The Elk Mountain pilot., 1909-12-16

according 20 the modern enlightened
practice of civilized nations. they were
entitled to be dealt with A. prisoners of
war.
At the date when this message Is
printed this government has terminated
diplomatic relations with the Zelaya gov
ernment. for reasons made public in
communication to the former Nicaragua
charge d'affaires. and IL intending to take
such future steps as may be found most
consistent with Its dignity, its duty to
American interests and its moral obliGa-.
tions to Central America and to civilfxa-
ton.
Department Of state.
earnestly recommend to the favor
able consideration Of the eOnagoasztbe 49,
Inmates submitted by the department of
state and most especially the legisla-
ton suggested in the secrtary - states
letter of this date. whereby Il will be
possible to develop and make permanent
the. reorganization of the department
upon modern lines in \ manner to make
It . thoroughly eficient instrument in
the furtherancs Of our forsa8u trade and
OF American interests abroad. The plan
to have divisioas Of Latin-American and
Far-Eastern affairs and to institute .
certain specialization In business with
Europe and the near east will at once
commend itself. These politico- geograph-
ical divisions and tho detail from the
diplomatic or consular service to the
department OF a number of men who
bring to the study of complicated prob
lens in different parts of the world
practical knowledge recently gained on
the spot. clearly is OF the greatest ad-
vantage to the secretary of state in
foreseeing conditions likely to arise and
In conducting the great varisty of corre-
spondence and negotiation 1t should be
remembered that such facilities exist in
the foreign offices of all the leading COM
mercial nations and that to deny them
to the secretary of state would be to
place this government At great disad-
vantage in the rivalry OF commercial
competition.
The consular service has been i'm
proved under the law of April 5. 1906.
and the executive order OF June q. 1906.
and commend to your consideration the
question OF embodyinE in statute the
principles of the present executive order
upon which the efficiency of our consular
service is wholly dependent
Expenditures and Revenues.
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 nscal year. and the certain dehait
of the current year. prompted congress
to throw n 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 expenditures
necessary In the ensuing fiscal year
and OF making an estimate of the rcve-
nucs of the government for the same
period: and II n probable deficit is thus.
shown. II lis made the duty of tho presi-
dent to recommend the method by
which such dehcit can be met.
Tho report OF the secretary shows
that the ordinary expenditures for the
current fiscal year ending June 30. 1910.
will exceed the estimated receipts by
s3t.o75.62o. II to this deficit IN added
the sum to be disburscd for the Pam
anna Canal. amounting to S3s.ooo.ooo,
and $1,000. 900 to be paid on the public
debt. the deficit of ordinary receipts
and expenditures will be increased to
n total deficit OF 3T5.o15.seo. This def
icit the secretary proposes TO meet by
tn. proceeds of bonds issued to pay
the cost OF constructing tho Panama
Canal. approve this proposal.
In order to avoid dcncit for the
ensuing fiscal year. directed the
heads of departments In the prcpara-
ton of their estimates to MAX" them
NJ low ms possible consistent with i'm
perative governmental necessity.
Civil Pensions.
i
feeling in both houses of congress. and
possibly In the country. against the
establishment OF civil pensions, and
that this has naturally grown out of
the heavy burden of military pensions.
which IL has always been the policy
of our government to assume: but
nm strongly convinced that no other
practical solution of the difficulties
presented by the approximation of
civil servants can be found than that
Of a system of civil pensions
Frauds In the Collection Of Customs.
regret to refer to the fact OF the
discovery OF extensive frauds in the
collection of the customs revenue at
New York city. in which number of
tho subordinate employees in the weigh
ing and other departments were d.
rectly concerned. and In which the
henenciarics were the American Sugar
Refining Company and others. The
frauds consisted in the payment of
duty on underwcights of sugar. The
government has recovered from the
American Sugar Refining Company all
that II Is shown to have been defraud-
ed 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 con-
tract of settlement by which the settle
ment should not Interfere with. or pre-
vent the criminal prosecution OF every.
one who was found to be subject to
the same. P nj
Criminal prosecutions are now pro-
ceeding against n number of the gov
ernmcnt officers. The treasury de-
partmcnt and the department OF JUS
tice nrc cxerting every effort to dis
cover all the wrongdoers. including
the oflcers and employees Of the COM
panies who may have been privy to
the fraud. It would seem to me that
an investigation of the frauds by con-
gress at present. pending the probing
by the treasury department and the
department of Justice. as proposed.
might by giving immunity and other
wise prove an embarrassment in secur-
Ing conviction of the guilty parties.
The Tariff Act.
Two features of the new tariff act
call for special reference. BY virtue