The Columbus journal. (Columbus, Neb.) 1874-1911, January 09, 1907, Image 7

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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-
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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
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