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SHELDON'S FAREWELL MESSAGE
c
Advice He Has to Offer to New Lawmakers Regarding Many Matters
of State Wide Interest
Governor Sheldon's farewell messago
jread to the legislature was a lengthy doc
ument, covering many subjects of state
ipclicy and legislation. Chief among the
Jtopics touched on which will attract morn
than ordinary attention are his recom
mendations relating to taxation, the re
vision of the state primary law and to
liquor legislation. The portions of his
message on these topics are quoted here
with. Other recommendations and com
ments he makes are as follows.
That the governor be given discretion
to refuse to review applications for par
don -or commutation of sentence.
That an Indeterminate sentence law be
passed b ythe legislature and a board of
pardons be established by an amendment
to the constitution.
That a plant be established at the pen
itentiary to manufacture gjdos used by
the various state institutions.
That the state Institutions are in good
condition and great improvements have
ben made during the la.ci few years.
That the state carry its own insurance
wherever suitable fire protection has been
provided.
Commending the National Guard as de
serving of the most loyal support by the
citizens of the state.
Deploring that there arc not better mil
itia companies in Lincoln and Omaha anil
pointing out lack of means Is the cause
of Inefficiency.
That the state build armories In those
cities which arc maintaining militia com
panies. That officers of militia companies be
appointed by the governor after a com
petitive examination.
Calling attention to the fact he has ap
pointed a commission on the conservation
. of natural resources, io serve without pay
ind to report to the governor.
That the legislature make provision so
lint Nebraska, can be represented at the
Alaska-Yukon exposition.
.That the state fair grounds be equipped
as speedily as possible with permanent
buildings.
Commending the Xa'ionnl Corn imposi
tion as a credit to the commonwealth and
praising the Nebraska exhibits.
Keporting that the siUer service donat
ed by the state to the battleship Nebras
ka had been presented at aSn Francisco
June 8.
Kecommcnding the legislature appro
priate SlS.OGO to apply on the cost of ri
'monument to Abiaham Lincoln on the
os'dtol grounds.
Calling attention to the necessity of re
pairing and improving some portions of
tiie capiloL more particularly the base
ment. Concurring in the recommendation of
the state veterinarian that a. live stock
sanitary commission be established.
Recommending an appropriation sufil-
clem to enable the state authorities to
maintain a live stock quarantine where
needed.
Favoring an appropriation to enable
fie experiment station to make investiga
tions for tiie cure and prevention of hog
cholera.
Favoring means be provided for the es
tablishment of a bacteriological labora
tory. Public Education.
Recommending liberal appropriations
for the training of teachers in the stat
university and normal schools.
Favoring an appropriation of at least
S30.0C0 to further junior normal work.
Favoring an appropriation to assist
weak school districts.
" Directing attention to the fact that Hit
Increased, valuation of assessment proper
ty will care for the normal growth of tin
state university and provide means for
Increasing the salaries of some profes
sors. Favoring an increase in the size of the
university campus so that an athletic
field and a place for cadets to diill can be
provided.
Favoring appropriation for agricultural
experiment work.
The establishment of additional experi
ment stations, one to be In the s-uid hills
district, another in the extreme western
part of the state and another in the irri
gated section.
That in grazing counties the county
board or the people might require that
:rop land be fenced instead of grazing
lands.
Reduction in State Debt.
There was a greater reduction in th
state debt during the last blennium than
ever before. On November 20, 190C. there
were warrants outstanding against the
general fund amounting to $1,91G,G71.1".
On November 30, 1S0S, this had been re
duced to $7GS.Cr.0.V2. The reduction in
1007 amounted to S531.C0C.C9, and in 190S
tho reduction was 5016.433.90. making a
total reduction of $1,148,040.59.
The 1-mlII levy, provided by law to re
duce the debt, produced during the blen
nium. $C3C,123.S5. Therefore, the levy
whlch was made for lite general fund pro
duced $511,91C74 more than was neces
sary for the general expenses of the state
government, and that amount was ap
plied on the payment of the debt. Tiie
levy for general purposes during the bien
nium was & mills, the same as In previous
years.
Calling attention to the report of the
commissioner of public lands and bui.
ungs to tiie effect the jiermanent school
fund should be reimbured J525.5S7.50 am!
showing there is in all about $S.290,000 of
trust funds in the permanent school
fund.
Recommending a change in the law for
the securing of public funds, so that first
mortgages on real estate or other securi
ties of equal value may be used as se
curity. New Savlnns Bank Law.
Calling attention to the need In this
ptata for a law that will encourage the
establishment of private savings banks.
The conditions are such in most of the
smaller towns of the state that a savings
bank of Itself wil not pay. and conse
quently none are established. Two plans
are suggested: Either the enactment of
mutual savings banks with the privilege
of -having branches in. various parts of the
state, or a law authorizing and provid
ing for the establishment in commercial
banks of a savings department, but re
quiring the business to be kept separate
and distinct.
That 1p 'ciotinn bo pn"ofod providing
GOOD JOKE ON THE BARON
Friend. Wrote Speech for Him, and
Then Bitterly Criticised It.
In the Hungarian parliamentary ses
sion of 1S41 a certain Baron Szjel lived
in Pressburg, the former capital of
Hungary, with two intimate friends.
George Majlath and Barthel Szemere.
One day the baron became envious of
their laurels. He called Sr,CDiere
aside and said to him: "My good
for publicity of county funds and the In
terest paid thereon. '
Taxation.
The state board of equalization under
this administration lias endeavored, so
far as it was possible, to make the asses
ments of property uniform, so that each
class of property should bear it3 just
proportion of the burdens of taxation.
To this end. the Union Pacific railroad
property, in 1907, was increased 25 per
cent- Increases were made on other rail
road property. Altogether the assessed
value of railroad property in 1907 and
U-0S was Increased by the board, $3,C34,
441. Any one who has given the question of
railroad assessment much consideration,
and has familiarized himself with the
facts, must realize that tho railroad com
panies are, comparatively speaking, not
equitably assessed. Some of the roads
whose earnings are small are probably
assessed at a higher value than pome of
tho other and greater railroads whose
earnings are much larger. However, these
inequalities must necessarily continue to
exist until the railroad companies fall out
with each other. At present there is an
apparent disposition among the railroad
companies to stand together and not give
information concerning another company
that would be helpful to the board of
equalization.
In 1907 the lands of this state were as
scsed at approximately $146,000,000, an
increase of $53,700,000. Tills increase was
brought about from the fact that lands
had not. been assesed since the year 1904,
and because since that time there has
leen a great increase In the value of
lands throughout the state.
Difference in Valuation.
"When the assessment of lands was re
turned to the state iKKird of equalization,
this year, it was apparent that county
assessors had not used tiie same measure
of value. The IraarJ endeavored to cor
rect that condition and perform its duty
as the law requires.
It is the duty of the board of equaliza
tion to equalize all classes of property so
tnat the burden of taxation may be
equally shared.
The first essential in a just system of
taxation is to provide means for a uni
form assessment. No class of tax payers
will complain of their assessment if the
property is assessed uniformity through
out the stale.
The question of taxation Is not an easy
one. Rut anyone familiar witii the his
tory of the assessment of property of this
suite during the last ten years knows
that the property at the present time is
by far more uniformly assessed than It
was under th old revenue act.
It la true that It is difficult for the
board of equalization to do justice in all
instances, because no one can have
knowledge of the actual value of all the
pioperty in ail parts of the state.
The board of equalization is composed
of officers elected by the people of the
state. There need be no fear that such a
board will deliberately and Intentolnally
do an injustice to the taxpayers in any
portion of the state.
Powers of State Board.
The board should not be deprived of the
ri;;ht to lower any class of property or
all classes of property returned for a
county. Neither should the board be de
prived of the right to i.fse all the prop
erty or any class of property of a county
v. hen. compared with otiier counties, such
property has been under-valued.
When the revenue law was first en
acted that board could raise or lower all
of the property within a count', but it
did not have the right to raise or lower
any particular class. Experience demon
strated that it was necessary to change
tiie law, and experience has also demon
strated that the change was a wise one.
The law in this respect should be left
alone. There is no necessity for any
t hange in th law in this particular.
So far as the assessment of land is
concerned, it is a matter of common
knowledge that the per cent of Increase
in the assessment of land values in 1U0S,
with the exception of some parts of the
sand hills district, increased from the
east to the west. It is also a matter of
common knowledge that the lands In the
eastern part are assessed at more nearly
their actual value than they are In the
western part of the state. There should
be no complaint that such is the case
because the people In the western part of
the state are still in that period of de
velopment when many sacrifices must
necessarily be made, a good many of
which are for the welfare of the whole
state.
Assessment cf Railroads.
So far as the lands and the railroads
are concerned, I am firmly of the opinion
that the railroads, with the exception of
the Union Pacific Railroad company, are
assessed as high in proportion to their
actual value as are the farm lands of this
state. I believe the assessment of the
Union Pacific Railroad company should be
still further increased, in justice to the
other taxpayers of this state, and have so
maintained while acting as a member of
the assessment board.
So far as the election of assessors by
precinct Is concerned, that Is a different
matter, and to that I have no objection if
you deem it wise to make the change.
Tf any amendments to the revenue law
arc made, the object should be to secure,
i possible, a more just and equitable sys
tem of taxation.
A glance at the grand assessment rolls
of this state will convince anyone that it
Is more necessary to devise ways and
means whereby the owners of personal
property may pay more nearly their pro
portion of the taxes than to make amend
ments which will restrict and tie the
hands of the board of equalization.
In 190C the personal property of this
state, other than railroad and private car
service, was $75,053,000; In 1S07. $S3,1SG,
000. and in 1908, $S2.393,000.
Anyone who Is familiar with the condi
tions in this state knows that the actual
value of personal property in 190S was
greater than It ws In 1907. yet the grand
assessment rolls shows a decrease of
$393,000.
The holders of the invisible personal
property evidently have discovered vari
ous ways of concealing their property.
Vhen the new revenue act was passed in
'on. prwl firt rvnt Irto force, there was
Szemere, write me a speech." "Most
willingly, my dear friend; about what
would you like to speak?" "It is all
the same to me," said the' baron, "if
the speech is only a nice one wonder
fully nice." "You will be satisfied
with me?" Szemere answered, and
nest day brought the manuscript. The
baron memorized the speech and de
livered it on the third day. The
chamber re-echoed with applause.
a great increase in the assessment of
personal property. It is well worth your
while and attention to. find . out ..what
manner and methods the personal prop
erty owners are employing to conceal
their property from assessment, and to
amend the law, if need be, so that such
action can be prevented.
Record of Legislation of 1907.
I am pleased to inform you the railway
commission estimates that shippers and
passengers of this state have been -saved
$6,000,000 as a result of legislation passed
by the last legislature, reducing passen
ger fares to 2 cents a mile; express rates
25 per cent; and freight rates, on grain,
live stock, fruit, lumber and coal, and
other commodities in carload lots, 15 per
cenL
Experience has demonstrated that the
terminal taxation law which was passed
by the last legislature has provided a
more equitable system of taxation, and on
the whole has been beneficial to the tax
payers residing in tiie cities and villages.
The last legislature also passed an act
to control lobbying and to prevent corrupt
practices affecting legislation; abolished
the free pass evil by enacting an anti
pass law; enacted a state-wide primary
law. requiring political parties to nomin
ate their candidates by direct vote of the
people, and gave the railway commission
power to put an end to rebates and dis
criminations in transportation, to make
and to fix rates, and to control them
properly in all particulars. Telephone,
telegraph, express and street railway
companies were also placed under the
control of the railway commission.
That legislature passed a pure food
law and an employes liability act. It
enacted laws providing for neglected chil
dren; provided for free high school privil
eges for normal training In high schools
and assistance for weak school districts;
prohibited pooling by bridge contractors,
and provided a way to remove officers for
willful neglect of duty and failure to en
force laws.
Primary law.
The primary law should not be repealed
but in some particulars should be amend
ed. Provisions should be made for a ro
tated ballot. The precinct -committeemen
should be selected by the voters at the
primaries instead of being appointed by
the county candidates, as now provided.
There, should be a different provision
than that now continued in the law re
garding platform conventions. Now. each
county Is entiled to one delegate. This is
not representative. Another objection is
that the platform convention is not held
until after the primaries. A party plat
form should be promulgated before the
candidates a-e nominated. Provisions
should be male so that the platform con
vention shall be held before the primaries
or the matter of platform-making left to
the candidates nominated by the respec
tive parties.
Sterlization of Delinquents.
Those dependent upon the state have
been Increasing year by year, and more
particularly the insane and convlets. Thi
is a matter for exceedingly serious con
sideration. Society Is justified in adopting such
policies, and in carrying them out against
individuals, as will In the long run tend
to help elevate and perpetuate the hu
man race. Careless and ill-advised mar
riages have had a great deal to do in in
creasing the dependent classes and in
producing untold misery. I therefore
recommend for your earnest consideration
a change In our marriage laws so that it
will be impossible for any man or woman
to marry until a certificate from a physi
cian licensed to practice in this state has
been presented, containing a statement
that their health is good and that they
are capable of producing healthy off
spring. Those who are a burden upon
society should not be permitted to repro
duce themselves.
In oider to prevent the confirmed crim
inal and the incurable insane from pro
ducing offspring I suggest that you give
careful consideration to the necessity of
passing a law providing for the steriliza
tion of that class of people.
Regulation of Liquor Traffic.
In my opinion the time has come for
advanced legislation to better regulate
and control the liquor traffic. At the pres
ent time there Is no political party which
publicly will "stand pat" on the Slocumb
law. The demands of the hour call for
legislation to control and regulate this
traffic in accordance with the present
conditions and needs of the state. Tills
question should not be permitted to drag
along until legislation is enact ed that
will satisfy only the the extremists. In
that event the legislation will probably
be that which a minority rather than a
majority approve. Experience in the en
forcement of the liquor laws demon
strates that it is -difficult to enforce
these laws in any community where pub
lic sentiment is against such action.
The saloon as It now exists is inde
fensible. It breaks our laws, corrupts our
politics, degrades our men and fills our
prisons and asylums.
This question must be met in a practi
cal way. After careful consideration 1
have come to hc conclusion that the pro
per thing to do at this time is to pass a
stale-wide probihition act, making pro
vision so that any municipality may sus
pend such an act by a three-fifths vote,
and in such Instances to have liquor dis
pensed as may be provided by law. This
will put the burden upon those who de
sire of make a profit out of the saloon
business, rather than upon the people of
the state who desire the saloons abol
ished. I therefore recommend that you
pass such an act and that you also sub
mit to the people of this state a consti
tutional amendment embodying such pro
visions. The Anti-Treat Law.
Inthe"early part of my administration
I was requested by numerous petitions to
enforce the anti-treat law. To such I
replied that 1 stood ready to do all in my
power to enforce that law, but that noth
ing could be done unless those who had
knowledge of its violation would them
selves take the Initiative in securing the
evidence, presenting It to the prosecuting
attorney and standing behind the com
plaints. This particular section of the Slocumb
law has become obsolete and is a dead
letter. If it could be enforced it would
be one of the best possible measures to
prevent intemperance that could be pro
posed. Therefore. I recommend that you amend
this particular section, known as Section
31 of the Compiled Statutes, so that the
authorities who grant the saloon licenses
will be compelled to revoke a license
whenever any person dinks liquor In a
saloon that he has not himself paid for.
At this moment the president arose
and asked: "Is anybody here to an
swer to this speech?" The baron
looked sneeringly around. The mem
bers all remained silent. Just then
Barthel Szemere arose. He began:
"Worthy gentlemen, what the orator
said is from beginning to end incor
rect," and then he began to show, in
an able speech, the mistakes the baron
had made.
"Don't you believe him, gentlemen!"
the baron cried, angrily, interrupting
him suddenly, "it. was he bimsslf who
SHALLENBERGEITS FIRST MESSAGE
t c
Urges Passage of Bank Guarantee Law and Makes Other Recom
mendations and Suggestions.
Following Is the principal subjects
touched upon by Governor Shallenber
ger in his first message to the Nebras
ka legislature:
To the senate and house of representa
tives of the thirty-first session of the Ne
braska legislation: I congratulate you
upon being called to serve in your legis
lative capacity at a time when the state
Is enjoying general prosperity. Nature
has been kind and her yield bountiful.
Our people are industrious and tho de
mand and prices for their products satis
factory. Our population is not dense,
probably less than one and one-half mil
lions of people dwell wtth'.n our borders.
A study of the records of our bureau of
statistics will show how marvelous have
been the achievements of these later
years. So rich our soil, so matchless our
climate, so wonderful the industry of our
people that here upon Nebraska soil,
American civilization In its highest devel
opment piles up each year a larger sur
plus of useful products than a like num
ber of people can produce upon any
other spot on earth.
"With a clearness of vision and under
standing as to the purposes and possibili
ties of legislative enactment, a steadfast
and successful people will not expect of
you Impossible things or unreasonable
laws. Having wrung year after year,
great riches from a generous soil, they
now know that they can compel prosper
ity to abide with them always. They will
however, expect of the party, whose
members control this senate and the
house, the specific legislation pledged In
the platform upon which you were
elected.
Governor Sheldon has detailed to you
the result of his administration of state
affairs, and you have listened to his rec
ommendations. I urge that you give
earnest and careful consideration to all
that he has said.
I shall briefly call your attention to
legislation, the prospect and hope of
which, in my opinion, lias brought about
tills change In the control of the execu
tive and legislative departments of state
government. It is first to be noted that
no new or radical legislation is asked for.
Every suggestion is but to amend, cor
rect or Improve some existing Law.
As a general rule, we already have too
many laws Incumbering our statute
books. Many are good, some Imperfect,
a few bad. The good should be let alone,
the imperfections cured, the bad repealed
What is needed, in my judgment, is an
honest and fearless enforcement of the
knvs that we now have, rather than a
constant en' for new laws, and new laws
as an excuse for inaction and delay.
The matters to which I wish to call
your especial attention are not numerous,
but I believe them to be Important.
I shall present them to you under sepa
rate heads.
Suggestions as to Improvements In our
Banking Law.
Andrew Carnegie has said. "America
1ks the worst banking system in the
world." I scarcely think the facts war
rant such a statement, but will venture
the opinion that we have not the best
system that it Is possible for us to obtain
and nothing bat the best should be good
enough for the people of Nebraska. Our
present law is very much in advance in
all that pertains to safe and proper bank
ing to the law which proceeded It. No
one will venture to maintain that the one
now in force, is perfect, therefore, we
are warranted in asking for still further
improvement. The primary purpose for
the establishment of banks so far a3 the
public is concerned, is first that the peo
ple shall have a safe place to deposit
their money, and second that those who
need them may conveniently obtain fund
upon proper security after the money
shall have been gathered together by the
banking corporation.
The ideal system of banking will guar
antee to depositors the absolute certain
ty of the return of every dollar deposit
ed, and this will insure the greatest pos
sible volume of loanable funds In banks
for the needs of business. The state and
nation should see to it that every safe
guard shall be provided for the security
of the depositor since they permit and
authorize the receiving of deposits under
the sanction of a charter granted by the
state.
From time to time, these guaranties
have been increased until losses to de
positors are rare indeed. The report of
the comptroller of the currency for 190S
shows that a tax of one twenty-sixth of
one per cent levied upon the deposits in
national banks -during the forty-five years
that that system lias been in existence
would have raised a sufficient sum so that
no person, who had trusted his money to
a national bank, would have lost a cent
A study of the figures of our own state
banking department shows even a more
satisfactory condition. Only during the
last eight years, has the law provided for
a complete report from receivers of failed
banks. During this period a tax of less
than one-thirtieth of one per cent levied
upon the deposits in our state banks
would have raised a sum sufficient to
have insured every depositor against any
possible loss.
With these facts before us, I do not
hesitate to say that it is a reflection
upon our American civilization and busi
ness methods to longer fail to provide an
Insurance guaranty fund and banking
law, which will make every dollar de
posited? in a Nebraska bank absolutely
sure of being returned to its lawful
owner upon demand. Certain deposits are
now secured in state and national banks
by safe guards in addition to the guar
anties which the law exacts of the bank
er to protect his individual depositor.
The county, the state and the nation hav
ing found by experience that the secur
ities which the law provides for the or
dinary -depositor are at times insufficient
and therefore required tliat the banks
shall at their own expense deposit bonds
as additional security to protect them
against any possibility of loss.
I believe tliat the desired security can
be obtained by levying a light tax upon
the capital stock of each bank transacting
business under our laws, thus providing
a guaranty fund to pay promptly any
possible loss to a depositor by reason of
the failure of a ( H"ntr vh niTit
wrote the speech for me." Everyone
of the 52 members rolled in his seat
nearly convulsed with laughter, and
the baron made a vow never again to
speak in public.
To investigate Cause of Leprosy.
Prof. Ehlers, a Danish authority on
leprosy, has secured the co-operation
of some French workers, and it is pro
posed to organize a scientific expedi
tion into the Danish "West Indies in an
endeavor to determine the part played
by blood-sucking insects in the dis
semination of leprosy.
of such tax to be a certain per cent of
the averago deposits as shown by the re
ports of tho department of banking and
payment to be made at stated periods
and for a' fixed amount.
Our state department of banking has a
complete record for the past eight years
showing tho result of receiverships of in
solvent state banks. This record shows
that since 1900 a total deposit of $515,
264.24 has been placed in jeopardy by
reason of the failure of state banks. From
the assets of these insolvent institutions
depositors claims have been liquidated
until the balance unpaid for the entire
period of eight years is $1DS.255.23 or an
average annual loss of about $26,000.00 to
depositors. Creditable as this showing is,
I feel quite certain that with a number
of improvements which can be made in
our present law, the percentage of loss
can still be materially reduced. The
minimum capital required for the incor
poration of a state bank should be in
creased to at least $15,000.00. Bank ex
aminations should be made twlco a year
instead of once as now required. Ex
aminers should be assigned to a certain
territory and thus eventually would be
come familiar with conditions and secur
ities in that locality and would acquire
the necessary knowledge as to the worth
of the bills receivable of the banks which
they would examine, which Is the essen
tial thing in determining the solvency of
any banking corporation.
Under a guaranty plan which would
make the banks of the state sustain the
losses of the entire system, the bankers
should be given a share in tho control of
the department. The present banking
board, which is composed of three officers
elected for an entirely different purpose,
should bo abolished and a non-partisan
board established to be composed of three
members appointed by the governor each
of its members to have had at least five
years' practical experience in banking and
t least two of them to be actively en
gaged in that business at the time of
their appointment. A bank commissioner
should be appointed by the governor with
the approval of the banking board, who
should have had an experience in the
banking business equivalent to that re
quired of a member of the board, and lie
sl'ould select tho necessary number of
examiners with the approval of the board
of control. The banking board should sit
in session at Lincoln at stated periods
and be paid for the actual time in ses
sion. They should have complete con
trol of the issuance of charters and tho
general administration of the banking
laws. It has been urged by critics of the
guaranty of deposits plan that it would
lead to the establishment of too many
thanks. This would be a serious objec
tion if such were the result. It would
greatly strengthen our banking system if
the banking board were empowered to ex
ercise a proper censorship over the Issu
ance of bank charters.
The possibilities of profit to be made In
taking other people's money on deposit,
loaning it to the public ar.a seeping the
interest thereon is so aluring that at
times the number of banks increase more
rapidly than the needs of busines require
with consequent overloanlng, hazardous
risks, extravagance in buildings and ex
penses with the result tliat in lean years
failures occur and innocent people suf
fer. The ovcrissuanee cf charters can be
in a great measure overcome by increased
requirements as to the amount of capital
stock necessary to be paid in by the
stock holders before a charter shall Is
sue. The amount required in each in
stance should bear a proper proportion to
the population of the town or city in
which the bank Is to be established. As
an example; showing the manner in
which requirements as to capital affect
the number of bank charters issued, 3.942
national banks have been organized since
1500 when the requirements or capital
stock was reduced to $23,000.00 as the
minimum. This is 3S2 more banks than
the entire number in existence, when the
law was changed In that respect. The re
duction of the minimum capital slock re
quirement to 25.000.00 has doubled the
number of national banks In eight years.
A substantial increase in the amount re
quired as a minimum capital for the es
tablishment of state banks would have
a salutuary effect in keeping the number
of banks within a satisfactory limit and
also provide greater security to the de
positors. As to the amount of assessment to be
levied in order to provide an adequate
fund for the prompt payment of deposit
ors of insolvent banks. I would suggest
that one-fourth of one per cent be levied
upon the deposits as shown at the last
statement published prior to the com
mencement of the operation of tho law,
and this assessment to be followed with
additional levies in like amount at periods
of six. twelve, and eighteen months
thereafter. After the accumulation of a
guaranty fund equal to one per cent of
the average deposits in the guaranteed
banks, an annual tax of one-tenth of one
per cent should b levied, because It is
necessary under a proper system of insur
ance that the prosperous years should
pile up a surplus fund to provide for the
inevitable demands of less fortunate
times. As an additional security against
any possible emergency-, such as extra
ordinary -demands upon the fund the
board should bo empowered to levy an
assessment of not to exceed two per
cent of the average deposits in any one
year. While this assessment might never
be levied, the power to- use it would have
a sustaining effect in times of possible
panics. Such provisions would result in
accumulating in eighteen months with
the average of deposits remaining in state
banks as at present a guaranty fund of
$642,351.00. This would be $127,097.00
more than the entire amount of depoosits
Involved in bank failures in this state
in the last nine years. It is three time:
the amount that would have been neces
sary to have paid upon demand all the
money due depositors in failed banks dur
ing the years with the heaviest failures
of any in the past decade. It is seven
times as much as would have been re
quired to pay immediately all of the de
posits tied up in state banks during any
one of the last seven years. With the
additional amount that would be contri
mio.1 to such a guarantv fund d"rlmr tb-
Contagious Diseases.
A contagious disease is one in which
the disease-producing organism goes
direct from the person having the dis
ease to a person who has not the dis
ease without passing through an inter
mediary medium, as in tuberculosis
for example. Malaria, on the other t
hand, is an infectious disease, be
cause the organism which produces it
is taken from a person by a mosquito,
reproduces itself in the mosquito and
is transmitted by the mosquito which
may r.ever have been la contact with
years when no failures would occur and
added to this 'the power to raise in any
one 'year by extraordinary assessment six
times as much as has been placed in
Jeopardy during the worst year that we
have experienced since the present law
was established. . It is my Judgment that
such a system would be a rock of refuge
for tho banks and for the people in tho
fiercest financial storms that may come.
I desire at this time to congratulate and
commend tho management of our pres
ent banking department for the splendid
results it has secured under the present
law. It is the showing of exceedingly
small losses sustained under our present
management and system which gives us
confidence to believe that with improve
ments in our laws as to capitalization,
management and control a still better
showing can be accomplished. Tho pro
posed guaranty fund under such a sys
tem as has been suggested should be de
posited with the state banks under regu
lations similar to our present state de
pository law or with such additional se
curity as the legislature may require. The
proposed law should provide that na
tional banks may avail themselves of the
advantages and protection of the guar
anty fund under suitable provisions and
satisfactory showing as to the condition
of such banks to the banking board.
Tho banking board should be empow
ered to fix the rate of interest to be
paid depositors by banking corporations
operating under the guaranty of deposits
law. or if this be thought too great a
power to confer upon them, the rat
should be fixed in the statute by- tho
legislature.
Revend t-vfc
Our present revenue law should be
amended in bo far as is neowMury to re
store "to the people the right to efect the
precinct assessors and to limit in arl
at least the arbitrary powers which t&
present law gives to the state board
equalization and assessment, so that the
people shall have restored to them some
voice In determining the amount of
taxes they shall be compelled to pay to
support the stato government. It appears
to mo too great a gift of power to give
to the state and conuty boards the right
to determine the amount of the levy
which shall be laid upon the property of
the citizen and at the same time empower
the state board to determine through its
mandates to the county assesors and his
deputies the valuation that shall be
placed upon the property of the tax pay
ers. When we consider that the members
of this all powerful board of assessment
acting in their official capacity as the
heads of different stato departments are
authorized to spend the money taken
from tho pockets of the people by the
force of this same revenue law, the dan
ger lurking in this excess of power be
comes more apparent. It is to be re
marked that different state departments
have commended the present law because
it provides much money for their use. It
Is generally to be noted that those who
pay out money which others must pay
in, view the magnitude of the amount to
be expended with greater equanmlty than
those who have to provide It. The cost
of our state government has increased
enormously in recent years. I wish to
impress upon you that funds should be
provided to meet every legitimate demand
of the government, our different state in
stitutions and our school, but every dol
lar that comes out of the treasury must
have been paid in by some tax payer
and the great bulk of the state's income
is dug out of the soil by the unremitting
toil of those who can ill afford to pay
for extravangance or unnecessary ex
pense. The Primary Law.
Our present primary law Is unsatisfac
tory and unfair in many of its provisions.
The expense to the state In holding a
state wide primary Is enormous. ad un
less the election results in registering
the will of the party majority of those
voting and placing better candidates be
fore the people than the convention meth
od, the benefits of the law cannot be said
t'i warrant its cost. Under the present
law, the accidental alphabetical position
of the candidates named upon the ballot
is at times more potent In obtaining nom
inations than merit or ability. The num
ber of names required upon the petition
of a candidate for a state office, is gross
ly Insufficient. The cost of elections
both to the candidates and the state is
greatly Increased. It Is doubtful If the
average elector will ever have the re
quired acquaintance with tho long list of
candidates for the different offices upon
the ballot in a state wide primary to in
sure intelligent selection. I would sug
gest to you a county primary to nominate
county officers and delegates to a state
convention. The state convention to se
lect two or more names for each office
to go upon the primary ballot and to
make the party platform, which ought to
b- issued in advance of the primary, in
stead of subsequent to it, as at presenL
Administration of State Institutions.
I would suggest that the constitution
be so amended that a non-partisan board
of control could be created to be ap
pointed by the governor and have con
ferred upon It the entire management of
our various state institutions. The state
institutions should be removed from pol
itics as far as may be done and merit
alone should determine the right of ay
person to serve the state in the dif
ferent departments made subject to the
board of control. This board, in my opin
ion, should consist of three members and
have at its command the state account
and a qualified purchasing or business
agent, who should have a general knowl
edge as to machinery, material and con
struction contracts and of all matters of
business coming before the board. This
board of control should purchase the
supplies for nil the state Institutions by
open competition among those desiring
sell to the state. The practice of main
taining a cash fund at the various state
institutions should be abolished and the
business of the state so far as it applies
to the general conduct and administration
of the different state institutions should
be thoroughly systematized.
It is my most confident belief
that if you provide satisfactory legisla
tion relating to the question to which 1
have referred, you can go home with the
certainty that you will meet a satisfied
constituency. With a firm reliance upon
the wisdom and judgment of this legisla
ture and hope that with your assistance,
we may together in some fair measure
fulfill the hopes and meet the expecta
tions of the citizens of Nebraska, who
have trusted us with power, I submit
these questions to you, gentlemen of th
the person by whom the original or
ganism was given off.
Honor Conferred on American.
Rev. Dr. John H. DeForest, a veter
an Congregational missionary at Sen
day, Japan, has been decorated by the
imperial government with the Order
of the Rising Sun. the distinction hav
ing been conferred in recognition of
his services in dispelling anti-misconceptions
among Americans. Dr. De
Forest has been doing mission work in
Japan for 35 years.
PATIENT SUFFERING.
Many. Women Think They
Doomed to Backache
Ar
It 18 not right for women to be al
ways ailing with backache, urinary
ills, headache and other
symptoms of kidney
disease. There is a-way
to end these troubles
quickly. Mrs. John H.
Wrght, 606. East First
St., Mitchell, S. DL,
says: "I suffered- ten
years with kidney com
plaint and- a" doctor told me I would
never get more than temporary relief.
A dragging pain and lameness in my
back almost disabled me: Dizzy spells
came and went and the kidney secre
tions were irregular. Doan's Kidney
Pills rid me of these troubles and I
feel better than for years past",,
Sold by all dealers. 50c a box. Pos-tor-Milburn
Co., Buffalo, N. Y.
ACCOMMODATING.
Doctor (to man who has fallen)
You need a strong punch of some kind.
Mr. Flynn (an old enemy) Let me
give it to him, doc!
DREADFUL DANDRUFF.! " '
Girl's Head Encrusted Feared Loss
of All Her Hair Baby Had Milk
Crust Missionary's Wife Made
Two Perfect Cures by Cuticura.")
"For several years my husband
was a missionary in the Southwest.
Every one in that high and dry at
mosphere has more or less trouble
with dandruff and my daughter's scalp
became so encrusted with it that I
was alarmed for fear she would lose
all her hair. After trying various rem
edies, in desperation I bought a cake
of Cuticura Soap and a box of Cutl
cura Ointment. They left the scalp
beautifully clean and free from
dandruff, and I am happy to say that
the Cuticura Remedies were a com
plete success. I have also used suc
cessfully the Cuticura Remedies for
so-called 'milk-crust on baby'3 head.
Cuticura is a blessing. Mrs. J. A.
Darling, 310 Fifth St., Carthage, Ohio.
Jan. 20, 1908."
Potter Drug Chcm. Corp., So!o Props., Boston.
Opposed to Toll Roads.
Maryland, following the recent lead
of Pennsylvania, is moving to abolish,
toll roads. Gov. Crothers has ex
pressed the hope that before his term
Is ended every tollgate in the stato
will be abolished and every road free.
He believes that the work of the good
roads commission will ultimately re
sult in wiping out the gates. "The toll
gate," says the governor, "is not of
this age and has no proper place in
this time. It is ridiculous to think of
charging people -money for coming to
your city."
BREAKS A COLD PROMPTLY
The following formula is a never
failing remedy for colds:
One ounce of Compound Syrup of
Sarsapariila, one ounce Toris Com
pound and one-half pint of good
whiskey, mix and shake thoroughly
each time and use in doses of a table
spoonful every four hours.
This if followed! up will cure an
acute cold in 2d hours. The ingre
dients can be gotten at any drug store-
Valuable Conch Shells.
The conch shell is highly prized In
India. In many of the temples they
are blown daily to scare away the ma
lignant spirits while the god receives
his daily meal. A conch with the
spiral twistings to the right instead of
to the left is supposed to be worth
Its weight in gold. Some years ago a
couch of that description was offered
for sale in Calcutta, with a reserve
price of a lakh of rupees placed on it.
ft was eventually bought in for $20,000.
The Disturbing Telephone.
"The telephone has destroyed all the
privacy of society," said the society
girl. "It breaks in on everything.
Nothing is sacred to it. You may bo
saying your prayers. The telephone.
Or in the midst of your bath. The tele
phone. Or doing up your back hair,
or, worst of all, a delightful man may
be making love to you, when k-ling.
k-ling, k-Iing! The telephone breaks
off the thread of his theme and he
fails to resume it."
Rather Hard.
The messenger entered the palace
with the dispatches.
"Brimstone and asphalt!" ejaculated
Castro, as he read the yellow slip.
"Holland threatens to spank us."
"Well, what of it, your excellency?
responded the secretary. "Other na
tions have threatened to do the same."
"Yes, but, confound It, this is a
spanking that will hurt. The Dutch
wear wooden shoes."
ROSY AND PLUMP
Good Health from Right Food.
"It's not a new food to me,"
re-
marked a Va. man, in speaking
of
Grape-Nuts.
"About twelve months ago my wife
was in very bad health, could not keep
anything on her stomach. The Doctor
recommended milk half water but it
was not sufficiently nourishing.
"A friend of mine told me one day
to try Grape-Nuts and cream. The re
sult was really marvelous. My wife
soon regained her usual strength and
to-day is as rosy and plump &3 when
a girl of sixteen.
"These are plain facts and nothing
I could say in praise of Grape-Nuts
would exaggerate in the least the
value of this great food."
Name given by Postum Co., Battle
Creek, Mich. Read "The Road to Well-
ville," in pkgs. "There's a Reason."
Ever rend the xiliove letterf A new
one appenrti from time io time. They
nre scenulnr, true, and full o haiam
latere t.
g.T
A
