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About The Columbus journal. (Columbus, Neb.) 1874-1911 | View Entire Issue (Jan. 9, 1907)
SWrNs if 'J-.-z, - &- 'sasA f. V i .,:f vrV --L -"t; 2r t- r.tJ!S x v v. V. .-4- ,&-Spfne0' '- "SO. i: re I SB&WS WORD URQEt THE LEGISLATURE TO CARRY OUT PLEDGES. mm AiftMsr my extuyasmce Ytm sT Prespertty Tim When the Debt SheiiM Re Reduced-- Rcvmie Law Should Be Materially Strengthened. Governer Sheldon's message to the leg BSsluit was delivered to the two houses em Thursday, December 3d, and was as . fellows: Te the Senators and Representatives, Thirtieth Session or the LgishUuro of Kebraska: I am pleased to greet you upon this occasion. I appreciate beyond expression the confidence the people of Nebraska placed In me at the last election. I appreciate deeply the high honor thereby conferred upon me. and I wish to thank my friends throughout the state for the loyal and enthusiastic support they save aae during the campaign. I feel espec ially grateful for the assistance Jind sup port of the loyal republicans and the in dependent voters who belong to other political parties than the one to which 1 have the pleasure of belonging and by which I was nominated. To the mcmlers or the legislature I de sire to offer a few suggestions, which, I ope and trust, will be taken in the same kindly way, and with the same good will, as they arc given. You will remember that we are pledged egalnst extravagance and bound not to raise any more taxe3 for current expenses than will be necessary, to conduct our state government' under ' the most, rigid' economy. The total estimates for current oxpenscs during the next biennium made by the heads of the several institutions are so large that it will be necessary for you to investigate thoroughly the needs ef these different institutions before mak ing the appropriations. Promiscuous Junketing is expensive, and in the past lias not given beneficial results. It is. therefor, sincerely recommended that a Joint committee be appointed for the pur pose of visiting the several state insti- GEORGE L. SHELDON. Nebraska's New Chief Executive. tutlons and inquiring Into their actual aeeds Itofoie tile appropriations are made. The indebtedness of the state should be decresi-d while the state is prosperous. By an act of the last legislature pro vision was made for payment of Uie out standing indebtedness of the state. That act will insure the payment of the debt within a few years if future appropria tions :ue kept within reasonable bounds. Tiie current expenses must be kept with in the income of Uie state. It will not do to increase the public debt at this time. Th- constitution of tire state will not permit the permanent school fund to 1h Invested in any oilier securities than reg-Isten-d county bonus of this state, and .Jniied States and state securities. The field for investment of this fund should be enlarged. There are other forms of in vestment equally as safe that wou'd in crease the interest return to Uie fund. If it were invested in municipal bonds, school bonds, or in Nebraska mortgages, the suite would be bcnelltted on account of the interest being paid at home. The one-mill levy will reduce the float ing indebtedness of the statu about $300. Oou each year. A large part of Uiis lio.it lng indebtedness has been taken up by the state tieasurer for the benefit of tiie per manent school fund. There will be. theic fore. about $.il0.000 of the permanent school fund each year to be reinvested on this account alone. It is urgently recommended that this legislature submit an amendment to the constitution so that the permanent school fund will not remain idly in the hands of the treasurer when the state indebtedness Is paid cJ". Times and conditions change. Theicfore It will be for the best interests of the state tliat tills section of the con stitution be amended so that future legis latures may determine from time to time what class of additional securities shall be available for the investment of this fund. The new revenue law of 1903 ha? brought about one of Uie most uniform assessments of property ever had. But there is still urgent need for amendments which will provide for a more equitable distribution of the burdens of taxation among tlio property holders of this state. Under the present law real estate that Is mortgage! is assessed for taxation pur poses at its full value to the owner of the land without any deduction whatever for the amount of the mortgage. In addition to this, if a mortgage is held by a resident of the county or of this state the mortgage is also assessed at its full value. There is no good reason why a piece of real estate that is encumbered with a mortgage should !e burdened with greater taxation than a piece of real astute of the same character and value that is not mortgaged. Aiin. under thelaw. if the mortgage i: held by a non-resident of the state, and a great many of them are. no tax is levied gainst it because 'mortgages are con strued to be personal property. Personal property is supposed to be assessed where the owner of the property resides. If domestic mortgages are to be taxed, then The American Magazine Has Changed 'Hands. For 30 Years It Was Leslie's Popular Monthly. Ida M. Tar bell, .who wrote Lincoln aad the famous "Story of Rockefeller"; William Allen White, the well-known frpWaan editor; F. P. Dunne, creator of "Mr. Dooley"; Ray Stannard Baker, and Lincoln Steffens are under the leadership of John S. Phillips, bow editing The American Magazine. Never before has such a brilliant group been gathered together, and they are not only contributing them selves, but are filling the magazine The January St. Nicholas. Perhaps the illustrations in St Nicholas are taken a little too much for granted they are so unfailingly abundant and super-excellent In the January number, which, strikes a fair average, there, is. for instance, a full ' page reproduction of Ruben's painting of his two sons. The frontispiece, "On New Year's Day," was drawn for St Nicholas by Blendon Campbell; and among the other contributing illustrat ors are such names as Reginald Birch, Harrison Cady. C. M. Relyea, Calmer Barnes. C. D. Weldon, George Varian, L W. Taber, Florence Storer and Al- E&PeBBHKsiBBBBRl EwflJKSsJsEjBRjsJsJsJsM &., .. scg lihTTfwBwawawawB'1 RRFflRRelRRflBBRKRRRRRRRl Jfc"v&-RBSaRBRRw&93RRRJ RsKrSKliftiJFsl iL-mSr'A' ssRjRasrMT it r sassesT! HE vABBeVwHR27CesBeBeBsi GesSCVt &vBBBBRRflBYsftCWPijK2z V.2awawBwBwBwBwBwBwBwBs PAxK" C- LLLLw7tExMLmwGmmmmmmmmmmmmW HktahbMmwI&b"aIbaIH llaEE9BffzsySaeBeBeBM laKKaF bwQsrVsbrV IWi2r .,'mBwBwBwWt??4BwBwBwBeB I J jS7 r.TV'Bi ..SBBW4KBBBBSBSBSBSBB '." ' BBnaiSeSBBBBBBBBBBBBBB E jt-.v . .BB"B"LaaBn"SB"B"B"B"B"B"B"B"B"B"B"B"B"B ' BV-- --1BbSbsVSB UEFsmmmmmmmmms EaSBBraraBHQBrarararararararal foreign taortaexM ikanM' k. The" setiBlllls:tainsf to Am i ta te aU mortgage, both foreigirund- domestic; a an interest la real asuite. Being as sessed as aa Interest in teai estate they would then be assessed for "'st'im pur poses where the land is and not wuere the ssertgagee lives. .The value of the urfutgaaw would then; be deducted ' from the value of tne mortgaged estate aad the owacr of the real, estate assessed' upon the equity he puisestrs It Is contended by many that the re sult of such a law would increase the rate of interest because .Nebraska Is aot a creditor state. If such IS' the case' the possibility of. an increase In the Interest rate may be avoided by permitting the privilege of contract whereby the owner of the land may. if he chooses, pay the tax on the Interest or the mortgage. .He could afford to do that and be none the worse off than he is at present. Certainly if all the domestic capital that hi available lor uie investment or mortgages is driven out ef the state noa-resideuts may be expected to raise the rate of interest as they no doubt will do when there is no longer competition by domestic capital. During the past ten years We have been bountifully blessed with good crops and prices, The people of this state have been paying oft their indebtedness and accum ulating capital which should bo invested at home. The present law discriminates against domestic capital and in my opin ion it is forcing the residents of this state to Invest their capital in securities and lands of other states. The present system plainly imposes a double tax upon mortgaged property, when the mortgages is held by a resident of this state and to that extent it increases beyond measure the tax upon that class of property. It is not fair to the residents of our state and it is against good public policy to continue the pernicious system, of the present law in this respect. Another amendment that ia needed to the revenue law is one that will permit the reduction of bona fide indebtedness. Under the present law a man who is in debt Is taxed for all that he possesses and for all that he owes. The debtor class of property holders should not be compelled to bear extraordinary burdens of taxation. Notwithstanding the fact that almost every other state permits the deduction of bona fide debts In soma form or another we arc still discrimin ating against the debtor class which Is neither fair, right nor just. The cities, towns and villages of this state In almost all instances have a high rate of taxation. It is important, there fore, that property therein be equitably assessed. At present the resident prop erty holders pay a much greater propor tion of the city, town and villages taxes, according to the value of their property, than do the railroads which have their terminals within the corporate limits. The railroads receive benefits from the cities, towns and villages and In return should pay their proportion of the city, town and village taxes. It may be a debatable question whether the great corporations of this state have in the past been paying their full share, of the taxes. But the Union Pacific and Burlington railroads havo ;efused to pay in full the taxes which have been regu larly assessed and levied against them for the years 1901. 1003 and 190G. They are alrcadv delinquent about three quarters of a million dollars for 1904 and 1905. The refusal to pay this year's tax will place them delinquent o-er one million dollars. Their action in this respect Is not fair to the other taxpayers of the state and is wholly unwarranted when past conditions In the suite are considered, ine gov ernment gave bountifully. of its land, and the people of this state. In a great many instances, voted bonds to help build these railroads. Besides this there never has lien any restriction whatever upon them In the matter of freight rate regulation. They have always up to the present time charged what they pleased. It requires patriotism at times to support nnd main tain a stable government. These great corporations, by their conduct, appar ently lack U.t noble quality. It Is not ptrange thar their conduct has vexed a ;..iient pooi!r. No doubt they would ask for the protcctkm of the state if their rroperly were m danger, yet they deny tin right of the state government to assess and tax their property as it assess es and taxes all other property. Every thing that can lie done will bo done to enforce the collection of these delinquent taxes and railroad property in the future, so far ns I am concerned, will continue to be assessed at whatever seems to be equitable and 'just. The citizens of Nebraska can not en join the collection ofa tax levied against their property, because they are denied that privilege. But railroads, being non residents of the state, seek relief througn the federal courts. Until congress shall pass a law depriving them of this priv ilege they probably will continue this prac tice. It is. therefore, recommended that a joint resolution be passed memoralizlng congress to pass a law that will deprive a non-resident from enjoining Uie collec tion of a tux levied upon property within the stato. Tho Burlington railroad for the pur poses of business is a unit. But when it comes up for taxation it Is sixteen dif ferent companies. At present this com pany does not give the earnings for the different branch lines but simply gives the earnings for the whole system within the stale. The matter of assessing such a property with the information furnished the state board of equalization and assess ment is a difficult problem. There is no disposition on the part of any one to assess them unreasonably, but there is a disposition to assess tiiem equitably and for what they are worth. Railroads which operate branch lines in Nebraska should be compelled to furnish for each and every branch line an itemized state ment in detail of all the business trans actions of the several lines. togeUier with tiie value of the stocks and Iwnds of each line and the gross and net earnings of each. It Is sincerely hoped that this leg islature will amend the revenue law in this respect. The question of equitable taxation is a difficult one. A uniform assessment of property according to its value, regard less of its character, is certainly to bo desired in any well governed society. All property should bear its just proportion of the burden of taxation. Personality sliould not be considered. It Is neither a crime to "be wealthy nor one to be poor. Let us remember that it is the property and not the person that should be taxed. All amendments to the revenue law that will eliminate double taxation and secure for the people of Nebraska more uniform and just assessment of property will be welcomed by every one that has the wel fare of the state sincerely at heart. In the conduct and management of the state institutions the governor is largely held responsible. No Institution can bo ptoperly conducted where there Is frjetion in its management. All the superintend ents and heads of the different institutions that are appointed should .be held res ponsible for their conduct and for tht. management of their Institutions directly to the governor. The laws of this state should be amended so that in case of mismanagement and misconduct the gov ernor may remove them summarily. We have witnessed in the past at several different times the pitiable condition In which governors of this state have been plaerd when trying to remove a delin quent or Incompetent appointee. I trust this legislature will see- to It that the laws are amended so plainly that such occur rences may not necessarily happen again. The great corporations of Nebraska, es pecially the railroads and the telephone companies, have In the past maintained a strongly organized lobby In Lincoln during sessions of the legislature. The presence of any kind of professional lob byists Is neither needed nor desired. The corporation lobbyists are usually men of high Integrltj and sobriety, men of large experience In their line of work, congen- with the very best novels and short stories and great timely article by other famous writers and beautiful pictures by great artists. The new editors are making good: Their periodical grows better every month. The January number is ex cellent Ray Stannard Baker leads off with a description of an extraordinary experiment in brotherhood now being conducted in America The Theosopi cal Institution at Point Loma, Cal. (Catherine Tingley, the power In the organization, is a vonderrul leader, reminding one of Mary Baker 6. Eddy in the ability she has exhibited. Will bertine Randall Whelan. There are no less than eighty-two pictures in the body of the January St. Nicholas from these artists' work and from photo graphs, without counting the forty-four cuts, enriching the departments of Na ture and Science and the St Nicholas League. o Don't pat "off until tomorrow the matter of subscribing for The Youth's Companion. Whatever your age, six, sixteen or sixty, you will find The Companion to be your paper. It touches every wor thy Interest in life every interest that promotes cheerfulness. -?velops char :fsL clever mea who. by their na sjmo snorts, ax able to, muck for the hktmfmt -Amw The fact that during aU ef this srarlen history of thlstate lU law kasbie. passed which has regulated freight rates hi-tay. fsuttculsx' bears wttasss) to' tho weweuwors: aaa innuenos df'Sx wganisea rauroaa lobby, it is that' this legislature win boss m ures as villi feravar mtt mm mmm ta rule la Nebraska. It is to bo hoped, there fore, that there wiU be passed aotvmbr aa anti-pass law. and a primary election law. but that there wuT also os -aaassC ajaw that: wa-prcfclMt. professional lob bying. The use of tho telephone aa a mrana of communication Is becoming general la Nebraska. There' are eomplatats la assay parts of. the. state of unreasonably high rates and poor service. It is. therefore, recommended that the railroad mminls ton. In addition to control of railroads, be also authorised by law. to control tele phone companies and regulate tho rates thereof. l In regard to the railroad legislation that you are about to enact, permit me to offer these suggestions: First It is recommended that a law be passed" prohibiting any railroad company from charging in the future any mors between points within this state than were the charges on the first day of Jan uary. 1907; compelling them also, to furn ish to the railroad commissioners all traffic and classifications In force oa that date. Second Inasmuch as the constitutional amendment providing for the railroad commission does not definitely define the powers and duties of that commission, a law should be passed immediately that will clearly, simply, and unmistakably de fine its powers and duties. Besides de fining the duties of the commission, there should be conferred upon it the power to prohibit rebates, special rates, and dis criminations of evenr sort to any par ticular person, company, firm, corporation or locality: and power to change, or alter, any or all schedules, classifications or tariffs that are in force on any railroad In this state at any time, so that the rates, fares and charges shall be reason able, just, and equitable. Let this law be written so plainly that It can not be misunderstood, and with such deliberation that it can not be set aside by the courts. Third It Is recommended that-you de prive the railroads of the right to enjoin the enforcement of a rate made by the commission pending an appeal to the state courts. Fourth It Is further recommended that you pass a joint resolution memoralizlng congress to pass a law that will deprive common carriers from enjoining the en forcement of rates made by a state com mission between points within a state pending an appeal to the feredaL courts. I sincerely believe that it will be for the best Interests of the state that you give your immediate attention to the en actment of laws f that will do away with professional lobbying, that will abolish the free pass nuisance, and that will de fine the powers and duties of the railroad commission, so that the commission can get to work at once. There is great need in this state for a reduction of freight nnd passenger rates. The people need the relief. The commission will natur plly await the action of the legislature. For these reasons It Is essential that this work be done as quickly as a care ful consideration of tho subject will per mit. The people of Nebraska are to be con gratulated uoon the fact that they havo eeome awakened and are determined to govern themselves. ,We.have been elect ed to carry out a definite program. It Is to be hoped that the- new deal will bo a just one. Let-iis work together in har mony. It Is suggested that all members of the republican party keen before them the platform that was adopted' at the last republican state convention. It us not forget to fulfill our 'promises and our pledges. I realize somewhat the grave responsi bilities that are about to be placed upon me. and appreciate the importance of the work that lies before me. Having been elected without obligations, except the trust I owe the people of this state as their public servant, I shall endeavor, la the administration of the affairs of our state to be guided by what seems to be for the best interest of Nebraska and for the general welfare of her people. I bear no malice toward anyone, not even to the great corporations that have" so strenuously opposed.- and which probably will continue to oppose, the establishment of common Justice in this state. Their rights must be protected, but when they abuse their privileges as they have done in the past they must be held to strict ceont. The welfare of our state de mands that they must not be put out of Mis'-ess. but that they must be put out of Nebraska polities. I realize fully that this reform move ment not a crusade against wealth, but rather a movement against graft and greed, and abuse of power. It has for s object the establishment In this state, from one end to the other, of government iv the people and for the general welfare of the state. Legitimate interests must be protected. Conspirators against tho common good and violators of the law must be prosecuted. The law of the land must prevail. I hope and trust that I shall have tho loyal support and the wise counsel of the good citizens of this state, with the light of their Intelligence, and with the wishes that God may grant me. I hope and trust my administration may maet the expecta tion of the people of this state who havo elected me. GEORGE L. SHELDON. The National for January Is a "snap py" number. "Affairs at Washington," by its editor. Joe Mitchell Chappie, is exceptionally strong in character; and several additional pages are added to this department, giving to the reader an insight Into the affairs at the Na tional Capital such as can be obtained from no other publication. "Cuba's Malady" is the title of one of the most timely articles of the, month, and la written by John Vavasour Noel, who has been in Cuba for some time, and has made, a study of the conditions that led up to the intervention by the United States. Kate Restieaux con tributes an 'interesting article upon John Greenleaf Whittler, the great American poet Charles Warren Stod dard furnishes one of the best stories he has written for many months, un der the title of "Caprice." "The Bright Side of Packingtown." by Mary. Humphrey, gives the reader an intellig ible idea of conditions, and is so widely different from the sensational material, that all good people, except those who are looking for "yellow literature,' will appreciate the article. The "Home Department" is, as usual, full of those helpful hints that we all want to know. The editor adds to the "Happy Habit" articles a set of "Res olutions" which are good for all living beings. The number is filled with the very best fiction, among which might be especially noted, the story "Revers ing an Engineer." by C. C. Johnson; "The Poor Man's Cow," by Miriam Sheffy; "A Comedy in the Air," by Charles Mcllvaine; "His Client," by F. Binney de Forest; as well as other fascinating fiction iam Allen White, the famous Emporia (Kansas) editor and novelist, com pares Emporia and New York City. Of course the .article Is coaapact-of -ywtt and wisdom.-Ida' M. TarbelL proceed ing with her story "The Tariff In Our Times" tells about the outbreak of protectionism that followed the Civil War. Washington Gladden, writing of "The Negro Crisis," suggests that tho separation of whites from blacks may become necessary. F. Marion Crawford begins a -few .serial, "Arethusa, a Princess in Slav ery," being a lore story of old Con stantinople. acter, enlarges the understanding and instills Ideas of true patriotism.. Full illustrated announcement of The Companion for 1907 will be sent to any address free with sample copies of the paper. New. subscribers will receive a gift of The Companion's Four-Leaf Hang-, ing Calendar for 1907, lithographed in twelve colors and gold. Subscribers who get now subscrip tions will receive $16,290.00 in cash and many other special awards. Send for information. The Youth's Com panion, 144 Parkeley Street, Boston, J Mass. ieh 'MAI MESSAGE ! GOVERNOR MICKEY'S LAST WORD TO LEGISLATURE. ' marc wut ami ie ine UrfM Lsflajtts la. Behalf of the waste, and Pleads for Strict EcoBsmy In Aasrasriations Able Document. Ibnowlns Is Governor Mickey's mnssage delivered to the legislature January 3d: To the Members 'of tho Thirtieth Session ef the Leslslature of Nebraska Gentle men: The organic law makes It the dnty of the chief executive to call the attention of each recurrinte legislative body to the general condition of state affairs and to make such suggestions and recommenda tions as la his Judgment' the needs of the public service require. In discharging this duty I desire primarily to congratu late the members of this assembly on the exceedingly prosperous conditions which prevail In' their respective districts con ditions of thrift and competence which have never been equalled in the history of the state. Without attempting- an analysis of the cause. It Is apparent that a goodly heritage is ours. You are assembled at a time when history Is being- rapidly made. Never be fore has there been an era when tho public conscience was so quickened to a sense of Justice and when there was such a general demand for the purging' of the Inequalities ' which have been tolerated In .our civil system. The time is ripe for Improvement .along- ethical lines. Abuse of special privileges and opportunities must give way to Justice. Organized so ciety has drifted to a higher plane and the Inquiry of the times Is "how can tho greatest good be conserved and guaran teed to the greatest number?" This. I take It Is the present day spirit and I trust It is the dominating1 sentiment which will control the actions of each of you through this entire session. The Revenue Law. The condition of our state revenues Is rapidly assuming- a more satisfactory phase. The hostility which the new reve nue law en-(endered In the campaign of two years ago has almost entirely disap peared, and the measure Js now generally regarded as both wise and beneficent It Is equal to the necessity of raising suffi cient funds to meet the economical ad ministration of state affairs and the grad ual extinguishment of the floating- debt two ends which must be met A needed amendment, however, is one which will require the railroads to report to the state board of equalization and assess ments the actual amount of earning of each road within the state ns one of the bases or assessment. Freight rates In Nebraska are considerably higher than In the states -to the east, and yet the earnings of the roads doing an Interstate business are reported to the several states in the ratio which the total mileage bears to the milc&ce-wlthlnleacb. State.. Thlsis a manifest Injustice, to. Nebraska. If the railroads persist In charging our people higher' rates' than' they do the people of Iowa and Illinois, then tho earnings re ported to our state, board should be cor respondingly larger and the' assessment should be affected accordingly. The new law has now been In active operation three years, and during- that time has been under the rigid scrutiny of all In terests. With the exception of two of our railroad systems.' the Burlington and the Union Pacific it has met with unquali fied endorsement -The railroads men tioned regard themselves seriously, ag grieved In" the matter of the amount of their assessments and the consequent en larged taxes. They have gone into the courts to test 'the -legality of the action of the state c.board of equalization' and assessments, no' far as it affects them, and though they lost their suit in the United States district court they have appealed to the United States supreme court where the Issues are now pending. Tho amount involved Is twenty per cent of the .total taxes due from tho two roads to the several counties, with. the excep tion of those counties where the amount in controretsy Is less than ftM. For the years 1904.. 1905 and 19M the total ef taxes thus withheld is about SLOM.OOO. Approximately $100,009 of this sum 'be longs to tho state, and the remainder to the several counties, school districts and municipalities. Manifestly the failure to collect such an amount of tax is working great hardship and embarrassment to many county treasuries. Firmly believing- that the railroad assessments as made Dy tno state board are not more than the law makes obligatory, and are not out of proportion with the assessment of other forms of property. I confidently look to the highest court In the nation for a vin dication of the state's right to assess any and all corporations upon the actual value of their property and the Issuance of an order compelling- the payment of all de ferred taxes. The State Debt. A fairly satisfactory progress has been made during- the past biennium in the re duction of the state debt On November SO. 1904. the outstanding- general 'fund warrants aggregated $2,253,386.40. On No vember 30. 1900. the same Item bad been reduced to $1.916.81.31. 'a total reduction for the biennium of $336,705.09. ' Of this latter amount $373,946.80 Is directly chargeable to the redemption fund act .created by the last legislature, providing a one mill levy for the gradual extinction of the floating debt It wiU thus be seen that the excess of receipts over expendi tures for the biennium. aside from the re demption fund, was only $62.75S.29. indi cating that in the matter of appropria tions the previous legislature left but lit tle margin between receipts and disburse ments. It is evident that had it not been for the executive veto of a number of largo but unnecessary appropriations the debt would have" been increased during- the past two years rather than de creased. The one mill redemption fund has really been In operation but one year, so far as having- any effect upon the re ceipts of the state treasurer's office Is concerned, the 1906 taxes having not yet been paid.- When the taxes for the past year begin to come in. however. It is be lieved there will be marked imnravcmmt In the matter of debt- reduction, unless legislative expenses and appropriations more than offset the Increased receipts. The tax owed to the state by the Burling ton and Union Pacific railroads, estimated at $190,000, and payment of which they are resisting- in the courts, will also be applied to the debt when collected, mak ing another material reduction. The estimates now in the hands of the state auditor for the maintenance of all branches of the state government during the next biennium. payable from the gen eral fund, total the enormous sum of $3,416,143.84. the largest estimate ever submitted to a Nebraska legislature. The estimated general fund receipts for the biennium, are $2.9Sf,74.T2. a sum. $489. 4C9.13 too small to pay the estimated bills. It requires no argument to prove that the pruning knife must be applied to these overgrown estimates. The treasury must be protected from the threatened on slaught It win not do to make appro priations even eoual to the estimated re ceipts, "let alone In excess of them. There must be a gradual debt reduction, not only through the operation of the redemp tion fund, but also through a wise and economic conservation of the general fund.. Each, one of you is pledged to an .economical' administration of, affairs and the state demands that you make good. The "attacks of those who have designs on' the treasury will be most aggre&sive and persistent but' you must stand firm for the 'Interests of the-taxpayers and the In tegrity of the treasury. Purs Pood Law. .After many years of effort congress has ataaHy passed a pure food law. very com prehensive In Its scope, affecting all food products and also drugs and chemicals which enter Into the 'compounding of :medlclnes. .The federal law applies only to Interstate -business. It orcvonta the traffic In Impure food products miosn state lines, but, does not prevent the manufacture nnd sale of such products within state imes. It te. evident that if the people of Nebraska are to receive full benefit from the present agitation for pure, wholesome and truthf-illy branded food the national enactment must be sup plemented with a rigorous state law em bodying the same features. Otherwise Aebraska will become the nome of Lumer ous factories for the production of in jurious food supplies, all of which c be sold with Impunity within tho stow- so long as'we have no 'state law. to the-contrary. I recommend that the best effort of your respective houses be given to the framing and passing ef an adequate law woicn wiu give is our people ample pro tection along the lnes Indicated. hortsge off Permanent School Pun. On June SO. 1996; the supreme court ren dered a decision which, hi all probability, fealty disposes of the suit brought by he state to recover from the bondsmen of former- State Treasurer J. 8. Hartley. The state lost though "the dedeion re ferred to was, hated oa aawre technical ity. This famous 'ass was ran tho gaunt let ef tho eeurts aWav-aiiiiaViir of years and It nowap--eariewrtrj-Mls.no pos sibility T tiaootlagsartBo' bondsmen any porttoa ot tlW Bartley shortsge.;9uch being tasJacfcvftvrsBosJna for the state treasury; aaluatMself to the consequent ooamtloaa cettsh.-. Article S cenaUtu3s eaeVaa follows: "AU -tswds behmsrftss: to the ror educathtsMri-purpsasa: tte Interest and 'In come wworoof only 'are. to be used, shall be deesMd trust fubdsiheld by the state, aad tbocatate shall sssJr att losses there of, .thatcau vio-saiawuwer accrue, so that the same shall remain forever lavto fate.wa undftttfcOshed." - 'jf , It Is taerefomelrtigafciry upon . your body' to make provision for .the restitution of tho dipletoafoads. either by authoris Ina. thefdrawirur of a warrant uson the 'general fund 'for the amount payable to tne treasurer,, or ny authorising a special levy upon tho grand assessment roll cov ering one or more years, sufficient to meet the requirements. The Items -and amounts of such shortage are as follows: Permanent school fund $3S9.S42.s7 Permanent university fund.... 9.775.93 Agricultural college endowment fund ............. . ........ 43.368.61 Normal endowment fund 13.600.99 Total $325,687.60 Restriction of the Lobby. Extravagant and unnecessary appro priations are very largely due to the per sistent efforts of Individuals who, through selfish Interests or mistaken seal, make a practice of frequenting the legislative lobby and halls. - and even the floors of the respective houses, seeking for oppor tunity to influence members in behalf of their pet measure. The custom is vicious and works great Injury to the state treas ury. I suggest that the public Interest requires mat you adopt a ruie carry in the session which win protect the legisla tive chambers and balls from the influ ence of the lobby, under penalty, and that the rule be rigidly enforced. Railway Commission and Freight Rates. The previous legislature provided for submission to the voters of an amend ment to the constitution creating a state railway commission of three members. This amendment was adopted by a large majority at the bite election, and at the same time the first board mt commission era was duly elected. With reference to the powers and duties of the commission the Joint resolution submitting the amendment reads as follows: v "The powers and duties of such com mission shall Include the regulation of rates, service and general control of com mon carriers as the legislature may pro vide by law." etc It will be necessary for your honorable body to define in detail the duties of this commission and to confer upon it ample authority to effectively deal with the sub jects which will come before It Ton are to fix salaries of the members and make provision of such clerical help as may be needed, presumably one secretary to the board. You should make It cer tain by legislative requirement that the person selected for the Important position or secretary snail nave had practical ex perience In connection with railroad man agement and rate making, able to meet the railroad officials upon their own ground and thus capable of rendering the more valuable assistance to the board. The people are looking to this commission for relief from railroad oppression. The measure of success achieved by the board will very- largely depend upon the choice of a secretary. He should be an expert The railroads have been a supreme fac tor In the development of Nebraska and no one win gainsay their right to reason able returns upon their actual invest ments. It Is also right that the people should be protected against unjust dis criminations and extortionate rates. The remedy of national legislation is bcint; vigorously applied and it remains for the several states to be equally active. I favor such legal restraint as will operate against, discrimination and will guarantee equal privileges to alL Now that the peo ple have established a railroad commis sion and have authorized you to clothe it with ample power, marked improvement along these lines Is confidently expected. Education. The growth of our educational system in all Its branches has been phenomenal and highly satisfactory. Our people are alive tor the Importance of good schools and have ever-shown a willingness to pro vide for tho needs of such institutions whenever the need has been made mani fest At the present time the state is supporting by direct taxation the univer sity and two normal schools, in addition to five Junior normals, a school for the blind and for the deaf and dumb. I have no doubt but that your honorable body will carefully consider the requirements of sH .these institutions and .Willi make such appropriations as win further their progress and be In line with the growth and development of the state. Institutional Comments. I am pleased to call your attention to the fact that the penitentiary is nearly self-supporting in the department of maintenance. The current biennial report of .the warden shows that for the six months ending November '30. 190G, the per capita cost of maintenance was $66.97. During that time tiie per capita earnings of the convicts were $50.99. making the net maintenance cost to the state but $15.03 for each inmate, a 'little less than nine cents per day. The physical condi tion of the prison is first-class and it stands today as a model institution of its kind. The three insane asylums of Nebraska have each been created by different stat utes and are known by different names. That at Lincoln is known as the "Ne braska Hospital for the Insane." the one at Hastings is .designated "Asylum for the Incurable Insane." while the one at Nor folk is styled the "Insane Asylum at Nor folk." Owing to the variations in the statutes creating them some perplexing questions have arisen, and are likely to continue to arise In the future, with re spect to their control, management and legal status. I deem It Important that the chapter of our statutes dealing with the fhzane be revised, that the three asy lums be placed on exactly the same foot ing, that they be styled respectively the "Lincoln Hospital for the Insane." the "Hastings Hospital for the Insane." and the "Norfolk Hospital for the Insane.' that there be no distinction in the char acter of the patients received at either Institution, and that the state be con veniently districted so that each asylum shall receive the patients coming from its own district The word "Incurable" is almost brutnl In Its suggestion and It should be omitted from the title of any and all of the asylums. Within the limits of this message it Is not practicable or necessary to call your attention to an the varying needs and conditions of the, different institutions. For detailed Information your nttention Is cited to the biennial reports of the rc snective superintendents. To these you should give careful perusal and thorough consideration. Anti-pass Law. During the past two years a very gen eral se-itlment has developed against the Issuance of free railroad transportation Such action on the part of railroad .of ficials Is 'rightly regarded as unjust dis c'imlnatton and ns being subversive of the public wcaL Both the great ,DolItical parties have declared against the prac tice in xneir siaie conventions ana nave pledged themselves to definite action. I recommend that at as early a date as 3 practicable you add to our statutes a rigid anti-pass law. applicable to all cases save those of bona fide railroad em ployes, the members of their Immediate families, and care-takers of live stock' With the exceptions noted, a heavy pen alty should be imposed both on the party Who Issues a pass and the party who solicits the same. , Direct Primary. I' urge your honorable body to give to the state some form of a direct primary law. but with such limitations as will make it popular and effective. It should rigidly guard against the selection of can didates who may-have received a plural ity of the votes cast but not a majority, and should In all respects safe-guard the principle that the majority have the right to rule. Labor Bureau. The results accomplished by the bureau of labor and Industrial statistics are not satisfactory and are not commensurate with the cost of maintenance. So far as I have been able to observe the entire history of the bureau has been a dis appointment If you think best to con tinue the department I recommend that the aei vices of the clerk be dispensed with; as the deputy commissioner and the stenographer constitute ample office force. Law enforcement. I have a firm conviction that the chief executive: should have-more specific power conferred upon him In the matter of law enforcement Section 6. article 5. of the constitution reads: "The supreme executive power strati be vested In the governor, who shall take care that the laws be faithfully executed." .While the foundation Is well laid the statutes are not sufficiently-broad to give to the gov ernor the power which Is often needed to correct abuse. A number of complaints have reached me of refusal on the part of, county-attorneys to prosecute offenses. vt wIimi th ni!iiin.irv cnmittafnts At. "have been placed in their hands. On account or swen neglect or duty the- law abiding sentiment in the community has been outrn-d and great wrong has been done to tri rights of established so ciety. Tht. governor is powerless to In terfere acoaasa as has as soalul, county attorneys) I rsrnmasaad.Oor atlea of a statute prevlslac that Is criminal cases aaa m avu In tho state..l lecitaHalnt has attorney raa wasrs no ruses to given sowar to oouaty trkratous Sou tha-reatf taae MUiars-e of the county, :or to do both, aad Jw event of tho continued aosloet or refusal of r to do both, aad such county , attorney to aot that tho governor be, given absolute power' to re move him from esSce forthwith. Serb s law would prove of 'tho' aace to tbe.causo of aooi .would roaioay a defeat wJ U-exjots. tno rareio bow. lfVal luHfui la thaftvfth uoa ? of the ertiai&al coos, is a w addition to the statutes aad that' Tto practical workings aro humane aad boss- nciai. Tho highest result sought to bo attained by conMnement ia the -a lallss-. tiary is relonuaUoa rather than revenge, aa lmpeuta to correct habits of aio rather than the more visitation of condign punishment The power of parole, if dis creetly exercised, can bo made tho means of a permanent uplift to tho pentiaent one. at the same time relieving tho state of the direct care of such, la tho four years of my tenure of office there havo been very few violations of the tonus of parole, it being impossible to entirely guard against imposition. If the laws governing pardons aad pa roles are too liberal then hedge them about with such limitations as you think proper, but so long as they exist in their present form, with full power vested la the governor, tho presumption is that such laws mean something aad that tho Kovernor will exercise the power coa- lerred upon him when tho c.rcumstaacos surrounding the case warran. actios. Tho More Important Legiuatlen to Ss Drafted by Jolat Cei mittes. a I believe the public Ini .rests wiU bo best subserved If ail bill: affecting tho more important matters of logisUUoa could be formulated anl mtrodueedby a Joint committee of the two houses. This suggestion Is especially pertinent to such subjects aa direct pr.mary. anti-pass, freight rate and rallroati legislation. Any other course Is likely to result la a multi plicity of bills upon the same 'subject a divided support and either no legis lation at all or the linal adoption of a faulty measure. State Treasurer's Bond. Tho attorney general holds that under our present law governing tho giving of indemnity bonds each of tho Individuals or guaranty companies signing such a bond are liable for the whole amount The law does not permit of a division of the entire amount of the risk between individuals or companies, each taking a part and being responsible for no more. One bond must cover the whole amount and each party signing It is liable for aU the risk. This construction, and It is undoubtedly correct makes It very difficult for the state treasurer to give a satisfactory guaranty bond in so large an amount as is reouired (Sl.000.000) for tho reason that but few of the bonding com panies will sign a Joint bond.-- In -view of these facts I recommend that the law governing official bonds be amended so as to permit of the division of largo risks between several companies, each giving its individual bond for such part of the risk as is apportioned to it and being responsible for no more, and that tho amount of risk permitted to any company be limited to twenty-five per cent of its capital and surplus. State Suits Involving Heavy Loss. The suggestion of President Roosevelt In a recent message to congress that a law should be passed to prevent courts from setting aside just decisions for mere technical errors in pleadings, instructions and evidence, recalls some of the civil cases- wherein the state of Nebraska was on technical grounds a defeated party, and brings to public attention the ne cessity for providing a remedy against nublic losses like those revealed in the litigation of civil cases instituted by tho state. If the people can not get relief by means or a statute like that suggested by Presi dent Roosevelt, provision should. bo made to amend the constitution to meet present conditions. The Junkln Act The power of the state to curb trusts, monopolies and conspiracies in restraint of trade has been demonstrated by the enactment and enforcement of the Junkln Act This Is a law passed by the last legislature entitled 'an act to protect trade and commerce against unlawful re straints and monopolies, and to prohibit the giving or receiving of rebates on the transportation of property, and to provide a penalty for the violation thereof." Shortly after this act went into effect I directed the attorney general to bring a suit against the Nebraska Grain Dealers association. ' which has resulted In a sweeping decree issued by the supremo court perpetually enjoining the members thereof from monopolizing the grain busi ness and controlling the prices of grain. The effect of the suit was to give tho producers of grain the benefit of one and one-fourth cents per hundred which had been unlawfully charged for elevator serv ice, and to restore competition in tho grain business throughout the state. A simlliar action was brought aealnst tho Nebr.iska Lumber Dealers' association the result of which Is now pending In the supreme court The bill carried with It an appropriation of $10,000. to be ex pended under the joint direction of the governor and the attorney general, and of this amount 52.04Z.02 nas neon used. .Supreme Court and Commission. During the past two years the supreme court, limited by the constitution to throe members, has been assisted In the con sideration of cases by a commission of six members, and the nine so working to gether have reduced the docket so that cases now coming from the district courts can be heard and determined within a little less than a year. The commission system is a makeshift to add to the ju dicial force without contravening the con stitution. The system Is rather cumber some, not entirely satisfactory and should be- tolerated only until such time as the constitution can be amended to provide for a court of sufficient membership. I recommend that you submit to tho electors an amendment to the constitution providing for a supreme court of five members, to be increased to seven mem bers as the public service may require and at the discretion of the legislature, at a salary in proportion to the responsibility and dignity of the office. Such an amend ment would no doubt be sanctioned by aU parties and could be made a part of the ballot and carried ns was the railway commission amendment at the last elec tion. Child Labor Law. Public sentiment Is greatly stirred at the present time by reason of the abuses incident to the employment of child labor. Every child has an inherent right to aa opportunity for self-Improvement and tho best Interests of society in general de mand that that right should have con crete expression. The employment of children of tenders years In factories, stores, theatres, concert halls, saloons, and In even worse places. Is a crime against youth and If persisted In will have a serious eect .upon the body politic I recommend that an adequate law be en acted upon this subject nnd that there be coupled with it such a compulsory educa tion section as can be made effective. Railroad Passenger Rates. With the abolition of free transporta tion, which I assume this legislature win accomplish, will naturally come Increased earnings of the passenger departments of the several railroads. As these corpora tions are already earning sufficient Income upon their stocks and bonds it follows that the people should have the benefit accruing by reason of the disappearance of the pass. Assuming that the anti-pass law wilt be rigidly enforced, its is a safe conclusion that a reasonable reduction m present rates can be made without doing Iniustlce to the railroads. I believe the setting of mileage books good for 1.099 miles or more at th of two cents per mile, and trip tickets at two and one-half cents per mile, would be fair and Just and I suggest these rates for your considera tion. The governor appends two statements one giving the estimated receipts for the fiscal period commencing April 1. 1907. nnd ending March 31. 1909. These are based on 85 per cent of the amounts levied for aU purposes under the grand assess ment roll of 1906. and sundry other collec tions based on actual receipts durinr the last two years. These total $5,161,559.02. This sum is divided among the various funds as follows: General. $2,926,674.72; school. $1,330,044.45: university. $877,763.79; normal school. $18,163.22: state library. $6,098.50: hospital for insane. $2,512.33: penitentiary. $300. The other statement Is an estimate of expenditures for the same fiscal period. For new permanent Improvements ths amount is $517,615.84. and for actual cur rent expenses $5,635,278. which, with the state school apportionment of $1,340,937.67. to be disbursed during 1907 and 199$, makes a total of $5,493,831.51. "Permit me to sav that the public wel fare has been largely committed to your hands for the coming two years, t sin cerely hone that the state may bo richly nenenitea oy your aeiinerauons. ana t that you may each nave Divine guidance 1 in the discharge e discharge of every duty. - I iaterestssv 'where mouss ., - - - .. ssoavvsiBiii to the .wsssy priisoesjts, that tao aw-rensr as . . ., 'JOHN II. MICKEY." I --z urnhioVl kifttrc neglects re- - PARK CANNOT SEE STRIKE. noaol .s ! rawr rwM - 'OMAHA Park sf the TJnJos tas labor dJgTkmrttss es ths "I know thstrs-scs ss ths Fataav PwdScasd tssj- saw snsosbtouly as'. loyal to their orgaslsotlos as ess cu ss. At ths snsas ttes -recemtly Brads a agyeesaest on wags (tsastkw with the coatpaay for two -fsars and they aot having nay, grievance asakss it prcsoateross t think that they would take part in aa affair that iocs aot concern thsau; I can aaderstaad how the strike sal 'the Southern Padac aright extend tai its iauaedlate eronectSoas at tne send ef troalde, bat I cannot Scare oatg how It could reach the Union facile, lines. I know that none of the er gaalzatioBS here, or along- the Tines.. favor such -exteastoa of the 6trlks.i' The pubHc would be bitterly opposed; to it, as the iacoarenieace aad bar- ea would fall heavily aaoa the peo ple, and 1 3o not believe ovrnen would) bring this laconvealence about just tea help the f rssaea ia Texas. Mr. Park says the coal sitaatkm is bow ia good shape and at an thetowast pa the line there is a fair supply oft fad. The company is harrying coal) to all points aad there cannot be a shortage unless there should be n strike, followed by severe weather. Ia; that event it is hard to say what the result atight be. I OVER THE STATE. Geneva's new library has beea opened to the nubile. Joseph F. Tinkler, the young man who was drowned la Cut-off lake near Ossaha. resided la Beatrice for many years before going to Omaha. Howaa a graduate of the Beatrice high school. The Beatrice Are department has closed a contract with Miss Gilbert of New York to give a home talent p-y there the latter part of January for the benefit of the Area-tea's aumameat fund. Business men of Humboldt report the holiday business unusually good. with the possible exception of heavy winter goods, for which the demand was not, strong owiag to the mild weather. The seniors of -the Fremont high school this year will be required to prepare orations whether or not the school board decides to require them to appear before an audience at the theater when the annual graduatiag exercises are held. An assault aad robbery occurred at Holdrege, in which William Thomp son was beaten over the head with a whisky bottle and robbed of about S17e by a man aamed Harvey Patrick. The victim of the assault is under the doctor's care, while Patrick is still at large. - Though the last ia the. list of coee tJes, York Is the first to make its na nus! report to the state treasurer: County Treasurer R. R. Copley seat in his report, showing he had collected during the year state taxes to the amount of S40.386.36. of which $ 5,084.08 was sent along with the report The Missouri river is fast catting away the farm lands in the vicinity ot Minersville and it is now so neir the Burlington railway tracks and the sta tion that surveyors were sent dowa there to ascertsln how far back the tracks, station and stock yards win have to be moved to be safe from the Inroads of this everchanging body of water. The horse thieves who are opera ting in this vicinity, says a Norfolk dispatch, have again shown open de fiance towards the recency organized Anti-Horse Thief association ana net night stole another team. The victim is a farmer south of Norfolk near the Stanton county line, named Best The association has been unable to trace any of the many thefts and it will go hard with the first culprit who comes into their hands. At its Joint session the old bank ing 'board, consisting of Treasurer Mortensen, Attorney General Brown and Auditor Searle, adopted the fol lowing resolution: "Resolved; that it is the sense of this board that we appreciate the faithful and efficient services of its secretary, Edward Royse, his assistants, and the several state bank examiners during the past two years. We recognize their fidelity at all times to the interests of the state aad the public." The appointment of a receiver for the Standard Beet Sugar company was a surprise to people at Fremont, who are familiar with the situation. The company has been having a big rtra this season. The beets have been of a high quality, the tonnage per acre above the average, aad it was hoped that they would be able to get oa their feet again. People who have raised beets were figuring on contracts for next season and the prospects were good for an lncreasea acreage over last year. While local freight No. 58 was doing its switching at Schuyler, onther.oath side tracks, a box car was throws from the track aad raa into the Schuyler house, teariag the northwest corner completely away. Dr. J. A. Peters of the firm of Hamilton Peters, Springfield, was found unconscious oa the street at a late hour the other night. He was taken to the hospital, in which he is interested. He has been conscious most of the time but is' unable to give any iaformatlon as to how he was hurt. A horse thief, captured at Rogers, gives the hame of G. W. Gabhart of Wiiitesville, Mo. He stole a team ef horses near Madison, from a mam named Bash, by wheat he was for merly employed. He confessed oa be ing arrested. Mrs. lillie. pardoned by Goverao? Mickey said in learning of her par don: "I do regret having to give ap the companionship of as Mad aad good a women as ever lived, that of Mother Beemer, the wife of the war don. That is den. That is the only paag I have h 1-. .! t-Muru-K uwe. t'i i -l I -. ?rK -VJC -w -i-5 ?. l r 'f -ruv--. -l. l'Vfrg&-m 5-Jf Bb5i?gBJt 'j : " a. V N.$. JitS-AgJ&'SSJ. - .&-&.$&.