n TTIH OarATTA DAILY DAY , JANUARY 8 , 1807. ( Continued from First 1'ngc. ) JntcrcitH ot tlio nlato as we at present find them , Tne v ry general depression In bu.il- j-MM nn'l the low prlrcs received for tlio products produced by the people of our mate arc of thcTiselvcs snindent to render tlio ntnto's finances much moro unmilsfnctory tlmn might bo expected under normal con ditions. ThU Ins prevented the prompt collection of taxes duo Iho rtato and re quited In order to meet Its ncccfiwry ex- pcdllurea , BO that at the present lime It appears tharo Li a very largo amount of delinquent state taxes. In addition to this the method ot handling the flnnti < * cs of the state and meeting Its ohllgallnna could , In my judgment , to very much Improved upnn. Not only Is It com mendable to Beciiro the prrimpi collection of taxes Jevlcd for the purpose ot meeting current expenditures , but also the prompt payment of the taxes thus collected In satisfaction of the state's obligations , ( lood business judgment would dictate the prompt discharge of the stale's outstanding obliga tions as rapidly as money may be accumu lated by the ordinary method of collecting taxes to meet the name. From the report of the state treasurer n trlef summary discloses the following aa to the slate's obligations : Honda outstanding , lisuoil In funding the state's Indebtedness nt the time of tin : ndoptlon ot . , . _ . . the prcBcnt constitution $ ll3,2Gi.rw DondH Irnueil under the present constitution In 1S91 , nnd yet out- Htnnillng , General fund warrant * otitstniul- Total K.I02.33rt.CS To meet thcso obligations wo have the following credits : Sinking fund lo mcel bonds first iibovo mentioned . . . . . * 3lisio.oi Sinking fund to rncnt bonds hint nlxivo mentioned J-MJ TJncollcctcd Inxcs duo lo Iho gen- . _ . „ crnl fund i 2.330CS2.iU Cnsh In the treasury , general fund Bs9a70.R ) Total S12A1227.&S In addition to the liabilities already In curred , nnd of which mention has hereto fore been made , there Is also the additional liability for current expenditures yet to bo made for tbo remainder of the biennial period for which the last legislature made appropriations , and which can'bo approxi mated by ane-f-rtalnlnff the tolal unexpended balances as ahowri by the report of the stale nudllor. These will have lo bo met from the uncolleeted laxcs above mentioned. I2XCESSIVK APPROPRIATIONS. In considering trie uncolleeled taxes It Is to bo berne In mind that n very consider able part will probably never bo paid Into the state troM-ury. Whllo these conditions nro not what we would like to have them , and realizing that they have boeiv brought about by e.\travagance and needless expendi tures nnd by cxcroslvo appropriations cov ering n series of years , it Is yet qulto ap parent that Iho Indebtedness of Iho slate of Nubriflk.i comparatively light. H Is no greater than tl.at of many other stales whoso opportunities for creating a largo bonded Indebtedness nro not restricted by the fun damental law an ours. It Is Interesting In thlls connection lo study thn grand assess ment roll ot the property of the state re turned for taxation , showing Iho total ns- flefued value thereof , for several years , as follows : 1KDO J1SI.770.MI.KI 1SH1 lSn,1.T > ,2r.28 : ! 1S92 1M.4.12R7G ! 71 1SI.T ! 191,733.1:1.73 U'JI lSn,717 , S.7S m"i i"i.irs,2n7.4s ISM 1S7.07S.270.37 The census of 1SDO discloses Ihal Iho value of the property of the citizens of Ibis slale is rsMmatcd lo bo $1,276,685,511 , and the actual value ot Iho assessable properly In tlio stnto nt tins time must no cotisiucramy more , artl yet , aa shown by the assessed valuation of all tnxablc properly for the year ISJfi the valuation Is placed nt but llttlo over one-eighth of the .actual value basnd on the census returns of J8SO. The largo amount accumulated In the gen eral funil mentioned above , ? j39.70.39 , Is one of the fcalurco oeemlnnly calling for some comment. It la difficult to understand why thLi large Hum should bo allowed to ac cumulate. In the state treasury wllh so great an nmnutit of outstanding warrants unuatls- flcd. It would naturally bo expected that mich a considerable sum afl this cihould have been applied lo Ihe reduction of the ( Uuto'n indebtpdiiPFi as rapidly im It accumulated , as la provided by law , and demanded In thn ex ercise nt.prudent business management In the discharge of a public duty. In defining the ilutlco of the slate treasurer thd law provides that ho is "to illnbur o the public 4noney upon warrants drawn upon the state treasury according to law nnd not other wise. " It Is also provided In fiectlon 1 of chapter 93 that "nil warrants upon the Ntale shall bo paid lu the order of their presentation therefor. " Section 4 provides that "It Hhall be the duty of every Ircasurcr to put aside In a separate and RcalcM package the money for the payment of each registered warrant , In the order ot Its registration. An Boon ns money sufficient for tlio payment of such warrant la received to the credit of the particular fund upon which the uamo Is drawn such package nhall bo endorsed with the number and dc crlptlon of such war rant and the name and address of Iho per son Invhl20 name the same Is registered , and Interest upon such warrant nhall thereupon ccane , and such Ircasurer shall by mall Im mediately notify the person In whoso name the nntno Is registered nnd shall endorse the date of Hie mailing of such notice upon such coaled jxickage. " AIM TO PllEVBNT ACCUMULATION. Thus It will be observed that It was the Intention of the legislature that no fund ehould bo allowed to accumulate when there were outstanding wnrrnuts drawn ngnlnsl , finch fun. ] , and that nn rfion as sufllck-nt money should bo paid Into the stute treasury to satlkfy cauli warrant In the order of Hn registration that Interest thereon should cease and the stale be Ihus relieved from further llnblllly on account of accruing In- terrut. While It may bo said that n lllernl compliance with the provisions above men tioned would' bo vary dlllicult because of the Kre.it volume of uti-slnetiv carried on In con nection with Iho work of the Htnto trean- tiry. yet Us spirit could be fully compiled wjtb by making prompt payments on gen- crnl fund warrants as rapidly na funds ac cumulated In the state treasury therefor. This act of Ihn Ipsuintnro. both In letter and spirit ; serins to have been entirely Ig nored , and the general fund , ngalnst which n Inrg6 amount of outstanding warranls has always existed , allowed to accumulate to the extraordinary amount of over $500,000. This method of disposing of the state's busi ness puts an additional burden upon the tux- payers by the accumulation of n large amount of Interest on the unredeemed war rants lliUs neglected. It also endangers the atato's Inlercsts through Ihe povttlbillly of losses of money which could properly have been disbursed In cancelling this In debtedness as rapidly as posjlblc. The suggestion that the state ! receiving Interest on the money thus allowed to accumulate In this uiiUHtial manner may properly bo met with the statement Hun such Interest Is only nt the rate of 3 per cent per annum , while ilio state's warrants nre- drawing 5 per cc-nt. U may further bo suld that It is the duty of Ilio state , through its representa tives , to liquidate llu IndubtoJneeB nn rapIdly - Idly ns funds accumulate In thu collection of revenues for that purpose , nnd thereby enhancing the vnluo of 1U own obllgallons , likewise , to the suegcutlun that It has been a critical period for the banks of the state , us v.-oll as for hurlncss Interests of all kinds , U can bo replied that the ntato Is under no obligations , nnd that , In fact. It Is a per nicious doctrine to hold that the public rev- en lies may bo used for the purpose of strengthening nny prly.ito Interests or en- ten > rlsrs of any character , and imperially no whcro there are superior claims against such funds upon the part of creditors of the stat ? . The state Is not supposed to use Its revo- enues for the purpose of entering Into the banking business or to deposit Us funds upon any other theory than that they are to bo urtd by the depository only when not required by the state In Iho ordinary course of Its business. It Is to be further ob served that this fund at one tlmo was within reasonable limits , not exceeding , according to the report of the state treasurer , on January 1 last , the sum of $52- 735.91. Under no piocess ot reasonIng - Ing can I understand why this further and larger sum should be deposited and al lowed to accumulate to the enormous amount mentioned with obligations of the state pressing for payment and the value of Its obligations constantly depreciating , and then , after such large accumulations are permitted , to have the matter explained by the suggestion that these funds could not. with safety to the business Interests of the otate. bo withdrawn from the dc- poallorlcw. RADICAL CHANOR NKEDCD. I am of the opinion that there should be a very radical change Inaugurated In the conduct of the llnanelat Interests of the state and prompt measures taken to place the Htate'H financed upon a solid footing , as much so at least us surrounding condi tions will permit. The accumulated general fund should be promptly applied to the ex tinguishment of the Indebtedness against It. Whether there are legal obstacles which would prevent your refunding the Indebted ness above mentioned contracted prior to the adoption of the present constitution , I nm unable to speak advisedly. If It could be done. I would suggest the advisability of refunding all the bonded Indebtedness of the state at a rate of Interest not exceed ing I per cent per nnnum. The Issue of such bonds would make a very desirable Invest ment for the Idle permanent school fund. This would permit the transfer of the sink ing fund accumulated nnd created for the extinguishment of this bonded Indebtedness to the general fund. In addition to this you will have the power , so I view It to author ize the Issuance of bonds In the sum of $100,000 , to meet a part ot this Indebtedness. Provisions of this character would reduce the amount of outstanding warrants very materially and placa the state In a much better condition. There are a number of other funds of smaller amounts which perhaps can be utilized In bringing the state nearer A cash basis In the transaction of Its business. I trust that after a full consideration of thla Important matter you may be able , by the adoption of some plan , to make satisfactory arrangements for promptly meeting nil of the state'a Indebtedness , both bonded and floating. IN TIII : unvnxin ; LAWS. Knll lo Mc-i-t Stnfp Uoiiulrrnu'iitx null I'rmliic'cIIni > < | iinl HiirilniH. It seems Imperative that some action should be taken by the legislature providing for a better method ot levying and collecting the rovenuua ncecasary for the proper con duct of the governmental affairs of the state. The imperfections and laxity of the pro visions of the present law for levying and collecting taxes to meet current expenditures and the tlll greater laxity In enforcing these Imperfect provisions of law have brought us face lo face with a condition o. ' affairs that renders It Impossible to conduct the buslncw ot the state without much embarrassment , nrcdlesj sacrifices r.nd ever-lncrerslng floating Indebtedness. Any wise financial policy re quires. In my opinion , the collection of revenues sufficient to promptly meet ex penditures noccsrary to bo made In the con duct of the state's business. Any other plan ultimately worlcs Increased hardships and renders excessive the expenses of atate gov ernment , because of the uncertainty respect ing the satisfaction ot the obligations created. The very fact that property Is assessed at so much less than Its true value renders It very probable that great Inequality exists In distributing the burdena of taxation. The man of moderate means Is doubtless aa- pejweM for much nearer the true value of 'his ' property than the Individual having largo Interests , and , while the approximate per- iCentage of the ifsesssed valuation , as com pared with the actual valuation of property , 1-3 but llttln less than one-eighth , it Is more than probable that the taxpayer with small means and whoso property Is easily ascer tained pays on much nearer one-third of Its value , while other largo property Interests escape with an assessed valuation at nearer one-tenth or one-twelfth of the actual value. It appears to me there are two principal objects to bo secured In obtaining public revenues In support of government. The first Is that property of every description , except that which Is especially exempted by law , shall be stibjeql to the same burden of- tax ation according to Its value and this rule should be Invoked with absolute uniformity and with ample provisions to prevent any assessable property from escaping taxation. Second , these burdens should only exist to the extent necessary to support the govern ment , administered with honesty and rigid economy. When these two objects have been accomplished , in whatever manner It may bt > deemed best , there la no Just reason for complaint upon the part of any. Our law provides that personal property ehall bo assessed at Its fair cash value , and real estate , other than leasehold estates , "at Us fair value , estimated at the prlco It would bring at a voluntary sale * * ono-thlrd cash and balance secured by mort gage upon the property. " This , as everyone ono knows , is not done , but , on the contrary , tlio less the value placed on the property for assessment purposes by the officer having In charge this branch of the business , sooius to render him much more popular than If ho had performed his full duty and assessed the properly as the law provides. Just how far this state of affairs can be remedied and what provislona. It any , shall bo made looking toward n moro stringent enforcement of the law as now existing is for you to determine. If property ut as- aesscd at too low a valuation Iho rale of the tax .lovy is correspondingly Increased. The system cf low valuation and high levies crcateH an urronenua Impifsslun in the minds of many regarding the property values and the seemingly heavy burden of taxation In the state. CONTEST OP ASSESSORS. An assessment upon property at 'Us fair valuation Would render tax levies exceedingly small , as well as give less opportunity for undervaluation , because of the fixed nnd certain standard obtaining , the ono and only question bslng" whether the property has been assessed at a fair value. It Is doubt less truu that a constant and cnntlnuocl de crease In assessment values has been caused In order that one community or county might not bo compelled to contribute more1 than its just proportion to Uio stctu's rov- enuts. Thus a constant struggle Is con tinually going on among assessing nfllrers to value their property as low or lower than the valuation place < t by any others , it Is alsti qulto apparent th.it the low assessment of property Is eomo protection to the people In order to prevent extravagance In the con duct of the business cf dlsbui-dlng the pub lic revenues. With n low assessment ami lliirlta as to the rate ot the levy thu people have some protection against wanton cx travaganco by these who are charged with the duties ot managing the people's business In different capacities , whore the disburse ment of revenues forms an Important part of their duty. lu Investigating lhl sub ject I have secured u great deal of valuable Information from other Hiatus which J will take pleasure in placing at the disposal of this body or nny committee which you may select to consider this Important tubjoct. I also , In thla connection , deMre lo call your attention to the provislona of law re specting the method of levying and equaliz ing the value of property assessed for the purpose of raising revenue * ) for atatu ex penditures. The law provlde-a that | ho governor - ornor , state auditor of public accounts and treasurer " hall cnustltuto tinHtnto Hoard of Equalization. And It shall bo the duty ot said board to examine the various county aimsflinentB , and to dccldu upon the rate of the elate tax , the state school tax , the etato sinking fund tax , to bo levied for the current year , together wltn any other general or special taxes required by law to bo levied , and to r-cjuailzu and make the levy ot such taxes throughout the ututo ; but fluch equalization shall bo made by vary ing thu rate of taxation on the different counties In case the said Hoard of .Equaliza tion Is satisfied that the scale of valua tion has not been adjusted with reasonably uniformity by the different , astcoaors. " U further provide * that "tho rate of the general state tax shall bo sufficient to realize tbu tunomit ui'cctaary to moot appropria tion * madeby thu legislature , uot exceeding I T mills on the dollar valuation , Tlio rate of , the state school tax shall not be lens than ) Vt mill , nor more * than 1H mills on the j dollar valuation and the rate of the state sinking fund tat flhall not bo moro than 9i of n mill on the dollar valuation In any I county In the slate , " It will thus bo ob served that this board , as a Hoard of Equali zation , shall equalize taxes by varying tht rate of taxation on the different counties In case Inequalities appear to exist In the valuation of property as returned by sucl counties , uy the limitation of statute pre venting a levy of the general fund state tax to exceed r > inlll.t on tlio dollar valuation It has been found necessary by the Hoard o Equalization , lu order to meet the appro priation. ! made by the legislature , to lovj lo the full limit allowed by law. Even then the revenues raised for a scries of years past have been Insufficient. U will thus be 'seen that the board has found Itself tillable to equalize taxes by varying the rate of the general fund levy and that the equalization of the valuation of property In different counties has been restricted to the varia tions permitted In the levy ot the state school taxes , which shall not be less than % mill nor nioro than US mills , and the sinking fund taxes , which shall not bo more than ? J of a mill. The marc Ins thus al lowed for equalizing these toxtM mo entirely Inadequate , and If this method of equaliza tion shall obtain In the future , I urgently recommend that greater latitude shall bo given the board by amending this section of the ( Statute so as to Increase the levy for general purpcecs from 2 to 4 mills on the dollar valuation. This would give a much betler opporlunlty ot equalizing the burdens of taxation by varying the levy In different counties as the different valuations may re quire , and yet enable the board to collect the necessary revenues mid meet the ap propriations made by the legislature. i I'noi.ns TIIH mTPosmmv i\w FinillN In It * AmilliMitliiii ItatlK-r Tlinii ItH rrllu-Iplc. The depository Jaw , enacted by the legislature of 1S91 , has now been In opera tion for a period of tlmo sulllclent under ordinary circumstances and normal con ditions to test Its usefulness and advantages or dl&rdvautages as the case may be. The wisdom and desirability of such a law has been questioned by many , Including those who benefited by the operation of the previous law , permitting the state treasurer to use all funds of the state under his con trol for private gain and speculative purposes during nil term of office. I have been a warm supporter of the depository law and believe in the'wisdom of Its enactment. It adds a new source of revenue to the state and removes the temptation to use public funds for any other purpose than that for which they were collected. The law Itself could bo considerably strengthened and I recommend for your consideration the advisability of amending It so as to remedy imperfections which now exist. It is to be remembered thai Us operation has been during a period when the loss of money , both private and public , has been very general throughout the entire country. I can FCC no good reason why , If the treasurer himself must glvo a good obligation for the return of funds placed In his hands for safekeeping , that the pamo may not reasonably be re quired of the different ilopcaltorlcs. Thus Is obtained a divide * ! responsibility and an aggregate security that Is far betler than a simple obligation for the return of the entire sum. The obligation of each depository should be as strong lu porportlon to the amount of money secured as can pcuslbly be had for the entire sum. I am of the opinion that the law has been abused ; that It has been used as a means of assisting banking Interests which may have been In need of current funds for the transaction of business , when the true rule should have been to have made depositories of banking Institutions of unquestionable standing and of unquestionable security , with the object In view of having the funds at all times subject to the call of the state treasurer In the ordinary course of his buslneM. I would recommend the amendment of the law so as to provide that sureties of state depositories should bs others than those actively engaged In the management of the depository bank ; that a depository bond should not entitle the bank to a deposit of state money thereunder for a longer period than two years ; that the state offlccri ) approving the bond should have Iho right at any lime they deem necessary to puspcnd. as a depository , any banking Institution , and to direct the state treasurer to withdraw all stale funds therefrom ; that the atatc treasurer. In the depositing of state money , should at all times be under the control of tfio board approving the bond res-pcctlng the amount deposited In any one bank , and that the sureties on all depository bonds shall Justify by making oath to the value cf their property over and above their dcbto and exemptions. The general government has found it dei'lrablo to designate banking In stitutions as depositories fcr fundo which would otherwise accumulate In the United States treasury , and I can sea no good reason why this , 'amc rule should not obtain In the different stales , such deposllorles be ing made not only the means for the con venient and expeditious transaction of the str.to's business , but also a source of income - como to the stale. MTICATIOX OV131I THU HIII. IIOXI1. N Knc-ln but MnUfH No HriMim- iiiriulntloii In the .lint I IT. At the beginning of my term of office a suit was pending In the supreme court to recover the sum of ? 23G,000 from ex-Treas urer J. E. Hill and his bondsmen ) . The history of this litigation is familiar to all of you. The money was lost In the failure of the Capital National bank. That this amount of the state's money was In existence at the tlmo of the settlement of Treasurer Dartloy with his predecessor , Hill. no person acquainted with the circumstances could bc- llcvo for a moment. The money had evi dently been lost and no attempt , made to account for U at the expiration of Mr. Hill's term of office , except by a transfer of credits on paper In this bank , a bond being prepared and approved making the bank a state depository and this mythical credit being placed to the credit of the stale under the depository bond. The first trial of the case In the supreme court resulted In a disagreement of the jury , The case was again tried and the Jury found for the defendant. The matter was then argued to the auprcmu court at length upon questions of law , when It was finally decided In favor of the defendant. I am not entirely familiar with the details nnd intricate nicandcrlngs of all the ques tions of law and fact involved In this Impor tant case. I do not doubt In the least but that this money has been lest as a result of mismanagement by these having been intrusted with its collection and disburse ment. And it would seem that the respon sibility which certainly exists should be located so that the people might regain what has been unlawfully taken from them. It Is to bo regretted that persons guilty of gross mUcomluct and misappropriation of funds belonging to the people of tlio state are suffered to escape legal responsibility. Whether any further effort should bo made to recover this money lost to the taxpayers of thu state , I leave It to you to determine. The legislature made au appropriation for the expense of carrying .on this and other aults. There , remained , after the trial of the first cane , the sum of $8,709.19. Upon an opinion from the court , and after conference with the attorneys representing the state. In order to prevent this appropriation froni lapsing , n warrant was Issued to 1110 for the balance by tlio state auditor upon a properly certified voucher presented to him for that purpose. The warrants thus drawn wevo disposed of by mo from tlmo to tlmo In order to meet the further expenditures required In this caso. After paying all legitimate claims ( hero was covered Into the state treasury the sum of JUG7.15 yet remaining unexpended of the appropria tion. An Itemized statement of the ox- pondlluirs In this case Is presented with this message. _ _ _ _ _ _ IXVHSTJII-JXT Ol > ' TIIU SCIIOOI * FU.VI ) . About n Half Million DollnrM \ < m I.ylni ? I ill is The constitution and the atatutes require that the Hoard of Educational Lands and Fonda , consisting of the governor , attorney general , treasurer , secretary of state and commissioner of public lands and buildings , shall at ita regular meeting make necessary orders for the Investment of the permanent pchool fupclo , but that none of theao funds fthall be Invested or loaned except on United Stuttti or state securities or registered county bomb : At the beginning of the prctjont biennial perloft , ttccomber 1 , 1S9I , there wcro on hand of ' ' tlkne funds the following amounts , to-Wit:1' : Permanent t'cTlitfBl . $117.0.17.61 Permanent ufilM-iWy . 19.MS.B3 Agricultural ' ndtiwmcnt , , . fil.O.'R l.'i Making the sMm tolnl of . rtfS.&SS.Il Three several 'funds ' , by n decision of the supreme court , do not como within the pro visions of tlio depository law , and wcro therefore under -the control and disposition of the state trc.irtircr when not Invested cs above provMcdanil when Idle and uninvested wcro of no 'benefit ' to those who should derive advaul.igonfrom the Interest In cose of an Investment , , In Interest-bearing secur ities , as contemplated. During the last hi cnnlal iicrlodml. . few county bonds hav been Issued and .these wcro chiefly refund Ing bonds to take up other outstanding In debtcduciTS. Hcnco It has been cxtremel } difficult to secure for the slate enough o county bonds lo ataorb the accumulation o these different funds , to eay nothing of ttu largo amount on baud at tlio beginning o the biennial period. During the year ISO the Hoard of Educational Lands and Kundj obtained only the sum of JlO.OOt ) , being Otoe county refunding bonds , bearing Interest a the rate of 4 ' ,4 per cent. Thcso bonds were obtained at par. During this time a larg amount of state warrants , drawing fi pc cent IntcrcPt , were being issued from tlm to time. I regarded thtae warrants as de- slrablo Invcslmcnts for thcso Irust funds Inasmuch cs it would provide n ready means for the- Investment of the entire sum strengthen the ci-edlt of the state and brlnf , Its warrants , which were below par , to pa value , and , In effect , put tbo state on a casl In a decision of the supreme court , con curred In by all of the Judges and found In the Twenty-fifth Nebraska , at page CCO , 1 was decided that state warrants wcro slate securities within thi < meaning of the constl tutlonal provision referred to. In nddltloi to this a precedent had been established bj the purchase of these warrants under tht- adm'Inlslratton of my predecessor. Governor Crounse. The supreme court also , in amore moro recent case , referred to the first de cision above quoted In the following afllnna tory language : "Wo must not , however bo understood as holding that warrants against the general fund are not state se curities within the meaning of the constllu tlon. Although that question la not pre sented by thlft record , following In re State Warrants , 25 , Nebraska , fi59 , and Slati ag lns Hartley , supra , wo nssiima them to bo Icglll- male investments for the permanent schoo fund ; but If the stale , as trustee for oald fund , desires to Invest In that class ot se curities It Is required to do so on Icrms o equality with other -Investors. " OVBRUULED SUPREME COURT. Assuming , therefore , that warrants of this character wcro a legitimate Investment for this largo fund , and as they were In overj other respect a very desirable form of In vestment , I Introduced \ resolution before the Hoard of Educational Lauds and Funds at a regular meeting In January , providing for 'Investment of $300.000 of this Idle fuiu in warrants already issued and these there after to bo Issued. Some doubt was ex pressed by some of the ether members of tha board respecting Iho legality of nn Invest ment of this kind , and , al their request , the resolution was referred to the attorney gen eral for an opinion , which was finally ren dered nt a regular meeting In April following This or.'lnlon was , In offccl , adverse to the decisions of thq fuprcmo court cited ajjove as well as to , the precedent establishes ; during the administration of Governor Crounse. The attorney general held thai state warrants were not atato securities and were not a legitimate Investment under the provisions of the constitution. The opinion was concurred In by a majority of Iho board , thus cuttlnn pK ciyei-y avenue for n speedy and profitable .Investment of thh fund. Another resolution was then Introduced b > me looking toward the Investment of the unemployed school fund In United Stales bonds. In IhU effort to. find the best possible Investment , after we were prevenlcd from purchasing stale warrants , 'I failed to re ceive the co-operation of any other member of this board , and no Investments were made In lhat direction. , , Registered Bounty bonds , the only remainIng - Ing Investments" permitted by Ihe constitu tion , have been purchased from lime to tlmo as reporte'd'ln , [ fctall by Iho atate treas urer. TJrfse Ub9ndi , have been purchased upon a basis ot Interest of 4' { . per cent or moro. It will be observed that Ihere wis secured for the Investment of the permanent school funds county bonds in the total sum of $345711.32. There now remains of these trust funds , as shown by the report of the slalo Ircasurcr , Ihe total sum of $52S- 558.41. A constitutional amendment providing for the Investment of this fund In school dis trict warrants , as well as specifically naming state warrants aa legitimate Investment , was submitted to a vote of the people al Ibo last elecllon , but Its adoption is as yet a matlcr of uncerlalnly. I Ihlnk , however , I can safely assume lhat In any event the Hoard ot Educational Lane's and Funds , as constituted by the election of the present officers will co-operate wllh mo in the in- veslmenl of this fund In the slale securities mentioned , which , If successful , will furnish an ample opportunity for the profitable In vestment of this entire fund. Yet I nm of the opinion that an nearly as practicable It would bo advisable , by constitutional amendment , to make more comprehensive provisions for the Investment and manage ment of this trudt fund , which Is constantly Increasing , and which In time will grow to enormous proportions. This fund Is the palrlmony of the children of the stale , to be Invested and the Interest applied for their education. Such a magnificent endowment Is well worthy the Jealous care and walch- fulness ot thcso entrusted with Its custody , and It Is of Ihe ulmost Importance that provisions bo made for Us Investment upon advantageous terms , and yet with all rccsonable precautions for the permanenl safety of the principal. How soon this may bo brought about Is perhaps yet uncertain. COST OK STATU INSTITUTIONS. Total SliiMVM mi IiKTcn.He , but I'I.T Cnpltll n DrcriMIHO. It has been the custom heretofore for each leglslalure to make appropriations for the biennial period ending with March 31. Sec- lion 19 of Art.lclo 3 of the constitution pro vides lhat "each legislature shall make ap propriations for the- expenses of government until the expiration of Iho first fiscal quarter after the adjournment of the next regular cession and all appropriations ehall end with such fiscal quarter. " Tiio fiscal year begins December 1. The legislature usually doca not adjourn until souio tlmo during the second fiscal quarter. The , tlmo for which ouch appropriations should be made , according to this construction , would not expire until tbo last day of the third fiscal quarter , which would bo August 31 , With this provision In view the stqteauJUor has requested call- males of cxpeAflUjIres to bo presented to this legislature Tor twenty-nine months In stead of twenty-four , cs has been the custom heretofore , for fhd' ' purpose of bringing the appropriations Up'to the tlmo mentioned. The total appropriations made by the last legislature for tile" current biennial period were $2,781,6SIfGOl > ivhlch may bo divided Into the following llbniat Legislative . . . ; { . . . $125,000.00 Executive omens' ' nnel tate bonrdH Jr.-.t > C9LMCOO ) University nndcNormal Hchool , . . . SG3ill.S9 Mulntennnce , t > f , Htnto Instltu- , ' " " ; fiv i- - fi33.2a7.37 Miscellaneous ftpyroiirlallons 7CO.783.3l Total . " . . . . ' . 'J $2,781,031 CO It will thus bo1 seen that of the total approprlatlons.qvlclr one-third are for the maintenance oj. etnto Institutions. After deducting app.rpprjptlons for repairs and permanent implpypyienti ? , the "net appropria tions for the ma'lmpnanco of these Institu tions for 1893 and 1S9I were $ SS4,13fi ; and the net appropriations for 1895 and 1890 were $35,829.34. $ The total number of Inmates during the period of 1893-94 was 2,214 , show ing a per capita expense for this period of $394.14 $ ; the total number of Inmates for .ho period 1S95-9C had Increased to 2,538 , and ho per caplla expense decreased to $329.33 , flio great bulk of thcso ravings was made n only a portion of the state Institutions , and had Iho same general decrease prevailed n all the state Institutions the saving would lave been much greater. I am of the opinion that 01111 further savings can bo nado in the expenditures of these different nstltutlona , and for the purpose of giving rou all the Information possible. I present lorowtth a tabulated statement showing the otal appropriations for the two preceding jlennlal periods , and tbo manner In which .hoy wore expended , together with the average per capita cost In each of these In stitutions. This contains ateo other In formation which may bo of value to you In determining the needs of theio Institution for the tlmo for which you ehall make np pnoprlittlons. SOLDIEHS1 HOME AT ( HIANI ) ISLAND The Soldiers' home at Grand Island hn assumed largo proportion * by the erectlo of new buildings , collages nnd provision for Increased carnclly In caring for worth union soldiers , for whom It was conslructei Largo sums of money are npproprlaled b each recurring session iif the Icglslatur for Its maintenance. It now has 205 In mates , a larger number than It bus eve had heretofore. The last legislature ap preprinted $12,000 for a now addition , to gethcr with numerous other sums for per maiu'iit repairs and Increased facilities fo Us management In different ways. Ther has been appropriated altogelhe many hundred dollars for the crec lion and reparation of good sub stantlal buildings. U Is not only filling and proper , but It Is a duty owed by the people of this slale , and cheerfully per formed , to make suitable provisions fo the support of all worthy and needful sur vlvors of the union armies In the clvl war. I but speak the Bentlments of the patriotic people of Nebraska when I say that no burden Is borne moro willing ! ) or duty performed with greater alacrlt : than that which Is required In making ample provisions for the maintenance li comfort of those worthy veterans who wer the defenders of Iho union. The management of the Institution for th past two years has been the most cconoml cal during Us history. The kind Ireatinen and ample provisions for the comfort am plensuro of the inmates have been all tha could bo desired. The members of tbo Visiting nnd Examining board , assisted bj the commandant , have been tireless li their efforts to conduct the Institution so as to fully accomplish Iho purpose for whlcl It was established. SOLDIEHS1 HOME AT M1LFORD. The last session of the legislature passei an act providing for the establishment of a branch soldiers' homo at Mllford by the leasing of land and buildings already con- strucUd. Eight thousand dollars was appropriated to carry Into effect this act It was provllcd In the act that the land am' buildings referred to should within thirty days after Us passage be leased lo the state frco of charge for two years , with Ihe privilege of eight additional years for o Mini not exceeding $ SOO per nnnum. Under the direction of Ihe Hoard of Public Landh and Huildlngs alterations and repairs have been made , filling Iho buildings for Ihe re- cepllon of inmates. Captain J. H. Culver was , by this board , appointed commandant. A full and detailed report for the period end ing November 30 has been made by the oomman.lant and Is presented for your con sideration. There were forty-five Inmates In this Inslltullon nt the lime Iho reporl was made and a deficiency for Us maintenance created up to that time In the sum of $10- 521.20. It Is also asked that $13,500 be appropriated for the purchase ot this property. The maintenance of two institutions for the support of disabled nnd Indigent soldlcrf when the objects sought can be accomplished in one Institution entails nn additional nnd unnecessary expense on the laxpayers of the state. It Is true that the general govern ment has provided means for assisting the different atatca in caring for the veterans of Iho war by coulrlbutlng from Iho general treasury $100 per annum for each Inmate ot Iho homes established , but this In no wise changes the rule or the principle Just an nounced. The revenue derived from the general government Is the same per capita whether one or two Institutions are main tained , and it Is our duty lo kc p within reasonable bounds thcEe different ex penditures Involving a taxation of Iho citizens of our state. While I do not rec ommend unreservedly the discontinuance of the homo at Mllford , I ask of you a careful and thorough study and Investigation as 'to ' the probable demand , ? which will have to be met by our people In providing for these worthy citizens. If the conclusion Is reached that all , the necessary comforts nnd con veniences can be as well provided for In the homo already established , with reasonable expenditures for Increasing Its capacity , It Is a serious question whether this ought not to bo done rather than to incur additional ex pense by maintaining two different Institu tions. The latter course necessitates the employment of two sets of ofllccra nnd In creased demand for expenditures , which might bo greatly reduced by concentration of population and the utilization of fixed conveniences which are of sufficient capacity to answer the demands a much larger popula tion would make upon them than exists at the institution at present. It Is true that the location at Mllford Is beautiful , allracllvo and the surroundings very pleasant. The water , I have no doubt , Is very healthful and there are , perhaps , , some advantages which do not o.-st ! at any other Instilullon In Iho slate. These are Inducements which appeal for the continu ance of this Institution , yet It Is to bo borne In mind that the surroundings nnd environ ments can bo made very pleasant , and arc so In fact. In every Institution In the state. Such Institutions have been located only in places where the people generally have found it very pleasant to cstubllah their homes and rear their children nnd enjoy the usual degree ot happiness allotted to mankind generally. _ _ CIIANOUS AT THIS PI5XITI3NTIAUY. N llir Stall * oil Abolition of ( In'nullnet ' S.VMtnn. Ily Ihe census of 1S90 It was shown that Nebraska had a population of 1,0"S)10. ! ) At the present time It Is fair to areumo thai the populatlon has Increased to 1,250,000. Hy an examination of the report for the biennial period ending November 30 , 1891 , it will bo found that the average number per year sentenced lo the penitentiary was 175V6. and the average number per year for Ihe biennial period just closed , as shown by the report of the present warden , Is 17C'i. . The number of prisoners confined In the penllenllary November 30 , 1804 , was 351 , while Iho number Imprisoned November 30. last , or at the end of the biennial period , was 275 , Ihus showing a cor.ilderable decrease. It will also bo observed , by the report of the pardons aud commutations submitted here with , that executive clemency has been exercised with less frequency than during the vears previous , nnd the number paroled only n little In excess thereof. Thcso statistic * dlacloi-o Nebraska's standing In a very enviable position rcspccllng Iho low percentage of criminality as well as lhat of illiteracy , thus confirming the axiom that Ignorance and vice go hand In hand. The condition of the penitentiary upon the whole Is very good. The present manage ment has taken advantage of Ihe opportuni ties which have been offered for Improve ment. A careful ttudy of the history of tbo penitentiary alnco Its organization will not disclose any two yearn of Ita existence during which greater progiess was made than during the biennial period just closed. Credit for this condition Is due to the effi ciency of tbo management of the present Arc yon awnro of the fact Hint you can my tlio old rcllablo Hiirlon Biillar of us for $10.00-tlio Biiltar that year by year n llrnily cHtnbllHliIiiK ItHclf IIH onu of thu very bcxt lit tone In IliiMi lu Htylo ho Ktillar tlmt'M mild for nearly linlf tlio irlco nukL'd for other lilk'li Kratio wakes and wo Kiiiirauteo ( ho Ilurton at S10.00 o KVO ! IIH good satlHfiictloii au auy of hum. A. HOSPE , JR. , 1513 DOUGLAS. warden , who , by a wlso and Judicious policy has Improved the otandnrd ot morals In the penitentiary na well as made Inrge- reduc tions In the exrondlturert. This good record has bct-n mndo by the warden despite ) the fact that ho has fnlleM to receive thn co- opcrailon of most of those with whom he tins had ofllclal rotations In Its management. The question of the management ot penal Insllluttona Is , of course , dlfllcult under moat favorable clreunwiUnces. There are various methods ot innnaRrinrnl. each hav ing warm advocates , While the encourage ment of nny method of management that will develop the reformatory features of prison life appeals strongly to the sympa thetic and humntio sentiments of mankind , yet , It la tt < be borne lu mind lhat the place should not bo made so Inviting lhat the caroltM nnd wickedly disposed will commit deed. ) of Inwlcsanrju wllnout fearing the punishment to follow. The humanity of the present ago demands th.it punishment for violation of law by Imprisonment or other- wlset shall not bo Inlllelcd barbarously. In humanly or In nny manner that would tend to nililo the better Bcutlmentn of a man , even though a violator of the law , but rather that the punishment shall be humane , yet reasonable. Ilxcd , certain nnd determined In Its character. This may be brought about by confinement In the penllenllnry In solllnry cells , In restraint of liberty , In ntrlit and rigid discipline , lu plain , simple fare , yet plenty and wholesome , clothing of the mosl common quality and some particular uniform color , and hard , steady and con tinuous labor during the period of confine ment , OHADINO OK PRISONERS. I do not believe In a sentlmcnlallly lha would supply lo Ihe prisoner , convlctci frequently of the most heinous crimes knowi to mankind , with every luxury , form o amusement or Intellectual recreation tha would be regarded ns special privileges by many who lead a humble yet honest am upright life. I believe In classification o Iho prisoners , so far ss It can bo done , will Ihe view of'separating Iho older and moro hardened criminals from those who have commltlod , perhaps under mlllgnllng clr cumstance-s , their first offense , and who sin cercly repent , desiring to pay Iho penally for Iho broken law. relrlcse Ihe mUlakes of the pest nnd lead an honest and up right llfo. Such prisoners should receive all reasonable encouragement. This , I seems to mo , migiu propcny oe unu oj constructing new cells In the new cell house In Iho east wing ot the penltenllary , whlcl Is now used aa n chapel. This would render It less difficult to maintain this cla&i o prisoner. ? without coming so much In con tact with the moro hardened class. While some advocate changing the strlpei clolhlng customary to be used In prisons al over the country , I doubt the propriety of It I understand It baa been trlcil only In verj few prisons nnd Ihere found to work no very satisfactorily. Its advocates say It U degrading and humiliating for the offender to bo required to wear Ibis badge nf a brokct law. U can bo said with equal proprietj that It Is humiliating to bo put In prlnou and restrained of one's liberty. The logical sequence of such reasoning would bo to dis charge all Iho prisoners nnd tclj Ihcm lo go on their way and sin no more. Wo m ai come face lo face wllh the practical side 01 depraved humanity ani prison tnauagemcnl of sueJi , ns well as to have the theoretical. Wefhave had In this stale almost over since Its organisation o form ot prHon manage ment that has been debasing and degrading. a system of leasing the penltenllnry and the convicts therein to selfish Individuals for the purpcse of private gain. We have at least Id ourselves of thU one objectionable feature of prison management. The last session of Ihe legislature passed an act providing for Ihe annulment of the leasw ot Iho prison and prisoners and also providing an appro priation for the payment of what should bo 'ound to be due the Ictsce by the cancellation of Ihe lease. Under Iho provisions of the act the lease was canceled , the approprla- Uon made by Iho legislature for that pur pose being exhausted In the payment. This report is on file In the office nt the lam commissioner. The state Is to bo congratu- tled upon Ihe consummation of mich a laud- xblo object ns that of canceling this lease , oven at the cxpenso It Incurred. UE-LEASINO THE CONVICTS. After the ntato had taken full control and po. se3lon ot Iho penitentiary nnd the labor > f the convicts an effort wen made by the Hoard of Public Lamia and Huildlngs to again lease the penitentiary grounds , ma chinery and labor , thus reluming lo Ihe ob- iecllonable syalcm from which we had Just 'reed ourselves. Aa soon cs Iho Intention of Ihe board came to my notice I look occa sion lo communicate lo It my views In regard to the matlcr , in Iho nature of c protect , asking thai the state should r.fvsmne control of the penitentiary aud of the labor of Us convicta , except as the same hnd been contracted out under thu old lease , and which by tho' terms of the act for Us cancellation wcro to be continued In force during Ihe period for which Ihey wcro made. The board , however - over , proceeded lo again lease Ihe pen- ! enllary grounds nnd properly , an well os Iho nbor ot Us convicts , imbject to Iho sub contract mentioned. It occurred to mo that his contract did not properly protect the ntcresta of the otalo , was beyond Iho au- .horlly of Iho beard to make and ought not to bo recognized ng n legal and binding contract on the part of the state. The warden , being of the same opinion , declined : o rc-cognlzo the validity of the contract The controversy was ( submitted to the supreme court nnd nn opinion rendered to lie effect Dial the attempt to again leatw the irlson and thu labor of the convicts wct > 1 legal and Ihpt the board had exceeded its aulhorily After the decision of the supreme courl the board called In Mr. James Whltehead. md under the designation of "agent of tlu > jonrd" ho assumed tr > perform Home dulli-s connected with Iho management of Iho pcni- .ontlary which might vary properly- have > een done by the warden under Iho dfrettlou of l > ho board. The report of Iho board'o agent Is presented wllh the report of the and commissioner. I nm satisfied that he ias accompl'Uhed ' nothing that might iot iavo been done by the warden and tha' the cx : > eii3C3 occasioned by his n"oliimem ! were utterly needless. It Is disclosed by the report of t'ho agent that there has been collected by him , ns the proceeds cf the abor of convicts , $1 t,2S0.73. Of thla amoun' .hero was expended $10,011.97 and paid late tlio state treasury $1,115.08. These cxpemll- iiirca i rci iru ua JJUVIIIK ucu.i uiuuu wiuiou * authority of law. All moneys derived from 1io labor of convicts should , U would seem. > a turned Into the state treasury , to be drawn therefrom on approved vouchers , us In other cases , In the iiianuor provided1 by law. The loanl having the * power lo make provisions for the proper employment of Idle convicts seems not to have nxcrclscd Ibis authority , except temporarily , from lime lo time , as shown by the report of the agent cf the loard. It ulso appears that the con tracts or agreements temporarily mtered Inlo were at a much lower figure than heretofore co- cured. I have thought II proper lo go Into details ( Continued on Third Pago. ) Subscribers to the exposition had but- or notice the kind of shoes Irex L. hooiiiiui Is advocating some jicojilo fall end when they find they can buy u umilno Crunch enamel nhoo for § : iCO nit after we show them that Ihey are enly ! not ? 'I.OO Hhucn--but the ? 1,00 and fi.OO kind then they renll/.u thai they rw cntimela from I-'raucu It does not eem right to sell French enamuhi for ( i.OO-but wu'ro bound to do a bl hutil- csa. csa.DREXEL DREXEL SHOE CO , , 1410 FAUNAM STUKET OBBo Honest Methods Approved. The Free Distribution of Dr. Hobbs Spnra us Kidney Pills from the Drug Store of Kuhn &Co. , N. W. Cor. 15th nnd Douglas St. cndocl Ycster- clny. Hundreds Now Testing The Remedy in This City and Vicinity. WHflT WILL THE RESULT BE ? Last night the distribution of free samples ot lr. Hobbs Sparagua Kidney Pills closed at the drug sioro of Kuhti & Co. and will go Into history as one of the most success ful cvcnU that has over taken place In this clly. The frightful number of people who are suffering In ono way or another from kidney troubles In this vlclnlly can only bo estimated by the enormous number of sample packets which wcro given out on Thursday to all Interested persons living la thh city or neighborhood who applied for a sample of these wonderful pills. Dr. Hobbs' representative was seen last night nt his hotel , wearing n look of confl- dunce that betokens the man who feels that ho knows what he Is lalklng about. Ho said , In answer to the questions put lo him by Iho reporter : "Oh , yes ; I know Iho public arc skeptical of anything new , espe cially In Ihe medicine Hue. It Is reasonable to suppose that they should be , for have they not been humbugged enough by these who place but llttlo vnluo oven on death , when it comes to the question of gathering In n few Ill-gotten dollars ? "Dr. Hobbs appreciates nil this , and Is determined thai the worth of hl.i medicine . 'hall bo fully known and proven before the public Is asked to spend n penny. What Dr. Hobhs' Sparngus Kidney I'llla are , guaranteed to do Is to cure all kidney do- J rangemeiiLs. > "Do you know thai rheumatism. In nlne- tenths of all cases , arises from kidney troubleo of OHO sort or another ? Any physi cian will tell you that the common origin ot all rheumatic troubles U uric ncld In the blood. What do you do first , thai being Iho rase ? Go for the cause. Ret your kidneys In perfect working order , and away will go the rheumatism , becniiao when your kid neys , whose duty It Is to filler all poisons and Impurities from the blood , removes the uric acid , the cause of Iho rheumatism will bo gone nnd the rheumatism wllh U. * "Here are some of Ihe symptoms whtrh are danger signals , nnd , In a large majority ot cases , Indicate the onset of that merit Insidious of all maladies , Drlght's disease of the kidneys. Pain In the hack and sides , headache , nervousness , frequent tlilr-st , hot and dry skin , shortness of breath , evil fore- bodlnes. troubled sleep , puflliirss of Iho eye lids , swelling of Iho fret and ankles , loss of llcah dark colored or scanty urine , with deposlta of casts , etc. , and Ihe presence of renal epithelium , tube ca ts and albumen In the urine. "Thcso are some , not all , of the symptoms of IJrlght's disease , Inllammatlon or conges tion of Iho kidneys , nephritis , etc. . and these Dr. tlobbs' Sparagus Kidney Pills are guaranteed to euro. " For the benefit of persons living at a distance from this city , who did not call at our store yesterday , Dr. Hobbs authorizes us to say It you will cut out I lie coupon below and mall It to the Hobbs Remedy Co. , Chicago , III. , with your address , they will send you by mall , postpaid , n sample jox of thcso pills free of expense. KUHN & CO. , DRUGGISTS N. W Cor. 15th and Donglns St. , Oniiihii. Neb. GUI1 THIS COUPON OUT. Upon receipt of TIMS COUPON to gether with your naino and address- wo will forward by mall a KltKK 8AM- l'I-i : IIOX of Or IIobbsCpiira tH Kid ney IMM | ! ; also bt.s book oil kldnoy dlacnse.s. AdJrcHS , HOnilS II..1HIVCO. ( , Ill Searles & Searies , SPCCIUISTS IN Nervous , Clironlo ii nd Private Diseases , * WEAKHEN srxtnuY. Prl\.ito Dl.season IHsorJcr.tof Men Treatment by ir.ill -Consultation frro SYPIHUS Cured for llfo and the poison tliorouirMy cleansed from the system. PILES , FISTULA nnd llHCTAb ULCICUS , HYOHOCBMjg and VAIUCOCIOMC permanently and suc cessfully cured. Method now rind unfailing STRICTURE AND GLEELVSS. By new method without pain or cutllng. Call on or address with stamp. Dr. Searlcs & Searlcs 119 S. Mth St. . , Ora-.tja. ftr.ti * ' .Voder < o Cri-dHiirH. OMAHA , Neb. , Jan. 7 , 1I37In the mutter f Iho assignment of Oi'i.ihu Trnt nnd Awn- njr comiKiny. Insolvent , you nro hereby otllled thai the iinslgneu of wild cstntu hni : filed lu tills courl hlK llmil report , ami } IM xked that thu pallid be approval , ami that lie bo ( Uncharged from hla trn.st IIH mi It ! a.s- nlKaeo , nnd miles : ! you aniwir ; bvfoio Ihlx courl on the iUt day of January , 1K37. and object to tbn approval of mild report , thu may be duly approved , ami the an- < -o discharged from hla trust. IHVINU K. HAXTHH , County Judgo. .limy S dl t in STOOICIIOI.nKltS' UNION LAND COMPANY' . Notlcu JH hereby Klven that tliu annual niC'cllDf ; of thu HtockhoIdcrH of thn Union l.iiud company for thu election of tlvo (11- icclorn nml llm Iraimnctlon ( if such other buulnesn IIH may lawfully coinu lie Torn the muutlm ; will bo held at the olltco of Iho general Kolicllrir , Union Pacific building , Oinalm , Nebraska , upon Monday the lltti day of January , Jf.37 , at 10 o'clock n. in. AI.ISXANDHU MIUAH. Hccrvtnry. IJoatoii , MUM. , December 7 , ISfiO , D22 d22t The annual meeting of the stockholders of The llc-o Building company will be imiij In the olllue of The Omaha Hee , Omaha , Neb , , nt 1 o'lilock p. in. , Tuenilav , January 19 , 1KH , for Iho purpoiio of electing a boiinl of fllretitors for thu ensuing year nml the tr.uiiuin.tlon of mich other luiuluc * * n may properly como bcforo the inwllm : . Uy order of the president. N. P. FlOIf. , Hwri'tnry , P21-1' } " ' & ° .V n ( I co /rrlinitliin llonil Knlc. Thn directors of Ihu Middle I < oup Val ley Irrigation district liivlto B'alcil pro- pou'ilnor $106.000 ( In part or whole ) of bniid nf x.il'.l ' ill.itrlct up to 2 p. m. of Jan uary 10 , IK'i'j. AddrcHH , I , Bccrelury. tiurccnt. NH | > .