Nebraska Newspapers

    GOVERNOR'S MESSAGE
NEBRASKA AFFAIRS EXHAUS
TIVELY REVIEWED.
Recommendations for Mrw I.rglslarhf>n la
Varloai Directions -A Plan far Kn
harming the Pinnaces of tlie HlMtit—
Greater Economy 1 rgcd—Immediate
Relief for Drouth Mnffrrvri Itecom
niMtdud—Other Matters Tonrhrd t’pon.
Gar. rrounie’i Last WonU.
Tha biennial mrasage of Governor tarento
Crounse m read to the senate and th© house .
of representatives yesterday (« an follow*:
Gentlemen of the Sonata and Hoima of j
Representatives: In obedience to a con- |
ttltutlonal requirement It Incomes iny
duty at wall at It In my pleasure
to roinm mi if* to for jour considera
tion such Information as 1 may posses* con
carniug tho affairs of the stair, together '
with such recommendation* touching needed |
legislation as observation and experience '
during mr two years in th© office of chief
executive have suggest mi.
With vou for the tiina is lodged the duty of ■
making laws for the state, a duty which in !
vulvas no light responsibility, Heebie some i
digrw of familiarity w ith the methods of |
legislation, it presuppose# a thorough |
knowledge of the state's condition and j
needs. To furnish such knowledge in great <
part the law requires all officers if the exec |
utive department, and of all the public In- j
•ti tut ions, to make a report of the condition. |
management and expenses of their several ;
offices and institutions. These reports have j
been made for tho biennial period Just, closed |
and will lie placed before you. They have i
been prepared with car© and contain much I
valuable Information. 1 commend them to I
your careful studv. I
Reiter for Drouth StifTerora. j
The period Intervening between the meet- .
tug of the la»t legislature and your present j
assembling has b***ii on© of general depression i
throughout the country, which hn« been os- i
pccinlly aggravated with our people by the j
partial failure of crop* in the year 1893 and I
their total destruction in a large portion of
the state in the year just dosed. This
double misfortune has resulted In a condi
tion of distress in tuany localities which has
been followtul l»y numerous and urgent np
KaU for help Inspired by the action taken
Him legislature of IMH for the bcnetlt of
•ttfTerora from the drouth of 1 Him, frequent
demands have been made on me during the
last six mouths to call an extra session of
the legislature to take notion in the matter.
Notwithstanding the contfrrt it would have
given mo too*ape three importunities by 1
turning the subJ«'Ct over to the legislature, J
1 decided not to ttmko the call. To have !
dorr so would have l»ee:i to make thn ac
tion of Nebraska exceptional among the
•tate* similarly afflicted and would have
given the state an undesirable advertise
ment. 1 also know that, in the action taken
In 1891, the state had reached its limit c»f
IndebtcdnesM under the constitution, and
considering the empty condition of the
treasury and the inability to appropriate
alii, 1 chose not to incur the large expense
which would attend an extra session, but de
termined to leave to the several counties the
can* of their noedy till tho convening of the
regular session. While my decision has bean |
a disappointment to soma of tho more im
portunate and less considerate, in tho main it
has had pretty general approval, and tho
aaverni counties amt localities where distress
•xist« have gone to works and by engaging
In works of internal improvement and ny or
ganised effort have furnished work and sup
plies for the needy.
In the meant into I have revised and re
formed the relief commission of 1KPI which
has l*een actively and earnestly at work
aarertulning tho extent -and location of the
relief required and in soliciting and distrib
uting aid. Considering the stringency of
tho Mined donations both from within and
from without have been quite liberal. Espe
cially are tho thanks of the state duo to the
state of Oregon, which through tho chamber
of commerce of Portland, has already do
nated several car loads <»f grain and provi
aions. and to tho states of Illinois, Indiana
ami Iowa, which are making generous ship
ments. Thanks are also due to the several
railroads of the country, and especially those
whore lin*»s extend into this state, fur gtm
trmulv giving free transportation to all
donations for tho relief of our citirons, tho
aggregate cost of which at usual ratoa
would have been many thousands of clonal's.
Tile sum of nil donations, consisting
of flour, grain, food of various descriptions,
coal and clothing, amounts to something
like luO carloads, fifty of which have boon
coal. All of this and what is still to comes
together with what the several counties
•ml localities have supplied, must go
far towards affording the relief required.
What tho legislature may choose to do or
find itself able to do U for you to determine.
That there are and will be ease's of distress
unprovided for, and would l»e under the
luort liberal provision for the care of all, is
in the nature of things. Modest ami spirited
people will submit to want rather than beg
or eat the bread of charity. On tho oth r
hard t hem are tho immodest, importunate and
undeserving who are ready to pro tit at tho
expense of the deserving. The history of
the distribution of tho aid given by the state
in 1891 shows that in some instances weM-to
do people, men who lmd money in banks,
shamelessly shared the bounty designed for
their unfortunate neighbors. * People of that
class have been most importunate for an ex
tra tension of tho legislature and a repetition
of the experience of 1891. Disappointed iu
this a* appears by letters ami circulars
which have found their way to my table,
they have undertaken to berate the executive
and to solicit aid on thoir own account
rather than through the commission organ
ised for that purjx»so. While some of these
circulars may have been inspired by good
motiothers have not and all have
brought but little good and much discredit
Tin' .Most Prosaliift Mutter.
The first iuiJ most press i rw subject de*
ir.MiitiuR your attention, therefore, will 1*
the action that should be taken for the re
lief of sufferer* by the late drouth. With
the limit of indebtedness which, under the
constitution, is fixed at $100,000. already
reached by the action of the legislature of
lff'l in voting $100,000 in bonds for a like
purjx*se, and the gemral fund, carding
some hundreds of thousands of dollars, in
meeting its 7 per cent unpaid wrrrants, you
ere confronted with the question of right,
as well as of wisdom, in voting any state
aid. To my mind the giving of donations
from the state treasury is of doubtful pro
priety nud should ouly be done in extreme
or unavoidable occasions. A too ready and
frequent response by the state begets de
pendence, destroys manly pride aud euoour
ages improvidence. My idea is that the
several counties should care for their own
needy. Many of them are free from debt
and abundantly able and willing to do so.
What they want is power to raise means on
county bonds, if necessary, and donate or
loan tuo money’ to their citizens who are in
need for suen time and on such terms
as may seem best. Each county
feebug its own responsibility and
Eiaving a concern for its own* people
will give thorough investigation in all cases
, and distinguish real from pretended cases of
need. In this way relief can be brought to
the deserving for a quarter or less of the ex
pense that it would cost the state. This
plan would not only serve for the present,
nut would be applicable in other years
should there be a repetition^! the experience
•of lb'.Vh Furthermore the bonds issued un
der such pro viaion woud furnish good in
. eestmont for the permanent school fund of
the state. If any risk were to bo taken on
any of these bonds the state might as well
take it as to make donations outright from
its treasury. I might further suggest that
as an emergency exists the powers of county
commissioners or boards of supervisors
might bo temporarily enlarged so that
pgyranta, under certain restrictions^ might
he IdiinI. fundable later in the bonds rec
ommended.
The Mate's Financial Condition.
The financial condition of the state la twit
and I truat .you will nut allow tba aeaalon to
end without hut lug taken stops to mono it
From the r«'|»irl» of the trnaaurar and aud
itor it will lw xten tliat on the lit day of De
enmlier Inst there nereoutstanding warrint*
drawn on 'he Keueral fund to the amount of
IW7'>I.|h and on the faoblo-minded Institute
! f"»d f"f Idl.'Jiiil.liit, making an aggregate of
! fUA-V-H II, with only Ot.MKl.Cf In those
funds from wlorti to pay them At the Mine
time I here was In the treasury *417,318 til of
Idle money belonging to the fiermaneat
school fund. In other words, the state wus
Wing internet at the rate of 7 |jor cent tier
nnniiiu on upward* of sis hundred thousand
dollars and wat losing interest oil ovyr fottr
hundred thouiand douari. it under the law
of lmit the [lermam-nt ichool fund could
have been iuvmtisl in theae warrauta a« it
waa Intended, much of this iutereat, Instead
of going to warrant broken, would bo saved
for the lamellt of the schools of the state. But
unfortunately the supreme court has decided
that law lno|ieratlva, as will lw referred to
In another part of this communication. This
load of high Interest-lieuring debt lias Iwcn
Incurretl by appropriationa made by more
recent legislature*, notably that of INW1, in
excess of taxes that could lw levied and col
lected under our preaeut revenue laws. The
assessors of the state vie with ona another In
thalr efforts to reduce the valuation of prop
erty. In this they are encouraged and sup
jiorted by the natural disposition of one pre
cinct or county to shift iu burden of taxa
tion on the others. As a result the proiwrty
of the state, which by the census of ltftSlls
estimated at 11,37ft, MAI, 514, is assessed at
about $180,000,1100, or less than 1ft |ier cent of
Its value. Under the present limit of ft mills
levy on the dollar for tb« general fund it is
hardly posaitilfc, with the otMervanco of the
utriotoKt <v*onoiny,to raiso on so low a valua
tion sufficient money to meet the needs of
The remedy for this lies’either in nn In
creased valuation of the property of the
utttto or in extending the limit of the levy.
1° extend the limit of the levy in simple and
nn Increased va nation can be effected in
(lifTerent way*. Ono is by providing for tho
assessment of property through state or diu
trict assessors, and thus removing the work
from lorn l inti nonce. Another is by giving
greater power to state and countv equalizing
tsi&rds. The Hfate equalizing lx>ard, con
sisting of the governor, treasurer anti aud
itor, under tho present law can make no
change in the assessment roll as it comes to
them. In equalizing state taxation among
the several counties its power is restricted
to varying tho rate under the limit fixed as
applied to one county ami another. Its au
thority should lm enlarged so that it could
uot only raise the valuation of any particu
lar county or counties, but increase tho as
sessment of all the property returned to any
extent not exceeding its true value.
lu the auditor's report will be found a
statement showing the excess of appropria
tions for several years, tho percentage of de
linquent tax and other interesting and in
structive information bearing on this sub
ject.
Deposit of 8tato Funds.
The legislature of 1891 passed nn act pro
viding for the dciinsit of state and county
funds in l>anks. The wisdom of such a law, as
far ns it concerns the money of the state, to
my mind, is doubtful. In ordinary or nor
mal times its operation might be attended
with little risk, but in times of financial
itringeucy and uncertainty, such as have
prevailed for the two years last post, it is
liable to bo accompanied with much hazard,
as experience has shown. The law imposes
on oracers who are chosen with no special
reference to their tit ness for tho task tho
duty of determining the solvency of the
proposed depositories nud the financial abil
ity of the obligors on the several bonds of
fered as security for deposits asked for.
The act does not even provide that the
sureties shall make oath as to their responsi
bility nor for any sworn statement of the
amount, character and value of the prop
erty owned by each. Notwithstanding this
the approving officer*, consisting of tho
governor, secretary of state and attorney
general, follow ing tho practice of tho courts
nave, as a rule, demanded of ail sureties an
oath showing their liability over and above
exemptions. Even this precaution has uot
proved a protection, for in ono notable in
stance tho requiml oath was taken glibly
and unhesitatingly and a rotten bank which
had successfully decoived expert bank
examiners and hundreds of inno
cent depositors succeeded in putting U]k>u
tho state au almost worthless bond for a
large sum. Luckily in the case referred to,
that of tho Capital National hank, it will be
found, 1 believe, that no deposit was made
under the bond and the state is not
tho loser by the transaction. During
the past two years of financial
stringency tho law was been an invitation
to the hanks of the state to apply for funds
which some of them could get in no other
direction seemingly, and no less than fifty
nine applications and accompanying bonds
have been received. Of these forty-seven
were approved -enough to many times ab
sorb the comparatively little idle money in
the treasury nside from the permanent
school fuud, which the supremo court in the
cose of the State vs. Bartley has decided
not subject to deposit under the law’. This
list of depositories includes mauy banks of
undoubted standing, some of which were
solicited to apply in order to furnish the
treasurer avenues iu which to safely put out
! the state's money.
Still another question arising under this
act is as to how long this approval of any
depository is to hoi |, The conditions which
| warrant the approval of a bond today may
| change In the course of a few months in
| these times of uncertainty, and it is hardly
; supposable that the board could keep track
i of such changes. Still, it is iu heh&lr of the
! bank with such failing security that tho
| strongest personal and }>olitlcnl influence
would be brought to boar, and the treasurer
might yield to such importunity without
p rsonai responsibility or liability on his
part. If tho law is to bo continued it may
be well to consider whether it should not
I provide for periodical examinations into the
| sufficiency of the several bond* and a limi
tation be fixed to the life of them without
i canprovul, and such other amendments as
will give additional security iu depositing
In this connection I may add that as a
I measure of additional safety in deciding on
the value of some of the bonds offered, the
board employed the services of one of the
leading commercial agencies, having an of
fice at the capital. The services have been
valuable, the price agreed upon reasonable,
and I would recommend the payment of the
charges made therefore.
| Investmentot Permanent School Fund
To the state have been given the sixteenth
and thirty-sixth sections of land for the ben
efit of its public schools. The constitution
has fixed the mimiiumu price at which there
lands can be sold at $7 per acre. The money
derived from the sale of these lauds forms
a permanent school fund, the interest
on which, together with the rents
from unsold lands, furnishes a temj'orary
fund which is applied to the support of the
public schools. It is therefore important
that this permanent school fund shall be at
all times invested, and at the best rate of in
terest obtainable. As a member of the board
of educational lands and funds I have
labored earnestly to effect this. The law
limits the investment of this fund to United
States or state securities aud registered
county boutls. No state bonds have been of
fered during the last few years and,
owing to the low rate of interest
and high premium commanded, and
in the hope of being able to invest in county
bonds,which ordinarily pay the best interest*
the money has not been tied up in United
States bonds. But owing to the depression
of business, failure of crops and other causes,
but few counties have made new issue of
bonds and those issues have been eagerly
sought by bond brokers. Where the board
has heard of any proj>osed issue it lias been
prompt to assure the county authorities that
the state would purchase them at as goon or
bettor rate than obtainable elsewhere. In
some few instances county bonds have thus
been secured, bi*t In others, through private
arrangers)Ant* with agents, by the imposition |
of terms which the board had no Dower to I
comply with ami by other method* not
necessary to recite, the offer of the state j
to pay to the county direct such (setter price :
has l#een disregarded and the bonds have had ;
to be obtained, if at all. through second ;
hands, and at an increased price.
in order to keep the entire permanent !
school fund at all times invested and earn
ing some interest 1 would rr<cunim«Qii
| the enactment of a law directing the board
I of educational lands and funds to invest all
moneys of that fund not otherwise invested, j
in United Ktates bonds, with authority to j
sell and convert them from time to time ,
iuto other lawful and better interest paring :
| securities when opportunities offer. With- !
! nut an act of tho kind suggested the board
is powerless to make such conversion. This
was so decided in an opinion given by the
supreme court as will be seen hr reference
i to page CM, fifteenth volume of Nebraska re- :
ports. f
i lu answer to questions submitted to the
! house of representatives the supreme court i
1 gave an opinion to be found on page rtJW, ,
| volume *J5, Nebraska reports, holding that I
state warrants issued in pursuance of an ap- j
i propriation made by the legislature and !
! secured by tho levy of a tax for its payment 1
are state securities in the meaning of the .
constitution, which says that educational
funds may be invested In state seenritiee.
Following this decision the legislature by a
law, found In the session laws of
1H0IV chapter 4#, declared that when a
warrant of that description shall be pre
sented to the state treasurer for payment
and there shall not be money in the proper
fund to pay said warrant, the state treasurer
shall pay tne amount due on said warrant
from any funds in the state treasury be
longing to the permanent school fund,
and shall hold said warrant as an di
vestment of said permanent school fund.
Karly in his term or ofllce and even before a
levy had been made for their payment and
they had become state securities, the pres
ent state treasurer had, for some reason, paid
a large number of wurrants drawn in favor
of members of the legislature and others,
and for the payment of which there was no
money in the treasury other than the school
fund, but later and after the levy of a tax
hail been made for their payment, the treas
urer for some other reason declined to pay
any more warrants and turned them into tho
permanent school fund, contending among
other things that he must first have the di
rection of the board of educational lauds to
purchaso warrants.
v um i niieiuinca mu i rcnsiiier.
In order to ooni|iel him to comply with
the Iniv tho attorney-general, at tho instance
of the boat'd, instituted proceedings in tho
supreme court. That tribunal sustained the
treasurer, holding that inasmuch as tho
constitution hnd constituted the governor,
secretary of state, treasurer, attorney-gen
eral and commissioner of public lunds and
buildings a board for the investment
of the permanent school funds, it was not
com|ietent for the legislature to omjiowertho
treasurer alone without specific direction of
the board to puy warrants and turn them
into that fund. In answering tho argument
of tho attorney gouoral, who contended that
it wap uover intended that tho board should
remain in continual session from Janu
ary l to December 111 of each year
m order to pass upon warrants pre
sented anil to make orders for their
payment from the permanent school fund,
Chief Justice Norval, who delivered the
opinion of the court answered this by say
ing: "The construction we have placed upon
the constitution will not have the effect out
lined by tho attorney general. It is tho duty
of the board charged with the management
and control of tho ichool funds to determine
when, and in what sum suid funds shall be
invested,as well as what securitieeof tho kinds
authorised, by the fundamental law, shall
bo purchased, and I he price that shall be
paid for the same. When the board has so
determined and ordered, it may by resolu
tion, entered upon the records of its proceed
ings, authorize uml direct the state treasurer
to pay out the money therefor. It may,
prior to the purchase, examine the particular
security offered for sale if deemed desirable
aud exiKidient, but it is not indispensable
that it should do so. Tho board tnuy direct
the treasurer or any other member of the
board to do that.”
With n view to meeting the direction of
the court, which seeinod to point out the way
in which the objection of the treasurer could
lie overcome, tho Issu'd was convened, when
1 submitted the following resolutions, which
were unanimously adopted, namely:
The Governor’s Resolutions.
Resolved, That the sum of $300,000 of
the permanent school fund of the state of
Nebraska, or so much thereof ns rimy bo
necessary, be and hereby is set apart, from
which to jiay outstanding warrants drawn
upon the general fund, w hich warrants nro
| registered and hearing numbers from No.
! 1:1,•-’as to 1<>,000 inclusive, together with ac
; erued interest, it being determined by this
j board that raid warrants are drawn
i in pursuance of an appropriation made by
i tho legislature and secured by the levy of a
tax for their payment, aud therefore are
stnto securities, and the state treasurer is
instructed to at once notify the several par
til's in whoso names said warrants are regis
tered of his readiness and purpose to pay said
warrants so that, tho interest on the same shall
cease as provided in chapter 03 of the com
piled statutes of Nebraska and when so paid
} the warrants shall be belli by the treasurer as
an investment of the permanent school fund
and shall bo stamped and signed ns provided
I by law.
Resolved, Also, that tho further sum of
$3.>0,000 of tho iH'rmaneut school fund of tho
state, or so much thereof as shall be neces
sary, be and hereby is set apart from which
to pay current, unregistered warrants
already drawn, as well as those which may
hereafter he drawn, against the general
fund under appropriations made by the last
legislature, it lieing determined by this board
that suck appropriations are secured by a
levy of a tax for their payment,and the state
treasurer is hereby directed to pay such |
warrants as they may be presented at the
state treasury and stuiniied, signeil, and hold |
the same ns an investment of the permanent |
school fund us provided by statute.
Resolved, Further, that the state treas
urer. a member of this board, be and hereby
is empowered to act in its behalf in deter
mining questions as to the genuineness and
ownership of any aud all warrants pre- !
sented under the foregoing two resolutions, i
and when in doubt he will rofor tue matter j
to tho chairman to be submitted to the
board for its decision.
Tho people of the state have the right at j
all times to demand the practice of tho !
strictest economy in the appropriation ami
expenditure of their money. Especially can
they insist on a rigid adherence to this rule
when they themselves are struggling uuder
an enforced observance of it in their in
dividual affairs. The greater portion of the
money which finds its way into the treasury
g«M*s for the support of the several peual,
reformatory, charitable aud educational in
stitutions of th*» state. On the way in which
these institutions are conducted, therefore,
depends to a great extent the excuses of the
state. They need that attention and super
vision without which extravagance, waste
and even peculation grow up. In my several
relations as appointing officer aud member
of the board of purchase and supplies I have
given much study to their management, and
1 think 1 can safely say that most of these
institutions were never more ably and
economically conducted than they now arc.
In fact, the limited appropriations for their
support made in 18y*i have demanded the
exercise of more than the usual ce.ro and
economy. You may recall my remarks to
tho legislature two years ago when I sai l:
“Nebraskans, in the main, are a plain
people. W ith most of them life is a perpet
uui struggle. Hard work, frugality nni
economy are their coi\stant companions.
They indulge in little extravagance tiiem
relves, aud they may reasonably expect
their representatives to govern themselves
in like manner. The tendency of the day is
toward extravagance and it nowhere mani
fests itself more than in the conduct of pub
lic affairs. Extravagance begets extiava
gauoo. An unwarranted or too liberal
appropriation of Vviay.fonns the precedent
for tomorrow, and I submit to you whether
your predecessors have not always pamed
the high water mark Such is iny opinion,
and in my judgment the aggregate of ap
propriations made by the last legislature
should be rut down fully three-quarters of a
million dollars, notwithstanding the growth
of the state in the meantime.'
Made a Hen:I uni na
Whether out of deference to my advice or
not the fart is that the sum of appropria
tions made by the legislature of 1893 was
$2,208,940.20, oh against $2,880,575 63 in 1891,
or 1637,035.37 of the throe-quarter* of a
million reduction recommended by me.
Current expenses for the support or con
victs iu the penitentiary are fixed by a con
tract made bv the legislature. The affairs
of the normal school and the university are
under the control of a board of education
and u board of regent* reipeotively. Hence
these institutions are omitted from the fol
lowing comparison:
During 1892 the remaining eleven institu
tions supported 1,564 inmates at a cost for
current expenses of $390,078, or $248 ]>er
capita, or $08 per capita daily.
During 1893 they supported 1,822 inmates
at an expeuse of $41 l,89i. or $220 per capita,
or 62 cents per capita daily.
During 1894 they supported 5,042 Inmates
at an expense of $393,327, or $192.01 per
capita, or 52.7 cent* per capita daily.
Thus it is shown that during the years of
1893 and 1894 these institutions sustained an
average number of 1,932 inmates at an ex
pense of $805,224.
The institutions produced $48,700 of this
amount in cash, farm and garden products,
although the two years Just closed have
beeu very unfavorable to agriculture. In
arranging for a wider and sharper competi
tion in bids for supplies, in providing for the
slaughter of beeves at the larger institutions
and its purchase by the carcass at wholesale
prices in others instead of purchasing
through local butcher shops, by analysis of
coal, the manufacture of scan and other ar
ticles of large consumption, by the largest
production of supplies for use of the institu
tions and of products for sale from their
lauds, and in other ways the expense of sup
porting these institutions has been greatly
reduced. What has contributed more than
anything else to their economical conduct
has been the requirement of periodical re
ports from each of them.
I'CIIIUII ,1 ui aui iH.Mii UIH ('OUSillUUOn
requires that the officers of all institutions
of the state shall make a semi-annual report
to the governor, under oath, of the monpys
received and disbursed. A compliance with
thiswise requirement it seems had never
been insisted on, and except in tho case of
the university, which is under the control of
neither the governor nor the board of public
lands and buildings, scarcely any reports of
the kind were supplied. I not only insisted
upon these reports being furnished, tint
udonted for thorn such a form ns would
present much information valuable in keep
ing watch over expenditures made. These
reports show not only the numtier of officers,
employes, inmates, money used for both cur
rent and extraordinary expenses, what hits
boon produced, consumed and sold, but
what it lias cost tho state per capita during
tho given period for bourd, for clothing, for
fuel and other items of expenditure. These
reports furnish the data from which to as
certain the relative cost of maintaining in
mates and for comparing it with the cost of
other states, as well as for ascertaining the
relative expense for different periods. While
those reports, witli a knowledge that they
ure before the executive and open to public
inspection and criticism, have served as a
check to extruvagauee and a stimulus to
greater care on tho part of heads of institu
tions, they will, I trust, servo as a valuable
guide to you in making appropriations.
I would call your attention to the need of
a revision of tho laws relating to the estab
lishment and government of several of the
state institutions. Some were provided for
before tho adoption of the constitution, of
1S75 and were placed under the direction
and supervision of trustees chosen by the
legislature. Under the constitution which
makes the commissioner of public lauds and
buildings, the secretary of state, the treas
urer and attorney-general a lioard distrusted
with the supervision and control of all asv
lums and other institutions except those for
educational purposes, some confusion has
arisen and some conllict of authority relat
ing to the appointment of officers and upon
other points which have been the subject of
decision by the courts. In one institution
the tenure and duties of an officer are llxod,
while in a similar one, and for no apparent
reason, these are loft undefined. The whole
matter should lie carefully considered and
the laws made clear and specific.
Governor .should Appoint All.
In the case of some of tho institutions of
the state the governor ajqioints the superin
tendents and other officers, w hile in others
this authority is given to tho board of public
lands and buildings. This is wrong. The
governor should be charged with the ap
pointment in all these cases and he alone
should be responsible to the people for his
actions. The responsibility for a bad ap
pointment should not lie a divided one and
one not directly traceable or chargeable to
any one person. Considerations of a politi
cal or partisan character may bo opposed to
a favorable acceptance of this recommenda
tion at this time, still sound legislation should
not be avoided for fear of the loss of some
partisan advantage. It is unfortunate that
the heads of some institutions, incases where
to fitness experience has lieen added, should
become the sport of political fortune, and
for good reasous only should tried ami ex
perienced officers bo replaced.
Actions llrouulit by the State.
Soon after my inauguration the Capital
National bank of Lincoln failed and its
affaii-s and assets, pursuant to the United
States statutes, were placod in the hands of
a receiver for settlement and liquidation
State Tieasurer John E. Hill, during both
his terms of office, had deposited largo
amounts of state funds in that bank. Au in
vestigation by a legislative committee dis
closed that ho had turned over to his suc
cessor, State Treasurer Hartley, who had
received thorn in lieu of money, 'corlitlcntes
of deposit issued by such batik to the amount
of kwSo,3bi.051 that these were thereupon
surrendered by Treasurer Hartley and the
amount thereof credited upon an account
with the bank opened bv him ns state treas
urer, aud that prior to and including Janu
ary 121, 1808, he had chockixl or drawn out
portions of this amount, leaving to his credit
on account of the surrendered certitloatos
the sunt of fM38,3H4.6J. No part of this has
as yet been realized by the state from any
source, and for that amount ex-Treasurer
Hill has failed in any manner to account, I
was advised that it’would be prejudicial to
the rights of the state upon his bond to filo
or authorize to be tiled any claim in its be
half with the receiver, and I did not do so.
I am informed that some claim in the prem
ises was presented by Treasurer Bartley, but
that as yet no dividend has been paid to
him on account thereof.
I deemed it important that an action for
tho recovery of this dofleit should be speedily
commenced uiwn tho bond of ex-Treasurer
Hill, for his last term of office, and in con
formity with my advice and directions to
the attorney-general as provided bv law
such an action was commenced on the 30th
day of March, 181*3, in tho distinct court for
Douglas county.
Irregularities In Institution*.
Other investigations instituted by tho leg
islature disclosed various apparent delin
quencies, malfeasances and embezzlements
on the part of persons connected with state
institutions, especially the asylum for the in
sane and the state penitentiary. Inconse
quences presumably, of these disclosures, the
legislature by chapter 5S of the laws of ISiid
appropriated and placed under the direction
and control of the governor the sum of $10,
000, to be used by him so far as deemed uoo
essary in employing attorneys to prosocuto
criminal cases and pay the expenses con
nected therewith where the state had been
defrauded by its officers, employes or others
dealing with such institutions, or having in
their possession or control moneys, funds,
property or effects belonging to vhe state;
or to prosecute civil actions or proceedings
?£**u** officers, persons or incorporations
indebted to the state on account of moneys,
ruads or effects b^lqn^ing the^ta, or upon
any official bond, contract or obligation for
the safe keeping or disposal of such moneys,
funds or effect*, and a supplementary ap
propriation of $5,000 was made for tb® samo
general purjx>s©s. Portions of these sums
have been expended in the proceedings here
inafter mentioned, but a considerable part
thereof remains unexpended, applicable to
the same or similar proceedings.
Under this authority I employed ex-Judge
E. Wakeley of Omaha to assist theattornoy
general in prosecuting the action referred to
upon the bond. Douglas county was se
lected as the forum upon advice of coun
sel for the state, who believed that its inter
ests would l>e jeopardized by the bias and
local prejudice which would pervade a jury
trial in the district court of Lancaster
county, where the transactions connected
with the breach of the bond and the failure
of the Capital National bank had occurred,
attended with much local excitement ana
feeling. It was, however, determined by
the district and supreme courts that the
cause of action upon the bond arose in La li
ft n caster county, ami that there only the
action could be properly brought.
Although the jiercentage of the insane in
Nebraska has not increased and is not greater
than the average in other states, yet the lib
eral policy adopted by the legislature of
1891, under whMi the state assumes the ex
pense of caring for all the insane of the state
without making in turn any charge to the
counties or to the estate cr 'relations of the
patient, has resulted in a large influx of j
patients which is taxing the full capacity of j
the three asylums. If this policy is to bo
continued there is a dcutanu for more room. I
This should not be met by a multiplication j
of asylums. By alteration of and additions I
to the three asylums the stale now has ;
ample room can be provided to anticipate
the wants of a couple of decades and at a
small fraction of the expense attending the i
establishment of a new one. Double the j
number of patients can be taken in charge '
by the same officers and maintained at a
reduced per capita expense. Whether all, i
or which one or ones, should be thus enlarged j
is Tor you to determine, and it would bo
wise if your action were guided by some
committee attended by a competent architect, ,
who should first examine these different in- j
stitutions.
These throe hospitals, located at Hastings, 1
| Lincoln and Norfolk, under the super in- j
j tendency of Drs. Johnston, Hay and Little !
j respectively, have been ably managed and 1
| desire to testify to the hearty co-operation i
and sympathy of these gentlemen and the \
: stewards under them in my efforts to reduce i
! the expenses of those institutions to the j
j minimum. A reference to the table fur- j
; nishetl you will show that the annual pec !
| capita tax expense was reduced from 1270.04 1
| in the year lblfcj to $152.65 iu 1804 at Hast- 1
ings, from $22&<2 to $l!Jtf.05 at Lincoln ami I
! from £270. to 1258.04 at Norfolk during j
; the corresponding period—all excellent :
; showings ami about equally good consider- j
■ ii'*K the difference iu population of each,
■ which of course affects the result.
; The institution at Hastings bears tho
I name “the asylum for the incurable in
1 sane.” To those who are taken there who
! have reason enough to understand the sig
[ iiitlcanco of the application and to their
friends the name stands as a terror and it
j should be changed to “the hospital for the
! chronic insane.” Whether there should be
a separate hospital for the chronic insane or
not is discussed in the reports of the several
I superintendents and their discussion is worth
your study. For reasons i cannot under
take to set forth it is my opinion that the
classes referred to should be distributed
! among the several institutions.
! Transportation of Patients. !
In connection with the foregoing I desire
to make a recommendation in the interest of
both humanity and economy. It is usual
I for sheriffs to convey lunatics from their
| respective counties to the hospital. The
common fear of a crazy person which pos
sesses people, generally leads these officers in
I some cases which have been brought to my
j attention to bind their subjects with irons
j and straps, both cruel and unnecessary, and
| tending to aggravate the malady of the
j patients. Their transporation should bo bv
a skilled and experienced attendant from the
| institution, ami mono}’provided for the pay
! meat of the actual expense incurred. This
! would result iu a saving of 50 per cent or
! more of the amount now paid.
Irrigation.
The subject of irrigation is of such im
portance as to demand special consideration
at this time. The fact that nearly or quite
half the lands within t he state lie west of the
line of humidity sufficient to insure aa un
broken succession of crops rentiers irriga
tion necessary to protect the people against
Hi.iutnr in iiiincnnlliv ,1.... --- fm
disaster in unusually dry years. The par
tial failure from drouth in 1 and
. .... .—.. .......... ... ‘ ■' -.i.-.M. anu
the almost total failure of 189f,hasawakened
the people to the necessity of providing for
watering ttie growing crons by artificial
means. The soil of western Nebraska,where
to some extent, want now prevails, is a’
fertileas that of any portion of tho imiteii
States, and in years past lias yielded
; •- - j vi.i .> jiaau_ , ...„vv
] abundant hnrvestjn response to the ei'brti
I of industrious settlers. This fac
— — -.. * —- fact hasfosterec
anti-irrigation sentiment and retarded wort
tending to the establishment of a system ol
irrigation, but tho more recent failures fion
drouth have dissipated all false opimsi
tion and started active onerutiom
in several eountios of tho state Yuc
now while irrigation in Nebraska is in iti
infancy ami necessarily experimental, it wil
lie well for tho present legislature to civ,
the subject careful study, to the ond tha'
wise legislation may bo enacted providinc
for the protection of individuals in tlieii
rights to the use of water fur irrigation pur
J loses. The right to the use of water fron
the streams should be so safeguarded b\
law as to prevent the very appearance o
monopoly and to preclude all possibility o
erroneous rendition of the laws which mai
be Jinssed covering tile question.
The deputy commissioner of tabor amtiu
du.-ti ml statistics has Dreparcd a careful re
port upon irrigation, setting forth tho exten
to which it 1ms been carried within the state
including a tabular statement, aeeompaniei
by a map, showing all statistics as far a
obtainable at this time. The question o
water supply and best methods of applvim
the same to tho land is discussed in the' ri
pen named, to which you are referred to
more extended information upon this ques
Heet Sueur Industry. j
Experiment of the most convincing anl 1
conclusive character has deneuistrated thi. 1
peculitu fitness of Nebraska's soil and rli- i
mate for the production of sugar beats. Un- '
tier the stimulus of tlie act passed by the
legislature of ISS'.t offering a bounty of 1
ivnt, and the further aotinu of congress in
1K», giving a bounty of 3 cents for e?e y
pound of sugar produced, the manufacture
of sugar spiaug tip and rapidly grew into
S’ ‘rife l'Vl:;°b nronuse to the
fv^,',i / i sut':lr factory established at
(•rand Island was soon followed by the erec
tion of another at Norfolk, h th reoreseutiog
an mve.-tment of something like a half m,lf
the vfa- f' o,'%e,fl,’ "yV*K during a part „f
m. .?-- o. employes and disbursing
111U11-, thousands of dollars in wages and ill
the purchase of teets. Under proper in
uu'fearre Vb? fa;',orirs t"ight be multiplied
"'any ot the counties of the
diversifiedti ' ri‘mlf m » umch-nee led
hold"!" fm™, UnT a!rrieuIturc'. in. waller
a largely him™. ?luent rise In value,
ment m f if, T l'OJ’ul‘itKm, the employ
ing",, ,Ve '“f of workmen, and ndd
th • state F,!-,Try y to the wealth of
that iers. IUaMth;~ it » demonstrated
sous when other V'fU},succew* ln ur-v
fmi—a matter w rthy
atiou, iu view of our recent
sons
of much consider
experience
B_ th„ T1,.° ,ion'-'ty Question,
state botmtvThfmmf lo,='iElatun“. in 1S31 tho
drawn and coi'i nf f O?crod 'vos with
pealed tho law” civ in“ SOuIece,Ul-7 ru'
cents p>r uound t‘!° houmy of 3
factories of the stiff of the two
and it is a matter , f fRS yxst u*. n closed
will continue uni Ui ’ W!K'th*r ‘heother
I should regard it „V' preM;;lt conditions,
the state if an induf i‘rf ,Ui “»?* 'tune to
and which has nr,!-,,1 of such imp- rtnnce
Nebraska should 60 m ;ch interest to
wortk your Arnett c^,aadlt 13 weU
. w c ^sderatiua whetber
unyfHing can badona by ycru to w”?
those factories we already bar*
courage the establishment of other* i!
you conclude to do so it might be hr . c
ty to the manufacturer of sugar
r“/ urn not I^h tvj
price named, and that the payment ni
bounty do not continue beyond ik*
when the general government mar
iicient protection to the Industry ’ *
naumnni nai* naw,
At the last session of the legi*!.',,,,.. ,
was passed classifying freights and*'
reasonable maximum rates to
wdln
for the transportation of the sam»Cll,,,
railroads of the state. Before the In,0"J
into effect, however, parties . *<
the several roads instituted prww'f'
the federal court to test its validitf
justness and by a recent decision
by a judge of the United States CS!
operation of the act has been\2i
The decision of the court, as I undent***
while it asserts the constitutionality^,i
act and concedes the right of the wJ, “
to enact laws of this kind, holdsthat tli.™
so fixed are not sufficiently remunerative
the roads and for that reason enjoins is
enforcement. The opinion of the IUli„
disappointing and unsatisfactory jt j!
be regretted that in saying toa’stannl
certain railway rate* established by it
unreasonable the court did not give tb* >2
some rule by which reasonable rates J!
be determined. ™
The opinion leaves undetermined a
another important and long-agitated 0»
tion, whether fictitious capitalization;
railroads should be added to their real m,
when fixing a basis upon which in™,
shall be permitted. Not only with t
to determining the soundness of thedtrio,
rendered, but with the purpose o( sen .
the questions I have referred to and u*
others which may be valuable as a gu*,
future legislation, I would advise that™
vision be made and direction given
cute the case until it shall have reachei a
court of last resort, if necessary, in orfei
definitely establish the rights of the staa
If this be not done it will be for you tnF,
sider whether a new law bo enacted, t
whether to let the present one stand aij
the business of the state shall have grown,
to it, when, under the present rulin'1
could be put in operation. '
The Huaslnn Tlilatle.
The Russian thistle, a most danm,
pest and one which has proved very 4,
aging to some of tho states on our'n -
has invaded our territory and norff»r!&g
be omitted to expel it. The matter hasten
called to the attention of our people Ly ;>
fessor Bessey of tho state university am! ty
action taken by tho state hoards j
agriculture and horticulture. Any aid ly
legislation can give towards its txUnzt
tion and resisting its invasion si. ,
given.
Publics Schools.
The report of the superintendent; of pil-'i
instruction shows that owing, no doubt *
the stringency of the times there \va>a.fJ
ing off in the money expended for the s»
port of public schools in the year j
compared with the year 1893—from
748 in 1893 to $4,745,556 in m. i
the same time it is gratifying to non- ria
the average daily attendance at school ra
from 161,152 in 1893 to 171,198 in 1>94.
Tlio State Normal School.
The state normal school at Peru is in i
flourishing condition and is doing 'M
good in meeting the demand for a h.
grade of teachers for the common seliooL.
the state. A pleasant visit to that iusiis
tion assured me that the work done there j
thorough, and the condition of things a*
found them testifies to the zealous cure«
ercised by the board of education and tij
pride it has in its charge.
My attention has been called to the fu
that the supply of water there has recenti
failed. As the buildings are not insured;a
matter should have prompt attention.
The State University.
The state university, under the acfiv«d
energetic direction or its present chatiovt
has obtained a wonderful growth in atti-ni
Mice and has taken high rank among siiofe
institutions of the land. In consider in,-'a
wants of the university as respects i ml?
is well to consider that quite a large fratSJ
of those enrolled is in attendance upw u
preparatory school and they are not univer
sity students proper. This preparatory
jjartment is in a sense a high school, wfed
with its superior advantages, naturaily o
vites a largo local attendance. Of the i.tf
pupils iu attendance, and whose
none j is given in the last report of the ro^sa
571, or about 50 cent, are eroiM
to Lancaster county and presumably m
from tho city of Lincoln. The regents »
nounce their determination to graiss?
drop the preparatory work. This condusu
is a proper one. It ’will not only limit **
work of the institution to tho objects
lernplated in the law establishing it and 9
which the bounty of the general gojp
ment and the support of the state are 1>L"?
al.y given, but will be something of a
in determining whether any adliiw®
room should he provided, and if so, sw'
much.
The comprehensive report of the re:ei
covering tho biennial period just closed «
be laid before you and will give you iuue»*
sired information respecting tho in1'*
tion. It closes with a statement 3
needs, which include the large sum of
000 for new buildings ami appurtena^
and repairs of old ones, beside the iw[
amount for current expenses. The ft"!®*
comes at a time when both the condition1
the treasury and the condition of our l*0!
can ^ illy respond to it. '
share in the just prido the people of the >»
foci in the university, and appreciate tw
portance and desirability of provide-,
higher education for our younir, yet '
not repress the suggestion that witb j
state, as with the family or individual. •
question of cost and ability to pay lJ ®
ho considered in connection with the qut>s“
of desirability.
Other State Institutions.
I cannot undertake in the compa^ -
message to make special reference ^
state iuvtitut ons. I have only dene ^
cases where I have thought such ry' “
desirable. In tho reports made by
eral heads will be found an account,'1 • .
transactions and an estimate ol *
wants, while in the table which will o- •
pemied to this communication will w' VjjJ
au account of the amount of niouo) *
been expended for the maintenance oi
a.id for what purpose expended.
Money Received und Paid Iat°
ury.
Received and paid over to the state l
urer Iuiuls as follows:
Drafts from federal government in
na.i of soldiers and sailors' home •
r iv** per e<jiit of uet proceeds of ba;o»0i ... .*
puDnc iar.tls in Nebraska.
totiscunee money..
Money fcturned from sale of worlu* ^
lair furniture.
Ollice fees. ....».»••■
etf
Total.
Couolua on.
In relinquishing an ofSce which '
tne in n manner highly coinplimeu1*^
"i-h the consciousness of having ‘
he of service to the people ot the
have so frequently honored me. ^
1 have succeeded they must dec’, d*?. ^ ,
carry with ine pleasant recollect
fcinuly relations which have oxU*tej-i
myself and those with whom 1 ^ .
dated or had to deal with m uU
v. ay.
Onv. lidcouib’s ^
Following is the message 01
coning governor delivered
branches of the legislature: ^
Fellow Citizens of the I '* I
m nt of the Kturo of Nebny**'1 • .
been called by my fellow citur* ’ ;
bra.'ka to serve them as {‘ ?«
state. In your presence I have 3
the prescribed oath of ollice, auu. ^
to^iint-honured custom, I will tj_*. *r
you briefly before onteriiK s
the dischaiga of the important uu
Cilice. . ,,/ji
I am indeed deeply impress^ •