Richmond Palladium (Daily), Volume 36, Number 27, 6 December 1910 — Page 8

old conflict whenever possible between tbe federal and, the state courts. ' The poaitions they occupy ought to be filled by men who have abown the greatest ability In tbeir professional work at the bar, and It ia the poorest economy possible for the government to pay salaries so low for Judicial service as not to be able to command the best talent of the legal profession In every part of the country. Tbe coat of living la such, especially in tbe large cities, that even the salaries fixed in tbe proposed bill will f liable tbe Incumbents to accumulate little If anything to support their families after their death. Nothing la so

Important to tbe preservation of our country and Its beloved Institutions aa tbe maintenance of tbe independence of tbe Judiciary, and next to the life tenure an adequate salary la the most material contribution to the mainte nance of Independence on tbe part of our Judges. FOSTOFFICE DEPARTMENT. Postal Saving Banks Question of Deficit Franking Abuses. At its last session congress made pro vision for the establishment of savings banks by tbe postofflce department of tbia government, by which, under the general control of trustees consisting of tbe postmaster general, the secre tary of the treasury and tbe attorney genera, tbe system could be begun In a few cities and towns and enlarged to cover within Its operations as many cities and towns and as large a part of the country as seemed wise. The Initiation and establishment of such a system have required a great deal of study on the part of the experts In tbe postofflce and treasury departments, but a system has now been devised which Is believed to be more economical and simpler In Its operation tban any similar system abroad. Arrangements have been perfected so that savings banks will be opened In some cities and towns on the 1st of January, and there will be a gradual extension of tbe benefits of the plan to tbe rest of tbe country. Wiping Out ef Postal Defioit As I have said, tbe postofflce department la a great business department, and I am glad to note tbe fact that under Its present management principles of business economy and efficiency are being applied. For many years there has been a deficit In the operations of tbe postofflce department wblcb has been met by appropriation from tbe treasury The appropriation estimated for laat year from tbe treasury over and above tbe receipts of tbe depsrtment was 117,500,000. I am glad to record tbe fact that of that $17,500,000 estimated for $11,500,000 were saved and returned to the treasury. The personal efforts of tbe postmaster general secured the effective co-operation of the thousands of postmasters and other postal officers throughout the country In carrying out his plans of reorganization and retrenchment Tbe result la that tbe postmaster general baa been able to make his estimate of expenses for tbe present year so low as to keep within the amount the postal service Is expec ted to earn. It la gratifying to report that tbe reduction in the deficit has been accomplished without any curtailment of postal facilities. On tbe contrary, the service baa been greatly extended during tbe year In all Its branches. A principle which the postmaster general baa recommended and sought to have enforced In respect to all appointments has been that those sppolntees who have rendered good service should bejcappolnted. This has greatly strengthened the Interest of postmasters throughout the country In maintaining efficiency and economy la their offices, because tbey believed generally that this would secure for them a further tenure. Extension of the Classified Service.

.," Upon the recommendation of tbe postmaster general I have Included in tbe classified service all assistant postmasters, and I believe that this giving a secure tenure to those who are the most Important subordinates of post- ' masters will add much to tbe efficiency of their offices and an economical administration. A large number of tbe fourth clasa postmasters are now In tbe classified service. I think it would be wise to put la tbe classified service tbe first, second and third class postmasters. It Is more logical to do this than to classify the fourth class postmasters, for tbe reason that the fourth class postofflces re Invariably small and the postmasters are necessarily men who must combine some other business with tbe poetmastershlp. wbereaa tbe first, second and third class postmasters are paid a sufficient amount to Justify the requirement that tbey shall have no other business and that tbey aball devote their attention to their postofflce duties. To classify first, second and third class postmasters would require the passage of an act changing tbe method

of tbetr appointment so as to take awsy the necessity for the advice and consent of tbe senate. X am aware that tbia Is Inviting from the senate a concession la respect to Its quasi executive power that Is considerable, but I telleve It to be in tbe Interest of good administration and efficiency of service. ' To make this change would take the postmasters out of politics, would relieve congressmen who now are bur dened with tbe necessity of making recommendations for these places of a responsibility that must be . Irksome nnd can create nothing but trouble. and It would result In securing greater attention to business, greater fidelity nnd consequently greater economy and efficiency In tbe postofflces which tbey conduct. The Franking Privilege. , The unrestricted manner In wblcb the franking privilege Is now being used by the several federal services and by congress has laid It open to se rious abuses, a fact clearly established through investigation recently Instituted bv tbe department While It xfcaa been impossible without a better control of franking to, determine tne exacVexpense to the government of this practice, there can be no doubt that it annually reaches into tbe millions, x , It is relieved, that many abases of

the franking system could be prevented and consequently a marked economy effected by supplying through tbe agencies of tbe postal service special official envelopes and stamps for the free mall of the government, all such envelope and stamps to be Issued on requisition to tbe various branches of tbe federal service requiring them and such records to be kept of all official stamp supplies as will enable tbe postoffice department to maintain a proper postage account covering the entire volume of free government mall. As tbe first step In the direction of this reform special stamps and stamped envelopes have been provided for use Instead of franks in tbe free transmission of tbe official mail resulting from tbe business of tbe new postal savings system. By properly recording tbe Issuance of such stamps and envelopes accurate records can be kept of the cost to tbe government of handling the postal savings mail, which Is certain to become an Important Item of expense and one that should be separately determined. In keeping with this plsn It Is hoped that congress will authorize tbe substitution of special official stamps and stamped envelopes for the various forms of franks now used to carry free of postage the vast volume of departmental and congressional mail matter. During the past year methods of accounting similar to those employed. In tbe most progressive of our business establishments have been Introduced in tbe postal service, and nothing has so Impeded the department's plans In this regard as the impossibility of determining with any exactness bow far the various expenses of the postal service sre increased by the present unrestricted use of tbe franking privilege. It Is believed that the adoption of a more exact method of dealing with this problem as proposed wfll prove to be of tremendous advantage la the work of placing the postal service on a strictly businessliko basts. Sseond Class Mail Matter, In my last annual message I Invited tbe attention of congress to the inadequacy of the postal rate Imposed upon second clans mall matter la so far as that Includes magazines and showed by figures prepared by experts of tbe postofflce department that tbe government was rendering a service to the magazines costing many millions in excess of the compensation paid. An answer was attempted to this by tbe representatives of tbe magazines, and a reply was filed to this answer by tbe postofflce department Tbe utter inadequacy of the answer, considered In the light of the reply of the postofflce department, I think must appeal to any fair minded person. Whether tbe answer was all that could be said in behalf of the magazines is another question. I agree that the question is one of fact, but I Insist that if the fact la

as the experts of the postofflce department show, that we are furnishing to the owners of magazines a service worth millions more than tbey pay for it then Justice requires that tbe rate should be increased. The increase In the receipts of the department resulting from this change may be devoted to increasing tbe usefulness of the department In establishing a parcels post and in reducing the cost of first class postage to 1 cent It has been said by tbe postmaster general that a fair adjustment might be made under wblcb the advertising part of tbe magazine should be charged for at a different and higher rate from that of the reading matter. This would relieve many useful magazines that are not circulated at a profit and would not shut them out from the use of the malls by a prohibitory rate. Paresis Post With respect to the parcels post X respectfully recommend Its adoption on all rural delivery routes and that eleven pounds,' tbe international limit be made the limit of carriage In such post The same argument la made against the parcels post that was made against the postal savings bank that it is introducing tbe government into a business which ought to be conducted by private persons and is paternalIsm. Tbe postofflce department has a great plant and a great organization, reaching into the most remote hamlet of tbe United States, and with this machinery It Is able to do a great many things economically that if a new organization were necessary it would be impossible to do without extravagant expenditure. That is the reason why tbe postal savings bank can be carried on at a small additional cost and wby It is possible to incorporate at a very inconsiderable expense a parcels post In the rural delivery system. THE NAVY DEPARU'EIIT. Wants Naval Station at Guantanamo Honors For Peary. In the last annual report of the secretary of tbe navy and In my annual message attention waa called to the new detail of officers In the navy department by which officers of Has rank were assigned to duty as aids to the secretary in respect to naval operatins, personnel, inspection and material. This change was a substantial compliance with the recommendation of the commission on naval reorganization, beaded by Mr. Justice Moody, and submitted to President Roosevelt on Feb. 26, 1909. Through tbe advice of this committee of line officers the secretary is able to bring about a proper co-ordination of all tbe branches of the naval department with greater military efficiency. The secretary of the navy recommends that this new organization be recognized by legislation and thus made permanent I concur In the recommendation. The secretary, in view of tbe conclusions of a recent court of Inquiry on certain phases of marine corps administration, recommends that the major general commandant of tbe marine corps be appointed for a four year term and that officers of tbe adjutant nnd Inspector's department be detailed from tho line. He also asks for legislation to im prove the conditions now existing In the personnel of officers of the navy. particularly with regard to the age and experience of flag officers and cap

tains, and points out that it is essential to tbe highest efficiency of the navy that tbe age of our officers be reduced and that flag officers particularly should gam proper experience as flag officers In order to enable them to properly command fleet. I concur in the secretary's recommendations. Covering ef Naval Supply Fund Into Treasury. I commend to your attention tbe report of tbe secretary on tbe change In the system of cost accounting in navy yards and also to tbe history of the naval supply fund and tbe present conditions existing In regard to that matter. Under previous practice and what now seems to have been an erroneous construction of the law tbe supply fund of the navy was increased from $2,700,000 to something over $14,000,000, and a system of accounting was introduced which prevented the striking of a proper balance and a knowledge of tbe exact cost of maintaining the naval establishment Tbe system has now been abandoned and a naval supply account established by law July 1, 1910. The naval supply fund of $2,700,000 Is now on deposit In the treasury to the credit of the department The secretary recommends that the naval supply account be made permanent by law and that tbe $2,700,000 of tbe naval supply fund be covered into tbe treasury as unnecessary, and I ask for legislative authority to do this. This sum when covered Into tbe treasury will be really a reduction In recorded naval cost for this year. The estimates of tbe navy department are $5,000,000 less than tbe appropriations for the same purpose last year, and included in this is tbe building program of the same amount as that submitted for your consideration last year. It is merely carrying out tbe plan of building two battleships a year, with a few needed auxiliary vessels. I earnestly hope that this program will be adopted. Abolition of Navy Yards. Tbe secretary of tbe navy baa given personal examination to every navy yard and has studied the uses of tbe navy yards with reference to the necessities of our fleet With a fleet considerably less than half the size of that of the British navy, we have shipyards more than double tbe number, , and there are several of these shipyards, expensively equipped with modern machinery, which after investigation tbe secretary of the navy believes to be entirely useless for naval purposes. He asks authority to abandon certain of them and to move their machinery to other places where it can be made of use. In making these recommendations the secretary Is following directly along' progressive lines which have been adopted In our great commercial and manufacturing consolidations in this country that la, of dismantling unnecessary and Inadequate plants and discontinuing their existence where It has been demonstrated that It. Is unprofitable to continue their maintenance at an expense not commensurate to their product The secretary points out that the most important naval base In tbe West Indies is Guantanamo, In the southeastern part of Cuba. Its geographical situation Is admirably adapted to protect the commercial paths to tbe Panama canal, and be shows that by the expenditure of less than half a million dollars, with the machinery which be shall take from other navy yards, he can create a naval station at Guantanamo of sufficient size and equipment to serve the purpose of an emergency naval base. I earnestly Join in the recommendation that he be given the authority which he asks. I am quite aware that such action is likely to arouse local opposition, but I conceive it to be axiomatic that in legislating In the Interest of the navy and for tbe general protection of the country by the navy mere local pride or pecuniary interest in the establishment of a navy yard or station ought to play no part Tbe recommendation of the secretary is based upon the Judgment of Impartial naval officers entirely uninfluenced by any geographical or sectional considerations. I unite with the secretary in the recommendation that an appropriation be made to construct a suitable crypt at Annapolis for the custody of the remains of John Faul Jones. Peary. Tbe complete success of our country In arctic exploration should not remain unnoticed. For centuries there has been friendly rivalry In this field of effort between the foremost nations and between tbe bravest and most accomplished men. Expeditions to the unknown north have been encouraged by enlightened governments, and deserved honors have been granted to the daring men who have conducted them. The unparalleled achievement of Peary In reaching the north pole April 6, 1909, approved by critical examination of the most expert scientists, has added to the distinction of our navy, to which he belongs, and reflects credit upon his country. His unique success has received generous acknowledgment from scientific bodies snd institutions of learning In Europe and America. I recommend fitting recognition by congress of the great achievement of Robert Edwin Peary.

DEPARTMENT OF THE INTERIOR Appeals to Court In Land Cases. Conservation and Reclamation. The secretary of the Interior recommends a change of the law in respect to the procedure in adjudicating claims for lands by which appeals can be taken from the decisions of the department to the court of appeals of tbe District of Columbia for a Judicial consideration of the rights of the claimant. This change finds complete analogy in the present provision for spirals from the decisions or the commissioner of patents. The Judgments of the court in such cases would be of decisive value to land claimants generally and to the department of the interior in the administration of the law. would enable claimants to brio? Into court tbe final consideration of issues s to the title to government land and would, I think, obviate a good deal of the subsequent litigation that now arises in our western courts. The bill la pending. X believe. In the

bouse, having been favorably reported from tbe committee on public lands, and I recommend Its enactment One of tbe difficulties in the interior department and in the land office has been tbe delays attendant upon the consideration by the land office and tbe secretary of the Interior of claims for patents of public lands to individuals. I am glad to say that under the recent appropriations of the congress and the earnest efforts of the secretary and bis subordinates these arrears have been disposed of and tbe work of the department has been brought more nearly up to date in respect to tbe pending business than ever before In its history. Economies have been effected where possible without legislative assistance, and these are shown In tbe reduced estimates for the expenses of the department during tbe current fiscal year and during the year to come. Conservation. Tbe subject of tbe conservation of the public domain has commanded the attention of the people within the last two or three years. Agricultural Lands. There Is no need for radical reform in the methods of disposing of what are really agricultural lands. Tbe present laws have worked well. Tbe enlarged homestead law has encouraged the successful farming of lands In the semlarid regions. Reclamation. The total sum already accumulated In the fund provided by the act for the reclamation of arid lands is about $69,449,058.76, and of this all but $6,241,058.76 baa been allotted to tbe various projects, of which there are thirty. Congress at Its last session provided for tbe issuing of certificates of Indebtedness not exceeding $20,000,000, to be redeemed from the reclamation fund when the proceeds of lands sold and from the water rents should be sufficient Meantime, In accordance with the provisions of tbe law, I appointed a board of army engineers to examine the projects and to ascertain which are feasible and worthy of completion. That board has made a report upon the subject which I shall transmit in a separate message within a few days. Forest Lands. Nothing can be more important In tbe matter of conservation than tbe treatment of our forest lands. It was probably the ruthless destruction of forests In the older states that first called attention to the necessity for a bait In the waste of our resources. This was recognized by congress by an act authorizing tbe executive to reserve from entry and set aside public tlmberlands as national forests. Speaking generally, there has been reserved of the existing forests about 70 per cent of all the tlmberlands of tbe government Within these forests (Including 26,000,000 acres in two forests in Alaska) are 192,000,000 acres, of which 166,000,000 acres are in tbe United States proper and Include within their boundaries something like 22,000,000 acres that belong to the states cr to private Individuals. We have, then, excluding Alaska forests, a total of about 144,000,000 acres of forests belonging to tbe government which are being treated in accord with the principles of scientific forestry. The law now prohibits the reservation of any more forest lands Jn Oregon, Washington, Idaho, Montana. Colorado and Wyoming except by act of congress. I am informed by tbe department of agriculture that the government owns other tracts of tlmberland in these states which should be included In tbe forest reserves. I recommend to congress that the limitation herein imposed be repealed. In tbe present forest reserves there are lands which are not properly forest land and which ought to be subject to homestead entry. This baa caused some local irritation. We are carefully eliminating such lands from forest reserves or, where their elimination is not practicable, listing them for entry under the forest homestead act Congress ought to trust the executive to use the power of reservation only with respect to bind most valuable for forest purposes. During the present administration 6.250,000 acres of land, largely nontimbered, have been excluded from forest reserves, and 3,500,000 acres of land principally valuable for forest purposes have been included In forest reserves, making a reduction hi forest reserves of nontlmbered land amounttag to 2,750,000 acres. The bureau of forestry since Its creation has initiated reforestation on about 15,000 acres. A great deal of tbe forest land is available for grazing. During tbe past year the grazing licensees numbered 25,687, and tbey pastured upon tbe forest reserves 1,409,873 cattle, 85.552 horses and 7,558,650 sheep, for which tbe government received $986,909, a decrease from the preceding year of $45,276, due to the fact that no money was collected or received for grazing on the nontlmbered lands eliminated from the forest reserves. Another source of profit hi the forestry Is the receipts for timber sold. This year they amounted to $1,043,428, an increase of $307326 over the receipts of last year. This increase Is due to the improvement in transportation to market and to tbe greater facility with which tbe timber can be reached. About $25,000,000 worth of timber In these national forests was destroyed during the last summer by forest fires. Coal Lands. The next subject and one most important for your consideration, is the disposition of the coal lands in the United States and in Alaska. First as to those in the United States. At the beginning of this administration , there were classified coal binds amounting to 5,476.000 acres, and there were withdrawn from entry for purposes of classification 17,S67,000 acres. Since that time there have been withdrawn by my order from entry for classification 7S.977.743 acres, making a total withdrawal of 96,S44,743 acres. Meantime of the acres thus withdrawn 10,061389 have been classified and found not to contain coal and have been restored to agricultural entry and 4.726.091 acres have been classified as t-oal lands, while 791JOi39 acres remain withdrawn from entry ami await classification. In addition 337,000 acres have been classified as coal lands without prior withdrawal thus tnrieaaltig

the classfied coal lands to 10,429373 acres;- - Under the laws providing for the

disposition of coal lands in the United States-the minimum price at which lands are permitted to be sold la $10 an acre," but the secretary of the Interior has the power to fix a maximum price and to sell at that price. By the first regulations governing appraisal, ap proved April 8, 1907, the minimum waa $10, as provided by law, and the maxi mum was $100, and the highest price actually placed upon any land sold was $75. Under the new regulations adopt ed April 10, 1909, the maximum price was Increased to $300 except In regions where there are large mines, where no maximum limit is fixed and tbe price Is determined by tbe estimated tons of coal to the acre. The highest price fixed for any land under this regulation has been $606. The appraised value of the lands classified as coal lands and valued under the new and old regulations is shown to be aa follows: Three million seven hundred ninety-five thousand four hundred and forty-five acres, valued under the old regulation at $76,804337, an average of approximately $20.50 an acre, and 6,633,027 acres classified and valued under the new regulation at $430,050364, or a total of 10,429372 acres, valued at $506,854,701. For the year ended June 30, 1909, 213 coal entries were made, embracing an area of 31,045 acres, wblcb sold for $556,502.03. For the year ended June 30, 1910, there were 248 entries, embracing an area of 38325 acres, which sold for $772,325.41, and down to November, 1910, there were thirty-eight entries, with an area of 5,164 acres, which sold for $103,082.75, making tbe disposition of coal lands within tbe last two years of about 75,000 acres for $1,431,910. The present congress has separated the surface of coal binds, either classified or withdrawn for classification, from tbe coal beneath so as to permit at all times homestead entries upon tbe surface of lands useful for agri culture and to reserve tbe ownership. in tbe coal to tbe government The question which remains to be considered is whether the existing law for the sale of the coal In tbe ground should continue In force or be repealed and a new method of disposition adopted. - Under tbe present law tbe absolute title in tbe coal beneath tbe sur face passes to tbe grantee of tbe government The price fixed Is upon an estimated amount of the tons of coal per acre beneath the surface, and the prices are fixed so that tbe earnings will only be a reasonable profit upon tbe amount paid and tbe investment necessary. But, of course, this Is more or less guesswork, and the government parts with tbe ownership of the coal in tbe ground absolutely. Authorities of tbe geological survey estimate that in the United States today there is a supply of about 3,000 billions of tons of coal and that of this 1,000 billions are in tbe public domain. Of course tbe other 2,000 billions are within private ownership and under no more control as to tbe use or tbe prices at which tbe coal may be sold than any other private property. If tbe government leases tbe coal lands and acts as any landlord would and imposes conditions in Its leases like those which are now Imposed by the owners in fee of coal mines In tbe various coal regions of tbe east, then It would retain over the disposition of the coal deposits a choice as to tbe assignee -of the lease, a power of resuming possession at the end of tbe term of the lease or of readjusting terms at fixed periods of the lease, which might easily be iramed to enable it to exercise a limited but effective control in tbe disposition and sale of the coal to the public. It has been urged that tbe leasing system has never been adopted In this country and that its adoption would largely interfere with the Investment of capital and tbe proper development and opening up of tbe coal resources. I venture to differ from this view. My investigations show that many owners of mining property of this country do not mine it themselves and do not invest their money in the plants necessary for the mining, but tby lease their properties for a term of years varying from twenty to thirty and forty years under conditions requiring the erection of a proper plant and the investment of a certain amount of money in the development of the mines and fixing a rental and a royalty.' sometimes an absolute figure and sometimes one proportioned to the market value of the coal. Under this latter method the owner of the mine shares in the prosperity of his lessees when coal is high and tbe profits good and also shares to some extent In their disappointment when the price of coal falls. I have looked with some care into a report made at the Instance of President Roosevelt upon tbe disposition of coal lands in Australia, Tasmania and New Zealand. These are peculiarly mining countries, and their experience ought to be most valuable. In all these countries the method for tbe disposition and opening of coal mines originally, owned by the government is by granting leasehold and not by granting an absolute title. Tbe terms of tbe leases run all the way from twentyfive to fifty years, while tbe amount of land which may be leased to any individual there is from 320 acres to 2,000 acres. It appears that a full examination was made and tbe opinions of all the leading experts on tbe subject were solicited and given and that with one accord tbey approved in all respects the leasing system. Its success is abundantly shown. It is possible that at first considerable latitude will have

to be given to tbe executive In drafting these forms of lease, but as soon as experiment shall show which is tbe most workable and practical its use should be provided for specifically by statute. The question as to bow great an area ought to be included in a lease to one individual or corporation Is not Tree jrom difficulty, but in view of the fact that , the government retains control ra -owner I think there might be some liberality In the amount leased and that 2.500 acres would not be too great a maximum. The leases should only be granted after advertisement and public competition. By the opportunity to readjust tbe terms upon which the coal shall be held by the tenant either at the end of each lease or at periods during the

term the government may secure the benefit of sharing in the increased price of coal and the additional profit made by the tenant By imposing conditions in respect to the character of work to be done In the mines the government may control the character of the development of the mines and the treatment of employees with reference i to safety. By. denying the right to transfer the lease except by the written permission of the governmental au- ! thorities it may withhold the needed consent when it is proposed to transfer the leasehold to persons Interested in establishing a monopoly of coal production in any state or neighborhood. As one-third of all the coal supply is held by the government. It seems wise that it should retain such control over tbe mining and the sale as the relation of lessor to lessee furnishes. The secretary of the Interior thinks there are difficulties In the way of leasing public coal lands, which objections he has set forth in his report the force of which I freely concede. I entirely approved his stating at length In his report the objections in order that the whole subject may be presented to congress, but after a full consideration, for tbe reasons I hare given above, I favor a leasing system and recommend it OH and Gas Lands. In tbe last administration there were withdrawn from agricultural entry 2.S20.000 acres of supposed oil land In California; 1.451,520 acres In Loulslana, of which only 6,500 acres were known to be vacant unappropriated land; 74,489 acres in Oregon, making a total of 4346,369 acres. In September, 1909, I directed that all public oil lands, whether then withdrawn or not, should be withheld from disposition pending congressional action, for the reason that the existing placer mining law, although made applicable to deposits of this character. Is not suitable to such lands', and for tbe further reason that it seemed desirable to reserve certain fuel oil deposits for the use of the American navy. Accordingly the form of all existing withdrawals was changed, and new withdrawals aggregating 2,750,000 acres were made in Arizona, California, Colorado, New Mexico, Utah and Wyoming. Field examinations during the year showed that of the original

withdrawals 2,190,424 acres were not valuable for oil, and they were restored for agricultural entry. Meantime other withdrawals of public oil lands in these states were made, so that Nov. 15, 1910. the outstanding withdrawals then amounted to 4.654, 000 acres. The needed oil and gas law Is essentially a leasing law. In their natural occurrence oil and gas cannot be measured in terms of acres, like coal, and it follows that exclusive title to these products can normally be secured only after tbey reach tbe surface. Oil should be disposed of as a commodity in terms of barrels of transportable product rather than ; In acres of real estate. This Is. of course, the reason for the practically universal adoption of the leasing system wherever oil land is In private ownership. The government thus would not be entering on an experiment, but simply putting .Into effect a plan successfully operated In private contracts. Why should not the government as a landowner deal directly with the oil producer rather than through the Intervention of u middleman to whom the' government gives title to the land? The principal underlying feature of such legislation should be the exercise of beneficial control rather than the collection of revenue. As not only tbe largest owner of oil lands, but as a prospective large consumer of oil by reason of -the increasing use of fuel oil by the navy, the federal government Is directly concerned both In encouraging rational development and at the same time insuring the longest possible life to the oil supply. The royalty rates fixed by the government should neither exceed nor fall below the current rates. But much more important than revenue is the enforcement of regulations to conserve the public Interest so that the covenants of the lessees shall specifically safeguard oil fields against the penalties from careless drillings and of production in excess of transportation facilities or of market requirements. One of the difficulties presented, especially In the California fields. Is that the Southern Pacific railroad owns every other section of land In the oil fields, and in those fields the oil seems to be in a conimou reservoir or series of reservoirs communicating through the oil sands, so that the excessive draining of oil at one well or on the railroad territory generally would exhaust the oil In the government land. Hence it is important that If the government is to have its share of the oil it should begin the opening and development of wells on its own property. In view of the joint ownership which the government and the adjoining landowners like the Southern Pacific railroad have in the oil reservoirs below the surface it Is a most Interesting and Intricate question, difficult of solution, but one which ought to address itself at once to the state lawmakers, how far the state legislature might Impose appropriate restrictions to secure an equitable enjoyment of the common reservoir and to prevent waste and excessive drainage by the various owners having access to this reservoir. It has been suggested, and I believe the suggestion to be a sound one, that permits be issued to a prospector for oil giving him the right to prospect for two years over a certain tract of government land for the discovery of oil. the right to be evidenced by a license for which he pays a small sum. When the oil is discovered, then he acquires title to a certain tract much In the same way as be would acquire title under a mining law. Of course If the system of leasing is adopted then be would be given the benefit of a lease upon terms like that above suggested. What has been said in respect to oil applies also to government gas lands. Under the proposed oil legislation, especially where the government oil lands embrace an entire oil field, as in many cases, prospectors, operators, consumers and tbe public can be benefited by the adoption of the leasing system. The prospector can be protected la tbe very expensive work that necessarily antedates discovery, the operator can be protected against impairment of the productiveness of the wells which he has leased by reason of con

trol of drilling snd pumping of other wells too closely adjacent or by the prevention of Improper methods as employed by careless. Ignorant or irresponsible operators In the same field which result In the admission of water to the oil sands, while, of course, the

consumer will profit by whatever benefits the prospector or operator receives in reducing the first cost of the oil. Phosphate Land. Phosphorus Is one of the three essentials to plant growth, the other elements being nitrogen and potash. Of these three, phosphorus Is by all odds the scarcest element in nature. It Is easily extracted In useful form from the phosphate rock, and the United States contains the greatest known deposits of this rock in the world. They are found In Wyoming, Utah, Idaho and Florida, as well as In South Carolina, Georgia and Tennessee, The government phosphate lands are confined to Wyoming, Utah, Idaho and Florida. Prior to March 4, 1909, there were 4.446,298 acres withdrawn from agricultural entry on the ground that the land covered phosphate rock. Since that time 2369,776 acres of the land thus withdrawn were found not to contain phosphate in profitable quantities, while 1.678,000 acres wore classified properly as phosphate lands. During this administration there have been withdrawn nnd classified 437,673 acres, so that-today there are classified as phosphate rock land 2,514,195 acres. This rock is most important ia the composition of fertilizers to Improve the soil, and as the future ia certain to create an enormous demand throughout this country for fertlliza tion the value to the public of such deiHwlts as these can hardly be exaggerated. Certainly with respect to these deposits a careful policy of conservation should be followed. Half of the phosphate of the rock that Is mined in private fields In tbe United States Is now exported. As our farming methods grow better the demand for the phosphate will become greater, and It must be arranged so that the supply shall equal the needs of the country. It Is uncertain vrhether the placer or lode ' law applies 'to the government phosphate rock. There Is, therefore, necessity for some definite and well considered legislation on this subject and ia aid of such legislation all of the government lands known to contain valuable phosphate rock are now withdrawn fron entry. A law that would provide a leasing system for the phosphate deposits, together with a provision for tbe separation of the surface and mineral rights as is already provided for in the case of coal, would seem to meet tbe need of pro moting the development of these deposits and their utilization In tbe agricultural lands of the west If the exportation of phosphate rock and the saving of It for our own lands this purpose could be accomplished by conditions In tbe lease granted by tbe government to Its lessees. Of course under tbe constitution the) government could not tax and Could not prohibit tbe exportation of phosphate, b it as proprietor and owner of tbe lands In which tbe phosphate Is deposited it could Impose conditions upon the kind of sales, whether foreign or domestic, which the lessees might make of tbe phosphate mined. The tonuag-?; represented ; by tbe nhosnhate lands In government owner ship is very great but tbe lesson bas been learned In the case of such lands that have passed lntoprivate ownership in South Carolina, Florida and Tennessee that tbe phosphate deposits there are In no sense Inexhaustible. Moreover, it is also well understood that In the process of mining phosphate as it has been pursued much of the lower grade of phosphate rock, which will eventually all be needed,) has been wasted beyond recovery. Such wasteful methods can easily be prevented, so far as tbe government' land Is concerned, by conditions Inserted in tbe leases. Water Power Sites. Prior to March 4, 1909, there bad 1 been, on the recommendation of. the reclamation service, withdrawn from agricultural entry because they were regarded as useful for power sites which ought not to be disposed of as agricultural lands, tracts amounting to about 4,000,000 acres. The withdrawals were" hastily made and included a great deal of land that was not useful for power sites. They were Intended to include the power sites on twenty -nine rivers In nine states. Since that time 3,475,442 acres have) been restored for settlement of tbe original 4,000,000 because they do not contain power sites, and meantime new withdrawals have leen made wbkh, with other restorations based upon field examination, result In withdrawals at present effective of 1,213.356 acres on vacant public land and 202,197 acres on entered public land, or a total of 1,420,553 acres. These withdrawals made from time to time cover all tbe power sites Included In the first withdrawals and many more on 151 rivers and In twelve states. The disposition of these power sites involves one of the most difficult questions presented In carrying out practical conservation. The forest service, under s power found in the statute, bas leased a number of these power sites hi forest reserves by revocable leases, but no such power exists with respect to power sites that are not located within forest reserves, and the revocable system of leasing is, of course, not a satisfactory one for the purpose of inviting the capital needed to put In proper plants for the transmutation of power. The statute of 1891 with its amendments permits the secretary of the Interior to grant perpetual easements or rights of way from water sources over public lands for tbe primary purpose of irrigation and such electrical current as may be-Incidentally developed, but no grant can be made under this statute to concerns whose primary purpose Is generating and handling electricity. The statute of 1901 authorizes the secretary of the interior to issue revocable permits over the public lands to electrical power companies, but. this statute. 1 -woefully inadequate because it does not authorize the collection of a charge or fix a term of years. ; Capital is slow to invest in an enterprise founded on a permit revocable at will. . .The subject is one that calls for new

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