Richmond Palladium (Daily), Volume 36, Number 27, 6 December 1910 — Page 7

be abolished or with reduced fore made part of the central auditing yslem. " Tltere are entirely too many cuatoma districts and too many customs collectors. These districts should be consolidated and tno collectora In charge of them who draw good salaries, many of them out of proportion to the collections made, should be abolished or treated as mere branch offices, in accordance with the plan of the treasury department, which will be presented for the consideration of congress. As an Illustration, the cost of collecting 1 of revenue at typical small porta like the port of York. Me., was $M.04. At the port of Annapolis, Md., it cost 1300.41 to collect SI of revenue; at Natchez, $52.76; at Alexandria, Va., $122.40. It Is not essential to the preventing of smuggling that customs districts should bo Increased in number. The violation of the customs laws can be iulte as easily prevented and much inore economically by the revenue cutter service and by the use of the special agent traveling force of tbs treasury department. A reorganization of the special customs s Rents hss been jierfected with a view to retaining only those who have special knowledge of

the customs laws, regulations and usual methods of evasion, and with this 1m-1 provement there will t no danger to ' the government from the recommend-' M IIJ.il .4 .luJItlAn I toms districts. An investigation of the appraising system now lu vogue In New York city t has shown nnderapprslsement ar.d a i sacrifice of the Interests of the gov- J ernment, which Is In the course or being remedied by reorganization and the employment of competent eiperta. Prosecutions have been Instituted growlng out of the frauds there discovered nnd are now awaiting hearing lu the federal courts. Very great improvements have been made In respect to the mints and assay offices. Diminished ajfrroprlatlons nav leen asked for thoso whose continuance Is unnecessary, and this year's estimate of expenses Is $32d.0O0 less than two years ago. There is an opportunity for further saving In the abolition of several mints and assay offices that have now become unnecessary, during the past year 100 unnecessary employees have been dropped from the Philadelphia mint. Modern machinery has been Installed there, more and better work has been done, aud the appropriations havo beeu consequently diminished. In the bureau of engraving and printing great economies have been effected. Useless divisions have Issen abolished with the result of saving $440.tmo this year lu the total expenses of the bureau despite Increased business. The treasurer's office and that of the division of public moneys In part cover the same functions, and th is also true of the office of the register and the division of loans aud currency. Plana for the elimination of the duplication In tbeso offices will be presented lo congress. The office of the comptroller of the currency la one most important In the preservation of proper banking meth- . Am I- IK HitlAntil tin nL-In it ritom rtt the United State, and the present comptroller has Impressed his subordinate with the necessity of so conducting their investigations as to establish the principle that every bank failure la unnecessary because proper Inspection and notice of threatening conditions can prevent It. Public Buildings. In our public buildings we 'still suffer from the method of appropriation which hna been so much criticised In connection with our rivers and borl or. Some method should be devised for controlling the supply of public buildings so that they will harmonize with the actual needs of the government. Not only are buildings appropriated for by congress which are not needed and building left unappropriated for by congress which are needed, but when it comes to the actual construction there has beeu In the past too little study of the building plans and sites with' a view to the actual needs of the government. Post office buildings which are In effort warehouse for the economical handling of transportation of thousand of tons of msll have been made monumental structure and often located far from the convenient aud economical spot. In the actual construction of the buildings a closer scrutiny of the method employed by the government architects or by architects em ployed by the goverumeut bus resulted in decided economics. It is hoed that more time wilt give opportunity for a more thorough reorganization.. The last public building bill carried authorization for the ultimate expenditure of $3.1.01 1,500, and I approved It because of the inauy good features It contained. Just ns I approved the river and harbor bill, but It was drawn upon a principle that ought to be abandoned. It seems to me that the wiser method of preparing a public bulldlug bill would be the preparation of a reiwrt by a commission of government experts whose duty It should be to report to congress the government's needs In the way of the construction of public buildings in every part of the country. Just aa the army engineers make report with reference to the utility of proposed Improvements in rivers and harbors, with the added function which I hare recommended for the army engineers of Including In their recommendation the relative importance of the various projects found to be worthy of approval and execution. Revenue. As the treasury department Is the one through which the Income of the government la collected and its expenditures are disbursed, this seems a proper place to consider the operation of the existing tariff bill, which became a law Aug. 0. 1900. As an Income producing measure the existing tariff bill has never been exceeded by any customs bill la the history of the country. The corporation excise tax. propor tioned to the net Income of every business corporation In the country, haa worked well. The tax ha been easily collected. Its prompt payment indicate that the Incidence o.f the tax haa not been heavy. It offers, moreorer. an opportunity for knowledge by the government of the general condition

and business of all corporations, nnd that means by far the most important part of the business of the country. In the original act provision wss made for the publication of returns. This provision was subsequently amended by congress and the matter left to the regulation of the president. I have directed the issue of the needed regulation and have made it possible for the public generslly to know from an examination of the record the returns of all corporations the stock of which Is listed on any public .stock exchange or Is offered for sale to the general public by advertisement or otherwise. The returns of those corporations whose stock Is not so listed or offered for sale are directed to be open to the Inspection and examination of creditors and stockholders of the corporation whose record Is sought. The returns of all corporations are subject to the Inspection of any government officer or to the examination of any court In which the return made by the corporation is relevant and competent evidence. " The Payn Tariff Act. The schedules of the rates of duty In the Tsyne tariff act have been subjected to a great deal of criticism, some of It Just, more of It unfounded, and to much misrepresentation. The act was adopted In pursuance of a declaration by the party which Is responsible for It that a customs bill should be a tariff for the protection of home Industries, the measure of the protection to be the difference between the cost of produc

ing the Imported article abroad and the cost of producing It at home, together with such addition to that difference as might give a reasonable profit to the home producer. The basis for the criticism of this tariff Is that In respect to a number of the schedule the declared measure was not followed, but a higher difference retained or Inserted by way of undue discrimination In favor of certain Industries and manufactures. Little. If any, of the criticism of the tariff has been directed against the protective principle above stated, but the main lotly of the criticism hss been based on the charge that the attempt to conform to the measure of protection was not honestly and sincerely adhered to. Tariff Board. The time In which the tariff was prepared undoubtedly was so short as to make It Impossible for the congress and Its experts to acquire the Information necessary strictly to conform to the declared measure. In order to avoid criticism of this kind in' the future and for the purpose of more nearly conforming to the party promise congress at Its last session made provision at ray request for the continuance of a board created under the authority of the maximum and minimum clause of the tariff and authorized this board to expend the money appropriated under my direction for the ascertainment of the cost of production at home and abroad of the various articles Included In the schedules of the tariff. The tariff board thus appointed and authorized has been diligent lu preparing itself for the necessary Investigations. The hope of those who have advocated the use of this bonrd, for tariff purIoes Is that the question of the rate of a duty imposed shall become more of a business question and less of a political question, to be ascertained by experts of long training and accurate knowledge. The halt lu business and the shock to business due to the announcement that a new tariff bill is to m prepared and put In operation will be avoided by treating the schedules one by one as occasion shall arise for a change In the rates of each and only after a reiort upon the schedule by the tariff board competent to make such report. It Is not likely that the board will be able to make a report during the present session of congress on any of the schedules, because a proper examination Involves an enormous amount of detail and a great deal of care, but I hope to be able at the opening of the uew congress, or at least during the session of that congress, to bring to its attention the facts lu regard to those schedules in the, preseut tariff that may prove to need amendment. The carrying out of this plan, of course. Involves the full co-operation of congress in limiting the consideration la tariff matters to one schedule at a time, because If a proposed amendment to a tariff bill is to Involve a complete consideration of all the schedules and another revision then we shall only repeat the evil from w hich the business of this coOntry has In times past suffered most grievously by stagnation and uncertainty, pending n resettlement of a law affecting nil business directly or indirectly, and the effect of which no wise business man would Ignore In new projects and new Investments. I cannot too much emphasize the importance and benefit of the plan above proposed for the. treatment of the tariff. It facilitates the removal of noteworthy defects In an important law without a disturbance of business prosperity which is even more Important to the happiness and the comfort of the people than the elimination of instances of injustice In the tariff. The inquiries which the members of the tariff board made during the last summer into the methods pursued by other governments with reference to the fixing of tariffs and the determination of their effect upon trade show that each government maintains an office or bureau the officers and employees of which have made their life work the study of tariff matters, of foreign and home prices and cost of articles imported and the effect of the tariff upon trade, so that whenever a change is thought to be necessary In the tariff law this office is the source of the most reliable Information as to the propriety of the change and its effect. I am strongly convinced that we need In this government just such an office and that It can be secured by making the tariff board already appointed a permanent tariff commission, with such duties, powers and emoluments ae it may seem wise to congress to give. It has been proposed to enlarge the board from three to five. The present number Is convenient, but I do not know that an Increase of two members would be objectionable. Ybether or not the protective policy la to be continued and the degree of protection to bo accorded to our home

Industries are questions which the people must decide through their chosen representatives, but whatever policy is adopted it is clear that t he ( necessary legislation should be based on an" Impartial, thorough and continuous study of the facts. WAR DEPARTMENT,

We Are Sadly In Need of More Officers Deal With Militia, x The war department has within its jurisdiction the management of the array and in connection therewith the coast defenses, the government of the dependencies of the Philippines and of Porto Rico, the recommendation of plans for the improvement of harbors and waterways and their execution when adopted and. by virtue of an executive order, the supervision of the construction of the, Panama canal.' The army of the' United States Is a small body compared with the total number of people for the preservation of whose-peace and good order it is a last recourse. The army now numbers about 80,000 men, of w hom about 18,000 are engaged In the coast artillery and detailed to 'the management and use of the guns In the forts and batteries that protect our coasts. The rest of the army, or about 00.000. is ' the mobile part of our national forces and is divided Into thirty-one regiments of Infantry, including the Porto Rica a regiment, fifteen regiments of cavalry, nix regiments of field artillery, a corps of ordnance, of engineers and of signal, a quartermaster's department,, a commissary department and a medical corps. ; The general plan for an army of the United States at peace should be that of a skeleton organization with an excess of trained officers and thus capa ble of rapid enlargement by enlistments, to be supplemented In emergency by the national militia and a volunteer force. In some measure this plan has been adopted In the very large proportion of cavalry and field artillery as compared with infantry in the present army and on a peace basis. An infantry force can be trained in six months, a cavalry or a light artillery force not under one and a half or two years; hence the Importance of having ready a larger number of the more skilled soldiers. The militia system, for which congress by the constitution is authorized to provide, was developed by the so called Dick law. under which the discipline, the tactics, the drill, the rank, the uniform and the various branches of the militia are assimilated as far as possible to those of the regular army. Under the militia law, as the constitution provides, the governors of the states appoint the militia officers, but by appropriations from congress states have been induced to comply with the rules of assimilation between the regular army and the militia, so that now there is a force, the efficiency of which differs in different states, which could be incorporated under a single command with the regular army and which for some time each year receives the benefit of drill and maneuvers under conditions approximating actual military service under the supervision of regular ormy officers. In the army of the United States, In addition to the regular forces and: the militia forces which may be summoned to the defense of the nation by n the president, there is also the volunteer force, which made up a very large part of the army In the civil war and which In any war of long continuance would become Its most important constituent. There is an act which dates from the civil war. known as the volunteer act, which makes provision for the enlistment of volunteers In the army of the United States In time of war. lWs was found to be so defective ,in .the Philippine war that a special act Jot the organization of volunteer regiments to take part In that war was adopted, and It w as much better adapted to the necessities of the case. There Is now pending In congress a bill repealing the present volunteer act and making provision for the organization of volunteer forces In time of war which Is admirably adapted to meet the exigencies which would . be then presented. The passage of the bill would not , entail a dollar's expense upon the government attfcl time or in the future until war comifs,! but when war does come the methods therein directed are in accordance with the best military judgment as to what they ought to be, and the act would prevent the necessity for the discussion of new legislation and the delays Incident to its consideration and adoption. I earnestly urge the passage of this volunteer bill. I further recommend that congress establish a commission to determine as early as practicable a comprehensive policy for the organization, mobilization and administration of the regular army, the organized militia and the volunteer forces In the eventof war- ' Need For Additional Officers. " One of the great difficulties loathe prompt organization and mobilization of militia and volunteer forces U the absence of competent officers of the rank of captain to teach the new army by the unit of the company the business of being soldiers and' of taking care of themselves so as to render effective service. This need of army officers can only be supplied by provisions of law authorizing the appointment of a greater number of army officers than are needed to supply the commands of regular army troops now enlisted in the service.There are enough regular army officers to command the troops now enlisted, but congress has authorized and the department has followed the example of congress and exercised the authority conferred by detailing these army officers to duty other than that of the command of troops. . For instance, there are a large num. ber of army officers assigned to.tfj with military colleges or In coljegtfci which military training is given,. Then a large number of officers are assigned to general staff duty, and there are various other places to which army officers can be and are legally assigned, which take them away from their regiments and companies. In order that the militia of each state should be properly, drilled and made more like the regular army, regular army

officers should be detailed to assist the adjutant general of each state in the supervision of the state militia, but this Is impossible unless provision U made by congress for a very considerable increase in the number of company and field officers of the army. A bill was pending in the last session of congress for this purpose, and I earnestly hope that In the interest of the proper development of a republican army, an army Small in the time of peace, but possible of prompt and adequate enlargement in time of war. shall become possible under the laws of the United States. A bill, the strong argument , for which can be based on the ground quite similar to that of the increased officers bill, is the bill for the increase of sixty in the army engineers. The army engineers are largely employed In the expenditure of the moneys appropriated for the lmprovemeat of rivers and harbors. This, in addition to their military duties, which Includes the construction of fortifications both of our coasts and In our dependencies, together with the number used In the Panama canal work, requires many more engineers than the army has. and this shortness of supply In

such officers delays important river and harbor work and important fortification work. I earnestly recommend the passage of this bill, which passed the house at the last session and Is now pending in the senate. Fortifications. I have directed that the estimates for appropriation for the Improvement of coast defense In the United States should be reduced to a minimum, while those for the completion of the needed fortifications at Corregidor, In the Philippine Islands, and at. Pearl Harbor, In the Hawaiian Islands, should be expedited as much aa possible. The proposition to, make Olongapo and Sublg bay the naval base for tho Pacific was given up, and It is to be treated merely as a supply station, while the fortifications In the Philippines are to be largely confined to Corregidor island and the. adjacent Islands which command entrance to Manila bay and which are being rendered Impregnable from land and sea attack. The Pacific naval base has been transferred to Pearl Harbor, in the Hawaiian Islands. This necessitates the heavy fortification of the harbor and the establishment of an important military station near Honolulu. I urge that all the estimates made by the war department for these purposes be approved by congressional appropriation. Philippine Islands. During the last summer, at my request, the secretary of war visited the Philippine Islands and has described his trip In his report. He found the islands in a state of tranquillity and growing prosperity, due largely to the change In the tariff laws, which has opened the markets of America to the products of the Philippines and has opened the Philippine markets to American manufactures. Porte Rice. The year has been one of prosperity and progress in Porto Rico. Certain political changes are embodied in the bill "to provide a civil government for Torto Rico and for other purposes," which passed the house of rep resentatives on June 15, 1910, at the last session of congress and is now awaiting the action of the senate. The Importance of those features of this bill relating to public health and sanitation cannot be overestimated. The removal from politics of the judiciary by providing for the appointment of the municipal Judges is excellent, and I recommend that a step further be taken by providing therein for the appointment of secretaries and marshals of these courts. I believe that the provision In the bill for a partially elective senate, the number of elective members being progressively increased, is unwise and that the composition of the senate as provided in the bill as Introduced in the house far better meets conditions existing in Porto Rico. This Is an important measure, and I recommend its early consideration and passage.. Rivers and Harbors. I haye already expressed my opinion to congress in respect to the character of the river and harbor bills which should be enacted into law, and I have exercised as much power as I have under the law In directing the chlei of engineers to make bis reports to congress conform to the needs of the committee framing such a bill In determining which of the proposed improvements is the more important and ought to be completed first and promptly. PROGRESS OF PANAMA CANAL Work Most Satisfactory Completed Jan.1l, 1915 Cost $375,000,000. At the instance of Colonel Goethals, the army engineer officer in charge of the work on the Panama canar, I have just made a visit to the Isthmus to Inspect the work done and to consult with him on the ground as to certain problems which are likely to arise la the near future.- The progress of the work Is most satisfactory. If no unexpected obstacle presents itself the canal will be completed well within the time fixed by Colonel Goethals to wit. Jan. 1, 1915 and within the estimate of cost, $375,000,000. Press reports have reached the United States from time to time giving accounts of slides of earth of very large yardage in the Culebra cut and elsewhere along the line, from which It might be inferred that the work has been much retarded and that the time of completion has been necessarily postponed. The report of Dr. Hayes of the geological survey, whom I sent within the last month to the isthmus to make an investigation, shows that this section of the canal zone is composed of sedimentary rocks of rather weak structure and subject to almost immediate disintegration when exposed to the air. Subsequent to the deposition of these sediments igneous rocks, harder, and more durable, have been thrust into them and, being cold at the time of their in-

trusion. united but Indifferently witnjll?resent eusideration of this ques

the sedimentary rock at the contacts. The result of these conditions is that as the cut is deepened, causing unbal-

anced pressures, slides from the sides of the cut have occurred. These are In part due to the Sowing of surface soli

and decomposed' sedimentary rocks upon inclined surfaces of the underlying undecomposed rock and in part by the crushing of structurally weak beds under excessive pressure. These slides occur on one side or the other of the cut through a distance of four or five miles, and now that their character is understood allowance has been made In the calculations of yardage for the amount of slides which will hare to be removed and the greater slope that will have to tie given to the bank in many places la order to prevent their recurrence. Such allowance does not exceed 10.000.000 yards. Considering that the number of yards removed from this cut on an average of each month through the year is 1,300.000 and that the total remaining to be excavated. Including slides. Is about 30.000,000 yards, It Is seen that this addition to the excavation does not offer any great reason for delay. While this feature of the material to be excavated In the cut will not seriously delay or obstruct the construction of a canal of the lock type, the increase of excavation due to such slides in the cut made eighty-five feet deeier for a sea level canal would certainly have beeu so great as to delay Its completion to a time beyond the patience of the American people. Among questions arising for present solution is the decision whether the canal shall be fortified. I have already stated to the congress that I strongly favor fortification, and J now reiterate this opinion and ask your consideration of the subject in the light of the report already before you made by a competent board. If In our discretion we believe mod ern fortifications to be necessary to the adequate protection and policing of the canal, then It is our duty to construct them. We have built the canal. It Is our property, By convention we have indicated our desire for and Indeed undertaken Its universal and equal use. It is also well known that one of the chief objects In the construction of the canal has been to increase the military effectiveness of our navy. Failure to fortify the canal would leave the attainment of both these aims In the position of rights and obligations which we should be powerless to enforce and which could never In any other way be absolutely safeguarded against a desperate and irresponsible enemy. Canal Tell. ' Another question which arises for consideration and possible legislation is the question of tolls lu the canal. This question is necessarily affected by the probable tonnage which will go through the canal. It Is all a matter of estimate, but one of the government commission In 1900 investigated the question and made a report. He concluded that the total tonnage of the vessels employed in commerce that could use the Isthmian canal in 1914 would amount to 6,843,805 tons net register and that this traffic would increase 25.1 per cent per decade, that it was not, probable that all the commerce Included in the totals would at once abandon the routes at present followed and make use of the new canal and that it might take some time, per haps two years, to readjust trade with reference to the new conditions which the canal would establish. He did not include, moreover, the tonnage of war vessels, although it is to be Inferred that such vessels would make considerable use of the canal In the matter of tolls he reached the conclusion that a dollar a net ton would not drive business away from the canal, but that a higher rate would do so. In determining what the tolls should be we certainly ought not to Insist that for a good many years to come they should amount to enough to pay the interest on the Investment of $400,0Q0.000 which the United States has made in the construction of the canal. We ought not to do this, first, because the benefits to be derived by the United States from this expenditure are not to be measured solely by a return upon the Investment. If it were, then the construction might well have been left to private enterprise. It was because an adequate return upon the money Invested could not be expected immediately or in the near future and because there were peculiar political advantages to be derived from the construction of the canal that It necessarily fell to the government to advance the. money and perform the work. In addition to the benefit to our naval strength, the canal greatly Increases the trade facilities of the United States. It will undoubtedly cheapen the rate,s of transportation in all freight between the eastern and western seaboard, and it will greatly increase that trade by reason of the reduction in its cost. Then U we are to have a world canal and if we are anxious that the routes of the world's trade shall be through the Panama canal we must recognize that we have an active competitor in the Suez canal. Then, too, there are other means of crossing the isthmus by the Tenauntcpec railroad and by other railroads and freight routes in Central America to the Atlanti" side. In all these cases, the question whether the Panama canal is to be used and its tonnage increased will be determined mainly by the charge for its nse. My own Impression Is that the tolls ought not to exceed $1 per net ton. On Jan. 1, 1911, the tolls in the Suez canal are to be 7 francs and 23 centimes for one net ton by Suez canal measurement, which is a modification of Danube measurement. - A dollar a ton will secure under the figures above a gross income from the Panama canal of nearly $7,000,000. The cost of maintenance and operation is estimated to exceed $3,000,000. Ultimately, of course, with the normal increase in trade, the income will approximate the interest . charges upon the Investment. On the whole, I should recommend that within certain limits the president be authorized to fix the tolls of the canal and adjust them to what seems to be commercial necessity. t The Inquiries already made of the chief engineer of the canal show that tion is necessary In order that the com merce of the world may have time to adjust itself to the new conditions re-

suiting from the opening of this new highway. The next question that arises is as to the maintenance, management and general control of the canal after Its completion. It should be premised that It is an essential part of our navy establishment to have the coal, oil and other ship supplies, a drydock and repair shops conveniently located with reference to naval vessels passing through the canal. Now, if the government for naval

purposes Is to undertake to furnish these conveniences to the navy, ana j they are conveniences equally required by commercial vessels, there would j seem to be strong reasons why the gov- j ernment should take over and tnclude ' In Its management the furnishing not only to the navy, but to the public, drydock and repair shop facilities and the sale of coal, oil and other ship supplies. The maintenance of a lock canal of this enormous size In a sparsely populated country and in the tropics, where the danger from disease is always present, requires a large and complete and well trained organization with full police powers, exercising the utmost care. The visitor to the canal who is impressed with the wonderful freedom from tropical diseases on the Isthmus must not be misled as to the constant vigilance that Is needed to preserve this condition. The vast machinery of the locks, the necessary amount of dredging, the preservation of the bank of the canal from slides, the operation and the maintenance of the equipment of the railway will all require a force, not, of course, to be likened In any way to the present organization for construction, but a skilled body of men who can keep in a state of usefulness this great instrument of commerce. - j Such an organization makes It easy to include within its functions the furnishing of drydock, fuel, repairs and supply facilities to the trade of the world. These will be more essential at the isthmus of Panama than they are at Port Said or Sues, because there are no depots for coal, supplies and other commercial necessities within thousands of miles of the Isthmus. Another important reason why these ancillary duties may well be undertaken by the government Is the opportunity for discrimination between patrons of the canal that Is offered where private concessions are granted for the furnishing of these facilities. Nothing would create greater prejudice against the canal than the suspicion that certain lines of traffic were favored in the furnishing of supplies or that the supplies were controlled by any large interest that might have a motive for increasing the cost of the use of the canal. I cannot close this reference to the canal without suggesting as a wise amendment to the Interstate commerce law a provision prohibiting Interstate commerce railroads from owning or controlling ships engaged in the trade through the Panama canaL I believe such a provision may be needed to save to the people of the United States the benefits of the competition in trade between the eastern and western sea boards which this canal was construct ed to secure. " DEPARTMENT OF JUSTICE President Favors Increasing Pay of Judges to $17,000 a Tear. N The duties of the department of justice have been greatly Increased by legislation of congress enacted In the interest of the general welfare of the people and extending its activities into avenues plainly within its constitutional jurisdiction, but which It has not been thought wise or necessary for the general government heretofore to occupy. I am glad to say that under the appropriations made for the department the attorney general has so improved its organization that a vast amount of litigation of a civil and criminal character has been disposed of during the current year. This will explain the necessity for slightly Increasing the estimates for the expenses of the department. His report shows the recoveries made on behalf of the government of duties fraudulently withheld, public lands Improperly patented, fines and penalties for trespass, prosecutions and convictions under the anti-trust law and prosecutions under the Interstate commerce law. I invite especial attention to the prosecutions under the federal law of the so called "bucket shops and of those schemes to defraud in which the use of the mail Is an essential part of the fraudulent conspiracy, prosecutions which have saved Ignorant and weak members of the public and are saving them hundreds of millions of dollars. The violations of the anti-trust law present perhaps the most important litigation before the department, and the number of cases filed shows the activity of the government In enforcing that statute. National Incorporation. . In a special message last year I brought to the attention of congress the propriety and wisdom of enacting a general law providing for the Incorporation of industrial and other companies engaged in interstate commerce, and I renew my recommendation in that behalf. Claims. : I invite the attention of congress to the great number of claims which, at the Instance of congress, have been considered by the court of claims and decided to be valid claims against the government. The delay that occurs In the payment of the money due under the claims injures the reputation of the government as an. honest debtor, and I earnestly recommend that those claims which come to congress with the Judgment and approval of the court of claims should be promptly paid. Judicial Procedure. One great crying need In the United States is cheapening the cost of litigation by simplifying judicial procedure and expediting final judgment. Under present conditions the poor man is at a woeful disadvantage in a legal contest with a corporation or a rich opponent The necessity for the reform exists both In United States courts and in all state courts. In order to bring It about, however. It naturally falls to

the general government by Its example to furnish a model to all states. A legislative commission appointed by joint resolution of congress to revise the procedure In the United States courts has as yet made no report. Under the law the supreme court of the United States haa the power and is given the duty to frame the equity rules of procedure which are to obtain In the federal courts of first Instance. In xiew of the heavy burden of press-

lag litigation which that court has had to carry, with one or two of Its raeuiWrs incapacitated through 111 health. It ha not been able to take up prob lems of Improving the equity procedure, which haa practically remained the same since the organization of the court In 17S9. It is reasonable to ex. pect that with all the vacancies upon the court filled s it will take up the question of cheapening and simplifying the procedure in equity In the courts of the United States. The equity business Is much the more important In the federal courts and, I may. add, much more expensive. I am strongly convinced that the best method of improving judicial procedure at law is to empower the supreme court to do it through the medium of the rules of the court, as In equity. This Is the way In which it has been done in England, and thoroughly done. The simplicity and expedition of procedure in the English courts today make a model for the reform of other systems. Several of the lord chancellors of England and of the chief Justices have left their lasting impress upon the history of their country by their constructive ability In proposing and securing the passage of remedial legislation ef fecting law reforms. I cannot con ceive any higher duty that the su preme court could perform than la 1 .1. . , m m procedure In the United States courts. Unnecessary Appeal, No man ought to have as a matter of right a review of his case by the supreme court. He should be satisfied by one bearing before a court of first instance and one review by a court of appeals. The proper and chief useful ness of the supreme court, and especially of the supreme court of the United States, Is In the cases which come before it so to expound the law, and especially the fundamental law-tbe constitution a to furnish precedents) for h inferior courts In future litigation and for. the executive officers In the construction of statutes and the performance of their legal duties. Therefore any provisions for review of cases by . the supreme court that cast upon that court the duty of passing on questions of evidence and the construction of particular forms of instruments, like Indictments or wills or contracts, decisions not of general application or importance, merely clog and burden the court and render more difficult Its higher function, which makes It ao Important a part of the framework of our government, The supreme court la now carrying aa unnecessary burden of appeals of this kind, snd I earnestly urge that It be removed. . The statutes respecting the review by the supreme court of the United States of decisions of the court of appeals of, the District of Columbia ought to be so amended as to place that court In the same position with respect to the review of ft decisions a that of the various United States circuit courts of appeal. The act of March 2. 1907, authorising appeals by the government from certain Judgments in criminal cases where the defendant has not been put in Jeopardy, within the meaning of the constitution, should be amended so that such appeals should be taken to the circuit courts of appeals instead of to the supreme court in all cases except those Involving the construction of the constitution or the constitutionality of a statute, with the same power In the supreme court to review on certiorari as Is now exercised by that, court over determinations of the several circuit courts of appeals. , Appeals from the United States court In Porto Bko should also ran to the circuit courts of appeals of the third circuit Instead of to the supreme court. These' suggested changes would. X am advised, relieve the supreme court of the consideration of about eighty cases annually and would be In harmony with the theory of review which led to the establishment of the circuit courts of appeals and which I have stated above. The American Bar association has had before It the question of reducing the burden of litigation Involved In reversal op review and new trial or rehearings and In frivolous appeals In habeas corpus and criminal case. Their recommendations have been embodied in bills now pending In congress. The recommendations are not radical, but they will accomplish much If adopted into law, and I earnestly recommend the passage of the bills embodying tbem. Injunction Bill. I wish to renew my urgent recommendation made in my last snnusl message In favo- of the passage of a law wnich shall regulate the issuing of Injunctions In equity without notice In accordance with the best practice now In vogue In the courts of the United States..' ,:Cy, I regard this of especial Importance, first, because It has been promised, and, second, because it will deprive those who now complain of certain alleged abuses In the improper Issuing of Injunction without notice of any real ground for further amendment and will ake away all semblance of support for the extremely radical legislation they propose, which will be most pernicious If adopted, " will sap the foundations of Judicial power and legalize that cruel social instrument, the secondary boycott. .'. Judicial Salaries.' I further recommend to congress the passage of the bill now pending for the increase In the salaries of the fed eral fudges, by which the chief justice of the supreme court shall receive $17.500 and the associate Justices $17,000, the circuit judges constituting the circuit court of appeals shall receive $10 000 and the district judges $9,000. These judges exercise a wide jurisdiction, and their duties require of them a profound knowledge of the law, great ability, in the dispatch of business and care and delicacy In the exercise of their jurisdiction so as to