this, the cost of sanitation and government, without which the canal could not have been built, will be about $73,000,000, and will carry the entire cost of the canal to $373,000,000. 592 PRESIDENTIAL ADDRESSES To return to the state of finances, I repeat that the-surplus for the year ending June 30, 1911, for which we are now making provision in this Congress by appropriation, will be about $35,000,000, if the estimates made by the Depart- ments as transmitted by the Secretary of the Treasury to Congress are not exceeded, and if the revenue from the tariff bill equals that which the Secretary of the Treasury has estimated it as likely to be. This surplus is also upon the supposition that the $38,000,000 necessary annually in the construction of the Panama Canal will be met by bonds. In view of the threatened shortage for the year ending June 30, 1911, I directed the heads of Departments in making their estimates to cut them to the quick and to avail themselves of every possible economy and reduction. The result was that the total of the estimates forwarded by the Secretary of the Treasury was $42,818,000 less than the total of the appropriations for the previous year, ending June 30, 1910. A river and harbor bill has now been introduced and has passed the House, which appropriates nearly $40,000,000. This is a very considerable increase over the amount esti- mated for by the Secretary of the Treasury. If, in addition to this, a building bill passes Congress, appropriating $15,000,000 or $20,000,000 for the coming fiscal year, there may still be a deficit unless the receipts from the tariff bill and the corporation tax exceed what was originally estimated from them. I am bound to say that the results of the tariff bill thus far indicate a considerable increase over the esti- mate of the Secretary. Now, I would like for a moment to go into the question of what it was that we cut down in our estimates for the coming year in the departments. The reduction in the estimate of the War Department below the appropriations of last year amounted to $10,000,000. The reduction in the estimate of the Navy Department for the expenses of the year ending June 30, AND STATE PAPERS 1911, also amounted to $10,000,000. The reduction in the Interior Department of estimated expenses for 191] below the appropriations for 1910 amounted to $8,000,000. The reduction in the Treasury and in the Post-Office Depart- ment made up the balance of the $42,000,000. Speaking with reference to the Army and the Navy, il should be said that the reductions were not in wiial m.n be called the permanent expenses of the Departments, bul were rather in cutting down proposed improvements, which if the plans of the Departments are properly carried oui must be some time met. In other words, il is a postpone- ment only of expenditures that are necessarj until the income shall be sufficient to meet them. Let us take the War Department. There was a very considerable cut in the expenditures needed to complete with modern appliances the coast defences on the Pacific and Atlantic seaboard. There is needed at the month of Chesapeake Bay, between Cape Henry and Cape Charles, an artificial island upon the so-called middle ground, which shall command the entrance to Chesapeake Hay. Chesa- peake Bay is the most important body of water from a strategic naval standpoint on the whole Atlantic coast, and must be defended. So, too, we have now determined that the great naval base of the Pacific for us is to be Pearl Harbor, near Honolulu. For years there was discussion as to whether we oughl to make the naval base at Subig Bay or at Cavite, in Manila Bay, in the Philippines. By unanimous consent of naval and military authorities, it is now concluded thai we do not need a naval base in the Philippines at all: that we ought to make Corregidor Island, at the mouth of Manila Bay, impregnable, establish a naval supply station in Subig Kay. but rely upon the Sandwich Islands as our base. This will all involve a heavy expenditure at Honolulu, bul for tin- present the amount proposed is comparatively small. In the naval expenditures we have retained a provision for two battleships of the large 2.5,000 ton capacity, and we hi 594 PRESIDENTIAL ADDRESSES done this on the ground that until the Panama Canal is com- pleted we ought to go on and add to our naval strength. The Panama Canal will certainly be completed in 1915, and if we have two battleships a year until that time, the opening of the canal will so double the efficacy of our Navy for the protection of our Pacific and Atlantic coasts that we can then abate and reduce our expenditures in new con- struction. The reductions in the Treasury Department were I think more of them in the administration than in the expenditures for improvements, and this was also the case in the Post- Office Department. The reduction in the Interior Department was $5,000,000 of it due to a reduction of the amount of pensions to be paid out, and we may reasonably expect that as the years now go on this amount will gradually be reduced. On the other hand, there are certain of our Departments, to wit, the Agricultural Department, with its Forestry Bureau, the War Department in so far as it is a construc- tive department for the improvement of rivers, the Depart- ment of Commerce and Labor, including as it ought, it seems to me, a Bureau of Health, which, as the opportunities for bettering the condition of the people by governmental investigation increase, grow in importance and in cost; and we ought not to expect a reduction either in the expenses growing out of a conservation of our resources. For some time it has been said that we have "billion dollar" Congresses. The statement in itself is an unjust one, because it is generally construed to mean that the total expense of the Departments to be paid out of taxa- tion amounts to a billion dollars a year. This is quite an error, for the reason that in making up the billion dollars, the expenses for the Post-Office Department are always included, whereas the expenses of the Post-Office Depart- ment are not paid for out of the proceeds of taxes. They are paid for out of the receipts of that Department from the sale of stamps, with the exception of $17,500,000, which AND STATE PAPERS was the excess of the cost of the Post Office Departmenl last year over its receipts. This, therefore, reduces the cosl of the Government by taxation each year to something like $750,000,000. It is now proposed to appoint a Congressional commission to look into the question of a general reorganization of the Departments of the Government, with a view to reducing the expense of administering the Government. I think ? have already made clear the distinction between those expenditures of the Government that go into permanenl improvements and that may be reduced one year and musl be increased another, and the actual routine cosl of admin- istration. A reduction in the cost of proposed improvements is not an elimination of them, but merely a postponement of them; whereas a reduction in the cost of administration would be a permanent economy that, of course, on thai account, becomes most important. It has been stated on the floor of the Senate thai il will be possible by this commission to reduce the cosl of admin- istering the government $100,000,000 a year, and thai if a free hand were given to a business man the reduction in the expense of administration might be doubled or trebled, I am unable to confirm these statements as to exacl amount, but I am very sure that a conservative, prudent, and fearless commission could make a most material reduction in the cost of administering the government. They will find opposition in Congress to every change recommended, because there is no branch or bureau so humble that if can nol secure its adherents and defenders within the legislative halls. But, if by the totals that it shows this commission shall justify its existence, it is probable thai if can secure a majority sufficient to carry through its proposed reforms. This Government has been constructed not all at one time, but bureau has been added to bureau, and departmenl to department, and it has been impossible to avoid dupli- cation and expensive methods. In creating a new bureau. there was no time to go back and reform the Governmenl 596 PRESIDENTIAL ADDRESSES with reference to the adjustment of that bureau to its proper place or to consider the work of the entire Government with reference to it. This proposed commission, as I under- stand it, is to take up the bureaus of all the Departments, to see whether they may not often be consolidated, and also to lay down such rules governing the civil service as will secure the utmost efficiency from each civil servant or each unit of labor. It is undoubtedly true to-day that we have a great many more persons employed in the government than we would need, if every person in the government rendered to the government a service of a high degree of efficiency. This commission will have to take up the ques- tion, which has troubled great industrial corporations and great railroads, as to the method of disposing of super- annuated servants. Our military pensions have reached so large an annual sum, to wit $150,000,000, that we have avoided the suggestion of civil pensions, but I am convinced that some method must be adopted by which superannuated civil servants may be retired on an income sufficient to sup- port them, and that such a provision will ultimately bring about great economy in the administration. It has been reported by the Postmaster- General that we are carrying in the Post-Office Department the weekly periodicals and magazines at a loss to that department of upward of $60,000,000, and that the business of the Govern- ment in the Post-Office Department is now run at a general loss of $17,500,000. The committees of Congress are investi- gating the correctness of this view. The owners of magazines dispute the correctness of the figures. There ought to be some way certainly of determining this fact, and if it is a fact it calls for a reform, and an increase in the postage of a sufficient amount at least to take away the deficit in the Post-Office Department. Should the two postal committees not be able to reach a conclusion satisfactory to them upon this question, the whole matter may well be left to the com- mission to consider. It will be essential for this commission to employ expert men who have had to do with the organiza- AND STATE PAPERS 597 tion of great businesses and who are familiar with the most modern methods of economy. The truth is thai the success of modern business has been the adoption of successful economies, and the time has come for us to make an effort at least to introduce something of these economics into an administration of the greatest business that we have in I his country, the business of our Federal Government. I am quite aware that things done by the Governmenl are done under conditions so different from those of a busi- ness concern that there are certain expenditures necessary, in view of the fact that the government business is done for the benefit of all the people, and that therefore all the people are entitled to know how it is done, and a number of them are entitled to be selected in a fair way to share in its doing. But in spite of the added expenditure of administration incident to the requirements of popular government, every one familiar with government methods now in vogue must recognize the possibility of reforms leading to great economy, if the Congress shall have the courage to adopt plans which may be recommended by this commission after a full exam ination by business experts. I have already occupied your time too much, and I per- haps have not made this statment very informing or inter- esting, but I can not close without congratulating you and myself on the prospect that the present tariff bill offers such an increased income as to make deficits under any condition unnecessary. Of course if there were to be a halt in our prosperity and a panic, the reduction in imports might be so substantial as to lead to deficits again. Lei us hope, however, that the prosperity of our country is founded on such a substantial basis that no flurry in the stock market and no other temporary cause may prevent the continuance of good business on a substantial basis. THE END INDEX Abuses, business, 3. Anti-trust law, 240, 479, 524. reform of, 3. aggregation of capital not viola- Acceptance, speech of, 3. tion of, 15. Adams, Judge, 161. amendment of, 12, 54, 187, 313. Administration of justice, improve- construction of, 12. ment of, 199. enforcement of, 315, 427. Administration, the chief function prosecutions under, 5. of, 6. President Roosevelt's amend- constructive work of, 7. ment of, 11. Africa, development of, 451. President Roosevelt's prosecu- missionary work in, 436. tion under, 4. Agriculture, Department of, 484. violations under, 44, 526. reorganization of, 7. Appomattox, surrender at, 98. Alaska, coal of, 278, 295. Argentine Republic, trade with, 455. development of, 283. Arid lands, reclamation of, 43, 270. disposition of, 292. 271, 318, 332, 426, 543. future of, 285. Arizona, statehood for, 483, 578. government of, 282, 283, 293, 294, Armstrong, General, 445. 327, 483. Army, the, 34, 57. history of, 282, 293. changes in, 473. territorial legislature for, 295. engineers, commendation of, 343, wealth of, 282. 495- Alaska - Yukon - Pacific Exposition, Democratic Party's policy, re, 34. address at, 281. President McKinley's policy, re, Aldrich, Senator, 186. 34- Algiers, 505. of the Potomac, 98. Aliens, protection of, 60. regular, 122. Alsop & Co., claim of, 458. reorganization and improvement Amendments to Constitution, thi.- of, 43. teenth, fourteenth and fifteenth, 64. President Roosevelt s policy, re, American Federation of Labor, 143, 34- 147, 160, 578. officers, retirement of, 473. American Republics, International Arthur case, 1 51, 152. Bureau of. 450. Asiatic immigration, 35, 59. American Sugar Refining Co., Republican platform s policy, re, 469. 35* Anarchy, prevention of by courts, Athens, Ohio, speech at, 161. 2_ Atlanta, University, 114. Ansel, Governor, 418. Atlantic Deeper Waterways Conven- Anthracite Coal Commission, 150. tion, Norfolk, address at, 44c 599 600 INDEX Auditorium, Richmond, Va., ad- dress at, 424. Augusta, Ga., address at, 418. Bacon, Senator, 403. Ballinger, Secretary, 280. Bank deposits, guarantee of, 30, 50. Banking laws, amendment of, 60. Banking system, 185, 187. amendment of, 208. Bankruptcy, 550, 553. Barra, Ignacio de la, 360. Barry, Maj. Gen., 164. Bartlett, Representative, 403. Bates, Lindon, 137, 139. Beecher, Mr., 264. Bilibid prison, 104. Birmingham, Ala., address at, 399. growth of, 400. Birney, General, 98. Blockade, 449. Board of Trade and Chamber of Commerce, Washington, ad- dress at, 80. Board of Trade banquet, Newark, N. J., address at, 587. Boll- Weevil, 380. Bolivia, boundary dispute, settle- ment of, 454. Bonds and stocks, over issue of, 4. President Roosevelt's policy, re, 5- Boston, Mass., address at, 182. Boxer trouble, 437. Boycotts, secondary, 21, 68, 144, 148, 194,242,314. Brewer, Justice, 158. Bricklayers' Union, 148. Bright, John, 263. Brotherhood of Locomotive Engin- eers, 151. Brown, Governor, 418. Brussels, world's fair at, 450. Bryan, Mr., bank deposit policy of, 50. charges Republican Party con- trolled by corporations, 51. injunctions in labor disputes, 147. policies of, 50. policies of, destructive, 13. Bryan, prosperity delayed by his election, 17. refers to Mr. Taft as " father " of injunctions, 160. successor of Mr. Roosevelt, 47. tariff policy of, 51. Budget system, 588. Buenos Aires, 455. Bunau-Varilla, 137, 139. Burbank, General, 121. Burnham, Mr., 85. Butt, Captain Archibald W., 360. 362, 404. Campaign funds, necessary, 51. Campaign, issues of, 43. Campbell, Governor, 360. Canadian International boundary, 448. Canal Zone, control of, 40. Cannon, Speaker, 144, 394. Capital, advantage of combination of, 14. investment of in foreign coun- tries, 455. Caraboa, the, 566. Military Order of the, Washington, address to, 559. Carnegie, Mr., ill. Carriers, duties of, 518. Casey vs. Typographical Union, 1 59. Catholic Summer School of Amer- ica, address at, 178. Cavite, 593. Central American wars, 43. Central Bank of issue, 186. Centralization, 550. Chaffee, General, 342. Chamber of Commerce, Birming- ham, address at, 3 99. Los Angeles, address at, 341. Champlain, 179, 181. Charleston, S. C., address at, 409. Charlotte, N. C, address at, 101. Chesapeake Bay, fortification of, 443>473>593- Child labor, 552. law for District of Columbia, 67. Chicago, 111., address at, 191. Chile, 458. INDEX GUI China, 460. development of, 286, 297, 328, 436. indemnity fund of, 461. missionary work in, 505. railroad loan to, 460. students of, sent to American schools, 461. Church and State, separation of, 3 Z 3» 3 6 7, 439- Cincinnati, Ohio, address at, 3. Cincinnati, Society of the, 171. Civil law, delays in, 476. necessity for reform of, 195. Civil pensions, establishment of, 468. Civil procedure, improvement of, 428. Civil Service Commission, 487. Civil War, 170. Cleveland, President, address on, 7'- Cleveland, Lorain & Wheeling R. R., 157. Cliff Haven, N. Y., address at, 178. Coal, Alaskan, 295. case, 157. lands, disposition of, 270, 278. Coast defenses, 473. Cceur d'Alene, strike troubles, 159. Colton, Col. Geo. R., 78. Columbia, S. C, address at, 415. Columbus, Miss., address at, 396. Commerce Court, 234. Commerce and Labor, Dept. of, 485. corporations, registrations under, 1 1. reorganization of, 7, 54. supervision of certain industrial corporations, 6. Comparative negligence theory, 20. Competition, suppression of, 532. Conaty, Bishop, 349. Congo, independent State of, 451. Congresses, billion dollar, 594. Conservation of national resources, 36, 57, 188, 243, 270, 318, 330, 372, 381, 385, 419, 4 2 6, 484* 537, 553, 579- administration's attitude toward, 279. Constitution, Federal, 556. amendment of, 167. thirteenth, fourteenth and fifteenth amendments of, 105. guaranties under, 103, 109. fourteenth and fifteenth amend- ments of, 34. Consular service, improvi 1 463. Contempt cases, 148, 163. Contraband, 449. Contributions, campaign, publicity of, 36. political, publicity of, 488. Contributory negligence rule, aboli- tion of, 67. Court of Commerce, establishment of, 515. Courts, Federal, Democratic plat- form's attack on, 25. duties of, 146. full power of necessary to avoid anarchy, 27. power of, 145. upholding of, 578. State, upholding of, 578. Corporations, industrial, classifica- tion of, 6. Federal incorporation of, 533. objections toFederal incorporation of, 535- prosecution of, 530. interstate commerce, Federal con- trol of, 11. interstate commerce, Democratic platform's attitude on, 11. interstate commerce, classification of, 11. legislation for, 45. regulations of, 532. violation of law by, 311. Corporation tax, 246, 249, 253, 304, 305, 307. Corpus Christi,Texas, address at, 371. Corregidor Island, 593. coast defenses at, 474. Cosio, Gen. Manuel Gonzales, 360. Creel, Governor, 360. Criminal law, delays in, 476. necessity for reform of, 195. 602 INDEX Criminal procedure, improvement of 428. reform of, 198. Cromer, Governor, 399. Crowder, Colonel, 164. Cuba, 30, 433, 457. annexation of, 560. re-establishment of government of, 43- Cuban pacification, army of, 164. war, 433. Culberson, Senator, 379. Currency system, 27, 60. Republican platform's policy, re, 28. Cushing, General, 122. Cushman, Representative, 290. Customs, frauds in collection of, 469. Dallas, Texas, address at, 379. Davis, Mr., 129. Debs's boycott, 77, 154, 158. Declaration of London, 449. Deficit, government, 39, 166, 227, 246, 465, 580, 588. amount of, 69. meeting of, 56, 303. DeLesseps, 124. Democratic Party, charges deficit, 39- charges increase of offices and ex- penditures, 38. defeat of in 1896, 25. free coinage of silver policy of, 46. pension policy of, 39. Philippine policy of, 49. Democratic platform, attack on power of courts, 25. bank deposit policy of, 29. business affected by, 6. compulsory sale of products at fixed prices, 13. destructive policy of, 16. election of senators by the people, 37- income tax policy of, 37. injunction policy of, 22, 25, 148. interstate corporation policy of, Democratic platform, limits corpora- tions to ownership of 50 per cent, of plant and product, 12. pensions for veterans of Civil and Spanish Wars, 33. tariff policy of, 18. Democrats, independent, 41. Deneen, Governor, 501. Denver, Col., address at, 245. Departments, Government, reor- ganization of, 580, 595. Dependencies, our, 120. Republican Party's policy, re, 30. Des Moines, Iowa, address at, 231. Diaz, Gen. Felix, 363. Lieut. -Col. Porfirio, Jr., 363. President, interview with, 360, 456. Diaz, toast of, 364. Dickens, Charles, 264. Dickinson, Secretary J. M., 360, 367. Dingley, Tariff, 44, 209, 588. cotton schedule of, 217. crockery schedule of, 218. enactment of, 55. passage of, 18. print paper, 219. schedules of, 214. District of Columbia, franchise in, 83 government of, 81. jail of, 479. model child labor law, for 67. Eight hour law, passage of, 19. Eliot, Dr., 444. Emancipation Proclamation, 488. Emery Co., claim of, 458. Employee and employer, difference between, 20. Employees, government, classifica- tion of, 468. Employers' liability act, 66. passage of, 1 9. right to bring suit under any place, 524. England, income tax in, 252. Erasmus, 174. Erie Railroad, stock controversy of, 24. INDEX 603 Escandon, Col. Pablos, 360. Fresno, California, address at, 535. Excise tax, 168, 227, 250. Friars, the, 435. Executive power, limitation of, 201. Frissell, Dr., 444. Exhibition, international agricul- Full dinner pail, <;o. tural, 455. Fur Seals in North Pacific, 449. Expenditures, governmental, 39, 465, 587. Galveston, harbor of, 376. Extra session, calling of, 55. Garfield, President, 33. Georgia-Carolinafair,ddilrr - at,4l8. Fairmont Hotel, San Francisco, ad- Gettysburg, address at, 1 11. dress at, 325. battle of, 129. Falconio, Monsignor, 439. Gibbons, Cardinal, 17S, 439. Farmer, the, and Republican Party, Gift chapel, San Antonio, dedii a- 19. tion of, 366. Far East, 460. Glenwood Mission Inn, Cal., a*l Federal judiciary, act of 1789, 144. at, 349. Fee system, abolition of, 199. Goethals, Colonel, 63, 130, 1-,;. Fellow servant rule, abolition of, 19, Gomez, General, 165. 67. Gompers, Mr., 143, 160, 162, 578. Filipinos, the, 435. Gordon, General, 98. Fisheries on North Atlantic coast, Gorman- Wilson Tariff Bill, 44, 46, 447. 48- Fish, Frederick P., 185. President Cleveland refuses to Fisk University, 114. sign, 74. Fitch, Rev. James, 173. Government employees, compensa- Flint, Senator, 342. tion of, for injuries rec Foraker Act, Porto Rico, 88, 95. 20, 67. amendment of, 90, 95. Government expenditures, 465. Foreign countries, investment of Governors, conference of, at White American capital in, 455. House, address to, 555. Foreign policy of government, 40. Grand Army of the Republic, 170. Foreign trade, encouragement of, 61. Granger, Mr., 137, 139. Forests, Government, 373, 379, 386. Grant, President, 33, 97, 364, 583. destruction by fire annually, 271. Greenbackism, 50. extent of, 270, 331, 545. Gregg, General, 98. preservation of, 270. Green fly, 380. regulation of, 271. Guadaloupe, Hidalgo, treaty of, 282. Forest lands, private ownership of, Guaranties of Constitution, 103, 109. _.p Guaranty of bank deposits, 28, 30. Forest service, investigation of, 548. Gunnison tunnel, opening of, 271. Fortifications, partially completed, 58 Fort Stedman, battle of, 98. Habeas Corpus, writ of, 104. Free coinage of silver, repeal of, 75. Hadley, Governor, 385. Freedman's Savings and Trust Co., Hague tribunal, 58, 447- 00 usefulness of, 40. Freeman, Mr., 129. Hammond, John Hays, 360. Frees, Captain, 343- Hampton Institute, .13. Free trade, with Porto Rico, 93. address at, 444. with Philippines, 61, 63, 227. 286, Hancock, General, 98. 296, 306, 327. Harrison, President, 33. 604 INDEX Harrison, President, maintained stan- dard of Federal judiciary 108. Hartranft, General, 98. Hartzell, Bishop, 509. Hassayampa water, 356. Hayes, President, 33. Hazen, Mr., 1.29. Health Bureau, 36, 420, 429, 486, 594- Hemp, Manila, 32. Hepburn Bill, 11, 233, 311, 514. High prices, cause of, 223, 489, 585. Hitchcock, Postmaster-General Frank H., 360. Homogeneity of American people, 359, 382, 401, 422, 426. Hook worm, 93. Homestead act, 274. Hornets' nest, 106. Howard University, Washington, ad- dress at, in. Howland, Judge, 399. Hughes, Governor, 37, 178. Humphreys, General, 98. Hunt, General, 122. Immigration, Asiatic, 35. Import, duties 56. Inaugural address, 53. Income of Government, 39. tax, 37, 166, 247, 249, 252, 254, 304 tax case, 142. Independent, article in the, 43. Indian, education of, 445. Industrial organizations, Federal in- corporation of, 513. Inheritance tax, graduated, 56, 166, 247, 257, 303. Injunctions, 49, 145, 477. Democratic platform's policy, re, 22. "father" of, 159. in industrial disputes, 67. labor, 23, 67, 143, 146, 232. legislation for, 192. notice and hearing before issue of, 2 3- remedy of, 22. Republican Party's policy, re, 24. Interior Department, 483. investigation of, 548. reduction in estimates of, 593. International Fisheries Commission, 448. International policy, our, 58. International prize court, 449. Interstate Commerce Commission, change in jurisdiction of, 7. enlargement of powers of, 3 1 1. power of, to investigate increase in rates, 520. rates fixed by, 233. reorganization of, 54. railway traffic agreements ap- proved by, 7. should ascertain physical valua- tion of railways, 10. should be relieved of its jurisdic- tion as an executive directing body, 6. should hear complaints against unjust claims of merchants, 2 35- Interstate Commerce corporations, Federal control of, 11. Interstate Commerce Law, amend- ment of, 54, 187, 233, 237, 238, 428, 479, 513, 522. Republican platform recommends its amendment, 521. Interstate trade, Federal protection of, 582. Inventors, American, 451. Irrigated lands, payment for, 274. Irrigation, necessity of, 273, 332, 380. Jackson, Andrew, 142. Jackson, Stonewall, 424. Jackson, Mrs. Stonewall, 101. Japan, commercial strides of, 328. control of Oriental trade by, 297. merchant marine of, 288. relations with, 462. revision of treaty with, 462. visit of delegation from, 462. Johnson, Governor, 188. Johnston, Senator, 399. Judicial decisions as an issue in politics, article on, 142. INDEX 605 Judiciary, Federal, strongest bul- Letters of exchange, uniform legi wark we have, 108. lation for, 450. Judicial system, attack on, 27. Liberia, 452, 508. procedure, delays in, 554. Light-house Board, 485. Jury system, 196. Lincoln, President, 201, 568. trial, effect of, 26. Litigation, reducing cost of, 198. Justice, Department of, 476. Littlefield, Mr., 144. reorganization of, 7, 54. Lobnitz, method of excavation, 140. Lodge, Senator, 587. Kipling, 566. Lord, Dr. Benjamin, 175. Klopsch, Dr., 510. Los Angeles, Cal., address at, 341. Kuni, Prince, 462. harbor of, 342. Loyal Legion, 171. Labor, 232. address on, 161. Macon, Ga., address at, 403. affected by change from pro- Madeira, 505. tective to revenue tariff, 49. Magazines, postage for, 480, 596. injunctions, 49, 143, 232. Magellan, 179. legislation for, 66. Magoon, Governor, administration unions, must obey law, 315. of, 164, non-organized, 20. Mail matter, second class, 48. organization of, 232. Malins, Vice-Chancellor, 1 59. Republican Party's policy, on Manila Bay, 474. jo. Manufactures and Statistics, union rights of, 21, 156, 193. of bureaus of, 486. rights of, re, strikes, 21. Marine, foreign, development of, 41. union of, 20, 192. Merchant, 419. vote of, 191. mortgages and privileges, 450. what it cannot do, 21. Maritime law, International, con- Lakes to the Gulf Deep Waterways ference on, 450. Committee, address to at Wash- Marriage and divorce, 553. ington, 501. Marshall, General, 496. Lamar, Justice, 263. Marshall, John, 550. Lands, Government agricultural, Mason, Major John, 173. 2 _- McClure's Magazine, articles in, 124, classification of, 275, 540, I4 2 - timber, 271. McDonnell, Father, 439. Latin America, 454. McMahon, Dr., 178. Law's delay, 199. McKinley, Pres.dent, 33, 434, 5^- Lawyer, profession of, 407. Navy policy of, 34. Laymen's Missionary Movement, Republican admm.straUon under, address at Washington, 432. 43- Lee, General Robert E., 97. McVickar, Bishop, 4 44- , . memorial to, 430. Methodist Ep.scopal m.ss.ons ,n Legare, Representative, 41°. Afri "' . ad J reSS ° n ' 5 ° 3> n9 ,,, Legaspi, 179. Meade ' Ma J- Gen - Geo - C - 9 8 ' l2U Legislation, uniform state, 549, 55*- Meat inspection law, 5. I 'Enfant 87. enactment of, 43, 45- Lennon"M r ', IS - Mecklenburg Declaranon, address Leo XIII, 180. on > ,ox - 606 INDEX Mehmed V, 453. Moral reform, brought on by Presi- Merchant marine, 287, 298, 329, 346. dent Roosevelt, 584. Merchandise, c assification of, 235. Mormon tabernacle, Salt Lake City, Merrimac, battle of, 442. address at, 258 Merritt, General, 121. Moton, Major, 445. Messages to Congress Conservation of National re- National assembly in Philippines, 3 1 . sources, 537. National Civic Federation, address convening it in extra session, 69. before, 549. government of Cuba, 164. National repudiation, 76. interstate commerce and anti- National rivers and harbors con- trust law and Federal incorpora- gress, address to, 490. tion, 513. resources, conservation of, 36, 57, Porto Rican, affairs, 88. 188, 243, 318, 330, 372, 381, second session, 61st Congress, 385, 419, 426. 447. conservation of, 484, 537, 553, 579. tariff revision for Philippines; 78. N aulahka, 566. tax on net income of corporations, Naval observatory, 475. 166. Navy, the, 34, 442. Mexican war, regular army's service Democratic platform on, 34. in, 120. enlargement of, 38, 43. Micawber, 375. need of commensurate, 58. Miles, General, 77. reform in, 474. Militia, National, 57. officers, reorganization of, 474. Milwaukee, Wis., address at, 201. yards, reorganization of, 475. Mining, South Manchuria, 461. Negro freedom, semi-centennial of, Mischler, Wendell W., 360. 488. Missions, Chinese, 437. Negro race, appointment to office of, description of, 506. 66. foreign, 350, 434. education of, 34, 112, 445. Missionaries, 436. future of, 1 16. duties of, 507. leadership of, 113. Mississippi River, improvement of, progress of, 34, 64. 393, 492, 501, 547, 580, 590. rights of, 34. trip down, 492. South's toleration for, 114. Missouri River, improvement of, 492 suffrage for, 65. 580, 590. Neutral prizes, destruction of, 449. Molina, Olegario, 360. Newark, N. J., address at, 587. Monetary Commission, 60. New Bowery Mission, address at, system, 187, 428. 510. laws, amendment of, 60, 208. New England ancestry, 174, 189. situation, 185. New Mexico, statehood for, 483, 578. Monitor, battle of, 442. New Orleans, La., address at, 390. Monopoly, 525, 532. New York City, address on Presi- unlawful, 44. dent Cleveland, 71. Monroe doctrine, 57, 432, 456. address at Lincoln birthday ban- Monrovia, commission sent to, 451. quet of Republican Club, 568. Montague, Governor, 445. address at Diamond Jubilee of Montcalm, 430. Methodist Episcopal missions Moores & Co., 148. in Africa, 503. INDEX New York City, address at Now Bowery Mission, 510. Nicaragua, 458. route for canal, 1 24. Noble, Alfred, 125. Norfolk, Va., address at, 440. North and South, good feeling be- tween, 430. Norwich, Conn., address at, 173. Offices, governmental, Democratic Party charges increase of, 38. Ogden, Mr., 366, 444. Ohio River, improvement of, 393, 498, 580, 590. introduction of dams in, 547. maintaining depth of, 492. Ohio Valley Improvement Associa- tion, address to, 498. Oil lands, disposition of, 270, 278. Oklahoma, constitution of, 26, 358. Olongopo, 474. Open door, 59, 460, 564. Opium conference, 461. Orchestra Hall speech, Chicago, 191. Ordinance of 1787, 282. Oriental manners, 259. trade, control of by Japan, 297. Ostriches, industry in, 354. Otis, General, 104, 341. Overcapitalization of railways, 9. Pacific, future of world's business on, 297, 328. shipping trade on, 41. coast, artillery force for, 326. Panama Canal, 124, 564. board of engineers for, 129. bond issue to pay for, 57, 589. Chagres River, 125, 135, 138. completion of, 43, 286, 328, 345. construction of, 38. cost of, 132, 138, 466. Culebra Cut, 129, 132, 466. efficiency of navy doubled by, 41, 330. Gamboa Dam, 135, 137. Gatun Dam, 62, 126, 131, 137,139. La Boca, 132. lock type of, 62. Panama Canal, Miraflorei , 1 ',:. progress oi . • ■ •. San Pedro Miguel, 1 trade affected by, '•:. trans-continental lini 33°. 345- type of, 63, 126, 129. world's commerce benefiti 4'- Panama Canal critics, answer to, 124. Panama Railroad, 126. Pan-American Congress, Fourth, 454- Panama, straits of, 136. Panic, cause of, 16. country recovering from, 50. decrease in receipts 1 39- depression which followed it, 56. disclosed lack of elasticity in our financial system, 27. prevention of, 28. Parke, General, 98. Parker Brothers, 141. Parker, Judge, 142. Parties, political differences between, 42. Pasamaquoddy Bay, 448. Passports, 35. Payne Tariff Bill, 211, 572. best Republican Party ever passed, 222. Peabody, George Foster, 444. Peace, promotion of, 58. Pearl Harbor, naval base at, 478. Pearre bill, 144. Pennsylvania memorial, unveiling of at Petersburg, 97. Pensions, for veterans of Civil and Spa-nish Wars, 33. Democratic Party recomn 39-' People rule, 339. Periodicals, postage for, 596. Perkins, Senator, 333. Persia, constitutional government in, 453- Peru, settlement of boundary dis- pute of, 454. 608 INDEX Petersburg, Va., unveiling at of Postal Savings Banks, countries Pennsylvania memorial, 97. which have them, 206. Phelan case, 154. Republican Party prefers, 30. Philippine Islands, 31, 560. Ports, legislation for, 380. army of, 367. Post Office Department, 480. church and state question, 181. deficit of, 481. cost of, 32, 433, 563. reduction in estimate of, 593. Democratic Party recommends Power, usurpation of by the Execu- immediate independence for, tive, 74. 49. Pure Food law, 5. free trade with, 63, 227, 286, 296, enactment of, 43, 45, 261. 306, 327. President, the, power of, 405. government of, 31. travelling of, 383, 411. missions of, 349. Pretorian Guard of Rome, 171. progress of, 63. Prescott, Arizona, speech at, 356. regular army of, 33. Products, compulsory sale of, at revision of tariff for, 78. fixed prices, 13. self-government in, 31, 327, 565. Projects, reclamation, issuing of tariff for, 285, 296. bonds to complete, 273, 544. Philippine War, successful carrying Prosperity, Bryan's election would on of, 43. delay restoration of, 17. Phoenix, Arizona, address at, 353. country in high state of, 489. Phosphate lands, disposition of, 270, era of, 200. 278. Protection of citizens abroad, 35, 59. Physical valuation of railways, 8. Protection, Republican doctrine of, President Roosevelt's policy 17. on, 9. Pickett, General, 121. Querol, 179. Pinchot, Mr., 270. Pittsburg, Pa., address at, 117. Railroads, discrimination by, 4. Pollock vs. Farmers' Loan and legislation for, 19, 54, 192, 232, Trust Co., 166. 238, 376. Popular government, 337. passage of rate law for, 45, 577. Portland, Oregon, address at, 302, over capitalization of, 9. 320, 322. physical valuation of, 8. Porto Rico, 30. rates of, 9. charges of political oppression of, right of, to make and publish 94. traffic agreements, 517. expenses of, 93. President Roosevelt's policy on Foraker Act for, 95. physical valuation of, 9. free trade with, 93. treatment of, 9. government of, 88, 95. valuation of by Interstate Corn- imports of, 93. merce Commission, 10. message to Congress on, 88. Railway appliances, uniform con- prosperity of, 63. struction of, 523. Portuguese East Africa, 505. Railway traffic agreements, appro- Postal Savings Banks, 202, 428, 48 1, val by Interstate Commerce 575. Commission, 7. advantages of, 28. Randolph, Isham, 125, 129. Congress should pass bill for, 61. Rate bill, passage of, 4, 46. INDEX 609 Rates, railway, 9, 514. Republican strength in maintcn- Rebates, secret, 44. ance of Presidcni R abandonment of, by railways, 5. policic , 1, granting of, 239. Restraining orders, 15, 48, 68, 145. Reclamation act, amendment of, Retrocession, 86. 544- Revenues, govcrni7icnl.il, 4*,;. Reclamation bureau, 427. increase in, 580. projects entered upon by, 272. Rhodesia, 505. issuing of bonds for, 333. Richmond, Va., address at, 424. Reed, Thomas B., 299, 329. Richardson, Dr. (. J., 360. Reform, moral, 315. Ricks, Judge, 151. President Roosevelt, leads move- Rinderpest in Philippines, 33. ment for, 4, 53. River and Harbor Bill, appropria- Regular Army, 368. tion of, 592. Mexican War service of, 120. River and Harbor improven monument to at Gettsyburg, 119. 39. Religious tolerance, 179, 351. Riverside, California, address at, Republican and Democratic policies, 349- difference between, 13. Rock Creek Park, 85. Republican Club banquet, N. Y. Rodelph Shalom Temple, Pittsburg, City, address at, 568. Pa., address at, I 17. Republican Party and the farmer, Roebuck, Mr., 263. 9. Roosevelt, President, 434. dissensions in, 582. administration of Republican injunction policy of, 478. Party under, 43. labor policy of, 232. anti-trust law amendment,! promises of, 568. mended by, n. Republican Party's appeal, article on Army and Navy policy of, 34. in I tide pendent, 43. Conservation policy of, 372. Republican Party, charge that it is injunction policy of, 144. controlled by corporations, 51. Interstate Commerce Law amend- Republican platform, Asiatic immi- ment recommended by, 233. gration, 35. moral reform brought about by, currency system, 28. 4, 315, 401, 584. dependencies, policy of, 30. physical valuation of railways Interstate Commerce amendment policy of, 9. approved by, 521. policies of, 3, 310. interstate stocks and bonds, policies of, progressive and regu- policy of, 10. lative, 13. labor policy of, 19. policies, Republican strength in legislation for controlling cor- maintenance of, 3. porations, recommended by, 45. stocks "and bonds, policy of, 5, 45. Negro policy of, 34. suits brought by under anti-trust pensions, for veterans of Civil and law, 4. Spanish Wars, 33. traffic agreements, policy of, 8. Philippine tariff, policy of, 32. Root, Elihu, Senator, 434, 549- postal savings banks, recom- South American visit of, 40, 6:. mended by, 28. Round Tops, battle of, 121. protection policy of, 17. Routes, rights of shippers to statehood promised by, 357. ignate, 238, 521. 610 INDEX Rural Free Delivery, extension of, Spokane, Washington, address at, 38. 270. Russian- Japanese War, 40, 43. Spooner Act of 1902, 125, 466. Spreckels, Sugar Refining Co., vs. Safety devices, legislation for, 67. McClain, 168. Sage, Judge, 159. St. Aloysius Church, Washington, Salaries Government, no reduc- D. C, Address at, 439. tion in, 469. Stafford, Justice, 81, 85. Salt Lake City, address at, 258, Standard Oil trust, prosecution of, 268. 581. San Antonio, Texas, address at, 366. State Capital, Columbia, S. C, ad- Sanders, Governor, 390. dress at, 415. San Francisco, address at, 325. State Department, 462. Sanitation, 420. State Fair Grounds, Macon, Ga., of South, 1 13. address at, 403. Santo Domingo, 40, 433, 457- Milwaukee, address at, 201. Scott, General, 120. Statehood, 353, 356, 578. Seattle, Washington, address at, 28 1. State Institute and College, Colum- Sectionalism between East and West, bus, Miss., address at, 396. 188. Steamship lines between Atl ntic Self-government, 176. ports and South America, 41. Senators, popular election of, 37. between North and South Amer- Seward, Mr., 295, 364. ica, 62. Alaskan policy of, 281. Stearns, Frederic P., 125, 129, 131, Shanghai, opium conference at, 461. Stevens, John F., 125. Sherman anti-trust act, 479, 525, St. Johns River, obstructions in, repeal of, 7^. 448. Sherry, vs. Perkins, 159. St. Louis, Mo., address at, 385. Shipowners, limitation of responsi- St. Mary's Academy, Portland, Ore., bility of, 450. address at, 320. Shippers, burdens on, 237. Stephenson, Dr. Benj. F., unveiling protection of, 518. of memorial to, 170. Siam, treaty with, 462. Stock in competing railroad, pro- Sickles, General, 121. hibition of, 238, 522. Silver, free coinage of, 46. Stocks and bonds, over issue of, 4, Slavery, 106. 44, 45, 54, 522. suppression of, 508. Republican platform's policy re Slidell, Mr., 263. interstate railway, 10. Sloan, Judge, 353. President Roosevelt's policy on, South, appointments in, 108, 429 5. colored physicians needed in, 113. Stocks, watering of, 312. development of, 402. Straits of Panama, 136. hospitality of, 413, 423, 443. Strong, Dr., 175. sanitation of, 113. Stuntz, Dr. Homer, 505. tolerance of opinion in, 63, 109. Subig Bay, 593. South America, trade with, 328. Subsidy, mail, 41, 62, 330. Spanish War, successful carrying on ship, 298, 346, 482. of, 43. Suffrage for women, 397. Spitzbergen Islands, 453. Sugar, Philippine, 32, 63, 227. coal of, 453. Sugar trust case, 527. INDEX ,.,, Swamp land, reclamation of. 381. Tru<* ™*A -i Swanson, Governor, 424, 440 r , articles, putting of on Sykes, Maj. Gen., 121. T free hst > 47- J ' Tru sts, 528, 581. Tacoma, Wash., address at 200 rf ' 53 '' Taft, President, response of 'toTast ^T J 1 "' ™' 8 ^^ '" of President D.az, 365. good V Talladega University, 114. ?L„ ' 53 Taney, Chief Justice 550 S" ^T ° U Tariff, the, 23 1. " Tobacco, and Standard Oil, 58, ,-* c a unlawful, 14. act of August 5, rooo, 4 6 4 . Turk Su ', ta 4 n a downward revision of, 2,6. 302. Tuskegee Instate, J ' bill, Gorman- W.lson, 44, 46, 4 8. Tyrol, Governor 106 board, appointment of, 228, 235. ' . 3°9> 574- Uncas board, uses of, 471. TT ' '\ *>„ P „t y , s policy on , ,, g£js& is^,, m -, :„. r „ Urdeneta, 170. maintenance of, 287 tt ■ ''- maximum and minimum clause of, UsUr P at,on ° f P™ er b 7 «c»ti«, 62,227,308,470. Philippines, 32, 7 8 285, 296. Van Buren, Mr., ,42 prices alleged to be raised hv v,,.- ■ .g,. 6 raisetl b ^> Vatican, negotiation with, 180. r> Li- « Venezuela, 4C6. Republican Party's policy on, Virginia Military Institute, 424. ,„„• ■ r o Voyages, continuous, 440. revision of, ,8, 44, 47, jr, 54 , 6( ,, Vreel * nd Bil] ' 449- 106, 187, 209, 246, 302. J To? 11 ° n , at , W 7 ona ' Wis "> "9. Wachusetts Reservoir, 13,. wool schedule of, 220. Wagner , Charles C, 360. Tawney Representative, 224. Walker, Dr., r 15. 3 Taylor, General, .20. War Department, 472. I ax, income, -57. ro j„ 5 • - r ,1 c reduction in estimate of, za\. T.llman, Senator, 559. War of lg 593 Tobacco, Phil.ppme, 32, 63, 227. Warner, Senator, 3, col. lobacco Trust, prosecution of, War, preparedness for, 59. Tn1 „;L 'I . . , _ „ Washington and Lee University, Toledo & Ann Arbor R.R. )I5 o Richmond, establishment of Irade, restraint of, 3,7, 525. engineer school at, 430. Irades-union.sm, 194. Washington, future of, 84. 1 rathe agreements, publication of, Waterpower sites, 275, 332, 373, 387, 5' 7 ' 427, 541. rates, 240. disposition of, 270, 277. ireasury Department, reduction in Water power, use of, 276. estimate of, 593. Waterways Convention, New Or- Tr.al by jury, 1 97. Ieans> address at> ^ trip around country, advantages of, Waterways, inland, 387, 392, 440, 266 ' 49°> 498. SOI. 612 INDEX Waterways, improvement of, 36. Ohio Valley Improvement Asso- issuing of bonds for, 381, 494, ciation, 498. money invested in, 373. St. Aloysius Church, 439. preservation of, 373. Unveiling memorial to Dr. Ben- Washington, D. C, addresses at, jamin F. Stephenson, 173. Board of Trade and Chamber West Point, 120. of Commerce, 80. West Virginia coal case, 157. Conference of Governors, 555. Whisky, what is it ? 262. Howard University, in. White Slave Trade, 486. Inaugural address, 53. Wilberforce University, 1 14. Lakes to the Gulf Deep Water- Wiley, Dr., 84. way Committee, 501. Winona, Minn., address at, 209. Military Order of the Caraboa, 559 Winthrop, Governor, 175. addresses at, National Civic Fed- Wise, Dr., 117. eration, 594. Wolfe, 430. National Rivers and Harbors Woman, Education of, 326. Congress, 490. Laymen's Missionary movement, Zelaya Government, complaint 432. against, 458. o o iT\ ' too ^ "^ 4* ,