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About The Red Cloud chief. (Red Cloud, Webster Co., Neb.) 1873-1923 | View Entire Issue (Jan. 15, 1909)
A; ! W V SHELDON'S FAREWELL MESSAGE Advice Ho Has to Offer to New Lawmakers Regarding Many Matters of State Wide Interest. Governor Sheldon's farewell message road to the legislature was u lengthy doc ument, covering many subjects of Btntc policy nnd legislation. Chief among the topics touched on which will attract more thnn ordinary attention aro his recom mendations relating to taxation, tho re vision of the statu primary law nnd to liquor legislation. Tho portions of his tntssago on these topics nro quoted here with. Othor recommendations nnd com ments hu makes are ns follow h. That tho Bovornor ho given discretion to refuse to revlow nppllcatlons for par don or commutation of sentence That nn Indeterminate sentence law he passed It y tho legislature and a hoard of pardons ho established by mi amendment to the constitution. That a jrtant be established nt tho pen itentiary to manufacture godoa used by tho various stnto Institutions. That tho stato Institutions uro In Rood condition nnd Kroat improvements havo been mado during the last few years. Thnt tho state carry Us own Insurance whrrcvor suitable flro protection has been ptoylded. Commending the National Ouanl ns de serving of Uie most loyal support by tho citizens of the stnto. Deploring tliat there arc not hotter mil It In compatrtcs In Lincoln and Omaha and pointing out lack of means Is tho cause ef inefficiency. Chat the stato build armories In thn3o cities which arc maintaining militia com panies. That ofllccrs of mllltla eompnnlcs b appointed by the governor after a com rrtltlvo examination. Culling attention to the fact ho has ap pointed u commission on tho conservation of natural resources, to servo without pay and to report U tho governor. Thnt tho legislature make provision so that Nohrruda can he represented ut the '.Alaska-Yukon exposition, i That tho Btuto fair grounds bo equipped 'ns speedily as posslblo with permanent ifcutldlng. I Commending tho National Corn exposi tion as a credit to tho commonwealth and (praising tho Nebraska exhibits. I lluportlng that' the silver service donat ed by tho stato to the battleship Nebras jlca had boon proscutcd nt nSn Francisco Juno 8. ltecomtnondlng the legislature nppro prlato J 1 5,000 to apply on tho cost of n 'monument to Abraham Lincoln on tho cnpltol grounds. Calling attention to tho necessity of re pairing nnd Improving tome portions of tho capital, mora particularly tho base ment. Concurring In the recommendation of tho stato veterinarian that a live stock sanitary commission ho established. Kecomtnendlng on appropriation suffi cient U cnabla tho stato authorities to mnlntnln a live stock quarantine where needed. Favoring on appropriation to cnablo tho experiment station to mako Investiga tions for Uto euro nnd prevention of hog cholera. Favoring, means bo provided for tho es tablishment of & bacteriological laboia tccy. Public Education. Recommending liberal appropriations for tho training of tenchem In tho state university and normal schools. Favoring on appropriation of at least $20,000 to further junior normal work. Favoring nn appropriation to nsslnt weak school districts. Dlroctlng attention to the fact that the .Increased valuation of assessment proper ty will care for tho normal growth of the stato university and provldo means for .Increasing tho salaries of somo profes sors. Favoring an Increase In the slzo of tho university campus so that nn nthlotlo 'field and a place for cadets to drill can ho provided. Favoring appropriation for agricultural experiment wark. The establishment of additional experi ment stations, ono to ho In tho sand hills district, n not Ivor In tho extreme westorn purt of tho state and another In tho Irri tated section. That In grazing counties the county hoard or tho pcoplo might rcqulro that crop land bo fenced Instead of grazing lands. Reduction In State Debt. Thero was a greater reduction In tho stato dobt during tho last blonnlum than ever boforc. On November SO, 190G, thero wero warrants outstanding against the .general fund amounting to $1,910,071.13, On Nevembor 30, 1908, this had been re duced to $7GS,G30.72. Tha reduction In 1907 amounted to $531,C06.G9, and In 1908 tho reduction was 3616,433.90, making n total reduction of $1,148,010,59. Tho 1-mlll levy, provided by law to re duce tho debt, produced during the blcn nlum, KX6.123.85. Thoreforo, tho levy which was made for the general fund pro duced $511,918.74 moro than was noccs enry for tho General expenses of tho stato government, nnd that amount was ap plied on tho payment of tho debt. Tho levy for gcnorul purposes during tho blon nlum was S mills, tho samo as In provious years. Calling attention to tho report of tho commissioner of public lands and huh eng.i to tho effoct tho permanent school fund should to rclmburcd J525.0S7.5O nnr showing Wioro Is In all about $8,290,000 of trust funds In tho permanent school fund. Recommending a change In tho law for tho semiring of public funJs, so that first mortgnges on real estate or other securi ties of equal valuo may be used as so curlty. New Savlnns Dank Law. Calling attention to tho need In this stato for a law that will encourngo the establishment f private savings hanks. Tho conditions nre such In most of tho emnllor towns of tho utate that n savings bank of Itsotf wll not pay, nnd conse quently none nro established. Two plans are suggested: Klther tho enactment of mutual savings banks with tho prlvllega of having braohes In various parts of the stale, or a law authorizing and provid ing far the establishment In commercial hanks of a savings department, but re quiring tUo business to bo kept separate and tllsUoot ft Tlt legislation bo enacted pffovldlng for publicity of county funds nnd the In terest paid thereon. Taxation. Tho state board of equalization under this administration has endeavored, so far ns It wns possible, to muko tho nsses ments of property uniform, so that each class of property should hear Its Just ptoportlon of tho burdens of taxation. To thlB end, the Union Pacific railroad property, In 1907, was Increased 25 per cent. Increases wero mado on other rail road property. Altogether tho assessed value of railroad property In 1907 and It-OS was luoretwud by the board, $G,6j1, 111. Any one who has given the question of tnllrond assessment much consideration, and lias famlllat Izcd himself with tho fuels, must realizo that tho railroad com tpanles nre, comparatively spoaklng, tint equitably ussossed. Somo f tho roads whose earnings nro small ate probably assessed at a higher valuo than soma of the other and greater railroads whoso earnings nro much larger. However, these Inequalities must necessarily continue to exist until tho railroad companies fall out with each other. At present thero Is an nppnrent disposition among tho railroad companies to stand togother nnd not glvo Information concerning nnothcr company that would bo helpful to thu board of equalization. In 1907 tho lands of this ntntc were ns sesed tit approximately $116,000,000, an Increase of($5.",700,000. Thin Increaso wns brought about from tho fact that lands hod not been nsscsod slnco tho year 1901, and bceauso nlnco that time thero has been a great Incrcnse In tho valuo of lands throughout tho stale. Difference In Valuation. When the nsEcssmcnt of lands wns re turned to tho stato hoard nf equalization, this year, It was apparent that county assessors had not used tho samo measure of vuluo. The hoard endeavored to cor n.Tt thnt condition nnd perform its duty as tho law requires. It Is the duty of tho board of equaliza tion to equalize all classes of property so that the burden of taxation may bo equally shared. Tho first essential In a Just system of taxation is to provldu menus for a uni form assessment. No class of tax payers will complain of their assessment If tho property Is assessed uniformity through out tho state. Tho question of taxation Is not nn easy one. Rut anyone fnmlliar with tho his tory of tha assessment of property of this stato during tho last ten years knows that tho property nt tho present tlmo Is by far more uniformly assessed than It was under tho old revenuo net. It is true that It Is difficult for the board of equalization to do justice In nil Instances, because no ono can havo knowledge of tho nctual valuo of all tho property In all parts of the state. 'Tho board of equalization Is composed of officers elected by tho pcoplo of tho state. There need bo no f.cnr thnt such a board will deliberately nnd intentolnnlly do an lnjustlco to the taxpayers In any portion of the state. Powers of State Doard. Tho board should not bo deprived of tho right to lower any class of property or all classes of property returned for a county. Neither should tho board be do prlved of tho right to rvfso all tho prop erty or any class of property of a county when, compared with other counties, such proporty has been under-valued. "When tho ravenuo law was first en acted thnt board could rnlse or lower all of tho proporty within n county, hut It did not havo tho right to ralso or lower any particular class. Experience demon strated that It was necessary to changa the law, and experience hns nlso demon strated that tho change was u wise ono. Tho Uw In this respect should bo left alone. Thero Is no necessity for any change In tho law In this particular. So far as tho assessment of land Is concerned, It Is a matter of common knowledge that tho per cent of Increaso In the assessment of land values In 190S, with the exception of somo parts of tho sand hills district, Increased from tho east to tho west. It Is also a matter of common knowlcdgo that tho lands In tho eastern part nro assessed nt moro nearly their actual valuo than they nro In tho western part of tho state. Thero should bo no complaint thnt such Is the caso because the people In tho western part of tho stato uro still In that period of de velopment when mnny sacrifices must necessarily bo made, n good many of which aro for tho welfare of tho whole stato. Assessment of Railroads. So far aa tho lands nnd tho railroads nro concerned, I am firmly of tho opinion that tho railroads, with tho exception of tho Union Pacific Railroad company, nro assessed us high In proportion to their actual valuo ns aro tho farm lands of this state. I bellevo tho assessment of tho Union Pacific Railroad company should be still further Increased, In Justice to tho other taxpayers of this stato, and havo so maintained while nctlng ns a member of tho asHcssment board. So far ns tho election of assessors by precinct Is concerned, thnt Is a different matter, and to thnt I havo no objection if you deem It wlso to muko tho change If any amendments to tho revenuo law nro made, tho object should bo1 to secure, If possible, a moro Just and cqultnblo sys tem of tnxntlon. A glanco at tho grand assessment rolls of this stato will convince anyone thnt It Is more noccsaary to Uovlso ways and menus whereby tho owners of personal property may pay moro nearly tholr pro portion of thu taxes than to make nmend mentH which will restrict nnd tlo tho hands of the board of equalization. In 1900 tho pcrsonnl property of this state, othor than railroad and prlvuto car servlco, was $75,053,000; in 1907, $83,180, 000, nnd In 1908, $82,593,000. Anyone who is famillur with tho condi tions in this stnto knows that tho actual valuo of personul property In 1908 was greater than It ws In 1907, yet tho grand assessment rolls shows a decrease of $592,000. Tho holders or tho Invisible personal property evidently havo discovered vari ous wuys of concealing tholr property. When tho new revenue act was passed In 1C03, and first put Into force, thero watf n great Increase In the nssessmont ol personal property. It Is well worth youi while and nttentlon to find out whal manner and methods tha personal prop erty owners uro employing to conceal their property from assessment, and to I nmend the taw, If need bo, so that such action can bo prevented. Record of Legislation of 1907. I nm pleased to Inform you the railway commission estimates that shippers and imssengers of this state have been saved $6,000,000 as a result of legislation passed by tho last legislature, reducing passon gor fares to 2 cents a mile; express rates' 23 por cent; and freight rates, on grain, llvo stock, fruit, lumber and coal, nnd other commodities In cm load lots, 15 vc cent. 12xpc"lenec has demonstrated that tha terminal taxation law which was passed by tho last legislature has provided il more equltahlo system of taxation, nnd on tho whole Iiuh been bonellclnl to the tax payers residing In the cities and villages. The last legislature nlso passed an net to control lobbying nnd to prevent corrupt practices affecting legislation; ubollshuJ tho free pass evil by enacting un nntl pa3 law; enacted u stnto-wldo primary Inw, requiring pollllc.il partleH to nomln nto their candidates by direct voto or tho people, nnd gnvo the railway commission power to put nn end to rebates nnd dis criminations In transportation, to mnko and to tlx rnteii, nnd to control them properly In nil particulars. Telephone telegraph, oxpiess nnd sheet tnllway companies were nlso placed under the control of tho inllwny commission. That leglrlaturo passed a puro food law nnd un employs' liability net. It enacted lawn providing for neglected chili drcn; provided for fiee high school privil eges for normal training In high schools' and nsststnnco for weak school districts; prohibited pooling by hrhlgo contractors, nnd provided a way to remove officers fof willful neglect of duty and falluro to en force laws. Primary law. The primary law should not bo repealed but In somo particulars should ho amend ed. Provisions should bo made for a ro tated ballot. Tho preclnct-commlttcemcti ehpuld bo selected by the voters nt tho primaries Instead of being nppolnted bjf the county candidates, ns now provided. There, should bo n different provision than that now continued In tho law re gaidlng platform conventions. Now, each county Is entiled to one delegate. This ! not representative. Another objection H that the platform convention Is not held until after the primaries. A party plat form should he promulgated beroro tho candidates nro nominated. Provisions should be mn.lc so that the platform con vention shall be held before tho primaries or tho matter of platform-making left to tho candidates nominated by tho respec tive pnrtlcs. Stcrllxstlon of Delinquents. Those dependent upon tho stato havo been Increasing' year by year, nnd moro particularly tho Insane nnd convicts. Thin Is a matter for exceedingly serious con sideration. Society Is Justified In ndoptlng such policies, nnd In carrying them out ngalnst Individuals, ns will In the long run tend to help elevate and perpetuato tho hu man race. Careless and lll-ndvlscd mar riages have had n great deal to do In In creasing the dependent classes nnd In producing untold misery. I thercforo recommend for your earnest consideration a change In our marriage laws so thu It will be Impossible for nny man or woman to marry until n ccrtlllcato from a physi cian licensed to pruetlco In this stnto has been presented, containing a statement that their health Is good and that they aro capable of producing healthy oiT uprlng. Those who ate a burden upon society should not be permitted to repio duco thomselves. In order to prevent the confirmed crim inal and the Incurable Insane from pro ducing offspring I suggest thnt you glvo careful consideration to tho necessity of passing a. law providing for tho stoilllia. tlon of that class of people. Regulation of Liquor Traffic. In my opinion tho tlmo has come foe advanced legislation to better rcgulato nnd control tho liquor traffic. At tho pres ent tlmo thero Is no political party which publicly will "stand pat" on tho Blocumb law. Tho demands of tho hou,r call for1 legislation to control and regulato this, traffic in accordance with the present conditions nnd needs of tho stnto. This riuestlon should not be permitted to drag along until legislation Is enacted that will satisfy only the tho extremists. In thnt event tho legislation will probably; bo that which a, minority rather than q majority approve. Experience In tho cn rorcumunt or tho liquor laws demon strates that It Is difficult to enforcq these laws In any community whom pub. llu sentiment Is ngalnst such action. Tho saloon ns It now exists Is lndc fenslble. It breaks our laws, corrupts our politics, degrades our muu and fills out prisons nnd nBylums. This question must bo met In a prnctl. cal way. After careful consideration J havo come to the conclusion that tho pro. per thing to do nt this tlmo In to pnsa a utata-wldo prohibition act, making pro. vision so that any municipality may bus. pend such an net by a throo-flfths voto, and In such Instances to havo liquor dis pensed as may bo provided by law. Thlt will put tho burden upon those who dc slro of mako a profit out of tho saloon business, rather than upon tho pcoplo ol tho stato who dcslro tho saloons abo. Ishcd. I therefore recommend that yoi) pass nuch an act and that you also sub. mlt to tho pcoplo of this state a' coristh tutlonal amendment embodying audi pro. visions. The Anti-Treat Law. "Tn""lliQ early part-of my administration I wns requested by numerous petitions to enforce tho nntl-trent law. To such 1 replied that I stood ready to do all In my power to enforce thnt law, hut that noth lng could bo done unless those who had knowledgo of its violation would them selves tuko tho Initiative In securing th evidence, presenting It to the prosecuting attorney and standing behind tho com plaints. This particular section of the Slocumt law has become obsoloto nnd Is n vlead totter. If It could bo enforced it would be ono of tho best posslblo measures to prevent lntompc.anco that could bo pro posed. Therefore, I recommend that you amend this particular section, known ns Hcctlon 31 of the Compiled Htatutos, so that th nuthorltlos who grant tho saloon license will bo compelled to revoko a license whonovcr any person dinks liquor In a saloon that ho lias not himself paid for, SHALLENBERGEiTSMST MESSAGE Urges Passage of Dank Guarantco Law and Makes Other Rccom mendations'and Suggestions. Follov.MtiK Is tlio nrlnelrml Rtibjcrtn touched upon by Governor Shnllcnber gor In ltlH ilrst mess,tiiit) to tho Nebras ka legislature: To the senate and house of lepresentn llves of the tlili ty-llrst vesslou nf tho Ne braska leglslutlou: 1 congiatulato you upon being called to serve In jour legis lative capacity nt a tlmo when the statu Is enjoying general ptusperlly. Nature has been kind nnd her jleld bountiful. Our people nte Iniluitrlom nnd the dn mnud and prices for their products satis factory. Our population Is not dense, probably less than one nnd one-half mil lions of pcoplo dwell wtlhln our holders. A study of tho tecntds of our buieau of Mat Nt leu will show how marvelous have been tho achievements of these later jinri So tlch our roll, so mntchless our climate, so wonderful the Industry of our people that hero upon Nebraska soil, American civilization In Un hlnhest devel opment piles up each cur a larger sur plus of useful products than a like num ber of people can produce upon nny other spot on eaith. With n clearness of vision and under standing ut" to tho put pores and possibili ties of legist ttlve etinctmunt, n steadfast nnd sueeeirful people will not expect of you lmpnrslbli things or unreasonable laws. Having wrung year lifter year, great riches from u gjneious soil, they now know that they can compel prosper ity to abide with them always. They will how-over, expect of tho party, whose ineniberH cuntrol this senate nnd the hiiuse. tho Kpecllle IcitUlulloit pledged III the platfoim upon which you woio elected. Ciovcilinr Sheldon hns detailed to you the result of hli administration of stntr nffulrH, and you have listened to his tee omrnondntloiiM. 1 uigo that you Rive i-fiiuvKt nnd careful consideration to nil that he has said. I tshnll briefly call nur nttentlon to legislation, the pmspeet nnd hopo of which. In my opinion, hns brought about this change In the conliol of tho execu tive nnd legislative departments of stnle government. It Is Unit to lie noted that nn new or radical legislation Is asked for. Uery suggestion Is but to amend, cor rect, or Improve some existing law. As n general rule, wo already have too inn ii v laws Incumbering our stntuto books. Many are goo.l, some Imperfect, n few bad. The good Miould bo let alone, tho Impel fectlons cured, the bad repealed. What Is needed, in my Judgment, Is nn honest and fearless enforcement of tho laws that we now have, rather than a censtant cry for new laws, nnd new lawt es nn excuse for Inaction nnd delay. Tho matters to which I wIhIi to call your especial nttentlon nre not numerous, but I bellevo them to ho Important. I shall present them to you under sepa rata heads. 6unneUn ns to Improvements In our Danklna Law. Andrew Cumcgln hits cold, "America i...u ii, u.,irgi iiMiiklin; svstcm In the world." I scarcely think tho facts war rant such n rtntcrncnt. but will venluro tho opinion that we havo not tho bent system that It Is pofslble for us to obtain nnd nothing hut the best should bo good enough for tho pcoplo of Nebraska. Our present law Is very much In advance In nil thnt pertains to snfn nnd proper bank ing to the law which proceeded It. No one will venture) to maintain that tho one now In force, is perfect, therefore, wo are warranted In asking for still further Improvement. Tho primary purpose for tho establishment of banks so far ns tho public Is concerned, Is first that the pco plo chnll havo a safo plnco to deposit their money, nnd second that those who need them may conveniently obtain fund upon proper security nfter tho money shall have been gathered together by the banking corporation. The Ideal Hystem of bnnklng will gu.ir nnteo to depositors tho absolute certain ty of the roturn of every dollar deposit ed, nnd this will Insure the greatest pos sible volume nf lnnnnhlti funds In hanks for tho needs of business. Tho state and nation should boo to it that ovory safe guard shall bo provided for tho security of tho depositor since they permit nnd iiuthorlzo tho receiving of deposits under tho sanction of u charter grunted by tho state. Prom tlmo to tlmo, these guaranties havo been Increased until losses to de positors are raro Indeed, Tho report of tho comptroller of tho currency for 1908 shows thnt a tax of one twenty-sixth of ono per cent luvlcd upon tho deposits In nntlonnl hanks during tho forty-tlvo yenrs that that hystom has. been In existence would havo rnlsed n sufficient sum ho that no person, who had trusted his money to a national hank, would havo lost a cent, A study of the flgtiien of our own stato bnnklng department ehnws oven a more satisfactory condition. Only during tho Inst eight yeni s, has tho law provided for a complete report from receivers of failed banks. During this period a tax of less thnn one-thlrtleth of ono per cent lovlcd upon tho deposits In 'our stato banks would havo raised a sum sufficient to hnvo Insured every depositor against any potrslblo loss. With theso facts before us, I do not hcsltata to say that It Is a reflection upon our American civilization nnd bus! ness methods to longer fall to provldo nn Insuranco guaranty fund nnd bnnklng law, which will mako ovory dollar do posited In a Nebraska bank absolutely suro or being returned to Its lawful owner upon domnnd. Ccrtniu deposits nro now secured In stato and national banks by safo guards In addition to tho guar anties which tho law exacts nf tho bank or to protect his Individual depositor. The county, tho slate and tha nation hav lng found by cxperlonco thnt tho secur ities which tho law provides for tho or dinary depositor uro ut times ImiuiTlclcnt und thoreforo required thnt tho bankj shull at their own cxpenso deposit bom's as additional security to protect thci.i agalnat any possibility of loss. I bellevo that tho desired security can ba obtained by levying a light tax upon tho capital stock of each hank transacting business under our laws, thus providing a guaranty fund to pay promptly nny posslblo loss to a depositor by roason of tho failure of a state bank. Tho amount of such tax to be a certain per cent of the average deposits ns shown by tho re ports of the dopiutment of banking nnd payment to be mado nt stated periods and for a fixed amount. Our state department of bnnklng hns n complete recotd for tho past eight years showing tho result of receiverships of In sohent state luiuktt. Thin lecnrd shows that slnco 1900 a lotnl deposit of $515, 201.21 bus been placed In Jeopardy by reason of tho fnlltito of state banks, Prom the nssets of these Insolvent Institutions depositors claims have been liquidated until tho Iml.mco unpaid for tho etitlro period of eight yeais Is $198,235.2.1 or nn nveiago annual loss of about $20,000.00 to depositors. C'ledltablo ns this showing Is, 1 feel quite certain thnt with a number of Impiovcments which can ho made in our present law, the pcreontugo of loss ran still bo materially reduced. Tho minimum capital tequhd for the Incor poration of n stale bank should ho In creased to ut least $15,000.00. Hank ex aminations should bo mudo twlro a year Instead of otiee un now required. Kx umliierH should bo nsHlgnod to a certain territory nnd thus eventually would lm Lomu familiar with conditions nnd secur ities In that locality and would acquire the nieefsnry knowlcdgo ns to the worth nf tho bills receivable of tho banks which thev would examine, which Is the essen tial thing In determining thu solvency of nny banking corporation. Under n guaranty plan which would mnko tho hanks of the statu sustain the lapses of tho entire system, thu bankers should bo given a sharo In tho control of the department. Tho present banking board, which Is composed of three officers elected ror an entirely different purpose, should be nholMu'd und n non-partisan loan! established to he composed of three meniherH nppolnted by tho governor each of Its members to have had ut least tlvu years' practical experience In banking nnd it least two of them to bo nctlvelv en-1 gaged In that business ut tho tlmo of their appointment. A bank commissioner should ho appointed by tho governor with tho approval of tho banking board, who should havo had un cxperlonco In tho banking huducsn equivalent to that re- (lulled of u member of thu board, und he should rolcct thu necerisary number of examiners with the upptovnl of thu hoard er control. The banking board should sit In i.esslon nt Lincoln ut stated periods and bo paid ror the nctual time In ses sion. ' They should havo romplcto con-ti-ol ol tho Issuance or charters and the general administration or tho bnnklng lnws. It has been urged by critics or tho guaranty or deposits plan that It would lead to tho establishment or too mnny banks. This would bo a serious objec tion lr such wero thu result. It would greatly strengthen our banking system If tho bnnklng board wero empowered to tx ciclso a proper censorship over tho Issu ance of bank charters. The possibilities or profit to bo rnndo in taking other people's money on deposit, loaning It to tho public nnu '.eeplng tho Interest thctcon Is so nlurlnir thnt nt tlineiutho number of banks Increaso moro rapidly than thu needs or buslnes require with consequent overlnnnlng, hazardous rlsks, extrnvnganco In buildings and ex penses with thu result that In lean years failures occur nnd Innocent pcoplo suf ror. Tho ovcrlssiiuncc or charters can be In a great meunurc overcome by Increased rcqultcments ns to tho amount or capital stock necessary to bo paid In by tho stock holders before a charter shall Is rue. The amount required in each In rtanco should bear a proper proportion to tho population or the town or city in which the hunk Is to bo established. An nn example, showing tho manner In which requirements us to capital affect the nombcr or bank chnrtcrs Issued, 3,912 national banks havo been organized nlnco 1900 when tho requirements of cnpltal stock wns reduced to $2.1,000.00 ns tho minimum. This Is 3S2 moro hanks than the entlro number In existence, when tho law was changed In thnt respect. The ro duetlon or the minimum capital stock re quirement to $25,000.00 hns doubled tho number or nntlonnl hanks In elglut years. A substantial Incrcnse In tho amount re quired us n minimum capital ror tho es tablishment or stato hanks would havo n 8alutuury effect In keeping tho number of bnnkH within n satisfactory limit nnd nlso provldo grcnter security to tho de positors. As to thn amount of assessment to be levied In order to provldo an ndequnto rund ror tho prompt payment or deposit ors or Insolvent hanks, I would suggest that one-fourth of ono per cent ho lovlcd upon tho deposits us shown nt tho last stittoment published prior to thn com mencement or tho operation or tho Inw, nnd this assessment to bo rollnwed with nddltlonnl levies In llko nrnounl nt periods or six, twelve, and eighteen months thercarter. AHer tho accumulation or n guaranty fund eqnnl to ono per cent of tho average deposltH In tho guaranteed banks, nil annual tax or one-tenth or ono per cent should bo levied, because It Is necessary under a proper system or Insur anco thnt tho prosperous yenrs should pllo up a surplus rund to provldo ror tho luevltahlo demands or less fortunato times. As un nddltlonnl security against any posslblo emergency, such ns extra ordlnnry -demands upon tho fund tho hoard should bo empowered to lovy an assessment of not to exceed two -or cent of the average deposits In any ono year. Whllo this assessment might never lio levied, tho power to use It would have n sustaining effect In times or possible panics. Such provisions would result In accumulating In clghteon months with tho averngo or deposits remaining In state banks ns nt present n guaranty rund or 1642,351.00. This would bo $127,097.00 moro than tho entlro amount or depooslts Involved In hank fullurcs in this statu In tho Inst nine years. It Is thrco timet tin umouut that would havo been neces sary to havo paid upon demand nil tho inonoy duo depositors in failed banks dur ing tho years with the heaviest failures of any In tho past decade. It Is seven times as much as would have been re quired to pay Immediately all of tho do posits tied up in Htajo banks during any ono of the last seven years. With the additional nmount that would bo contri buted to ouch a guaranty fund during the years when no failures would occur nrjd added to this tho power to ralso In any ono year by extraordinary assessment six times ns much ns has been placed In Jeopnrdy during tho worst year thnt wo havo experienced slnco tho present law wn.i established. It Is hiy Judgment that such a system would bo a rock of rcfugo for tho banks nnd for thn pcoplo In tho fiercest financial storms that may come. I deslro ut this tlmo to congratulate and commend thn management of our pren fnt banking department for tho splendid results It haw secured under the presont law. II Is tho showing or exceedingly small losses sustained under our present managamont und system which gives ua confidence) to bellevo that with Improve ments In our laws ns to capitalization, management nnd control a still better showing ran bo accomplished. Tho pro posed gunmnty fund under such a sys tem ns hns been suggested should bo do posited with tho slate banks under regu lations similar to our present iitato de pository law or with such additional se curity as tho legislature may require. Tho proposed law should provide that na tional bunks nmy nvall themselves of tha advantages und protection of the guni uuty fund under suitable provisions und satisfactory showing ns to tho condition or such banks to the banking board. Tho hanking hoard should bo empow ered to fix tho into of Interest to ho paid dcposltoiH by banking corporations operating under tho guaranty of deposits law, or if this ho thought too great a power to confer upon thorn, tho rato should bo fixed In thu ctuttlto by tho legislature. Revenue Law, Our present revenuo law shoul 1 ho emended In ko far nt It necessary to ro- storo to tho people the tight to olect tho precinct nssenrora und to limit in part at least the arbitrary powers which tho prevent law gives to tho stato hoard of equalization und assessment, so thnt tho people shall havo restored to them somo volro In detei mining tho amount of tnxeto they shall ho compelled to pay to support tho Htutn go eminent. It nppoorn to mo too great a gift of power to glvo to tho stdto and comity boards tho right to determine tho amounti of tho lovy which shall bo laid upon tho property of thn citizen nod at tho sumo tlmu empower flic stno board to determine! through Un mandates to thn county assesors nnd hln deputies tho valuation thnt shall bo placed upon the propeity or tho tax pay ers. When wo consider that tho niembcrn or this nil powerful bonrd of assessment nctlng In their olTlclal capacity oh tho heads of different stato deportments nro authorized to spend tho money taken from thu pockets or the pcoplo by tho force of this samo revenue law, tho dan ger lurking In this excess of power bo comes more nppnrent. It Is to bo re marked that vllffciont stnto departments havo commended tho present law becauso It provides much money ror their use. It Is generally tn hi) noted that those who pay out money which others must pay In, view tho magnitude or tho amount to bo expended with greater cquanmlty than those who havo to provldo It. Tho cost or our state government hns Increased enormously In recent years. I wish to Impress upon you thnt funds should bo provided to meet every legitimate demand of the government, our different otnto In stitutions nnd our school, but every dol lar that conies out of tho treasury must have been paid In by somo tax payor nnd thn great bulk of tho state's Incomo ' Is dug out or tho soil by tho unremitting toll or thoso who can III afford to pay for extruvnnganco or unnccesr.ary cx- pensc. The Primary Law. Our present prlmnry law(ls unsatisfac tory and unfair tn many of Its provisions. Tho expense to tho stnto In holding a stnto wldu prlmnry Is enormous, nnd un less thn election results In registering tho will or thn party mnjorlty or thoso voting nnd placing better candidates bo foro tho pcoplo than tho convention meth od, the benefits or tho law cannot ho said to warrant Its cost. Under tho presont law, the nccldentul alphabetical position or the candidates named upon tho ballot Is nt times moro potent In obtaining nom inations than merit or ability. Tho num ber or mimes required upon tho petition nf a candidate ror a stato office, Is gross ly Insufficient. Thn cost of elections both to tho candidates and thn stnto Is grcntly Increased. It Is doubtful If tho averngo elector will ever havo tho re quired ncqunlritnncn with tho long list of candidates for tho different offices upon the ballot In a statu wide primary to In suro Intelligent selection. I would sug gest to you a county primary to nomlnntn county officers and delegates to a stato convention. Tho stato convention to so lect two or moro name.'i for each ofllco to go upon tho primary ballot and to mako tho party platrorm, which ought to bo Issued In ndvunco or tho primary, In stead or subsequent to it, us at present. Administration or State Institutions. I would suggest that the constitution ho so amended that a non-partisan hoard or control could ho created to bo ap pointed by tho governor und havo con ferred upon It tho entlro management of our vnrloim stato Institutions. Tho stato Institutions should ho removed fiorn pol itics ns rnr as may ho done nnd merit alone should determine the right or nny person to servo tho stato In tho dif ferent departments mado subject to tho board of control. This board, in my opin ion, should consist or thrco members nnd havo at Its command tha stato account nnd n qualified purchasing or business agent, who should have n general knowl edgo ns to mnchlnery, material nnd con struction contracts and or nil matters of business coming before the board. This board of control should purchase tho supplies for nil tho stato Institutions by open competition nmong thoso desiring sell to tho state. Tho practice of main taining a cash rund nt tho various stato institutions should ho abolished nnd tho business or tho stnto so far as it nppllos to tho general conduct nnd administration of tho different stato Institutions should bo thoroughly systematized. It is my most confident belief that if you provldo satisfactory legisla tion relating to tho question to which 1 havo referred, you can go homo with tho certainty that you will meet a satisfied constituency. With a firm rcllnnco upon the wisdom and Judgment of this legisla ture and hopo that with your assistance, we may together In eomo fair mcasuro fulfill tho hopes and meet tho expecta tions of tho citizens of Nebraska, who havo trusted ua with power, I submit theso questions to you, gontlomon of th house and senate. k i t.l tSil m M 'f h i '.- , h !', A 2gggggggg3 ww j