Frank W. Mondell, R. Territorial Delegates. Amos L. Allen, Maine, was elected in place of Thomas B. Reed, who resigned; William F. Aldrich, Alabama, took his seat March 8, 1900; Charles A. Chickering, New York, died Feb. 9, 1900; W. T. Crawford, North Carolina, was unseated May 10, 1900; S. P. Epes, Virginia, died March 3, 1900; Alfred C. Harmer, Pennsylvania, died March 6, 1900; Smith McPherson, Iowa, resigned June 6, 1900; G. A. Robbins, Alabama, was unseated March 8, 1900; B. H. Roberts, Utah, was refused admission Jan. 25, 1900; J. W. Smith, Maryland, resigned Jan. 12, 1900; W. A. Young, Virginia, was unseated March 12, 1900; June W. Gayle, Kentucky, was elected in place of E. E. Settle, deceased; Joseph J. Gill, Ohio, in place of Lorenzo Danford, deceased; Henry D. Green, Pennsylvania, in place of Daniel Ermentrout, deceased; Francis R. Lassiter, in place of Sydney P. Epes, Virginia, deceased; C. E. Littlefield, Maine, in place of Nelson Dingley, deceased; William Neville, Nebraska, in place of W. L. Greene, deceased; D. W. Shackleford, Missouri, in place of Richard P. Bland, deceased; E. B. Vreeland, in place of Warren B. Hooker, resigned. The first business of the House of Representatives after roll call was the election of a Speaker. David B. Henderson, of Iowa, was chosen, receiving 181 votes, to 156 for James D. Richardson, of Tennessee, 4 votes for John C. Bell, of Colorado, and 2 votes for Francis G. Newlands, of Nevada. There were 12 members not voting. The organization of the House was completed by adopting the following resolution, offered by Mr. Grosvenor, of Ohio: "Resolved, That Alexander McDowell, of the State of Pennsylvania, be, and he is hereby, chosen clerk of the House of Representatives; "That Henry Casson, of the State of Wisconsin, be, and he is hereby, chosen sergeant-at-arms of the House of Representatives; "That William J. Glenn, of the State of New York, be, and he is hereby, chosen doorkeeper of the House of Representatives; "That Joseph C. McElroy, of the State of Ohio, be, and he is hereby, chosen postmaster of the House of Representatives; and "That Henry N. Couden, of the State of Michigan, be, and he is hereby, chosen chaplain of the House of Representatives." The rules of the Fifty-fifth Congress were then adopted by a vote of 178 to 159. In opposition to that course Mr. Richardson, of Tennessee, said: "I feel certain that either the power of the Committee on Rules could be curtailed or the membership of that committee could be enlarged. I remember that the first time I ever had the honor to address this House it was in opposition to the powers of the Committee on Rules in the Fifty-second Congress, and I predicted that the three members who constitute a majority of that committee would in time become a legislative triumvirate. Under these rules the Committee on Rules not only decides what business the House must transact, but also what business the House shall not transact. "It is enough to clothe the Speaker with the power of recognition and to supplement that by adding the power to appoint the committees of the House; but to add to those powers, great almost to the point of being dangerous, the absolute control of the House through its Committee on Rules is giving greater power to the Speaker of this House than any one man in this free republic ought to possess. To say that the power still remains with the House is a subterfuge, because the House can never pass upon a question until the Committee on Rules see fit to report. To say that the committee can be controlled by the majority is not candid, because that committee is considered the Speaker's official family, and no gentleman of the Speaker's party would serve upon it unless he could support the Speaker's policy. If a Democrat were the Speaker of this House, and I could not cordially and loyally support his policy in that committee, I would resign my membership upon it. "I respect the gentleman from Pennsylvania, and no man on this side of the Chamber respects the gentleman from Iowa, now the honorable Speaker of this House, more than I do; and yet I divulge no secrets of the committee room when I say that with these gentlemen on it the Speaker of the Fifty-fifth Congress, with their help, absolutely controlled the Committee on Rules. I know that the Speaker of the Fifty-third and the Fifty-second Congresses-a great and splendid Democrat, whom we mourn even until this day-completely dominated the Committee on Rules when the House was Democratic. I know that the honorable Speaker of this House, under these rules, if they are adopted, will be practically the Committee on Rules; and the Committee on Rules is practically the House of Representatives. view of that it does seem to me that if you will not curtail the power of that committee, certainly its membership ought to be enlarged." In Dec. 5 the Congress notified the President that it was ready to proceed to business, and he sent in his annual message, as follows: To the Senate and House of Representatives: At the threshold of your deliberations you are called to mourn with your countrymen the death of Vice-President Hobart, who passed from this life on the morning of Nov. 21 last. His great soul now rests in eternal peace. His private life was pure and elevated, while his public career was ever distinguished by large capacity, stainless integrity, and exalted motives. He has been removed from the high office which he honored and dignified, but his lofty character, his devotion to duty, his honesty of purpose, and noble virtues remain with us as a priceless legacy and example. The Fifty-sixth Congress convenes in its first regular session with the country in a condition of unusual prosperity, of universal good will among the people at home, and in relations of peace and friendship with every government of the world. Our foreign commerce has shown great increase in volume and value. The combined imports and exports for the year are the largest ever shown by a single year in all our history. Our exports for 1899 alone exceeded by more than a billion dollars our imports and exports combined in 1870. The imports per capita are 20 per cent. less than in 1870, while the exports per capita are 58 per cent. more than in 1870, showing the enlarged capacity of the United States to satisfy the wants of its own increasing population, as well as to contribute to those of the peoples of other nations. Exports of agricultural products were $784,776,142. Of manufactured products we exported in value $339,592,146, being larger than any previous year. It is a noteworthy fact that the only years in all our history when the products of our manufactories sold abroad exceeded those bought abroad were 1898 and 1899. Government receipts from all sources for the fiscal year ended June 30, 1899, including $11,798,314.14, part payment of the Central Pacific Railroad indebtedness, aggregated $610,982,004.35. Customs receipts were $206,128,481.75, and those from internal revenue $273,437,161.51. For the fiscal year the expenditures were $700,093,564.02, leaving a deficit of $89,111,559.67. The Secretary of the Treasury estimates that the receipts for the current fiscal year will aggregate $640,958,112, and upon the basis of present appropriations the expenditures will aggregate $600,958,112, leaving a surplus of $40,000,000. For the fiscal year ended June 30, 1899, the internal-revenue receipts were increased about $100,000,000. The present gratifying strength of the Treasury is shown by the fact that on Dec. 1, 1899, the available cash balance was $278,004,837.72, of which $239,744,905.36 was in gold coin and bullion. The conditions of confidence which prevail throughout the country have brought gold into more general use, and customs receipts are now almost entirely paid in that coin. The strong position of the Treasury with respect to cash on hand and the favorable showing made by the revenues have made it possible for the Secretary of the Treasury to take action under the provisions of section 3694, Revised Statutes, relating to the sinking fund. Receipts exceeded expenditures for the first five months of the current fiscal year by $13,413,389.91, and, as mentioned above, the Secretary of the Treasury estimates that there will be a surplus of approximately $40,000,000 at the end of the year. Under such conditions it was deemed advisable and proper to resume compliance with the provisions of the sinking-fund law, which for eight years has not been done because of deficiencies in the revenues. The Treasury Department therefore offered to purchase during November $25,000,000 of the 5-per-cent. loan of 1904, or the 4-per-cent. funded loan of 1907, at the current market price. The amount offered and purchased during November was $18,408,600. The premium paid by the Government on such purchases was $2,263,521, and the net saving in interest was about $2,885,000. The success of this operation was sufficient to induce the Government to continue the offer to purchase bonds to and including the 23d day of December, instant, unless the remainder of the $25,000,000 called for should be presented in the meantime for redemption. Increased activity in industry, with its welcome attendant-a larger employment for labor at higher wages-gives to the body of the people a larger power to absorb the circulating medium. It is further true that year by year, with larger areas of land under cultivation, the increasing volume of agricultural products, cotton, corn, and wheat, calls for a larger volume of money supply. This is especially noticeable at the crop-harvesting and crop-moving period. In its earlier history the national banking act seemed to prove a reasonable avenue through which needful additions to the circulation could from time to time be made. Changing conditions have apparently rendered it now inoperative to that end. The high margin in bond securities required, resulting from large premiums which Government bonds command in the market, or the tax on note issues, or both operating together, appear to be the influences which impair its public utility. The attention of Congress is respectfully invited to this important matter with the view of ascertaining whether or not such reasonable modifications can be made in the national banking act as will render its service in the particulars here referred to more responsive to the people's needs. I again urge that national banks be authorized to organize with a capital of $25,000. I urgently recommend that to support the existing gold standard, and to maintain "the parity in value of the coins of the two metals (gold and silver) and the equal power of every dollar at all times in the market and in the payment of debts,” the Secretary of the Treasury be given additional power and charged with the duty to sell United States bonds and to employ such other effective means as may be necessary to these ends. The authority should include the power to sell bonds on long and short time, as conditions may require, and should provide for a rate of interest lower than that fixed by the act of Jan. 14, 1875. While there is now no commercial fright which withdraws gold from the Government, but, on the contrary, such widespread confidence that gold seeks the Treasury demanding paper money in exchange, yet the very situation points to the present as the most fitting time to make adequate provision to insure the continuance of the gold standard and of public confidence in the ability and purpose of the Government to meet all its obligations in the money which the civilized world recognizes as the best. The financial transactions of the Government are conducted upon a gold basis. We receive gold when we sell United States bonds, and use gold for their payment. We are maintaining the parity of all the money issued or coined by authority of the Government. We are doing these things with the means at hand. Happily at the present time we are not compelled to resort to loans to supply gold. It has been done in the past, however, and may have to be done in the future. It behooves us, therefore, to provide at once the best means to meet the emergency when it arises, and the best means are those which are the most certain and economical. Those now authorized have the virtue neither of directness nor economy. We have already eliminated one of the causes of our financial plight and embarrassment during the years 1893, 1894, 1895, and 1896. Our receipts now equal our expenditures; deficient revenues no longer create alarm. Let us remove the only remaining cause by conferring the full and necessary power on the Secretary of the Treasury and impose upon him the duty to uphold the present gold standard and preserve the coins of the two metals on a parity with each other, which is the repeatedly declared policy of the United States. In this connection I repeat my former recommendations that a portion of the gold holdings shall be placed in a trust fund from which greenbacks shall be redeemed upon presentation, but when once redeemed shall not thereafter be paid out except for gold. The value of an American merchant marine to the extension of our commercial trade and the strengthening of our power upon the sea invites the immediate action of the Congress. Our national development will be one-sided and unsatisfactory so long as the remarkable growth of our inland industries remains unaccompanied by progress on the seas. There is no lack of constitutional authority for legislation which shall give to the country maritime strength commensurate with its industrial achievements and with its rank among the nations of the earth. The past year has recorded exceptional activity in our shipyards, and the promises of continual prosperity in shipbuilding are abundant. Advanced legislation for the protection of our seamen has been enacted. Our coast trade, under regulations wisely framed at the beginning of the Government and since, shows results for the past fiscal year unequaled in our records or those of any other power. We shall fail to realize our opportunities, however, if we complacently regard only matters at home and blind ourselves to the necessity of securing our share in the valuable carrying trade of the world. Last year American vessels transported a smaller share of our exports and imports than during any former year in all our history, and the measure of our dependence upon foreign shipping was painfully manifested to our people. Without any choice of our own, but from necessity, the departments of the Government charged with military and naval operations in the East and West Indies had to obtain from foreign flags merchant vessels essential for those operations. The other great nations have not hesitated to adopt the required means to develop their shipping as a factor in national defense and as one of the surest and speediest means of obtaining for their producers a share in foreign markets. Like vigilance and effort on our part can not fail to improve our situation, which is regarded with humiliation at home and with surprise abroad. Even the seeming sacrifices, which at the beginning may be involved, will be offset later by more than equivalent gains. The expense is as nothing compared to the ad vantage to be achieved. The re-establishment of our merchant marine involves in a large measure our continued industrial progress and the exten sion of our commercial triumphs. I am satisfied the judgment of the country favors the policy of aid to our merchant marine, which will broaden our commerce and markets and upbuild our seacarrying capacity for the products of agriculture and manufacture; which, with the increase of our navy, mean more work and wages to our countrymen, as well as a safeguard to American interests in every part of the world. Combinations of capital organized into trusts to control the conditions of trade among our citi zens, to stifle competition, limit production, and determine the prices of products used and consumed by the people, are justly provoking public discussion, and should early claim the attention of the Congress. The Industrial Commission, created by the act of the Congress of June 18, 1898, has been engaged in extended hearings upon the disputed questions involved in the subject of combinations in restraint of trade and competition. They have not yet completed their investigation of this subject, and the conclusions and recommendations at which they may arrive are undetermined. The subject is one giving rise to many divergent views as to the nature and variety or cause and extent of the injuries to the public which may result from large combinations concentrating more or less numerous enterprises and establishments, which previously to the formation of the combination were carried on separately. It is universally conceded that combinations which engross or control the market of any particular kind of merchandise or commodity necessary to the general community, by suppressing natural and ordinary competition, whereby prices are unduly enhanced to the general consumer, are obnoxious not only to the common law, but also to the public welfare. There must be a remedy for the evils involved in such organizations. If the present law can be extended more certainly to control or check these monopolies or trusts, it should be done without delay. Whatever power the Congress possesses over this most important subject should be promptly ascertained and asserted. President Harrison, in his annual message of Dec. 3, 1889, says: "Earnest attention should be given by Congress to a consideration of the question how far the restraint of those combinations of capital commonly called 'trusts' is matter of Federal jurisdiction. When organized, as they often are, to crush out all healthy competition and to monopolize the production or sale of an article of commerce and general necessity, they are dangerous conspiracies against the public good, and should be made the subject of prohibitory and even penal legislation." An act to protect trade and commerce against unlawful restraints and monopolies was passed by Congress on the 2d of July, 1890. The provisions of this statute are comprehensive and stringent. It declares every contract or combination, in the form of a trust or otherwise, or conspiracy in the restraint of trade or commerce among the several States or with foreign nations, to be unlawful. It denominates as a criminal every person who makes any such contract or engages in any such combination or conspiracy, and provides a punishment by fine or imprisonment. It invests the several circuit courts of the United States with jurisdiction to prevent and restrain violations of the act, and makes it the duty of the several United States district attorneys, under the direction of the Attorney-General, to institute proceedings in equity to prevent and restrain such violations. It further confers upon any person who shall be injured in his business or property by any other person or corporation by reason of anything forbidden or declared to be unlawful by the act the power to sue therefor in any circuit court of the United States without respect to the amount in controversy, and to recover threefold the damages by him sustained and the costs of the suit, including reasonable attorney fees. It will be perceived that the act is aimed at every kind of combination in the nature of a trust or monopoly in restraint of interstate or international commerce. The prosecution by the United States of of fenses under the act of 1890 has been frequently resorted to in the Federal courts, and notable efforts in the restraint of interstate commerce, such as the Trans-Missouri Freight Association and the Joint Traffic Association, have been successfully opposed and suppressed. President Cleveland in his annual message of Dec. 7, 1896-more than six years subsequent to the enactment of this law-after stating the evils of these trust combinations, says: "Though Congress has attempted to deal with this matter by legislation, the laws passed for that purpose thus far have proved ineffective, not because of any lack of disposition or attempt to enforce them, but simply because the laws themselves as interpreted by the courts do not reach the difficulty. If the insufficiencies of existing laws can be remedied by further legislation, it should be done. The fact must be recognized, however, that all Federal legislation on this subject may fall short of its purpose because of inherent obstacles, and also because of the complex character of our governmental system, which, while making the Federal authority supreme within its sphere, has carefully limited that sphere by metes and bounds which can not be transgressed. The decision of our highest court on this precise question renders it quite doubtful whether the evils of trusts and monopolies can be adequately treated through Federal action, unless they seek directly and purposely to include in their objects transportation or intercourse between States or between the United States and foreign countries. "It does not follow, however, that this is the limit of the remedy that may be applied. Even though it may be found that Federal authority is not broad enough to fully reach the case, there can be no doubt of the power of the several States to act effectively in the premises, and there should be no reason to doubt their willingness to judiciously exercise such power." The State legislation to which President Cleveland looked for relief from the evils of trusts has failed to accomplish fully that object. This is probably due to a great extent to the fact that different States take different views as to the proper way to discriminate between evil and injurious combinations and those associations which are beneficial and necessary to the business prosperity of the country. The great diversity of treatment in different States arising from this cause and the intimate relations of all parts of the country to each other without regarding State lines in the conduct of business have made the enforcement of State laws difficult. It is apparent that uniformity of legislation upon this subject in the several States is much to be desired. It is to be hoped that such uniformity founded in a wise and just discrimination between what is injurious and what is useful and necessary in business operations may be obtained and that means may be found for the Congress within the limitations of its constitutional power so to supplement an effective code of State legislation as to make a complete system of laws throughout the United States adequate to compel a general observance of the salutary rules to which I have referred. The whole question is so important and farreaching that I am sure no part of it will be lightly considered, but every phase of it will have the studied deliberation of the Congress, resulting in wise and judicious action. A review of our relations with foreign states is presented with such recommendations as are deemed appropriate. The long-pending boundary dispute between the Argentine Republic and Chili was settled in March last by the award of an arbitral commission, on which the United States minister at Buenos Ayres served as umpire. Progress has been made toward the conclusion of a convention of extradition with the Argentine Republic. Having been advised and consented to by the United States Senate and ratified by Argentina, it only awaits the adjustment of some slight changes in the text before exchange. In my last annual message I adverted to the claim of the Austro-Hungarian Government for indemnity for the killing of certain Austrian and Hungarian subjects by the authorities of the State of Pennsylvania, at Lattimer, while suppressing an unlawful tumult of miners, Sept. 10, 1897. In view of the verdict of acquittal rendered by the court before which the sheriff and his deputies were tried for murder, and following the established doctrine that the Government may not be held accountable for injuries suffered by individuals at the hands of the public authorities while acting in the line of duty in suppressing disturbance of the public peace, this Government, after due consideration of the claim advanced by the Austro-Hungarian Government, was constrained to decline liability to indemnify the sufferers. It is gratifying to be able to announce that the Belgian Government has mitigated the restrictions on the importation of cattle from the United States, to which I referred in my last annual message. Having been invited by Belgium to participate in a congress, held at Brussels, to revise the provisions of the general act of July 2, 1890, for the repression of the African slave trade, to which the United States was a signatory party, this Government preferred not to be represented by a plenipotentiary, but reserved the right of accession to the result. Notable changes were made, those especially concerning this country being in the line of the increased restriction of the deleterious trade in spirituous liquors with the native tribes, which this Government has from the outset urgently advocated. The amended general act will be laid before the Senate, with a view to its advice and consent. Early in the year the peace of Bolivia was disturbed by a successful insurrection. The United States minister remained at his post, attending to the American interests in that quarter, and using besides his good offices for the protection of the interests of British subjects in the absence of their national representative. On the establishment of the new Government our minister was directed to enter into relations therewith. Gen. Pando was elected President of Bolivia on Oct. 23. Our representative has been instructed to use all permissible friendly endeavors to induce the Government of Bolivia to amend its marriage laws |
