Ligonier Banner., Volume 42, Number 37, Ligonier, Noble County, 5 December 1907 — Page 2

THE PRESIDENT'S ANNUAL MESSAGE

CAUSES OF THE PRESENT FINANCIAL CONDITIONS IS MADE THE CHIEF TOPIC. :

SUGGESTS REMEDIES FOR ILLS

CONTROL OF CORPORATIONS AND RAILROADS TO PREVENT : OVERCAPITALIZATION.

Believes This Would Solve the Prob- . lem Together with Provision for More Elastic Currency—Recommends Postal Banks and Asks for Legislation Along Many Lines.

" 'Washington, Dec. 3. — President Roosevelt's annual message to congress is a vqluminous document of nearly 30,000 words, by far the longest message he has ever submitted to.congress. The opening subject of the message is the financial condition of the country, and%r which the president lays much of the blame upon unscrupulous stock speculators, and says: . : : s .“In"any large body of men, however, there are certain to be some who are flishonest, and if the conditions are such that these men prosper or commit their misdeeds with impunity, their ‘example is a’' very, evil thing .for the community. Where these men are business men of great sagacity and of temperament both unscrupulous and reckless, and where the conditions are such that they act without supervision or control and at first without effective check from public opinion, they delu_dé many /innocent people ‘into making ‘investments or embarking in kinds of business that are really .unsound. When the misdeeds of these successfully dishonest men are°®discovered, suffering comes not only upon them, but upon the innocent men whom they have misled. It is a painful awakening, whenever it occurs; and, naturally, when it does..occur those who suffer are apt to forget that the longer it was deferred thé more painful it would be. In the effort to punish the guilty it is both wise and proper to endeavor so far as possible to minimize the distress of ,those who have been misled by the guilty. Yet it is. not possible to refrain because of such distress from striving'%o put an end to the misdeeds that are the ultimate causes §f the suffering, and, as a means to this end, where possible to pupish those ‘responsible for them. There may be hanest differences of opinion as to many governmental policies; but surely there can. be no sgch differences as to the need of unflinching perseverance in the war against successful dishonesty.” He quotes at length from his message of last year in which he advocated federal control of corporations doing interstate business, and believes that in such control would be found the remedy for overcapitalization and stock speculation which he ‘believes ‘have brought about the present financial conditions. «He says: “Qur steady aim should be by legislation, cautiously and carefully undertaken, but resolutely persevered in, to assert the sovereignty of.the national goverzxment by atﬁrm‘gtive action. " *This is only in form an innovation. In substance it is merely a restoration; for from the earliest time such regulation of industrial activities has been recognized in the action of the lawmaking bodies; and all that I propose is to meet the changed conditions in sueh manner as will prevent the commonwealth abdicating the power it has always possessed, not only in this country,. but aiso. in England before and since this couniry became a separate nation. :

Federal Control of Railroads Is Favered. : ; “No small'part of the trouble that we have comes from carryving to an extreme the nationalK virtue of self-re-fiance, of independence in initiative and action. It is wise to conserve this virtue and to provide for its fullest exercise, compatible with seeing that liberty does not become a liberty to wrong others. Unfortunately, this is the kind of liberty that the lack of all effective regulation imevitably breeds. The founders of the constitution provided that the national government should have complete and. sole control of interstate commerce. There was then practically no interstate business. ‘- save such as was conducted by water, and this- the national government at once proceeded to regulate in thoroughgoing and effective fashion. Conditions have now so wholly changed that the interstate commerce by water is insignificant compared with the amount that goes By land, and almost all big business concerns are now engaged in interstate commerce. As a result, it can be but partially and imperfectly controiled or reguylated by, the action of any one of the several.states; such aetion inevitably tending to be either too drastic or else too lax, and in either casg ineffective for purposes of justice. OnlY the national government can in thoroughgoing fashion @exercise the needed control. - This does not. mean that there should be any extension of federal authority. for such' authority already exists under the constitution in amplest and most far-reaching form; but it does mean that there should be an -extension of federal activity. This is not advocating ceéntralization. It is merely looking facts in the face, and *realizing that centralization in business has already come and can not be-avoid-ed or undone, and that the public at large ean only protect itself from certain evil effects of this business centralization by providing better methods for the exercise of control through the authority -already centralized in the national government by the constitution itself. There must be no halt in the healthy constructive course of action which this nation has elected to pursue, and has steadily pursued, during, the last six years, as shown both in the legislation of the congress and the .administration of the law by the department of justice. The most vital u‘ug is ti!? eon:necﬂon wj!th the railroads. As to these, in gz ﬂd&:?ent_ there should now be either 4 national incorporation act or a law licensing railway m::nles to engage in interstate comupon certain conditions. The law ANI Do 30 framed gL& Bive 49.the wterstate ree. sion power o L seuris-. TS larus.of peensin oaa. As I stated in my message o the te s LAR Teee 2. SETIRY ol £ s a?i»" T eL i i 1,," eS e e ready possesses, it witl be fmpos: *li K &gy aa@ om the 5 . e e e WS PUERAEON wiil | 5 S W

work in harmony with the several state commissions, each within its own province, to achieve the desired end. . * Control of Interstate & Business Concerns Urged. & .

“Moreover, in my judgment there should be additional legislation looking to t..e proper control of the great business c. .- cerns engaged in interstate business, t.is control to be exercised for their own benefit and prosperity no less than for the protection of investors and of the general public. As I have repeatedly said in messages to congress and e¢sewhere, experience has definitely shewn not merely the unwisdom but the futility of endéavoring to put a stop to all business combinations. Modern industrial conditions are such that combination is not only necessary but inevitable, 'lt is so in the world of business just as it is so in the world of labor, and it is as idle to desire to put an end to all corporations, to all big combinations of capital, as to desire to put an end to combinations of labor. Corporation and labor union alike have come to stay. Each if properly managed is a source of good and not evil. Whenever in either -there is evil, it should be promptly held to account; but it should receive hearty encouragement so long as it is properly managed. It is profoundly immoral :to put or keep on the statute books a law, nominally in the interest of public morality, that really puts a premium upon public immorality, by !undertaking to forbid honest men from doing what must be done under modern business. conditions, so that the law itself provides that its own infraction must be the condition precedent upon business success. To aim at the accomplishment of too¥much usually means thesaccomplishment of too little, and often the doing of positive damage. :

‘“The antitrust - law- should not be repealed; but it should be made both more efficient and more in harmony with actual conditions. It should be so amended as to forbid only the kind of combination which does. harm to the general public, such amendment to be accompanied by, or to be an incident of, a grant of supervisory power to the government over these big corporations engaged in intertate business. This should bé accomganied by provision for the compulsory publication of accounts and the subjection of books and papers to the.inspection of the government officials. A beginning has already been made for such supervision by the establishment of the bureau of corporations. ; “The antitrust law should not prohibit combinations that do no injustice to the public, still less those the existence of which is on the whole of benefit to the public. But even-if this feature of the law were abolished, there would remain as an equally objectionable feature the difficulty and delay now incident to its enforcement. The government must now submit to irksome and repeated delays before obtaining a final decision of the courts upon proceedings instituted, and even_ a favorable decree may ‘mean an empty victory. Moreover, to* attempt to control these corporations by lawsuits means to impose upon both the department of justice and the courts an impossible burden; it is not feasible to carry on more than a limited number of such: suits. Such a law to be really effective must of course be. administered by an executive body: and not merely by means of lawsuits. Thst design should be to prevent the abuses incident to the creation of unhealthy and improper*combinations, instead of waiting until they are in existence and then attempting to destroy them by civil or criminal proceedings. : 5 =0

Investing Publie Should Be Awmply Safeguarded.

‘““The congress has the power to charter corporations to engage in interstate and foreign commerce, and a general law can be enacted under the provisions of which existing corporations could take out federal charters and new -federal corporations could be created. An essential provision of such a law should be a method of predetermining by some federal board or commission whether the applicant for a federal charter was an association or combination within the résglctlons of the federal law.. Provision should also be made for complete publicity in all matters affecting the put:iic and complete protection to the investing public and the sharehelders in the matter of issuing corporate securities. If an inCorporation law is not deemed advisable, a license act for big interstate corporations might be enacted; or “a combination. of the two might be tried. The supervision established might bhé analogous to that nmow exercised over nationl banks. At least, the antitrust act should be supplemented by specific prohibitions of the .methods which experience has shown have been of most service in enabling monopolistic combinations to erush out comp Petition. ~The real owners of a corporatioft should be compelled to do business in their. own name. The right to hold stock in other corporations should heareafter be denied to interstate corporations, unless on approval by the proper government officials, and a prerequisite to such approval should be the listing with the government of all owners -and stockholders, bath by the corporation owning such stock and by the corporations in which such stock is owned. e X

“To confer upon the nationdl government, in connection with the amendment I advocate in the antitrust law, power of supervision over big business concerns engaged, fn interstate commerce, would benefit them as it has benefited the national banks. In the recent business crisis it is noteworthy that the institutions which failed were institutions which-were not under the supervision and <control of the .national government. Those . which - were under: national centrol stood the test. : -

“National control of the kind above advocated would be to the benefit of evety well-managed orailway. From the standpoint of the piblic there is need for additional tracks, aditional terminals, and improvements in the actual handling of the railroads, and. all this as rapidly as podsible. Ample, safe, and speedy transportation facilities are even more neces'sary than cheap transportation. Therefore, there is need for the investment -of ' money which "will provide for all these things while at the same time securing as fas as is _possible - better wages and Ishorter hours for their employes. Therefore, while there must be just and reasonable regulation of rates, we should be _the first to protest against any arbitrary ‘and unthinking movement to cut them down without the fullest and most careful consideration of all interests -concerned and of the actual needs of the situation. Only a special body of men 'acting for the national government under authority conferred upon it by the congress is competent to pass judgment ‘on such a matter.’ . Greater Elasticity in ot Currency Is Urged. o The president quotes extensively from ‘his last message in dealing with the di‘rect subject of currency legislation, and Says: : : = | .."“I again urge on the. congress the need of immediate attentl%n to this matter, We need a greater elasticity in our -currency; provided, of course, that we recognize the even greater need of a safe and secure currency. There must alvwazva be the most rigid examination by thé national authorities. Provision should be made for an. emergency currency, ‘The emergency issue should, of course, :be S i Sl S 0 oh conditions carefully prescribed by the by the govmmnt.?nru ‘must bem ‘ S ! 'ru 0 ipal “-‘.)',, Juia - - v-‘ m i same supervision as banks; - AR v '??“::'}x, I‘4 5 s & ’»" e S :»,*‘%\;% the wisest legislation on the subject can R o TIPSR TR S R, R R b -;;:: ‘:;»\‘w" e ’mﬁ- ';..z,v;'&,_,_‘_,? %n e 5@% V¢ ( = 4:»,;_;:' T Y “. ;‘g@i o ‘ﬁ“ F,*._?‘ ""f?hg«r%i"tmiw o P ‘3f~g¢ e ;f: Fe w. 8 S ) z ST = "i = P T 5 2 -

wealthy men, or men who pose as such, or are unscrupulously or foolishly eager to become sué¢h, indulge in reckless speculation—especijally if it is accompanied by dis}wnesty—tlky jeopardige not only their own future but the future of all their innocent fellow-citizens, for they expose the whole business community to panic and distress.”

,He'advises against any general tariff legislation this session of congress, and says: x ! A ¢

“In a country of such. phenomenal growth as ours it is probably well that ‘every dozen years or so the tariff laws should be carefully scrutinized so as to see that no excessive or improper benefits are conferred thereby, that proper revenue is provided, and that our foreign’ trade is encouraged. There must always be as 4 minimum a tariff which will not only allow for the collection of an ample revenue but which will at. least make good the difference in cost of ppoduction here and abroad; that is, the di nce in the labor cost here and abroady for the well-being of the wage-worker must ever be a cardinal point of American policy. The question should be approached purely from a business standpoint; both the time and the manner of the change being such .as to arouse the minimum of agitation and disturbance in the business world, and to give the least play ‘“for selfish ' and factional motives. The sole consideration should be to see that the sum total of changes represent the public good. This means that the subject cannot with wisdom be dealt with in the vear preceding a presidential election, because as a matter of fact experience has conclusively shown that at such a time it is impossible to get men to treat it from the standpoint of the public good. In my judgment the wise time to deal with the matter is immediately after such election.”

He asks for the repeal of the tariff on paper and wood pulp. e - . He reviews and enlarges upon his previous recommendations for the enactment of federal inheritance and income tax laws. s =

Attention is called to the prosecution of wealthy offenders against the national laws, and in this connéction he asks that the laws under which these pxjgsecptions are brought be strengthened and made more definite. 5

A few years ago there was loud complaint that the law. could not be invoked against wealthy offenders. There is no such complaint now. The course of the department of juglce‘e during -the last few yvears has been such as to make it evident that no man stands above the law, that no corporation is so wealthy that it cannot be held to account. The department of ' justice has been _as prompt to proceed against the wealthfest malefactor whose crime was one of greed and cunning as to proceed against the agitator -who incites to brutal wiolence. Everything that can be done under the existing law, and with the existing state of public opinion, which so profoundly influences both the courts and juries, has been done. But the laws themselves need strengthening in more: than one- important point; they should be made more definite, so that no honest man can be led unwittingly to break them, and so that the real wrongdoer can be readily punished. e e b Moreover, there must be ‘the public opinion back of the laws or the laws themselves will be of no avail. At present, while the average juryman undoubtedly wishes to see trusts broken up, and is quite ready to fine the _corporation itself, he is very reluctant to find the facts proven beyond a reasonable doubt when it comes to sending to. jail a member of the business community for indulging in practices which are profoundly unhealthy, but which, unfortunately, ‘the business community has grown to recognize as well-nigh normal. Both the present condition of the law and the present temper of juries render it a task of extreme difficulty to get #t the real wrongdoer in any case, especially by imprisonment. Yet it is from every standpoint far preferable to punish the prime offender by imprisonment rather than fo fine the corporation, with the attendant damage to stockholders. Y %

The two great evils ip the execution of our criminal laws to-day are sentimentality and technicality. For the latter the remedy zgust come from the hands of the legislatures, the courts and the laywege. The other must depend for .its cure upon the gradual growth of a sound public opjnion which shall insist that regard for the law and the demands of reason shall control all other influences and emotions in the jury box. Both of these evils must be removed or public discontent with the criminal law will continue. : . J

The Use and the Abuse of Injunctions. 4

“Instances of abuse in the granting of injunctions in labor disputes continue to occur, and the resentment in the minds of those who feel that their rights are being invaded and their liberty of action, and of speech unwarrantably restrained continues to grow. Much of the attack on the use of the process of injunction is wholly without warrant; but I am constrained to express the belief. that for some of it there is warrant. This question is becoming more and more of prime importance, and unless the courts will themselves deal with it in-effective manner, it is certain ultimately to demand some form of legislative action. It would be most unfortunate for our social welfare if we should permit many honest and law-abiding citizens to feel that they had just cause for regarding our courts with hostility. I earnestly commend to the attention of the _congress this matter, so shat some way may . be devised which will limit the abuse of injunctions and protect those rights which from time to time it unwarrantably invades. Moreover, discontent is often ekpressed with the use of the process of injunction by the courts, not only in labor disputes, but whére state laws are concerned. I refrain from discussion of this question as I am informed that it will soon receive the consideration of the supreme court.” A s &

.Of other legislation in the interest of labor he favors federal inspection of railroads; providing limited but definite compensation for dccidents to all workmen employed in any way by the government, and says: e Lags !

“The constitutionality of the employers’ liability act passed by the preceding congress has been carried before the courts, In two jurisdictions the law has béen. declared unconstitutional, and in three jurisdictions its constitutionality has been affirmed. The question has been carried to toe supreme court, the case ' has been heard by #hat.tribunal, and a.decision is expected. at an early date. In the event that the court should affirm the constitutionality of the act, I urge further legislation along the.lines advocated in my message to the preceding congress. The practice of putting the entire burden of loss of life or limb upon the victim or the victim's family is a form of socfal injustice in which the United States stands in umenviable prominence. In both out federal and our state legislation we have, with * few = eéxceptions, scarcely gone farther than the repeal of the fellowservant principle of, the old law of liability, and in some of our states even this sliglit modification of a- complete outgrown principle has not Yyet been : secured.”” ; g g

He favors the extension of’the eighthour law to all departments of the government, and to all work carried on by the government. He urges legislation for the compulsory investigation of industrial disputes, and says: : ‘““The need for some provision for such investigation, was forcibly illustrated during the past summer. A strike of telegraph operators seriously interfered with telegraphic communication, caus-, ing great damage to business interests and serious inconvenience to the general public. Aur&nll were made to me from many parts of the country, from city ' ‘councils, - from boards of trade, from chambers of 'comrl:‘uoe, ﬁ:‘ndtmm labor organizations, urging t steps be taken to terminate the strike, Everything that could with ‘any propriety be done by a represemtative of the government was done. without avall, and for weeks the public stood ‘and suffered without recourse of cny’ kind. Had t‘ha mmm~-¢ﬁ:§!¢ and had there ‘been authority T | npulsory investigation of the mmm’mv would have been placed in ession

'public opinion would probably have brought about prompt;adjustment. : “It. is idle to.hold that without good laws evils such as child labor, as the over-working of women, as the failure to protect employes from loss of ‘life or limb, can be efféctively reached, any more than the evils of rebates and stock-watering can be. reached without good laws.. To fail to stop these practices by. legislation means to force honest men into them, because otherwise the dishonest who surely will ‘take advantage of them ‘will have ‘everything their own way. If the states will correct these evils, well and good; but the nation must stand ready to aid them. :

When the department of agriculture was founded there was '!'r!ﬁgh',me‘erlﬂ‘t as to its usefulness. No department of the government, however, has more -emphatically vindicated its usefulness, and none save the post office department comes so continually an%hlnﬂma_ﬁ‘qy into. touch with the people. The twe citizens whose welfare is in theg{lggm%zegmost vital to the welfare of the nation, and ‘therefore to the welfare, of all other citis zens, are- the ~wage-worker < 'who does manual laber and the. tiller of the soil, the farmer. There are, of course, kinds of labor where the work must be purely mental, and there. are other kinds of lab6r where, under existing conditions,’ very little demand indeed. is made upon the mind, though I am glad to say that the proportion of men engaged in this kind of work is diminishing. But in any community with the solid, healthy qualities which make up a really great nation’ the bulk of the people should do work which calls for the exercise of both body and mind. Progress can not permanently exist in the abandonment of physical lahor, but in the development of physical labor, so that it shall represent more and more the work of the trained mind in the: trained body. Our school . system is gravely defective in so far as it it puts.a premium upon mere literary training and ténds .therefore to . train the boy away from the farm and the workshop. Nothing is more needed than the best type of industridl ‘school, the school :for mechanical industries in the city, the school for practically teaching agriculture in the country. The calling of the skilled tiller of the soil, the calling of the skilled mechanic, should alike be recognized as professions, just as emphatically as the callings of .Jawyer, doctor, merchant, or clerk. The schools should recognize this fact and it should be equally recognized in popular opinion. The young man who has' the farsightedness and courage to recognize it and get over the idea that it makes a difference whether what he earns is called salary or wages, and who refuses to enter the crowded field of the so-called professions, and takes to constructive industry instead, is ‘reasonably sure' of an ample reward in earnings, in health, in opportunity to marry early, and. to establish a home with a fair amount of freedom from worry. It should be one of our prime objects to put both the farmer and the mechanic on & higher plane of efficiency and reward, so as to increase their effectiveness in the economic world, and therefore the dignity, the remuneration, and the power of their -positions in the social world. Inland Waterway Systems : : 3 Should Be Deevloped. ' “The conservation of our national resources and their proper use constitute the fundamental problem which, underlies almost every other problem of our national life. We must maintain for our civilization the adequate material basis without ‘which that civilization cannot exist. We must show foresight, we must look ahead. As .a nation we not only enjoy a wonderful measure of present prosperity but if this prosperity is used aright it is an earnest of ‘future success such as no other nation will have. The reward of foresight for this hation is great and easily foretold. But there must be the look ahead, there must be a realization of the fact that to waste, to destroy, our natural resources, to skin and exhaust the land instead of using it so as to increase its usefulness, will result in undermining in the days of our children the ' very prosperity which we ought by rliht to hand down to them amplified and developed. For the last few years, ts.‘rough several agencies, the government has been endeavoring to get our people to look ahead and to substitute a planned and orderly development of our reSources in place of a haphazard striving for immediate profit. Our great river systems should be developed as national water highways; the MissisSlpﬁ)i' with its tributaries, standing first in importance, and ‘the Columbja gecond, although there are many others of importance on the Pacific and Atlantic and the gulf slopes. The national gov‘ernment should undertake this work, and I hope a beginning will be made in the present c¢ongress; and the greatest of all our rivers, the Mississippi. should receive especial attention. From the Great Lakes to the mouth of the Mississippi there should be a deep waterway, with deep waterways leading from it to the east and the west:. Such a waterway would practically mean the extension of our coast line into the very heart of our country. It would be of incaleulable benefit to owr people. If. begun at once it can be carried through in time appréciably to relieve the congestion of our great freight-carrying lines of railroads. The work should be systematically and continuously carried forward in accordance with some wellconceived glan. The main streams should be improved to the highest point of efficiency before the improvement of the branches is attempted; and the work .should be kept free from every taint of recklessness or jobbery.”

+Attention is called to the work of irrigation and reclamation of government lands. In the same connection he asks for a revision of the public land lawss along the lines proposed by the public lands commission. Believes the government should increase its efforts to conserve our forests and should increase by purchase the existihg forest preserves. On the subject of the natural rescources of the nation he says: ' :

“In the eastern United States ‘the mineral fuels have already passed into the hands of large private owners, aqd those of the west are rapidly following. It is obvious that these fuels should be conserved and not wasted, and it would be well to protect the people ‘against unjust and extortionate prices, so far 'as that can still be done.” What has ' been accomplished in ‘the great oil fields of the Indian Territory by the action of the administration offers a striking example of the good results of such a policy. In my judgment the government should have,the right to keep the fee of the coal, oil and gas ‘fields in its own possession and to leasé¢ the rights to dévelop them ' under -propér regulations; or else, if the congress will not ado&% his method, the coal deposits should be\sold under limitations, to conserve them as publie utilities, the right to miye coal being separated from the title\to the soil. The regulations should Rpermit coal lands to be worked in suffitient quantity by the several corporations.. The present limitations have be&n absurd, excessive, and serve no useful purpose, and often render it nécessary that there should. be either fraud or :else abandonment of h;e _work - of, getting out the coal.™ =~ AR Y Progress of the Work On the Panama Csnal. ’ " “Work on the Panama ¢anal is proc@edlqg‘ fn a highly satisfactory manner, “In ‘March the total excavation in the Culebra Cut, where effort was qh;n:’ﬂr glominti:lgt&d*, ‘was. 815,270 cyb:u yards. In April this was W« Ised to ,ﬁgutfam:rnuf . ’?&h vas a cons Avoman M-t outin | lod May and June owing partly to the ade of the rainy season and partly to temporary ;trouble with the steam mﬁgmmthc question of wages. This trouble was settled satisfactorily R R B TR 18 e wiirend eu o Sok of B6T: RPN ﬂ&§*v¥~m 5 -l»ﬁa?‘?‘%igr wwf"« m«zmwé wggpﬁn “ ot e \é,?:ﬁﬂu ,?.':-i-@%% M b T e S e

were from accessory werks. These reSults .were achieved in the rainy season with a rainfall in August of 11.89 inches and in September of 11.65 inches. Finally, in October, the = record was again gglip‘gd. the total excavation being 1,868,729 cubic yards; a truly extraordinary record, el&:eciauy in view of the heavy rainfall®*which was 17.1 inches.. In fact, experience during the last two rainy seasons demonstrates that the rains are a less serious. obstacle to progress -than has hitherto been supposed. o ¥ { “Work on the locks and dams at Gatun, which began actively in March last, has advanced so far that it is thought that masonry work on the locks can be begun within 15 months. “Last winter bids were «rquep%ﬁnﬁ received for doing the''work of ‘eanal

construction by contract. None of theﬁ was found. to be satisfactory and a were rejected. It is the unanimous opinion of the present com’qj the work - can be ‘done mtgm‘” & cheaply, and more:quickly by govs ernment than by private contractars. Fully 80 per cent. of the entire plant needed for construction has been purchased, or contracted for; machine shops have been erected and equipped for making all needed repairs to the plant; many thousands of. employes have been secured; an effective organization has been perfected; a recruiting systém is in operation which is capable of furnishing more labor than can be used, advantageously; -employes .are well ~sheltered and well fed; salaries paid are satisfactory, and the work is not only going forward smoothly, but it is producing results far in advance of the most sanguine - anticipations. Under these favorable conditions, a change in the method. 0f prosecuting the work would be unwise and unjustifiable, for it would inevitably|disorganize existing conditions, check| progress, and increase the cost and lengthen the time of completing the canal) President Recommends -

Postal Savings Banks. | | “I commend to the favorable consideration of the c(ﬁ'lgtress a ppstal savs ings bank system, as recommended by the postmaster general. The primary object is to encourage among our people economy and thrift and by the use of postal savings banks to give them an opportunity to husband their resources, particularly those i.who have not the facilities at hand for depositing their money in savings banks. Viewed, however, from the experience of the past few weeks, it is evident that the advantages of such an Insti"c‘ution'-' are still more fdr-re,a“ching.' Timid depositors have withdrawn their savings for the time being from national banks; individuals have hoarded their cash and the workingmen their earnings; all of which money has been withdrawn and kept in®hiding or in tlle safe deposit boxc to the detriment of prosperity. Through the agency of the postal savings banks such moue‘tv would be restored to the channels of trade, to the mutual benefit of capital and labor. “I further commend to the congress the consideration of the postmaster general’s recommendation for an extension of the parcel post, especially on the rural routes. . There arF now 38,215 rural routes, serving nearly 15,000,000 people who do not have the advantages of the inhabitants of cities in obtaining their supplies. These recommendations have been drawn up to benefit the farmer and the country storekeeper; otherwise, I should not favor them, for I believe that it is good policy for our government to do everything possible to aid the small town and the country district. It is desirable ‘that the country merchantishould not be crushed out. I =

“The -fourth-class postmasters’ convention has passed a very strong resolution in favor of placing the fourthclass postmasters under the civil-serv-ice law. The administration has already put into effect the policy of refusing to remove any fourth-class postmasters save for reasons, congected with the good of the service;.and it is endeavoring so far as possible to remove them from the domain of partisan politics.” It would be a most desirable thing to put the fourth-class postmasters in the classified service.” He renews his recommendations of last year in regatd to Ala.slga; calls attention to the admission of Oklahoma as a state; urges the importance of providing shipping relief for Hawaii; asks for citizenship for Porto Ricans, and promises Ssubmission of Secretary Taft's report on Philippines when that official returns, : P He asks. for the creation of a bureau of mines; recommends the providing of funds for preserving The Hermitage, the home of Andrew Jackson; and the erection of a mnaval monument: at Vicksburg., i ; Corporntion’ Contributions | to Compaign Expenses. £ NG

‘“Under our form of government voting is not merely a right but a duty, and, moreover, a fundamental and necessary duty if & man is to be a good citizen. It is well to provide that corporations shall not contribute to presidential or national campaigns, and furthermore to provide for the -publication of both contributions and expendjtures. There is, however, always' danger in laws of t}iis kind, whieh, from their very nature are -difficult of enforcement; the danger being lest they be obeyed only by the honest, and disobeyed by the. unscrupulous, = so as to act only-as a penalty upon honest men. -Moreover, no such law would hamper an unscrupulous man of unlimited means from buying his own way. into office. There is ‘a very radical measure which would, T believe, work a substantial improvement in our system of conducting a campaign, although I am well aware that it will take some time for people to so familiarize themselves with such a proposal as to be willing to consider its adoption. The need for collecting large campaign funds would vanish it congress provided an appropriation for the proper and legitimate expenses of each of the great national parties, an appropriation ample enough to meet the ‘necessity for thorough organization and machinery,! which requires a large expenditure of money. Then the stipula~ tion should be made that no party receiving campaign funds from: the treasury should accept more than a fixed amount Arom any individual subscriber or donor; and the necessary publicity for receipts and expenditures could without difficulty be provided,” * | o] : x ‘

Wants Improvement in- the 4

Ocean Mail Service. : “I"eall your especial attention to the unsatisfactory condition 6f. our foreign mail service, which, because 6f the lack of Ameérican steamship lines, is tHow largely done. through foreign lines, and which, particularly so far as South and Central America are concerned, is done in a manner which constitutes a serious barrier to the extensions of our commerce. ““The time has come, in my judgment, to set to work seriously to make our ocean mail service correspond more closely with our recent commercial and political development. A beginning was made by the ocean mail act of March 3, 1891, but éven at that time the act was known to be inadequate in various particulars. Bifice that time events have moved rapidly in our history. - We have acquired Hawall, the Philippines, and lesser islands in the Pacific. We are steadily proseeutinig the great work of uniting at the Isthinus the waters of the Atlantic and the Pacific. To a- greater extent than ‘seemed ‘probably even a dozen years ago we may look to an American future on the 'sea worthy of the tradition of our past. As the first step in that direction, and the step most feasible at the present time, I recommend. the extension of the ocean mail act of ;891- That act has stood for some years | ree (’rom::mlui criticism”of its principle and purpose. It was based on theories of the obligations of & great mariand fol Vx dby other nations since the those theorie n;qth:tglt s the duty of SHARE SEPION KSR 00l ?“’.‘g " RS TR T L ORI T L R T A

‘of the shipyards in which our battleships ‘must be built. ’ Asks Increase in Pay : : tbr Army Officers and Men. " The ' president devotes much spade to ‘the affairs of the army, ' and strongly urges that our regular military organization be kept up to the highest possible standard of efficiency, and says:

“The: medical corps should be much greater than the needs of our regular army in war. Yet at present it is smaller than the needs of the service demand even in peace. The Spanish war occurred less than ten years ago. The chief loss we suffered in it was by dis.ease among the regiments which never ’mﬂ;;_the country. At the moment the W.n@me& deéply impressed by this ‘ t; yet seemingly it has already been forgotter, for not the slightest effort has been mge . to prepare a medical corps of sufficient size to prevent the

repetition ‘of the siame disaster on a ‘much larger scale if we should ever be engaged in a serious conflict. . “But the medical department is not the only department for whi¢h increased provision should be made. The rate of pay for the officers should be greatly increased; there is no higher type of citizen than the American regular officer, and he should havé a fair reward for his admirable work. There should be a relatively even greater increase in the pay for the enlisted ‘men. An especial provision should be made for establishing grades equivalent to those of warrant officers in the navy, which should be open to the enlisted men who serve sufficiently long and who do their work well. Inducements should be offered sufficient to encourage, really ‘good men to make the army a life occupation. The prime needs of our present army is to secure and retain competent noncommissioned officers. This difficulty rests fundamentally on the question of paly. The noncommissioned officer does not correspond with an unskilled laborer; he corresponds to the best type of skilled workman or to the subordinate official in civil institutions. Wages have greatly increased in outside occupations in the last 40 years and the pay of the soldier, like the pay of the officers, should be proportionately increased. The first sergeant of a company, if a good man, must be one of such executive and- administrative ability, and such knowledge of his trade, as to be worth far more than we at present pay him. The same is true of the regimental sergeant major. These men should be men who had fully re« solved to make the army a life occupation and they should be able to look forward to ample reward; while only men properly qualified should be given a chance to secure these final rewards. The increase over the present pay need not be great in the lower grades for the first one or two enlistments, but the increase should be marked for the noncommissioned officers of the upper grades who serve long enough to make it evident that they intend to stay permanently in the army, while additional pay should be given for high qualifications in target practice. :

“Among the officers there should be severe examinations to weed out the unfit up to the grade of major. From that position on appointments should be solely by selection and it should be understood that a man of merely average capacity could never get beyond the position of major, while every man who serves i@ any grade a certain length of time prior to promotion to the next grade without getting the promotion to the next grade ‘should.be forthwith 'retired.” .

President Sees Need of Largely Increased Navy.

The president asks for a continuous increase in the navy, and asks present congress for appropriations for four new battleships. and says: . . “We need always to remember that .in time of war the ndvy is not to be ‘used to defend: harbors and sea-coast ¢ities; we should perfect our system of coast fortifications. The only efficient use for the navy is for offense. The only way in which it can efficiently protect our own coast against the possible action of a foreign navy is by destroy= ing that foreign navy. For defense against a hostile fleet which actually attacks them, the coast cities must depend upon their forts, mines, torpedoes, submarines and torpedo boats and destrovers. All of these together are efficient for defensive purposes, but they in no way suptp}g thé place of a thoroughly efficien avy capable of acting on the offensive; for plrrying never yet won' 4 fight. ‘lt can only be won by hard hiting, and an aggressive sea-go-ing navy alone can do this hard hitting of the offensive type. But the forts and the’like are necessary so that the navy may be footloose. In time of war there is sure to be demand, under pres=sure of fright, for the ships to be scattered so as to defend all kind of ports. Under penalty of terrible disaster, this demand must be refused. The ships must be kept together, and their objective made the enemies’ ‘fleet. If fortifications are sufficiently strong, no modern navy wiil venture to attack them, so long @s the foe has in existence a hostile navy of anything like the same size or efficlency. But unless there exists such a navy then the fortifications are powerless by themselves to secure the victory. For of course the meére deflciency means that any, resolute enemy can at his leisure combine all his forces upon one point with the certainty that he can take it. Gives Reasons for Despatch 5

0t Fjeet to the fPaciﬂe.

“Untii our vattle fleet is much larger than at present it should never be split into detachments so far apart that they could not in event of emeérgency be speedily united. Our coast line is on the Pacific just as much as on the Atlantic. The interests of California, Oregon and Washington are as emphatically the interests of the whole union as those of Maine and New York, of Louisiana and Texas. The battle fleet should now and then be moved to the PRacific, justas at other times it should be kept in the Atlantic. When the isthmian canal is built the transit of the battle fleet from one ocean to the other will be comparatively easy. Until it is built I earnestly hope that the battle fleet will be thus shifted between the two oceans every year. or two. The marksmanship on aIF- our ships has improved phenomenally during -the last five years. Until within the last two or three ¥ears it was not possible to train a battle fleet in squadron maneuvers uinder service conditions, and it is only diiring these last two or . three years thét the training under these conditions -has become really effective. Another afd most necessaty _stride in advance is HOW being takem. ‘the battle fleet is about starting by the Straits of Magellan fo visit the ‘Pacific coast. Sixteen battleships are. ;g‘olng under the command of Rear Admiral Evans, while eight afmored cruisers and two other ba.ttlesiﬂp‘s will meet him at San Francisco, whither certdin torpedo destroyers are also going. No fleet of such size has' eveér made such a voyage, and it will be of very great educational use to all en« gaged in it. The only way by which to' teach officers and men how o handle the fleet 80 as to meet every possible strain eand emergency in time of war is to haVe tliem practice under similar conditions in time -of peace. Moreover, the only way to find out our actual needs is to perform in time of peace whatever maneuvers might be necessary in time of war. After war ‘uzde-;i c%ﬁt is too late to find out the needs; that means to invite disaster. mtm to 'ﬂm‘-‘ng':g;ihgw “what 48 %0 Jaovifle tor them = The propsr ﬁ"" or an officer to learn his duty s at sea, and the only way in which a g:l ’*’3"" %i*‘ﬁ"f *&"M is by practice at sea, under un%mm tions ‘which would hwve to be met if "He reviews the work accomplished ’7 the sadond ' PRI S g Ao e S St e niopa el eS £ orls ment of the island republic; asks per- | Tt R R L wm,ﬂﬁmﬁg% g s inlilishatognes ik et N Y }g~._‘§ = PNera et Deianitaetie o o .{1 -.w"-,r:.'v,.-;".'* Pioit to Magion,: . . 0

ONLY THROUGH LOVE

Kathereen had been spending the afternoon at the art exhibition. When she was leaving she pushed ‘her way through the hall, and near the: door passed the same gay group who had caught her attention once before. They did not see her this time, she was -sure; Louisa was ‘eagerly criticising a picture with a tall younglady, and her brother was leaning over his pretty blonde companion with some laughing remark. No, they did not see her; .she ran down the stairs, and ‘walked quickly “along the crowded thoroughfare, trying not to think. Why did she feel so hurt and angry, and so inclined to cry? Why should they ‘have cared to recognize her—a girl in| a shabby gown? It was more than a year since they had seen her, and then only for a few weeks—but they had been such good friends during that short time. True, it was in a cauntry village, where~there was no fashionable society, and boarding at the same farm house, they \ were thrown much together; and she Wgs a very pleasant companion and had the knack of finding the shadiest rides, and the nooks where the- blackberries grew thickest. .- If it had -been anyone but Louisa and—and - Dr. Leigh! She checked a rising sob, and turned into a side street. It was almost deserted, and hardly half a square away was a tall young man; coming toward her. She recognized him instantly, and her first impulse was to turn back. But no, he might have seen her—she would not run away. She threw her head proudly up, and looked straight before her. =He might recognige. her now—he was alone; but she would not see him. He was quite near now, -and her heart was beating fast. Would he pass her by? : “Miss Graydon!” = The¢ joyful surprise in his tone sounded very genuine, but she would not notice it. - “How do. you do, Dr. Leigh?’ she said eoldly, ,ignoring his outstretched hand. Her expression changed. “Are you not going to- shake hands with me, Miss Katherine?’

She put her hand unwillingly into his. | ¢ B 5

“How long have you:been in town? Where are you stopping?”’ he questioned.. i ; S

“I have been in town eight months,” she g s‘aid distinctly, “and I am boarding In South Benton street.” . She took especial satisfactionsin naming the unfashionable quarter. * Bl s

Katherine was an orphan and was trying hard to cultivate her voice., She managed to make ends meet by taking pupils of her own. - They walked on in silence a few minutes. They had: eggxrned»into_ a street where the houséss were tall and shabby and built close together. = “And you are living.down here?” he said, indicating the seemingly endless row of houses. “Alone, Miss Katherine?” : : }

Yes, algne, My landlady ang her family are Very ’reispectgﬁg and goodhearted, but hardly congenial. Yes, I am practically alone. This is the place. I can't ask you in, Dr. Leigh —II have too mygh congideration for your feelings. Mrs. Hawkins’ front parlor is something to weep over.” Now and then Katherine met Dr Leigh walking. in Benton street, and he always _joined her, looking surprised and pleased. - She knew he woérked hard at his profession, and also that the large fortune left by his father rendered it quite unnecessary. She ventured to qlﬁt%n him once when the subject was touched upom. “I love my work,” he said. “And I should not-be happy idle.” ] - “But you need not be idle. .There are & hundred things to interest one and fill one’s time% o Katherine began to look forward to thed® walks and talks, and to the great bunches of violets and hothouse roses she often found in her room, with Murray Leigh's card attached. s st Sy

One day she found her washerwoman waiting for her with the plea that she would come to see her sick daughter.

“I hate to bother you, miss, but’ she’sibe’'n cryin’ fur you, an’ it seems like she would git better if yout would come an’ sing fur her. She’s that lowsperited she can’t git well. It's that terrible la grippy, miss.” ty So Katherine went, taking with her Leigh's lavish gift of flowers. “I ean at least add a little brightness to some one else’s life,” she thought, and herself, felt brighter far the good it did the child. . . -She went often affer that, not knowing how oftefi she barely missed meeting Dr. Leigh én the narrow staircase. One evening Murray Leigh stopped quietly to listeti & momegnt at the half-open door. . Wheft the song was finished he entered without knocking, and Katherine rose, flushed and agi--]

tated, and bade the invalid a hurried “Good night.” : % : : - “Wait five minutes, Miss Grayden, and I will go home wyith you,” Leigh said. “Qh, lam not in the least timid.- I will ot trouble you, Dr. Leigh. Good might, Mamie.” . - She hurried through the doorway; but Leigh followed her. - : ¢ “If you won't wait for me, Miss Graydon,” he said, blocking the passage, “? will leave my patient and go with yow mow.. .. - ~ 00 oo ‘}- He smiled, put Katherine thought he looked very determined. For a moment she hesitated, half inclined to resent his tone. Then she said: “Very well, 1 will wait at the street door.”",_ o S = In a few minutes be joined . her there. It m&h dark now, except ‘and as they stepped out iato the emp-. | gard ¥ ith such reverence,” she said. Y lADERGY | aid 1 m%*“ &of quack, she thought” = |

(Copyright.)

~ “And you are their Lady Bountiful. I did not dream of meeting you there, Miss Graydon.” 5 : “lI dare say not,” she answered. “You thought su¢h a butterfly. as I -would - seek gayer haunts.” He looked down at her in quick surprise, for it was the first touch of bitterness he had heard from her, , “You have done my patient no end -of good,” he said, cheerfully, -ignoting her tone. “She will be upin a ‘day or two. But I'm afraid you've ‘given away my flowers.” ~* “Not all of them,” said Katherine, glancing down at a tiny bunch of violets pinned on his jacket. “I am glad .you've had a suceessful fight with }that terrible la grippy.” She laughed a little, but the laugh was very near to tears. et g . “They have been doing very well since Malloy died,” Dr. Leigh said. “The son is a great help to his mother. and the daughtér, too, is a good ° little' thing. ' They seem quite con tented in their hard, narrow life. Poor things!” ‘ “I don’t pity them,” Katherine éxclaimed; “I envy them.” “Oh, no!” said Dr. Leigh; “it surely might be worse, but I don’t understand your envying them.” “If you had ever been alone, you would.” . : \ “Poor little girl!” muttered Leigh, Z / il ‘*’l{"' i ! % / : /%. ‘ i '‘l H X A hyﬁ‘ G * I’ ( i{ lﬁ 7/7 ' ([l‘ f‘;J H%// ur///;//// i R ) Wk / ) PSR R B y{‘/.,, M’/ "'i‘l / ‘/; ‘,/,// ,//?‘/.r/ // 7 'f'-»-':,' = e : o !//’/ %////7!/ /} / 1 BEL ii / ! B W R ii/1 i \\“\.g “ : = { Y 'u"',".- HHUTH ’ ‘fl { —— | f'//?""-’//;!" i IR o ,T \\ | :':—/:_‘ t‘!r" |(R \\\\H eg(NBT TR “Lh i =ly —— _\‘/‘ \§_‘ J p “Sayg¥ou Will Marry Me, Kitty?” . His own heart was beating rapidly. At last he said in a low tone: “You need not be alone a day longer. You know that, don’t you, Katherine?” iy ‘ " Katherine almost stopped, as she turned -to look at him, startled, | i “I know you don’t care for me,” he went on; “though you like' me well enpugh in a friendly way; your manner has glways made that clear.. But, Katherine, I could make you care if you were my wife, and at least you_ would not be alone nor have that horrible drudgery of teaching: Is not that reason enough for marrying me?”’ i G ™ should have to be far worse off than I am,” she answeréd, slowly, “before I could do that. : | Leigh flushed. “PDoni’t you think that is a little hard?” he said, somewhat bitterly. Then Katherine broke down and buried her face in her handkerchief. “You misundérstood me—l am vgry sorry.” g < e i “Then prove that ¥&u dre sorry my saying you will marry me.” : He waited a minute afid then teok the hand which lay on his &fm.

“If you knew how I love yodt, dear,” he said, persuasively. “Kitty—l have always longed to call you that— say you will marry me, Kitty—" 4T will marry you—' : SORHIyiY - .

“Because—* She 'hesiq:tted. “My darling, I don't care why! So long as you marry me, it makes no difference.” ;

; “It makes a difference to me.. I would never marry for the reasons you gave. 1 will marry you becaixsg—— I love you.” : : And though they were in the fuil glate of the electric light, he put his arms &about héer, and bent and kissed her lips. CEoas _ “I am the happiest fellow in’ the world!” he said. o “It is. hard t 6 believe that T am the same miserable girl who left hére two hours ago,” Katheérine said, when she bade him “Good might.” “What & wonderful difference lo¥& ean make in

| one’s life.” : A — Trick of Heathen Chisee. A prominent lawyer is foid of relating a story of an amusing ineident which occurred a few years ago in the criminal court, and which, he asserts, is only another proof that when' it ‘comes to ways that are dark and' tricks that are vain, the heathen ' Chinee-is all that Bret Harte pictured! lim. A Chinaman was being tried on sowe minor offense, and there were some 20 or 30 of his countrymen in the courtroom. During the noon recess the ‘ accused mingled freely with the other Chinamew®, and when court resumed ‘the prisomer eould not be located. He was called but did not answer to his name. As & last resort, each Chinaman in the room: was marched up and ’mﬁf he was the accused. Finally, the right Chinaman was found, but, in e meattiine W - diguity of the court - Dareine Guie e Bonit e eA e S %gﬁmg}"%sﬁs,sg é i‘**’”"d—@ﬁﬂ%‘* ca 2% -' w&@”%&%&w%@@wﬂy@mf%% e Rttt ateae L T R e e mwe%@r‘?f?ﬂ