Most desirable from every standpoint of national interest and patriotism is

the effort to extend our foreign commerce. To this end our merchant marine

should be improved and enlarged. We should do our full share of the

carrying trade of the world. We do not do it now. We should be the laggard

no longer. The inferiority of our merchant marine is justly humiliating to

the national pride. The Government by every proper constitutional means,

should aid in making our ships familiar visitors at every commercial port

of the world, thus opening up new and valuable markets to the surplus

products of the farm and the factory.

The efforts which had been made during the two previous years by my

predecessor to secure better protection to the fur seals in the North

Pacific Ocean and Bering Sea, were renewed at an early date by this

Administration, and have been pursued with earnestness. Upon my invitation,

the Governments of Japan and Russia sent delegates to Washington, and an

international conference was held during the months of October and November

last, wherein it was unanimously agreed that under the existing regulations

this species of useful animals was threatened with extinction, and that an

international agreement of all the interested powers was necessary for

their adequate protection.

The Government of Great Britain did not see proper to be represented at

this conference, but subsequently sent to Washington, as delegates, the

expert commissioners of Great Britain and Canada who had, during the past

two years, visited the Pribilof Islands, and who met in conference similar

commissioners on the part of the United States. The result of this

conference was an agreement on important facts connected with the condition

of the seal herd, heretofore in dispute, which should place beyond

controversy the duty of the Governments concerned to adopt measures without

delay for the preservation and restoration of the herd. Negotiations to

this end are now in progress, the result of which I hope to be able to

report to Congress at an early day.

International arbitration cannot be omitted from the list of subjects

claiming our consideration. Events have only served to strengthen the

general views on this question expressed in my inaugural address. The best

sentiment of the civilized world is moving toward the settlement of

differences between nations without resorting to the horrors of war.

Treaties embodying these humane principles on broad lines, without in any

way imperiling our interests or our honor, shall have my constant

encouragement.

The acceptance by this Government of the invitation of the Republic of

France to participate in the Universal Exposition of 1900, at Paris, was

immediately followed by the appointment of a special commissioner to

represent the United States in the proposed exposition, with special

reference to the securing of space for an adequate exhibit on behalf of the

United States.

The special commissioner delayed his departure for Paris long enough to

ascertain the probable demand for space by American exhibitors. His

inquiries developed an almost unprecedented interest in the proposed

exposition, and the information thus acquired enabled him to justify an

application for a much larger allotment of space for the American section

than had been reserved by the exposition authorities. The result was

particularly gratifying, in view of the fact that the United States was one

of the last countries to accept the invitation of France.

The reception accorded our special commissioner was most cordial, and he

was given every reasonable assurance that the United States would receive a

consideration commensurate with the proportions of our exhibit. The report

of the special commissioner as to the magnitude and importance of the

coming exposition, and the great demand for space by American exhibitors,

supplies new arguments for a liberal and judicious appropriation by

Congress, to the end that an exhibit fairly representative of the

industries and resources of our country may be made in an exposition which

will illustrate the world's progress during the nineteenth century. That

exposition is intended to be the most important and comprehensive of the

long series of international exhibitions, of which our own at Chicago was a

brilliant example, and it is desirable that the United States should make a

worthy exhibit of American genius and skill and their unrivaled

achievements in every branch of industry.

The present immediately effective force of the Navy consists of four battle

ships of the first class, two of the second, and forty-eight other vessels,

ranging from armored cruisers to torpedo boats. There are under

construction five battle ships of the first class, sixteen torpedo boats,

and one submarine boat. No provision has yet been made for the armor of

three of the five battle ships, as it has been impossible to obtain it at

the price fixed by Congress. It is of great importance that Congress

provide this armor, as until then the ships are of no fighting value.

The present naval force, especially in view of its increase by the ships

now under construction, while not as large as that of a few other powers,

is a formidable force; its vessels are the very best of each type; and with

the increase that should be made to it from time to time in the future, and

careful attention to keeping it in a high state of efficiency and repair,

it is well adapted to the necessities of the country.

The great increase of the Navy which has taken place in recent years was

justified by the requirements for national defense, and has received public

approbation. The time has now arrived, however, when this increase, to

which the country is committed, should, for a time, take the form of

increased facilities commensurate with the increase of our naval vessels.

It is an unfortunate fact that there is only one dock on the Pacific Coast

capable of docking our largest ships, and only one on the Atlantic Coast,

and that the latter has for the last six or seven months been under repair

and therefore incapable of use. Immediate steps should be taken to provide

three or four docks of this capacity on the Atlantic Coast, at least one on

the Pacific Coast, and a floating dock in the Gulf. This is the

recommendation of a very competent Board, appointed to investigate the

subject. There should also be ample provision made for powder and

projectiles, and other munitions of war, and for an increased number of

officers and enlisted men. Some additions are also necessary to our

navy-yards, for the repair and care of our large number of vessels. As

there are now on the stocks five battle ships of the largest class, which

cannot be completed for a year or two, I concur with the recommendation of

the Secretary of the Navy for an appropriation authorizing the construction

of one battle ship for the Pacific Coast, where, at present, there is only

one in commission and one under construction, while on the Atlantic Coast

there are three in commission and four under construction; and also that

several torpedo boats be authorized in connection with our general system

of coast defense.

The Territory of Alaska requires the prompt and early attention of

Congress. The conditions now existing demand material changes in the laws

relating to the Territory. The great influx of population during the past

summer and fall and the prospect of a still larger immigration in the

spring will not permit us to longer neglect the extension of civil

authority within the Territory or postpone the establishment of a more

thorough government.

A general system of public surveys has not yet been extended to Alaska and

all entries thus far made in that district are upon special surveys. The

act of Congress extending to Alaska the mining laws of the United States

contained the reservation that it should not be construed to put in force

the general land laws of the country. By act approved March 3, 1891,

authority was given for entry of lands for town-site purposes and also for

the purchase of not exceeding one hundred and sixty acres then or

thereafter occupied for purposes of trade and manufacture. The purpose of

Congress as thus far expressed has been that only such rights should apply

to that Territory as should be specifically named.

It will be seen how much remains to be done for that vast and remote and

yet promising portion of our country. Special authority was given to the

President by the Act of Congress approved July 24, 1897, to divide that

Territory into two land districts and to designate the boundaries thereof

and to appoint registers and receivers of said land offices, and the

President was also authorized to appoint a surveyor-general for the entire

district. Pursuant to this authority, a surveyor-general and receiver have

been appointed, with offices at Sitka. If in the ensuing year the

conditions justify it, the additional land district authorized by law will

be established, with an office at some point in the Yukon Valley. No

appropriation, however, was made for this purpose, and that is now

necessary to be done for the two land districts into which the Territory is

to be divided.

I concur with the Secretary of War in his suggestions as to the necessity

for a military force in the Territory of Alaska for the protection of

persons and property. Already a small force, consisting of twenty-five men,

with two officers, under command of Lieutenant-Colonel Randall, of the

Eighth Infantry, has been sent to St. Michael to establish a military

post.

As it is to the interest of the Government to encourage the development and

settlement of the country and its duty to follow up its citizens there with

the benefits of legal machinery, I earnestly urge upon Congress the

establishment of a system of government with such flexibility as will

enable it to adjust itself to the future areas of greatest population.

The startling though possibly exaggerated reports from the Yukon River

country, of the probable shortage of food for the large number of people

who are wintering there without the means of leaving the country are

confirmed in such measure as to justify bringing the matter to the

attention of Congress. Access to that country in winter can be had only by

the passes from Dyea and vicinity, which is a most difficult and perhaps an

impossible task. However, should these reports of the suffering of our

fellow-citizens be further verified, every effort at any cost should be

made to carry them relief.

For a number of years past it has been apparent that the conditions under

which the Five Civilized Tribes were established in the Indian Territory

under treaty provisions with the United States, with the right of

self-government and the exclusion of all white persons from within their

borders, have undergone so complete a change as to render the continuance

of the system thus inaugurated practically impossible. The total number of

the Five Civilized Tribes, as shown by the last census, is 45,494, and this

number has not materially increased; while the white population is

estimated at from 200,000 to 250,000 which, by permission of the Indian

Government has settled in the Territory. The present area of the Indian

Territory contains 25,694,564 acres, much of which is very fertile land.

The United States citizens residing in the Territory, most of whom have

gone there by invitation or with the consent of the tribal authorities,

have made permanent homes for themselves. Numerous towns have been built in

which from 500 to 5,000 white people now reside. Valuable residences and

business houses have been erected in many of them. Large business

enterprises are carried on in which vast sums of money are employed, and

yet these people, who have invested their capital in the development of the

productive resources of the country, are without title to the land they

occupy, and have no voice whatever in the government either of the Nations

or Tribes. Thousands of their children who were born in the Territory are

of school age, but the doors of the schools of the Nations are shut against

them, and what education they get is by private contribution. No provision

for the protection of the life or property of these white citizens is made

by the Tribal Governments and Courts.

The Secretary of the Interior reports that leading Indians have absorbed

great tracts of land to the exclusion of the common people, and government

by an Indian aristocracy has been practically established, to the detriment

of the people. It has been found impossible for the United States to keep

its citizens out of the Territory, and the executory conditions contained

in the treaties with these Nations have for the most part become impossible

of execution. Nor has it been possible for the Tribal Governments to secure

to each individual Indian his full enjoyment in common with Other Indians

of the common property of the Nations. Friends of the Indians have long

believed that the best interests of the Indians of the Five Civilized

Tribes would be found in American citizenship, with all the rights and

privileges which belong to that condition.

By section 16, of the act of March 3, 1893, the President was authorized to

appoint three commissioners to enter into negotiations with the Cherokee,

Choctaw, Chickasaw, Muscogee (or Creek), and Seminole Nations, commonly

known as the Five Civilized Tribes in the Indian Territory. Briefly, the

purposes of the negotiations were to be: The extinguishment of Tribal

titles to any lands within that Territory now held by any and all such

Nations or Tribes, either by cession of the same or some part thereof to

the United States, or by allotment and division of the same in severalty

among the Indians of such Nations or Tribes respectively as may be entitled

to the same, or by such other method as may be agreed upon between the

several Nations and Tribes aforesaid, or each of them, with the United

States, with a view to such an adjustment upon the basis of justice and

equity as may, with the consent of the said Nations of Indians so far as

may be necessary, be requisite and suitable to enable the ultimate creation

of a State or States of the Union which shall embrace the lands within said

Indian Territory.

The Commission met much opposition from the beginning. The Indians were

very slow to act, and those in control manifested a decided disinclination

to meet with favor the propositions submitted to them. A little more than

three years after this organization the Commission effected an agreement

with the Choctaw Nation alone. The Chickasaws, however, refused to agree to

its terms, and as they have a common interest with the Choctaws in the

lands of said Nations, the agreement with the latter Nation could have no

effect without the consent of the former. On April 23, 1897, the Commission

effected an agreement with both tribes--the Choctaws and Chickasaws. This

agreement, it is understood, has been ratified by the constituted

authorities of the respective Tribes or Nations parties thereto, and only

requires ratification by Congress to make it binding.

On the 27th of September, 1897, an agreement was effected with the Creek

Nation, but it is understood that the National Council of said Nation has

refused to ratify the same. Negotiations are yet to be had with the

Cherokees, the most populous of the Five Civilized Tribes, and with the

Seminoles, the smallest in point of numbers and territory.

The provision in the Indian Appropriation Act, approved June 10, 1896,

makes it the duty of the Commission to investigate and determine the rights

of applicants for citizenship in the Five Civilized Tribes, and to make

complete census rolls of the citizens of said Tribes. The Commission is at

present engaged in this work among the Creeks, and has made appointments

for taking the census of these people up to and including the 30th of the

present month.

Should the agreement between the Choctaws and Chickasaws be ratified by

Congress and should the other Tribes fail to make an agreement with the

Commission, then it will be necessary that some legislation shall be had by

Congress, which, while just and honorable to the Indians, shall be

equitable to the white people who have settled upon these lands by

invitation of the Tribal Nations.

Hon. Henry L. Dawes, Chairman of the Commission, in a letter to the

Secretary of the Interior, under date of October 11, 1897, says:

"Individual ownership is, in their (the Commission's) opinion, absolutely

essential to any permanent improvement in present conditions, and the lack

of it is the root of nearly all the evils which so grievously afflict these

people. Allotment by agreement is the only possible method, unless the

United States Courts are clothed with the authority to apportion the lands

among the citizen Indians for whose use it was originally granted."

I concur with the Secretary of the Interior that there can be no cure for

the evils engendered by the perversion of these great trusts, excepting by

their resumption by the Government which created them.

The recent prevalence of yellow fever in a number of cities and towns

throughout the South has resulted in much disturbance of commerce, and

demonstrated the necessity of such amendments to our quarantine laws as

will make the regulations of the national quarantine authorities paramount.

The Secretary of the Treasury, in the portion of his report relating to the

operation of the Marine Hospital Service, calls attention to the defects in

the present quarantine laws, and recommends amendments thereto which will

give the Treasury Department the requisite authority to prevent the

invasion of epidemic diseases from foreign countries, and in times of

emergency, like that of the past summer, will add to the efficiency of the

sanitary measures for the protection of the people, and at the same time

prevent unnecessary restriction of commerce. I concur in his

recommendation.

In further effort to prevent the invasion of the United States by yellow

fever, the importance of the discovery of the exact cause of the disease,

which up to the present time has been undetermined, is obvious, and to this

end a systematic bacteriological investigation should be made. I therefore

recommend that Congress authorize the appointment of a commission by the

President, to consist of four expert bacteriologists, one to be selected

from the medical officers of the Marine Hospital Service, one to be

appointed from civil life, one to be detailed from the medical officers of

the Army, and one from the medical officers of the Navy.

The Union Pacific Railway, Main Line, was sold under the decree of the

United States Court for the District of Nebraska, on the 1st and 2d of

November of this year. The amount due the Government consisted of the

principal of the subsidy bonds, $27,236,512, and the accrued interest

thereon, $31,211,711.75, making the total indebtedness, $58,448,223.75. The

bid at the sale covered the first mortgage lien and the entire mortgage

claim of the Government, principal and interest.

The sale of the subsidized portion of the Kansas Pacific Line, upon which

the Government holds a second mortgage lien, has been postponed at the

instance of the Government to December 16, 1897. The debt of this division

of the Union Pacific Railway to the Government on November 1, 1897, was the

principal of the subsidy bonds, $6,303,000, and the unpaid and accrued

interest thereon, $6,626,690.33, making a total of $12,929,690.33.

The sale of this road was originally advertised for November 4, but for the

purpose of securing the utmost public notice of the event it was postponed

until December 16, and a second advertisement of the sale was made. By the

decree of the Court, the upset price on the sale of the Kansas Pacific will

yield to the Government the sum of $2,500,000 over all prior liens, costs,

and charges. If no other or better bid is made, this sum is all that the

Government will receive on its claim of nearly $13,000,000. The Government

has no information as to whether there will be other bidders or a better

bid than the minimum amount herein stated. The question presented therefore

is: Whether the Government shall, under the authority given it by the act

of March 3, 1887, purchase or redeem the road in the event that a bid is

not made by private parties covering the entire Government claim. To

qualify the Government to bid at the sales will require a deposit of

$900,000, as follows: In the Government cause $500,000 and in each of the

first mortgage causes $200,000, and in the latter the deposit must be in

cash. Payments at the sale are as follows: Upon the acceptance of the bid a

sum which with the amount already deposited shall equal fifteen per cent of

the bid; the balance in installments of twenty-five per cent thirty, forty,

and fifty days after the confirmation of the sale. The lien on the Kansas

Pacific prior to that of the Government on the 30th July, 1897, principal

and interest, amounted to $7,281,048.11. The Government, therefore, should

it become the highest bidder, will have to pay the amount of the first

mortgage lien.

I believe that under the act of 1887 it has the authority to do this and in

absence of any action by Congress I shall direct the Secretary of the

Treasury to make the necessary deposit as required by the Court's decree to

qualify as a bidder and to bid at the sale a sum which will at least equal

the principal of the debt due to the Government; but suggest in order to

remove all controversy that an amendment of the law be immediately passed

explicitly giving such powers and appropriating in general terms whatever

sum is sufficient therefor.

In so important a matter as the Government becoming the possible owner of

railroad property which it perforce must conduct and operate, I feel

constrained to lay before Congress these facts for its consideration and

action before the consummation of the sale. It is clear to my mind that the

Government should not permit the property to be sold at a price which will

yield less than one-half of the principal of its debt and less than

one-fifth of its entire debt, principal and interest. But whether the

Government, rather than accept less than its claim, should become a bidder

and thereby the owner of the property, I submit to the Congress for

action.

The Library building provided for by the act of Congress approved April 15,

1886, has been completed and opened to the public. It should be a matter of

congratulation that through the foresight and munificence of Congress the

nation possesses this noble treasure-house of knowledge. It is earnestly to

be hoped that having done so much toward the cause of education, Congress

will continue to develop the Library in every phase of research to the end

that it may be not only one of the most magnificent but among the richest

and most useful libraries in the world.

The important branch of our Government known as the Civil Service, the

practical improvement of which has long been a subject of earnest

discussion, has of late years received increased legislative and Executive

approval. During the past few months the service has been placed upon a

still firmer basis of business methods and personal merit. While the right

of our veteran soldiers to reinstatement in deserving cases has been

asserted, dismissals for merely political reasons have been carefully

guarded against, the examinations for admittance to the service enlarged

and at the same time rendered less technical and more practical; and a

distinct advance has been made by giving a hearing before dismissal upon

all cases where incompetency is charged or demand made for the removal of

officials in any of the Departments. This order has been made to give to

the accused his right to be heard but without in anyway impairing the power

of removal, which should always be exercised in cases of inefficiency and

incompetency, and which is one of the vital safeguards of the civil service

reform system, preventing stagnation and deadwood and keeping every

employee keenly alive to the fact that the security of his tenure depends

not on favor but on his own tested and carefully watched record of

service.

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