-
J
SHELDONS WORD
UfTOSS THE LEGISLATURE
CARRY OUT PLEDGES
TO
WARNS AGAINST ANY EXTRAVAGANCE
Years of Prosperity Time When the
8tate Debt Should Be Reduced
Revenue Law Should Bo
Materially Strengthened
Governor Sheldons message to the leg
islature was delivered to the two houses
on Thursday December 3d and was as
follows
To tho Senators and Representatives
Thirtieth Session of the Legislature of
Nebraska
I am pleased to greet you upon this
occasion I appreciate beyond expression
the confidence the people of Nebraska
placed in me at the last election I
appreciate deeply the high honor thereby
conferred upon me and I wish to thank
my friends throughout the state for the
loyal and enthusiastic support they gave
me during the campaign I feel espec
ially grateful for the assistance and sup
port of the loyal republicans and the in
dependent voters whp belong to other
political parties than the one to which 1
have tho pleasure of belonging and by
which I was nominated
To the members of the legislature I de
sire to offer a few suggestions which 1
hope and trust will be taken in the same
kindly way and with the same good will
as they arc given
You will remember that we are pledged
against extravagance and bound not to
raise any more taxes for current expenses
than will bo necessary to conduct our
state government under the most rigid
economy The total estimates for current
expenses during the next biennium made
by the heads of the several institutions
are so large that it will be necessary for
you to investigate thoroughly the needs
of these different institutions before mak
ing the appropriations Promiscuous
junketing is expensive and in the past
has not given beneficial results It is
therefore sincerely recommended that a
joint committee be appointed for the pur
pose ot visiting the several state mstl
ftK - - mHI
HHBbIII
GEORGE L SHELDON
Nebraskas New Chief Executive
tutions and inquiring Into their actual
needs before the appropriations are made
The indebtedness of the state should be
decreased while the state is piosperous
By an act of the last legislature pro
vision was made for payment of the out
standing indebtedness of the state That
act will insure the payment of the debt
within a few years if future appropria
tions are kept within reasonable bounds
The current expenses must be kept with
in the income of the state It wiil not do
to increase the public debt at this time
The constitution of the state will not
permit the permanent school fund to be
invested in any other securities than reg
istered county bonds of this state and
United States and state securities Tiie
field for investment of this fund should bo
enlarged There are other forms of in
vestment equally as safe that would in
crease the interest return to the fund
If it were invested in municipal bonds
school bonds or in Nebraska mortgages
the state would be benefitted on account
of the interest being paid at home
The one mill levy will reduce the float
ing indebtedness of the state about 300
Ouo eacn year A large part of this float
ing inaibtedness has been taken up by the
state treasurer for the benefit of the per
manent school fund There will be there
fore about Ssuo000 of the permanent
school fund each year to be reinvested on
this account alone
It is urgently recommended that this
legislature submit an amendment to the
constitution so that the permanent school
fund will not remain idly in the hands of
the treasurer when the state indebtedness
is paid off Times and conditions change
Therefore it will be for the best interests
of the state that this section of the con
stitution be amended so that future legis
latures may determine from time to time
what class of additional securities shall
be available for the investment of this
fund
The new revenue law of 1903 has
brought about one of the most uniform
assessments of property ever had But
there is still urgent need for amendments
which will provide for a more equitable
distribution of the burdens of taxation
among the property holders of this state
Under the present law real estate that
1b mortgagcl is assessed for taxation pur
poses at its full value to the owner of
the land without any deduction whatever
for the amount of the mortgage In
addition to this if a mortgage is held by
a resident of the county or of this state
the mortgage is also assessed at its full
value There is no good reason why a
piece of real estate that is encumbered
with a mortgage should be burdened with
greater taxation than a piece of real
estate of the same character and value
that is not mortgaged
Again under the law if the mortgage is
held by a non resident of the state and a
great many of them are no tax is levied
against it because mortgages are con
strued to be personal property Personal
property is supposed to be assessed where
the owner of the property resides If
domestic mortgages are to be taxed then
The American Magazine Has Changed
Hands
For 30 Years It Was Leslies Popular
Monthly
Ida M Tarbell who wrote Lincoln
and the famous Story of Rockefeller
William Allen White the well known
Kansas editor F P Dunne creator
of Mr Dooley Ray Stannard Baker
and Lincoln Steffens are under the
leadership of John S Phillips now
editing The American Magazine
Never before has such a brilliant
group been gathered together and
they are not only contributing them-
certainly foreign mortgages should bo
taxed The sensible thing to do is to tax
all mortgages both foreign and domestic
aa an interest in real estate Being as
sessed as an Interest in real estate they
would then bo assessed for taxation pur
poses where the land Is and not where
the mortgagee lives The value of the
iiiortguge would then be deducted from
tho value of the mortgaged estate and tho
owner of the real estate assessed upon
the equity lie possesses
It is contended by many that the ro
sult of such a law would Increase the
rate of interest because Nebraska is not
a creditor state If such is the case the
possibility of an increase In the interest
rate may be avoided by permitting tne
privilege of contract whereby the owner
of the land may If he chooses pay the tax
on the interest of the mortgage He could
afford to do that and be none the worse
off than he is at present Certainly If
all the domestic capital that is available
for the investment of mortgages is driven
out of the state non residents may be
expected to raise the rate of interest as
they no doubt will do when there Is no
longer competition by domestic capital
uuring tne past ten years wo have been
bountifully blessed with good crops and
prices The people of this state have been
paying off their Indebtedness and accum
ulating capital which should bo Invested
at home The present law discriminates
against domestic capital and in my opin
ion it is forcing the residents of this
state to invest their capital In securities
and lands of other suites The present
system plainly imposes a double tax upon
mortgaged property when the mortgages
is held by a resident of this state and to
that extent it increases beyond measure
the tax upon that class of property It
is not fair to the residents of our state
and it is against good public policy to
continue the pernicious system of the
present law in this respect
Another amendment that is needed to
the revenue law is one that will permit
the reduction of bona fide indebtedness
Under the present law a man who is in
debt is taxed for all that ho possesses
and for all that he owes The debtor
class of property holders should not be
compelled to bear extraordinary burdens
of taxation Notwithstanding -the fact
that almost every other state permits the
deduction of bona fide debts in some
form or another we are still discrimin
ating against the debtor class which is
neither fair right nor just
The cities towns and villages of this
state in almost all instances have a high
rate of taxation It is important there
fore that properly therein be equitably
assessed At present the resident prop
erty holders pay a much greater propor
tion of the city town and villages taxes
according to the value of their property
than do the railroads which have their
terminals within the corporate limits The
railroads receive benefits from the cities
towns and villages and in return should
pay their proportion of the city town and
village taxes
It may be a debatable question whether
the great corporations of this state have
in the past been paying their full share
of the taxes But the Union Pacific and
Burlington railroads have lefused to pay
in full the taxes which have been regu
larly assessed and levied against them for
the years 1904 1905 and 1906 They are
already delinquent about three quarters
of a million dollars for 1904 and 1905 The
refusal to pay this years tax will place
them delinquent over one million dollars
Their action in this respect is not fair
to the other taxpayers of the state and is
wholly unwarranted when past conditions
In the state are considered The gov
ernment gave bountifully of its land and
the people of this state in a great many
instances voted bonds to help build these
railroads Besides this there never has
been any restriction whatever upon them
in tho matter of freight rate regulation
They have always up to the present time
charged what they pleased It requires
patriotism at times to support and main
tain a stable government These great
corporations by their conduct appar
ently lack thst noble quality It is not
strange that their conduct has vexed a
patient people No doubt they would ask
for the protection of the state if their
property were in danger yet they deny
the right of the state government to
assess and tax their property as it assess
es and taxes all other property Every
thing that can be done will bo done to
enforce the collection of these delinquent
taxes and railroad property in the future
so far as I am concerned will continue
to be assessed at whatever seems to be
equitable and just
The citizens of Nebraska can not en
join the collection of a tax levied against
their property because they are denied
that privilege But railroads being non
residents of the state seek relief through
the federal courts Until congress shall
pass a law depriving them of this priv
elege they probably will continue this prac
tice It is therefore recommended that
a joint resolution be passed memoralizing
congress to pass a law that will deprive
a non resident from enjoining the collec
tion of a tax levied upon property within
the state
The Burlington railroad for the pur
poses of business is a unit But when it
comes up for taxation it is sixteen dif
ferent companies At present this com
pany does not give the earnings for the
different branch lines but simply ghes
the earnings for the whole system within
the state The matter of assessing such
a property with the information furnished
the state board of equalization and assess
ment is a difficult problem There is no
disposition on the part of any one to
assess them unreasonably but there is a
disposition to assess them equitably
and for what they are worth Railroads
which operate branch lines in Nebraska
should be compelled to furnish for each
and every branch line an itemized state
ment in detail of all the business trans
actions of the several lines together with
the value of the stocks and bonds of each
line and the gross and net earnings of
each It is sincerely hoped that this leg
islature will amend the revenue law in
this respect
The question of equitable taxation is a
difficult one A uniform assessment of
property according to its value regard
less of its character is certainly to be
desired in any well governed society All
property should bear its just proportion
of the burden of taxation Personality
should not be considered It is neither a
crime to be wealthy nor one to be poor
Let us remember that it is the property
and not the person that should be taxed
All amendments to the revenue law that
will eliminate double taxation and secure
for the people of Nebraska more uniform
and just assessment of property will be
welcomed by every one that has the wel
fare of the state sincerely at heart
In the conduct and management of the
state institutions the governor is Largely
held responsible No institution can be
pioperly conducted where there is friction
in its management All the superintend
ents and heads of the different institutions
that are appointed should be held res
ponsible for their conduct and for the
management of their institutions directly
to the governor The laws of this state
should be amended so that in case of
mismanagement and misconduct the gov
ernor may remove them summarily We
have witnessed in the past at several
different times the pitiable condition in
which governors of this state have been
placed when trying to remove a delin
quent or incompetent appointee I trust
this legislature will see to it that the laws
are amended so plainly that such occur
rences may not necessarily happen again
The great corporations of Nebraska es
pecially the railroads and the telephone
companies have in the past maintained
a strongly organized lobby in Lincoln
during sessions of the legislature The
presence of any kind of professional lob
byists is neither needed nor desired The
corporation lobbyists are usually men of
high integrity and sobriety men of large
experience In their line of work congen
with the very best novels and short
stories and great timely article by
other famous writers and beautiful
pictures by great artists
The new editors are making good
Their periodical grows better every
month The January number is ex
cellent Ray Stannard Baker leads off
with a description of an extraordinary
experiment in brotherhood now being
conducted in America The Theosopi
cal Institution at Point Loma Cal
Katherine Tingley the power in the
organization is a wonderful leader
reminding one of Mary Baker G Eddy
selves but are filling the magazine in the ability she has exhibited Will
ial clever men who by tholr porslstont
and able efforts are able to accomplish
much for the interests thoy rnpreaent
The fact that during all of tho provloua
history of this state no law haa beea
passed which lias regulated freight rates
in nny particular bears vitnesB to the
effective work and influence of a strongly
organized railroad lobby It is expected
that this legislature will pass such meas
ures as will forever put an end to ring
rule in Nebraska It is to bo hoped there
fore that there will bo passed not only an
anti pass law and a primary election
law but that there will also bo passed
a law that will prohibit professional lob
bying
The use of tho telephone as a means of
communication is becoming goneral in
Nebraska There are complaints in many
parts of the state of unreasonably high
rates and poor service It is therefore
recommended that tho railroad commis
sion in addition to control of railroads
be also authorized by law to control tele
phone companies and regulate tho rates
thereof
In regard to the railroad legislation that
you are about to enact nermit me to
offer these suggestions
First It is recommended that a law be
passed prohibiting any railroad company
from charging in tho future any moro
between points within this state than
were the charges on the first day of Jan
uary 1907 compelling them also to furn
ish to the railroad commissioners all
traffic and classifications in force on that
date
Second Inasmuch as the constitutional
amendment providing for the railroad
commission does not definitely define the
powers and duties of that commission
a law should be passed immediately that
will clearly simply and unmistakably de
fine its powers and duties Besides de
fining the duties of tho commission there
should be conferred upon it the power to
prohibit rebates special rates and dis
criminations of every sort to any par
ticular person company firm corporation
or locality and power to change or alter
any or all schedules classifications or
tariffs that are in force on any railroad
in this state at anv time so that the
rates fares and charges shall be reason
able just and equitable Let this law
be written so plainly that it can not be
misunderstood and with such deliberation
that it can not be set aside by the courts
Third It is recommended that you de
prive the railroads of the right to enjoin
the enforcement of a rate made by the
commission pending an appeal to the state
courts
Fourth It is further recommended that
you pass a joint resolution memoralizing
congress to pass a law that will deprive
common carriers from enjoining the en
forcement of rates made by a state com
mission between points within a state
pending an appeal to the feredal courts
I sincerely believe that it will bo for
the best interests of the state that you
give your immediate attention to the en
actment of laws that will do away with
professional lobbying that will abolish
the free pass nuisance and that will de
fine the powers and duties of the railroad
commission so that the commission can
get to work at once There is great need
in this state for a reduction of freight
and passenger rates The people need
the relief The commission will natur
ally await tho action of the legislature
For these reasons it is essential that
this work be done as quickly as a care
ful consideration of the subject will per
mit
The people of Nebraska are to be con
gratulated upon the fact that they have
become awakened and are determined to
govern themselves We have been elect
ed to carry out a definite program It
is to be hoped that the new deal will be
a just one Let us work together in har
mony It is suggested that all members
of the republican party keep before them
the platform that was adopted at the
last republican state convention Let us
not forget to fulfill our promises and our
pledges
I realize somewhat the grave responsi
bilities that are about to be placed upon
me and appreciate the importance of tho
work that lies before me Having been
elected without obligations except tho
trust I owe the people of this state as
their public servant I shall endeavor in
the administration of the affairs of our
state to be guided by what seems to be
for the best interest of Nebraska and for
the general welfare of her people I bear
no malice toward anyone not even toJ
the great corporations that have so
strenuously opposed and which probably
will continue to oppose the establishment
of common justice in this state Their
rights must be protected but when they
abuse their privileges as they have done
in the past they must be held to strict
n of mint The welfare of our state de
mands that they must not be put out of
business but that they must be put out
of Nebraska politics
I realize fully that this reform move
ment not a crusade against wealth but
rather a movement against graft and
greed and abuse of power It has for
its object the establishment in this state
from one end to the other of government
bv the people and for the general welfare
of the state Legitimate interests must
be protected Conspirators against tho
common good and violators of the law
must be prosecuted The law of the land
must prevail
I hope and trust that I shall have the
loyal support and the wise counsel of the
good citizens of this state with the light
of their intelligence and with the wishes
that God may grant me I hope and trust
my administration may meet the expecta
tion of the people of this state who have
elected me
GEORGE L SHELDON
The National for January is a snap
py number Affairs at Washington
by its editor Joe Mitchell Chappie is
exceptionally strong in character and
several additional pages are added to
this department giving to the reader
an insight into the affairs at the Na
tional Capital such as can be obtained
from no other publication Cubas
Malady is the title of one of the most
timely articles of the month and is
written by John Vavasour Noel who
has been in Cuba for some time and
has made a study of the conditions
that led up to the intervention by the
United States Kate Restieaux con
tributes an Interesting article upon
John Greenleaf Whittier the great
American poet Charles Warren Stod
dard furnishes one of the best stories
he has written for many months un
der the title of Caprice The
Bright Side of Packingtown by Mary
Humphrey gives the reader an intellig
ible idea of conditions and is so widely
different from the sensational material
that all good people except those who
are looking for yellow literature
will appreciate the article The
Home Department is as usual full
of those helpful hints that we all want
to know The editor adds to the
Happy Habit articles a set of Res
olutions which are good for all living
beings The number is filled with the
very best fiction among which might
be especially noted the story Revers
ing an Engineer by C C Johnson
The Poor Mans Cow oy Miriam
Sheffy A Comedy in the Air by
Charles Mcllvaine His Client by
F Binney de Forest as well as other
fascinating fiction
iam Allen White the famous Emporia
Kansas editor and novelist com
pares Emporia and New York City Of
course the article is compact of wit
and wisdom Ida M Tarbell proceed
ing with her story The Tariff in Our
Times tells about the outbreak of
protectionism that followed the Civil
War Washington Gladden writing of
The Negro Crisis suggests that the
separation of whites from blacks may
become necessary
F Marion Crawford begins a new
serial Arethusa a Princess in Slav
ery being a love story of old Con
stantinople
ANNUAL MESSAd
GOVERNOR MICKEYS LAST WORD
TO LEGISLATURE
SUGGESTS WHAT SHOULD BE DONE
Urges Legislation in Behalf of the
People and Pleads for Strict
Economy in Appropriations
Able Document
Following is Governor Mickeys message
delivered to the legislature January 3d
To the Members of the Thirtieth Session
of the Legislature of Nebraska Gentle
men
Tho organic law makes it the duty of
the chief executive to call the attention
of each recurring legislative body to the
general condition of state affairs and to
make such suggestions and recommenda
tions as in his Judgment the needs of the
public service require In discharging
this duty I desire primarily to congratu
late tho members of this assembly on the
exceedingly prosperous conditions which
prevail in their respective districts con
ditions of thrift and competence which
have never been equalled in the history
of the state Without attempting an
analysis of the cause it is apparent that
a goodly heritage is ours
You are assembled at a time when
history is being rapidly made Never be
fore has there been an era when the
public conscience was so quickened to a
sense of justice and when there was such
a general demand for the purging of the
inequalities which have been tolerated
In our civil system The time Is ripe for
improvement along ethical lines Abuse
of special privileges and opportunities
must give way to justice Organized so
ciety has drifted to a higher plane and
the Inquiry of the times is how can the
greatest good be conserved and guaran
teed to the greatest number This I
take it is the present day spirit and I
trust it is the dominating sentiment
which will control the actions of each of
you through this entire session
The Revenue Law
The condition of our state revenues Is
rapidly assuming a moro satisfactory
phase The hostility which the new reve
nue law engendered in the campaign of
two years ago has almost entirely disap
peared and the measure is now generally
regarded as botfi wise and benoncent it
Is equal to the necessity of raising suffi
cient funds to meet the economical ad
ministration of state affairs and the grad
ual extinguishment of tho floating debt
two ends which must be met A needed
amendment however is one which will
require the railroads to report to the
state board of equalization and assess
ments the actual amount of earning of
each road within the state as one of the
bases of assessment Freight rates in
Nebraska are considerably higher than
in the states to the oast and yet the
earnings of the roads doing an interstate
business arc reported to the several states
in the ratio which the total mileage bears
to the mileage within each state This is
a manifest injustice to Nebraska If the
railroads persist in charging our people
higher rates than they do the people of
Iowa and Illinois then the earnings re
ported to our state board should be cor
respondingly larger and tho assessment
should be affected accordingly The new
law has now been in active operation
three years and during that time has
been under the rigid scrutiny of all in
terests With the exception of two of our
railroadsystems the Burlington and the
Union Pacific it has met with unquali
fied endorsement The railroads men
tioned regard themselves seriously ag
grieved in the matter of the amount of
their assessments and the consequent en
larged taxes They have gone into the
courts to test the legality of the action
of the state board of equalization and
assessments so far as it affects them
nnd though they lost their suit in the
United States district court they have
appealed to the United States supreme
court where the issues are now pending
The amount involved is twenty per cent
of the total taxes due from the two roads
to the several counties with the excep
tion of those counties where the amount
in controversy is less than 52000 For
the years 1904 1905 and 1906 the total
of taxes thus withheld is about 1000000
Approximately 100000 of this sum be
longs to the state and the remainder to
the several counties school districts and
municipalities Manifestly the failure to
collect such an amount of tax is working
great hardship and embarrassment to
many county treasuries Firmly believ
ing that the railroad assessments as made
by the state board are not more than the
law makes obligatory and are not out of
proportion with the assessment of other
forms of property I confidently look to
the highest court in the nation for a vin
dication of the states right to assess any
and all corporations upon the actual value
of their property and the issuance of an
order compelling the payment of all de
ferred taxes
The State Debt
A fairly satisfactory progress has been
tiered a decision wlncn in all probabillrj take a wse of tho wo nc oxpenua
finally disposes of the suit brought y
the state to recover from the bondsmen
of former State Tieasurcr J S Hartley
The state- lost though tho decision re
ferred to was based on a mere technical
ity This famous case has run the gaunt
let of the courts for a number of years
ami It now appears that there Is no pos
sibility of recovering from tho bondsmen
any portion of the Hartley shortage Such
being the fact it remains for tne Siate
treasury to adjust Itself to the consequent
conditions Section J Article S or the
constitution reads as follows
All funds belonging to the state for
educational purposes the interest and In
come whereof only are to be used shall
be deemed trust funds held by the state
and the state shall supply all losses there
of that may in any manner accrue so
that the same shall remain forever Invio
late and undiminished
It Is therefore obligatory upon your
body to make provision for the restitution
of the depleted funds either by authoriz
ing the drawing of a warrant upon tho
general fund for the amount payable to
the treasurer or by authorizing a special
levy upon the grand assessment roll cov
ering one or more years sufficient to meet
tho requirements The items and amounts
of such shortage are as follows
Permanent school fund 239S12S7
Permanent university fund 9775 93
Agricultural college endowment
fund 4icsci
Normal endowment fund 1260009
made during tne past mennium in tne re- -Lincoln Hospital for tho
An a i n r rA ai i niiiitiiiiii
UUUUUII Ul LUC 25LILV UVlfl S 11 1 w 1 1 1 1 J Ul
30 1904 the outstanding general fund
warrants aggregated 225338640 On No
vember 30 1906 the same item had been
reduced to 19166S131 a total reduction
for the biennium of 33670509 Of this
latter amount 273946S0 is directly
chargeable to the redemption fund act
created by the last legislature providing
a one mill levy for the gradual extinction
of the floating debt It will thus be seen
that the excess of receipts over expendi
tures for the biennium aside from tlse re
demption fund was only 6275S29 indi
cating that in the matter of appropria
tions the previous legislature left but lit
tle margin between receipts and disburse
ments
The estimates now in the hands of the
state auditor for the maintenance of all
branches of the state government during
the next biennium payable from the gen
eral fund total the enormous sum of
341614384 the largest estimate over
submitted to a Nebraska legislature The
estimated general fund receipts for the
biennium are 292667472 a sum 4S9
46912 too small to pay the estimated bills
It requires no argument to prove that the
pruning knife must be applied to these
overgrown estimates Tne treasury must
be protected from the threatened on
slaught It will not do to make appro
priations even equal to the estimated re
ceipts let alone in excess of them There
must be a gradual debt reduction not
only through the operation of the redemp
tion fund but also through a wise and
economic conservation of the general
fund
economical administration of affairs and
the state demands that you make good
The attacks of those who have designs on
the treasury will be most aggressive and
persistent but you must stand firm for
the interests of the taxpayers and the in
tegrity of the treasury
Pure Food Law
After many years of effort congress hap
finally passed xi pure food law very com
prehensive In its scope affecting all food
products and also drugs and chemicals
which enter into the compounding of
medicines The federal law applies only
to interstate business It prevents the
traffic in impure food products across
state lines but does not prevent the
manufacture and sale of such products
within tate nnes It is evident that if
the peojH of Nebraska are to receive full
benefit rrom the present agitation for
pure wholesome and truthfully branded
food the national enactment must be sup
plemented with a rigorous state law em
bodying the same features otherwise
Nebraska will become the of iumer
oua factories for the produ uion of in
jurious food supplies all of can be
sold with impunity within the state so
long a we have no state law to the con
trary I recommend that the best effort
of your respective houses be given to the
framing and passing of an adequate law
which will give to our people ample pro
tection along the lines indicated
Shortage of Permanent School Fund
On June 20 1906 the supreme court
Total 325rS750
Railway Commission and Freight Rates
The previous legislature provided for
submission to the voters of an amend
ment to the constitution creating a stato
railway commission of three members
This amendment was adopted by a large
majority at the late election and at the
same time the first board of commission
ers was duly elected Willi reference to
the powers and duties of the commission
the joint resolution submitting this
amendment reads as follows
The powers and duties of such Com
mission shall include the regulation of
rates service and general control of com
mon carriers as the legislature may pro
vide by law etc
It will be necessary for your honorable
body to define in detail the duties of this
commission and to confer upon it ample
authority to effectively deal with the sub
jects which will come before it Von
are to fix salaries of the members and
make provision of such clerical help as
may bo needed presumably one secretary
to the board You should make it cer
tain by legislative requirement that the
person selected for the important position
of secretary shall have had practical ex
perience in connection with railroad man
agement and rate making able to meet
the railroad olllcials upon their own
ground and thus capable of rendering the
more valuable assistance to the board
The people are looking to this commission
for relief from railroad oppression Tho
measure of success achieved by the board
will very largely depend upon the choice
of a secretary He should be an export
The railroads hav been a supreme fac
tor in the development of Nebraska and
no one will gainsay tholr right to reason
able returns upon their actual invest
ments It is also right that tho people
should be protected against unjust dis
criminations and extortionate rates The
remedy of national legislation is being
vigorously applied and it remains for the
several states to be equally aetivo I
favor such legal restraint as will operate
against discrimination and will guarantee
equal privileges to all Now that the peo
ple have established a railroad commis
sion and have authorized you to clothe it
with ample power marked improvement
along these lines is confidently expected
Education
The growth of our educational system
in all its branches has been phenomenal
and highly satisfactoiy Our people an
alive to the importance of good schools
and have ever shown a willingness to pro
vide for the needs of such institutions
whenever the need has beiu made mani
fest At the present time the state is
supporting by direct taxation the univer
sity and two normal schools in addition
to five junior normals a school for the
blind and for the deaf and dumb I have
no doubt but that your honorable body
will carefully consider ihe requirements
of all these institutions and will make
such appropriations as will further their
piogress and be in line with the growtli
and development of the state
Institutional Comments
I am pleased to call your attention to
the fact that the penitentiary is nearly
self supporting in the department of
maintenance The current biennial report
of the warden shows that for the six
months ending November 30 1906 the per
capita cost of maintenance was o7
During chat time the per capita earnings
of the convicts were 5099 making the
ret maintenance cost to tho state but
1508 for each inmate a little less than
nine cents per day Tho physical condi
tion of the prison is first class and it
stands today as a model institution of its
kind
The three insane asylums of Nebraska
have each been created by different stat
utes and are known by different names
That at Lincoln is known as the Ne
braska Hospital for the Insane the one
at Hastings is designated Asylum for the
Incurable Insane while the one at Nor
folk is styled tho Insane Asylum at Nor
folk Owing to the variations in the
statutes creating them some perplexing
questions have arisen and are likely to
continue to arise in the future with re
spect to their control management and
legal status I deem it important that
tho chapter of our statutes dealing with
the insane be revised that the thiee asv
lums 10 placed on exactly the same foot
ing that they be stvied resnectivelv the
Insane tho
Hastiisrs Hospital for the Insane and
the Norfolk Hosnital for the Insane
that there be no distinction in the char
acter of the patients received at eitiiT
institution and that the stato be con
veniently districted so that each asvluni
shall receive the patients coming from its
own district The word incurable is
almost brutal in its suggestion and it
should bo omitted from the title of any
and all of the asvlums
Anti pass Law
Durincr the past two years a very gen
eral sentiment has developed against the
issuance of free railroad transportation
Rreh action oi the part of railroad of
ficials is rightlv regarded as unjust ds
c imnation and is beine subversive of the
public weal Both the meat political
pirties have declared against the prac
tice in thoir state conventions and have
pledged themselves to definite action I
recommend that at as early a date as Is
practicable you add to our statutes a
rigid anti pass law applicable to all
eises save those of bona fide railroad ti
ploves the members of their immediate
f imilios and eare takers of live stock
With tho exceptions noted a heavy pen
alty should bo imposed both on the party
who issues a pass and the party who
solicits the same
Direct Primary
I ursre your honorable bodv to give to
tho stato sime form of a direct primarv
law but with such limitations as will
nviko it popular and effective It should
reidlv guard against the selection of can
ddates who may have received a plural
ity of the votes cast but not a majoritv
and should in all respects safe guard the
principle that the majority have the
right to rule
Law Enforcement
I have a firm conviction that the chief
f xeeutive should have more specific power
conferred upon him in the matter of
law enforcement Seetion 6 article of
the constitution reads The sunreme
executive power shall be vested in the
governor who shall take cure that the
laws bo faithfullv executed Whil the
foundation i well laid the statutes are
not sufficiently broad to give to the gov
ernor tho power which is often needed
to correct abuse a number of complaints
have reached me of refusal on the port
of countv attorneys to prosecute offenses
oeon when the neeossarv complaints etc
hive been placed in ther hands On
apenunt of sch neglect of dutv the law
abiding sentiment in the community hn
been outraged ad great wrong has been
done to the rights of established so
eetv The governor is powerless to in
terfere because he has no control over
cvntv attorneys I recommend the cre
ation of a statute providing tiiat in all
onmnnl cases and in civil matters where
in the state is interested where proper
complaint has been made to the county
attorney rnd where no neglects or re
fiSs to prosecute that the governor be
gvon power to either command such
countv attornev to immediately institute
vigorous and faithful prosecution or in
lieu thereof to hire special- counsel to
or the couniy or to uj both and In jvont
of the continued neglect or refusal Of
such county attorney to act that in
governor be given absolute powr U re
move him rrom office forhwlth Srh a
law would prove of tho greatest import
ance to the cause of good government unci
vould remedy a defect which now plain
ly exists
The Parole Lav
My observation is thatthu parolo law
suction 570 of the cilmlnul code is u wise
addition to the statutes and that its
practical workings are humane and banc
ilcial The highest result sought to bo
attained by confinement in the peniten
tiary Is reformation rather than revenge
an impetus to correct habits of llfo
lather than the mere visitation of condign
punishment The power of parole if dis
creetly exercised can be made thn means
of a permanent uplift to the puutlnent
one at the same time relieving the statu
of the direct care of such in the four
years of my tenure of olllce there havo
been very lew violations of the tenj3 of
parole It being impossible to entirely
guard against Imposition
Drafted by Joint Committee
I believe the public Interests will bo
best subserved if all bills affecting tho
more important matters of legislation
could be formulated and introduced by
a Joint committee of the two hoiiKoH This
suggestion Is especially pertinent to such
subjects as direct primary anti pass
f i eight rate ami railroad legislation Any
other course Is likely to result In a multi
plicity of bills upon the same subject
a divided support and either no legis
lation at all or the final adoption of a
faulty measure
State Treasurers Bond
The attorney general holds that under
our present law governing the giving of
indemnity bonds each of the Individuals
or guaranty companies signing such a
bond are liable lor the whole amount
The law di s not permit of a dlvlslou
of the entire amount of the risk between
individuals or companies each taking a
part and being responsible for no more
One bond must cover the whole amount
and each party signing it is liable for
all the risk This construction and it
is undoubtedly correct makes it very
difficult for the state treasurer to give a
satisfactory guaranty bond in so large an
amount as Is required 1000000 for tho
reason that but few of the bonding com
panies will sign a joint bond In view
of these facts I recommend that tho law
governing official bonds be amended so as
to permit of the division of large risks
between several companies eacli giving
its individual bond for such part of the
risk as Is apportioned to it and being
responsible tor no more and that tho
amount of risk permitted to any company
be limited to twenty live per cent of its
capital and surplus
State Suits Involving Heavy Loss
The suggestion or President Koosovclt
in a recent message to congress that a
law should be passed to prevent courts
from setting aside just decisions for mere
technical enors in pleadings instructions
and evidence recalls some of the civil
cases wherein the stato of Nebraska vas
on technical grounds a defeated party
and brings to public attention the ne
cessity for providing a remedy against
public losses like those revealed in the
litigation of civil cases instituted by the
state
If the people can not get relief by means
of a statute like that suggested by Presi
dent Uoosevelt provision should be made
to amend the constitution to meet present
conditions
The Junkin Act
Tho power of the state to curb trusts
monopolies and conspiracies in restraint
of trade lias been demonstrated by the
enactment and enforcement of the Junkin
Act This is a law passed by the last
legislature entitled an act to protect
trade and commerce against unlawful re
straints and monopolies and to prohibit
the giving or receiving of rebates on tho
transportation of property and to provide
a penalty for the violation thereof
Shortly after this act went into effect I
directed the attorney general to bring a
suit against the Nebraska Grain Dealers
association which has resulted in a
sweeping decree issued by the supremo
court perpetually enjoining the members
thereof from monopolizing the grain busi
ness and conti oiling the prices of grain
The effect of the suit was to give tho
producers of grain the benefit of one and
onfourth cents per hundred which had
been unlawfully cnarged for elevator serv
ice and to restore competition In tho
grain business throughout the state A
similiar action was brought against tho
Nebraska Lumber Dealers association the
result of which is now pending in the
supreme court The bill carried with it
an appropriation of 10000 to be ex
pended under the joint direction of Jie
governor and the attorney general and
of this amount 24202 has been used
Supreme Court and Commission
During the past two years the supreme
court limited by the constitution to three
members has been assisted In the con
sideration of eases by a commission of six
members and tiie nine so working to
gether have reduced tiie docket so that
cases now coming from the district courts
can b heard and determined within a
little less than a vear The commission
system is a makeshiit to add to the ju
dicial force without contravening tho con
stitution The system is rather cumber
some not entirely satisfactory and should
be tolerated only until such time as the
constitution can be amended to provide
for a court of sufficient membership
I recommend that you submit to tho
electors an amendment to the constitution
providing for a supreme court of five
members to be increased to seven mem
bers as the public service may require
and it the discretion of the legislature at
a salary in proportion to the responsibility
and dignitv of the office Such an amend
ment would no doubt be sanctioned by all
parties and could be mad a part of th
ballot and carried as H the railwav
commission amendment at the last elec
tion
Child Labor Lav
Public sentiment is greatly stirred at
the present time bv reason of the abuses
cident to the employment of child labor
Every child has an inherent right to an
opportunity for self improvement and tho
best interests of society in goneral de 1
mand that that right should have con
crete expression The employment of
children of tenders years in factories
stores theatres concert halls saloons
and in even worse placs is a cimo
against youth and if persisted in will have
a serious eect upon the body politic T
recommend that an adequate law be en
acted upon this subject and that there he
coupled with it such a compulsory educa
tion section as can be made effective
Railroad Passenger Rates
With the abolition of free transporta
tion which I assume this legislature wilt
accomplish will naturally r ome increased
earnings of the passenger departments of
the several railnjads As thhse corpora
tions are already earning suflicicrt income
upon their stocks and bonds it forlows
that the people should have the benefit
accruing bv reason of the d is ippea ranee
of the pass Assuming that the anti pass
law will be rigidly enforced its is a safe
conclusion that a reasonable reduction in
present rates can be m de without doing
inestice to tho railroads I believe the
selling of mileage books good for 1000
miles or more at - - of two cents per
mile and trin tickets t two and one half
cents per mile wotrid Ve fair and just and
I suggest these rates for your considera
tion
normal sohinl
60Srn host
S3n
The governor appends two statements
one giving the estimated receipts for the
fiscal period commencing April 1 1907
and ending March 31 ITD These are
based on Sij per cent of the amounts levied
for all purposes under the grand assess
ment roll of 1906 and smdrv other collec
tions based on actual receipts during tho
last two years These total SS1G153902
This sum is divide among the various
funds as fnn Teneral 52 92 n7t 72
school niit rsft 5i77573
sis lb- sme library
it I fr insane 52 51233
The other tato rt is an estimate of
evpenditures for fi sa u fiscal period
For new t improvements tho
amount is S17i and for actual cur
rent expenses 0 27S whic with the
state school or 35093767
to be disbursed Tu Tnr IUi7 and 1903
makes a total of tnsS3151
Permit me to siv thit tle public wel
fare has been largely committed to your
hands f the coming two years I sin
cerely hone that the st Ue may be richly
benefitted by yur deliberations and
that you may each have Divine guidanca
In the of v v dut e
JOHN If MICKEY
i