Nebraska Newspapers

    GOVERNORS MESSAGE
NEBRASKA AFFAIRS EXHAUSTIVELY -
TIVELY REVIEWED.
flccommcndatlon.i for New LogIIatIon hi
S'aloai Dlrectlorn-A Plan for En-
hinong the Finances of the Stato-
Greater Economy Urged-linmedlato
fl&Icf for Drouth Snfferor Recoin-
mended-Other Mtter Tocched Upon.
Gov. Cronnse'g Last Wordt.
The bennia1 message of Governor Lorenzo
Crounse as read to the 8enate and the house
of representatives yesterday Ii as follows :
Gentlemen of the Senate and House of
Representatives : In obedience to a con-
stitutlonal requirement it becomes my
duty as well as It is my pleasure
to communicate for your consideration -
tion such information as 1 may possess conCerning -
Corning the affairs of the state , together
with such recommendations touching needed
le&islation as observation and experience
during my two years in the office of chief
executive have suggested.
With you for the time is lodged the duty of
making laws for the state , a duty which in-
volvcs no light responsibility. Beside omo
degree of familiarity with the methods of
legislation , It presupposes a thorough
knowledge of the state's condition and
needs. To furmsli such knowledge In great
part tim law requires all officers of the exoc-
titivo depurtment , and of all the public Institutions -
stitutions , to make a report of the condition
management and expenses of their several
oflices and institutions. These reports have
been made for the biennial period just closed
and will be placed before you. ! flioy have
been prepared with care and contain much
valuable information. I commend theni to
your careful study.
Relief for Drouth SutToror.
The period intervening between the meet-
log of the last legislature and your present
assembling has been one of general depression
throughout the country which has been especially -
pecially aggravateI with our people by the
partial failure of crops in the year 1S93 and
their total destruction in a large portion of
the stnte in the year just clo3ed. This
double misfortune has resulted in a condi-
tiori of distress in zilany localities which has
been followed by nuniorous and urgent appeals -
peals for help. inspired by the action taken
by the legislature of 1S91 for the benefit of
sufferers irorri the drouth of ISJO ! , frequent
demands have been uiado on ILIC during the
last six months to call an ixtra session of
tile legislature to tnko action iii the niatter.
otwithstaiiding the comfort it would lntvo
giveil n-lu to eCHI'e these iIliIortuilities by
turning the subject over to the legislature ,
I ( leCided iot to iiiako the call. To have
drne so would have been to niche the action -
tion of Nebraska exceptional aniong the
states similarly afflicted and would have
given the sbite an nnlesirnllo advertise-
meiit. : i also kzicv that , in the action taken
in 1S91. the state had reached its liniit of
indebtcdness under the constitution , anl
consinering the empty condition of the
treasury and the inability to appropriate
ail , I chose not to incur the large expense
wIiich would attend an extra session , but do-
terinined to leave to the several counties the
cai.c of their needy till the convening of the
regular session. Whilomy decision has b2en
11 disappointment to some of the more importunate -
portunate and less considerate , in the main it
has had pretty general approval , and the
several counties and localities where distress
exists have gone to works and by engaging
in worksofintornal improvcmont and by organized -
ganizod effort have furnished work and supplies -
plies for the needy.
In the meantime I have revisel and reformed -
formed the relief commission of 1St1 which
has been actively and earnestly at work
aseertiining the extent and location of tim
relief required and in soliciting and distributing -
uting aid. Considering the stringency of
the times tonatioiis both from within and
from without have beeit quite liberal. Espc-
chilly are the thanks of the state duo to the
state of Oregon , which through the chamber
of commerce of Portlaml , has already donated -
nated several car loids of graili anl prov
sions. and to the states of Illinois , Indiana
ltul Iowa , which are iiiaking generous ship-
nients. Thanks are also duo to the s3veral
railroads of the country , and especially those
whose lines extend into this state , for gen-
- p. > erously giving free transportation to all
donations for the relief of our citizens , the
aggregate cost of whieli at usual rates
would have been many thousands of dollars.
Tue sum of all donations. consisting
of flour , grain , food of various descriptions ,
coal aIl clothing. aniounts to something
like 1& carloads , fifty of which have been
coal. All of this and what is still to come ,
toetlier with what the several counties
and Iocalitio. have supplied , niust go
, . far tovnrds affcrling the relief required.
lVhat the legislature may choose to do or
find itself able to do i for you to determine.
That there are nud will be cases of distress
nuprevided for , and would be under the
most liberal provision for the care of all , is
In the nature of things. Modest aul spirited
PeOlle will subiit to want rather than beg
or eat the brt1tl of charity. On time othr
irnml there arc the imunmdcst. importunate and
- - undeserving who are ready to JfOtIt at the
expelice of the deserving. The history of
tIme distributioliof the aid give ! ! by the state
ill 1&fl shows that in 501110 instances well-to-
do le0Pl0. men rho had nioney in banks ,
simawelessly shared time bounty designed for
their unfortunate neighbor8. People of that
class have been most importunate for an cx-
tra sesSloIl of the legislature and a repetition
of the experience of 1891. Disappointed in
_ _ _ -this , as aprearS by letters and circulars
-which have found their way to ny table ,
-thor imavo unlertakento beratethe executive
and to solicit aid on their own account
rather than through the commission organized -
ized for that purpose.Vhilo some of these
circulars may have been inspired by good
motives , others hav not and all have
brou1it but little good and much discredit
to the state.
TIn Most Prcssng Mutter.
The first and most pressing subject do-
mandin your attention , therefore , will lie
the action that should be taken for the relief -
lief of sufferers by the late ( Irouth. With
the limit of indebtedness which under the
coustitution. is fixed at $100,600. already
reached by the action of the legislature of
:1b91 : in voting $100,000 in bonds for a like
purpose , and the general fund , carrying
some hundreds of.thousands of dollars , in
- meeting its 7 per cent unpaid vrrrants , you
are confronted with the question of right ,
as 'veil as of wisdom , in voting any state
.aid. To my mind the giving of donations
from the state treasury is of doubtful propriety -
priety and should only be done in extreme
or unavoidable occasions. A too ready and
frequent response by the state begets do-
endeiice , destroys manly pride and encourages -
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
, . couuty bends , if necessary , and donate or
. loati the money to their citizens who are in
iii'ed for such time and on such terms
_ as may seem best. Each county
feeling its own responsibility and
laying a concern for its own eoplo
cvill iiivo thorough investigation in all cases
and aistinguish real from pretended cases of
need. In this way relief can be brought to
the deserving for a quarter or less of the ox-
pensc that it would cost the state. This
-nlan would not only servo for the present ,
LUt would be applictible in other years
should there be a repetitionof toe txperience
of I&4. Furthermore the bonds issued tin-
.der such provision would furnish good investment -
vestment for the permanent school fund of
the state. If any risk were to be taken on
any of these bonds the state might as well
take it as to make donations outright from
. I further suggest that
_ _ _ its treasury. might of
as an emergency exists tIm powers county
commiSSlOiierS ot. boards of supervisors
might be temporarily enlarged so that
vaiTantS , under certain r'.strictioIiS , might
be lssued , fundabie later in the bonls rec-
ommondod.
The Stato's Financial Condition.
The financial condition'of the state 1 bd
and I trust you will not allow the iession to
end without having taken stops to menci lb
Front the reports of the treasurer and and-
Itor it will be seen that on the 1st day of December -
comber last there were outstanding warrants
drawn on the general fund to the amount of
$ ; 47,281.lS and on thefeeblo-ininded institute
fund for V3I,250.03 , making an aggregate of
6O8538.1l , with only t2S,503.67 in those
from which to pay theni. At the same
time there was in the treasury 4l7,3l3.6t of
Idle money belonging to the permanent
school fund. in other words , the state was
paying interest at the rate of 7 per cent per
annum on upwards of six hundred thousand
dollars and wai losing interest on over four
hundred thousand dollars. If under the law
of 1891 the permanent ichool fund could
have been invested iii these warrants as it
was Intended , much of this interest , instead
of going to warrant brokers , would be saved
for the benefit of theschools of the state. But
unfortunately the supreme court has decided
that law imioperative , as will ho referred to
in another part of this communication. This
load of high interest-bearing debt has been
incurred by appropriations made by more
recent legislatures , notably that of 1891 , in
excess of taxes that could ho levied and eel-
lected under our present revenue laws. The
assessors of the state vie with one another in
their offortsto reduce the valuationof prop-
erty. In this they are encouraged and supported -
ported by the natural disposition of one pro-
cinet or county to shift its burden of taxation -
tion on the others. As a result the proertv
of the state , which by the census 6f 19O i
estimated at $1 27it185,514 , is asessad at
about isoooooo , , or less than 15 per cent of
its value. Under the present limit of 5 titills
levy on the dollar for the general fund it is
hardly possible , with the observance of the
strictest econornyto raise on so low a valua-
Lion sufilcient money to meet the needs of
the state.
The remedy for this lies either in an increased -
creased valuation of the property of the
state or in extending the liiiiit of the levy.
10 extend the limit of the levy is simple and
an increased vauation can be effected in
different ways. One is by providing for the
assessment of property through state or district -
trict assessors , and thus removing the work
from local iniluomice. Another is by giving
greater power to state and county equalizing
boards. The state equalizing board , con-
Sistiug of the governor , treasurer and auditor -
itor , under the present law can make no
chanto iii the assessment roll as it conies to
theiii. In equalizing state taxation among
the several counties its lover is restricte(1
to varyimig the rate tinder the limit fixed as
applied to one county and another. its an-
thority should 1)0 enlarged so that it could
not only raise the valuation of any partidu-
mr county or counties , but increase tue as-
Sesstnoiit of all the property returned to any
extent not exceeding its true value.
In tiw auditor's report will be found a
stateiiient showing the excess of appropriations -
tions for several years , the percentage of delinquent -
linquent tax and other imiteresting and in-
siruetive information bearing on this sub-
ject.
Deposit ot State Funds.
The legislature of 1891 passed an act providing -
viding for the deposit of state and county
funds in banks. Time wisdom of such a law , as
tar as it concerns the money of the state , to
my mind , is doubtful. In ordinary or nor-
miii times its operation might be attended
ith little risk , but in times of financial
stringency and uncertainty , such as have
prevailed for the two years last past , it is
liable to be accompanied with much hazard ,
as experience has shown. The law imposes
on officers who are chosen with no special
reference to their lltnes3 for the task tim
duty of determining the solvency of the
proposed depositories and the financial ability -
ity of the obligors on the several bonds offered -
fered as security for deposits asked for.
The act does not even provide that the
sureties shall make oath as to their responsibility -
bility nor for any sworn statement of the
amount , character and value of the property -
erty owned by each. Notwithstanding this
the approving officers , consisting of the
governor , secretary of state and attorney-
general , following the practice of the courts
tiave , as a rule , donianded of all sureties an
oath showing their liability over and above
exemptions. Even this precaution has not
proved a Irotectioi ; for in one notable instance -
stance the required oath was taken glibly
Ittil unhesitatingly and a rotten bank which
had successfully deceived expert bank
examiners and hundreds of inuo-
cent depositors succeeded in putting upon
the state an almost worthless bond for a
large simm. Luckily in the case referred to ,
that of the Capital National bank , it will be
found , I believe , that no deposit was made
under the 1)011(1 and the state is not
time loser by the transaction. During
the past two years of financial
stringency the law was boon an invitation
to the banks of the state to apply for funds
which some of theni could get in no other
direction seemingly , and no less than fifty-
limo applications and accompanying bonds
have been received. Of these forty-seven
were approve1-enougli to many times absorb -
serb the conparatively little idle money in
the treasury side from the permanent
school fund , which the supreme court in the
case of the State vs. Bartley has decided
not subject to deposit under the law. This
list of depositories includes many banks of
undoubted standing , some of which were
solicited to apply in order to furnish the
treasurer avenues in which to safely put out
the state's imionoy.
Still another question arising under this
act is as to how long this approval of any
depository is to ho9. 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 hardl -
supposable thus the board could keep ti-ac
of such changes. Still , it is in behalf of the
hank with such failing security that the
strongest personal and political influence
would be brought to bear , and the treasurer
might yiod to such importunity without
prsonal responsibility or liability on his
part. If the law is to be continued it may
be well to consider whether it should not
provide for periodical examinations into the
sufficiency of the several bonds and a limitation -
tation be fixed to the life of them without
reapproval , and such other amendments as
will give additional security in depositing
the stato's money.
In this connection I may add that as a
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-
flee at the capital. The services have been
valuable , the price agreed upon reasonable ,
and I would recommend the payment of the
charges made therefore.
liiYeMtnieut of Permanent School Fund
To the state have been given the sixteenth
and thirty-sixth sections of land for the benefit -
efit of its public schools. The constitution
has fixed the mimimnum price at which these
lands can be sold at $7 per acre. The money
derived from the sale of these lands forms
a. pffmanent school fund , the interest
on which , together with the rents
from unsold lands furnishes a temporary
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 interest -
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 and registered
county bonds. No state bonds have been of-
bred during the last few years and ,
owing to the low rate of interest
and high premium commanded , and
in tim hope of being able to invest in county
bondswhich 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 cropsand othercauses ,
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 proposed issue it has'been
prompt to assure the county authorities that
the state would purchase them at us good or
bettor rate than obtainable elsewhere. In
some few instances county bonds have thus
been secured , but in other through private
I
- - - -
¶ . '
arrangements with agents , by the impos1tio
of terms which the board had no power to
comply with and by other methods not
necessary to recite , the offer of the state
to pay to the county direct such bettor price
has been dLrogarded 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 earning -
ing some interest I rould recommend
the enactment of a law directing the board
of educational lands and funds to invest all
moneys of that fund not otherwise invested ,
in United States bonds , with authority to
sell an'I convert them from time to time
into other lawful and better interest paying
securities when opportunities offer. Without -
out an act of the 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 by reference
to page 6&1 , fifteenth volumeof Nebraska ro-
ports.
In answer to questions submitted to the
house of representatives the supreme court
gave an opinion to be found on page 69 ,
volume 25 , Nebraska reports , holding that
state warrants issued in pursuance of an appropriation -
propriation made by the legislature and
secured by the levy.of a tax for its payment
are state securities in the meaning of the
constitution , which says that educational
funds may be invested in state securities.
Following this decision the legislature by a
law , found in the session laws of
1891 , chapter 48 , declared that 'when a
warrant of that description shall be presented -
sonted 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 the amount due on said warrant
from any funds in the state treasury belonging -
longing to the permanent school fund ,
and shall hold said warrant as an investment -
vestment of said permanent school fund.
Early in his term of office and oven before a
levy had been made for their payment and
they had become state securities , the present -
ent state treasurer had , for some reason , paid
a large number of warrants 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
had been made for their payment , the treasurer -
urer for some other reason declined to pay
any morowarrantsandturned them into the
permanent school fund , contending among
other things that he must first have the direction -
rection of the board of educational lands to
purchase warrants.
Court Sustahtmod thoTreasimrer.
: Iii order to compel him to comply with
the law the attorney-general , at the instance
of the board , instituted proceedings in the
supreme court. That tribunal sustained the
treasurer , holding that inasmuch as the
constitution had constituted time governor ,
secretary of state , treasurer , attornoy-gen-
oral and commissioner of lullic lands and
buildings a board for the investment
of the permanent school funds , it was not
competent for the legislature to empower the
treasurer alone without specific direction of
the board to ay warrants and turn them
into that fund. In answering the argument
of the attorney-general , who contended that
it was never intended that the board should
remain in continual session from January -
ary I to December 31 of each year
in order to pass upon warrants presented -
sented and to make orders for their
payment from the permanent school fund ,
Chief Justice Norval , who delivered the
opinion of the court answered this by saying -
ing : "The construction we have placed upon
the constitution will not have the effect outlined -
lined by the attorney general. It Is the duty
of the board charged with the management
and control of the , cliool funds to determine
when , and in what sum said funds shall be
invested , as well as what securities of the kinds
authorized , by the fundamental law , shall
be purchased , and the price that shall be
paid for the same. When the board has so
determined and ordered , it may by resolution -
tion , entered upon the records of its proceedings -
ings , authorize and direct the state treasurer
to pay out the money therefor. It may ,
prior to the purchase. examnino the particular
security offered for sale if deemed desirable
and expedient , but it is not indispensable
that it should do so. The board may direct
the treasurer or any other member of the
board to do that. "
With a view to meeting the direction of
the court , which seemed to pointout the way
in which the objection of the treasurer could
be overcome , the board was convened. when
I submitted the following resolutions , which
were unanimously adopted , namely :
The Governor's Resolutions.
Resolved , That the sum of $200,000 of
the permanent school fund of the state of
Nebraska , or so much thereof as may be
necessary , be and hereby is set apart from
which to pay outstanding warrants drawn
upon the general fund , which warrants are
registered and bearimig numbers from No.
13,292 to 16,000 inclusive , together with accrued -
crued interest , it being determined by this
board that said warrants are drawn
in pumuauce of an appropriatiomi made by
the legislature and secured by the levy of a
tax for their layznent , and therefore are
state securities , and the state treasurer is
instructed to at once notify the several parties -
ties in whose names said warrants are regis-
toredof hisreadiness and purpose to pay said
warrants so that the interest on the same shall
cease as provided in chapter 33 of the corn-
pileI statutes of Nebraska and when so paid
the warrants shall he held by the treasurer as
an investment of the permanent school fund
and shall be stamped and signed as provided
by law.
Resolved , Also , that the further sum of
$25)OOO of the permanent school fund of the
state , or so much thereof as shall be necessary -
sary , be and hereby is sot apart from which
to pay current , unregistered warrants
already drawn , as well as those which may
hereafter bo drawn , against the general
fund under appropriations made by the last
legislature , it being determined by this board
that such appropr.iatinns are secured by a
levyof atax fortheir paynientand the state
treasurer is hereby dircctoj to pay such
warrant3 as they may ho presented at the
state treasury and stamped , signed , and hold
the same as an investment of the permanent
school fund as provided by statute.
Resolved , Further , that the state treasurer -
urer , a member of this board , be and hereby
is empowered to act in its behalf in doLor-
mining questions as to the genuineness and
ownership of any and all warrants pro-
seated under the foregoing two resolutions ,
and when in doubt ho will refer the matter
to the chairman to be submitted to the
board for its decision.
The people of the state have the right at
all times to demand the practice of the
strictest economy in the appropriation and
expenditure of their money. Especially can
they insist on a rigid adherence to this rule
when they themselves are struggling under
an enforced observance of it in their in
dividual affairs. The greater portion of the
money which finds its way into the treasury
goes for the support of the several penal ,
reformatory , charitable and educational institutions -
stitutions of th state. On the way in which
these institutions are conducted , therefore ,
depends to a great extent the expenses of the
state. They need that attention and supervision -
vision without which extravagance , waste
and even peculation grow up. In my several
relations as appointing officer anl member
of the board of purchase and supplies I have
given much study to their managemeit , and
1 think 1 can safely say that most of these
institutions wore never moro ably and
economically conducted thai : they now are.
In fact , the limited appropriations for their
support made in lS9i have demanded the
exercise of more than the usual care and
economy. You may recall lily remarks to
the legislaturt two years ago whoa I said :
"Nebraskans , in the main , are a plain
people. With most of them life is a perpet-
nal struggle. Hard work , frugality ani
economy are their constant companions.
They indulge in little extravagance themselves -
selves , and they may reasonably expect
their representatives to govern themselves
in like manner. The tendency of the day m
toward extravagance and it nowhere manifests -
fests itself more than in the conduct of pub-
lie affairs. Extravagance begets extrava-
gauce. An unwarranted or too liberal
tppropriation of tpjayfor.rn the prc edput
for tomorrow , and I submit to you whether
your predecessors have not. always passed
the high water mark. Subh is my opinion ,
and In my judgment the aggregate of tsp-
propriations made by the last IegIlature
should be cut down fully three-qbarters of a
million dollars , notwithstanding the growth
of the state in the meantime. "
Nado Li BogIun1n.
Whether out of deference to my advice or
not the fact is that the sum of appropriations -
tions made by the legislature of 1803 was
2,2OS,94O.2a , as against 2,88(5,575.63 ( in 1891 ,
or $667,635.87 of the three-quarters of a.
million reduction recommended by me.
Current expenses for tim support of convicts -
victs in the penitentiary are fixed by a contract -
tract made by the legislature. The affairs
of the normal school and the university are
under the control of a board of education
and a board of regents roipectively. Hence
these institutions are omitted from the following -
lowing comparison :
During 1892 the remaining eleven institutions -
tions supported 1,564 inmates at a cost for
current expenses of V390,678 , or 248 per
capita' or .68 porcapita daily.
During 1893 they supported lS2 inmates
at an expense of 4ll,897 , or p226 per capita ,
or 62 cents per capita daily.
During 1894 they supported ii,042 inmates
at an expense of 393,327 , or $192.61 per
capita , or 52.7 cents per capita daily.
hus it is shown that during the years of
1898 and l894 these institutions sustained an
average number of 1,032 inmates at an -
pense of 8O5,224.
The institutions produced 48,7OO of this
amount in cash , farm and garden products ,
although the two years just closed have
been very unfavorable to agriculture. in
arranging for a wider and sharper coinpeti-
tion in bids for supplies , iii 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 soap and other ar-
tides of large consumption , by the largest
production of supplies for use of tim institutions -
tions and of products for sale from their
lands , and in other ways the expense of supporting -
porting these institutions hiss been greatly
reduced. What has contributed more than
anything else to their economical conduct
has been time requirement of iieriodical reports -
ports from each of theni.
Section 21 of article of the constitution
requires that tim olhicers of all institutions
of the state shall make a semi-annual report
to the governor , under oath , of the moneys
received 1111(1 disbursed. A compliance with
this wise requirement it seems ijad never
been insisted on , and except in time ease of
tim university , which is under time control of
neither the governor nor the board of public
lands and buildings , scarcely any reports of
the kind Vere supplied. I not only insisted
upon these reports being furnished , but
adonted for them such a form a would
present much information valuable in keeping -
ing watch over expenditures made. These
reports show not only the number of oflicers ,
emnployos , inmates , money used for both current -
rent and extraordinary expenses , what has
been produced , consumed and sold , but
what it has cost the state per capita during
the given period for board , for clothing , for
fuel and other items of expenditure. These
reports furnish the data from which to ascertain -
certain the relative cost of nmnintaining inmates -
mates and for comparing it with the cost of
other states , as well as for ascertaining the
relative expense for different periods. While
these reports , with a knowledge that they
are before the executive and open to public
inspection and criticism , have served as a
check to extravagance and a stimulus to
greater care on the part of heads of institutions -
tions , they will , I trust , serve as a valuable
guide to you in making appropriations.
I would call your attention to the need of
a revision of the laws relating to the establishment -
lishment and government of several of the
state institutions. Some were provided for
before the adoption of the constitution , of
1875 and were placed under the direction
and supervision of trustees chosen by the
legislature. Under the constitution which
makes the conmiissioner of public lands and
buildings , the secretary of state , the treas :
urer and attorney-general a board instrusteu
with the supervision and couitrol of all asylums -
lums amid other institutions except these for
educational purposes. seine confusion has
arisen and soLle conflict of authority relat-
tag to the appointment of oflicrs amid upon
other points which have been tim subject of
decision by the courts. In one institution
the tenure and duties of an officer are fixed ,
while in a similar one , and for no apparent
reason , these are left undefined. The whole
matter should be carefully con3idored and
the laws made clear and specific.
Governor 5houid Appoint All.
In time case of some of the institutions of
the state the governor appoints the superili-
tendents and other officers , while in others
this authority is given to the board of public
lands and buildings. This is wrong. The
governor should be charged 'with the appointment -
pointment in all these cases and he alone
should be responsible to the people for his
actions. The responsibility for ii bad appointment -
pointment should not be a divided one and
one not directly traceable or chargeable to
any one person. Considerations of a political -
cal or partisan character zitay ho opposed tea
a favorable acceptance of this rccouunenda-
Lion at this time , stiilsoundlegislation should
not be avoided for fear of the loss of some
partisan advantage. It is unfortunate that
the heads of some instiitutions , in cases where
to fitness experience has been added , should
become the sport of lolitical fortune , and
for good reasons only should tried and cx-
perienced officers be replaced.
Actions Brouulit by thmt , State.
Soon after my inauguration the Capital
National bank of Lincoln failed and its
affairs and assets , pursuant to the United
States statutes , were placed in the hands of
a receiver for settlement and liquidation.
State Treasurer John E. Hill , during both
his terms of office , had deposited large
amounts of state funds iii that bank. An iii-
vostigation by a legislative conimitteo disclosed - I
closed that ho had turned over to his sac-
cessor , State Treasurer Bartley , who 1usd
received them in lieu of money , certificr.tes
of deposit issued by such bank to time amount
of 2S,3i7.85 ; that these were thereupon
surrendered by Treasurer Bartley and the
amount thereof credited upon an account
with the bank opened by him us state treasurer -
urer , and that prior to and including January -
ary 21 , 1S93 , lie had checked or drawn out
portions of this amount , leaving to his credit
on account of the surrendered certificates
the sum of 23O,3d4.62. No part of this has
as yet been realized by the state from any
source , and for that amount ox-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 file
or authorize to be filed any claim in its behalf -
half with the receive ; and I did not do so.
I am informed that some claim in the premises -
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
the recovery of this deficit should be speedily
commenced upon the bond of ox-Treasurer
Hill , for his last term of office , and in conformity -
formity with my advice and directions to
the attorney-general as provided by law
such an action was commenced on the 30th
day of March , 1893 , in the district court for
Douglas county.
Irregularities In Institutions.
Other investigations instituted by the legislature -
islature disclosed various apparent delia-
quencies , mal feasances and embezzlements
on the part of persons connected-with state
institutions , espcial1y the asylum for the insane -
sane and the state penitentiary. In cease-
quence , presumably , of these disclosures , time
legislature by chapter 58 of the laws of 1S03
approprinte1 and placed under the direction
mmd control of the governor the sum of lO-
000 , to be used by him so far as deemed necessary -
essary in employing attorneys to prosecute
criminal cases and pay the expenses con-
nectcd 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 the state ;
or to prosecute civil actions or proceedings
against officers , persons or incorporatious
indebted to the state on account of moneys ,
frnids : - or effects belcnging theto , ej upon
- - -
1-I-- -
any official bond , contract or obligatlonfor
the safe keeping or disposal of such moneys ,
funds or effects , and a supplemomitary appropriation -
propriation of , O0O was nma(1o for the same
general purposes. Portions of these sums
have been expended in the proceedings bore-
matter mentioned , but a considerable part
thereof remains unexpended , applicable to
the same or similar proceedings.
Under this authority I employed ox-Judge
E. Wakeley of Omaha to assist theattornoy-
general in prosecuting the action referred to
upon the bond. Douglas county was so-
looted as the forum upon advice of coun-
sd for the state , who believed that its interests -
ests would be jeopardized by time 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 tue failure
of the Capital National bank had occurred ,
attended with much local excitement and
fooling. It was , however , determined by
the district and supreme courts that time
cause of action upon the boimd arose in Lan-
ancaster county , and that there only the
action could be properly brought.
Although the percentage of the insane In
Nebraska has not increased and is not greater
than the average in other states , yet the hib-
oral policy alOptcd by the legislature of
1891 , under which the state assumes the expense -
penso of earing for all the insane of the state
without immaking in turn any charge to the
counties or to the estate or relations of the
patient , has resulted in a large influx of
patients which is taxing the full capacity of
the three asylums. If this policy is to be
contimiued there is a demand for more ruoum.
This should not be met by a mimultiplication
of asylums. By alteration of and additions
I to the three asylums time state iiow limis
ample room cati be 1)rovidod to anticipate
the wants of a couple of decades and at a
small fraction of the expense attending the
establishment of a now cite. Double the
nuniber of patients can be taken in charge
by the samiio officers and amaintaimmed at a
'reduced per capita expense. Whethmem all ,
or which one orones , shmouldbe thus enlarged
is or ( .ii tf ) determine. and it would be
wise if your action were guided by some
committee attended by a comnpetentarehiiteet.
'who should first examine these different in-
stitutions.
These three hospitals , located at IIastimi ,
Lincoln amid Norfolk , under time superiu-
tendency of Drs. Johnston , hay amid Little
respectively , have boon ably iuiutmttged itimil 1
desire to testify to time hearty co.oporation
and sympathy of these gontlenmen nuiti time
stewards under theumi in mmmv efforts to reduce
time expenses of these institutions to the
nmiuuiiiutumn. A. refereimco to time talIo fur-
nmsiicd you will show that tIme ummnimel po
capita tax expense was remluced from 27iJ.-i )
in tlio year 1892 to $15.fl. in 1801 at Bust-
ings , from 29.72 to l0.O5 at Lincoln amid
from 2TO.34 to $23S.01 at Norfolk during
the corresponding period-all excellent
showings and about equally good considering -
ing the dilrerenco iii i1oI.ulaticii of each ,
which of course aftects the result.
The institution at Hastings bears the
name "the asylum for the incurable in-
sane. " To those who are taken there who
have reason enough to understand the significance -
nificanco of the application and to their
friends tile name stnmid as a terror and it
5110111(1 be changed to "time hioipitmtl for the
chronic insane. " Whether timeru should be
a separate hoipital for time chronic insane or
not is discussed in the reports of the several
superintendents and thmeirdiscussiomi is worth
your study. For reasons I cauuiot timimler-
take to set forUm it is uiiy opinion that the
classes referred to 5110111(1 ho distributed
among the several institutiomis.
Tramisportuttlon or PitIoiit.
In connection with time foregoing I ( lesiro
to make a recommendation in the interest of
both humanity amid ecomionmy. it is usual
for sheriffs to convey lunatics front their
respective counties to time hospital. The
common fear of a crazy person which possesses -
sossos people , generally leads these oflicers in
sortie cases which have becim brought to zumy
attention to bind their subjects with irons
and straps , both cruel amid unmiecessary , amid
tendimig to aggravate the mimitlady of the
patients. Timeir transporzttion 5110111(1 ( be by
a skilled and experiezmcmd attendant ( roam time
institution , and mmmoneyprovided for the pay-
mezit of the actual OXlCflSO immeurretl. This
would result in a saving of 50 pr ccitt Oi
more of the amount now paul.
JrrIzrntlon.
Time subject of irrigation is of such un-
portauiee US to demand special eomlsiIeratiorl
at this time. Time fact that nearly or c1tmito
half the lands within time state lie vest of the
line of humidity sulliciont to imisumi' an mmii-
broken succession of crops remiders irrigation -
tion necessary to lrotect time people against
disaster imi unusually dry years. 'rime pam--
tial failure froumi droutli in lS9)-9-93. and
the almost total failure of 1891Imas , awakenuxi
time people to the necessity of providing for
watering the growing crops by artificial
rneamms. i'iie soil of vesterim Nebraslawhere ,
to seine extent , vant now lrevail , is as
fertileas that of any portion of the tuuitemI
States , amid in years past imas yielded
abundant harvest in respomise to time erorts
of industrious settlers. ' 1iiis fact has fostered
anti-irrigation scntimcnt and retmtrle(1 work
lending to time establishr.ment of a system of
irrigation , but the imiore recent failures froixi
drouth have dissipated all false opposition -
tion and star.ed active operations
in several counties of the state. And
how while irrigation in Nebraska is iii its
infancy and necessarilyexperhruieimtul , it will
be well for the present legislature to give
the subject careful study , to time end that
wise legislation immay ho enacted providing
for the protection of individua1 in their
rights to time use of water for irrigation pur-
poe Time right to tle use of 's utr frommi
tim stroazims hhoultl be s safeguarded by
law as to prevezmt time very appearance of
nionopoly auimi to prechimilo all possibility of
erroneous rClllitioa of time laws which may
be passel covering time question.
Thu deputy commissioner of lalxr a-1 iii-
dustrial statistics has ) : a careful ie-
1)Oit UtlOii irrigation , sethmig fortim time extmt
to whk-hm it has been carried within thu. state.
imicludimig a tubular statemmiemit , aceiimlanied
by a tnaJ' , mmhowimig all tatisties as far as
obtainable at this time. The ( itlestiOn of
water supply and bt umethods of applying
the sanie to the land is ( iinssI in the report -
port mmmcd , to which you are rererred for
m11010 extended iufornmation upon this ques-
tiwm.
hoeS Sutxnr Imidmistry.
Experiment of time iziost convincing and
conclusive character has demontrate-1 the
peculiar fitness of Nebraska's soil amid climate -
mate for time production of sugarbectu. Un-
( icr thmo stimulus of the act tmassed by the
legislature of 1889 olIering a bounty of 1
cent , armI the furtimer action of congress in
1890 , giving a bounty of 2 cents for every
pour.l of sugar 1)rOJUCCt the manufacture
of sugar sprang UI ) and rapi'ily grew iumto
proportions which gave mmmcli promuiss to the
state. The I'cet sugar factory established at
Grand Island was soon foilnsvcI by time erection -
tion of another atNorfoik , b t1m rc're.ntiiz
an inve.4tinemkt of something like a half umuiP-
, jolt of dollars , eniployiug during a ptrt of
the year some fiO ( ) cuuiployes and disbursing
$ zimany thousands of dollars iii wages aimdin
the purchase of beets. Lndr ) ropr hi-
, ducenient these factories immight be ummultmphmel
amid carried into many of the coumties of time
; , . qtp ' ' -iild rc'uD 'n a mnuicli-ncc"led
diversification in our agriculture. in smaller
holdings in land and consequent rise in value ,
,
a largely increased population , time emuiploy-
mnemit of a vast army ot workmen , and udd-
ing in the end very largely to the wealth of
the state. Furthermore it is demumozistrated
that beets , as a crop , will succeed ma dry seaSons -
Sons when other crops fail-a matter worthy
of much ccnsideration. in view of our recent
experience.
experience.'lime
'lime Bounty QuestIon.
By the action of the legislature in ii91 the
state bounty theretofore offered was withdrawn -
drawn and congress has also recently repealed -
pealed the law giving the bounty of 2
cents pzr pound. As a result one of the tWO
factories of the state has just beemi closed
and it is a matter of doubtwhether theother i
will continue under present conditions.
: i should regard it as a serious misforLune to
the state if an industry of such importance
I amid which has drawn so much interest to
' Nebraska should die out , turd it is well
woi-tii your ern st considcraiu.i : whether
_ ' _ _ _ . _ f.
- ' - - . - - _ -f ' -
ajiliIn1 can be done by ytfto keep alive
these factories we already have and to encourage -
courage the establishment of others. Should
you conclude to (10 so It might be by a boun-
IT to the manufacturer of sugar conditioned
that he pay for beets used miot less than a.
price attuned , and that the payment of such
bounty do not continue beyond the tmniu
when the general govornmnent amity give suf-
: Ilcient protection to the Industry.
mrnxmmum pinto LaW.
At the last session of the legislature it law
-was passed classifying freights anti fixing
reasonable zumaximnumlu rates to be charged
for the transportation of time same on the
railroads of the state. Before time law wont
into effect however , parties interested in
time several roads instituted proceedings In
the federal court to test its validity and
justness and by a recent decision rendered
by a judge of time United States court the
operation of the act has been suspomideh
'ihe decision of time court , as I unilerstamid it ,
while it asserts time constitutionality of the
act and concedes time right of time legislature
to enact laws of thickiud , holds thattho rates
50 fixed are not sufficiently remumummerative to
the roads and for that reason enjoins their
enforcenmont. The opinion of the judge is
( lisappointing and uusatisfactomy. it is to
be rorottod that In saying to a state that
certain railway ratosttstablished byit areumi-
unreasonable the court did iiotgive time state
some rule by which reasonable rates uimight
ho determined.
The opimlion leaves undetermined also
another jamportant and long-agitated question -
tion , whether fictitious capitalization of
railroads should be added to their real value
when fiximig a basis upon which immomes
shah be pernmitted. Not emily with a view
to determining time soimnuhmiess of time decision
rendered , hut vitim the itirpso of settling
the questions I have referred to amid any
others which immay be vahmlalio as a guide to
future legislation , I woimid udvio that provision -
vision he made and direction givezi to prose-
imute the case until it shall have reached the
court of last resort. if umccessary , iii order to
delimmitely estabhisim time rights of the state.
If this be not done it will be for you to eon-
sider whether a miew law be enacted , or
whether to let time lresummt one Stailt until
time bumsimmess of time state shall have grown up
to it , when , under time Ireseumt ruling , it
could be put in operation.
Ii : , ItutMhIiLi i'lmiHti ( ) .
l'lmo Russian thistle. a uimost hmumgerous
pest : tiitl one which lies hrote(1 very duet-
aging to sonic of time states out our north ,
has iimvatied our territory stud umo eliort should
be ouumitted to expel it. 1'lie ixiatter hits been
called to time attentiomi of our people by Prb-
fusser Bessoy of the state uiumiversity ittimi by
actiomi taken by time state 1onrtls of
agriculture and hurticultimre. Atmy aid that
legislation caim give tomviimls its uxterummizia-
tion and resistimmg its invasiomm should be
givemi.
I'ii 1)1 Ic Seim OOIM.
' [ 'lie report of the superimmtemumleumt of public
instruction Shows that owimg , lie lotiht , to
time stringemmey of time tinmes there wits a fall-
leg off Iii time motley exteIllcd for time slip-
port of 1utiblie schools iii tim year l- " . ) I as
coxnlaro(1 with tim year lth-froumm ) : . , it9- ,
748 in iS9l to 4,745 , ! ; in 1891. At
time snub time it is gratifying to imote tint
time averaiO daily attommdztiiee at .scimool rou
front ltil,152 1mm 1503 to 171,193 iii hi9l.
'limo State Norimmiti School.
The state normal school at Fermi is in a
flourishing couiiiitioim ZUmi is I'itmg immumeim
good iii mmmcotimmg time ilemmmaimd for a lii
grade of teacimers for tim eommummmoum scimoeb. of
time state. A pheasant visit to timat iimstitu-
tion assured nme tlmat time work lwme than-c is
thorough , and the coxmiiitioim of timings es I
found timerum testifies to time zealous cure cx-
ercisol 1) ) ' time board of education amid time
Iri.Io it has iii its charge.
My attentiomm has beemi called to time fimet
that the SUPPlY of water timero hums recemtly
failed. As the buildings are hot insurci this
iimatcr slnuld have prommjt. attention.
'h1mo Sttmte lJmmiv.rsity.
The state university , ummder the active and
energetic ihim-cetloit of it4 p1' it cimuimicehlor ,
has obtaiumed a wommderful grnvthm imm atteimd-
itmice auml has tnkeim imigli rumik itrmumig simmuilar
iiistitutiomis of the land. In corisid&mrirmg tim
vauits of time umimivcrsitv as respects rooum it
is msehl to consider timat qmmitc a lam-ge fraction
of those emirohiei is in nttcumdamre umori time
PrePliratorY scimool amid timey are not university -
sity stumleiits iroper. 'i'his rcparatom-y de-
artmmlemmt is iii a sezmso a hmiui schiooivmichi _ ) ,
wI tl it-i superior ativamitages , nate rally iii-
vites a large local attendimimee. ( if time I , 1i1
puiiils iii attemninumee. aimd WimF' ' lCO of rei-
uemmm : . is given in time last reportof time reg'tmts ,
! 7l. or atntmt ( ) remit , are remIiteiL
to Lancaster county timid Iii' tly
fronm time city of Limmcoixm. 'l'hio reemmLs aum-
imounce their tletcrim iimatmn to gradually
mire ! ) time preparatory vork. 'fhmis commelimsion
is a ) rOler 01:0. It Will umot. only himmmit time
wom.if the imistitution to time rijeCt comi-
teniplated iii time law estniilishimmg it amid for
which time bomumty of the general gtwerim-
immemit aim'd the simjmport of tie state are fiber-
ally givezi , mit vili be sommictimiuig of a j.imid. ,
in ( lcternhiluumg whether army aelditiommal
room should be provided , utmiti if so , mow
imumeim.
'I'he cornprelmc'nsivo repert of tim rerents
covering the hiemninl period just closed vih [
be laid before ycnm and will give you immimeim desired - .
sired immforimiatiomm rcspecizm time institim-
tion. It ; clos's with mm. stateimmezit u ; its
mmCelS , which itmchuude the large snum ofl5 , -
00(1 ( for imev buildings ammil appuumtezmauces ,
nmml repairs of old ones , hpsik the usual
ammuoumit for current expcnse. Time rcjimest
coumies at a tiiui'.z vhmeum Imtlm time corm'hitiozm of
tile treasury amiti time condition of our IeoiilC
ruin i.ly resIorml to it. VTimile
shareiii the just undo time I)20Ple of the stat ,
feel in time university , amul apreiate time irmm-
pnrtimico amid desirability of ) r.1mii11g ttm
tmigher education for our yoirm , yet I cannot -
not reJrCSS thmf ) Suggestion that. with time
state. as iS itlm the faimmily o : immdivinhmiti , the
qimestiomi ( it cost aiim ! ability to pay it immmmt
he rcnisidered imm connection with the question
of desmrabihmty.
Otimor State listItuitIomi.
I cztumnot uxmlertakt , in the coniimm.s of this
mumessage to umiako special reference- nil the
state inititut ( Ills. I have only ( loflu 5' )
caes where I imavo tlmouglmt. sueli meferezlce
deirabh , . in the roorLs immade i.y their sev-
cml imeuls xviiI ije found an necoumnmt of timeir
transactiomms amid an estimate of their
wants , while imm time table wimicim will be zip.-
peumueil to this eonmmtmmicatia will be fuizami
an account of the umniouzit of amormey that has
hZefl expezmded for the immaixmtenumxce of each
and for what vuri.oe expemmded.
Mommey iteccived mumtl l'aht Into-Troas-
mm ri.
Received and paid over to the state. treasurer -
urer funds as follows :
Drafts fronrm federal government in behalf -
half of solditrs and suil.rs' home . . . . $19. I1 Z
Five per cent of net ; iroc.dm oi wimo ; of
rmuimc lands 1mm Ntbrasmmt. . . . . . . . . . . . . IG.2 1
Coibdienee RiOfltj . . . . . . . . . . . . . . . . . . . . . . I QJ
Momm'y meurne.1 froth szLlc of torhths
lair furmmmture. . . . . . . . . . . . . . . . . . . . . . . . . 2iL O1
Oflice fet : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 'i'7 ( JO
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cormc1u'on. .
In relinquishing an office which cammic to
Inc Ii a manner hihmiy conmphirn.entary I dose
so with the cunciousne3s of having trie'i to
1C of service to the ieole of the state who
have so rrequemmtiv hmonoed inc. how well A
I have suocee.le.l they must decide. I shall
carry with inc Plemt1t recohlecions of the
kindly relations whieim have existed between
nivself amid those witim wimommi I have aso-
elated or had tdeal with in an official
way. - _ -
Got. . I IOIViZlI'l , ( . ' . P.
Following is time messaze of the in- '
ccning goverimor delivered to both
brmnehes of time legislature :
Fellow Citizens of the Igis1ati7o Department -
ment of the State of ? cbra.km : I have r
been called by my fellow citizens of No-
bra-ha to servo them as governor of the
state. In your IJrLncc I have just taken
the prescribed oath of othice , antI , agreeabi
to time-hoxiored custom , I will ziow a'1lres
you briefly before entering actively upomi
the discharge of the important duties of the
office.
I am lnded.deepls impressed vitI the