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Document No. 5


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Introduction • . . . . • • • • • • . • • • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . .
Present organization of the Department........................ . ...........
Secretary of Commerce and Labor. . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . .
Chief clerk . . • • . . . . . . • . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . • .
Disbursing and appointment clerk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . .
Bureau of Corporationll . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . • . . . . . . . . . • . . . .
Bureau of Labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . •
Light-Houee Boanl.. .. . . .. . . . . . .. .. .. . ... . .. . . . . .. . . ... • .. . •. .. . . .•..
Bureau of the Censul! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . • . . • . .
Coast and Geodetic Survey. . • . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . .
Bureau of Statistics............. . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . .
Steamhoat-Inspection ~rvice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . ••. . . . •
Bureau of Fisheries ........................................... , . • . • • . .
Bureau of Navigation.................................................
Bureau of Immigration . . . . . . . . . . . . . . . . . . . . . . • . . • . • . . . . . • . . • • . • . . . . . . •
Bureau of Standards... . . . . . . . . . . . . . . . . . . . . . • . • . • . • . • . • • . . . • • . • . . • . • • .
Statement of expendituTell . . . . . . . . • . . . • . . . . . . . . . . . . . . . . . • . • • • . . • • . • . . • • • . .
F.stimatee..... . .......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . .
A Department building . . . . . . . . . . . . . . . . . . . . . . . • . . • . • • • • • . • . • • • . . . • • • • •
Legal 888istance . . . . . . . . . . . . . . . • . . . . . . . . . . . . • . • . • . • . • . . . . . • . • • • • • . • • • •
Special investigations.................. . ............................. .
Plans of organization . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . • • • • . . • . • • • . . . • • • •
PeTSOnnel.... • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . • . . • . . • . . • • • . • . • . • • .
Transfer of bureaus. . . . • . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . • . . . • • . • • • • . • •
Concentration of marine bureauR . . . . . . . . . . . . . . • . . . . . . . . . • . • . • • • • • • • • • •
Purchase of supplies ................... . ........ • .....• .-. . . • • • . . . . • • • •
Accounting • • • • . • • . . . • . . . . . . • . . . . . . . . . . . . . . . . . . . . • . . . . . • . • • • . . . . • • • . .
Telegraph and telephone service • . . . . . . . . . . . . . . . . . . . . . . . . . . . • . • . • • . . . .
Library............ . ............... . .................................
Department seal • • •• . . . • . . . . . . . . • . . . . . . . . . . . . . • . • • . . . • • . . • • • . • . . • • • ••
Statistical work • • . • • • • . • • . • • • . • . . . . • • . • • • • • . • • • • • . . . . . . . . . . . . • • • • • . . • . . • •
Cooperation with the Department of Agriculture.................... . ..
DMsion of foreiim tariffs . . . . . . . . . . . . . . . • • . . . . . . . . . • • . • • • . . . • • • • • • . . • •
Publications • • • • • • • • . . . • • . • • • • . . . . . . . . . . . . . . . . . . . . • • . . . . . • • • • • . • • • . . . . . • .
Character of reports • • . • • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . • . . • . • . . • . . • .
Printing of blanks and formll................................ .. . . . . . .. •
Bureaus of the Department. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . • • . . . . . . . . . . . .
Bureau of Manufactures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . • • • • • • • • . .
Bureau of CorporationR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . •
Bureau of Labor . . . . • • • • . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • .
The relations of lahor and 1•apital . . . . . . . . . . . . . . . . . . . . . . . • . . . • . . . . . . . . .
Light-Hoose Board......... . .. . .......... . ............................. .
Bureau of the Cenl!ns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • • . . . . . . • . . . . . . . . .
Coast and Geodetic Survey. . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . • . • • . . . . . . . . . . • .








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Bureau of Statistics ......•.................................. :.............
Steamboat-Inspection Service........................................ . ....
Bureau of Fisheries.......................................................
A national aquarium . • . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . .. . . .
Preservation of Alaskan salmon fisheries................ . . . . • • . . . . . . . . •
Commission to investiote Alaskan salmon fisheriel! . . • . . . . . . . . . . . . . . • . •
Duties of agents at Alaskan salmon fisheries.............. . ......... . ...
Results accomplished by agents . . . . . . • . • . • . • . . • . . . . . . . . . . . . . . . . . . . . . . .
Salmon pack of 1903........................ .. ............ . . . . . . . . . . . .
Transfer of Alaskan salmon agents to the Bureau of Fisheries . . . . . . . . . . .
Alaskan fur-seal service. . . • . • . . . . . • . • . . . . . . . . . . . . . . . • . • . . . . . . . . . . . . . . . . . . .
Duties of agents on the sea]jslands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Results accomplished hy agents . . . . . . . . . . . . . . . . . . . . . . . . • • • • • • . . . . . . . . .
Seal catch of 1903 • . • . . . . . . . . . . • . . . . . . • • . . • • . . . . . . . . . . . • • • . . • . • . . • . • • .
Bureau of Navigation • . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
American shipping in foreign trade....................................
Panama Canal...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capture of private property at sea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade with the Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Y easels of the Department... . . . . . . . . . . . . . • • • . . . . . . . . . . . . . . . . . . . . . . . . .
Bureau of Immigration . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Naturalization .... ~-.... . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bureau of Standards......................................................
Wireless telegraphy • . . • . • • • • • • • • • • • • • • • • • • . . • • • • • • • • • • • • • • • • • . • . . . . . . . . . •
Public improvements affecting rommerce . . . . •••••••••••••••• •• • . . . . . . . . . •.
Future of the Department................................................

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lfoshingtmi, IJecember 1, 1903.
l have the honor to 1mbmit herewith, for transmission to Congre11..~,
in accordance with the provisions of the organic act, the first annual
report of the Secretary of Commerce and Labor.
The act creating the Department of Commerce and Labor was
approved :F ebruary 14, 1903. Two days later the head of the Department was nominated by the President and confirmed by the Senate.
Through your courtesy, the Department wa8 established in the executive offices of the White House, where the first steps toward organization were taken. On March 17 temporary quarters were obtained for
the personal staff of the Secretary at No. 719 Thirteenth street NW.
On .June 16 the present office at No. 513 Fourteenth street NW. was
formally opened. Prior to July 1, 1903, the Secretary and his immediate assistants were employed piincipally in preparations for assembling without interruption to public business the various bureaus of
other Departments and independent branches of the Government
service to be transferred on that date to the new Department. During
this time the Secretary conferred informally with the heads of the
various bureaus ancl offices to be transferred concerning necessary or
desirable changes in methods of administration.
As early as Jone 1 it became apparent that several branches of the
Secretary's Office for which careful plans had been laid could not be
organized, owing to the la<"k of a sufficient appropriation. Such
organization has been accordingly held in abeyance, except in so far
L"I the requirements could be met aftR.r ,July 1 by details from the
transferred hureatL~.
On .July 1, 1903, the following office:,1, hm·oonll, dh•isions, 1md

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bnmche~ of the pnbli(· service became part'! of the Departnwnt of
Commerce and Lahor:
The Light-lloui<e Boanl.
The Light-Houlle Establii<hment.
The Steamboat-Inspection Service.
The Bureau of Navigation.
The United States Shipping Commif!f!ioneno.
The National Bureau of Standards.
The Coa11t and Geodetic Survey.
The CommU!l!ioner-General of Immigration.
The Commissioners of Immigration.
The Bureau of Immigration.
The Immigration Service at Large.
The Bureau of 8tatieti88.
The Census Office.
The Department of Labor.
The Fish Commission.
The Office of Commissioner of Fish and Fisherit>S.
The Bureau of Foreign Commerce.
The Alaskan Fur-Seal and Salmon Fisheriet'.

rhe Department organization already effected in part was:
The Secretary's office.
Chief clerk's office.
Disbursing and appointment clerk's office.
Solicitor's office ( through detail of ucting solicitor from the J)epartment of Just.ire).
Bureau of Corporations.

The personnel of the Department on that date comprised 10,125
employees, of which number 1,289 were on duty in Washington and
8,836 in the country at large. The appropriations to he expended
under the direction of the Department amounted to $H,7H6,847.
The act making appropriations for the Department contained the
following provision:
That the Secretary of the Treasury is hereby authorized and directed, as soon 88
may be practkable and before the fil'l!t day of July, nineteen hundred and three, to
transfer to the Department of Commer<'e and Labor all chiefs of division, assil:!tant
chiefs of division, !'lerks, me!!8engeffl, llll!!istant messengel'I!, watchmen, charwomen,
and laborers now employed in the divisions of his office who are wholly engaged
upon the work relating to the business of the bureaus and offices of the Treasury
Department transferre,l or to be transferred to the Department of Commer,~ nnd
Labor under the act of February fourtt>enth, ninet{.>en hundred and three ; and in
proportion to the number of penions in the divil!iorni of hi1:1 office whose time and
labor are partially devoted to the work of said bureami and oflict-R he l'.lhall trant1fer
approximately an (•quivalent number of clerks and other employee11 to ~id Department of Commerce and Lahor, and the appropriations made for the compensation of
all persons transferred hereunder Bhall be credited to and disbul'l!e(l by the Department of Commerce and Labor.

U oder thit1 provision there were transferred 3 clerks, 2 watchmen,
2 assistant messengers, 1 cahinetmnker, 3 lahoret"l<, and 7 charwomen.
The smallness of the initial appropriation~ rendered it impracticable,

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in the time between the creation of the Department and the next session
of Vongress, to do more than secure the t1ystematic arrangement and
roordination of the bureaus and branches brought together. It precluded, except in the most general way, the prosecution of new lines of
investigation or the development of new pla~ of administration. As
a Department dealing with commercial an~ industrial interests it has
recognized that the cooperation of such interests is essential to the
fulfillment of its purpose, and from the outset such cooperation has
been invited. The work of organization has progressed as rapidly as
was consistent with thoroughness and with the limitations above outlined. In no perfunctory spirit I acknowledge the faithful, unwavering assistance given to me by the members of my immediate staff in
the preliminary work of organization, and I include as deserving this
just recognition in an especial degree James R. Garfield, Commissioner
of Corporations, Frank H. Hitchcock, chief clerk of the Department,
and William L. Soleau, disbursing and appointment clerk. They have
been in the Department from its beginning and have had an active and
potential part in its organization.
Many of the ataff have worked aaily far beyond the usual office
hours. No one devoted to the interests of a private business could
have rendered more loyal service than have they in these early days
of the Department's life. They know how much the head of the
Department owes to th~ for their cooperation. He can only express
in this simple way his public recognition of the value of their services
and of the splendid example they have set of a high ideal of duty

The present organization may be indicated as follows:

The Secretary of Commerce and Labor is charged with the work of promoting
the commerce of the United States, and its mining, manufacturing, shipping, fishery,
transportation, and labor interests. His duties also comprise the investigation of
the organiation and management of corporations ( excepting railroads) engaged in
inten!tate commerce; the gathering and publication of information regarding labor
interests and labor controversies in this and other countries; the administration of
the Light-House Service, and the aid and protection to shipping thereby; the taking
of the census, and the col1ection and publication of statistical information connected
therewith; the making of coast and geodetic surveys; the col1ecting of statistics
relating to foreign and domestic commerce; the inspection of steamboats, and the
enforcement of Jaws relating thereto for the protection of life and property; the
mpen,'ision of the fisheries as administered by the Federal Government; the super~on and control of the Alaskan fur-seal, salmon, and other fisheries; the jurisdiction over merchant vessels, their registry, licensing, measurement, entry, clearance,
transfers, movement of their cargoes and pall!8ngers, and Jaws relating thereto, and
to seamen of the United States; the supervil!ion of the immigration of aliens, and
the enforcement of the Jaws relating thereto, and to the exclusion of Chinese; the
custody, construction, maintenan<--e, and application of standards of weights and
measurements; and the gathering and supplying of information regarding industries
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and markets for the fostering of manufacturing. He has power t.o <1lll upon other
Departments for statistical data obtained by them.
For the proper accomplishment of any or all of the aforcl!llitl work, it is hy law
providt--d that all dutie11 performed, and all the powers and authority possessed or
exercil't'd, at the daw of the creation of said Department, by th11 ht~l of any Executive Department in and over any hnreau, office, officer, board, branch, or division of
the public service traruderred to said Department, or any business arising therefrom
or pertaining theret.o, or in relation t.o the duties and authority conferred by law
upon such bureau, office, officer, board, branch, or ·division of the public service,
whether of appellate or advisory character or otherwise, are vested in and exerci!!ed
by the Secretary of Commerce and Labor.
It is hie further duty t.o make such special investigations and furnish such information to the President or Congress as may be required by them on the foregoing
subject-matters and to make annual reports to Congress upon the work of said

The chief clerk, under the immediate direction of the Secretary, has the general
supervision of the clerks and employees of the Department; the i;uperintendency of
all buildings occupied by the Department in Washington, D. C. ; the direction of the
watchmen, engineers, mechanics, firemen, laborers, and other employees connected
with the care and protection of the Department buildings; the care of the hol'l!e8,
wagons, and carriages employed; the expenditure of the appropriations for contingent
expenses, rents, and printing and binding; the receipt, distribution, and transmission of the mail; the custody of the records and files and library of the Secretary's
office; the answering of ca11s from Congress and elsewhere for copies of papers and
records; the duty of passing upon all appointment papers affe<'ling the personnel of
the Department; the enforcement of the general regulatiom1 of the Department, and
the charge of all business of the Secretary's office unassigned.

The disbursing and appointment clerk is charged with the custody and payment
of funds disbursed under the appropriations of the Department and with the preparation of all papers in the matter of appointments.

The Bureau of Corporations is authorized, under the direction of the Secretary of
Commerce and Labor, to investigate the organization, conduct, and management
of the business of any corporation, joint etock company, or corporate combination
engaged in interstate or foreign commerce, except common carriers subject t.o the
interstate-commerce act; t.o gather such information and data as will enable the
President to make recommendation to Congress for legislation for the regulation of
interstate and foreign commerce; to report the data so collected to the President
from time to time as he may require, and to make public such part of said information Ill! the President may direct.
~ is also the duty of the Bureau of Corporations, under the direction of the Secretary of Commerce and Labor, t.o gather, compile, publish, and supply useful information concerning corporations engaged in interstate or foreign commerce, including
corporationfl engaged in insurance.

The Bureau of Labor is charged with the duty of acquiring and diffusing among
the peoplt: of the United States useful information on subjects connected with labor
In the most general and comprehensive sense of that word, and especially upon its
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relations to capital, the hours of labor, the earnings of laboring men and women,
and the means of promoti~g their material, social, intellectual, and moral prosperity.
It i11 t>t'pecially charged to investigate the causes of and factB relating to all controversies and disputes hetwl!tln employers and employees as they may occur, and which
may happen to interfere with the welfare of the people of the several States.
It is also authorized, by act of March 2, 1895, to publish a bulletin on the condition
of labor in this and other countries, <.-ondensations of State and foreign labor reportB,
facts as to conditions of employment, and such other facts as may be deemed of
value to the industrial interests of the United States. This bulletin is iesued every
other month.
By section 76 of an act to provide a government for the Territory of Hawaii,
approved April 30, 1900, it is made the duty of the Bureau to collect and present in
annual reports statistical details relating to all departmentB of labor in the Territory
of Hawaii, especially those statistics which relate to the commercial, industrial, social,
educational, and sanitary condition of the laboring clasees.

The Light-House Board has charge, under the superintendence of the Secretary of
Commerre and Labor, of all administrative duties relating to the construction and
maintenance of light-hout1eS, light-vesl!els, light-house depotB, beacons, fog-signals,
buoys, and their appendages, and has charge of all records and property appertaining
to the Light-House F..stablishment.

The Bureau of the Census is charged with the duty of taking the periodical
cenSUBeS of the United States and of collecting such special statistics as are required
by Congress, including the collection in 190.5 of the statistics of manufacturing
establishmentB conducwd under the factory system, and the collection annually of
statistics of births and deaths in registration areas, statistics of the cotton production
of the country as returned by the ginners, and (by transfer from the Bureau of
l.abor) statistics of cities of 30,000 or more inhabitanb!.
Under the proclamation of the President dated September 30, 1902, the Bureau is
charged with the compilation and tabulation of the returns of the Philippine census,
taken as of March 2, 1903, under the direction of the Philippine Commission.

The Coast and Geodetic Survey is charged with the survey of the coasts of the
United States and coastB under the jurisqiction thereof and the publication of chartB
covering said coasts. This includes base measure, triangulation, topography, and
hydrography along said coastB; the survey of rivers to the head of tide-water or ship
navigation; deep-sea soundings, temperature, and current observations along said
C088U! and throughout the Gulf and Japan 11treams; magnetic observations and
researches, and the publication of maps showing the variations of terrestrial magnetism; gravity research; determination of heightB; the determination of geographic
positions by astronomic observations for latitude, longitude, and azimuth, and by
triangulation, to furnish reference point.I; for State surveys.
The resultB obtained are published in annual reports, with professional papers and
discw!Bions of resultB as appendiee<!; charb! upon various scales, including sailing
charts, general chartB of the coast, and harbor chartB; tide tables iBSued annually,
in advance; Coast Pilots, with sailing directions covering the navigable waters;
Notices to Mariners, iesued monthly and containing current information necessary
for safe navigation; catalogue! of chartB and publications, and such other special
publications as may be requirt.>d to carry out the organic law governing the Survey.
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The Bureau of Statistics collects and publishes the statistiCI! of our foreign commen,-e, embracing tables showing the imports and exports, respectively, by countries
and customs districts; the transit trade inward and outward by countries and by
customs districts; imported commodities warehoused, withdrawn from, and remaining in warehouse; the imports of merchandise entered for consumption, showing
quantity, value, rates of duty, and amounts of duty collected on each article or class
of articles; the inward and outward movement of tonnage in our foreign trade and
the countries whence entered and for which cleared, distinguishing the nationalities
of the foreign Vel!Bels.
The Bureau also collects and publishes information in regard to the leading commercial movemeqts in our internal commen-e, among which are the commerce of
the Great Lakes; the commercial mo,·ements at interior centers, at Atlantic, Gulf,
and Pacific seaports; shipments of coal and coke; ocean freight rates, etc.
The Bureau also publishes daily and monthly the reports received from United
States conmls and special reports on various mbjects supplied by conmls on special
requeRt; also, annually, the declared exports from foreign countries to the United
States furnished by coll8\lls, and the annual report laid before Congress, entitled
"Commerdal Relations of the United States." Prior to July 1, 1903, these reports
were published by the Bureau of Foreign Commerce of the Department of State.
This duty was transferred to the Bu~u of Statistics of the Department of Commerce
and Labor by the act of February 14, 1903, creating that Department.

The Steamboat-Inspe<>tion Service is charged with the duty of inspe<1ing steam
vessels, the licensing of the officers of Vel!Bels, and the administration of the laws
relating to such vessels and their officers for the protection of life and property.
The Supervising Inspector-General and the supervising inspectors constitute a
board that meets annually at Washington, and establishes regulations for carrying
out the provisions of the steamboat-inspection laws.

The·work of the Bureau of Fisheries comprises (1) the propagation of useful food
fishes, including lobsters, oysters, and other shellfish, and their distribution to suitable waters; (2) the inquiry int-0 the causes of decrease of food fishes in the lakes,
rivers, and coast waters of the United States, the study of the waters of the coast and
interior in the interest of fish culture, and the investigation of the fishing grounds
of the Atlantic, Gulf, and Pacific coasts, with the view of determining their food
resources and the developu1ent of the commercial fisheries; (3) the collection and
compilation of the statistics of the fisheries and the study of their methods and

The Bureau of Navigation is charged with general superintende'nceof the commercial marine and merchant i<eamen of the United States, ex<--ept so far as supervision
is lodged with other officel'I! of the Government. It is specially charged with the
decision of all questions relating to the issue of registen;, enrollments, and licenses of
vessels anti the filing of thot<e documents, with the supervision of laws relating to
the admeasurement, letters, aml numbers of vel'Sels, and with the final decision of
quei;tions conc,erning the collection and refund of tonnage taxes. It is empowered to
change the nanws of vessels, prepares annually a liflt of v1-'88els of the United States,
and reporti< annually t-0 the Secretary of Commerce and Labor the operations of the
laws relative to navigation.
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The Bureau of Immigration iM dutrged with the a1lministratio11 of the laws relating
to immigration am! of the Chinet<e e.xclusion laws. It supervil!l'S all expenditures
under the appropriations for "Expen!!et! of regulating immigration" and the "Enforcement of the Chinese exclusion ad." It causes alleged violations of the immigration, Chinese exclusion, and alien contract-labor laws to be investigated, and
when proi!eCution is deemed advisable submit.a evidence for that purpose to the proper
United Statee district attorney.

The fnnctions of the Bureau of Standards are Bil follows: The ctll!tody of the
standards; the compe.rison of the standards used in scientific investigations, engineering, manufacturing, commerl'e, and edu<'.ational institutions with the standards
adopted or recogni:r.ed by the Government; the construction, when necessary, of
standards, their multiples and subdivisions; the testing and calibration of standard
measuring apparatus; the solution of problems which arise in (,'Qnnection with standards; the determination of physical constant.a and properties of n1aterials, when such
data are of great importance to l!Cientific or manufacturing interests and are not to
be obtained of sufficient accuracy elsewhere. The Bureau is authorized to exercise
it.a functions for the Go,·ernment of the United States, for any State or municipal
government within the lJ"nited States, or for any l!Cientific society, educational institution, firm, corporation, or individual within the L"nited States engaged in manufacturing or other pursuit.a requiring the use of stamlardti or standard measuring
instrument.a. For all comparisons, <'&librations, tests, or investigations, except those
performed for the Government of the United States or State government.a, a reasonable fee will be charged.

An itemized statement of the expenditures from the contingent fund
of the Department of Commerce and Labor is transmitted to Congress in the usual form. The following summary t-1tatement shows
the appropriations for the support of the Department from
February 18, 1903 to .Tune 30, 1904, and the a.mount disbursed from
each appropriation from February 18, 1903 to June 30, 1903, the end
of the fiscal year:


l Amounts [


I J~~:io·

S&larlee. De~ent of Commerce &nd Labor, 1908 and 1904 •..•. 100, 000. 00 : Sl◄, 438. 73

~.~~.~~. ~~~~~~~~ ~.'. ~~".':~".':~.
Rent, Department of Commerce &nd Labor. 1903 and 1904 ..••.... ,


60,000.00 :

Conungent expe~ Department of Commerce &nd Labor, 1903 1
&nd 190! ................................................ . ........ 1 50,000.00
Total .............................. : ......................... : 226,000.00

~.arrled to
credit of


---SAA, 661. 27


2 58'2. 82

13, ◄17.18




The disbursements for the period from ,July 1, 1903 to September
30, 1903, inclusive, after the appropriations for all bureaus and offices
had become available, amounted to $58-l,B51.08, and were made from
43 different items of tLppropriation. These di8buri;ements are a fair
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index to the increase in the business of the new Department after
,July 1, 1H03, on at•t·ount of the transferred from the Tt·easury
and other Departments of the Government.

The estimates for the Department represent actual needs. They
were submitted after the fullest consideration and as a result of
repeated conferences with those qualified to furnish information regarding the various matters to which reference is made.
It is fair to assume that Congress, in establishing the Department,
contemplated not only the grouping together of certain bureaus then
existing and the organization of the new bureaus and offices provided
for, but also their proper consolidation and readjlli!tment, to the end
that the entire Department, when fully organized, should by expansion into the new field it was created to occupy accomplish all the
purposes named in the organic act. Merely to appropriate 11. sufficient
sum for the administration of the several bureaus transferred on
July 1, and for a skeleton organization of the new bureaus, would fall
far short of meeting those purposes. If the Department is to realize
in any considerable degree the expectations of the framers of the
legislation creating it and of the great interests it is expected to
cooperate with and advance, it must have adequate appropriations.
The act establishing the Department we.'! passed late in the last regular
session of Congress, and it was impossible to give full consideration to
it-; needs. I mo:'!t earnt>stly recommend that the Department be now
equipped to do properly and effectiveiy its important work.

lJ nder date of Fchruary 23, 1903, I addressed a communication to
the Secretary of the Trcnsury for transmission to Congress, submitting an estimate for an appropriation for the construction of a building
for. the Department. I respectfully invite attention again to that
communication and reproduc·e it herewith:

lV11~1ti11gtn11, February :tS, 1908.
81R: I have the honor to request that the following estimate for the construction

of a suitnhle building for the Department of Commerce and Labor be transmitted to

At the beginning of the coming fisml year the Dt•partment of Commerce and Labor
will <'onsist. of twelve organization!!, transferred to it from other branches of the put,..
lie service, two new burea1111, and the office proper of the Secretary-in all, fifteen
organized offices. Thei!e offiees will be housed, under present arrangements, in ten
or more different huildings. The Censu8 Office is on B street, between First and
Se<"ond street!! NW.; the Coast and Geodetic Survey is on New Jersey avenue, near .
B 11trcct 8E.; the Rnr<'an of Foreiirn Commerce i,. in the State, War, and Navy building. &•tween thei,,e limits of about a mile and a half east and west, and about oneDigitized by

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third of a mile north and south, are distributed the remaining organizations of the
The Light-House Board and the Bureau of Xavigation an• at i19-721 Thirteenth
street NW.; the National Bureau of Standards on New Jersey avenue, near B street
SE.; the Immigration Bureau, the Steamboat-Inspection Service, and the Alaska
Seal and Salmon Fisheries in the Treasury Building; the Commil!l!ion of Fish and
Fisheries at Sixth and B streets SW.; the Department of Labor at Fifteenth street
and New York avenue NW.; and the Bureau of Statistics at 1333 F street NW.
Qoarteni for the office of the Secretary of Commerce anrl Labor and for the new
BureaUB of Manufactures and Corporations have not yet been l'hOl!8n. The delay,
inconv"nienoe, and expense in the transaction of daily bnsinel!I! by so scattered an
organi7.lltion will be evident at once both to Congrel!I! and to the commercial and
industrial interests of the country.
The annual rent during the current fiscal year for only four of these organizations
(Department of Labor, Census Office, Bureau of Statistiri;, and Light-House Board}
amounts to $44,544. Rented quarters are now provided, or l!OOn must be provided,
for nine of the remaining organizations in the Department of Commerce and Labor.
On July 1, the Department of Commerce and Labor will employ in the city of
Washington about 1,800 men and women. The precil!(• number can not he stated
until the new bureaue have been organized.
The present needs of the new Department bani bt•en briefly mentiom-d in order
to show the importance of early action by Congrei;s to supply them. In any project
for the bnilding which Congress may approve it is earnestly recommended that provision be made for the future growth of the Department, which will accompany the
development of the commerce and industry of the lJnited States.
The site to be eecured should not only suffice for the structure required to house
under one roof the branches of the public service to be assembled in July under the
~tary of Commerce and Labor, but shoulrl be ample for extensions of the edifice
from time to time, in harmony with original plan", and with requiremen™ of the
increasing artistic sense of the people. Tht> building for the I)(>partment of Commerce and Labor at the national capital, it is flllggt'sted, should be so planned in
advance as to be not inferior in convenience or beauty to the structures which commercial and financial inRtitutions in the great centers of American trade are erecting
for the transaction of their daily bnsin81'8. It ~hould be dl'8igned on a ecale large
eQough to provide for the reasonable growth for Mme years to come of the various
branches of the public service compri11ing at the outset the Department, and to supply
quarters for such other branches of the service as by creation or transfer may hereafter be brought under its jurisdktion.
It should have at least one hall suitable for conferences or Congresses, international or national, which, by invitation of the Government of the United States,
have met in this country in the past, and doubtlel!I! hereafter will I\M!Cmble frequently
at Wlll!hington. To secure light and ventilation, inner courb! open to the sky are
neceiary. The editke should he fireproof.
Such a department huilding is needed to meet the requirements of progressive
husine&1 methods. It is needed to give adequate expreRSion to the country's advance
in the art of architecture. It is a proper part of any general project to render more
beautiful the national r.apital. It is in the line, furthermore, of true economy
The TreaRUry building cORt $i,2S0,540, but is already inailc<111at..• for the needs of
that Department, whil'l1 thiH year, a('<'onling to the estimah'>', will t<pcnd $18,894 in
l't'nt8 for outside office11. The f-;tah•, War and :N"avy hnil<linit <'of't.$10,0il,916, hut the
Departmenb! it honl!ffl will thiH yt•ar Hpend $25,260 for rent(>(! offic'<"', and n.wre offices
mUBt be eecurecl for the roming fiscal year. The I'ah•nt Offi,·t• cost $:~,6.'l2,705,
but this year the Interior Department will be required to six•111l $80,680 for rent~!
buildilljES (includinar $26,680 for the Census Office, transferred to the Dcpartwent of

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Commerce and Labor). The new Poet-Office cost $3,305,490, but from the beginning
was inadequate for the Post-Office Department, which this year will spend $36,406
for rented offices.
Probably none of the Department buildings mentioned could be enlarged without
a departure from original plans so radical as to destroy its symmetry and thus to
forbid such enlargement. Had the growth of the bUBiness of the country and of
these Departments been foreseen, doubtless at the outset larger sites and different
plans would have been provided. On the other hand, in the case of the Capitol,
built and extended for $17,071,849, increased accommodations in consonance with
original plans at a c011t of ahout $6,000,000 are now proposed. In the caBe of the
Library of Congress, recently completed at a cost of $6,920,081, such extensions are
alllo possible.
I earnestly recommend, therefore, that Congress provide for the construction of a
building for the Department of Commerce and Labor to coRt, exclusive of the site,
the sum of $7,000,000.
Very respectfully,

Interest here att.aches to the following statement of rent.als of the
Department of Commerce and Labor for the fiscal year 1904:
Appropriated March 3, 1903:
Rents, Department of Commerce and Labor, 1903 and

1904................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16, 000. 00
Expended to June 30, 1903............................


Balance available July 1, 1903 •............................• $13,417.18
Transferred July 1, 1903, from the Treasury Department, and from other
From the Treasury Department, for bureaus transferred ...•.......•
For No. 235 New Jersey avenue SE., !or use of the of Stand•
ards ...................... ................................... .
For the building occupied by the Bureau of Labor ................ .
For the building occupied by the Bureau of the Cell8\1R •••••••••••• 26,600.00
Total appropriationll available July 1, 1903........... . . . . . . .

59,247. 18

The rentals chargeable against the above appropriation for the fiscal
year ending June 30, 1904, are as follows:

For what p u ~ uacd.

Location of building.

---- -------------1-- · Wllll\rd Building, 613-516 Fourtl'(•nth Htr«:>Ct NW ...
Emt•ry Building, northwest corner F!rst and B
Mtr«:>Ct• NW.
. • .I
Natlonnl Safe l)(•pos1t Bnilrlmg. <"Omer New): ork ,
nvc-nue and Flftcc-nth stn•i,t (In part).
Builders' Exchange Building. 719-721 Thirteenth
street NW. (In part).

Main building of Department........
Bureau of the Ccnsn•. ...•.. .•.... •..
Rnrcnu of Lnbor ................•...•.




6, 7/iO.OO

Llgbt.Honae Roan\. Stramboat-In• 1
R(>l'Pllon Service, Bureau of Navl•
A<lamM Bull<llng. 1333-133., F •Ired NW. (In part) . I Blll"l'Bll of Statistic• . . . . . . . . . . . . . . . . . .
4,539. 114
235 Nc-w Jenoey avenue NW .•..... ... ..........••.. 1 Rurean of Stan<lards (Laboratory) .. • 1_ _840.00
Total for the fl•eal r<'nrc-nrling June .. . ... .. ... . ........ . . .. ...•••......••••




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For the fiscal year beginning July 1, 1904, the estimate for rents
for the entire Department is 175,000, the increase being due to an
estimate of 110,000 made by the Director of the Census. A small
emergency estimate is also submitted for additional funds to be available should further accommodations be required.

The estimates provide for a solicitor and several assistants. Many
contracts, some of them involving large sums of money, are entered
into by the Department in the. daily course of business. That the
interests of the Government may be carefully guarded, these contracts
should be scrutinized in every instance by competent law officials.
Aside from the matter of contracts, legal ability of the highest
order is constantly needed in the interpretation and execution of
the numerous laws that affect the operations of the Department. As
a measure of economy, and frequently also as a matter of justice, it is
important that these laws and the various regulations punmant thereto
should be construed in such manner as to leave no doubt of their proper
To meet the present requirements of the Department in the way of
legal assistance an officer of the Department of Justice has been
detailed to act as solicitor, but this arrangement is merely temporary.
A definite appropriation is strongly recommended in order that the
Department may be able to employ its own solicitor and provide the
needed assistants. CILSes frequently arise involving questions of law
that require immediate decision, and it is desirable in such im1tances to
have efficient legal assistance within easy reach. The delay that necessarily accompanies the reference of legal questions to law officers outside of the Department and not subject to its authority often impedes
the transaction of public business. The advantages that would accrue
to the Department from the creation of a solicitor'1,1 office under its
immediate control are manifest, and it is hoped that the necessary
appropriation will be granted.

Provision is made in the estimates for an appropriation to be expended
under the immediate direction of the Secretary for the investigation of
trade conditions at home and abroad, with the object of promoting the
domestic and foreign commerce of the United States, and for other
purposes. Important instruments in the promotion of trade are the
agents dispatched from time to time hy foreign governments to ~tudy
commercial opportunities in other countries. Military and naval
experts are sent abroad by our Government to report on conditions
that ar" of interest to their respective Departments. In the daily competition of international trade there is even greater need of intelligent

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outposts abroad. Special agents are also required in the Department
itself to inspect the branches of its services in different localities and
to secure uniform, businesslike, and economical methods. The need
of such agents in other department:8 has been met by appropriations,
and there is of course a similar need in this Department.

The determination of those responsible for the organization . and
administration of the Department to lay its foundations on broad lines
and to build thoroughly and conservatively for the future has been very
generally understood. In but few instances has there been any criticism of this course, and then only from those unfamiliar with the
magnitude of the task of organizing a new department or unmindful of the necessity of making liberal provision for its growth and
usefulness. It would have been a dereliction of duty, even in the face
of a pronounced demand for immediate action in certain directions,
to sacrifice the essentials of sound organization to a desire to make
an early showing or to achieve immediate result.'i from ill-considered
and ill-timed investigations. The care that has been exercised in the
details of organization and the conservatism that has marked the
Department's course during the brief period of its existence have been
amply justified. It is well to repeat that the act creating the Department received the approval of the President on February H, 1903;
that the first Secretary of the Department was appointed two days
later; that until July 1 only elementary details of organization could
he considered; that on July 1, by the transfer of hureame1, the Department became the fourth largest of the several executive establishments, and that from that date to the date of thit1 report but five
months have elapsed.

Organization under initial appropriations and the estimates for the
future have heen haired on the belief that better work can he obtained
from a relatively small clerical force, composed of competent
employees paid salaries commensurate with the work done, than from
a larger force overpaid in the earlier years of service and underpaid
after capacity for intelligent work has been shown. Every competent
ohser,·er of administrative methods at ashington will, I think, agree
that there are many instances where the pay is much higher than in
corresponding private employment. the foree at times is larger than
(·an be used advantageously, and not infreq1wntly incretl."!ed compensation eomes to he regarded as a ncce:-1i-1u·y inoident to service rather
than as a just measun~ of the worth of serviee. lligh-gmdo clerkt'l
command good salaries in pdvatc husinesi-, and the Government can
not, and, in fact, does not, retain such in its employ except by paying






equally good salaries. To the Department of Commerce and Labor
in its relations to the business community this principle applies with
peculiar force.
The civil service regulations have been observed in every detail from
the establishment of the Department. Appointments have been made,
and will be made, strictly upon merit, whether under the civil service
requirements or in cas~s exempt from such requirements. Upon no
other l>asis can such a Department be conducted so as to meet satisfactorily the demands that will be made upon it.
Among other measures required to realize this high standard the
Departmental files must be conclusive, and the papers in all ca.'les must
disclose the conditions that warranted the action taken. As far as
practicable I desire to do away with confidential files. They are often
the resort of the blackguard and the blackmailer. Only such files
should be held confidential as the law requires or public considerations
demand. Every official document in the Department, whether it relate
to appointments, contracts,. or other subjects, should be acce1:1sihle to
authorized inspection and should afford a full and satisfactory answer
to every proper inquiry.

The Department has been created for certain general purposes,
1-Jtated in the organic act. To enable it to carry out some of these purposes bureaus of other Departments and offices existing independently
were transferred to it at the beginning of the current fiscal year.
Further rearrangement of bureaus and offices amoug the several Departments should in due season be made if these purposes are to be attained
in the simplest and most direct fashion. The Department of Commerce
and IA.bor does not seek growth by the absorption of duties now
assigned elsewhere. If, in the opinion of the President, howe,·er, or
of Congress, as the law may provide, the transfer of bureaus and
offices to this Department seem1:1 to promise a more efficient administration of public affairs, such tran1:1fers will be welcomed. On the
other hand, if experience plainly shows that certain duties now allotted
to this Department can he better performed under a different control
the transfer of such duties will be promptly recommended. The
names of the great depa.1tments of government indicate clearly the
division of l.<'edera.l machinery that hns been regarded as best adapted
to efficient administration. The creation of a new executive esta.b·
lishment, charged with the administration of laws that fix the relations of the Federal Government with the business and industrial
affairs of the country, should involve the ultimate transfer to it of
various duties, which, in the absence of such an establishment, have
been performed under the direction of officets <>hosen primarily for
purposes altogether different.

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When the transferred bureaus were brought together under this
Department, me.ny questions e.rose which required not only a definition of their relations to their new conditions, but in a number of
cases a determination of jurisdiction as between the Department of
Commerce and Labor and the Departments from which the transfers
were made. To remove uncertainty, opinions were obtained from the
Attorney-ueneral for the guidance of all conc~rned. These opinions
form a valuable body of authority, and have enabled the organization of the Department to proceed on lines that make for efficient
and business-like administration.
Under the Department's plan of organization every opportunity will
be afforded for the development in the largest degree of its various
bureaus, and the chiefs will be given the greatest latitude and authority
consistent with proper supervision by the Secretary. The bureaus will
be expected,Jiowever, to keep in view the interests of the Department
as a whole, and to work together loyally and harmoniously for the general good. In the many affairs concerning more than one office, in the
matter of disbursements, appointment".!, and other features involving
the general policy of the Department, the immediate responsibility for
action will rest with the head of the Department.
At the very beginning of the work of organization embarra.<Jsment
was occasioned by the inappropriate names of some of the bureaus and
by an illogical assignment of duties. As rapidly as it has been thought
advisable to make changes in these regards they have been made.
While there has been dedded progress in these directions, much still
remains to he done, dependent upon such rearrangement of work as
experience may show to be wise. At present an anomalous situation
exists in regard to the designation of the Bureau of the Census, the
Bureau of Statistics, and the new Bureau of Manufactures. In both
the Bure,au of the Census and the Bureau of Statistics considerable
work is now performed on some of the lines indicated for the Bureau
of Manufactures. The name Bureau of Statistics does not properly
describe the functions of the.t Bureau. The ultimate purpose is to
have the various subdivisions of the Department so designated and
such RSsignments made · to them as will give public notice of their
duties and bring about greater uniformity and efficiency.

The Light-House Establishment, Bureau of Navigation, SteamboatInspection Service, Coast and Geodetic Survey, Bureau of Fisheries,
and Alaskan Fisheries Service have already been transferred specifically to the Department. Various duties relating to marine affairs,
as the regulation of anchorages, regatta:,1, hoarding of vessels, and the
enforcement of the St. Mar_ys River rules, have also been assigned
to tho Department. The debates in Congress disclose the purpose to
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give the Department general jurisdiction over all matters relating to
merchant shipping. While each of the marine !lervices now in existence has its specific duties, there are various points at which the work
of one touches or affect.~ another. In such matters, the best results
can be obtained only by joint action or by the exercise of an immediate
and constant supervision over all. Two plans have been considered,
the first to establish a marine board composed of the heads of all the
bureaus concerned in marine affairs, the second to designate one officer
of higher rank than a bureau chief as the supervisory authority, under
the Secretary.
While committees and boards are useful in legislative and deliberative affairs, competent students of government are a.greed that in the
administration and execution of laws the most satisfactory results can
be obtained by fixed responsibility in one competent head. This will
be the principle adopted wherever possible in the administration of
the branches of the Department. There is a natural division between
marine affairs and land affairs. The appointment of an assistant secretary of the Department will permit a concentration of control over
marine affairs in a bureau of marine affairs, from which satisfactory
results are anticipated.

The purchase of supplies for the Department and its various services
ha.'I been carefully studied. A more businesslike method of buying
is being introduced, and it is believed that a substantial saving in this
direction can be accomplished. The plan of contracting for supplies
in sufficient quantities to meet the requirements of the entir~ Department will be followed wherever practicable, in order to obtain more
favorable prices than can be had where the bureaus purchase separately. In order to carrY. out the plans with regard to purchasing, the
various contingent funds of the bureaus, except so far as they provide
for supplies that are purely technical-such as scientific instruments
and apparatus-should be consolidated into a single fund to be controlled by the Secretary's Office. The creation of a general contingent
fund in accordance with this plan will enahle the Department to purchase supplies in a more systematic Rnd economical manner and under
a uniform method of accounting.

Steps hRve been taken to systematize the methods of accountmg
employed in the several bureaus in order to bring them into harmony
with each other and to reduce as far as possible the large amount of
work that is involved in the adjustment of the accounts, to preYent
delay in the settlement of accounts, and to avoid merely perfunctory


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The manner of accounting for the expenditure of the various appro
priations provided for the Department and its various services is being
carefully studied with the object of still further !!8.feguarding the
disbursement of public funds.

The Department bas been equipped with an efficient telegraph and
telephone service. As this service is in operation by night as well as
by day, time and expense are saved in dispatching the business that
has to be conducted by wire. The existence of a night service distributes work in such manner that it can be conducted with greater
accuracy and with the least possible delay. The telephone equipment
is also fully justified, for at the average department rates the pay of
one messenger is about equal to the rental of 28 telephones.
There will be increasing demands upon this service. Agents in the
field, whether engaged in investigations at home or abroad, will have
frequent occasion to use these facilitie!I, and it would hardly seem
necessary to urge the importance of a thoroughly trained and efficient
force of this kind for duty both day and night in a branch of the Government devoted to commerce and industry.
While existing laws do not permit the introdn<'tion of certain modern appliances, the Department has from it."' organization made use
of such as were available. The best tools are the cheapest. The
Department's equipment of mechanical appliances must be at least
equal in quality to the equipment of the best private business .establishment, if Government work is to be done as promptly and economically as private work.

There are about 90,000 volumes in the various bureau librariet1. The
collections are devoted wholly to the special needs of the bureaus, and
are, for the most part, technical or scientific. The Light-House Establishment has, in addition to its office library, a circulating library of
about 50,000 volumes, composed of standard and current literature.
This collection is kept in circulation among the Jight-houses, thus
affording to the light-house keepers opportunities for study and recreation they could not otherwise have, owing to their isolation.
It is intended to coordinate all library work and centraJize it under
a departmental Jihrarian as far as may be consistent with the special
needs of the different huream~. Each bureau will have a thoroughly
equipped working library, systematically classified. From the .central departmental lihrary full information can he obtained about all
bureau collections and in regard to special subjects relating to the
work of the Department.
The Department is cooperating with the Library of, and
will use, as far as possible, its resources.
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This method of organization will promote economy, reduce to a
minimum duplication of material, and make immediately available to
every branch of the Department the material at i~ command.

An appropriate seal has heen adopted and regulations promulgated
to 80Cure a uniform and consistent use of it throughout the Department. Each bureau has been provided with a seal similar in design
to the great sea) of the_ Department., and the use of various seals of
dissimilar patterns has been discontinued.

One of the most important branches of the Department's work is
that of statistics. By the organic act this new Executive establishment
is made the statistical department of the Government. On May 15,
1903, a commit1Sion on statistical work was appointed for the purposes outlined in the following letter:



Wcuhingum, May 15, 19tM.
ltv DBAR S1R: Section 4 of the act to establish the Department of Commerce and
1.abor provides that "the Secretary of Commerce and Labor shall have control of
the wort of gathering and distributing statistical information naturally relating to
the subjects confided to his Department; and the Secretary of Commerce and Labor
is hereby given the power and authority to rearrange the statistical work of the
bureaus and offices confided to said Department, and to consolidate any of the statistical bureaus and offices transferred to said Department; and said Secretary shall
also have authority to call upon other departments of the Government for statistical data and reeults obtained by them; and said Secretary of Commerce and Labor
may collate, arrange, and publish su<'h statistieal information so obtained in such
manner as to him may seem wise.
I have acquainted the heads of the Departments and of the several bureaus and
offices concerned with mi desire to appoint a commiBBion to assist me in earrying
out theae provisions of law and other features of the organic act in any way relating
to them, and have received their assent to the appointment of the commission in
advance of the actual transfer of some of the bureaus and offices. I have therefore
appointed the following commilll!ion:
Mr. Carroll D. Wright, Commil!Bioner of Labor, chairman.
Mr. 8. N. D. North, Census Offire, vice-chairman.
Mr. Jamee R. Garfield, Commilll!ioner of Corporations.
Mr. 0. H. TittnUIJlD, Superintendent Coast and Geodetic Survey.
Mr. George M. Bowers, Commissioner of Fish and Fisheries.
Mr. F. P. Sargent, CommiSBioner-General of Immigration.
Mr. O. P. Austin, Chief of the Bureau of Statistics.
Mr. Frank H. Hitchcock, chief clerk, Department of Commerce and Labor, secretary.
It will be tlle duty of this commiBBion to investigate and report, for the consideration of the Secretary, what rearrangement, hy transfer or otherwiAe, in the work
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now ll>'><ig1wd hy law to any of thE'ioe hnreaus and offi1'<'f! will re1mlt in an i111provt>111e11t 0£ tht> Hervi1'<•; what fil'ld work, if any, now heing , .. ,n,lnl'lt~l hy any b11rea1111
or oflkes, can Ix• 1'<msoli,lated or ,liicpensed with; what reportt<, if any, now published,
can be consolidated or dii;pent!t'd with, with a view to the elimination ot any duplication now exi1,1ting in the work of these bureaus; to define clearly the field and
func-tiona of each bureau or office in 11uch manner that no one shall encroat·h at any
point upon any other; and generally to make such recommendations 88 may <"<>mmend themselves to the commi11Sion £or the orderly and scientific readjustment 0£
the work of the several bureau!! and offices of the Department of Commerce and
The report of the commis11ion may he made from time to time, upon separate
b_ranl'hes of the investigation, if desired; but its final report l'hould be submitted at
the earliest practicable date.
It would greatly facilitate the proper organization of the Dtlpartment if the commission were to meet at an early date, 88 it might then be possible to accomplish
substantial results before July I.
\'ery truly yours,
Gli10. R. CoRTELYou,

The Commission has made a careful Htudy of the various lines of
statistical work carried on by the several bureaus, and has recommended certain changes in the way of readjustment and consolidation
that it iiJ believed will increase the efficien<·y of this work.
The Department aimH to furnish the busine8s world with more
prompt, more complete, and more reliable 1,1tatistical reports upon the
various subjects of commercial and industrial interest. Special effort,are being made to extend its facilities for supplying foreign trade
information, and more active assistance will he required from the consular service. The relation of this service to the new Department is
one of its pressing problems, which in the immediate future must be
the subject of administrative as well as legislative com1idcration.
Essentially commercial officers, they should play a vital part in the
extension of our foreign trade. By careful supervision, and timely
and helpful suggestions, reports of a more practical nature, and of
greater usefulness to our exporters, than many of those hitherto furnished can be obtained.

In planning measures for the development of American commerce it
is the purpose of the Department to devote itself impartially to the
various interests concerned in that development. All possible menns
will be employed for the extension of our export trade in products of
the farm as well ns in manufn<'tured articles. "'herever possible the
cooperation of the Depnrtment of Agrieulture will he sought, in order
thnt thPse two bran<'hes of the Oo\·ernment :-ervin1 may work together
for the bt•nefit of the American farmer. It i,- highly important that
the active measures tu.ken by the Agricultural Department to incn•at1e
the productidty of our farms :-hould he supplcmentt•d in every possible way by effort.-; to provide 11 protitahle market for their produce.
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In addition to the measures that have been taken for the reorganization and improvement of existing branches of the statistical service,
it is proposed to establish an offil--e for the collection and distribution
of foreign-tariff information, this being one of the directions in which
the Department's work can apparently be extended with great advantage. The estimates propose an appropriation of $9,220 for a division
of foreign tariff's.
Nations are inclined to regulate their commercial intercourse by
means of a double system of tariffs, permitting preferences through
commercial treaties. The current agitation in Great Britain for a
departure from traditional policy in order to increase commerce between the members of the British Empire may have marked effects
upon American trade and incidentally upon American labor.
The industrial and economic facts which a~company such movements
must be closely, intelligently, and unremittingly watched. A few
competent employees, acting directly under the head of the Department, will suffice for this purpose. From the small expenditure proposed excellent results may be obtained. There is at present no Government office in the United States engaged systematically in the work
of collecting information regarding foreign tariffs and making• that
information available to our exporters. The Department has received
frequent inquiries for such information and has been impressed with
the importance of providing an agency to supply it.

An eff'ort is being made to secure a prompter issue of the Department'!! publications without impairing their accuracy. The value of
Government documents depends essentially on their presentation of
current conditions, rather than the reproduction of facts and figures
with which an energetic country is already acquainted. Bulletins
containing the rulings, regulations, and notices of the Department,
and aliro statistical and other information of immediate interest to the
public, will be issued with the least possible delay.
Among the more comprehensive publications now in course of
preparation, and soon to be issued, is a history of the Department,
including I\ compilation of the laws with the administration of which,
directly or indirectly, it is charged. The Bureau of Corporations is
also preparing several publications that will undoubtedly be serviceable to Congress and to those concerned in the special work of the

The Department was not established to control the energies of the
people. By furnishing them with needed information it can help
int.elligence and self-reliance to put forth efforts in trade with the best
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result.-i. Thh1 will he one of it.~ chief aims. Conditiom1 exactly as they found will he shown in 1t tnw and impartial light. Statements of
facts and statistics issued by this Department will he nonpartisan, not
only in the usual political sense of the word, but in the broader sense
of freedom from the bias of preconceived theorit>H or of predilections
toward or against .individuals, associations, or organizations. By
carrying out this policy the various brooches of the Department acting
a.s a single organization can render far greater services to labor and to
ca.pita.I than could be had -from independent offices specifically devoted
to particular interest.'!. The facts of modern industrial and commercial life are too intricate and interdependent to be fairly stated even
by the impartial specialist if regarded from a single point of view.
While the responsible officers of the Department would fall short of
their duty if they failed to state their conclusions in exact accordance
with information obtained, and to make fearlessly the recommendations
demanded, the information itself must be so fully and fairly set forth
as to carry conviction of the accuracy of such conclusions, or to permit
ready demonstration of error, if such has been
A commission has been appointed within the Department to revise
statistical methods. Lack of coordination and harmony has hitherto
led to confusion, duplication, omission, and other errors in results,
and to extravagance in administration. Improved methods will be
introduced as rapidly as practicable.

The printing of the vast number of blanks and forms required is
another problem to which careful thought has been gh'en. Under the
present conditions the cost of such printing is believed to be unnecessarily high. This expense can be reduced and at the same time the
business of the Department facilitated by a judicious consolidation and
elimination of many blanks. An improved method of handling blanks
and of distributing them to the numerous officials of the Department
stationed throughout the country is being introduced with the object
of securing a speedier and more accurate service. The distributing
agencies of the several bureaus are being consolidated into a single
organization, with great advantage to the work.

The bureaus and offices transferred from other Departments on July
1 have, as a r1.1le, made their annual reports for the past fiscal year to
the heads of the Departments with which they were formerly connected. Recommendations for the current fiscal year, however, have
been made by several of these bureaus and offices in reports to this
Department. Such study as I have been able to give to these reports
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and to the general methods of the tt-ansferred bureaus convinces me
that legi8lation will he desirable in a number of instances; but it is
usually wise to await the experience gained in the execution of existing law before recommending additional legislation. If practicable,
8pecific recommendations on these matters will be during the
coming seSHion of Congres:i. I respectfully invite attention to the
reports of the several bureaus printed separately.

The organization of the Bureau of Manufactures has been necessarily postponed in the absence of adequate appropriations. No time
has been lost, however, as the work of this Bureau in some respects
will resem hie certain phases of the present duties of the Bureau of the
Census and the Bureau of Statistics. Some readjustment of work will
be required to secure the best results from these branches of the service, and the plans for redistribution of duties have not yet been fully
formulated. These plans, however, will be ready as soon as Congress
shall have provided the funds with which to organize a new bureau.
U oder present conditions any work assigned t.o it could be carried on
only by the detail of clerks from other branches of the Department,
and no clerks are available for that purpose.

It is the duty of the Bureau of Corporations to gather information
on the subject (}f interstate and foreign commerce, to investigate the
organization, conduct, and management of corporations and joint stock
companies engaged in such commerce (other than common carriers
subject to the jurisdiction of the Interstate Commerce Commission),
t.o report the results of such investigations to the President through
the Secretary of Commerce and Labor, and to compile and publish
useful information concerning corporations engaged in interstate and
foreign commerce, including immrance companies.
As an aid to investigation, the Commissioner of Corporations is gh en
like powers to those granted the Interstate Commerce Commission.
Since the organization of the Bureau on February 26, 1903, exhaustive studies have been undertaken in the following fields:

1. A systematic study of the law creating the Bureau.

2. The general subject of interstate commerce and the powers of the Federal
Government in relation thereto.
3. The decisions of the Federal courts relating to corporations engaged in interstate commerce which are eubjeet to the jurisdiction of the Bureau.
4. The jurisdiction and powers of the Interstate Commerce Commission.
6. The decisions of the Federal courts in relation to trade conspiracies, monopolies, and combinations in restraint of trade.


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6. The corporation laws of the varioUB States and Territories, particularly thOl!e
relating to the annual reports and the returns for taxation purposes
required from such corporations.
7. The methods of taxing corporations in each State and the decisions relating
to the taxation of interstate commerce.
8. The effect of industrial combinations upon the prices of the commodities eold
by such combinations, the effect of tariff duties upon the prices of commodities subject to such dutieB, and the reasons for the difference, if any
exists, between the domestic and foreign prices of commodities manufactured by the protected indUBtrial combinations of this country.
9. The powers of the Federal Government in relation to insurance companies.

From a preliminary study, it became apparent that the public records of States and Territories, the reports of special committees
appointed under State or Federal authority, the files of certain Government offices, and various commercial and industrial publications
contained a. fund of valuable information on the subjects to be investigated. This information is being brought ·together, analyzed, and
properly indexed, in order that the facts already known may be utilized in planning more speeific inquiries.
Resulb1 thus far obtained show that much fuller information has
been given in the past than is generally supposed. The knowledge
already acquired from various sources regarding particular corporations will be of decided value in determining what further information should be required. By a proper utilization of the facts at hand
unnecessary inquiries can be a.voided.
The field of work that lies open to the Bureau is almost unlimited
in extent, and it is believed that if proper means made available
results of far-reaching com1equence can be accomplished. Since the
1st of ,July the Bureau's operations have been extended so rapidly
that the 1:,pecie.l appropriation provided is now practically exhausted.
In order that the investigations already begun may be effectively completed and the information gained be utilized to the best possible
advantage, a liberal addition to the present appropriation should be
Appropriations for the Bureau should carry with them ample authority for the employment of specie.I attorneys and specie.I examiners
possessing the qualifications necessary to meet particular exigencies in
the work. For this reason it is strongly urged that future appropriations, in so far DB they relate to s.pecial attorney1,1 and special examiners, be made in the form of a lump sum, with such limitations only
as e1,1sentia.l to good administration.
The creation of the Bureau was viewed by some with ala.rm, or a.t
lea.'lt with su1,1picion. It was feared that the powers granted might be
hastily or inadvisedly used to the injury of legitimate enterprise. No
such purpo1,1e actuated the framers of the law; no such purpose will
control its administration.

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Many corporations have been granted important privileges hy the
public, and some of these <'Orporations, through consolidation of capital, have acquired extensive influence in the industrial affairs of the
country. Such privileges, if used improperly, not only retard the
progress of indu»try, but frequently breed corruption in politics.
The legislation creating the Bureau of Corporations W&H the expres:-1ion of a popular belief that further safeguards should be provided for
the regulation of business enterprises to which special privileges have
been granted by the people. Publicity will disclose unfair dealing,
dishonesty, and corruption; but if properly enforced it will not disclose
to trade competitors the fruit.s of individual thrift and initiative, nor
permit in any other manner the invasion of private right.s.






The Department is empowered to acquire and diffUBe among the
people of the United States useful information on subject.s connected
with lahor, in the most general and comprehensive liense of the word,
especi&Uy regarding its relation to capital, such as the hours of labor
and the earnings of lahoring men and women; the means in general of
promoting their material, i;ocial, intellectual, and moral condition; the
elements of cost, or approximate cost, of product<J; the comparative
cost of living, and the kind of living; the articles controlled by trust.s
or other combinations of capital, business operations, or labor, and
the effect such tru5ts or other combinations have on production and
prices; the causes of and fact~ relating to all controversies and between employers and employees.
Capitalist.s and wage receivers are to be treated on an equality, for
in these matters relating to labor and capital and to their rei;pective
representatives the Department must stand in the position of an educational office, collecting and publishing such information as wi11
enable each party to understand more fully the pre,·ailing conditions.
The Department has no executive functions relative to the Rett]ement of labor disputes. It can not interfere on behalf of either
employer or employee in controversies arising between them.
Whatever eoabl~ either party to irecure necessary information falls
within the authority of law. That authority does warrant the Department in publishing any information drawn from conditions in this or
in other countries which wi]] be helpful in bringing about fuller
knowledge and better understanding. Employer and employee are
dependent upon each other, and the re~ognition of the welfare of
both, and of the mear"I of as.-Ji;;ting in securing that welfare, will be
aseidnoosly cultivated. All possible me&-Jures of an educational nature
'trill be employed to induce the representatives of labor and capital to
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conduct their affairs on a hasi.8 which shall not interfere with the general welfare of thoi;e not engaged in the disputei;. This general policy
mul:lt commend itself to the wisdom of employer and employee alike,
aH it i8 in the interests of both.
A large part of the office force, as well M of the field force of the
Bur(',au of Labor, has been engaged during the year in the collection of data for the eighteenth annual report of the Bureau (the report
for 1903) and in its preparation. This report presents the reimlts of
nu extended investigation into the cost of living of workingmen's
families and the retail prices of staple articles of food used by such
families. That part of the report which relates t.o retail prices is the
first extended investigation of the kind that bas been in this
country. The previous prk-e studies, covering a period of, have
dealt solely with wholesale prices, which of course do not rapresent
accurately the cost to the small consumer.
The second annual report on the course of wholesale prices was made
in the Bureau's bulletin for March, 1908. While it is considered
advisable to continue this index of wholesale prices, the data relative
to retail prices contained in the eighteenth annual report should be
used in preference to wholesale prices in any study of the cost of living
of workingmen's families.
In addition to the preparation of the eighteenth annual report and
other work done by the Bureau, its bulletin has been issued regularly
every other month. Each number of the bulletin contains, in addition
to one or more special articles, timely data relative to agreements
between employers and employees, digests of recent reports of State
bureaus of labor statistics, digests of recent foreign statistical publicatiom,, court decisions affecting labor, and laws of various States relating
to labor. As the result of investigations in progress or completed,
forthcoming bulletins will contain the following spedal articles:
Labor Unions and British Indmrtry.
Labor Conditions in Australia.
Labor Conditions in the Philippine Islands.
The Revival of Handicrafts in the United States.
Trade Union Movement among the Coal Mine Workers of the United States.

Other investigations are being carried on by the Bureau, and the
results will appear either in the bulletins or in special reports.
Among the latter may be mentioned a report on restriction of output
by employers and employees in the United States, Great Britain, and
the continent of Europe; a report on the labor of children in the principal industrial States of the Union; a report on coal-mine labor in
Europe; and also a compilation of the labor laws of the United States,
which revises and brings down to date the second 1:1pecial report of the
Bureau, published in 1896. Reports have already been issued upon the
condition of the laboring classes of the Territory of Hawaii
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Active work on the preparation of the nineteenth annual report of
the Bureau and the collection of dat.a therefor was begun some months
ago, and rapid progress is being made. This report, which should be
available-in summary form, at least-in the spring of 1904, will
<~mprise the largest and most representative collection of data relative to wages ever undertaken. The period covered will be the years
from 1890 to 1903, inclm1ive, and it b expected that every import.ant
manufacturing industry and every large industrial center in the United
St.ates will be adequately represented.
One of the first official acts of the Secretary of Commerce and Labor
on the day the Bureau of Labor was transferred to this Department
was to direct the employment of a special agent to make an investigation in England as to the effect of trade unionism on British industries. The agent's report, which is to appear in an early issue of the
Bulletin, will commend itself to the attention of those interested in
this subject.
In view of the attention which the subject of trade unionism commands, and the efforts made by employers and employees to improve
their relations, to prevent strikes and other industrial disturbances,
and to provide a ready and certain method by which disagreements can
be adjusted, it is believed that this report, explaining the methods
adopted in Great Britain and the lessons they teach, will prove a
valuable contribution to the literature of sociology and may offer
some suggestions which can be profitably adopted in our own indus•trial system.
The Bureau of Labor has rendered effective service in it'! special
field. The Department will utilize to the fullest extent the experience
that has been gained in this important Bureau, and will seek to make
more and more available the information it can obtain and to secure
larger results from its work. Not only is there at present a bureau
doing work pertaining exclusively to labor, but it is proposed to make
every other bureau in the Department do its share, so far as its
organization will permit, to "foster, promote, and dernlop * * *
the labor interests, • •· • of the United States." The Department's statistics on labor, as well as it.'! statistics on other subjects,
will be gathered fairly, given out fairly, and a.i; far as possible will be
made to represent accurately conditions found to exist. Whatever
rearrangement may be found neces.'!8.ry in any of the duties now
assigned to the Bureau, the great interests of labor and of industry in
their broadest sense will be subserved.
The new Department should not be expected to do impossible things.
If it can he helpful to any com~iderable extent in improving existing
relations as between employer and employee; if it.'3 publications can
furnish facts from whieh there may come fuller understanding; if,
having gained the confidence of the people, it can, from time to time,
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point the way to better feeling and broader views a.'! between contending intere8b:!, it will accomplish one of the most beneficent results of
its organization.


The establishment of a light-house system properly received the
attention of the founders of the Republic. Letters 1-Jigned hy Wsshington, Jefferson, Hamilton, Gallatin, and others, testify their interest
in the subject. Among the first appropriations were those for
aids to na,·igation. While it was recognized that commerce meant
prosperity to the country, it was equally recognized that the light-house
meant safety to commerce. As light-houses and other aids to navigation have been multiplied, the premiums on marine insurance have
been diminished.
When the present Light-House Boa.rd was organized in 1852, Congress adopted a policy which, when carried fully into effect, will equip
the coasts of the lI nited States so thoroughly with lights that no vessel
off our shores will be out of sight of a. light, or out of hearing of a. fog
signal. Harbor lights and fog signals show the sailor the way in and
out of port. The whistling buoys, the lighted buoys, the ice hnoys,
the can, nun, and spar buoys do in a. small way what the light-houses
a.ccomplh1h for larger area.'!. The various instrumentalities have h<'en
brought to such a. degree of efficiency that navigation is from year to
year e~ier and commerce safer.
Demands are being made hy commerce and navigation for lighthouses and other aids to navigation in the waters surrounding our
insular possessions. The Porto Rican light-house service has been
taken over and is now being administered by t.he Light-House Establishment. The Hawaiian Islands are urging that their light-house
service be administered by the Federal Government. The Philippinl.'s
are requesting !!imilar assistance~ and Guam and the Midway Islands
also present clnims for a proper light-homm service. What has been
done to make Alaskan commerce safer and easier they wish to have
repeated for them. They insist that sneh lights and aids to navigation
a.s they already possess shall he hrought up to our standard, and to do
this thoroughly and economically they claim properly that their lighthouse sen·ice should be administered hy the Light-House Establishment. This matter is commended to the serious attention of Congress.
The Department invites attention to the need of meeting the estimates
for the maintenance of the Light-House Establishment with full appropriations. The amounts asked are urgently required. Any diminution
of them will retard the opemtions of the establishment to just that
extent. The increa8e in tho numbl.'r of aids to na,·i1,1'1ltion i-inc<' the
last 1Lppropriations occa."lions the increase in the requirements of the

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Mtablishment. The estimates have been carefully framed and are
based on an aggregate of items. Hence the reduction of the estimates
will require the abandonment of items to the extent of the reduction.
Especial attention is invited to the se,·eral estimates for the cost of
building light-house tenders. These vessels are the eyes and hands of
the establishment. By and with them the quarterly inspections are
made, the personnel of the establishment is kept up to its standard,
the 1,550 light keepers are paid quarterly, supplies of oil, fuel, and
other neces8&ries are delivered at the light stations, and repairs of old
stations and the construction of new ones are made. The lack of sufficient light-house tenders has made it necessary to do certain work by
contract which otherwise would have been done by employees of the
Department with greater promptitude and at less expense. Attention
is invited to the estimate for a light-house tender to be used in Porto
Rican waters, especially as it will he.necessary to use her in connection
with the aids to navigation in Guantanamo Bay, Cuba, where the~naval
cool station has just been established.
The Light-House Establishment is now)imited by law to 16 districts.
The Light-House Board in its annual report has set out the need for two
more districts, one to embrace Alaskan waters and the other to embrace Porto Rican waters, as well as the aids to navigation now in
Guantanamo Bay, Cuba, and to be hereafter established there. The
aids to na,•iga.tion in Alaskan waters are now looked after by the inspector and engineer of the Thirteenth Light-House District, who
have their headquarters at Portland, Oreg., or about 1,800 miles away
from some portions of their work. This great distance makes it very
difficult, and in some instances impo8sible, to give that careful supervision to the work which the interest.-; of commerce and navigation
require. The e,stablishment of a new district, with headquarters for
the inspector and engineer near its center, will do much for the in- ·
creased convenience and safety of the growing commerce in these
waters. The aids to navigation in Porto Rican waters are now, and
those in Guantanamo Bay will he, under the supervision of the inspector and engineer of the Third Light-House District, whose offices
are on Staten Island, New York, some 1,500 miles away from this
work. The establishment of a new dis(rict will enable the Board to
place an inspector and engineer, say, at San ,Tuan, P. R., where they
would be within about 100 miles of their work in Porto Rican waters,
and much nearer Guantanamo Bay than is now the case.
The Board, in its e8timates for special works bas repeated many estimates which it has submitted from year to year, in some instances for
many years past. In every caHe the necessity for 8uch work ha.c. been
determined by careful examination repeated demand:-1 therefor
by commercial interests. The estimates have been carefully made by
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House Board in its committees and by its executive officers. It remains
for Congress to decide whether it will grant these demands of commerce, and to determine the order of their importance. This Department, however, invites particular attention to those special works
which are required to light and make usefu] by night the channels cut
by Congressional authority, or which are now nearly finished, and to.
those for which authorized contracts have been made, but to finish
which additional appropriations are needed.

The Bureau of the Census, transferred to this Department from the
Department of the Interior, had completed one year under its permanent organization on the date the transfer was effected. The operations of that year, as described in the report of the Director of the
Census to the Secretary of the Interior, indicate gratifying progress
with the special investigations 8S8igned to the Census Office by Congress to be taken up upon the completion of the main reports of the
Twelfth Census.
Since the transfer the Bureau has issued seve1-al additional publications, including the Statistical Atlas of the Twelfth Census and the
Special Report on Employee!! and Wages in Manufacturing Industries.
Other important reports are on the ,·erge of comp]etion. The Bureau
bas also entered actively upon the work of t'ompiling the census of
the Philippine Islands, in accordance with the order of the President.
At my re<1ue::1t the Director has submitted a !!npplementary report,
which presents in some detail the plans already made or now under
consideration for the future work and usefulness of the permanent
Census Bureau.
This report makes it evident that Congress acted wisely in placing
the Censµs Bureau on a permanent basis. All the advantages anticip11ted from that action, including more thorough preparation for the
Federal decennial censuses, their earlier compilation and publication,
their greater comparability with each otlu~r, their greater accuracy
and continuity are destined to be realized. But more than this, the
establishment of a permanent office has opened up unexpectt>d opportunitie.~ for beginning much-needed statistical reforms all along the
line which are certain to result not only in the avoidance of duplication in Federal statistical work hut al!!o in bringing into closer harmony with Federal Btatistics a great body of statistical material collected in different States and municipalitie:;.
Much of this material relates to subjects closely akin to those covered by the census reports, but it has heretofore heen compiled on
lines so diversified and so dissimilar to those of the census that it has
been impossible to <'OOrdinate the reRnlts. Undoubtedly it will take
many years fully to accomplish coordination and collaboration between
the Federal census and the many State bureaus engaged in similar
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statistical work; but the Director'1:1 report shows that substantial progress has already been made in se,•eral directiomi; and I can not resist
the conviction that as this movement for the standardization of all classes
of official statistics proceeds and develops, it will come to be recognized
as marking one of the greatest and most practical reforms in official
Still another great advantage arising from the establishment of the
permanent Census Bureau, and from its transfer to a department containing other bureaus en,;,raged more or less in statistical work, has
impresoed itself upon my mind from the first. The Census Bureau is
a purely statistical office, employing a body of experts whose main
business it is to study statistics and statistical methods, with a view to
their improvement and perfection. To this work they give their undivided attention, and it is reasonable to believe that a steady improvement
in the character of official statistics will result from the concentration
in such an office of as much of the statistical work of the Department,
no matter what its immediate character, as can be centered there without interference with the administrative duties of the other bureaus.
In accordance with these views, and acting under the authority conferred by the organic act of the Department, I have already transferred
from the Bureau of Labor to the Bureau of the Census the compilation of the annual statistics of cities of 30,000 population and over,
provided for by the act of Congress approved July 1, 1898, and from
the Bureau of Immigration the compilation of the statistics of immigration.
The · first branch of work thus transferred was so similar in its
character to work imposed upon the census by law, as to make it
imperative both as a matter of economy and for the sake of uniformity,
that one office should compile the two reports. My action in making
the transfer was ta.ken after a conference with and upon the joint
recommendation of the Commissioner of Labor and the Director of
the Census.
The purely scientific work of the Census Bureau is closely related
at many points to the practical affairs of the nation. A striking illustration of this fact is found in the current investigation of the Bureau
concerning the receipts and expenditures of cities. The schedule prepared for collecting data relating to this subject has become the
pivot around which is now centering a well-organized movement for
securing a uniform cl8.8sification of municipal accounts and a more
intelligent presentation of them. A conference for the critical study
and perfection of the schedule of municipal receipts and expenditures,
recently called by the Director of the Census, brought together a
large gathering of the representatives of the offices charged with the
administration of finances in our greater cities, and of others interested
in the more general adoption of improved methods of municipal
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The conference in many ways expressed its deep interest in the
work of the Census Bureau, and bore earnest testimony to the practical value of that work in the field in which its members are most interested. These investigations of the Census Bureau promise to give
great impetus to the extension of p~blicity in municipal affairs and,
by sympathetic influence therewith, to promote and extend the movement for whatever may be determined to be a proper publicity of corporate management, with which this Department is so deeply concerned.
The transfer of the compilation of the immigration statistics to the
Census Bureau baa long been advocated by statisticians, and will bring
immigration statistics into proper harmony with the population statistics of the Federal Census. It will enable the Department to present
them with the fuller detail and analysis which have become imperative, in view of the rapid increase in immigration and its changing
character. The transfer was made with the hearty approval of 'the
Commissioner -General of Immigration, and the compilation of these
statistics by the Bureau of the Census will begin on .January 1 next.
I desire here to call attention to the recommendation made by the
Commissioner-General of Immigration and the Director of the Census
that provision at once be made by law for securing the proper statistics
of foreign-born emigrants from this country. No satisfactory statistical statement of immigration and its permanent effect upon the
population of the country can be compiled unless the statistics of
immigration are accompanied by the corresponding statistics of foreignborn emigration.
It is my intention, from time to time, aa opportunity presents itself,
to transfer other important branches of statistical work to the Bi.ueau
of the Census. As an illustration of how widely useful such a recognized center of statistical work can become, and how it may be possible and desirable for all of the departments of the Government to
utilize its services in their own statistical compilations, I may refer to
the recent request of the Civil Service Commission, which I have
approved, that the Bureau of the Census shall compile the statistics
of the classified service of the United States, collected under the order
of the President dated March 31, 1903.
Heretofore there has been no bureau of the Government to which
such distinctive and exclusive functions could be assigned, and the
quality and the value of our go\'ernmental statistics have suffered
correspondingly in comparison wii:b those of other nations. But with
this conception of the true function and the proper development of a
permanent Census Bureau it will necessarily become, in a comparatively short time and under proper direction and management, the
great statistical laboratory of the U nit.ed States Government, worthy
to take rank with the best statistical offices maintained by European
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The success of this general plan for the development of a Federal
laboratory of statistics depends upon its organization upon a strictly







nonpartisan basis, such as will command universal confidence. So
organ~ed and carried on, the Bureau of the CeDsus will very quickly
come to be recognized as belonging st1ictly in the category of the
scientific bureaus of the Government, and as one of the most useful
and important of them.

The Coast and Geodetic Survey is charged with the duty of surveying the coasts under the jurisdiction of the United States for the purposes of commerce and defense. Its work has recently been greatly
augmented by the extension of the operations to Porto Rico, the
Hawaiian Islands, and the Philippine Islands. Much has already been
accomplished in these fields without material increase in the facilities
of the Bureau.
The greater draft of the vessels at the present day, the growth of
the merchant marine, the enlargement of the Navy, and the requirements of the fleets in maneuvers off our coasts necessitate a thorough
revision in many localities where the charts are bti.sed upon surveys of
earlier days, when light draft and comparatively small vessels were in
use. The demand for surveys from these causes is increasing.
The development of AlMka with its thousands of miles of but partially known waters taxes to the limit of its capacity the force available for such work. The fixing of the boundary between this Territory
and British America will probably result in a demand for the service
of many of the experts of this Bureau in the work of surveying and
marking the boundary as defined by treaty, in accordance with the
decision of the Alaskan Boundary Tribunal.
On the acquisition of the Philippine Islands and the extension of the
work of the Survey to include them, by act of Congress, surveys were
immediately begun, and a large amount of valuable work has been
accomplished. The Philippine Commission has cordially cooperated
with the Bureau. Many geographical positions have been determined,
and surveys have been made of the principal harbors and anchorages.
A rapid extension of the triangulation of the islands is urgently
needed, not only for the purpose of hydrographic surveys and as a
basis for the cadastral surveys now under contemplation by the Commission, but also as a basis for the scientific surveys necessary to
develop the physical resources of the islands.

The work of the Bureau of Statistics now embraces statistical
inquiry regarding the commerce of the world. Beginning in 1866,
its work was directed merely to the oompilation of statements of the


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foreign commerce of the United State!!. These statements showed
our imports, with the countries from which they came, and our exports,
with the countries to which distributed. In the t!arlier history of the
BuTI'.au it8 public-.ations consiBted of a brief monthly statement of
imports and exports, classified by principal articles, and an annual
volume entitled "Commerce and Navigation," that showed the countries from which the imports of the year were received and to which
the export,; of the year were sent, together with the nationality of the
vessels in which they were transported. With the development of
commerce the monthly statement was gradually enlarged, and at the
present time shows in each issue not only the countries from which
the principal imports are brought and to which the principal exports
are sent, but also the total imports from and exports to each country
of the world, month by month, and for the accumulated months of
the current year, compared with the corresponding months of the two
years immediately preceding.
The annual volume of Commerce and Navigation has been enlarged
so as to show not only the detailed· movements of the yeiir, stated by
articles and countries, but in a second volume the yearly imports and
exports of every article pat-1sing to· or from each country during a
period of ten years.
Stafo1tics regarding the internal commerce of the United States
form at the present time an important feature of the Monthly Summary of Commerce and Finance. These statements show in detail the
commerce of the Great Lakes, the concentration at interior points of
the principal articles forming the internal commerce of the country,
and the movement from these points toward the seaboard; also, as far
as practicable, our coastwise commerce in 1mme of the more important articles.
Trade with the noncontiguous territory of the United States is also
treated of in the Monthly Summary and annual volume; the articles
brought into the United States from each of the noncontiguous territories under its control, and the shipment.'3 from the United States to
those territories, are shown in detail by articles, quantities, and values,
as are also the imports and exports of these territories in their trade
with foreign countries.
Special statements regarding commercial conditions in leading countries, as well as the world's production of the principal articles entering into national and international commerce, are also published from
time to time in the Monthly Summary. Besides supplying much
useful information to those engaged in commerce with foreign countries, these statements are of interest to educational institutions, and
especially to students of economics.
Report,; from the U nitcd States consuls in all parts of the world
regarding commercial conditions in the countries where they are
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stationed are also published daily and distributed by the Department ·
to the press and to the commercial organizations of the country. This
work, formerly conducted by the Bureau of Foreign Commerce of the
State Department, was transferred to the Bureau of Statistics by the
act creating the Department of Commerce and Labor. The daily
reports are also published in a monthly volume for wider distribution. The annual volume, Commercial Relations, formerly published by the St.ate Department, showing trade c.onditions in each
country of the world as presented by the consuls in their annual
reports, is now issued by the Bureau of Statistics.
By these yarious publications the Department present<i to the public
daily, monthly, and annual statements of the commerce of the United
States and of foreign countriAS, bringing to the attention of those
interested opportunities for trade extension in the various quarters of
the world. That this work is appreciated is indicated by the growing
demand for these publications and by the numerous and constantly
increasing inquiries received regarding commercial matters.
The growing demand fo1· information of this character has increased
the work of the Bureau of Statistics to such an extent that its present
force is entirely inadequate. A considerable increase in the working
force of the Bureau has acc-01·dingly been recommended in the estimates for the next fiscal year.


The Steamboat-Inspection Service is charged with the duty of
inspecting hulls, boilers, machinery, and appliances, and of examining
into the qualifications of officers, engineers, and pilots of certain
classes of vessel8. On the satisfactory discharge of these duties
depends in part the safety of life and property on the water, so far as
the Government undertakes to promote it. They are best performed
by the application of common sense to the details -of the technical
work performed by the local officer:;. They invoh·e few broad questions or principles. At the same time, the service mm;t be administered in accordance with acts of Congre:;s and general regulations
based thereon. The defects of our inspection system are inherent in
the existing laws and methods, and are not the result ~fa negligent or
inefficient performance of duties.
The Board of Supervising Inspectors held a special 1,1ession <luring
the summer, at which some changes in these general acts and regulations were considered. The proposed changes are now under examination by the Department. With other recommendations prompted
by the defects of the present inspection system, the Department will
incorporate such of these proposed changes as seem de8irnble in a bill to
amend the laws now in force. ThiR bill will be submitted to Congress
for its consideration during the preHent regular session. A8 a rule the
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increased security of life a.nd property a.t sea is due more to the Rkill
of shipbuilders, improvements devised by inventive genius, and the
inteJligence of navigators than to Government regulation. At the
same time Government regulation can assist these forces by requiring
all builders, owners, and officers to come up to the standards voluntarily fixed by the mo1,1t careful and scrupulous. To this end the
Department will ask for such powers as will enable it to adjust its
general regulations, in order that they may he adaptable to the progress
made in shipbuilding and navigation, and capable of meeting the
growing needs of the merchant marine.

The work of this Bureau in the interests of the commercial fii~heries
and the food-fish supply is proceeding on well-established lines and is
achieving results of pronounced economic value. The early researches
of the Bureau having shown that artificial propagation was the most
feasible and effective form of aid which the Federal Government could
r~nder to maintain the fishery resources of the country, fish culture
soon became and has reruained the dominant feature of the Bureau's
operations. Numerous other lines of work, however, for the immediate benefit of the fisheties are now regularly prosecuted; thus, new
fishing grounds are explored, improved apparatus is brought to the
notice of fishermen, the merits of unused or little-used water products
are made known and ways of utilizing them are pointed out, the best
methods of preparing and preserving the catch are shown, new
markets are found, timely statistics of production and prices are
gathered and published, instructions for all kinds of aquicultural
operations are issued, the methods of foreign fishermen in every
branch of the fishing industry are studied in the interests of our own
people, and in scores of other ways individuals, corporations, communities, States, and entire sections are intelligently ad,·ised and
In stocking public waters with food fishes the Bureau aims to make
its operations commensurate with the magnitude of the fisheries and
the vast area of the fishing grounds. It is necessary to deal, not with
thousands or millions of young fish, but with hundreds of millions and
even thousands of millions. ,vhen the results of the season's work at
the individual hatcheries are combined, the aggregates are so large as
to be almost beyond comprehension, far exceeding a billion food and
game fishes during each of the past few years. From 80 to 90 per
cent of these fishes would ne,·er have existed but for the Bureau's
effort"', as they were hatched from eggs which had been taken from
wild fish caught for market.
Speeies to which particular attention hi\,.., heen directed are the shad,
the cod, the whitefish, the lake trout, the basses, the trout:B, and the
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&1.lmons. The shad, the most valuable river fish oi the eastern seaboard, has been extensively cultivated and has long been dependent
on artificial propagation. The catch is increasing yearly, notwithstanding the existence of less favorable conditions than confront any other
fish of the eastern rivers. The value of the increase in the annual
catch of this fish, compared with the yield in the years before the
Bureau began its work, is upward of a million do11ars.
As a result of the cultivation ,of cod on the New England coast, a
lucrative inshore fishery has been built up on grounds which were
either depleted of cod or had not contained cod to any considerable
extent for many generations. Long continued fish-cultural operations
on the Great Lakes have prevented the depletion of those waters in
the face of the most exhausting lake fisheries in the world, and the
perpetuation of the whitefish, lake trout, and pike perch seems assured
without further curtailment of the fisheries. The extent of the salmon
fisheries of the Pacific States has required the most active fish-cultural{//
measures to keep up the supply, and the beneficial influence of the
work of the Government hatcheries, supplemented by that of the coast
States, has been unmistakable. Many thousands of ponds, Jakes, and
streams of the interior have been stocked with basses, trouts, and other
suitable fishes which contribute largely to the food supply.
The Government is not only maintaining and increasing the supply
of food-fish in public waters, but is doing so in accordance with sound
business principles. The annual appropriations for the maintenance
of the Bureau of Fisheries have been profitable investments, yielding
direct :financial returns to the public; and these returns have constantly
been augmented and for years have been many times in excess of the
total expenses of the work.

The Department has under conside~tion the question of establishing, in connection with the Bureau of Fisheries, a national aquarium
.,, ~uch size and architectural exce1lence that it will be a credit to the
oat n. Public aquaria are recognized as important aids to education
and are among the most attractive and useful exhibits that can be
maintained at public expense. An appropriation for such an aquarium
wiJI in due course be recommended.

The large capital invested in the Alaskan salmon fisheries and value
of the annual product demand that prompt action be taken to insure
the permanency of the industry. The present drain on the salmon
resources is so great that serious depletion is inevitable unless adequate artificial propagation and rigid inspection are instituted. The
physical and biological conditions in the salmon streams of Alaska are
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so varied and so little understood that final regulations governing the
" fisheries should he based upon thorough investigation of the waters
and fish in each particular section. Such an investigation has just
been made.

On November 8, 1902, the President directed the United States
Commissioner of Fisheries to appoint a commission to make a thorough investigation of the salmon fisheries of Alaska during the season of 1903, with a view to determining their condition and needs.
This order directed the Commissioner of Fisheries to designate Dr.
David Starr Jordan, president of Leland Stanford Junior University,
as a member of the commission, and further provided that definite
recommendations should be made touching all phases of the salmon
The personn~l of the commission was as follows:
Dr. David Starr Jordan, executive head.
Dr. Barton Warren Evermann, acting exerotive head in Doctor Jordan's
Lieut. Franklin Swift, U. S. Navy (retired).
Mr. Alvin B. Alexander.
Mr. J. Nelson Wisner.
Mr. Cloudsley Rutter.


An extensive inquiry into all aspects of the salmon fisheries was
made by the Commission, and a preliminary report, prepared by Doctors Jordan and Evermann, dealing especially with recommendations
for the protection of the fisheries, by legislation and otherwise, has
been submitted to me, and will receive the careful_consideration it
deserves. One of the most urgent recommendations of the Commission is for the immediate establishment of Government fish hatcheries,
in order to maintain the supply without curt.ailing production. In
accordance with its recommendation the estimates of the Department
include four fish hatcheries in Alaska for the propagation of salmon.
The fimi.l report of the Commission, containing the special reports
of the several members, with a more extended discussion of the natural
history and other questions involved, is now in preparation, and will
be submitted in due course.

Under the law for the enforcement of· the regulations for the protection and preservation of the Alaskan salmon fisheries, it is the duty
of the agent and his assistant to maintain a police surveillance over
fishing and packing operations during the active season, in order to
prevent illegal methods; to report to the courts for prosecution violations of the regulations, and to supply evidence for the conviction of
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the offenders; to visit canneries, salterieB, and fishing grounds each
year in the discharge of these duties; to collect and collate statistical
information regarding the details of the industry, and to make annual
reporta, and, if required, special reports, to the Secretary on the work


The presence of the Department'B agents at the Alaskan fisheries
has been beneficial as a restraining influence on destructive methods
of fishing. The barricading of streams in such manner as to keep
salmon from the spawning grounds is now of infrequent occurrence.
The closed sea.'lon has been carefully enforced and measures taken to
remove as far as possible the obstacles to natural propagation.
In addition to the restraint of lawlessness, valuable service has been
rendered in the collection of facts upon which to base an improvement
of conditions. Thus the need of artificial propagation ha.'! been disclosed. and the necessity of revising from time to time the regulations ,
in force. As a further result of information obtained by the agents
the tax on the industry was imposed.

The Department's agents at the Alaskan salmon fisheries report that
the past season was a prosperous one for the fisheries. The number
of canneries in operation wa.s 58, and the number of salteries 18. From
incomplete returns the sea.son'B catch is estimated at about ~,400,000
cases, as against 2,631,320 in 1902. The decrease was due to an intentional reduction in the pack of inferior grades and not to a smaller
supply of fish. Compared with the results of other fisherim.1 the
Alaskan output was exceptionally large. It is estimated that the
world's pack for the past season will amount to about 3,457,000 cases,
or 860,~ cases less than in 1902. The run of salmon at the British
C,olnmbia and Puget Sound fisheries was unusually light.
Although the season's pack of Alaskan salmon showed a decrea.'le in
volume, its market value, owing to higher prices for the better grades,
will exceed that of any year in the history of the industry. It is estimated that the receipt.'! will aggregate about $11,200,000, or a gain of
nearly 30 per cent over those of the year before. The tax paid to the
Government will be about $96,000.

In accordance with the Department's policy of consolidating and unifying related services, the agents employed for the inspection of the

Alaskan salmon fisheries and for the enforcement of regulations pertaining thereto will be transferred on .July 1, 1904, to the Bureau of
Fisheries. The estimates submitted by the Department with reference
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to appropriatiom1 for the fiscal year beginning on that date make
provision for this transfer.



The agent and three assistants appointed for the protection of the
seal fisheries of Alaska are charged by law with the management of
the seal fisheries and the performance of such other duties as may be
assigned to them by the Department.
Their principal duty on the seal h1lands is to supervise the taking
of seals and to keep careful counts of such" skins 118 taken by the
lessee of the sealing right. They ascertain the condition of seal life
and the number of seals present on the rookeries season by means
of daily counts of cows and of periodical counts of bulls and pups.
They also represent the authority of the Government on the islands,
which by law made a Government reservation, regulating the
municipal affairs of the native inhabitants and maintaining peace and
order on the reservation. They are charged with the expenditure of
the natives' earnings from the taking of seal and fox skins and of the
appropriation by Congre&i for the support of the native inhabitants. This expenditure is effected through the issuance by the agent
to the heads of native families of orders drawn on the North American
Commercial Company, which at present holds the sealing right.

The work of the agents at the seal fisheries has been of decided
value to the Government. Prior to the arbitration of the Bering Sea
question at Paris in 1893 comparatively little was known as to the
numbers of seals at the rookeries or the eonditions affecting them.
Since that time, however, and especially during the last seven years,
<,lefinite information has been annually secured regarding the conditions of seal life. Tho facts obtained will be of great value should the
Bering Sea question be reopened.
Through the efforts of the agents there has been started on St.
George Island a fox-raising industry that bids fair to incroase the
number of foxes to a point where the income derived will support the
natives. During the intervals between the sealing sea.sons roads and
other improvements have been on the islands, so that the two
villages there are now models of their kind in Alaska.
The fact that during the eight months of the year when no communication can be had with the outside world a single agent on
each island is obliged to maintain order and enforce respect for the
authority of the Government is sufficient to show the trying nature of
their duties.
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As a result of the killing of fur seals o~ the Pribilof Islands during
the season ended August, 1903, there were taken 19,292 sealskins for
the quota of 1903, and 82 rejected skins shipped by order of the
Department and charged to the quota of 1902.
Of the 19,292 skins so taken, 3,092 were from St. George and 16,200
from St. Paul. The 82 rejected skins came from the latter island.
The catch of 1903 was 3,094 less than that of 1902. This decrease
was due to the fact that bachelor were not present in so large
numbers as in the preceding year.
The counts on St. Paul Island last summer show that from 1902
to 1903 the number of breeding bulls on that island decreased 17 per
cent and the bachelor 14 per cent, while the herd of breeding
cows increased 3 per cent. During the four from 1900 t,o 1903,
inclusive, the breeding bulls have decreased 42 per cent, while the
breeding cows have increased 9 per cent. The number of breeding
cows present on St. Paul Island in 1903 was 82,649, and the number
of breeding bulls 1,979. On St. George 14,647 breeding cows were
found, with practically no decrease from the preceding year.
The presence of sea.ling schooners within sight of the islands this
summer, before the beginning of the pelagic season in Bering Sea,
indicated a pursuit of the American herd of seals during the closed
season. It was impossible t,o determine the nationality of the schooners.
There is reason to believe, however, that foreigners are not the only
offenders. American citizens are undoubtedly engaged in pelagic sealing under foreign flags. If the law prohibiting such sea.ling is t,o be
made effective, citizens of the United States t1hould not be permitted
t,o use the flag of a. foreign nation as a cloak for the violation of
American statutes.

The Bureau of Navigation, which is charged with the general superintendence of the commercial marine and merchant, except in
certain particulars, was transferred to this Department at the close of
the fiscal year. At that time the documented merchant shipping of
the United States comprised 24,425 vessels, of 6,087,345 gross tons,
not including 1,828 yachts, of 74,990 gross tons. This fleet is manned
by approximately 170,000 men, including masters. The American
stam fleet is propelled by machinery of about 4,000,000 indicated
horsepower, requiring an annual coal consumption of over 10,000,000
The Commissioner of Navigation recommends various changes in
the laws relating to pilotage, tonnage, boarding of vessels, sea.worthiness, and similar mattert1. Although in t.onnage the United
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States ranks next to Great, the entire growth of our shipping
for the past ten years haa been in the domestic trade reserved to
American vessels.

For years the condition of our shipping in foreign trade has been a
matter of concern to public-spirited Americans. It is virtually the
only form of commercial and industrial activity in which the· country
baa not recently shown creditable growth. As an industry it holds
exceptional relations to Government. From the nature of things, it
has been exposed in an unusual degree to foreign competition. These
and other considerations make it a fitting subject for our highest statesmanship. Strong appeals in its behalf by our Presidents from the time
of General Grant and earnest efforts more recently in Congress have so
far brought meager results.
Congress baa made it the duty of the Department of Commerce and
Labor to foster, promote, and develop our shipping interests. Commerce and labor, however, are not the only interests concerned in the
improvement of our merchant shipping. Recent legislation and
administration have aimed to render more effective the militia of the
States as an important factor in the national defense. In our past
wars the men and ships of the merchant marine were the reserves that
put our Navy on a war footing, and under like circumstances they
must perform the same service. Government aid to the merchant
marine, in its naval _features, should conform closely to our general
naval policy. The position among nations now occupied by the United
States warra.nts the maintenance of an ocean mail service equal to that
of the United Kingdom or of Germany, in order that like those countries we may possess the best possible facilities of communication in
our dealings with distant quarters of the world. By the establishment
of such service other nations have helped to build up their shipbuilding industries and to strengthen their position on the sea. Expenditures for ocean mails, -however, concern most directly the Post-Office
Department, and must be adjusted according to the means Congress
has placed at its disposal.
Should Congress provide for a commission, to be composed of the
beads of the departments most nearly concerned, who could report
jointly upon the relations of the merchant marine to each of these
hranches of government, and recommend legislation f OI' the development of our commercial shipping in a manner best calculated to serve
all the public interests concerned, some of the grounds of the present
differences and disputes would be removed. If the proposed commission should include also a proper representation from t-he two branches
of Congress, so that the investigation could readily cover matters that

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are pertinent from the legislative point of view, the chances for the
adoption of a definite and enduring policy, to replace the uncertainty
now ~xisting, would be largely increased. I earnestly recommend
that such action be taken.


The work of constructing the Panama Canal will probably soon be
undertaken. It will involve the transportation of considerable material and some passengers from the United States. Trade by way of
the Isthmus between our Atlantic and Pacific coast ports is now confined to American vessels. American control over the strip of territory through which the canal is to be built is to be gWt.ranteed. The
situation suggests the inquiry whether the special trade between the
United States and the Isthmus, involved in canal construction, shall be
confined to American vessels.

One of the great concerns of commerce is the reduction of the
avoidable burdens and wastes of war.
Nine-tenths of the water-borne exports and imports of the United
States are carried by vessels under foreign •flags. The security of our
transportation facilities by sea thus rests to a great extent on the
maintenance of peace between the maritime powers of Europe and
Asia. The United States for many years has favored the incorpo1-ation into the permanent law of civilized nations of the principle of the
exemption of all private property at sea, not of war, from
capture or destruction by belligerent powers. The success of recent
efforts to promote the international arbitration of differences not
involving national honor leads me to believe that this may be an
opportune time for a resubmission to maritime nations of our traditional wishes on this subject.
We have very few merchant ships on the ocean subject to capture in
a war to which the United States might be a party, while other nations
have many. Although we might not be a party, a war involving any
of the great foreign maritime powers would as certainly bring distress
to our producing regions as would a prolonged interruption of railroad transportation. In his annual message of 1898 the late President
McKinley requested authority to negotiate treaties upon this subject
for the protection of private property at sea. It is a manifest duty of
the Department of Commerce and Labor to invite attention to this

All interests concerned will be benefited by the removal of doubt
as to our shipping policy for the Philippine trade after July 1, 1904.
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Section 3 of the act approved March 8, 1902, contains the following
Provided, however, That until July first, nineteen hundred and four, the provisions
of law restricting to veRBels of the United States the transportation of paesengers and
merehandise directly or indirectly from one port of the United States to another
port of the Unired States, shall not be applicable to foreign vessels engaging in trade
between the Philippine Archipelago and the United States, or between ports in the
Philippine Archipelago.

The vessels under American protection now employed in the interisland trade of the Philippine Archipelago are not. " vessels of the
United States" in the statutory sem!e. Full or quaJified registry
must be bestowed upon them by Congress, if it is the purpose, after
July 1, to restrict by specific act, as was done in the case of Ala."lka,
Hawaii, and Porto Rico, trade among the islands as well as between
them and the United States to vessel:,1 of the United States.
wt year less than 4 per cent of the merchandise transport.ed between
the United States and the Philippines was carried in American bottoms, and practically all the hemp from the islands was transported in
foreign ship. Sufficient American tonnage will soon he available to
conduct the trade between the Archipelago and the United States.
While hitherto the application of the coasting trade laws has promptly
followed our acquisition of new and even distant territory, the Philippine trade, on accou!'}t of our treaty with Spain, our general policy in
the East, and our relations to the people of the archipelago, present
a different problem, involving matters other than a simple traditional

Much of the work of the Department is performed by sea and
requires a considerable fleet of vessels. The needs in this respect of
the Light-House Establishment, the Coast and Geodetic Survey, and
the Bureau of Fisheries are set forth in the reports of those offices.
Moreover, mi.ny of the duties hitherto performed by the vessels of
the Revenue-Cutter Service have been transferred from the Treasury
Department to the Department of Commerce and Labor. This situation has great disadvantages, which have been avoided, however, as
far as was possible, by temporary arrangements and makeshift"!, in
the belief that the difficulty would be remedied by proper legislation
when brought to the notice of Congress. Maritime interests can be
further safeguarded by the enactment of legislation empowering the
Department to remove derelicts from the paths of ocean steamers.

Immigration is one of the Departmmt's mo1,1t important administrative problems. Of the numerom! aliens coming annually to our shores
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many pos..~ the elements of good citizenship, but others, by reason
of physical or moral defects, are strongly objectionable, and out of
regard for our national well-being should be refused admission. Progress has already been made in the enactment of laws on this subject
and in their enforcement, but much by way of detail remains to be
accomplished. The subject is so broad and concerns so closely the
people of the entire country that it should be approached in a reasonable and conservative spirit. Care should be t.aken not to draw hasty
conclusions from unusual conditions or to advocate mor'3 radical legislation without fuJI knowledge of the facts.
The able report of the Commissioner-General of Immigration treats
exhaustively of the subject of immigration and makes recommendations that should receive careftll consideration. The Bureau of Immigration was transferred to this Department on July 1. Five months
only have elapsed since that date. Although much thought has been
given to the various questions arising in connection with the work of
the Bureau, the subject is of such vita.I consequence that I do not feel
justified, without a fuller knowledge based upon longer experience,
io making recommendations.
I take this occasion to refer to the recommendations of a commission appointed by the President on September 16, 1903, to investigate the condition of the immigration station at Ellis Island. . This
commission was composed of Arthur v. Briesen, chairman ; Lee K.
Frankel, secretary; Eugene A. Philbin, Thomas W. Hynes, and
Ralph Trautman.
The results of the work of the commission should be serviceable to
those charged with the administration of the immigration laws. The
Department had already put into operation some of the measures
covered by the recommendations of the commission; others will have
its prompt attention; and still others to which those in charge of the
administrative details may see objection will be afforded the fairest

The report of the Commissioner-General regarding the fraudulent
use of naturalization papers demands serious attention. The extent
to which such frauds are successfully practiced in order to evade the
immigration laws shows clearly the need of legislation to safeguard
more thoroughly the method of obtaining citizenship and to prevent
the fraudulent use of certificates of naturalization.

The Bureau of Standards is intrusted with the care and use of the
national standards of measure, with the development of methods of ·
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mell8urement, u.nd with the dii;semination of knowledge concerning
these subjects, as applied in the arts, sciences, and industries.
The standards of length and mass are the fundamental standards of
matter. From these and from the unit of time all other 11ta.ndards are
derived, either directly or indirectly. The derived standards include
those used in the measurement of volume, density, capacity, velocity,
pressure, energy, electricity, temperatures, illumination, and the like.
The production of copies, multiples, u.nd subdivisions of the fundamental t!tandards, the construction of the derived standards, and the
comparison of the standards used in scientific work, manufacturing,
and commerce, with the fundamental or derived standards of the
Government, involve scientific work of a high order.
The indications of measuring instruments and meters of all kinds
depend upon-their agreement with original standards. The investigation and testing of all classes of measuring instruments form a large
and important part of the work of the Bureau.
The work for which the Bureau was established includes research
and testing in the domain of physics, extending into the field of
chemistry on the one hand and of engineering on the other. The
union of research and testing in one institution is most advantageous,
enabling the Bureau to bring its work of standardization and testing
to the highest possible degree of efficiency. In order to exercise its
functions properly, the Bureau must be provided with suitable laborlltories and equipment and with a sufficient corps of specialists in the
various lines of scientific work involved.
Pending the completion of the two new laboratories for the Bureau,
its work has been carried on in temporary quarters. The mechanical
laboratory is now ready for occupancy, and a large part of its equipment h1 provided. The physical laboratory was begun in March and
is well under way. It will be ready for occupancy early in the spring,
and funds for its equipment should be provided during the coming
The Bureau is frequently called upon hy Government offices and by
scienth;ts and manufacturers for information concerning standards,
methods of construction and measurement, and physical constants, as
well as for the comparison of private standards with those adopted by
the Government.
Standards and measuring apparatus submitted for verification are
critically examined for f1tulty construction. Manufacturers keenly
appreciate unbiased criticism of their instruments, and have been
quick to adopt improved designs to increase accuracy. Direct and
permanent improvements in this large class of instruments have
resulted. In furnishing the sealers of weights and measures throughout the country with accurately compared standards of length, 1na.~s,
and capacity, and in designing a set of model weights for purposes of
comparison, the Bureau has provided mean~ \}y which the weights and
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measures used in the entire wholesale and retail trade of the United
States will be placed upon a basis of uniformity and precision hitherto ·
lacking. Furthermore, manufacturers of all kinds of measuring
apparatus have visited the Bureau to consult its specialists and inspect
its standards and measuring instruments, as well as to study the conditions and methods of refined testing. The frequency of such visits is
evidence of their va.lue in improving the manufacture and use of
standards in mea..-iuring instruments.
The investigations of the Bureau in the directions indicated are of
permanent and far-reaching value to the scientist, manufacturer, and
the general public.

At the preliminary international conference held at Berlin in August
last to consider the regulation by Government of wireless telegraphy,
especially for the purpose of securing the greatest freedom in the
development and use of various systems and of preventing the establishment of a monopoly in this important means of transmitting commercial intelligence, the Department was represented by Mr. John I.
Waterbury, of New York. The War and Navy Departments were
also represented. The report of the American delegation has been
forwarded to the Secretary of State. The draft of the proposed
international agreement is now under consideration.

The Department is in almost constant receipt of resolutions and
other communications requesting its cooperation in public improvements, notably those of commercial importance, such M river and
harbor improvement.'!. I can not at present make recommendations in
particular instances of this kind, for the duties required by the initial
work of the Department have made it impossible to give these suggestions the mature deliberation on· which recommendation should be
based. All questions of this nature, however, including those relating
to the ports of New York and Philadelphia, will be given immediate
consideration by the proper bureaus, and will be decided as promptly
as the Department finds itself ready for action.

At the brief exercises held on July 1 in connection with the transfer
of various bureaus to the Department, I referred to the following
letter, written to the Marquis de Lafayette, in the year 1788, by Commodore John Paul Jones, expressing his views as to the new Federal
Meeting General Hamilton at the house of Colonel Van Courtlandt about this time,
I asked him what pro,'Urion was going to be made for the Navy when Congress came

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to enact laws for the structure of the executive branch as provided in the Constitution. The General told me it was practically agreed in Congress that when that time
should arrive they would create four ministeni; that of Fort>ign Affairs, that of
Finanee, that of War, and that of J uetice. And he eaitl it was agreed, for the present
at least, to merge the concerns of the Navy in the Ministry of War.
To this I at once ventured protest. * * * The situation of our country is such
that the growth of its Navy can not be long deferred; * * * .
Our Navy must grow with our commerce, and it is upon the !!ea, rather than
on the lan,l, that we must in future meet the nations of the Old World on equal
terms. * * *
The time must soon come when the logic of events will compel the <'ountry to
create a separate Ministry of Marine. * * *
Had I the power I would create at least seven ministers in the primary organization of government ·under the Constitution. In addition to the four already agreed
upon, I woulrl ordain a Ministry of Marine, a Ministry of Home Affairs, and a General Post-Office; and, as commerce must be our great reliance, it would not be amiBS
to create also, 1\8 the eighth, a Mi~1istry of Commerce.

I took occasion to say nt that time:
Tl,~ entire Cahlnet of to-day i11 embraced in thiH Rtatement, for agriculture was for
a time under the Minitrtry of Home Affairs.
And, gentlemen, we have now not the eighth-under which are appropriately
repre.-ented our great agricultural interel'ts-but the ninth , the Minii,try of Commerce, and coupled with it the Mini!!try of Labor. * * *
On rehruary 16 the entire penronr1el, strictly speaking, consisted of one official, the
Secretary. A few ,days later another official was added, in the JJeri'On of the of Corporation!!. To-day in the city of Washington, owing prindpally to
the tranqfers now rhade, the 1ieraonnel C'onsists of 1,289 persom,, and in the country
at large of 8,836 pel'l!Ons, making a total of 10,125. Thia latter number will be very
considerably increaRed at certain periods each year, notably in the Light-Honse
In the initial <lays of the Department the expenditures were principally the salary
accounts of two officialH; to-day the expenditures for. which appropriations ha,·e
been made are $9,796,84i, which large sum will be later augmented by such additional appropriationf! M Congress may eee fit to make to defray nece!!i<ary and legitimate expenses for which there is at present 110 adequate provision. * * *
We have intrusu,><l to our hands a great undertaking. * * * What we have
planned we shall now try to advance and perfect in the larger field that to-day
oi,ens before us, and we shall confidently expect to have the loyal and devoted support of the chiefs of the various buream, and of the entire personnel.








To-day the new Department moves forwanl, and as it take1dts place by the side
of the other great executive establishments, it will catch the step and the swing of
their onward movement in the nation's progreai and pro11perity.
:No other l)epartment has a wider field, if the just expectations of the framers of
the legislation are realized. None will have closer relations with the _people or
greuter opportunitiPs for effeetive work. While we can not 1ledil'ate a new and
in1pot!ing structure to the uses of this Department, we can at le.ast, and I am sure
we all do, dedicate ourselves to the work which Chief Ext-'<·utives have recommended
and Congress in its wisdom has set apart to be done. In this spirit I have thought
it altogether fitting and proper that we should have these brief exerd!'t'S, and that in
them we should emph81!i?.e the fart that if we are to have the highest 1:<ucct!t'I! as a
nation in our conunereial and industrial relations, whether among oureel\'es or with

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other peoples, we mllllt keep ever to the front and dominant always those st_urdy
elemeµt8 of character and the dependence upon Divine guidance which were so
signally shown by the founders of the Republic and to whi<'h we can not too often
revert in these busy and prosperous times which make memorable for us the opening
years of the new century.

The Department deals with the great concerm1 of commercia, and
induHtrial life. To be of service to these interests it must have their
hearty cooperation and support. It must be a Department of bfJ:,ineRS.
It must be progressive, but at the same time conservative. It mu!-t
not deviate in its course from the pathway of justice, strkt and impartial. It must be nonpartisan in the highest and broadest sense. It must
recognize no distinction as bet'\\'een large and 1e1mall interests, as bet-ween
the affluent or powerful and the humblest citizen. If it attempts to
occupy a field that properly belongs to private endeavor, it will i~evitably fail to realize the high hopes of it.'> present wellwi:-:herl'.!. · lt"must
adhere rigidly to the lines muked out since the foundation of the
Government for Federal agencies in executing the will of the people.
If these general principles are made effective-if ('Onservatism and
impartiality, coupled with ever-increasing efficiency, mark its administration-I can not but believe that this new Department will become
a mighty influence for good in our commercial and industrial affairs.
GEO. B. Co:aTELYOt:'


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