Daily Arizona silver belt., 1909-12-08

proportion as the expenditures until re- gently the attention of the public and of those responsible for the government has not been fastened upon the question of reducing the cost of administration. We cannot, in view of the advancing prices of living, hope to save money by a reduction in the standard of salaries paid, Indeed, if any change is made in this regard, an increase rather than a decrease will be necessary; and the only means of economy will be in reducing the number of employees and in obtain ing greater average of efficiency from those retained in the service. Close in vestigation and study needed to make definite recommendations in this regard will consume at least two years. l note with much satisfaction the organization in the senate of committee on public expenditures, and tender to that com mittee all the assistance which the ex- eeutive branch of the government can possibly render.
 Sugar Frauds
 | regret to re4er to the fact of the discovery of extensive frauds in the col lection of the customs revenue at New York City, in which number of subor. dinate employees in the weighing and other departments were directly concern ed and in which the beneficiaries were the American Sugar Refining company, 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 defrauded 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.
 Criminal prosecutions are now pro ceeding against a number of the govern ment officers. The treasury department and the department of justice are exert ing every effort to discover all the wTongdoers, including the officers and employees of the companies who may have been privy to the fraud. It would seem to me that an investigation of the frauds by congress at present, pend ing the probing by the treasury depart ment and the department of justice, as proposed, might by giving immunity and
 therwiSe, prove an embarrassmenti in se- curing conviction of the guilty parties.
 Maximum and Minimum
 Two features of the new tariff act call for special reference. By virtue of the clause known as the "maximum and minimum" clause, it is the duty of the executive to consider the laws and prac- tices 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 an dpractices not to be un- duly discriminatory against the United States the minimum duties provided in the bill are to go into force. Unless the president makes such finding the maximum provided for in the bill. that is, an increase of 25 per cent ad valorem over the minimum duties, are to be in force. Fear has been expressed that this power conferred and duly imposed on the executive is likely to lead to a tariff war. I beg 10 express the hope and belief that no such result need be anticipated.
 The discretion granted to the execu- tive by the terms "unduly discrimina teryn is wide. In order that the max imum duty shall be charged against the imports from what is necessary that he shall find on the part of that country not only discriminatiOns in it's laws or its practice under them against the trade of the United States, but that the found shall be undue; that is, without good and fair reason. I conceive that this power was reDosed in the president with the hope that the maximum duties might never be applied in any case, but that the power to apply them would enable the president and the state department through friendly nego- tiatiOn to secure the elimination from the laws and practices under them of any foreign country of that which is unduly discriminatory. I,o one is seek ing tariff war or a condition in which the spirit of retaliation shall pc aroused.
 The new tariff law enables me to appoint a tariff board to assist me in with the department of state in the administration of the maximum and minimum clase of the act and also to assist officers of the government in the administration of the entire law An examination of the law and an under of the nature of the facts which should be considered in discharg- ing the functions imposed upon the ex- ecutive show that I have the power to direct the tariff board to make a com parative 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 appointed a tarim board of three members and have directed them to perform all the duties above described. This work will per haps take two or three years and ask from congress continuing annual ap- equal to that already made for its prosecution. I believe that the work of this board will be of prime utility and importance whenever con gress shall deem it wise again to re- adjust the eostoms duties. If the facts secured by the tariff board are of such ! character as to show generally that the rates of duty imposed by the present tariff law are excessive under the prin-