In so important a matter as the Government becoming the possible owner of railroad property which it perforce must conduct and operate, I feel constrained to lay before Congress these facts for its consideration and action before the consummation of the sale. It is clear to my mind that the Government should not permit the property to be sold at a price which will yield less than one-half of the principal of its debt and less than one-fifth of its entire debt, principal and interest. But whether the Government, rather than accept less than its claim, should become a bidder and thereby the owner of the property, I submit to the Congress for action.

The Library building provided for by the act of Congress approved April 15, 1886, has been completed and opened to the public. It should be a matter of congratulation that through the foresight and munificence of Congress the nation possesses this noble treasure-house of knowledge. It is earnestly to be hoped that having done so much toward the cause of education, Congress will continue to develop the Library in every phase of research to the end that it may be not only one of the most magnificent but among the richest and most useful libraries in the world.

The important branch of our Government known as the Civil Service, the practical improvement of which has long been a subject of earnest discussion, has of late years received increased legislative and Executive approval. During the past few months the service has been placed upon a still firmer basis of business methods and personal merit. While the right of our veteran soldiers to reinstatement in deserving cases has been asserted, dismissals for merely political reasons have been carefully guarded against, the examinations for admittance to the service enlarged and at the same time rendered less technical and more practical; and a distinct advance has been made by giving a hearing before dismissal upon all cases where incompetency is charged or demand made for the removal of officials in any of the Departments. This order has been made to give to the accused his right to be heard but without in any way impairing the power of removal, which should always be exercised in cases of inefficiency and incompetency, and which is one of the vital safeguards of the civil service reform system, preventing stagnation and deadwood and keeping every employee keenly alive to the fact that the security of his tenure depends not on favor but on his own tested and carefully watched record of service.

Much of course still remains to be accomplished before the system can be made reasonably perfect for our needs. There are places now in the classified service which ought to be exempted and others not classified may properly be included. I shall not hesitate to exempt cases which I think have been improperly included in the classified service or include those which in my judgment will best promote the public service. The system has the approval of the people and it will be my endeavor to uphold and extend it.

I am forced by the length of this Message to omit many important references to affairs of the Government with which Congress will have to deal at the present session. They are fully discussed in the departmental reports, to all of which I invite your earnest attention.

The estimates of the expenses of the Government by the several Departments will, I am sure, have your careful scrutiny. While the Congress may not find it an easy task to reduce the expenses of the Government, it should not encourage their increase. These expenses will in my judgment admit of a decrease in many branches of the Government without injury to the public service. It is a commanding duty to keep the appropriations within the receipts of the Government, and thus avoid a deficit.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, December 6, 1897.

To the Congress of the United States:

The act of Congress, approved July 19, 1897, entitled "An act making appropriations to supply deficiencies in the appropriations for the fiscal year ending June 30, 1897, and for prior years, for other purposes," provided for the acceptance by the Government of the United States of the invitation extended by the Republic of France to participate in an international exposition to be held at Paris, from April 15 to November 15, 1900, and authorized the President to appoint a special commissioner with a view to securing all attainable information necessary to a full and complete understanding by Congress in regard to the participation of this Government in that exposition.

Maj. Moses P. Handy of Chicago, was appointed such special commissioner, and I now enclose his report, giving the details of his mission. It is a comprehensive and clear presentation of the situation. He recommends that an appropriation of $919,600 be granted, so that a creditable exhibit on behalf of the United States may be made. The details of this report will show how this appropriation may be profitably expended.

Besides securing a much larger amount of space than had been reserved, Major Handy obtained the gratifying assurance that the United States will be placed on a footing with the most favored nations, and "that in the installation of every important department the United States will have a location commensurate with the dignity and importance of the country and adjoining in every case countries of the first rank."

In view of the magnitude and importance of the approaching exposition, and of our standing among the nations which will be there represented, and in view also of our increased population and acknowledged progress in arts, science, and manufactures, I earnestly commend the report of Major Handy to your consideration, and trust that a liberal appropriation may be made.

Moreover, the magnificent exhibit of the French Republic at Chicago in 1893, on which a million dollars were expended, should be a strong incentive to reciprocal liberality on the part of the Government of the United States, and suggests to our citizens the necessity as well as the propriety of installing at the Paris Exposition an exhibit on a par with that of the Government and people of France at Chicago, and in keeping with the scope and extent of the preparations which are being made by nearly all the important nations of the earth for their proposed exhibits in that exposition.

I suggest that the subject be given timely and favorable consideration.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, January 14, 1898.

To the Congress of the United States:

I transmit herewith a report from the Secretary of State in regard to the award of the commissioners appointed pursuant to the stipulations of the convention of February 8, 1896, between the United States and Great Britain, providing for the settlement of the claims presented by the latter against the former in virtue of the convention of February 29, 1892.

The report of the Secretary of State presents a clear epitome of the award and renders unnecessary any extended observations on my part further than to say that I cordially coincide with his recommendation and that our treaty obligations demand prompt and favorable action by Congress, which I urgently hope may be taken, to the end that these long-pending questions may be finally and satisfactorily terminated.

The total amount necessary to satisfy the award of the commissioners is $473,151.26, which I recommend be appropriated.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, January 18, 1898.

To the Congress of the United States:

I transmit herewith a report from the Secretary of State, with accompanying papers, touching the lynching in 1895 at Yreka, Cal., of Luis Moreno, a Mexican citizen, and the demand of the Mexican Government for an indemnity for his relatives on account thereof.

Following the course adopted in the case of the lynching of three Italian subjects at Hahnville, La., on August 8, 1896, I recommend the appropriation by Congress, out of humane consideration and without reference to the question of liability of the Government of the United States in the premises, of the sum of $2,000 to be paid by the Secretary of State to the Government of Mexico, to be by that Government distributed among the heirs of the above-named Luis Moreno.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, January 26, 1898.

To the Congress:

I transmit herewith a report from the Secretary of State and accompanying papers presenting the claim of Capt. B. Tellefsen, of the Norwegian steamer Albert, against the Government of the United States, for $998.96, being the expenses incurred by him in consequence of a violation of Article XIII of the treaty of commerce and navigation of 1827 between the United States and Sweden and Norway.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, March 22, 1898.

To the Senate:

In connection with Senate Document No. 39, Fifty-fifth Congress, second session, and in further response to the resolution of the Senate of July 12, 1897, I transmit herewith a report from the Secretary of State, with additional papers, relating to postal telegraphs, telephones, and postal savings banks in Austria.

WILLIAM McKINLEY.



EXECUTIVE MANSION, March 31, 1898.

To the Congress:

I transmit herewith, for the information of Congress, a communication from the Secretary of Agriculture covering a detailed report showing the present condition of the beet-sugar industry in this country and the results of experiments made by the Department of Agriculture in the production of sugar from beets in the United States during the past year.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, April 4, 1898.

To the Senate of the United States:

In response to the resolution of the Senate of January 17, 1898, I transmit a report from the Secretary of State, accompanied by copies of correspondence exchanged between Henry Woodruff, trustee and of counsel for the holders of a majority of the first-mortgage bonds of "The Railway of the East," of Venezuela, et al., and the Department of State, and by a list of claims of citizens of the United States presented after August 1, 1898, and, so far as appears, not settled by Venezuela, nor disposed of by the commission of 1889-90.

WILLIAM McKINLEY.



EXECUTIVE MANSION, April 7, 1898.

To the Senate:

In response to the resolution of the Senate of February 26, 1898, requesting the President "if not incompatible with the public interest, to transmit to the Senate the proceedings of the international commission authorized in the concurrent resolution of Congress of April 29, 1890, and a subsequent international convention between the United States and Mexico of May 6, 1896, and also the correspondence relating thereto with Mexico by the Department of the Interior, Department of War, and Department of Justice, as well as the Department of State, relating to the equitable distribution of the waters of the Rio Grande River, including the draft of an incomplete treaty between said Governments, negotiated between the late Secretary of State, Mr. Olney, on the part of the United States, and Mr. Romero, on the part of Mexico, and all the correspondence between said officials relating thereto," I transmit herewith reports from the Secretary of State, the Secretary of War, the Secretary of the Interior, and the Attorney-General, with accompanying papers.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, April 15, 1898.

To the Senate:

In connection with Senate Document No. 39, Fifty-fifth Congress, second session, and in further response to the resolution of the Senate of July 12, 1897, I transmit herewith a report from the Secretary of State, with accompanying papers relating to postal telegraphs, telephones, and postal savings banks in the colony of Victoria.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, April 27, 1898.

To the Congress:

I transmit herewith a report from the Secretary of State and accompanying papers relating to the claim against the United States of the Russian subject, Gustav Isak Dahlberg, master and principal owner of the Russian bark Hans, based on his wrongful and illegal arrest and imprisonment by officers of the United States district court for the southern district of Mississippi, and in view of the opinion expressed by the Department of Justice that the said arrest and detention of the complainant were wrongful and without authority of law, I recommend the appropriation by Congress of the sum of $5,000 to reimburse the master and owners of the vessel for all losses and damages incurred by reason of his said wrongful and illegal arrest and detention.

WILLIAM McKINLEY.



EXECUTIVE MANSION, May 16, 1898.

To the House of Representatives:

I transmit herewith a communication from the Secretary of State, accompanying the annual reports of the consuls of the United States upon foreign industries and commerce. In view of the value of these reports to the business interests of the country, I indorse the recommendation of the Secretary of State that Congress authorize the printing of a special edition of 10,000 copies of the general summary entitled "Review of the World's Commerce," and 5,000 copies of Commercial Relations (including this summary), to enable the Department of State to meet the demands for such information.

WILLIAM McKINLEY.



EXECUTIVE MANSION, May 16, 1898.

To the House of Representatives:

I return herewith to the House of Representatives, in which it originated, House bill No. 2219, entitled "An act for the relief of the administrators of Isaac P. Tice, deceased, and others," without my approval.

The object of this bill is to confer upon the Court of Claims jurisdiction to retry and determine a case brought by the representatives of Isaac P. Tice against the United States in the Court of Claims in the year 1873 to recover from the Government the sum of $25,000, the alleged value of certain meters invented by Isaac P. Tice for the purpose of measuring the quality and strength of distilled spirits.

It was claimed that this amount, together with the sum of $733.33 for storage of said meters, was due to the claimant under a contract made between Tice and the Commissioner of Internal Revenue in pursuance of section 15 of the act of March 2, 1867 (14 Stats., 481). From the report of the case in 13 Court of Claims Reports, 112, it appears that the matter was fully and deliberately tried and argued both on behalf of the claimant and of the United States, and that at December term, 1877, the Court of Claims rendered a decision adverse to the claimant, expressly stating that the claimants had failed to establish their claim both in law and on the facts. Not satisfied with this conclusion of the Court of Claims, the claimants took an appeal to the Supreme Court of the United States, where the case was again argued and was decided, October term, 1878, the judgment of the Court of Claims being declared to be in accordance with the law and therefore affirmed. In these two decisions the law and the facts pertaining to the claim were fully set forth and discussed.

The bill further confers upon the Court of Claims jurisdiction to try and determine certain alleged claims of said Tice and others for money collected on account of the Tice meters, but not paid over to him or them under the regulations of the Treasury.

The amount of the latter claim, according to the report of the committee of the House of Representatives to which this bill was referred, is $140,000. It does not appear from the report of the committee, nor from any documents to which I have access, who are the other persons by whom this latter sum is claimed. The claim for $140,000 must have accrued prior to July, 1871, and therefore at this time is of at least twenty-seven years' standing.

It will thus be perceived that the object of the bill is to remove from the pathway of the claimants two legal bars to the prosecution of their claim in the courts—one, the bar of the statute of limitations, which requires all claimants against the Government to present their claims and bring actions thereon within six years from the time the cause of action accrues; and the other, that bar of estoppel which arises by reason of a former adverse judgment, rendered in a court of competent jurisdiction. This is not a general modification of the law in these respects, but a special application of it to these particular claimants.

If the principle on which the statute of limitations is founded is wise and beneficent, then the effect of it ought not to be impaired by special legislative exemptions in favor of particular persons or cases except upon very clear and just grounds, where no lack of diligence in the prosecution of the claim is apparent. I cannot find in the papers submitted to me any sufficient grounds to justify a special exception from the ordinary rule in favor of these claimants. As to the claim for $140,000, no reason is stated why it was not included in the original suit nor why action upon it was not brought against the Government within the six years allowed by the statute for that purpose. To permit such an action to be brought now is simply, without any reason of a special nature, to grant a privilege to these claimants which is denied to all other citizens of the United States, in accordance with the provisions of the general statute of limitations. The principle underlying statutes of limitations and the reasons for the maintenance of such a rule of litigation are much more cogent when applied to claims against the Government than when applied to claims against individuals.

These claims do not differ in their character from ordinary business transactions such as transpire every day between private persons or business corporations. The Government can only defend itself against claims of this nature through its public officers and with the use of such public records as the Departments may furnish. Great difficulties are experienced by it in contesting fraudulent and unjust claims, and it is only fair in the interest of the public that a rigorous adherence to some rule of limitation should be maintained.

The provision of the bill which practically directs a new trial of the claim for $25,000, decided adversely to the claimants more than twenty years ago, is still more objectionable. These parties had their day in court. They produced their witnesses and were heard both originally and upon appeal, and upon the case they were then able to make the court decided they had no claim against the Government. It is now suggested that other witnesses have been discovered who can supply the lack of proof which was produced on the former trial. Such a ground for a new trial would never be considered in any court of law in the land in a case between private parties where such a length of time had intervened since the former trial. No explanation of a satisfactory nature is furnished for the failure of the claimants to produce these witnesses upon the original trial.

The bill further provides that upon a retrial of the original claim, or upon the trial of the new claim, the claimants shall be at liberty to offer in evidence the depositions of witnesses now on the files of any of the committees of Congress in relation to the aforesaid matters, which may be introduced as evidence in case of the death or disability of the deponents.

This provision will enable the claimants to present ex-parte affidavits, prepared by the claimants or their attorneys, without opportunity being afforded to the Government to cross-examine, provided the claimants can show that the deposing witnesses are either dead or under disability, by which, no doubt, is intended any such disability by reason of absence, illness, and the like, as may render them legally incapable of being produced in person to testify upon the retrial. Such a provision as this is most dangerous to the interests of the Government.

I fail to see any reason in the facts connected with these claims for granting to these parties relief of this extraordinary nature.

The Treasury of the United States ought to be very carefully guarded against attacks of those who come forward with stale claims, and especially from the attacks of those who have already been fully heard according to the methods prescribed by the statutes.

To approve this bill would be to furnish a very dangerous precedent which would open the door to demands upon Congress in other cases which have been fully heard and determined.

For these reasons I am constrained to withhold my approval from this bill.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, June 14, 1898.

To the Congress of the United States:

I transmit herewith (having reference to Senate Document No. 4, Fifty-fifth Congress, second session) a report made by Thomas W. Cridler, Third Assistant Secretary of State, who, upon the death of Maj. Moses P. Handy, I designated to continue the work as special commissioner, under the act of Congress approved July 19, 1897, in relation to the acceptance by the Government of the United States of the invitation of France to participate in the International Exposition to be held at Paris from April 15 to November 5, 1900.

I cordially renew my recommendation that a liberal appropriation be immediately granted.

WILLIAM McKINLEY.



EXECUTIVE MANSION, June 23, 1898.

To the Senate of the United States:

I transmit herewith a report from the Secretary of the Interior relative to Senate resolution of June 10, 1898, requesting the President "to make such arrangements as may be necessary to secure at the Trans-Mississippi and International Exposition to be held in the city of Omaha, Neb., the attendance of representatives of the Iroquois tribes and Delawares of Canada and of the Abenakis of St. Francis and Becaucourt, and such other Indian nations as have emigrated from the territory now of the United States to Canada."

To carry out this resolution, if it shall be found agreeable to the Government of Canada, it will be necessary for this Government to send an agent to visit the tribes and secure their assent, organize the representative delegations, escort them to the exposition, take charge of and care for them while there and until they are returned to their respective tribes.

The resolution seems to presuppose that there are funds which may be lawfully used to defray the expenses which must necessarily be incurred in the premises. By reference to the Secretary's report, it will be seen that there are no moneys lawfully available for that purpose.

It is not to be presumed that the Senate, under such circumstances, would desire the Executive to take the action indicated in the resolution, and I am therefore constrained to await the requisite appropriation by Congress for the payment of the expenses that must be necessarily incurred in the accomplishment of the proposed objects.

WILLIAM McKINLEY.



EXECUTIVE MANSION, December 6, 1898.

To the Congress of the United States:

I transmit herewith, for the information of the Congress, the report of the Hawaiian Commission appointed in pursuance of the "Joint resolution to provide for annexing the Hawaiian Islands to the United States," approved July 7, 1898, together with a copy of the civil and penal laws of Hawaii.

WILLIAM McKINLEY.



EXECUTIVE MANSION, January 5, 1899.

To the Senate and House of Representatives:

I transmit herewith a report of the Secretary of Agriculture on the work and expenditures of the agricultural experiment stations established under the act of Congress of March 2, 1887, for the fiscal year ending June 30, 1898, in accordance with the act making appropriations for the Department of Agriculture for the said fiscal year.

WILLIAM McKINLEY.



EXECUTIVE MANSION, January 5, 1899.

To the Senate:

In response to the resolution of the Senate of December 21, 1898, requesting the President, "If it be not inconsistent with the public service, to inform the Senate whether authentic information is in possession of the Government as to the alleged dissolution of the Government of the United States of Central America." I transmit herewith a report from the Secretary of State with accompanying papers.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, January 6, 1899.

To the Senate of the United States:

I transmit herewith in answer to the resolution of the Senate of December 15, 1898, a communication from the Secretary of State covering a preliminary report from the Nicaraguan Canal Commission, dated December 26, 1898, relative to its progress in investigating the question of the proper route, the feasibility, and cost of construction of the Nicaragua Canal.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, January 6, 1899.

To the Senate and House of Representatives:

I transmit herewith a communication from the Secretary of State, inclosing the annual report of the Director of the Bureau of the American Republics, with accompanying documents. In view of the improved condition and increasing usefulness of the Bureau, to which I have already called attention in my annual message, and the welcome assurances of greater activity on the part of the other American republics in support of its purposes, I cordially indorse the recommendations of the Secretary of State. It will doubtless be as gratifying to Congress as it is to me to be informed that the Argentine Republic has decided to renew its relations with the Bureau, and that there are grounds for hoping that the International American Union, created by the impressive conference of the representatives of our sister republics and those of the United States in Washington in 1889-90, will soon be perfected by the adhesion of the Republic of Chile to the compact for the support of the Bureau as the organ of the union. The interest of the United States in giving the fullest possible effect to the laudable desire of the international conference to promote not only trade intercourse but a closer fellowship among the various republics of this hemisphere is so evident that I am satisfied the progress made by the bureau, as a practical agency for attaining these objects, will receive the commendation and support of Congress.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, January 11, 1899.

To the Senate of the United States:

In response to the resolution of the Senate of June 6, 1898, I transmit a report from the Secretary of State, inclosing copies of all papers on file in the Department of State relating to the case of Hugo O. Loewi, including those printed in Document No. 186, Senate, Fifty-fifth Congress, second session.

WILLIAM McKINLEY.



EXECUTIVE MANSION, January 17, 1899.

To the Senate and House of Representatives:

It will be remembered that in the month of October, 1897, reports were received here of the probable loss of the whaling fleet in the Arctic regions, and of the likelihood that nearly 300 men, composing the officers and crews of the fleet, would perish from hunger unless succor could reach them early in the spring.

The revenue cutter Bear was known to be en route from the Arctic Ocean to Puget Sound, Washington. Her arrival was anxiously awaited, as no other suitable Government vessel could be made available for Arctic work. That ship arrived at Seattle, Wash., on the 6th of November, after a six-months' cruise in the Arctic, and I at once ordered an expedition prepared for the relief of the imperiled whalemen.

The preparation of the Bear was commenced on the 11th of November, under the direction of the Secretary of the Treasury. Her officers and men of the Revenue-Cutter Service all volunteered for the perilous work, and the ship was completely fitted out, and, under the command of Capt. Francis Tuttle, of the Revenue-Cutter Service, sailed on her errand of mercy November 29, 1897, within nineteen days from the inception of the movement.

The plan of the expedition was briefly as follows:

The ship was to be fully provided with rations for the ice-imperiled whalemen, which were to be conveyed to them as soon as the ice conditions in Bering Strait would permit the passage through. An overland expedition was to be landed from the Bear as soon as practicable, at some point on the coast of Alaska, in Bering Sea, to be determined upon by Captain Tuttle. The problem of getting food to the imperiled people at the earliest time possible was the all-important consideration, for it was fully understood that the Bear could not, under the most favorable conditions of ice navigation in that region, reach their neighborhood before the following July or August. The utter lack of transportation of any kind in this far-off land suggested the idea, which was adopted as the only possible plan, of driving reindeer overland, to be slaughtered on arrival, for food to last until the arrival of the Bear with supplies the following summer. The reindeer were to be collected by the overland expedition from several points in Alaska, notably Cape Prince of Wales and Point Rodney, and, with such aid as could be procured from natives and others, driven to Point Barrow.

The overland expedition was formed, and consisted of First Lieut. David H. Jarvis, Revenue-Cutter Service, commanding; Second Lieut. Ellsworth P. Bertholf, Revenue-Cutter Service, and Dr. Samuel J. Call, surgeon of the Bear, all volunteers. This overland expedition was landed from the Bear at Cape Vancouver, in Bering Sea, Alaska, on the 16th of December, 1897, and commenced its toilsome and dreary journey through an arctic night to Point Barrow, Captain Tuttle returning with his command to winter at Dutch Harbor, Alaska, and from there to take advantage of the first opportunity in the early summer of 1898 to get north.

The overland expedition worked its way to the reindeer stations named, and succeeded in getting together about 450 deer. They were materially aided by Mr. W.T. Lopp, agent of the American Missionary Society at Cape Prince of Wales, and Artisarlook, a native of that region, both of whom, at great personal sacrifice, left their families and accompanied the reindeer herd to Point Barrow.

The overland expedition, after a difficult and hazardous journey of nearly 2,000 miles through the storms and bitter cold of an arctic winter, reached Point Barrow with the herd on the 29th of March, 1898, three months and twelve days from their landing from the Bear at Cape Vancouver, Alaskan coast of Bering Sea. They arrived none too soon. From the lack of an authoritative head, supplemented by bad sanitary conditions and want of proper food, the men from the whale ships quartered there were found upon the verge of great suffering, while sickness had broken out among them. Lieutenant Jarvis, under the instructions given him by the Secretary of the Treasury, at once assumed charge, in the name of the Government, of the camp and locality of Point Barrow, and he and Dr. Call devoted themselves with intelligent energy to correcting the wretched conditions found to exist. Order was at once inaugurated. Fresh meat from the reindeer herd was supplied, the sanitary conditions were improved, and the general health and comfort of the whalemen received immediate attention. Lieutenant Jarvis and Dr. Call remained at Point Barrow in charge until the arrival of the Bear, July 28, 1898, a period of four months. As soon as the Bear arrived Captain Tuttle began the distribution of ample supplies to the whalemen on shipboard and on shore. Having supplied all demands generously, succored the needy to the number of 275 between Point Barrow and Kotzebue Sound, taking on board the Bear 146 whalemen, 91 of whom were brought to the Pacific coast (the remainder having of their own volition left the ship en route), the vessel arrived back at Seattle on the 13th of September, after an absence in the bleak and dreary regions of Bering Sea and the Arctic Ocean of about seventeen months.

The hardships and perils encountered by the members of the overland expedition in their great journey through an almost uninhabited region, a barren waste of ice and snow, facing death itself every day for nearly four months, over a route never before traveled by white men, with no refuge but at the end of the journey, carrying relief and cheer to 275 distressed citizens of our country, all make another glorious page in the history of American seamen. They reflect by their heroic and gallant struggles the highest credit upon themselves and the Government which they faithfully served. I commend this heroic crew to the grateful consideration of Congress and the American people.

The year just closed has been fruitful of noble achievements in the field of war; and while I have commended to your consideration the names of heroes who have shed luster upon the American name in valorous contests and battles by land and sea, it is no less my pleasure to invite your attention to a victory of peace the results of which cannot well be magnified, and the dauntless courage of the men engaged stamps them as true heroes, whose services cannot pass unrecognized.

I have therefore the honor to submit the following recommendations and to ask your favorable action thereon:

1. That the thanks of Congress be voted to Capt. Francis Tuttle, Revenue-Cutter Service, and the officers and enlisted men composing his command for their able and gallant services.

2. That the thanks of Congress be extended to the members of the overland expedition; First Lieut. David H. Jarvis, Revenue-Cutter Service, commanding the overland expedition; to Second Lieut. Ellsworth P. Bertholf, Revenue-Cutter Service, and to Dr. Samuel J. Call, Surgeon.

3. That gold medals of honor of appropriate design, to be approved by the Secretary of the Treasury, be awarded to Lieutenants Jarvis and Bertholf and Dr. Call, commemorative of their heroic struggles in aid of suffering fellow-men.

4. That the sum of $2,500 be appropriated to be disbursed by the Secretary of the Treasury in bestowing rewards upon W.T. Lopp, Artisarlook, and native herders, who rendered material aid to the relief expedition.

WILLIAM McKINLEY.



EXECUTIVE MANSION, January 19, 1899.

To the Senate and House of Representatives:

I transmit herewith a second report on the investigations of the agricultural capabilities of Alaska for the year 1898, in accordance with the acts of Congress making appropriations for the Department of Agriculture for the fiscal years ending June 30, 1898, and June 30, 1899.

WILLIAM McKINLEY.



EXECUTIVE MANSION, January 19, 1899.

To the Senate of the United States:

I herewith return without approval Senate bill No. 708, entitled "An act for the relief of Albert E. Redstone."

My objections to the bill are:

First. It assumes that the beneficiary, Albert E. Redstone, sustained a loss by the incorporation of his preemption claim within the limits of the Sierra Forest Reserve. This reserve was established by executive proclamation of February 14, 1893 (27 Stats., 1059), issued under section 24 of the act of March 8, 1891 (26 Stats., 1103), and contains the following saving clause for the protection of existing claims under the public land laws:

* * * Excepting from the force and effect of this proclamation all lands which may have been, prior to the date hereof, embraced in any legal entry or covered by any lawful filing duly of record in the proper United States Land Office, or upon which any valid settlement has been made pursuant to law, and the statutory period within which to make entry or filing of record has not expired; * * *

Mr. Redstone did not sustain any loss by the creation of this reserve, because his rights, if he had any at that time, were fully recognized and protected by this provision in the proclamation.

Second. Mr. Redstone's preemption declaratory statement was filed April 6, 1889, and alleged settlement upon the same day. The land covered thereby had not been proclaimed for sale, and under sections 2265 and 2267 of the Revised Statutes, Mr. Redstone had thirty-three months from the date of his settlement within which to make proof and payment for the land, but in fact he never attempted to make such proof or payment. His preemption claim had therefore expired by operation of law long before the creation of this reserve. After his filing had thus expired Mr. Redstone was cited by the Land Department to show cause why his claim should not be declared at an end, and his filing formally canceled upon the public records, but he made no response or defense, and the filing was accordingly canceled.

Third. The Commissioner of the General Land Office reports that an investigation, made under the supervision of his office, shows that Mr. Redstone had actually abandoned the land covered by his preemption claim before the reserve was established.

Fourth. The Commissioner of the General Land Office reports that an examination, made under the supervision of his office, shows that the improvements placed upon this land during the life of this preemption claim and thereafter abandoned were less than $200 in value, while the amount appropriated in this bill is $1,800.

WILLIAM McKINLEY.



EXECUTIVE MANSION, January 27, 1899.

To the Senate and House of Representatives:

In accordance with a provision in the act making appropriations for the Department of Agriculture for the fiscal year ending June 30, 1899, I transmit herewith a report of the Secretary of Agriculture "upon the forestry investigations and work of the Department of Agriculture."

WILLIAM McKINLEY.



EXECUTIVE MANSION, February 9, 1899.

To the Senate of the United States:

I transmit herewith, in response to a resolution of the Senate of the 2nd instant, requesting information "whether any franchises or concessions of any character are being or have been granted by any municipality in Cuba or Puerto Rico since the military occupation thereof by the United States," etc., a report from the Secretary of War and accompanying papers.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, February 11, 1899.

To the House of Representatives:

I transmit herewith the response of the Secretary of State to the resolution of the House of Representatives of February 4, 1899, calling for information in his possession concerning certain alleged outrages committed upon the person of Bishop Earl Cranston and other American citizens in the city of Peking, China.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, February 18, 1899.

To the Senate:

I transmit herewith the response of the Secretary of Agriculture to the resolution of the Senate of February 8, 1899, calling for information in his possession regarding the practical usefulness of reservoirs to agriculture in the irrigated region of the United States, especially as affecting the distribution of water to crops, the area and value of reclaimed land, and the stability and unprofitableness of farming where irrigation is practised.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, February 21, 1899.

To the Senate and House of Representatives:

I transmit herewith a communication from the Secretary of State, accompanying the commercial relations of the United States for the year 1898, being the annual reports of the consular officers upon the industries and commerce of foreign countries. In view of the value of these reports to the manufacturing and exporting interests of the country, I indorse the recommendation of the Secretary of State that Congress authorize the printing of the usual editions of 10,000 copies of the general summary, entitled "Review of the World's Commerce" and of 5,000 copies of "Commercial Relations" (including this summary), to enable the Department of State to meet the demand for such information.

WILLIAM McKINLEY.



EXECUTIVE MANSION, March 1, 1899.

To the Senate and House of Representatives:

I transmit herewith, for the information of Congress, a communication from the Secretary of Agriculture, covering a report on the progress of the beet-sugar industry in the United States during the year 1898. It embraces the results of numerous chemical analyses and the observations made by a special agent in various parts of the United States.

WILLIAM McKINLEY.



EXECUTIVE MANSION, Washington, March 3, 1899.

To the Senate:

In response to the resolution of the Senate of February 28 last directed to the Secretary of State, I transmit a report from that officer submitting a list of claims against Spain, growing out of the insurrection in Cuba, filed in the Department of State, not embraced in Senate Document No. 79, Fifty-fourth Congress, second session.

WILLIAM McKINLEY.



EXECUTIVE MANSION, December 5, 1899.

To the Senate and House of Representatives:

At the threshold of your deliberations you are called to mourn with your countrymen the death of Vice-President Hobart, who passed from this life on the morning of November 21 last. His great soul now rests in eternal peace. His private life was pure and elevated, while his public career was ever distinguished by large capacity, stainless integrity, and exalted motives. He has been removed from the high office which he honored and dignified, but his lofty character, his devotion to duty, his honesty of purpose, and noble virtues remain with us as a priceless legacy and example.

The Fifty-sixth Congress convenes in its first regular session with the country in a condition of unusual prosperity, of universal good will among the people at home, and in relations of peace and friendship with every government of the world. Our foreign commerce has shown great increase in volume and value. The combined imports and exports for the year are the largest ever shown by a single year in all our history. Our exports for 1899 alone exceeded by more than a billion dollars our imports and exports combined in 1870. The imports per capita are 20 per cent less than in 1870, while the exports per capita are 58 per cent more than in 1870, showing the enlarged capacity of the United States to satisfy the wants of its own increasing population, as well as to contribute to those of the peoples of other nations.

Exports of agricultural products were $784,776,142. Of manufactured products we exported in value $339,592,146, being larger than any previous year. It is a noteworthy fact that the only years in all our history when the products of our manufactories sold abroad exceeded those bought abroad were 1898 and 1899.

Government receipts from all sources for the fiscal year ended June 30, 1899, including $11,798,314.14, part payment of the Central Pacific Railroad indebtedness, aggregated $610,982,004.35. Customs receipts were $206,128,481.75, and those from internal revenue $273,437,161.51.

For the fiscal year the expenditures were $700,093,564.02, leaving a deficit of $89,111,559.67.

The Secretary of the Treasury estimates that the receipts for the current fiscal year will aggregate $640,958,112, and upon the basis of present appropriations the expenditures will aggregate $600,958,112, leaving a surplus of $40,000,000.

For the fiscal year ended June 30, 1899, the internal-revenue receipts were increased about $100,000,000.

The present gratifying strength of the Treasury is shown by the fact that on December 1, 1899, the available cash balance was $278,004,837.72, of which $239,744,905.36 was in gold coin and bullion. The conditions of confidence which prevail throughout the country have brought gold into more general use and customs receipts are now almost entirely paid in that coin.

The strong position of the Treasury with respect to cash on hand and the favorable showing made by the revenues have made it possible for the Secretary of the Treasury to take action under the provisions of section 3694, Revised Statutes, relating to the sinking fund. Receipts exceeded expenditures for the first five months of the current fiscal year by $13,413,389.91, and, as mentioned above, the Secretary of the Treasury estimates that there will be a surplus of approximately $40,000,000 at the end of the year. Under such conditions it was deemed advisable and proper to resume compliance with the provisions of the sinking-fund law, which for eight years has not been done because of deficiencies in the revenues. The Treasury Department therefore offered to purchase during November $25,000,000 of the 5 per cent loan of 1904, or the 4 per cent funded loan of 1907, at the current market price. The amount offered and purchased during November was $18,408,600. The premium paid by the Government on such purchases was $2,263,521 and the net saving in interest was about $2,885,000. The success of this operation was sufficient to induce the Government to continue the offer to purchase bonds to and including the 23d day of December, instant, unless the remainder of the $25,000,000 called for should be presented in the meantime for redemption.

Increased activity in industry, with its welcome attendant—a larger employment for labor at higher wages—gives to the body of the people a larger power to absorb the circulating medium. It is further true that year by year, with larger areas of land under cultivation, the increasing volume of agricultural products, cotton, corn, and wheat, calls for a larger volume of money supply. This is especially noticeable at the crop-harvesting and crop-moving period.

In its earlier history the National Banking Act seemed to prove a reasonable avenue through which needful additions to the circulation could from time to time be made. Changing conditions have apparently rendered it now inoperative to that end. The high margin in bond securities required, resulting from large premiums which Government bonds command in the market, or the tax on note issues, or both operating together, appear to be the influences which impair its public utility.

The attention of Congress is respectfully invited to this important matter, with the view of ascertaining whether or not such reasonable modifications can be made in the National Banking Act as will render its service in the particulars here referred to more responsive to the people's needs. I again urge that national banks be authorized to organize with a capital of $25,000.

I urgently recommend that to support the existing gold standard, and to maintain "the parity in value of the coins of the two metals (gold and silver) and the equal power of every dollar at all times in the market and in the payment of debts," the Secretary of the Treasury be given additional power and charged with the duty to sell United States bonds and to employ such other effective means as may be necessary to these ends. The authority should include the power to sell bonds on long and short time, as conditions may require, and should provide for a rate of interest lower than that fixed by the act of January 14, 1875. While there is now no commercial fright which withdraws gold from the Government, but, on the contrary, such widespread confidence that gold seeks the Treasury demanding paper money in exchange, yet the very situation points to the present as the most fitting time to make adequate provision to insure the continuance of the gold standard and of public confidence in the ability and purpose of the Government to meet all its obligations in the money which the civilized world recognizes as the best. The financial transactions of the Government are conducted upon a gold basis. We receive gold when we sell United States bonds and use gold for their payment. We are maintaining the parity of all the money issued or coined by authority of the Government. We are doing these things with the means at hand. Happily at the present time we are not compelled to resort to loans to supply gold. It has been done in the past, however, and may have to be done in the future. It behooves us, therefore, to provide at once the best means to meet the emergency when it arises, and the best means are those which are the most certain and economical. Those now authorized have the virtue neither of directness nor economy. We have already eliminated one of the causes of our financial plight and embarrassment during the years 1893, 1894, 1895, and 1896. Our receipts now equal our expenditures; deficient revenues no longer create alarm. Let us remove the only remaining cause by conferring the full and necessary power on the Secretary of the Treasury and impose upon him the duty to uphold the present gold standard and preserve the coins of the two metals on a parity with each other, which is the repeatedly declared policy of the United States.

In this connection I repeat my former recommendations that a portion of the gold holdings shall be placed in a trust fund from which greenbacks shall be redeemed upon presentation, but when once redeemed shall not thereafter be paid out except for gold.

The value of an American merchant marine to the extension of our commercial trade and the strengthening of our power upon the sea invites the immediate action of the Congress. Our national development will be one-sided and unsatisfactory so long as the remarkable growth of our inland industries remains unaccompanied by progress on the seas. There is no lack of constitutional authority for legislation which shall give to the country maritime strength commensurate with its industrial achievements and with its rank among the nations of the earth.

The past year has recorded exceptional activity in our shipyards, and the promises of continual prosperity in shipbuilding are abundant. Advanced legislation for the protection of our seamen has been enacted. Our coast trade, under regulations wisely framed at the beginning of the Government and since, shows results for the past fiscal year unequaled in our records or those of any other power. We shall fail to realize our opportunities, however, if we complacently regard only matters at home and blind ourselves to the necessity of securing our share in the valuable carrying trade of the world.

Last year American vessels transported a smaller share of our exports and imports than during any former year in all our history, and the measure of our dependence upon foreign shipping was painfully manifested to our people. Without any choice of our own, but from necessity, the Departments of the Government charged with military and naval operations in the East and West Indies had to obtain from foreign flags merchant vessels essential for those operations.

The other great nations have not hesitated to adopt the required means to develop their shipping as a factor in national defense and as one of the surest and speediest means of obtaining for their producers a share in foreign markets. Like vigilance and effort on our part cannot fail to improve our situation, which is regarded with humiliation at home and with surprise abroad. Even the seeming sacrifices, which at the beginning may be involved, will be offset later by more than equivalent gains.

The expense is as nothing compared to the advantage to be achieved. The reestablishment of our merchant marine involves in a large measure our continued industrial progress and the extension of our commercial triumphs. I am satisfied the judgment of the country favors the policy of aid to our merchant marine, which will broaden our commerce and markets and upbuild our sea-carrying capacity for the products of agriculture and manufacture; which, with the increase of our Navy, mean more work and wages to our countrymen, as well as a safeguard to American interests in every part of the world.

Combinations of capital organized into trusts to control the conditions of trade among our citizens, to stifle competition, limit production, and determine the prices of products used and consumed by the people, are justly provoking public discussion, and should early claim the attention of the Congress.

The Industrial Commission, created by the act of the Congress of June 18, 1898, has been engaged in extended hearings upon the disputed questions involved in the subject of combinations in restraint of trade and competition. They have not yet completed their investigation of this subject, and the conclusions and recommendations at which they may arrive are undetermined.

The subject is one giving rise to many divergent views as to the nature and variety or cause and extent of the injuries to the public which may result from large combinations concentrating more or less numerous enterprises and establishments, which previously to the formation of the combination were carried on separately.

It is universally conceded that combinations which engross or control the market of any particular kind of merchandise or commodity necessary to the general community, by suppressing natural and ordinary competition, whereby prices are unduly enhanced to the general consumer, are obnoxious not only to the common law but also to the public welfare. There must be a remedy for the evils involved in such organizations. If the present law can be extended more certainly to control or check these monopolies or trusts, it should be done without delay. Whatever power the Congress possesses over this most important subject should be promptly ascertained and asserted.

President Harrison in his annual message of December 3, 1889, says:

Earnest attention should be given by Congress to a consideration of the question how far the restraint of those combinations of capital commonly called "trusts" is matter of Federal jurisdiction. When organized, as they often are, to crush out all healthy competition and to monopolize the production or sale of an article of commerce and general necessity they are dangerous conspiracies against the public good, and should be made the subject of prohibitory and even penal legislation.

An act to protect trade and commerce against unlawful restraints and monopolies was passed by Congress on the 2d of July, 1890. The provisions of this statute are comprehensive and stringent. It declares every contract or combination, in the form of a trust or otherwise, or conspiracy in the restraint of trade or commerce among the several States or with foreign nations, to be unlawful. It denominates as a criminal every person who makes any such contract or engages in any such combination or conspiracy, and provides a punishment by fine or imprisonment. It invests the several circuit courts of the United States with jurisdiction to prevent and restrain violations of the act, and makes it the duty of the several United States district attorneys, under the direction of the Attorney-General, to institute proceedings in equity to prevent and restrain such violations. It further confers upon any person who shall be injured in his business or property by any other person or corporation by reason of anything forbidden or declared to be unlawful by the act, the power to sue therefor in any circuit court of the United States without respect to the amount in controversy, and to recover threefold the damages by him sustained and the costs of the suit, including reasonable attorney fees. It will be perceived that the act is aimed at every kind of combination in the nature of a trust or monopoly in restraint of interstate or international commerce.

The prosecution by the United States of offenses under the act of 1890 has been frequently resorted to in the Federal courts, and notable efforts in the restraint of interstate commerce, such as the Trans-Missouri Freight Association and the Joint Traffic Association, have been successfully opposed and suppressed.

President Cleveland in his annual message of December 7, 1896—more than six years subsequent to the enactment of this law—after stating the evils of these trust combinations, says:

Though Congress has attempted to deal with this matter by legislation, the laws passed for that purpose thus far have proved ineffective, not because of any lack of disposition or attempt to enforce them, but simply because the laws themselves as interpreted by the courts do not reach the difficulty. If the insufficiencies of existing laws can be remedied by further legislation, it should be done. The fact must be recognized, however, that all Federal legislation on this subject may fall short of its purpose because of inherent obstacles, and also because of the complex character of our governmental system, which, while making the Federal authority supreme within its sphere, has carefully limited that sphere by metes and bounds which cannot be transgressed. The decision of our highest court on this precise question renders it quite doubtful whether the evils of trusts and monopolies can be adequately treated through Federal action, unless they seek directly and purposely to include in their objects transportation or intercourse between States or between the United States and foreign countries.

It does not follow, however, that this is the limit of the remedy that may be applied. Even though it may be found that Federal authority is not broad enough to fully reach the case, there can be no doubt of the power of the several States to act effectively in the premises, and there should be no reason to doubt their willingness to judiciously exercise such power.

The State legislation to which President Cleveland looked for relief from the evils of trusts has failed to accomplish fully that object. This is probably due to a great extent to the fact that different States take different views as to the proper way to discriminate between evil and injurious combinations and those associations which are beneficial and necessary to the business prosperity of the country. The great diversity of treatment in different States arising from this cause and the intimate relations of all parts of the country to each other without regarding State lines in the conduct of business have made the enforcement of State laws difficult.

It is apparent that uniformity of legislation upon this subject in the several States is much to be desired. It is to be hoped that such uniformity founded in a wise and just discrimination between what is injurious and what is useful and necessary in business operations may be obtained and that means may be found for the Congress within the limitations of its constitutional power so to supplement an effective code of State legislation as to make a complete system of laws throughout the United States adequate to compel a general observance of the salutary rules to which I have referred.

The whole question is so important and far-reaching that I am sure no part of it will be lightly considered, but every phase of it will have the studied deliberation of the Congress, resulting in wise and judicious action.

A review of our relations with foreign States is presented with such recommendations as are deemed appropriate.

The long-pending boundary dispute between the Argentine Republic and Chile was settled in March last by the award of an arbitral commission, on which the United States minister at Buenos Ayres served as umpire.

Progress has been made toward the conclusion of a convention of extradition with the Argentine Republic. Having been advised and consented to by the United States Senate and ratified by Argentina, it only awaits the adjustment of some slight changes in the text before exchange.

In my last annual message I adverted to the claim of the Austro-Hungarian Government for indemnity for the killing of certain Austrian and Hungarian subjects by the authorities of the State of Pennsylvania, at Lattimer, while suppressing an unlawful tumult of miners, September 10, 1897. In view of the verdict of acquittal rendered by the court before which the sheriff and his deputies were tried for murder, and following the established doctrine that the Government may not be held accountable for injuries suffered by individuals at the hands of the public authorities while acting in the line of duty in suppressing disturbance of the public peace, this Government, after due consideration of the claim advanced by the Austro-Hungarian Government, was constrained to decline liability to indemnify the sufferers.

It is gratifying to be able to announce that the Belgian Government has mitigated the restrictions on the importation of cattle from the United States, to which I referred in my last annual message.

Having been invited by Belgium to participate in a congress, held at Brussels, to revise the provisions of the general act of July 2, 1890, for the repression of the African slave trade, to which the United States was a signatory party, this Government preferred not to be represented by a plenipotentiary, but reserved the right of accession to the result. Notable changes were made, those especially concerning this country being in the line of the increased restriction of the deleterious trade in spirituous liquors with the native tribes, which this Government has from the outset urgently advocated. The amended general act will be laid before the Senate, with a view to its advice and consent.

Early in the year the peace of Bolivia was disturbed by a successful insurrection. The United States minister remained at his post, attending to the American interests in that quarter, and using besides his good offices for the protection of the interests of British subjects in the absence of their national representative. On the establishment of the new Government, our minister was directed to enter into relations therewith.

General Pando was elected President of Bolivia on October 23.

Our representative has been instructed to use all permissible friendly endeavors to induce the Government of Bolivia to amend its marriage laws so as to give legal status to the non-Catholic and civil marriages of aliens within its jurisdiction, and strong hopes are entertained that the Bolivian law in this regard will be brought, as was that of Peru some years ago, into harmony with the general practice of modern States.

A convention of extradition with Brazil, signed May 14, 1897, has been ratified by the Brazilian Legislature.

During the past summer two national ships of the United States have visited Brazilian ports on a friendly mission and been cordially received. The voyage of the Wilmington up the Amazon River gave rise to a passing misunderstanding, owing to confusion in obtaining permission to visit the interior and make surveys in the general interest of navigation, but the incident found a ready adjustment in harmony with the close relations of amity which this Government has always sedulously sought to cultivate with the commonwealths of the Western Continent.

The claim growing out of the seizure of the American-owned newspaper "The Panama Star and Herald" by the authorities of Colombia has been settled, after a controversy of several years, by an agreement assessing at $30,000 the indemnity to be paid by the Colombian Government, in three installments of $10,000 each.

The good will of Colombia toward our country has been testified anew by the cordial extension of facilities to the Nicaraguan Canal Commission in their approaching investigation of the Panama Canal and other projected routes across the Isthmus of Darien.

Toward the end of October an insurrectionary disturbance developed in the Colombian Republic. This movement has thus far not attained any decisive result and is still in progress.

Discussion of the questions raised by the action of Denmark in imposing restrictions on the importation of American meats has continued without substantial result in our favor.

The neighboring island Republic of Santo Domingo has lately been the scene of revolution, following a long period of tranquillity. It began with the killing of President Heureaux in July last, and culminated in the relinquishment by the succeeding Vice-President of the reins of government to the insurgents. The first act of the provisional government was the calling of a presidential and constituent election. Juan Isidro Jimenez, having been elected President, was inaugurated on the 14th of November. Relations have been entered into with the newly established Government.

The experimental association of Nicaragua, Honduras, and Salvador, under the title of the Greater Republic of Central America, when apparently on the threshold of a complete federal organization by the adoption of a constitution and the formation of a national legislature, was disrupted in the last days of November, 1898, by the withdrawal of Salvador. Thereupon Nicaragua and Honduras abandoned the joint compact, each resuming its former independent sovereignty. This was followed by the reception of Minister Merry by the Republics of Nicaragua and Salvador, while Minister Hunter in turn presented his credentials to the Government of Honduras, thus reverting to the old distribution of the diplomatic agencies of the United States in Central America for which our existing statutes provide. A Nicaraguan envoy has been accredited to the United States.

An insurrectionary movement, under General Reyes, broke out at Bluefields in February last, and for a time exercised actual control in the Mosquito Territory. The Detroit was promptly sent thither for the protection of American interests. After a few weeks the Reyes government renounced the conflict, giving place to the restored supremacy of Nicaragua. During the interregnum certain public dues accruing under Nicaraguan law were collected from American merchants by the authorities for the time being in effective administrative control. Upon the titular government regaining power, a second payment of these dues was demanded. Controversy arose touching the validity of the original payment of the debt to the de facto regent of the territory. An arrangement was effected in April last by the United States minister and the foreign secretary of Nicaragua whereby the amounts of the duplicate payments were deposited with the British consul pending an adjustment of the matter by direct agreement between the Governments of the United States and Nicaragua. The controversy is still unsettled.

The contract of the Maritime Canal Company of Nicaragua was declared forfeited by the Nicaraguan Government on the 10th of October, on the ground of nonfulfillment within the ten years' term stipulated in the contract. The Maritime Canal Company has lodged a protest against this action, alleging rights in the premises which appear worthy of consideration. This Government expects that Nicaragua will afford the protestants a full and fair hearing upon the merits of the case.

The Nicaragua Canal Commission, which had been engaged upon the work of examination and survey for a ship-canal route across Nicaragua, having completed its labors and made its report, was dissolved on May 31, and on June 10 a new commission, known as the Isthmian Canal Commission, was organized under the terms of the act approved March 3, 1899, for the purpose of examining the American Isthmus with a view to determining the most practicable and feasible route for a ship canal across that Isthmus, with its probable cost, and other essential details.

This Commission, under the presidency of Rear-Admiral John G. Walker, U.S.N. (retired), entered promptly upon the work intrusted to it, and is now carrying on examinations in Nicaragua along the route of the Panama Canal, and in Darien from the Atlantic, in the neighborhood of the Atrato River, to the Bay of Panama, on the Pacific side. Good progress has been made, but under the law a comprehensive and complete investigation is called for, which will require much labor and considerable time for its accomplishment. The work will be prosecuted as expeditiously as possible and a report made at the earliest practicable date.

The great importance of this work cannot be too often or too strongly pressed upon the attention of the Congress. In my message of a year ago I expressed my views of the necessity of a canal which would link the two great oceans, to which I again invite your consideration. The reasons then presented for early action are even stronger now.

A pleasing incident in the relations of this Government with that of Chile occurred in the generous assistance given to the war ship Newark when in distress in Chilean waters. Not alone in this way has the friendly disposition of Chile found expression. That country has acceded to the convention for the establishment of the Bureau of the American Republics, in which organization every independent State of the continent now shares.

The exchange of ratifications of a convention for the revival of the United States and Chilean Claims Commission and for the adjudication of claims heretofore presented but not determined during the life of the previous Commission has been delayed by reason of the necessity for fresh action by the Chilean Senate upon the amendments attached to the ratification of the treaty by the United States Senate. This formality is soon to be accomplished.

In view of disturbances in the populous provinces of northern China, where are many of our citizens, and of the imminence of disorder near the capital and toward the seaboard, a guard of marines was landed from the Boston and stationed during last winter in the legation compound at Peking. With the restoration of order this protection was withdrawn.

The interests of our citizens in that vast Empire have not been neglected during the past year. Adequate protection has been secured for our missionaries and some injuries to their property have been redressed.

American capital has sought and found various opportunities of competing to carry out the internal improvements which the Imperial Government is wisely encouraging, and to develop the natural resources of the Empire. Our trade with China has continued to grow, and our commercial rights under existing treaties have been everywhere maintained during the past year, as they will be in the future.

The extension of the area open to international foreign settlement at Shanghai and the opening of the ports of Nanking, Tsing-tao (Kiao chao), and Ta-lien-wan to foreign trade and settlement will doubtless afford American enterprise additional facilities and new fields, of which it will not be slow to take advantage.

In my message to Congress of December 5, 1898, I urged that the recommendation which had been made to the Speaker of the House of Representatives by the Secretary of the Treasury on the 14th of June, 1898, for an appropriation for a commission to study the commercial and industrial conditions in the Chinese Empire and report as to the opportunities for, and obstacles to, the enlargement of markets in China for the raw products and manufactures of the United States, should receive at your hands the consideration which its importance and timeliness merited, but the Congress failed to take action.

I now renew this recommendation, as the importance of the subject has steadily grown since it was first submitted to you, and no time should be lost in studying for ourselves the resources of this great field for American trade and enterprise.

The death of President Faure in February last called forth those sincere expressions of sympathy which befit the relations of two Republics as closely allied by unbroken historic ties as are the United States and France.

Preparations for the representation of the industries, arts, and products of the United States at the World's Exposition to be held in Paris next year continue on an elaborate and comprehensive scale, thanks to the generous appropriation provided by Congress and to the friendly interest the French Government has shown in furthering a typical exhibit of American progress.

There has been allotted to the United States a considerable addition of space, which, while placing our country in the first rank among exhibitors, does not suffice to meet the increasingly urgent demands of our manufacturers. The efforts of the Commissioner-General are ably directed toward a strictly representative display of all that most characteristically marks American achievement in the inventive arts, and most adequately shows the excellence of our natural productions.

In this age of keen rivalry among nations for mastery in commerce, the doctrine of evolution and the rule of the survival of the fittest must be as inexorable in their operation as they are positive in the results they bring about. The place won in the struggle by an industrial people can only be held by unrelaxed endeavor and constant advance in achievement. The present extraordinary impetus in every line of American exportation and the astounding increase in the volume and value of our share in the world's markets may not be attributed to accidental conditions.

The reasons are not far to seek. They lie deep in our national character and find expression year by year in every branch of handicraft, in every new device whereby the materials we so abundantly produce are subdued to the artisan's will and made to yield the largest, most practical, and most beneficial return. The American exhibit at Paris should, and I am confident will, be an open volume, whose lessons of skillfully directed endeavor, unfaltering energy, and consummate performance may be read by all on every page, thus spreading abroad a clearer knowledge of the worth of our productions and the justice of our claim to an important place in the marts of the world. To accomplish this by judicious selection, by recognition of paramount merit in whatever walk of trade or manufacture it may appear, and by orderly classification and attractive installation is the task of our Commission.

The United States Government building is approaching completion, and no effort will be spared to make it worthy, in beauty of architectural plan and in completeness of display, to represent our nation. It has been suggested that a permanent building of similar or appropriate design be erected on a convenient site, already given by the municipality, near the exposition grounds, to serve in commemoration of the part taken by this country in this great enterprise, as an American National Institute, for our countrymen resorting to Paris for study.

I am informed by our Commissioner-General that we shall have in the American sections at Paris over 7,000 exhibitors, from every State in our country, a number ten times as great as those which were represented at Vienna in 1873, six times as many as those in Paris in 1878, and four times as many as those who exhibited in Paris in 1889. This statement does not include the exhibits from either Cuba, Puerto Rico, or Hawaii, for which arrangements have been made.

A number of important international congresses on special topics affecting public interests are proposed to be held in Paris next summer in connection with the exposition. Effort will be made to have the several technical branches of our administration efficiently represented at those conferences, each in its special line, and to procure the largest possible concourse of State representatives, particularly at the Congresses of Public Charity and Medicine.

Our relations with Germany continue to be most cordial. The increasing intimacy of direct association has been marked during the year by the granting permission in April for the landing on our shores of a cable from Borkum Eniden, on the North Sea, by way of the Azores, and also by the conclusion on September 2 of a Parcels Post Convention with the German Empire. In all that promises closer relations of intercourse and commerce and a better understanding between two races having so many traits in common, Germany can be assured of the most cordial cooperation of this Government and people. We may be rivals in many material paths, but our rivalry should be generous and open, ever aiming toward the attainment of larger results and the mutually beneficial advancement of each in the line of its especial adaptabilities.

The several governments of the Empire seem reluctant to admit the natural excellence of our food productions and to accept the evidence we constantly tender of the care with which their purity is guarded by rigid inspection from the farm, through the slaughterhouse and the packing establishments, to the port of shipment. Our system of control over exported food staples invites examination from any quarter and challenges respect by its efficient thoroughness.

It is to be hoped that in time the two Governments will act in common accord toward the realization of their common purpose to safeguard the public health and to insure the purity and wholesomeness of all food products imported by either country from the other. Were the Congress to authorize an invitation to Germany, in connection with the pending reciprocity negotiations, for the constitution of a joint commission of scientific experts and practical men of affairs to conduct a searching investigation of food production and exportation in both countries and report to their respective legislatures for the adoption of such remedial measures as they might recommend for either, the way might be opened for the desirable result indicated.

Efforts to obtain for American life insurance companies a full hearing as to their business operations in Prussia have, after several years of patient representation, happily succeeded, and one of the most important American companies has been granted a concession to continue business in that Kingdom.

I am also glad to announce that the German insurance companies have been readmitted by the superintendent of insurance to do business in the State of New York.

Subsequent to the exchange of our peace treaty with Spain, Germany acquired the Caroline Islands by purchase, paying therefor $5,000,000. Assurances have been received from the German Government that the rights of American missionaries and traders there will be considerately observed.

In my last annual message I referred to the pending negotiations with Great Britain in respect to the Dominion of Canada. By means of an executive agreement, a Joint High Commission had been created for the purpose of adjusting all unsettled questions between the United States and Canada, embracing twelve subjects, among which were the questions of the fur seals, the fisheries of the coast and contiguous inland waters, the Alaskan boundary, the transit of merchandise in bond, the alien labor laws, mining rights, reciprocity in trade, revision of the agreement respecting naval vessels in the Great Lakes, a more complete marking of parts of the boundary, provision for the conveyance of criminals, and for wrecking and salvage.

Much progress had been made by the Commission toward the adjustment of many of these questions, when it became apparent that an irreconcilable difference of views was entertained respecting the delimitation of the Alaskan boundary. In the failure of an agreement as to the meaning of Articles III and IV of the treaty of 1825 between Russia and Great Britain, which defined the boundary between Alaska and Canada, the American Commissioners proposed that the subject of the boundary be laid aside, and that the remaining questions of difference be proceeded with, some of which were so far advanced as to assure the probability of a settlement. This being declined by the British Commissioners, an adjournment was taken until the boundary should be adjusted by the two Governments. The subject has been receiving the careful attention which its importance demands, with the result that a modus vivendi for provisional demarcations in the region about the head of Lynn Canal has been agreed upon; and it is hoped that the negotiations now in progress between the two Governments will end in an agreement for the establishment and delimitation of a permanent boundary.

Apart from these questions growing out of our relationship with our northern neighbor, the most friendly disposition and ready agreement have marked the discussion of numerous matters arising in the vast and intimate intercourse of the United States with Great Britain.

This Government has maintained an attitude of neutrality in the unfortunate contest between Great Britain and the Boer States of Africa. We have remained faithful to the precept of avoiding entangling alliances as to affairs not of our direct concern. Had circumstances suggested that the parties to the quarrel would have welcomed any kindly expression of the hope of the American people that war might be averted, good offices would have been gladly tendered. The United States representative at Pretoria was early instructed to see that all neutral American interests be respected by the combatants. This has been an easy task in view of the positive declarations of both British and Boer authorities that the personal and property rights of our citizens should be observed.

Upon the withdrawal of the British agent from Pretoria the United States consul was authorized, upon the request of the British Government and with the assent of the South African and Orange Free State Governments, to exercise the customary good offices of a neutral for the care of British interests. In the discharge of this function, I am happy to say that abundant opportunity has been afforded to show the impartiality of this Government toward both the combatants.

For the fourth time in the present decade, question has arisen with the Government of Italy in regard to the lynching of Italian subjects. The latest of these deplorable events occurred at Tallulah, Louisiana, whereby five unfortunates of Italian origin were taken from jail and hanged.

The authorities of the State and a representative of the Italian Embassy having separately investigated the occurrence, with discrepant results, particularly as to the alleged citizenship of the victims, and it not appearing that the State had been able to discover and punish the violators of the law, an independent investigation has been set on foot, through the agency of the Department of State, and is still in progress. The result will enable the Executive to treat the question with the Government of Italy in a spirit of fairness and justice. A satisfactory solution will doubtless be reached.

The recurrence of these distressing manifestations of blind mob fury directed at dependents or natives of a foreign country suggests that the contingency has arisen for action by Congress in the direction of conferring upon the Federal courts jurisdiction in this class of international cases where the ultimate responsibility of the Federal Government may be involved. The suggestion is not new. In his annual message of December 9, 1891, my predecessor, President Harrison, said:

It would, I believe, be entirely competent for Congress to make offenses against the treaty rights of foreigners domiciled in the United States cognizable in the Federal courts. This has not, however, been done, and the Federal officers and courts have no power in such cases to intervene either for the protection of a foreign citizen or for the punishment of his slayers. It seems to me to follow, in this state of the law, that the officers of the State charged with police and judicial powers in such cases must, in the consideration of international questions growing out of such incidents, be regarded in such sense as Federal agents as to make this Government answerable for their acts in cases where it would be answerable if the United States had used its constitutional power to define and punish crimes against treaty rights.

A bill to provide for the punishment of violations of treaty rights of aliens was introduced in the Senate March 1, 1892, and reported favorably March 30. Having doubtless in view the language of that part of Article III of the treaty of February 26, 1871, between the United States and Italy, which stipulates that "The citizens of each of the high contracting parties shall receive, in the States and Territories of the other, most constant protection and security for their persons and property, and shall enjoy in this respect the same rights and privileges as are or shall be granted to the natives, on their submitting themselves to the conditions imposed upon the natives," the bill so introduced and reported provided that any act committed in any State or Territory of the United States in violation of the rights of a citizen or subject of a foreign country secured to such citizen or subject by treaty between the United States and such foreign country and constituting a crime under the laws of the State or Territory shall constitute a like crime against the United States and be cognizable in the Federal courts. No action was taken by Congress in the matter.

I earnestly recommend that the subject be taken up anew and acted upon during the present session. The necessity for some such provision abundantly appears. Precedent for constituting a Federal jurisdiction in criminal cases where aliens are sufferers is rationally deducible from the existing statute, which gives to the district and circuit courts of the United States jurisdiction of civil suits brought by aliens where the amount involved exceeds a certain sum. If such jealous solicitude be shown for alien rights in cases of merely civil and pecuniary import, how much greater should be the public duty to take cognizance of matters affecting the lives and the rights of aliens under the settled principles of international law no less than under treaty stipulation, in cases of such transcendent wrongdoing as mob murder, especially when experience has shown that local justice is too often helpless to punish the offenders.

After many years of endeavor on the part of this Government to that end the Italian Government has consented to enter into negotiations for a naturalization convention, having for one of its objects the regulation of the status of Italians (except those of an age for active military service) who, having been naturalized in the United States, may revisit Italy. It is hoped that with the mutually conciliatory spirit displayed a successful conclusion will be reached.

The treaty of commerce and navigation between the United States and Japan on November 22, 1894, took effect in accordance with the terms of its XIXth Article on the 17th of July last, simultaneously with the enforcement of like treaties with the other powers, except France, whose convention did not go into operation until August 4, the United States being, however, granted up to that date all the privileges and rights accorded to French citizens under the old French treaty. By this notable conventional reform Japan's position as a fully independent sovereign power is assured, control being gained of taxation, customs revenues, judicial administration, coasting trade, and all other domestic functions of government, and foreign extra-territorial rights being renounced.

Comprehensive codes of civil and criminal procedure according to western methods, public instruction, patents and copyrights, municipal administration, including jurisdiction over the former foreign settlements, customs tariffs and procedure, public health, and other administrative measures have been proclaimed. The working of the new system has given rise to no material complaints on the part of the American citizens or interests, a circumstance which attests the ripe consideration with which the change has been prepared.