The Mena weekly star., 1909-12-16

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 i son for this view because the actual 1 cost to date of the canal. which fs now
 half done and which will be completed
 anuary l. 1915. shows that the cost oi
 engineering and construction will be
 s2a7. 766 900, Instead of si39. 705.200. as
 originally estimated. In addition tc engineering and construction, the other
 expenses. including sanitation and gov
 .rnment. and the amount paid for tho
 properties the franchise. and the prtvi-
 lege of building the canal. increase the
 cost of ST5.425. GOO. to a total of $37S,-
 POI 900 The increase in the cost of
 engineering and construction is due to
 s 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 estlmmate was made.
 In order to avoid deficit for the
 ensuing fiscal year. I directed the
 heads of departments in the prepara-
 ton of their estimates to make them as low as possible consistent with im- perative governmental necessity. The result has been as I 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.S1s.000. So far as the sec retary of the treasury is able to form a judgment as to future income and compare it 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 a surplus of s35, 931. 900.
 Tn 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, so often made in times past that the estimates have been prepared with the expectation that they may be reduced. will result In seriously hampering proper admin istration.
 To reduce the cost of permanent administration, says the president. 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 efficiency.
 Frauds in the Collection of Customs.
 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 a number of the subor dinats employees In the weighing and other departments were directly con cerned. and in which the benefciaries 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 It 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 crim- inal prosecution of everyone who was found to be subject to the same.
 Criminal prosecutions are now proceed Ing against number of the government officers. The treasury department and the department of justice are exerting every effort to discover all the wrongdoers. in- ciuding the officers and employees of the who may have been privy to the fraud It would seem to me that an of the frauds by congress at present pending the probing by the treas ury department and the department of justice, as proposed. might by giving i'm munity and otherwise prove an embar- rassment in securing conviction of the guilty parties.
 Maximum and Minimum Clause in
 Tariff Act.
 Two features of the new tariff act call for special reference. By virtue of the clause known as the maximum and min mum" clause, 1t is the duty of the exec utive to consider the laws and practices of other countries with reference to the importation Into those countries of the products and merchandise of the United States. and if the executive finds such laws and practices not 10 be unduly dis against the United States. the minimum duties provided Tn the bill are to go into force. Unless the president makes such finding, then the maximum duties provided in the bill, that is, an in- crease of % per cent. ad valorem over the minimum duties, are to be in force. Fear has been expressed that this power con ferred and duty imposed on the execu- tive is likely to lead to a tariff war. beg to express the hope and belief that no such result need be anticipated
 The discretion granted to the executive by the terms 'unduly discriminatory is wide. In order that the maximum duty shall be charged against the imports from a country, 1t is necessary that he shall find on the part of that country not only in its laws or the prac- tice under them against the trade of the United States, but that the dscrimlna- tons found shall be undue; that is, with out good and fair reason. I conceive that this power was reposed in the presi- dent with the hope that the maximum du- ties might never be applied In any case, but that the power to apply them would enable the president and the state depart- ment through friendly negotiation to se- cure the elimination from the laws and the practice under them of any foreign country of that which Is unduly dscrim- inatory. No one is seeking a tariff war or condition in which the spirit of re- taliation shall be aroused
 The new tariff law enables me 10 ap- point tariff board to assist me in con nection with the department of state in the administration of the minimum and maximum clause of the act and also to assist officers of the government in the of the entire law. An es- animation of the law and an understand Ing of the nature of the facts which should be considered in discharg- Ing the functions imposed upon the execu- tive show that I have the power to direct the tariff board to make comprehensive glossary and encyclopedia of the terms used and articles embraced in the tariff law. and to secure information as to the cost of production of such goods in this country and the cost of their production in foreign countries. I have therefore ap- pointed tariff board consisting of three members and have directed them to per form all the duties above described. This work will perhaps take two or three years. and l ask from congress a continu-