The Montgomery tribune., 1909-12-10

ute referred to. The great scope and |
complexity of this work. as we'll as |
the obligation TO lend oil proper aid |
TO our expanding commerce, IL met by |
the expansion of the bureau OF trade |
relations as set forth in the estimates |
for the department of state.
Government Expenditures and Reve.
nves.
Perhaps the most important question
presented TO this administration is that |
OF economy in expenditures and sum
cheney OF revenue. The deficit of the
last fiscal year. and the certain deficit
of the current year, prompted congress
to throw a greater responsibility on
the executive and the secretary Of the
treasury than had heretofore been de-
clared by statute. This declaration
imposes upon the secretary OF the
treasury the duty of assembling all the
estimates of the executive departments
bureaus, and Offices, of the expendi-
lures necessary in the ensuing fiscal
year. and of making an estimate of
the revenues of the government for
the same period; and IL a probable
deficit is thus shown. 1t Is made the
duty of the president to recommend
the method by which such deficit can
| be met.
The report of the secretary shows
| that the ordinary expenditures for the
| current fiscal year ending June 80. 1910.
| s34,075,G20. If to this deficit Is added
| the sum to be disbursed for the Pan
anna Canal. amounting to S3S000,0OO
and 100000 to be paid on the public
| debt. the deficit of ordinary receipts
and expenditures will be Increased to
total deficit of s73.075.620. This de-
| felt the secretary proposes to meet by
| the proceeds of bonds issued to pay
| the cost of constructing the Panama
Canal. I approve this proposal
The policy Of paying for the con-
| struction of the Panama Canal, not out
| of current revenue, but by bond issues
| was adopted in the Spooner act of
| 1890. and there seems to be no good
reason for departing from the prin-
| ciple by which q part at least of the
| burden of the cost of the canal shall
| fall upon our posterity who are to en-
| JOY 1T: and there is all the more rea-
| son for this view because the actual
| cost to date of the canal which Is now
| half done and which will be completed
| anuary /. 1915 shows that the cost of
| engineering and construction will be
$297, 766. 900, instead of s139. .705.200 as
| originally estimated. In addition to
| engineering and construction. the other
expenses, including sanitation and gov
| ernment. and the amount paid for the
| properties. the franchise. and the privi-
lege of building the canal, increase the
cost of $75.435.000. to a total of s375.-
| 201,000 The increase in the cost of
| engineering and construction is due to
| a substantial enlargement of the plan
| of construction by widening the canal
| 100 feet in the Culebra cut and by in
| creasing the dimensions of the locks,
| to the underestimate of the quantity Of
| the work to be done under the orig
| inal plan and to an underestimate of
the cost of labor and materials, both of
which have greatly enhanced in price
since the original estimate was made.
n a 10
ensuing fiscal year, / directed the
heads of departments in the prepara-
tion of their estimates to make them
as low as possible consistent with i'm
perative governmental necessity. The
result has been, as am advised by the
secretary of the treasury. that the es-
Inmates for the expenses of the gov
ernment for the next fiscal year end
ing June 30 1911, are less than the ap-
propriations for this current fiscal
| year by s42,S1SO00. So far as the Sec
| retary of the treasury is able to form
| a Judgment as to future income and
l compare II with the expenditures for
the next fiscal year ending June 30,
/ 1911, and excluding payments on ac-
] count of the Panama Canal, which will
| doubtless be taken up by bonds, there
| will be surplus of $35, 931 900.
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 congress. often made in
been prepared with the expectation
that they may be reduced, will result
in seriously hampering proper admin
istration.
II To reduce the cost of permanent
administration, says the president, a
thorough reorganization of bureaus,
offices and departments would be nee
essary. An expert accountant has
been making an investigation into this
matter and the result of his work
shows opportunity for both substan.
tial reductions in cost and increase of
J efficiency.
Frauds In the Collection Of Customs
1 regret to refer to the fact of the dis
covery of extensive frauds in the collec-
ton of the customs revenue at New YORK
city, In which number of the subor-
dinate employees In the weighing and
other departments were directly con-
! cerned and in which the beneficiaries
} were the American Sugar Refining Com
pany and others. The frauds consisted
In the payment of duty on underweights
of sugar. The government has recovered
from the American Sugar Refining Com
pany all that 1t is shown to have been de-
frauded Of. The sum was received in full
| of the amount due, which might have
been recovered by civil suit against the
beneficiary of the fraud but there was
| an express reservation in the contract OF
settlement by which the settlement should
, | not interfere with. or prevent the Grim.
inal prosecution of everyone who was
| found to be subject to the same.
Criminal prosecutions are now proceed
, ing against a number of the government
J | officers. The treasury department and the
, | department of justice are exerting every
effort to discover all the wrongdoers. in
: cluding the officers and employees of thu
: companies who may have been privy Il
the fraud 1t would seem to me that ar
investigation of the frauds by congress a
present. pending the probing by the treas
a ury department and the department o.
justice. as proposed, might by giving i'm
: munity and otherwise prove an embar
Z rassment In securing conviction of thu
; guilty parties
) Maximum and Minimum Clause II
/ Tariff Act.
r Two features of the new tariff act cal