Daily Arizona silver belt., 1909-12-08
PRESIDENT TAFT'S
 MESSAGE COMPLETE
(Continued from Page Thrce)

1902 and there seems to be no good reason for departing from the principle by which part at least of the bur den of the cost of the canal fell upon our pOsterity, who are to enJOv it; and there is all the more reason for this view because the actual cost to date of the canal, which is now half done and will be completed January l, 1915, shows that the cost of engineering and constructing will be $297, ,766,000 in. stead of $l39, ,705,200 as originally esti- mated.
 In addition to engineering and con struction the other expenses including sanitation and government, and the amount paid for the properties, the franchise, and the privilege of build ing the canal, increase the cost by $75,- 435,O0 to a total of $373, ,20l 900.
 The increase in the cost of engineer ing and construction is due to sub stantial enlargement of the plan of construction by widening the canal 100 feet in the Culebra cut and by increas. ing the dimensions of the locks to the under r-estimate of the quantity of work to be done under the original plan, and to an under estimate of the cost of la bor and materials, both of which have greatly enhanced in price since the or iginal estimate was made.
 Lower Estimates
 In order to avoid a deficit for the ensuing fiscal year, I directed the heads of departments in preparation of their estimates to make them as low as possible consistent with imperative governmental necessity. The result has been, as I am advised by the secretary of the treasury, that the estimates of the expenses of the government for the fiscal year ending June 30, l9ll- that is, for tho next fiscal syear-are less by 55,663, 900 than the total of appropriations for the current fiscal year, and less by $94,000,00O than the estimates for that year.
 So far as the secretary of the treas. ury is able to form judgment as to future income and compare it with the expenditures for the next fiscal year, ending June 30, 1911, including the payments on account of the Panama canal and the public debt, there will be no deficit in the year ending June 30. 1911, but small surplus of $712,- coo.
 In the present estimates the needs of the departments and of the govern ment have been cut to the quick, so to speak, and any assumption on the part of the congress. so often made in times past, that the estimates have been pre- pared at the expectation that they may be reduced and will result in seriously hampering the proper administration.
 The secretary of the treasury points out what should be carefully noted in respect to this reduction in government al expenses for the next fiscal year, that the economies are of two kinds first, there is a saving in the permanent administration of the departments, bu- Teaus and officers of the government; 1; and, second, there is present reduction in expenses by postponement of projects and improvements that have to be carried out, but which are now de- layed with the hope that additional revenue in the future will permit their execution without producing deficit.
 Plan for Retrenchment
 It has been impossible in the prepara. ton of estimates greatly to reduce the cost of permanent administration. This cannot be done without a thorough re. organization of bureaus, offices and de. Bartments. For the purpose of securing information which may enable the ex. ecutive and the legislation branches to unite in plan for the permanent re- ductiOn of the cost of governmental ad ministratiOn, the treasury department has instituted an investigation by one of the most skilled expert accountants in the United States. The result of his work in two or three bureaus, which if extended to the entire government must occupy two or more years, has been to show much room for improvement and opportunity for substantial reductions in the costs and increased efficiency of ad. The objection of the in- vestigatiOn is to devise means to in crease the average efficiency of each employe. There is great room for i'm provement toward these ends, not only by the reorganization of bureaus and in the avoidance of duplication, but also in the treatment of the individual em- plOye.
 Under the present system it constant ly happens that two employees receive the same salary when the work of one is far more difficult and important. and eKacting than that of the other.
 Superior ability is not rewarded or encouraged. As the classification is now entirely by salary, an emplOye often rises to the highest class while doing the easiest work for which alone he may he fitted. The investigation ordered by my predecessor resulted in the Tecom- that the civil service be re- according to the kind of work so that the work requiring most applica- tiOh and knowledge and ability shall receive most compensation. I believe such a change would be fairer to the whole force and would permanently im- prove the personnel of the service.
 More than this, every reform directed toward the improvement in the efici- ency of government employees must de- pend on the ability of the executive to from the government service those who are inefficient from any cause and as the degree of efficiency in all the departments is much lessened by the retention of old employees who have outlived their energy and business ft- ness it is indispensable to any proper system of economy that provision be made so that their separation from the