SHELDON'S FAREWELL MESSAGE
Advice lie lias to Offer (o New Lawmakers Regarding Many Mailers
of Slale Wide Interest.
iU
Ooidtor SI, .-,.!( !w- f..i v. II nu-ttsagc
n-iiil to tlir .-irsntur.- ttiin a lniClliy tl"C-
lllllfllt. COVM'll.g lll.l M subjects of Stlltc
'policy imil lruifl.iii .il riilif mining I In
I"'0imiiIii .1 i. n wl le'i X - 111 attract nii'i'i'
Mli.tfr nMlln.r atteiilion li to 1,1m iiooni
niciiilat li.ns t. lalieg I" tixat l"H. t '
vision of tli.. m'iI.' I'll'Niiry hiw ''i'"' '"
liquor legit lull..!'. 'I'll'' .n 1 1 "li "f bis
JIIPHHItgc (in II....C lopl.'it Ill" tl!'- I here
with. Illli. I 1 1 ti.l.-tiil(t ImiM li.l I'.lil-
IlltlllS ill- Uahl-K illl' II H folllWS
't'liul III. C'lMTiiiir In. dun ill-i li ' Ion
tu icfiif.- I. li vl"W upplh alious for par
ij.ili i.r to: iiuiiliilli.il i.f HPIilenoc,
Thill it:, iii'l. It -Iliiliiiili' wililori'c Iip
pushed li jthe legislature nml H l.'i:iril o(
pHI(1oll! I I- c:U.lhll.''llcd liy llll illll.'l.lll"lll
tu llu- oenstllutlull.
That it .l int In- i Mnhiisli.-d ill the pen
itentiary In iimiinf.i. lull' godo Hint I.J
till, v ;i I I' u ! xlntu IllSt II III hlllS.
Tllllt III') HtlllC If IMl It lit iI.H III" Ill good
coil lit It-ti it nd grr.it I'uptnu mollis have
been in. uk- (lining llu- last few years.
Tliiit tin' state carry 1 1 n mil insula nc
wherever cultulilu die piotf -i t Inn ha ben
piov Itlud
Ciiriirni-ndihg tin- Niiti"iiiil Hoard :is de
serving f Hi" mint loyal support liy the
cltlm-im i.f ttip stale.
Deploring that there are not hdl'M' mil
itia t timpani!- In I. Ini ..In ,'ilnl Omaha mi. I
pointing (.lit lin k (if Menus Ik till) ciiui-o
of InclMt luni-y.
Thai Hie atnti Lull. I ;irnnil.-H In those
cities which lire iiiulnt. lining militia com.
pHllll-H.
Thiit i. III. cm of inllii In c nniptiiiiiH li"
'appointed liy Die governor after ;i cum
pcilllw examination.
Calling lillrtltlon tu Hie fai t lie lm ap
pointed n i (.ininlflcn on Hip rniiserv ulluti
of rial nml resources, to eerie without pay
nml tu report In the governor.
Thill tin- ligblaliirc innllc pnnM.in so
tlml Neiiruslia ciin In1 I cprcseu I cil at Hi.-Alaska-Yukon
exposition
Tlml tlx- Kl.it.- fair i t'uiiiMlrt In i-Mtill'J1' I
n.i .po.-ilily as possible vvllh permanent
buildings
Coiinuf ruling the NiiIIiiiiiiI Coin xiini-l.
Hun us ii credit bribe t otumoirweall li i:iul
ptalsing tlii. Ncliriinl.il exhibits.
I'.oportllig Unit tin- silver service donai
ed by, I In- stale to the battleship Nebras
ka hud been presented at aSn Krancbtfu
June
Itecommcndlng the Icgtslatuie appro
.pilule Jlj.CfiO tu apply on the cost nf I
liioiiuinent tu Alualiiini l.lntolu op II:.
'inipltol grounds.
Calling attention to tlir necessity of tc
. pall Int nml Itiipnivliig miiih- purtldiin ' m
'tlip l iipltol. ni irc parlleuliii ly tlio I'.isi -Jment.
Com nfiliiu In Hip ri i'i.niinenilatlKii "'
tlio l. lie veli tlnarliiii Ciul a lljj ..tu. i.
minltal y riiiniiilxulun lm chI uiitiu- I.
inii'iivi"1!" ;in. KTn.iopiiaiii'n nw,-
dent to ciial.le 'the stale nut hill ItieK In
nmlnliiiii a live Ho. U KUiiraiillni' white
li.-t cleil.
Kavorltii: an appropriation to rnalile
the exp. I Inient Nlatlon In iniike l!iro.tii;n
llon fur tin- eurii nml pieetill(in uf li..
cholcrn.
rnvoriiiK t'.ieaiiH ho pi'oviileil for tlio ex-
tnlili-hiiieiit uf a l..i. lei lulu nil ill lahoia
tory. Public education.
Fteen.niiu inline liberal iipptdpi-liilli.ti:'
fur the trullilng of leneliers In the ptaP
tinivirilty and liorniiil Hehuohi.
I'HVurliiK an a.iiroprli.tlun of at l.nM
j:lii.O00 tu further junior normal work.
i-'avoiiiiK an itpproprintlon nsi:.i
Weak M lio.il dlstrlet".
niieililiK altelltl..ll to the fuel till! l!'i
li'eivai'cd valuation of h.hci ssrie nl pi.. p. r
ty will care fur the iioraml Kiinvtli of Hi,
Hlale liliiverflty and piov'.ile IneaiiM fu
.iiiiTfiiHiiiK the naliiMef. uf .s.hiio piufe-j-Hors.
Favoring an Inereavo in the xiy. of t!i.
i til v. l-y 1 1 y (iinipUM sn that an alhl'Ml.
Held a:nl a plure for ea.l. li to drill (an In
ptuvlili'd. rnmriiii; nppr. prlalU.ti tor aKihullural
PXM I llll..il work.
The enlalillalitii(nt of i.d.lit onnl cxpeil
in. lit Matlmis-. one to ..- in (Iip hiunt lilll.-
di.ilrii-l. another In tlie extn-iio ue.siiin
pait of Hie Mate and another in the Ini
tialed Hll.tloll.
That In KMZllitf eoiintles tlio euiinty
I'oanl or the people uilyl.l reiiuitc Unit
erup l.i ml la- feliiii-d Instead of ttniziiii;
lands.
Reduction in State Debt.
Th.-ie was u Krealer rediietl.in in tin
Hlale delit durlntr (lie Inst 1. 1. Minium thai
pver Im fore. On November ::tt. lyoti, (liet ,.
wpip w.unints inilstiindim; iikuIiisI tin-
tf.Mini.il fund amounting (o $l.'.iil.tTl.i:;.
'on November 30. 190S. I his ha. I been re-
jOui-Pd to J,RS.C3('.T2. The reduction In
,l!i7 aiiiounted to Sfi.tl.fiCti.A'j. an. I In 190s
ttiin reduction was J? t B. 4S.V0. nniklnf; a
total irductlim of $1.1 IS.OtO.r.'J.
TliP I -mill levy, pi'ovlili-d by law to re-
dii' p ll.p di bt, produced ilurlnur tlm blen-
tdiini. Gtti.i:3.n5. TherefoiP th lev.
which muilc for Hip genct'itl fund pro
duen.l JSit.lilS.Tf niorp than Y,nn lures
mtry (or the gi-w-rttl PXiienses of the stat,
KovPitinienl. and that milium I was up
pllPd on (hp payment of tin- debl. The
Ipvj" fur t."Mieml purposes durlnt; the bleu
nlnm vm.s ' mllit.. th,. b.nne as in prexloun
year '
i nlln.H a'.teiitlnn tu the report of the
euininlsfluiier of luihllc lands ami but.
KnRs lo the i fleet tin- iiermaiii nt sclioo!
fund Hlinuid b. n Itnl. in i d $j2.'i.&K7.fii) inn
nhowlii;: tbi-re is In all nboiit $.2:ifl.UfM of
trust funds in the permuuctn schmil
fund
ItecoiiimrndliiR u. clauiKe in tho law for
lii JMCiirtriR of public fun In. wi that (irst
i orlRaKi-s m roaj etalo or i.tln r securl-1
tie of i ipiui value may be used us n-.
curlty. J
New Savings Bank La.
Citllinp uttpntlurt to tho noisl In tl.l.i
ntitl for a law that will rnconi.m.. tin.,
wtuliilsliniint of prlvalp HiiviiiK banks
The conditions arc biicIi In most of the
.niNller townn of the state tlmt H wwIiiks
bank ot itself w II nut pay. and conse
quently none are establlsliiii. Two plans
hi aiun-'ested: Kit her I he. enactment of
luiil ial t-avlM-'S luinkti with ttte prlvlb't;c
of IihlvJiik brunches in vallous parts of the
stale, or a law aulhurlzInK and provid
ing for the establishment In rotuinprcl.il
banks of a aavInK department, but le-iuU-itiR
the business to be kept separate
Hrtd OlUlnet.
That luflslatlon e enuctod pruvidlne
In
ten st pa! I I hereon
Taxation.
The Mute bnaid of eiuallitatliin IIP 'i T
tl.li ailiiilulMtratli.il Inn ciiibiivured, mo
far as It was possible, to make tin' rtsn'-s-ineiit
i of properly uniform, no that each
ilass of pti.prty shniild bear Its Just
.i.portl .ii i.f Hip buideiiH of taxation.
To thin i-n.l. tli.- rnlon r.n llb: railroad
piopi rty, In I'l'i.', was IriereiifeJ 2. l' r
n nl. lum ai'eii made im other rail
rend pio.nl. Alto;itlier the iissesm-d
value uf mill .n l property In 1 i7 mid
i'.iS Has iiiere.ee J by llii! board, j,bi4,
III. Any oi.e who bus (riven Iho ipiestlun of
i: llro nl iisehsnieiit n i m il rolislderation,
mid J.i. k f iinlllailz.'il hliiis.-lf with the
fin is, miiHt realize that the railroad com
liaiiii s lire, cimip'iiatlvcly HpeakliiK. "ft
nultahly nss.'sseil. Home uf tlm roads
(those ciinlrif'i are sinall mo probubly
i m-si shi d nt a IiIkIiit value than Homo of
the other mid greater railroads whose
earuliiKS are iiiiu h larK'-r. However, these
li.e.pinlltleH ihiihI necessarily rontlnUH to
exl:t until the rallroiid companies fall out
wllli each other. At present there Is an
upl'iiierit disposition innotiK the railroad
l oiiipiinli to stHiid together and not KlV('
In format li.n cuneernliiK another company
that would be liplpful to tli u board of
eiiiallxatloii.
In 1007 the lands of this state weri as
st sed at appioxlmiitely $1 16,000,000, an
Increase of .ri."i,7ii0,000. This Increase was
bmiiKht uboiit from the fact that lands
had nut been assosed since the year 11)04,
and bemuse since that time there tins
been a Krtut increase In the value ot
lands throughout the state.
Differenco in Valuation.
When lb" assessment of lauds was re
Icnieil to the Mule lentil of eipiullZiit lull,
liiis y.iu, It was alumn'm that county
ai-M SHur h oi nut used the samn liiertsure
el Milne, The bu.it I ernl.'.ivonid lo eor
ri 1 1 that i i-iiilltluii ai d peirunn its duty
as llu- law n.i.ics.
It Is the duty uf the board of e.lial'lsi.
to II lo I'liiialino all clai si H of pfnrierti' SO
t..ii! the laii.ieii i.r taxatl'.ii lliHy lie
ci.il.illv shared. , .
The lii-sl ,.;siM .Hal. In a Juat syxtivn. of
In:;. ill. mi Ii t . pruvlue iii. ans fur si . mil
li i'.i u". -im lit. No i lass of lay payers
will it'll' I;i in ol' their nsseS'ihietit if the
l-i "lii-it y Im assessed unlforinlly lliioiigli-
oi. I the t'.itc. .
1 lie umMluii or taxation Ii nut an easy
one. I!ut .'.iivoi;.' familiar, with the his
tory of the ussessnieiil of properly of this
slate dm In;; tlie last ten year kin
II. ill the piopi-rty at the present time f.
ly far more uniformly ussosfeil Ihiit! It
was uiiler Iho r.l.l n i khiiu ri 't. -'
It l.i true Hint ii Is .UlYlcult for the
I. rill. I of I 'i I mi I i 7.1 1 1 Im i to du Juslbe In nil
liistalii'es, i nun,, no one cull have
ki'uu led;;.- of I he a. liiiil value of all the
l.i. pel ty In all pails uf the slate.
Tlie hiiar.l of ciim!i;;uliuii Is ( -uiiipor-cd
i t olliccrs elected by the people uf tlie
slate. There l,ei-.l he no fiar that such a
li-.n.l will ilellb.-i ately anil Inteiiloliially
.lo an Injustice to the taxpayers In any
li'Mi.UI i.r the State.
Powers cf State Oonrd.
The b.-iiliil t luilild i,,t ,c .li prlve.l nf tile
rluht t" l .v.ei- iiny class of prnpeity or
all ilus'scs ,,f pnperty cetuineii for si
ooi:nl. .N'.lll.er sho.ll.l the liiiard be de
prive! of ll.e rlKbl I" llse all the prop
el ly i.r in: ,- 1 1, ims of piuperty of a county
v. In n. cm, a:e, with other counties, such
I ' 1 -pel ly l as been ui.ili r-vnliieil.
When in reviiuii' law wiis first en
n t.-.l tlmt l.i i ill . . .l l.l lalrc or lowei' rill
cT Hie pi.ipi rt.v ivllhln a county, lint It
il l nut have Hie iij;lil tu false or lower
a:; i.i.-il 'i.lai i-lnis. l'.xia-rieiii e demon -Mval'-.i
that It was uei-esiiary to change
i.:e law. and etpei I. -lice baa also ilemoti
' liiiteil thai th" dial io wa I a wise one.
The law In thl-i n-.-.-.-ct should ho left
alone. There la no iii-ci-sstty for any
il.:ai:.' In t!i-' law In thN particular.
So fur ;is lit.- asscssni. at of lan.l is
concei i-eil. It Im a mailer of common
I. now - ii;.- H...I Hie per c at of liureise
in the nssi....,meiil of l.iad values In I'ulS,
mU'i the ('Xcii'ti' ii ol some psirts of tin
m.ih! I Ills illslrlct. '.in i. an d fiom the
east to the west. II is also tt matter o"
ceiiKiion kr.ow'l'ili;.' that the lands In the
ea.'il. I'll part are aHu ssel at more nearly
He Ir a. liiiil value than lliey ure In the
wisteui pa: I of the slate. There should
I.e u.i I'limplnli.t that such Is the case
1 1 cause tae people In the western part of
the rial.- lire still in that piilod of .!.
M lopnii-nt wlo'ii many sai ril'.ces must
liei cssarily be made, a good many of
which lire for Hie welfare of the whole
iliite.
Ar.sess'nent of Rallrcads.
So fur a the lands tiiid the railroads
are concerned. I am firmly of the opinion
that the railroads, with the exception in'
llu: I'lilna I'nclilc Kailroad eojnpany. are
assessed us blgli 111 pro. oi l Ion to tjielr
actual v:,lue ns are the farm lands of this
stale. I believe tho atisi-sxineut of the
I'n'.on I'aclile Knlbnad eompaiiy should bp
stMl further Increased, in Justice to the
other taxpayers of this state, and have So
maintained while acting as a member of
the .assessment board.
S." far ns the elect!. in nf assessors by
prei lm t is cimci rneil, that Is a different
matter, and to thiit I have no objection If
you deem It wise to make the change.
If any Hiiii inliiii-iits lo Hie revenue law
an- made, the ohjei t should bo. to secure,
l!' possible, a more Jusl and e.iultahlo sys
tem of taxation.
A glance nt the grand assessment rolls
of this state will convince anyone that It
I more necessary to devise ways nn.l
ii. cans whereby the owners of personal
piuperty niny pay more nearly their pro
portion of the tuxes than to make atnund-
iii. -nts .which will restrict nnd He tlie
bunds it the hoard of iipiallz:ttion.
In 1'C the personal property of this
state, oher than railroad and private car
service, was 7',or,;!,0Wi; In 1907, JS3.1SG,
100. and lu I'Jts, $.s2,5."3.00ii.
Anyone who Is familiar with the condi
tion!: hi this (stale knows that tlm actual
Value nf persotliil ItiriMTty In I'JOS was
greater than It ws 1n I:iu7, yet the grand
assetsnieiit run hIiows a d.-i reiise of
$.'3:!.ow.
The holders of the invisible personal
ptoperty evidently have discovered vari
ous wavs of concealing their property.
When the new revenue act was passed In
li-M, und first im it0 force, there w.p
fill publicity of county f inula and tlm
a K''ent Itirren.in In tlie assessment cf
pi-rsui.iil property. It Is will worth your
while in. I alterillutl to Hud out what
manner and methods the persunul prop,
irty owners are einpluylriH to conceal
their property fiom assessment, utnl to
II 'Hi-nil the la A', If ru ed be, to that such
aellun enn bo prevented.
Record of Legislation of 1907.
I am 'l.iAcd lo Inform you tbn rallwny
c'.mmls.ilon i-Htlniiites that silipers un.l
inn seiifeis of this state hrtVB been saved
.i,000,ouO as a result uf legislation passed
by the last letflslature, reJuflnK r"ii"e"-
Hi r fares to i cents a mil"; express rares
i'o per cent; nnd freight rates, on k'raln,
Ihu sluik, fruit, lumber nnd coal, and
oiln r commoditl'-s in i urlo.nl lots, IS per
1 1 tit.
Kxperlenee has demonstrated thnt the
t'rmlnal taxation law which was passed
by the last legislator) bus provided a
mi. re eipiitable system of taxation, and on
Hut whole has len beriefl. liil to the tux
(uiyers K'ShliiiK In the cities and villages.
The last legislature ahiu passed nil nd
tu control lobbying and to prevent corrupt
practices affecting legislation; abollsliel
tlm frie prts evil by enuctlng mi nntl
p.iss law; eniielei u htule-wlde primary
law, requiring political parties to noinln
iitn their candidates ly direct vote of tho
people, and gave the railway commission
power to tuit nn end to rebutes nnd dis
criminations In transportation, to make
and to tlx rates, nnd to Control them
properly In all particulars. Telephone,
telegraph, express and street railway
companies wero also placed tinder tlio
rontrol of tho railway commission.
That legislature passed a pure fooJ
law and an employes' liability act. It
eniict'id laws providing for neglected eltll
dron; provided for free lilgh school privil
eges for normal training In high schools
and assistance for weak school districts;
prohibited pooling by bridge contractors,
and provided a way to remove offb erw for
willful neglect of duty mid failure to en
forcu laws.
Primary law.
The primary law should not be repenled
but in some particulars should be amend
pi). Provisions should be made for a ro
faled ballot. The. preclm t -committeemen
should Im seU.-ted. by the voters at the
primaries Inst. -ad of belni; appointed' by
the couutj caniliilates, as now lrvl led.
Tln re, tihuuld be n ilifTenuit provision
than that now continued In the law e
tufillni: platform coi.Veiitlehi'. Now. each
t oiinty Is i nllled to one del -gute. This (s
hot repi M.u Illative'. Another object t''u' Is
that .the platform i-oiivenlluti is n'.t lii-M
li ii III nfter the primaries.. A p-.rly plat-.
fol ia should be pj-ninuliuiteO t efore the
cahdiilutcH are nominal i. Provisions
should b male so liy - The platform con
V li lb mi shall he h"-.'l Ik fore the prlmarlej
or Hie niiitter,...' platform-making U ft lo
Hie caudijil..'.es Humiliated by the respec
tive in. .ties.
Stcrllzatlon of Delinquents.
"Those dependent upon tlie slate have
been Increasing year by year, and more
particularly the itrsane and convicts. Till''
hi a umlW-r lor cxecedlntjly serious con
slil"i at ion.
.Society Is Jusllliul in adopt Iuk Such
I'ollcieM. and In carrying thorn out against
liidlvl luals. as will in Hi" long run tend
to help elevate an. I porpoltinfo the hu
man race. Careless and lll-advlsed mar
riages have had a great .leal lo ilu In In
cn using the dependent classes and 111
I inducing untold miser y. 1 therefore
recommend fur your earnest conslder.itton
a . liatipe In our luarrlnge livvs so tiiat It
will be Impossible for nny man or woman
to many iililll a eertllloute from a physi
cian license I to practice in lids slate has
teen presented, containing a Matcmcnt
thai their health N good and that they
are capable of preiluclng healthy ofT
i'l'iing. Those wlui ate a burden upon
mi. cit-t v should not in' pcriniUcd to repro
duce themselves.
la onler to prevent the confirmed crim
inal and tlie incurable Insane from pro
ducing offspring 1 Niiggest that you give
careful colisldeiatlon to the necessity of
passing a law providing f"i' the stoilliz.i
tion of Hint class of people.
Regulation of Liquor Traffic.
lu my opinion the lime has come for
iiilv.ince.l legislation to better rejjulate
and control the Uniiui ! raffle. At the pres
ent time there i:i no polltl .al party which
1 uhllclv will "stand pat" on the Slocuail,
law. ''"lie ile::i:mds of the hour call for
Itgislatloii to control aid regulate this
H.itlie ill in'i"l'd:tiii -e with tlie present
conditions and net-da of the st.it.'. This
uuesHon should Pot be permitted to drsg
along until legislation is enacted that
will satisfy only the the extremists. In
Hint event the legislation will probably
be that which li minority rather than a
majority approve. Kxpei lence in the cu
bic, eniciit of the Uo'.ior laws demon
stiutes that It Is difficult to enforce
these laws in any community where pub
lic sentiment is against such action.
The saloon as It now exists Is hide
ft nsllile. It breaks our laws, corrupts our
politics, ill grades our men and fills our
prisons und asylums.
This ipiestlon must be met in n practi
cal way. After careful consideration 1
have conn) to the conclusion that the pro
per thing to do at this time Is to pass a
stiite-wije prohibition act. making pro
vision bo that any municipality may sus
pend such n act by a three-fifths vote,
mut in such instances to have liquor dis
pensed us may be provided by law. This
will put the burden upon those who de
sire of make n profit out of the saloon
business, rather than upon the people of
the state who desire the saloons ubol
Ished. I therefore recommend thnt you
pass such an ai t and that you also sub
mit to the people of this state a consti
tutional amendment embodying such pro
visions. The Anti-Treat Law.
""lii"the early part of my administration
t was reiiuested by numerous petitions to
enforce the untl-treat law. To sueli 1
replied that I stood ready lo do nil In my
power to enforce that law, but thut noth
ing could bu done unless those, who had
know-ledge of Its violation would them
selves take the Initiative in securing the
evidence, presenting It to the prosecuting
attorney and standing behind the com
plaints. . This pnrtlculur section of the Slocumb
law 1ms' become obsoleto and Is a dead
letter. If It could be enforced It would
be one of the best possible measures to
prevent Intemperance that could be pro
posed. Therefore, I recommend that you amend
this particular section, known ns Hectlon
31 of the Compiled Statutes, so that the
authorities who grunt the saloon llcmses
will be compelled to revoke a license
whenever any person dinks liquor In a
saloon that ho bus not himself paid for.
SHALLENBERGER'S FIRST MESSAGE
Urges Passage of Bank Gnarantec Law and Makes Other Recom
mendations and Suggestions.
Following Ih tlio principal Hubjccts
touciVd niton by Oovurnor Shallcnbor
Kt In lila first nieHaiiso t" tLo NcbrtiH
ka lcglHluturo:
To the snnatu and house of rcprpsentn
tlves of th'j thlrty-nrst session of thi Ne
braska legislation: I congratulate j-qii
upon being called to serve In your legis
lative cnpaelty at a tlmo when tho stnte
Is enjoying general prosperity. Nature
lias been kind and her yield bountiful.
Our people are Industrious and tho de
mand nnd prices for their products satis
factory. Our population Is not dense,
probably less than ono and one-half mil
lions of people dwell wllhln our borders.
A study of tho records of our bureau of
statistics will show how marvelous have
been the achievements of theso Inter
jf-ars. Ho rich our soil, so matchless our
climate, so wonderful tlie Industry of our
peoplo that hern upon Nebrnska Doll,
American civilization In Its highest devel
opment plies up each year u larger sur
plus of useful products than a Ilka num
ber of people can produce upon any
other spot on earth.
With a clearness of vision and under
standing as to the purposes and possibili
ties of legislative enactment, a steadfast
and successful people will not expect of
you Impossible things or unreasonable
lnws. Having wrung year after year,
great riches from a generous soil, they
now know that they can compel prosper
ity to abide with them always. They will
however, expect of the purty, whose
members control this senatu and the
house, tlio speclilc legislation pledged In
the platform upon which you were
elected.
Coveriicir Sheldon has detailed to you
tho result of bis administration of slate
affairs, and you have listened to his rec
ommetulatloiis. ' I urge thut you give
i uniesf and careful consideration to all
thut he has said.
I shall briefly fall your a.tuntlii -to
te'iiisliitloti. the prospect and hop ;f
.1-I.I..1.' In me miliilun . has brought about
this change In The control ol the ;:
live ntid legislative department of' state
Bov. rniit.iit. It Is tini't to be hoteil that
no new or radical li gWlattorv Is asked fur.
Every suggestion is.. but .to -amend, ,corj
rcit, or Improve some existing law.
As a general rule, we.u'.ready have too
..ai.iv laws Incumbering our Htatute
books. Many are good. mtn Imperfect,
a few bad. Tlio good shoul I be let alone,
the Imperfections cured, the bud repealed.
What Is needed. In my Judgment. Is up
honest and fearless enforcement of the
Inwi that we now have, rather than a
. i nstant cry for new laws, utid new law
us an excuse for inaction and d.-lay.
Tlie matters to which 1 wish to call
jour especial attention are not numerous,
but I believe them to be Important.
Ihull present them b you under sepa
rate heads.
Suggestions as to Improvements In our
Banking Law.
Andrew Carnegie has said. "A merle i
has the worn banking system in tho
world. " 1 scarcely think tlie facts w ar
ia el such a slaleuieiil
Ic
i! will venture
tl pinion that we ha
svsiein that It is possible
c p it Hie best
for ua to obtain
and nothing hut tin
best should be B''d
enough for Hit
people, of Nebraska, nur
present law Is very
much In advance in
ill that pertains to sale and proper oaiui-
i,,.. i,. tin. lm which iiroteeil'd it. No)
one villi venture to maintain that the one
now In force, Is perfect, therefore, vie
are warranted In asking for still further
Improvement. Tin: pi ini.i ry purpose for
th., establishment "f banks so far lis the
public Is concerned, is tlrsl that the peo
ple shall have a safe pl.o"' to deposit
their money, and s ml that those who
nei-1 them may conveniently obtain fund
upon proper security after the money
shall have been gathered together by tin
banking corporation.
The Ideal system of banking will guar
antee to d-'poMtois the nl..4oh:to certain
ty of the return of "Very dollar lb-posited,
and H.is will Ir.sure the greatest m.s
slble volume of loanable f :n.ls In bunks
for the needs of biisiiwrs. Tin- state un.l
nation should !ee to it that every safe
guard shall be provide I for tlie security
of tho depositor since they permit ami
authorize the receiving of deposits under i
the sanction of :i chart. :r grunted by Ha
state. From time lo time, these guaranties
have been lucrea-ied until losses to de
positors are rare Indeed The report of
the comptroller of the currency for 1!H)S
shows that a tax of one twenty-sixth of
one per cent levied upon the deposits In
national banks during the forty-live years
that that system has been In existence
would have raised a sulllclent buiii so that
no person, who had trusted Ids money to
a national bank, would have lost u cent.
A study of the llgures of our ow n state
bunking department shows even u more
satisfactory condition. Oi.ly during the
lust eight years, bus tho law provld.-d for
a complete report from receivers of fulled
banks. During tills period n tax of less
thun one-thirtieth or one per cent levied
upon the deposits In our statu banks
v.oul 1 have raised k sum sutlbienl to
have insured ever) depositor ugainst any
possible loss.
With these facts before us. I do not
hesitate to say that it is u rejection
upon our American civilization and busi
ness methods to longer fall to provide an
Insurance guaranty fund and barikliiif
law which will inuko every dollar do-
I posited In a Nebraska bank absolutely
sum of being returned to Its luwfui
owner upon demand. Certain deposits are
now secured In state and national banks
by safe guards In additiuu to the guar
anties which the law exacts of the bank
er to ptotect Ills Individual depositor.
Tho county, the state and the natktn hav
ing found by experience that the secur
ities which the law provides for the or
dinary depositor are at times Insufflcltint
ami therefore rcijulrpd thut the banks
Fhull ut their own expense deposit bonds
as additional security to protect them
npnlnrft any possibility cf loss.
I believe that the desired security can
be obtained by levying a light tax upon
the capital stis k of each bank transuding
business under our laws, thus providing
a guaranty fund to pay promptly uny
possible los-s to a depositor by reason of
the failure of a slate bank. The amount
of such tux to he a certain per cent of
the average deposit u shown by thn re
ports of the department of banking und
payment to be made at stated periods
nnd for u llxed amount.
Our state department of blinking hus a
completij record for the past eight years
showing Hie tesult of receiverships of In
rolvent state banks. This record show
that since 1900 a total deposit of $515,
"C4.111 hus been placed In Jeopardy by
reason of the failure of stale banks. From
tlm assets of these Insolvent Institutions
depositors claims have been liquidated
until tho balance unpaid fur the entire
period of eight years Is $198,2&5.23 or an
nverugo annual loss of about 000.00 to
depositors. Creditable us this showing Is,
1 fea;l quite certain thnt with a number
ol' Improvements which con bo made In
our present law, the p.'iceiit.'igo of loss
can still be materially reduced. The
minimum capital required for the Incor
poration of a state bunk should be In
creased to at least Jl5.00o.u0. Hunk ex
aminations should be made twice a year
instead of once ns now required. Kx
amlners should be assigned to a certain
territory und thus eventually would be
come familiar with conditions and secur
ities in that locality and would ucqulie
'he necessary knowledge us to the worth
of the bills receivable of the banks which
they would examine, which Is the essen
tial tiling In determining Hie solvency of
uny banking corporation.
Under a guaranty plan which would
make the bunks of the state sustain the
losses of the entire system, the bunkers
should be given u share In the control of
the department. The present bankinp,
board, which Is composed of three ofTlet rs i
elected for an enllnly different purpoae.
should bo abolished and a li"H-p,trtlsan
l.oard established to be i miipinictl of three
members appointed by. the governor each
of Its members to h.ivo ha 1 ;it least five
yeurs' practical cxi'oiiciicc in Laiiktng ami
it least t-vo of llu'm to b- actively en
gaged tu that' bii.s-Ir.i.BH at: tlie time of
their appointment. . A Kink ci.mmhiaionei
should be uppolriW h.v .the 'pitverfior with
the approval of th,. ..banking 'board, wXio
rhould -hav'e Jufit ah i -x per It rice, in the
banking bu-Jiicss Vipiivnlent tii that 're
quired of a rneiiibei'df the boai'J. iln'd lie
should sileit the neci'SHiiry number of
examiners with Hie approval of the board
o:' control. The banking board should sit
In session at Lincoln at stated piiio.U
and be paid for the actual time In ses
sion. They should have complete Con
trol of the Issuance of charters and the
general udmlnlatialiuu of the . banking
laws. It has been urg. d by cl itics of the
K mi runty of dvpusiis plan that it would
lead to the estul llslmu nt of too tunny
I-unks. This would be a serious objec
tion If sueli were the i t suit. It would
greatly slrengt hen our banking system il
the banking board were empowered lo ex
er. l e a proper cerisui ship over the issu
ance of hank i hal ters.
The possibilities of piulit to be mad.' In
taking other people's money on deposit,
C'.'ii:lng It 1o Ihc public ar.u -.e.-plp.-j th
interest thereon i-i so alining that :t
times the number i f luniks Increase i
rapidly than '.he needs i. buslnes requite
with cor.s.'.nii-rit ovcrl .aiilng. hazardous
risks, extravagant in building.-, and ex
.tn:;es with the rcult that in lean year:!
failures ocelli' and Innocent people suf
fer. Tin- ov el issiiane,. if charters can be
in a great nieasul ov rtom-. by IneivaSeil
requirements ur t . the amount of capital
stock necesssuy to l:(. paid In by the
stock ladders before a tluuter shall Is
sue. The amount rcquin .1 In each in
stance should hear a proper pioportbui to
tlie population of the town or city In
which the l-.'-.nk in to he estoblislied. As
in example, showing the manner in
which .requirements as to r.'ipitul iifr-cl
Hi" number of haul; cliarlcis issued, :i,!i.
niillolial b::r,k': h.iv,. been orLranlxe.. sine
!1'"0 when the r.-qulii-nierits o capital
..to.k was reduced to .ej.Vu.o.Ou us the
inlnh'.iutii. 'i'lils is :;' i.ii'ie hunks than
th" entire I'Ulllh"! in t i''lcl. e. Wild! tile
law was chaiue.l In that respect. The !
i! 1 1 1 1. .n of the minimum t apitul stock re
quirement to JJ'..."MM'U has Mould. -.1 He
number of iiailon.il I .auks In i Iglil yci:is.
A substantial Im leate in the nun,. net re.
quired as a minimum tupital fur the e
lablishinerit of state hanks would have
a salutuary effect in keeping Hie number
of banks within a sal isl'ai lore limit and
also provide greater security to llu? d"
positnrs. As to the amount cf assessment to be
levied in order to provide an n lequat
fund for the prompt payment of deposit
ors of Insolvent banks, I would suggest
that one-fourth of one per cent be levied
upon the deposits as shown at the las'
statement published piiur to the com
mencement uf the operation of the law.
and this assessment to be followed with
additional levies In like amount nt period -of
six. twelve, an I eighteen months
thereafter. After the accumulation of a
guaranty fund equal to one per cent o
the average deposits in the guaranteed
banks, an annual tax of one-tenth of on;
per cent should be levied, because It Is
necessary under it proper system of Insiit
net e that the prosperous years should
pile up :i surplus fund to provide for the
Inevitable demands of less fortunate
times. As an additional security against
uny possible emirgency, tiiuh us extra
ordlnury demuinlii upon the fund thu
board should be empuvv t-rid to levy an
assessment of not to exceed two p.-r
cent of the average dip. jilts in any one
year. While this assessment might never
be levied, the power to use It would have
a sustaining effect In times, of possible
punlcs. Such provisions Would result. in
accumulating in eighteen months wiiti
the average of deposits 'remaining in state
banks as st t present a guaranty fund pf
JllJ.351.0li. Thts would be- U7,Oi7.O0
more than the entile amount i.f depooslts
Involved III lank failures i.i this stale
In the last nine years. It Is three times
the amount that would l.uvo b, en ticct-3-sary
to buve pall uK.n demand all t It
money due depositors In failed banks dar
ing .tli- years with the heaviest failures
of uny In th" past decade. It Is seven
times as much us would have been re
quired to pay Immediately nil of the de
posits lied up lu state bunks during uny
one of the last seven years. With the
additional amount that would be contri
bute 1 to such a guaranty fund during the
yeurs when no failures would occur und
ndded to tills thu power to ralso la uny
one year by extraordinary assessment six
times us much u has been placed In
Jeopardy during the worst year that we
have experienced since tho present law
was established. It is my Judgment t liut
such a system would be a ruck of refug
for the banks utid fur the people In the
fiercest llniinilal utorrns that may come.
I desire ul this time to congratulate and
commend the management of our pres
ent banking department for the splendid
results It lias secured under the prcseiir
law. It Is the nhowing of exceedingly
small losses suatsilui'd under our present
management and system which gives us
ctuiftdencH to believe thut with Improve
ments In our luwi us to capitalization,
iiiunagemelit and control u still better
showing cun be iiccetiipllsbed. Tho pro
posed guaranty fund under silt h n sys
tem us lias been suggested should be de
podted with the Htute banks under regu
lations sinillur to our present state tle
porltery law or with such ii.ldltlonul se
runty as the legirilatuie may require, Thn
proposed law should provide that na
tional banks 111.1 avail themselves of tlio
advantages ami protection of the guar
anty fund under suitable provisions and
satisfactory showing as to the condition
of such bunks to the banking board.
The banking board should be empow
ered to fix the? rate of Interest to bet
paid depositors by banking corporations
operating under the guaranty of deposits
law, or if thin lie thought too great u
power to confer upon litem, the rate
should be llxed in the s-.ntute by the
legislature.
ReveniW tv,
Our present revenue j.it houM be
n mended hi so fur as Is necwa? to re
store to the people the right to ew'. the
precinct assessors and to limit In Vtrl
at least thn arbitrary powers which V
present law gives to tho state board
equalization ati.l assessment, so thut tint
people shall have restored to thorn some
voice In determining the amount of
luxes they shnll be compelled to pny tr
support the st ite government. It uppear.t
to nn; too great a gift of power to give
to the stiite an.l comity boards the right
to determine the .imoullt of the levy
v. Mch shall ! lultl upon the property of
llu.- citizen ami sit the same time empower
the state board lo determine through, its
mandate! to the' niutity tissesors and. his,
deputies ike valuation that shall ; bt
placed upon the pnipurty of the tax pay- "
.eis, When v consider thut the rnembers
nf this all powerful board of nsses3iient
.acting .In their, official rapacity us .'the
hf-iids of different state departments 'tire
authorized to spend the money taken
from the po'i kets of the people by '. the
force of this'fsitne revenue law, the dan
ger luiking in this excess of power ' bo
conies inure upparcnt. It is to be re
ma iked that .HfTerent rtute departments
haw cotiiiueiKled the present law because
it provides much money fur their use. It
Is generally to he noted that those who
puy out money which others must pay
In, view the magnitude of the amount to
be expended with greater cqunnmity thun
those who have to provide It. The cost
of our state government has Increased
enormously In recent years. I wish to
Impress upon you that funds should be
piovlded to meet every legitimate demand
of the government, ouY different state In
stitutions ami our school, but every dol
lar that t otnes out of the treasury must
have been p.il.l In by some tax payer
and the grestt bulk of the state's Income,
is dug out of the soil by Hit; unremitting
toll of those who can HI I'fford to pay
fur extr.iViii!g:ince or iinnect.'siiry expellee.
The Primary Law.
Our present primary law is unsatisfac
tory ami unfair la many of its provisions.
The expense to the state in holding a
state wide t.rliunry Is enormous, :i. un
I'ss the I'li'ctioti results In leglsterliiff
the will of the party majority of those
voting ami placing better candidates be
lt te the poople than the convention meth
od, th" benvlits of the law cannot be raid
to variant its cost, t'nder the present
law, the ticeldcntal alphabetical position
id the caiull lates named upon tlie ballot
is al,tinie more potent In obtaining nom
inations tlisin merit or ability. The num
b.r of names required upon the petition
of a cr.ndiil::!.' for a state olllce, Is gross
ly Insuflit lent. The cost of elections
both lo tlie laiMi. lates und tin; state Is
grcaily lm cased. It Is doubtful if the
average t-let tor will i-v-r have the re
quired uc'iuainliiin with the long list of
candidates for the different olhces upon
the ballot i:i a state wide primary to In
r.ure Intelliyeiil selection. I would sug
post to yon a uiiintyprlniary to nominate
county iif!iterr. anil delegates to a statu
Lorivt ntion. The slate convention to so
led two or nnu'e. iinines fjr each ofllco
to go upon the primary ballot and to
make tin? party platform, which ought to
be Issued in advance of the primary, In
stead of subsequent to it, as ut present.
Administration of State Institutions.
1 would suirgest thnt the constitution
I-.- su allien. led that a non-partisan board
of control could be created to be ap
pointed l.y tlie governor and have enn
fertrd upon It the entire management of
our various slate Institutions. The state
institutions should be removed from pol
itics as far as may be done and merit
alone should tbteitnlne the right of any
person to serve the state In tlie dif
ferent departments made subject to tho
board of control. This board, in my opin
ion, should ooni-let of three members and
have ut Its command the state account
and a uunlifled purihas'ng or business
Hgent, who should Imve a general knowl
edge as to machinery, material nnd con.
structlon contracts an 1 of all matters of
business coming before the board. This
board of control should purchase the
supplies for ull the state Institutions by
open competition among those desiring
sell to tlie state. The practice of main
taining :i cash fund at the various state
Institutions should be abolished and thn
business of the state so far as ll applies
to the K"nerul conduct and administration
of the different slate institutions should
be thoroughly systematized.
It Is my most confident belief
tliiit if VO'i provide satisfactory legisla
tion relutltig to the question to which 1
have referred, you run g" home with the
Lirtalnty.-that you will meet a satisfied
ct nstltuer.cy. 'Wit it a linn reliance upon
the w isdom und Judgment of this legisla
ture and hope that with your assistance,
we may tocdher In some fair measure
fu I fill the hopes utid meet the expecta
tions of the citizens of Nebraska, wlit
hum trusted n" with power, I submit
these m'estiuiis to you, gentlemen of th
housu ur.d senate.
li
