H * fiOYESNOE'S MESSAGE
HFi A VERY LONG AND ABLE
l | $ DOCUMENT.
m v&gr
BK Sp T J1e 3f < rtra'B Executive DIcusbos Ktato
W WT Affaire Thoroashly and "With Becoming
Wm l > IJIcnity Defends the Statn und Makes
W B\f- . U umlcr ° r Bccominendutlojw.
H i\li _ _ _
VaJtE SECTION TWO.
HHkIt ' " A SMALL I > BBT.
P ff In considering the uncollected taxes it
V * > VH' * fl t0 * > e borne In mind -that a very con-
w " ? 9Bk fslderable part will probably never be paid
K L 3nt0 th < * state treasury. Willie these condl-
j MfcC * ! 41ons are not what we would like to have
K B * -them , and realizing- that they have been
K 'brought about l > y extravagance and need-
V Bf less expenditures , and 'by excessive appro-
V flH ; prlatlona covering a j erlcs of years , It Is
att > "et < luile apparent that the Indebtedness
B Hfe of tne state of Nebraska Is comparatively
V flKi light. 31 Is no greater than that of many
Hf- other states whose opportunities for creat-
R B , ln ? a large bonded Indebtedness are not reV -
V strlcted by the fundamental law as ours.
hKW ? 3t Is interesting In this connection to study
HKcrthe grand assessment roll of the property
VHif of the state returned for- taxation , show-
H IMftl ln the total assessed valuation thereof ,
Mu for several years , as follows :
MH1890 51S4.770,304.54
K K A 1S91 1S3.13S.236.28
E Hi iyc 1SG.432.37S.71
K. 3R)3 194,733.124.73
K Hm 1S9J 183,717,49S.78
| V * 1J > 95 171.4C8.207.4S
K r 1Ss9 < - 1C7.078.270.37
HF | The census of 1B90 discloses that the
Hl value of property of the citizens of this
Hm state is estimated to be $1,275,055,514 , and
K , ' the actua * value of the assessable property
K > in the state at this time must be con-
B K\ siderably more , and yet. as shown by the
Rn assessed valuation of all taxable property
BJKif \ for .the year 1S3G , the valuation is placed
B X > * at DUt little over one-eighth of the actual
BflK value based on the census returns of 1S90.
Hfll THE GENT3RAL FUXD.
EC * The large amount accumulated in the
Hp ) general fund mentioned above , S5S9.370.39 ,
Hp is one of the features seemingly calling
H&y for some comment. It is difficult to under-
Bl' stand why this large sum should be alB -
B [ } i lowed to accumulate in the state treasury
HP \ with so great amount of outstanding war-
Ej ' rants unsatisfied. It would naturally be <
JH expected that such a considerable sum as
Kj this would -have 'been applied to the reduc-
Hr tion of the state's indebtedness as rapidly
HH -as it accumulated , as is provided by law ,
Q and demand in the exercise of prudent
Hm 'business management in the discharge of
Hnh a public duty. In defining the duties of
Hf the state treasurer , the law provides that
Vt "he is "to disburse the public moneys upon
Hfi. -warrants drawn upon the state treasury
HV- Jiccc-rding to law and not otherwise. " It
BL\ is also povlded in section 1 , chapter 93 ,
B BVr that "all warrants upon the state * *
HBfj ) * * fihall be paid in the order of their
Hk presentation therefor. " Section 4 provides
K | " that "it shall be the duty of every treas-
BKk -urer to put aside in a separate and sealed
B f package the money for the payment of
HK [ -eac'h registered warrant , in the order of
Bsuv its registration. As soon as money suffi-
Bmn # eient for the payment of such warrant is
ftjRfl Teceived to the credit of the particular
Ejju fund upon which the same is drawn , such
HBipackage shall be indorsed with the num-
Hl ber and description of such warrant , and
B , the name and address of the person in
H | | „ whose name the same is registered , and
W > i interest upon such warrant , shall thereupon -
H , ( -upon cease , and such treasurer shall by
B mail immediately notify the person in
B BKl' . whose name the same is registered and
B BjK -shall indorse the date of the mailing of
B B&jT'such notice upon such sealed package. "
K BK ; Thus it will be observed that it was
B BST the intention of the legislature that no
B Bfffund should be allowed to accumulate
B BC -when there were outstanding warrants
B Bk. -drawn against such fund , and that as soon
B BJE ; as sufficient money should be paid into
B Bf3\ \ -tne state treasury to satisfy each warrant
B Bfe * , . in the order of its registration , that inter-
B BB \ -est thereon should cease and the state be
B BS ? \ thus relieved from further liability on ac-
BBkT rcount of accruing interest. While it may
B Bf ) ' "be ? aid that a literal compliance with the
B BS * provisions above mentioned would be very
BBBfi difficult , because of the great volume of
B B U "business carried on in connection with the
Bflff * ! work of the state treasury , yet its spirit
B PK -could be fully complied with by making
BflHEi prompt payments on general fund war-
B BBt rant1 ; as rapidly as funds accumulated in
B BB / the state treasury therefor. This act of
B BjPi the legislature , both in letter and spirit ,
B Bmt , .seems to have been entirely ignored and
B Bffs , the general fund , against which a large
BBBJk amount of outstanding warrants has alB -
B BffL ways existed , allowed to accumulate to
B Bfflt the extraordinary amount of over half a
B BftjK -million collars. This method of disposing
B BBji of the state's business put an additional
BBB B tourden upon the taxpayers by the accu-
B BBfi mulatlon of a large amount of interest on
B BB # she unredeemed warrants thus neglected.
B BJBJn It also endangers the state's interests
B HK through the possibility of losses of money ,
B BSr which could properly have been disbursed
B B K in cancelling this indebtedness as rapidly
B Bf as possible. Tne suggestion that the state
B BfcjXv is receiving interest on the- money thus
B Bttg ! allowed to accumulate in this unusual
B BBcKmanner may properly be met with the
B Bftj | | ) statement that such interest is only at
B BBEr the rate of 3 per cent per annum , while
B B Bl the state's warrants are drawing 5 per
B BHF cent. It may -further be said that it is
BBBR the dutjof the state , through its repre-
BBVtt sentatives , to liquidate its indebtedness as
B B Eft. rapidly as funds accumulate in the collec-
B B Kft tion of revenues for that purpose and there
B B Bl ky enhancing the value of its own obliga-
B BVp tlons. Likewise , to the suggestion that it
B BjEjrf' ' has been a critical period for the banks
BBBjnt of the state , as well as for business inter-
B B S * ss of ail fcInfls. it can he replied tnat
BB apt the state is under no obligations and that
BBflQT in fact , it is a pernicious doctrine to hold
BBBkL tnat the public revenues may be used for
B B the purpose of strengthening any private
B B BJl interests or enterprises of any character ,
BBB Ph nnd espscially so where there are superior
BBBBf \ calms against such funds upon the part
B B BnJk . of ; he creditors of the state. The state
B B BjS\ \ { is not supposed to use its revenues for
BBBB ? the purpose of entering into the banking
BflBB ; ) 'business or to deposit its funds upon any
BBBBH other theory than that they are to be
BBaBl us&iby the depository only when not re-
flp' quired 1-y the state in the ordinary course
BBBV of its business. It is to be .further ob-
BBBfl .sen-ed that this fund at onetime was
BBBBT within reasonable limits , not exceeding ,
BBBBl according to the report of the state treas-
r urer on the first of January last , the sum
BBJF of 552,733,91. Under no process of reason-
BBP ins can I understand why this further
l & . anfl larger sum should be deposited and
BBVflallowed to accumulate to the enormous
BBBflui amount mentioned with obligations of the
BBS * ? state pressing for payment and the value
BBVof its obligations constantly depreciating ,
BBVand then , after such large accumulations
BjV are permitted , to have the matter ex-
BBIfcplamed by the suggestion that these funds
BBSs could not with safety to the business inter-
BBVf ests of the state be withdrawn from the
BflBl depositories.
BBare a change needed.
BBf I am of the opinion that there should be
HBt. averj * radical change inaugurated In the
R conduct of the financial Interests of the
BBaBr state and prompt measures taken to place
B\ \ the state's finances upon a solid footing ,
BBB ) as much so at least as surrounding con-
BBW dltions will permit. The accumulated genE -
E ] cral fund should he promptly applied to
R/ / the extinguishment of the indebtedness
KJagainst \ it. "UTiether there are legal ob-
Bb1- - * stacles which would prevent your refund-
BBS , B ing the indebtedness above mentioned con-
BK-i Y _ tracted prior to the adoption of the present
BlT constitution , I am unable to speak ad-
BjCh visedly. If It could > ba done , I would sug-
K' all the
get the advisability of refunding
Hktfi ( bonded Indel tedness of the state at a rate
BBf , of Interest not exceeding 4 per cent per
Hf annum. The issue of such bonds would
Bfj njake a very desirable lCPistmen : for the
Idle permaiient fchool fund. This would
permit the transfer of the sinking fund
accumulated and created for the cxtln-
gulshment of this bonded indebtedness to
the general fund. In addition to this you
will have the power , as I view It , to au
thorize the Issuance of bonds in the sum
of J100.000 to meet a part of this Indebted
ness. Provisions of this character would
reduce the amount of outstanding war
rants very materially and place the Btate
in a much better condition.
There are a number of other funds ot
emaller amounts which perhaps can be
utilised in bringing the state nearer a
cash 'basis in the transaction of its busi
ness. I trust .that after a full considera
tion of thl * Important matter you maybe
bo able , 'by the adoption of some plan , to
make satisfactory arrangements for
promptly meeting all of the state's Indebt
edness , 'both 'bonded and floating.
G
Revenue I nvrs.
It seems Imperative that some action
should be taken by the legislature pro
viding for a better method of levying
and collecting the revenues necessary for
the proper conduct of the governmental
affairs of the state. The imperfections
and laxity of th < j provisions of the pres
ent law for levying and collecting taxes
ot meet current expenditures , and the
still greater laxity in enforcing these im
perfect provisions of law , have brought
us face to face with a condition of affairs
that renders it impossible to conduct the
business of the state without much em
barrassment , needless sacrifices and ever-
increasing floated indebtedness. Any
wise financial policy requires , in my opin
ion , the collection of revenues sufficient
to promptly meet expenditures necessary
to be made in the conduct of the state's
business. Any other plan ultimately work3
Increased hardships and renders exces
sive the expenses of state government , be
cause of the uncertainty respacting the
satisfaction of the obligations created.
The very fact that property Is assessed
at so much less than its true value , ren
ders it very probable that great ine
quality exist sin distributing the burdens
of taxation. The man of moderate means
is doubtless assessed for much nearer the
true value of his property than the indi
vidual having large property Interests ,
and , while the approximate percentage
of the assessed valuation , as compared
with the actual valuation of property , is
but little less than one-eighth , it is more
than probable that the taxpayer with
small means and whose property is easily
ascertained , pays much nearer one-third
of Its value , while other large property
interests escape with an assessed valua
tion at nearer one-tenth or one-twelfth
of the actual value.
It appears to me there are two prin
cipal objects to be secured in obtain
ing public revenues in support of govern
ment. The first is that property of every
description , except that which is espe
cially -exempted by law , shall be subject
to the same burden of taxation according
to its value , and this rule should be in
voked with absolute uniformity , and
with ample provisions to prevent any
assessable property from escaping tax
ation. Second , these burdens should only
exist to the extent necessary to support
the government administration with hon
esty and rigid economy. "When these two
objects have been accomplished , in what
ever manner it may be deemed best , there
is no Just reason for complaint upon the
part of any.
Our law provides that personal prop
erty shall be assessed at its fair cash
value , and real estate , other than lease
hold estates , at its fair value , estimated
al the price it would bring at a voluntary
sale * one-third cash and bal
ance secured by mortgage upon the prop
erty. " This , as every one knows , is not
done , but on the contrary , the less value
placed on the property for assessment
purposes by the officer having in charge
this branch of business , seems to
render him much more popular than if
he had performed his full duty and as
sessed the property as the law provides.
Just bow far this state of affairs can he
remedied and what provisions , if any ,
should be made looking towards a more
stringent enforcement of the law as now
existing or a revision thereof , is for you
to determine. If property be assessed at
too low a valuation , the rate of the tax
levy is correspondingly increased. The
system of low valuation and high levies
creates an erroneous impression in the
minds of many regarding the property
values and the seemingly heavy burdens
of taxation in the state.
FAIR ASSESSMENT.
An assessment upon property at its fair
valuation would render tax levies ex
ceedingly small , as well as give less op
portunity for undervaluation , because of
the more fixed and certain standard ob
taining , the one and only question being ,
whether the property has been assessed
at a fair value. It is doubtless true that
a constant and continued decrease in as
sessment values has been caused in order
that one community or county might not
be compelled to contribute more than its
just proportion to the state's revenues.
Thus a constant struggle is continually
going on among assessing of
ficers to value their property
as low or lower than the valuations
placed by any others. It is also quite
apparent that the low assessment of prop
erty is some protection to the people in
order to prevent extravagance in the con
duct of the business of disbursing the
public revenues. "With a low assessment
and limits as to the rate of the levy , the
people have some protection against
wanton extravagance by those who are
charged with the duties of managing the
people's business in different capacities ,
where the disbursement of revenues forms
an important part of their dutjIn inves
tigating this subject , I have secured a
great deal of valuable information from
other states , which I will take pleasure
in placing at the disposal of this body
or any committees which you may select
to consider this important subject.
EQUALIZATION.
I also , in this connection , desire to call
your attention to the provisions of law
respecting the method of levying and
equalizing the value of property assessed
for the purpose of raising revenues for
state expenditures. The law provides that
the governor , state auditor of public
accounts and treasurer "shall constitute
the state board of equalization • * *
and it shall be the duty of said board to
examine tha various county assessments ,
and to decide upon the rate of the state
tax. the state school tax , the state sink
ing fund tax , to be levied for the current
year , together with any other general
or special taxes required by law to be
levied and to equalize and make the levy
of such taxes throughout the state ; but
suoh equalization shall be made by vary
ing the rate of taxation on the different
counties in case the said board of equali
zation are satisfied that the scale of valu
ation has not been adjusted with reason
able uniformity by the different asses
sors. "
It further provides that "the rate of the
general state tax shall be sufficient to
realize the amount necessary to meet ap
propriations made by the legislature not
exceeding 5 mills on the dollar valuation.
The rate of the state school tax shall not
be less than one-half mill , nor more thar
one and one-half mills on the dollar valu
ation ; and the rate of the state sinking
fund tax shall not be more than three-
fourths of a mill on the dollar valuation
in any county in the state. " It will thus
be observed that this board as a board
of equalization shall equalize taxes by
varying the rate of taxation on the dir-
ferent counties in case inequalities ap
pear to exist in the valuation of propert- .
as returned by such counties. By the
limitation of statute preventing a levy of
the general fund state tax to exceed five
mills on the dollar valuation , it has beea
found necessary by the board of equaliza
tion , in order to meet the appropriations
made by the legislature , to levy to the full
limit allowed "by Taw. "Even" Then Ttho
revenues raised for a series of years past
have been insufficient. It will thus be
Been that the board has found itself un
able to equalize taxes by varying the rate
of the general fund levy and that the
equalization of the valuation of property
in different counties has been restricted
to the variations permitted In the levy
of the state -school taxes , which shall not
be less than one-half mill nor more than
one and one-half mills , and the sinking
fund taxes , which shall not be more than
three-fourths mill. The margins thus al
lowed for equalizing these taxes are en
tirely Inadequate and if this method of
eqaulization shall obtain in the future , I
urgently recommend that greater latitude
shall bo given the board by amending
this section of the statute bo as to in
crease the levy for general purposes from
two to four mills on the dollar valuation.
This would give a much better oppor
tunity of equalizing the burdens of taxa
tion by varying the levy in different coun
ties as the different valuations may re
quire and yet enable the board to collect
the necessary revenues and meet the ap
propriations made by the legislature.
Depository Lnvr.
The depositor } ' law , enacted by the leg
islature of 1891 , has now been in opera
tion for a period of time sufficient under
ordinary circumstances and normal con
ditions to test Its usefulness and advant
ages , or disadvantages , as the case may
be. The wisdom and desirability of such
a law have been questioned by many ,
including those who benefited by the op
eration of the previous law , permitting the
state treasurer to use all funds of the
state under his control for private gain
and speculation purposes during his term
of office. I have been a warm supporter
of the depository law and believe in the
wisdom of its enactment. It adds a new
source of revenue to the state , and re
moves the temptation to use public funds
for any other purpose than that for which
collected. The law itself could be con.
slderably strengthened and I recommend
for your consideration the advisability of
amending it so as to remedy imperfections
which now exist. It is to be remembered
that its operation has been during a
period when the loss of money , both pri
vate and public , has been very general
throughout the entire country. I can see
no good reason why if the treasurer him
self must give a good obligation for the
return of funds placed in his hands for
safe-keeping , that the same may not rea
sonably be required of the different de
positors. Thus is obtained a divided re
sponsibility and an aggregate security
that is far better than a simple obliga
tion for the return of the entire sum.
The obligation of each depository should
be as strong in proportion
to the amount of money
secured as can possibly be had for the
entire sum. I am of the opinion that the
law has been abused ; that it has been
u ed as a means of assisting banking in
terests which may have been in need of
current funds for the transaction of busi
ness , when the true rule should have been
to have made depositories of banking in
stitutions of unquestioned standing and
of unquestioned security , with the object
in view of having the funds at all times
subject to the call of the state treasurer
in the ordinary course of his business.
AMENDMENT SUGGESTED.
I would recommend the amndment of
the law so as to provide that sureties
of state depositories shall be others tha.n
those actively engaged in the manage
ment of 'fihe depository bank ; that a dr-
pository bank should not entitle -the bank
to deposit of state money thereunder for
a 'longer ' period than two years ; that the
state officers approving the bond should
have 'the ' right at any -tame they deem
necessary tto suspend , as a depositor } ' ,
any banking institution and to direct the
state treasurer to withdraw all state
funds therefrom ; that ithe state treas
urer , in the depositing of state money ,
should at all times be under the control
of the board approving the bond , re
specting the amount deposited in any one
bank , and that 'the sureties on all de
pository bonds shall justify by making
oath in the value of their property over
and above their debts and exemptions.
The general government has found it de
sirable to designate banking institutions
as depositories for funds which would
otherwise accumulate in the United
States treasury , and I can see no good
reason Why ( this same rule should not ob
tain in the different states , such de
positories being made not only the
means for the convenient and expeditious
transaction of the state's business , but
also a source of income .to the state.
THE HILL , CASE.
At the beginning of my term of office
a suit was pending in the supreme court
to recover 'the sum of 5236,000 from ex-
Treasurer J. E. Hill and his bondsmen.
The history of this litigation is familiar
to all of you. The money was lost in the
failure of the Capital National bank.
That this amount of the state's money
was in existence at the 'time of the set
tlement of Treasurer Hartley with his
predecessor. Hill , no person acquainted
with the circumstances could believe for
a moment. The money had evidently
been lost and no attempt made to account
for it at The expiration of Mr. Hill's
term of office , excepc by a [ transfer of
credits on paper in this hank , a 'bond be
ing prepared and approved , making the
bank a state depository , and this mythi
cal -credit being placed to the credit of
the state under the depositorbond. .
The first trial of the case in the su
preme court resulted in a disagreement
of the jury. The case was again tried
and the jury found for the defendant.
The matter was then argued to the su
preme court at length upon questions of
law. When it was finally decided in favor
of the defendant. I am not entirely fa
miliar with the deails and intricate meanderings -
anderings of all the questions of law
a-nd fact Involved in 'this important case.
I do not doubt in the least but tlhat this
money has been lost as a result of mis
management by those having been en
trusted with ithe collection and dis
bursement. And it would seem that the
responsibility which certainly exists
should be located so that the people
might regain what has been unlawfully
taken from them. It is to be regretted
that persons guilty of gross misconduct
and misappropriation of funds belonging
to the people of the state are suffered
to escape le # .l responsibility. "Whether
any further effort should be made to re
cover this money lost to the tax payers
of the state , I leave it to you to de
termine.
The legislature made an appropriation
for the expense of carrying on this and
other suits. There remained after the
trial of the first case the sum of $8,709.19.
Upon an opinion from the court , and
after conference with the attorneys rep
resenting the stat * . in order to prevent
this appropriation from lapsing , a war
rant was issued to me for the balance
by the state auditor upon a properly
certified voucher presented to him for
that purpose. The warrants thus drawn
were disposed © f by me from time to time
in order to meet the further expenditures
required in this case. After iwying all
the legiitimafra claims there was covered
into the state treasury the sum of $4,457.15
yet remaining unexpended of the appro
priation. Ait itemized statement of the
expenditures 5n this case is presented
with this message.
PERMANENT SCHOOL. FUND.
The constitution and the statutes re
quire that th"5 ! > oard of educational lands '
and funds , consisting of the governor ,
attorney-general , treasurer , secretary of
state and commissioner of public lands
and buildings , shall at their regular meet
ings moke necessary orders for the in
vestment of the permanent school funds ;
but that none of these funds shall be in
vested or loaned except on United States
or state Fecurities or registered county
bonds. AtCie t- * v' ; of the present
BBBBBBBBlir "JbWJBbbV ' ' "MV -
biennial period. TTecemFer 1. 1S94I there
• were on hand of these funds She follow
ing amounts , to-wit :
Permanent school J447.037 C3
Permanent -university 19,553 G3
Agricultural endowment 01,953 15
JMaking the total sum of $54,558 41
COUNTY BONDS SCARCE.
These several funds , by a decision of
the supreme court , do not come within
the provisions ofthe depositor } ' law , and
• were therefore under the control and
disposition of the state treasurer wlwii
not invested as above provided , and
uninvested rwere of no benefit to tihose
who Should derive advantage from the
interest in case of oa investment in in
terest-bearing securities , as contemplat
ed. During Oho last biennial period but
few county bonds have been lasued and
these were chiefly refunding bonds to
take up other outstanding Indebtedness.
Hence , it has been extremely difficult
to secure for the state enough county
bonds to absorb the accumulation of
4he ! e different funds , to 6ay nothing or
the large amount on hand at the begin
ning of tfhe biennial period. During the
year 1 95. the board of educational lands
and funds obtained only the sum of $40. -
000 , being Otoe county refunding bonds ,
bearing interest at the rafe of 4 > per
cent. These bonds were obtained at par.
During this time a large amount of state
warrants , drawing 5 per cent interest ,
were being issued from ithne to time.
I regarded these warrants as desirable
investments for these trust funds , inas
much as it would provide a ready means
for 'the investment of the entire sum ,
strengthen the credit of the state and
bring its warrants , which were below
par , to par value , and , in effect , put
the state on a cash basis.
"WARRANTS AS SECURITIES.
In a decision of the supreme court ,
concurred in by all of the judges , and
found in the 25th Nebraska , at page GG0 ,
it was decided that state warrants were
state securities within the meaning of
the constitutional provision referred to.
In addition to this , a precedent had been
established by 'thepurchase of these war
rants under the administration of my
predecessor. Governor Crounse. The su
preme court also , in a more recent case ,
referred ito the first decision above
quoted in The following affirmatory lan
guage : "We must not , however , be un
derstood as holding that warrants
against the general fund are not state
securities within the meaning of the con
stitution. Although that question is not
presented by this record , following in re
state warrants , 23 Nebraska , C59 , and
State vs. Bairtley. supra , we assume them
to l > e legitimate investments for the per
manent school fund ; but if the state , as
trustee for said fund , desires to invest
inthat class of securities , it is required
to do so on terms of equality with other
investors. "
ATTORNEY-GENERAL'S OPINION.
Assuming , therefore , that warrants of
'this . .characterwere 'legitimate ' investment
for this large fund , and as they were in
every other respect a very desirable form
of investment. I introduced a resolution j
before the board of educational lands
and funds , ait a regular meeting In January
of $500 , -
uary , providing for Investment
000 of thus idle fund in warrants already
lssued and those thereafter to be issued.
Some doubt was expressed by some of
the other members of the board respect
ing the legality of an Investment of this
kind , and , at their request , the resolu
tion was referred to the attorney-general
for an opinion , which was finally ren
dered at the regular meeting in April
following. This opinion was. in effect ,
adverse to the decisions of the supreme
court cited above , as well as to the
precedent established during the admin
istration cf Governor Crounse. The at
torney-general held that state warrants
were not state securities and were not a
legitimate investment under the provis
ions of the constitution. The opinion was
concurred in by a majority of the board ,
• thus cutting off ever } avenue for a
speedy and profitable investment of this
Another resolution was then introdursd
bv me looking towards thn investment
of the unemployed school fund in United
States bonds. In this effort to find the
best possible investment after we were
prevented from purchasing state warranto
I failed to receive the co-operatloa of aiy
other member of this board ind no In
vestments were made in that direction.
Registered county bonds , tne only re
maining investments permitted by the
constitution , have been purchase ! from
time to time as reported in detail by th-
state treasurer. These bonds have b en
purchased upon a basis of interest of 4 >
per cent or more. It will be observed
that there was secured for the Investment
of the permanent school funds , county
bonds in the total sum of 3345.741.9 ? There
now remains of these trust funds , s
shown by the report of the state treas
urer , the total sum of $32S,53S.41.
A constitutional amendment providing
for the investment of this fund In srhoM
district warrants , as well as specifically
naming state warrants as legitimate In
vestment , was submitted to a vote cf the
people at the last election , but its adop ion
is as yet a matter of un
certainty. I think , however , T
can safely assume that in any event th
board of educational lands and fun3 = , as
constituted by the election of the present .
officers , will co-operate with me in the
investment of this fund in the state se
curities mentioned , which , if successful ,
will furnish an ample opportunity for the
profitable investment of this entire fund
Yet , I am of the opinion that as nearly
as practicable , it would be advisable by
constitutional amendment to make mor6
comprehensive provisions for the invest
ment and management of ttiis trust fund ,
wnich is constantly increasing and wn.ch
in time will grow to enormous proper
tions. This fund is the patrimony of the
children of the state , to be invested and
the interest applied for their education.
Such a magnificent endowment is well
worthy the zealous care and watchfulness
of those entrusted with its custody , and it
is of the utmost importance that previ
sions be made for its investment upon
advantageous terms , and y t with all rea
sonable precautions for the permanent
safety of the principal. How soon this
may be brought about Is perhaps yet
uncertain.
Expenditure * In State Instltntlons.
It has been the custom heretofore for
each legislature to mak appropriations
for the biennial period endlnsr witti Mar.n
31. Section 19 uf article 2 of the constitu
tion provides that "each legislature shall
make appropriations for tne expenses of
srovernment until the expiration cf the
first fiscal quarter after the adjournment
of the next regular session and all ap
propriations shall end with such fisal
quarter. " The fiscal year begins Decem
ber 1. The legislature usually does not
adjourn until some time during the ses-
end fiscal qaurter. The time for which
such appropriations should be made , ac
cording to tnis construction , would not
expire until the last day of the third
fiscal quarter , which would be August 31.
With this provision In view , the state
auditor has requested estimates of expen
ditures to be presented to this legislature
foi twenty-nine months Instead of twen
ty-four , as has been the custom hereto
fore , for the purpose of bringing the ap
propriations up to the time mentioned.
The total appropriations made by tha
last legislature for the current biennial
period were $2,754CS4.CO , which may be di
vided into the following Items :
Legislative S125.0C0 01
Executive offices and state boards 92,150 01
University and normal school. . . . CJS.441 S9
Maintenance of state institutions 9:8.287 "
Miscellaneous appropriations 750.7S5 24
Total S2.7S4. S1 60
It Tr p. thus be seen that of the .total
BpproprlE | .ons over one-third are for the
maintenance of Rtttte institutions. After
deducting appropriations for repairs and
- permanent Improvements the net appro
priations for the maintenance of the * * In
stitutions for 1SS3 and 1E94 were 3SS4.43C ,
and th net appropriations for liS5 and
IRK ; were $36 , 2&.34. The total number of
Inmates during the period of 1833-4 was
2,241. showing a per capita expense for
this period of $3'j4.14 : the total number
of Inmates for the period 1S93-C had In
creased to 2.D3S , and the per capitaex -
penae decreased to $323.33. The great bulk
of these savings was made In only a portion
tion of the state Institutions , and had the
same creneral decrease prevailed in all the
state Institutions the saving would have
been munli greater. I am of the opinion
that still further sarlngs can be road's
In the expenditures of these different In
stitutions , and for the purpose of glvln ?
you all Information i > osslble , I present
herewith u. tabulated statement showlnc
the total appropriations for the two pre
ceding biennial periods , and the manner
in which they were expended , togeth * r
with the average per capita cost In each
of thes J Institutions. This contains alao
other Information which may be of valiw
to you In determining the needs of these
institutions for the time for which you
shall make appropriations.
'oiainps Homo nt Gmnd Island.
The soldiers' home at Grand Island has
assumed larg < * proportions by the erection
of new buildings , cottages and provision- *
for Increased capacity In caring for
worthy union soldiers , for whom it was
constructed. Large sums of money are
appropriated by each recurring session cf
the legislature for its maintenance. It
now has 205 inmates , a larger number
than It has ever had heretofore The la-t
leelslature appropriated $12,000 for a new
addition , together with numerous other
sums for permanent repairs and Increased
facilities in its management In different
ways. There hus been appropriated alto
gether many hundred dollars for the erec
tion and reparation of good , sul tantlal
buildings. It Is not only fitting and prop
er , but it is a duty owed by the people.
of this state and cheerfully performed to
make suitable provisions for the support
of all worthy and needful survivors cf
the union armies In the -ivil war. I but
speak the sentiments of the patriotic p o-
ple of Nehiaska when I say tnat no bur
den Is borne more willingly or duty per
formed with greater alacrity than that
which Is required In making timple pro
visions for the maintenance- comfort of
these worthy veterans who were the de
fenders of the union.
The management of the Institution for
the post two years has been the mosr
economical duting its history. The kind
treatment and ample provisions for the
comfort and pleasure of the inmates have
been all that could be desired. Th * > mem
bers of the visiting and examin'ng b-a-d
assisted by the cenmandant , have U" n
tireless in their efforts to conduct th
institution so as to fully accomplish the
pvrpose for which it was established.
Branch Soldiers * Homo at Mtlford.
The last session of the legislature
passed an act providing for the estab
lishment of a branch soldiers' home at
Milford by the leasing of land and build
ings already constructed. Eight thousand
dollars was appropriated to carry Into ef
fect this act. It was provided in the act
that the land and buildings referred to
should within thirty days- after its pas
sage be leased to the state free of charge
for two years , with the privilege of elgl't
additional years for a sum not exceeding
? S00 per annum. Under the direction of
the board of public lands and buildings
alterations and repairs have been made
fitting the buildings for the reception
of Inmates. Capt. J. H. Culver was , by
this board , appointed commandant. A
full and detailed report for the period
en ling November 30 has been made by
the commandant and is presented for
youi consideration. There were fcrty-
fl\e inmates in this institution at the time
the report was made and a deficiency for
its maintenance created up to that time
in the sum of $10,321.20. It is also asked
that $13,500 he appropriated for the pur
chase of this property.
The maintenance of two institutions for
the support cf disabled and Indigent sol
diers when the objects sought can be
: . ' ; complished in one institution entails
an additional and unnecessary expense
on the taxpayers of the state. It is true
< hat th ° general government has provided
means for assisting the different states
in caring for the veterans of the war by
• • ontributing from the general treasury
Slr i per annum for each i"matf of tue
homes established , but this in no wise
chuices the rule or the principle juit
announced. The revenue derived frcm the
cf noral government is the same per capita
whether one or two institutions are main
tained and it is our duty to keen with n
rea ond.ble bounds these different expen
ditures Involving a taxation of the citi
zens of our state. While I do not recom
mend unreservedly the discontinuance of
the home at Milford , I ask of you a care
ful and thorough study and investigation
its to the probable demands which will
have to be met by cur people in providing
for these worthy citie ns. If the conclu
sion is reached that all the necessary
comforts and conveniences can be as well
provided for in the home already * -sta > : -
lisbed with reasonable expenditures for in
creasing its capacity , it is a serious ques
tion whether this ought not to be done
rather th n to incur additional experse
by maintaining two different institutions.
The latter course necessitates the em
ployment of two sets of officers and in
creased demands for expenditures which
might be greatly reduced by concentra
tion of population and the utilization of
fixed conveniences which are of sufficient
capacity to answer the demands a much
larger population would make upon them
than exists at the institution at pre = "nt.
It is true that the location at "Milford
is beautiful , attractive , and the surrc and-
ings very pleasant. The water. I have no
doubt , is very healthful and there are.
perhaps , some advantages which do not
exist at any other institution in the state. :
These are inducements which appeal for
the continuance of this institution , yet it
is to be borne in mind that the surround
ings and environments can be made very 1
pleasant , and are so in fact , in every in
stitution in the state. Such institutions
have been located only in places where the :
people generally have found it very pleas
ant to establish their homes and rear their
children and enjoy the usual degree of
happiness allotted to mankind generally.
( coxmrrED )
Poor Napoleon.
What a proud world this would be j
if every man lived up to his little son's :
estimate of him. There is a small boy '
in this city in whose eyes his unworthy
father is the greatest caan in all the :
world. His mother , who is a great
student of histqry , whose admiration
for Napoleon Bonaparte is almost '
equal to her son ' s admiration for his
father , delights in telling- the boy the •
wonderful stories of the great emperj j
or's achievements. There was great
sorrow in the child's face when he :
heard the story of Moscow , and his
eyes suffused with ter-- when he said : (
"Wasn't it too bad , -iImma ? Oh. if J
papa had only been there ! " Xew - ]
York Sun.
Fifteen Drowned at Sea. 1
Bkest , Jan. S. The steamship Bel ]
glque , while bound frum Antwerp for
Eayonne , France , was wrecked last
night on Catshead rock. Fifteen of ]
the eighteen persons on board were 1
drowned.
I
BMSTWIfemonftiliji u. iin l.WWU' t
tmafl
liFH
Acrnioi ills .rattier. , in H
W11.WXOTOX , Ohio , Jan. 6. James j m |
Harvey , the alleged wife murderer , 3i % H
now confined in the county jail , • * ' H
charged with the murder of his wife , * * / H
Ida , on December 16 , has filed nn afli- I H
davit before the mayor charging his I H
father , William 1 * . Harvey , 1 j-ears * H
old , and a Quaker preacher , with be * H
intr her murderer. |
Hit ; Btrect' Kullwuy Ural. f | |
DBTnoiT , Mich. , Jan. G. Tom L. 1 1
Johnson of Cleveland , president of the § |
Detroit Citizen's Street Railway com- i l
puny , is now in control of Detroit's P l
street railway lines. 1 1
g H
Vncd Dynamite to Kill KatH. H
Fkeemont , Ohio , Jan. C. At Millers- M
ville , this county , a son of Alexander H
Dolwick got hold of several pounds of |
blasting powder and went to the eel- H
lar , accompanied by three sisters , to H
kill rats. The stuff exploded , and ono H
girl , 8 years old , was burnee to death. H
The clothing of the other children H
caught fire and they were terribly H
burned , as was Mr. and Mrs. Dolwick H
in trying to extinguish the flames. H
The SuL-crHN of < t. A. Iliitzn. |
"When I left Masoncounty , Ky. , in H
April , 1S73 , " says Mr. G. A. Hotze , of H
Indianola , Kcd Willow county , Neb. , H
" 1 had one yoke of oxen , a wagon , ' M
plow and money enough to last me a M
year. I have followed stock raising , M
funning and gardening. Have made M
at gardening from $700 to SI,000 a year. M
I own 300 acres valued at 510,000. My H
improvements are worth S 1,000. I have M
all kinds of fruit trees. I raised about M
HO bushels of cherries this year , which M
1 sold for 2.50 per bushel If anyoue M
wishes to write and ask questions , I H
will cheerfully answer , as I am glad to H
help any man with small means to get H
a home as I have done. H
In our "Neihcaska Book" (40 ( pages H
with maps and illustrations ) , are dozens - H
ens of statements like that of Mr. Tnor- H
rell. They are made by farmers who H
have made a success of farming. They H
show that Nebraska is as good a state H
as any in the Union. ' |
The book in which they appear is as H
different from the ordinary agricultural - H
tural pamphlet as day is from night. |
It is interesting , practical and truthful. |
In a straightforward , simple fashion , |
it tells you everything you need to |
know about Nebraska its climate , |
people , schools , churches , railroads , |
markets , soil and crops. It explains |
why the Nebraska farmer makes money - ) H
ey in spite of low prices and hard H
times. Why land is cheap. And how ] H
it is as easy for an intelligent and industrious - H
dustrious man to BUY a Nebraska H
farm as it is to rent one in any state |
east of the Missouri river. ' 1
Every farm renter who wants to become - H
come a farm owner ; every farm owner j H
who is tired ot trying to make money H
off high-priced land ; every father who H
wants to give his sons a start on the H
high road to independence , should write H
for a coDy. Free. j H
J. FRANCIS , H
Gen'l Pass ' r Agt. , Burlington Route , H
Omaha , Neb. |
Iowa I'atent Ollice Krport. |
The largest number of patents ever H
issued in any one week was ! > 1G , on December - H
cember 29 , 1S9G. Iowa is represented H
in that number by 13. Nebraska 4 , H
Kansas by G , Minnesota by S , New j H
York by 91. and Pennsylvania by G7. H
Patents have been allowed but not H
yet issued as follows : |
To G. R. Back , of Gothenburg , Neb. , | H
for a design for a brush for killing j H
To G. B. Nelson , of Recfield , Iowa , H
for a tool for opening boxes , etc. A H
multiple fulcrum combined therewith H
adapts it to be used advantageously as j H
a lever for many purposes. H
To J. A. Norton of Odebolt , for an j H
improvement of his table attachment H
for beds for which a patent was issued |
To J. U. Uhr , of Eagle Grove for a |
transformable door adapted for use in |
winter as a storm door and in summer |
a screen door. |
To G. P. Pump , of Lynnville , for a H
rotary engine that he has in practical |
To A. Roesch. of Downs. Kansas , for j J
a weed cutter and pulverizer for cultivating - |
vating , eorn. etc. J
Valuable information about obtaining - H
ing , valuing and selling patents sent H
free to any address. |
Printed copies of the drawings and |
specifications of any U. S. Patent sent |
upon receipt of 2. > cents. J
Our practice is not confined to Iowa. |
Inventors in other states can have our J
services upon the same terms as Hawk- H
eyes. |
Thomas G. & J. Ralph Okwig , H
Solicitors of Patents. fl H
Des Moines , Iowa. Jan. 2 , 1597. |
LIVi : STOCK AND 1'JtODUCJi ilAItKKTS H
Quotations From Now York. Chicago , St. |
. . . . H
J.oui- Omaha and i-1-.ewhere.
Hulter Creamery separator. . CO © 21 j l
Butter t hoice fancy country U Qr. 15 j B
Eire Fresh 17 & IS H
i rairie clinkenper dor. G 00 & C 'Si H
spring i hicUenb dressed t > to 6i H
lurkeys . - 10 © II M
[ et"-e and I > ucks 3 H
Lemons Choice Messinas 3 50 & 4 ft ) H
Honey I ancy White 14 < & 15 H H
Unions , per bu 49 fc M H
Bean * -liandpi'ked Aavy 1 . ' . " . ® 1 4D H
Potatoes Z" & 35 H
-weet I'otatoc-per bbL 1 73 $ .2 00 H
Oranges IVr box • ' - ' < • > fc 4 00 M
Hav Upland , per ton 4 00 fc S 50 j H
a.pples-1'er bbl 1 50 < 3 00 H
r-OTTH OMAHA STOCK .KET. j M
HogI.utht Mixed 3 'iO © . 3 40 |
Hess Heavy Weights 3 2) * 3 23 1
I' .eef steers 3 75 © 4 75 H
Bull- 2 01 @ 3:5 ; B
Milker * and springers 25 K > felj CO H
2 60 & 300 |
Calves. - 275 % u 80 1
-ta:5 3 < 0 & 325 M
Cows 240&375 M
Heifer- - 2 = 3 & 3 00 M
-tot-kers and Feeders 3 < X > % 4 CO M
i-heep Native 2 25 & 303 H
shtep Lambs 329 4 25 H
Wheat > o. 2 = prlns S > % ? IK |
Corn Per bu 23 & . 23 * ? |
Uats Per bu _ ! < & ! * > B
fork -7 55 ft7 > 6 I
Lard 3 M > & .Z Z' flWAVal
bttx-kers andfeeders. _ . „ 3 45 ' 3sv
l'ave . _ 45 * 5i 6 6u HHVHbH
Hozs Medium mixed 3 25 & 3Sn
: heep Lambs „ .2tt > & 5 00 H
NEW' YOllK. 1
Wheat No. 1. hard 57 & S H
lorn No. 2. 29 & & * : .
Oat- > o.2 , 22 Gt 224 J
fork S25@S75 H
Lurd 4 IS fe4-0 B
sT. LOCK. H
Wheat No. 2 red , cash 91 © S3 , H
Lorn For bu : & 20 M
Dat 1'er bu 17 & l- H
tlo = s Mixed parkin ? 3 30 & 3 40 H
I attltr Native rhip 'n ? Meers. 3 60 & 1 15 H
Wheat N'o. . 2 hard 7 77 H
Lorn No.2. . _ 17S@ 17 i H
L atb No. 2 - 1 fc B
Lattlf Mockers and feeders. . 2 75 & 4 . H
Hops MI.\ed 3:5 to 3 3 i j H
bheep Lambs 4 91 ii 5Xi H
sheep-Muttons 2 13. © 3U0 H