TUB OMATIA DAILY JJEE : VIUDAY , JAXUAHY 1 J > 9.
GOVERNOR'S ' MESSAGE
Retiring Executive Bends His Last Official
Communication to the Legislature
FINANCIAL AFFAIRS OF STATE REVIEWED
Economy Necessary to Maintain a Balance
Between Income and Expenditure ,
TRUST FUNDS FORCED TO REMAIN IDLE
Incurable Defects in Laws Render a
Constitutional Convention Advisable ,
URGES NEW MAXIMUM RATE LEGISLATION
IlcnrntM Which llnvc nnil Arc
to Accrnc to .State from tinIjTponl -
tlon Commented llpnn Ailmln-
"Ion the State IN I'roiipcrou * .
j
LINCOLN , Neb. , Jan. r ; . ( Special. ) The
tilcnnlal message of Governor llolcoml ) was
delivered to the legislature today. Starting
out with a review of the war with Spain , thr
governor. In speaking of the part played by
Nebraska , ways :
"In the creation of the volunteer army for
the war with Spain the citizens of our state
responded with promptness and patriotism ,
Inspiring and gratifying to all Nobra.skans ,
and there were soon enrolled In the volun
teer Bcrvlco two regiments of Infantry and
flno troop of cavalry. This was supplemented
In a short tlmo by a third regiment of In
fantry of the maximum strength of 1,320
enlisted men and officers ; and the two regi
ments first organized were recruited to the
name strength. Nebraska thus contributed
to the army of the United States , In the late
war , In round numbers , 4,000 volunteer soldiers -
diers , bcdldes numerous Individual enlist
ments In the various branches of the mili
tary service.
"Tho conduct of the Nebraska soldiers In
the trials of camp life , their mauly hearing ,
their readiness In adapting themselves to
the soldier's life , their proficiency In arms ,
and finally their heroic conduct In battle has
gained for them the unstinted praise of civil-
lanu and the commendation of their superior
officers In command. Ono regiment of Ne
braska Infantry and the troop of cavalry
have been mustered out of the service , and
the peace negotiations having happily been
consummated , wo may hope for the early re
turn of the two regiments yet remaining In
the ncrvlcc.
"For the patriotism displayed by the vol
unteer zoldlcr , for his willingness at the first
indication of danger to sever homo tlee and
surrender his business affairs In many In-
Htances a matter of great pecuniary sacri
fice to himself and those dependent upon
him for the many sacrifices endured , the
pcoplo of the atato have on many occasions
expressed sentiments of the highest appre
ciation of their unselfish nnd patriotic ac
tion. For myself , and In behalf of the people -
plo of the state , I wish to hero record my
most slncero and profound acknowledg
ment of gratitude for the manly , heroic and
patriotic conduct of the Nebraska volunteers
in the Spanish-American war of 1890.
EXPOSITION GREAT EDUCATOR
Pluck and Knterprl - Which Mnilc It
Illicitly I'rnUeil nrnelltn Will
lie Felt for Venn.
"Willie our country was engaged In a war
upon land and sea here was Inaugurated
and carried to a succesilul conclusion upon
Nebraska soil , and within the gates of her
metropolis , an exposition of the arts. In
ventions , Industries and progress of the
transmlsslsslppl country which excited the
wonder and admiration of millions of the
citizens of this and other countries who
visited It. This stupendous civic enterprise
From the first Day
The public has lon > r felt that the nrt
of curing exual decay , Imnotency or
lost manhooil , was ono of the most un
certain of sciences. No two physicians
could agree as to the treatment , and
the public justly -
, ly became < ! ! *
'tiKteil with
1 jhyslclnns I n
jjonerah T h o
most natural
result was that
weak men , see-
Ins o elmni'e
of obtaining re
lief from the
regular practi
tioners , lied for
help to the
Inrjio army of quacks ,
who emptied their pockets -
ets and frequently Irro-
pHimbly damaged their
henlth. Kleetrlolty Is
today the only known
cure for Sexual Weak
nesses , and I positively
guarantee a permanent
cure when ICIoctrleity Is (
applied through the me
dium of 1)11. URN-
XMTT'S KhKOTllIO
HKLT , which Is the
greatest and grandest
dlMMvory for the up
holding of the honor and
lory of man. Hcnellcinl results are no-
Iced from the very ! lr&t day. Fniluro la
mnosslblo. You must hnvo electricity In
the system ; Nat urn will not furnish It ,
for Nature has been lmi > oseil upon. The
gentle , sure and never-wavering current
of IClectrlclty generated liy my Holt
feeds the brain , making new tissue ,
Htrengthcns all the cells by supplying
them with vlvllled blood that Is perfect
ly pure nnd healthy. It feeds all the
muscles of the body , strengthening anil
hardening them , ns no drugs on earth
will. The prices of my bells are only
$8 and $10 ami a cure Is worth more
than money to you ; It Is worth life
Itrtlf. To married men , mUldle-aKed or
Advanced In years who suffer trom
wnnt of power I asurc a speedy and
permanent relief ; you ciui , be ln treat
ment with my Helt with the same conil-
denco of tt cure as food would lie 16 a
HtarvltiK man to Mitlsfy lumper. With
old men the effect Is a happy one the
jiower and visor of youth belnj : restored.
CSu u'anteed to cure Kidney , hlver and
lllndder Troubles , Uhenmatlsm , In every
Ktiise , Constipation , Dyspepsia , Kemal >
Complaints , etc. lias soft , silken ,
hnmcls-covered siion e electrodes that
cannot burn and blister as do the 1mnt
metal electrodes used on all other ui'ike-i
of belts ; can be renewed wl-en worn
out for 7"icents no other belt can be
renewed for any uric- . ' .
* Call upou or write mo today sacred
r ly contldeutlftl pet symptom blanks ,
books and literature. Consultation and
udvlcu without cost. My KMCCTIUCAb
SUSI'KN.SOUY for the cure of the vari
ous weaknesses of men Is KItKIO to
every male purchaser of one of my
Hells. Sold only by DH. HKXXKTT
KhKCTUIC CO. , Hooms uo and 1
Pouulas Uloek , Kith and Dodpe Sts ,
Omasa , Neb. Open 8t : ; ( > n. m. to Silio
p. ni. uud all day Sunday.
waq the creation of the prosrewlvo spirit
and heroic endeavor of the same superb
manhood and womanhood whose energy , In-
diMtry and Intelligent efforts In the last
half century have wrought from nature s
rude environments the highly perfected
civilization of the mid-west of tlio present
day.
"It Ii but Just , however , to say that the
successful planning and consummation of
this great undertaking Is largely due to the
public-spirited citizens ot Omaha and
Douglas county , and of Omaha's sister city ,
Council llluffa , la. With daring spirit , a
courage dauntless and a fnlth almost sub
lime , tbcso citizens banded themselves to
gether and for more than twelve months
ceased not by day or night In their tireless
endeavors to show lo the world , as well as
to our own people , the matchless developcl
raent and surprising advancement of this
great area of country during the half cen
tury now drawing to a close.
"Many of the states of the union gave of-
ficlal recognition to the exposition by makap
Ing liberal appropriations , appointing state
commissions , erecting attractive nnd comfortable -
fortable state buildings and maintaining In-
tcrestlng and Instructive exhibits of the (
products and resources characteristic of the i
state thus represented. Many foreign coun.
tries were likewise represented by exhibits
of rare beauty and excellence , which were
greatly admired by visitors , and which added
much to the splendid success of the enter
prise. The complete , highly Interesting and
Instructive exhibit by our own national gov
ernment was a prime factor In the perfect
success of this great undertaking and It
gave to all who were permitted to observe
the many Interesting features of this ex
hibit special and added reasons for feelings
of patriotism and greater pride of citizen
ship. I'rlvato exhibitors almost Innumer
able with wares nnd merchandise , with ma
chinery and Inventions , the product of the
unsurpassed Intellect and genius of the
American people , contributed In no stria ! !
degree to the success of the exposition.
"In this magnificent triumph of
man over nature and nature's forces
the people of Nebraska of all
stations , vocations and callings con
tributed their full share to its final and
complete success. They entered Into the
work with zeal and courage , and loyally
supported every move calculated to advance
the Interests of the exposition. The state
was represented by a state commission under
whoso supervision there were displayed
creditable exhibits of Its principal resource ; *
and Industries. Nearly all state Institu
tions were properly represented by suitable
and distinctive cxhlbl/s. The educational
exhibits by the university , normal school ,
the public schools of the state and private
Institutions of learning challenged admira
tion nnd elicited unqualified praise from
thousands who viewed thc-so most excellent
presentations of the achievements of our In
stitutions of learning. I think I am safe
In saying It was the consensus of opinion
of those competent to Judge that the educa
tional exhibit was the best of Us character
ever presented at .my similar exposition
held In this country. State organizations ,
fostering and encouraging different In
dustries of the state , were all represented.
Almost every county In the state had an
exhibit of Its resources and development.
"Tho grand structures of this beautiful
white city will soon pass away , but I am
persuaded that this great exposition has
been productive of untold benefit and In
calculable good to our people and those of
the great west , and that Its bcne-flccnt In
fluences will continue for generations and as
long as man shall love progress and strive
'o advance In the affairs of life to a better
and more perfect civilization.
PROSPERITY FOR NEBRASKA
AKrlriilturnl Intercut * Hnvo Flour-
Inhrd nnil Tide of ImmlKi-ntlon
ScUliiHT TblH AVnx.
"Tho growth of the state and Its material
progress during the last two years have not
been without satisfactory results. The agri
cultural Interests have steadily Increased
from year to year. Wo advanced to first
place In the magnitude ot our corn crop
for the year 1897 , excelling all other states
in the union. While we may not be able
to maintain this high rank at all times , It
is gratifying to know that In the production
of corn as 'well as of live stock , cereals and
other products of the farm , Nebraska com
pares most favorably with the best ogrl
cultural states of the union.
"Many farms In the western part of the
state , abandoned because of drouth and I
other discouragements In past years , are
again being occupied and put to useful
purposes. People who have left the state
with a view of finding more favorable loca
tions are fast returning , convinced that Ne
braska offers advantages equal to those of f
any other portion of the union. Irrigation
In the western part of the state has taken
firm hold and millions of acres heretofore
poorly adapted for farming are now made
to produce In the greatest abundance.
"In the growth and development of her
resources Nebraska offers opportunities for
engaging In profitable business , acquiring
property and securing homes where families
may bo reared amid churches and schools
and healthful surroundings equal or superior
to any section of the country. "
REVIEW OF STATE FINANCES
Cure nml Uronnmy Needed to Miike
the Ilreclptu Sntlufy the lie-
nuinilH Upon Them.
"The state's business has been carried on In
satisfactory manner. Economy and buel-
nc&sllkc methods have as a rule prevailed
In all branches and departments of state
rovornmcnt. Expenditures have quite gen
erally been kept within appropriations. The
state's Indebtedness has been liquidated ns
rapidly ne the collection of revenues wouli !
permit , and It holds today a financial
credit and business standing unassallabli
and far In excess of what It has enjoyed for
many years.
"I am gratified In being able to present to
you a statement showing a material Im
provement In the condition of the finances
ot the state.
"At the beginning of the biennial period
commencing December 1 , 1894 , according to
the reports of the etato treasurer and
auditor , the state's Indebtedness may be
summarized as follows :
Funding bonds t 413,207.35
Hollef bonds 100,000.00
Ucneriil fund warrants 577,825.75
Total Jl.127,091.10
"At the close of the blennium mentioned
( November 30 , 1896) ) there was an outstand
ing Interest-bearing debt against the state
of the sum of } 2,101,510.52. Of this sum.
JISS,267.33 represented a bonded indebted
ness , and the sum of { 1,936,273.47 a Moating
Indebtedness evidenced by warrants drawn
against the general fund of the state
treasury , bearing Interest at the rate of >
per centum per annum from date of
registration.
"During the blennium there were Issued
general fund warrants In the aum of )2-
31S.fi59.59. and general fund warrants were
redeemed In the sum of $1ICO.511.U' , to
gether with accrued Interest thereon in the '
sum of 469,630.62 , thus making a total of
$1,230,141.74 disbursed by the state treasurer
In the cancellation of general fund warrants.
It appears that during this period the bonded
Indebtedness of the otato was reduced J61.-
000 , nnd the floating or general fund In
debtedness was Increased In the sum of
J1.1SS.04S.47.
"From the reports of the state treasurer
and auditor for the blennium Just closed It
appears that there now exUts bonded In
debtedness of the sum of $153,267.35 , and a
floating Indebtedness oC J1,071C31.01 , mak
ing a to'al Interest-bearing debt November
30 last of J1.72I.M1 30.
| itrilnrllnn In Mtnlr Drill.
] | . "During the last blennium warrants were
| 1 drawn ' against the general fund ot the Mate
i treasury , ' In the sum of 11,933,271.74 and for
! the same period general fund warrants were
redeemed In the sum of { 2,218,793,12 , to-
gcther with accrued Interest thereon In the
cum of { 200,962. 15 , making a total of $2,149-
755.C7 dlabmsed by the state treasurer In
I the cancellation of general fund warrants.
These transactions resulted In a reduction
of the bonded debt during the last blennium
In the sum of $315,000 and of general
fund warrants { 361,589.46 , a total of { 679-
' rS3.IO. Thla reduction Includes { 46.S85.26
of sugar bounty warrants which by a de-
clslon of the supreme court are declared to
be > Illegally Issued.
" 1 have not deemed It necessary In this
resume to speak of Indebtedness heretofore -
fore existing by reason of warrants drawn
against the temporary university fund and
the fund for the Institute for Feeble
Minded Youth , approximating { 59,169.13 , be
came these warrants have all been re
deemed , the Indebtedness cancelled and war
rants against these funds arc now paid as
presented.
"The bonded Indebtedness of the state Is a
matter calling for no special concern. For
the payment of It ample provisions have al
ready been made. There Is duo the sinking-
fund by reason of levies heretofore made , In
uncollected and delinquent taxes , upon a
careful estimate , { 285,747.70. It would re
quire the collection of less than 50 per cent
of tlil.i sum to liquidate all the remaining
outstanding bonds. Much more than this
will doubtless be realized and legislation
vlll be required for the purpose of trans-
'crrlng ' the surplus to another fund. I have
lot taken Into account In these figures tbo
appropriation made by the legislature of 1893
o reimburse the sinking fund In the sum of
ilSO.101.7o , lost In the failure of the Capital
National bank , and which was drawn out
of the general fund , hut not accounted for
by ex-State Treasurer Uartley.
"All unpaid bonds of the state are now
leld as an Investment for the permanent
ichool fund. Therefore there exists no press.
Ing necessity for their immediate payment ,
although past due. Payment and cancella
tion may be made as rapidly as funds ac
cumulate. In the state treasury for that pur-
pose.
( irnernl Knml liiflelilciliioi * .
"I Invite your serious consideration to
the general fund Indebtedness of the state.
The state Is now paying { 75,000 or more
a year _ as Interest on Its outstanding general
"
eral "fund warrants. These wararnts run
from eighteen to twenty-two months after
registry before they arc called for pay
ment. The state cannot very well do busi
ness according to approved business meth
ods unless It mikes provision for the pay
ment of Its curreLt obligations with rea
sonable promptness ; neither can It hope to
have Its affairs satisfactorily administered
If the Indebtedness which Is constantly
being Incurred In maintaining state govern
ment shall exceed to an appreciable degree
the revenues which It may derive from
taxation and through other sources. If
such a policy shall be pursued for any con
siderable length of time It can but result
In bankruptcy or the necessity of funding
such Indebtedness In Interest-bearing bonds ,
to be paid off by future generations.
"Tho twenty-fourth session of the legisla
ture , held In 1895 , made appropriations au
thorizing warrants against the general fund
In the sum of { 2,537,539.60. The revenues re
ceived nt the state treasury during the bl-
ennlal period ending November .10 , 1896 , to
meet the expenditures so authorized were :
From taxation { 1C07,316.91
From all other sources 71,275.62
Total $1.73S.592.53
Thus authorizing an expenditure of $798-
947.07 In excess of the receipts of revenues
,
from all sources.
The twenty-fifth session of the legislature ,
or the session of 1897 , made appropriations
authorizing warrants against the general
fund In the sum of $2,125,343.10. The
revenues received at the state treasury for
tbo biennlum ending November 30 , 1S9C ,
were :
From taxation $ l,73S.SiR.OS
From all other sources 17fl,57rt.4t >
Total $1,975,431.51
"The authorized expenditures exceeding
the revenues In the sum of $149,906.86.
"In mailing the above calculations I have
eliminated the 3-6 mill levy for the tem
porary university fund and the approprl-
atlon made against the same and have
endeavored lo tpeak only with reference
to general fund Indebtedness and resources
from which the same Is met.
"It Is to be borne in mind that the author
ized expenditures as provided by the ap
propriations , may not always be actually ex-
pended , and reference must also be had to
the warrants actually drawn against this
fund to ascertain the current expenses ac
curately ; yet It Is a safe guide , speaking
In general terms , nnd experience has dem
onstrated that the appropriations have
been exctede.1 and deficiencies Incurred
oftener than there has existed a surplus in
the appropriations above the actual expenses
Incurred for the period covered by such ap
propriations.
.YnnlyilN of Kx | > eii < lltiirpn.
"Analyzing the appropriations of the legis
lature of 18U7 , which I believe were made
with strict regard to economy and with an
earnest desire to reduce them to the lowcs
nnvount consistent with the welfare and
proper administration of the affairs of the
state In Its various branches and depart
ments. It appears that there was ap
propriated for extraordinary objects for
purposes other than those necessary for the
ordinary current expenditures , the following
Hums :
TransmhslKslppI Exposition $100,000.00
Public buildings 110,000.00
Dellclcncles for preceding biennlum 91,123 00
Total S313.125.W
"Leaving the sum of $1.812,218.40 as rep
resenting the amount to bo expended for the
ordinary current expenses of the state for
the blennium. or $900.109.20 per annum.
These authorized expenditures may bo di
vided ns follows :
Legislative $ 130,000.00
Kxecutlve offices and state boards 274,210.00
Supreme nnd dim let courts 251,003.00
University ( general fund ) and nor
mal school fll.8l2.3i51
Maintenance state In tltutlons . . . S77.310.00 J
Miscellaneous appropriations 457,126.01
Total general fund $2,123,393.40 [ I
State university , Vmlll levy 210.500.CO J
-
Total appropriation $2.333,893.40
"In speaking of the state's expenditures
and Its Income I have not overlooked the
fact tnat there Is a large sum of uncollected
and delinquent taxes duo the state general
fund , now aggregating the sum of $2,422- $
038.43. At the clcse of the last biennlum ,
November 30 , 1890 , uncollected and delln-
quent general fund taxes amounted to $2-
330.C92.7fl , thus showing an Increase during
the biennlum of $91,3(5.67. It la to bo berne
In mind that out of these uncollected taxes
the expenditures of state government are
to be met for the remainder of the period
for which appropriations have already been
made , to-wlt , until March 31 , 1S99. This
amount will approximate one-third of the
annual expenditures for ordinary purposes ,
or about $300,000. To this sura add $1,560-
334.04 , the present floating indebtedness , and
wo have as a charge against the state at
the end of the appropriation biennial period
approximately $1,569,331.04. To meet tills
we have In uncollected and delinquent gen
eral fund taxes $2,422,033.43. This leaves
a comfortable balance on the credit side ot
the state's balance sheet. Hut this Is a
theory rather than a condition. It is realIzed -
Ized that a large amount of the delinquent
taxes will never bo collected , and It Is
highly probable that the state will receive
from this source not more than Is required
I to meet general fund warrants now outn
islanding I , or wlilch will be drawn against
' appropriations already made. It Id possible
that thesn receipts will fall to reach the
sum required to meet the present obllgal
tlon ( | ( , The narrowness of the margin at
least , admonishes us to authorize no new Indebtedness -
debtedness except provisions are made or
can be made for meeting the same by a
levy of taxes nnd from othw sources which
ran bo relied upon with reasonable certainty
for the production of revenues sufficient to
meet such appropriations.
| i .Sii , | iriu1ri ! llnnk * mill l > efnlcntl < iu ,
j "Tho state has been unfortunate In the
1 methods adopted In recent years In the man
agement of Its financial affairs , resulting In
great J loss by reason of the suspension of
banks . which had been designated as state
depositories , notably that occasioned by the
failure of the Capital National bank of Lin
coln , In which the state lost { 236,361.83 , and
In other banks In smaller amounts , JS6-
' 088.96 , making a total of $322,450.79. In
several Instances suits upon the depository
bonds have been Instituted , but at this time
nothing ha been recovered. In the case of
the Capital National bank the sureties on
the depository bond were found to be. with
out financial responsibility and recovery ot
any sum from this source was entirely hope
less. .Suit for the recovery of the money was
Instituted upon the official bond of ex-Treas
urer J. E. Hill , which resulted In the re
lease of the bondsmen. ThU.cntlre sum will
) C lost to the state unless , perchance , some
'ractlon of the amount be realized by dlvl-
lends paid by the receiver of the Institution.
The right of the state to share In thcso dlvl-
lends Is now a subject ot litigation.
"It Is difficult to approximate what sum
may be recovered upon the other depository
bonds of suspended banks , or by dividends ,
Jut It will be twfer to assume that much the
larger part will ultimately bo lost to the
state.
'In addition to the foregoing losses former
State Treasurer J. S. Dartlcy , In making
settlement with his successor , defaulted In
the fonowlng sums :
Amount of general fund warrant
anil Interest to reimburse sinkIng -
Ing fund { 201.SS4 ( V3
Trust or educational funds 335.S7S OS
In suspended depository banks
In excess of amount permitted
under depository bond 15,312 4S
Total Vv,3,074 61
The governor then goes at length Into the
history of the litigation growing out of the
Hartley defalcation , both civil and crim
inal.
TRUST FUNDS ACCUMULATING
C Sum Xovr I.ylnK Idle for I.nck
of Opportunity to Invent
RciucillrH Proponed.
"As shown by the treasurer's report , trust
or educational funds on hand and uninvested
amount to { 266,876.53. These Include the
permanent school , permanent university ,
agricultural endowment and normal endow
ment funds , of which the permanent school
fund Is by far the largest and moat Impor
tant. The state constitution provides that
'all funds belonging to the state for edu
cational purposes , the Interest and income
whereof only are to be used , shall be deemed
trust funds held by the state and the staie
shall supply all losses thereof that may In
any manner accrue , so that 'the ' same shall
remain forever Inviolate and uudlmlnlshed ,
and shall not be Invested or loaned except
on United States or utato securities or
registered county bonds of this state. '
"It has become a serious and perplexing
,
question as how best to provide for the In
vestment of this fund and thereby carry
out the plain mandate of the constitution
and the law governing the subject. While
United States bonds are a safe Investment
for this fund they yield too small Income to
be desirable. State bonds are limited In
amount and all are now held in this fund
and will soon be paid off. County reg
istered IiondB ot this fiUto are 'icing Issued
only at long Intervals and largely to refund
existing Indebtedness , a large part of which
Is already held In this fund. Sharp competi
tion , too , wherever an Issue of county bond *
Is offered for sale , makes It difficult tot
the Hoard of Educational Lands and Funds
to secure them.
"Stato warrants drawn against a regular
appropriation by the legislature , for which
levy of taxes has been made , are by the
supreme court declared to bo state securities
within the meaning of the constitutional
provision quoted. Under 'the present ad
ministration a largo amount of current gen
eral fund warrants were purchased. How
ever , It was soon demonstrated by healthy
competition that Nebraska general fund warrants -
rants drawing 5 per cent Interest were worth
moro than par and warrants quickly went
to a premium and have ever since steadily
commanded a premium of from 1 to 1 % per
cent. This has occasioned much difficulty
In buying these securities , owners naturally
preferring to sell to private parties paying
such premiums rather than to the state al
par.
"During the present blennium there has
been Invested of these truot funds the sum
of ' $738,199.91 , as follows : In registered
county bonds , { 410,363.55 ; in etato general
fund warrants , $327,836.36 , and a. balance ot
$2tJ6S76.53 remains in the state treasury un
invested.
Amount of Trait FandH.
"The state herds securities by investment 01
the trust funds to the amount of $3,580,030.21.
At the close of the preceding blennium the
amount of such securities held was $3,273-
251.35. The accumulation to these funds for
the biennial period Just closed has been $382 , .
509.09 ; by the payment of securities held by
the state as an Investment , $412,322.50 ; a
total of $794,831.59.
"The accumulation of these trust funds Is
steadily going on , and within a decade tbo
state wilt have approximately $6,000,000 to
$8,000,000 requiring investment In some former
or other In order to accomplish the pur
pose for which the funds were created. Not
only will provisions have to bo made for the
profitable Investment of this ever-growing
sum , but the payment from tlmo to time ol
securities now held as Investments may be
expected to Increase from this time forward 6j
| j
thus necessitating the reinvestment of such
funds. I earnestly urge the Importance ol .
providing by suitable legislation means b > .
which these Investments may be made , that
the patrimony of the youth of the state may
be put to the moat advantageous use.
"As a temporary expedient , I believe that '
the legislature should reduce the Interest 3'in
state warrants so that they wlir command as [
nearly as possible only their par value Ii
the markets when negotiated by their own
ers. I am of the opinion that the Interest on
state warrants may sifely b reduced to
per cent. Such a reduction would enable
the Hoard of Educational Lands and Funds
to Invest trust funds not otherwise employei
In state warrants at their par value , am
would be a ready means of keeping a larg
part of these funds employed until a more
permanent Investment could bo mode. I rem
also IncHned to the view that state warrants
tsn
would command their par value In the open
market at this rate of Interest. This wouli
save to the state near $15,000 a year on Its
Intere3t charges. Such a method , how
ever , could only be regarded as temporar )
In Its nature , as It Is expected that the
[ je
floating Indebtedness of the state , or the
greater part of It , will be paid In a shor t
time , and the state placed upon a ca&h basic
Investments by means of the other securl
ties mentioned in the constitution eeem by
experience to have proven entirely Inade
quote , resulting In large sums eonstantly re
malnlng Idle , a temptation for corruption
and official dishonesty ,
"No other means of Investment can be pro
vlded , except by amendment of the funda <
mental law of the state. This has been trlei
under the raw providing for constitutions
amendments at different tlmra and for differ
out purposes , and , with one exception , Invi
riably failed ot rccelvlnc the necessary
number of volcf , not bccatifo the voters wern
not In favor of the amendment , but bccftiMC
of the manner of submitting the question
( if i constitutional amendments and the con-
ftructlon l placed upon the law by the supreme
court as to the number'of votes required to
adopt a constitutional amendment. "
.
NEED ' OF NEW CONSTITUTION
of rrmt'tit Urn" " ' ' * * * t < nu
lie llruicillpil OnljItj - Consti
tutional Convention.
"Judging by past experience. It seems al
most hopeless to expect any amendment to
our fundamental law by submitting tlio
question to the voters , under the provisions
of the constitution as construed by the court.
I am of the opinion that the time has ar
rived hen it la almost Imperatively re
quired that the constitution be amended ,
not only with regard to the Investment of
the trust funds of the state , but also In .
other material respects. Assuming , a I
have , tliat this cannot bo done by amend
ments separately submitted to aote of the
people , 1 recommend that the legislature
piovlde for the calling of n constitutional j
onventlon for the purpose of revising our ,
resent constitution , In the manner provided
y section 2 of article xv of that Instru-
"
i"ent. .
A revision of the constitution could
ardly be made nnd adopted by the people
! iort of three or four years. Our present
onstltutlon was adopted over a quarter of
century ago , at a time when the state was
ew and only partially developed. Its capa-
Illlles , growtfi and needs were then little
nown or understood. New conditions re-
ulre newlaws. . The rapid growth and de-
elopment of the stale calls for a revision
f the law suitable to present conditions
ather than to a time when the population
nd property Interests were but a fraction
f what they arc today. "
NEED OF REVENUE REVISION
rewciit Inm * Incqiiltnlilc In Addi
to I'll I In re to Meet the
IteiiiilrenientM ,
"A revision or amendment of the revenue
aws of the state Is required In order that
uequalltles now existing may be abolished
, nd all shall bo required to contribute their
qultable and Just share to the public reve-
iiici ! . To what extent and In what partlcu-
ar feature Is left to your Judgment.
In this connection I would especially
urge upon your attention the wisdom of
nactlng a law providing for the collection
if nn Inheritance tnx. Such a law has been
n successful operation In many of the older
tales , havini ; the result of yielding largo
cvenues to the state , nnd Is found to be a
most satisfactory as well as just and equit
able method of raising revenues.
"Whether this legislature will feel wnr-
anted In entering upon a general revision
of our revenue laws nt the present ses
sion , or provide for a revenue commission
which may take tlmo to gather all useful
nformatlon obtainable , thoroughly Invcstl-
gate and consider all the complicated and
difficult phases of the subject and report tea
a future body for action , is left to your com-
) lned wisdom and Judgment to determine. "
The inequalities In taxation as between
he various counties under the present aye-
cm arc pointed out and also the Impos
sibility of correcting them with the present
Imitations regarding equalization. Ho
also points out that with the present mode
of assessment nnd the legal limit placed
upon the levy It Is with extreme difficulty
that enough money can be raised by taxa
tion to meet the needs of the state.
Sorao provisions are urged to be made
whereby the largo floating Indebtedness now-
outstanding may be gradually reduced until
finally extinguished.
The recommendations of the treasurer ,
made In his annual report , that certain funds
which are now Idle and useless bo trans
ferred to the general fund and for the lowerIng -
Ing of the rate of Interest to bo paid by de
pository banks to 3 per cent , are endorsed.
DEFECTS IN INSURANCE LAWS
Scvcrnl IiiHtnnem Whcrr Home Coin-
imnlea Arc Discriminated
"I Invlto your careful attention to the sub-
lect of life and fire Insurance. I am ad-
vlsod that under the provisions of the Insur
ance laws now- upon the statute bookp there
are two old-line life Insurance companies
which have Incorporated and are transacting |
justness In this ( state , and fifty life and acci 1-
dent companies which have come from other
states and from Europe for thfi purpose of
transacting business In this state. U fol-
ows that a largo life Insurance business Is
being carried on with the people of the state
of Nebraska , and yet the laws regulating
llfo Insurance are Involved In doubt nnd un
certainty. Life Infcurnnco companies arc
complying with fire Insurance laws , anil yet
the law- regarding fire Insurance specifically
provides that life Insurance companies shall
not come under its provisions. Life insur
ance companies , both domestic and foreign ,
are paying fees to the state provided In the
fire Insurance law , which appears to bo
brought about by custom rather than by
statute. It would ecem that the state
should have a well-defined and comprehen
sive llfo Insurance law , making ample pro
visions for the organization and business of
both domestic and foreign companies , end
containing such provisions nnd restrictions
as the wisdom and experience of the present
day Justify.
"It 16 true wo now have a fair assessment
llfo Insurance law , providing for the incor
poration of life companies on the assessment
plan and without capital. This act could
properly bo amended by providing for an
Incorporation tec of about $20 and a fee of
SO cents for agents' certificates. These pro
visions appear to have been omitted In the
original bill and , under the ruling of the
attorney general that such companies cannot
bo granted charters and certificates free of
charge , they have heretofore paid $50 for
Incorporation and $2 for agents' certificates ,
the same that Is required under the fire Insurance -
suranco law. It Is hardly right to require
companies In cur own state , which nro cn-
dcavorlng to start In business , to pay the
same fees as the financially strong and well
established companies from other states and
Europe.
Fnvom Foreign t'ompnnlrs.
"I am told by those wel. Informed upon
tha subject that the fire Insurance laws of
the state , which were mostly enacted In
1873 , fall to meet the requirements of the )
.
present day. One of Ihe objectionable
features pointed out is contained In section
8 , which provides that Nebraska companies
. .
may be organized for flva purposca , towlt :
Fire , accident , fidelity , bonds nnd llvo stock ]
Insurance , but no one company can bo ' "
lowed to pursue more than one of the five
lines of business mentioned. Foreign com
panies , however , are doing a business In '
.
'this ' Rtato embracing as many as seven dlf-
fcrent classes of Insurance. This dlscrlm-
Inatlons against our own companies works
no
good reason for Its continuance.
"Ilxperlence has shown , also , that com-
panlw doing fire and other Insurance busl '
ness hometlmes leave the state when they
have policies still remaining In force , and
that losses occurring after they are gene
require the Insured to follow them to some
other state and there obtain the relief
or redress to which he may bo entitled
under his policy of Insurance , This could
be avoided by requiring the foreign com
panies to make a small deposit of good
securities with the state treasurer , to be
held BO long as the company has a risk In
force In the state. U Is believed by many
that the law cow requires such a deposit.
but this teems to bo Incorrect ,
"U U l o recommended that the present
law bo amended so that nil companies of
whatsoever nature , from other states and
countries , ns condition precedent to their
doing | biinlne * ! ) In this state , be required to
I file power of attorney with the officer In
j charge of matters pertaining Insurance ,
appointing him ns attorney for such com
pany for the purpose of serving civil processes
In litigated cases. A resident agency law
should nljo bo enacted. There should be no
Insurance written on property In this state
unless by duly authorized agents residing
here.
4lv ( Off I'uny In .Ni-tirHsUn.
"I beg also to call your attention to the
great difference between the amount of
moneys received from Insurance companies
by this state and that received by neighborIng -
Ing states. It Is really surprising to note
the marked difference In this respect. This
peculiar condition results In the people of
this state contributing to the support of
other state governments without deriving
1 nny corresponding advantage to themselves.s
j The rc.-elpts in this state from Insurance
j business have seldom exceeded $20,000 , and
$15,000 or $10,000 seems to be nearer the
correct sum. The cash receipts from Insurance
suranco companies for the > car 1S97 In
several states are ns follows :
Nebraska J 17.131 M
Colorado 92.C43 CO
Wisconsin 1M.074 lit
Illinois I97.X13PO
Missouri , \ ! ! I9IS 00
Pennsylvania S7C6f , Oil
Kansas 74,71200
Iowa 1J1..147 W
Maryland K ,9I9 < V
Michigan 22J.697WI
Massachusetts o,13. ( X )
It Is quite evident from the foregoing
that we have by our own action deprived
ourselves of nn Income which Is received by
the states mentioned to our detriment and
disadvantage. To remedy this by suitable
legislation , I ask your careful consideration.
"The management of the business of fire
nnd life Insurance of this state has reached
such magnitude In volume and Importance
that provision might well bo made for a
separate bureau of Insurance.
"The anti-compact Insurance law pawed
by the last legislature was resisted by the
Insurance companies Interested , and an ap
peal was made to the federal court for an
Injunction against the auditor , attorney gen
eral and county attorney of Douglas county
to prevent a prosecution for a violation of
Its provisions. The Injunction was granted
and the case Is still pending In that court
without determination , although 1 am ad
vised that It was argued and submitted to
the court In February last. In the mean
time the Insurance companies are conduct
ing their business without regard to this
> * * "
REPORTS OF STATE OFFICERS
Ailinlnlntratlon Cii-iieritlly Coniineinleil
Some Xrw I.pKlilntliiii
Itrqiilrril.
Speaking of the reports of the various
state officers and superintendents of state
Institutions the governor expresses the
opinion that the affairs of the state have
been carefully looked after and asks for
appropriations for the coming blennium equal
to the per capita cost of conducting the
various Institutions during the last two
years. He recommends the construction of
a brick nnd ntone fireproof building for
the hospital for the Insane at Lincoln and
Instead of making the appropriation from
the general fund advises the levying of a
tax to create a epeclal building fund
The litigation growing out of the dual
private and state management of the Home
for the Friendless at Lincoln Is revleweft
and the governor points out that It has not
yet reached a final determination. The gov
ernor adheres to bis former recommenda
tion against the appropriation of state money
for the support of Institutions not entirely
within the control of the state.
A marked Improvement In the conduct
and management of all public Institutions
of the state , not purely educational In their
character , would. In my Judgment , follow If
a law were enacted abolishing different
boards as nt present constituted and making
provisions for the creation of one state board
of charities and corrections , which should
have complete control and supervision over
all auch Institutions. Whether such a board
with the powers which should be given It
to make Its work mo.it effective can be
enacted under our present constitutional rc-
strlctlons regarding executive offlcera Is
qulto uncertain.
MnniiKcnient of Ktntr I'rlnon.
"Tho condition of the prisoners and the
management of the prison affairs have
greatly Improved under the control of the
present warden. All prisoners , except those
disabled or In hospital because of sickness ,
are qulto generally employed at some useful
labor. In the cooperage factory 110 are kept
steadily employed , 95 In the broom factory
7 In the ehoe shop nnd the remainder , exccpl
cripples and the sick In general , work nrouni1
the buildings and grounda In operating am )
maintaining the Institution nnd In making
needed repairs and Improve monts.
"As shonn by the warden's report , there
was realized from prison labor during the
blennium $44,210.21 ; duo from contractor *
JIU01.2G. It cost the state , from legislative
appropriations , to maintain the Institution
for the blennium ending November SO , 1894
$97,104.77 , nnd for the blennium ending No
vember 30 , 1896. $42,142.93.
"The last legislature appropriated bu' '
SCO,000 for the maintenance of the prisoners
There has been used of this appropriation
$19,560.55. Three to four thousand dollars
will probably be required for the remainder
of the period for which It was made , leav
ing some $37,000 to revert to the treasury
Only $30,000 is asked for the coming bl
ennium. The Institution may , and probably
will , bo conducted for a less sum than la
asked for. Tills will depend largely upoi
the ability of the warden to make ad
vantageous contracts for the employmcn
of the prisoners , or putting them at some
profitable employment on behalf of the
state. The contracts now In force cxplr
during the present year and will have to h
renewed In some form or some other pro
visions made for utilizing the labor of th
convicts.
I , her Coiiiuiln loiier.
"My predecessor advised that moro libera
appropriations should be made for the labo
commissioner or the bureau abolished. I A <
not believe that It ehould be abolUUed. Th
operation of the bureau under the law
serves an exceedingly useful purpose an
Its powers and field of operation should b
enlarged rather than diminished. While
primarily , the law was Intended for th
purpose of securing Information relative t
labor and Ita relation to capital , and al
matters pertaining to the Industrial classe
factors In our social and economic system
It has been found wise , by practical experl
ence , to extend the subject of statistics an
the gathering of general Information to al
the principal Industries and business In
tercets of the state. In addition to the stalls
tics and matters pertaining to labor In It
restricted sense , the scope of the work o
the bureau has been broadened so as to In
elude statistical and other Interests per
talnlng to the agriculture and agricultural re-
gources of the state. Mortgage statistics
are under the present law forwarded to the
auditor of public accounts and by him com
piled annually. This work might morn
properly como under the supsrvlslon of this
bureau by a suitable amendment to the law.
The means at present for gathering stalls-
ntic * for this bureau by the assessors of the
different counties seem entirely Inadequate
and some more specific and dc-Anlto law
seems to be required before it will give the
I most eaUs.'actory reaulte.
1 "In this enonecUaa I beg to suexeil tint
GREAT ,
GREATER ,
GREATEST
A Xoiv ItiMiieil- Tim I Ouli'Mv Tint *
I'nlirtifcliH With I In- < il < MV
of ll.-nllli.
Wo Srnil free it Trlnl I'uckMKt * to All.
Weaker , paler , thttintr , day by day , no
nppotltp or strength , no desire for work or
recreation , nervous , peevish , sloeplcxH. dele
of hc.irt nnd sore of limb thexn lire ths
condition * of countless numbers of half flek
men nnd women anxiously uwnlttng s-omo
message of hope and cheer. I |
There Is no excuse for most people being
sick. There's a medicine that will euro
them. A medicine thixt goes right to the
, roots of the onuses of nearly all sleknes * .
j The nainof tills good medicine H Or. IMx
Ponlo Tablets. They put vitality Into weak
odle < makes people strong , qulctst th *
lerves. restores nmbltlon , drive * headache
way , gives you an appetlto , s oaten * the
tomnch nnil breath , and forever mnnves
he thousands and one tlltlreisliiu Ills ,
noe-s this seoin lmpo lble ? If you slop
nd consider that nearly ovcry dlseas * . m >
natter what the name by which It In called ,
onu's from the kidney ? , Impure blood and
Inordereil Tver . It will be plain to you.
Or. UK Tonic Tabletllrst of all. aid the
< lilne\H Next tb ° y purify the blood. get-
Ing Into every MK anil little vein In the
oily , driving nil Impurities out of the H > 3-
cm. Finally they regulate the liver per-
I'c'tly. milking It perform all Its function *
xnctly as nature Intended In doing these
hree things , It removes the cause of nearly
II the Ills of men am ) women.
If you are suffering from excesses of any
itlml overwork , Intemperance , etc. If you
ire tired and don't know what In the worlil
ills you If you nre dizzy , weak and food
lest badly In the stnmncli If you belch , feel
lervouy , lm\e hot and cold spells alternate *
v your life Is In danger , but Dr Dlx Tonic
" 'abletH will ( iiilckly put you on your faot
gain. No difference what you think your
Iliease may be no difference what the tloc-
ors call It , this medicine Is what you need.
Ten minutes after you take the first tntilnt
ou'll ftel better. Or , nix Tonic- Tablet *
ire for Hiile by all druggists at BO cents a
box. Hut wo want to Introduce them to
very reader of this paper ninny of whom
ieod such u remedy. For a limited time the
) roprletors llaycs & Coon , < OS Hull Uulld-
nir , Detroit , Mich. , will ; nd a trial package -
ago free by mail to nil who will eml their
naino nnd address ( enough to convince tha
most skeptical of their great merit )
Send at once and be won and happy again ,
Tell your frlemlH and neighbors about this
nest liberal offer.
he means of gathering crop statistics of ths
state do not appear to meet the requirements
of a live , up-to-date agricultural state Buch
an ours ; nnd the results attained are not of
sufficient benefit to Ilie state. In making
known her unsurpassed agricultural re
sources and growth. The state board ol
agriculture In Its annual reports covers tha
ground quite well and gives Information of
much value. Hy the time these publications
ire Issued , however , the Information therein
contained becomes more or less out of data
as a matter of news , and Is morn useful as
a matter of reference. What Is required Is
some proper means for gathering Informa
tion relative to the different crops cultivated ,
their condition and prospects , the magni
tude and kind of crops raised from time to
time. Such informatlcn would bo Interest-
lug and Instructive and be given to Ilia
public , and especially to those Interested ,
by means of the public press and bulletins
Issued for the USD of the people. "
The law creating two agricultural experi
ment stations Is cited and also the fact that
no approprlalon has been madeto make the
law effective. The governor recommends
that such an appropriation bo made as 0110
of the most effective methods of furthering
the development of the state. The Impor
tance of encouraging Irrigation Is also
pointed out as n means of rendering a portion
tion of the state much ruoro largely and
certainly productive.
The necessity of more effective lawn for
the protection of llvo stock from contagious
diseases Is urged upon the attention of tha
legislature.
REGULATION ) F RAILROADS
n lleeonimeiiileil In the Ilno
of thr Mnxlmnm Unto
of
"Tho supreme court of the United Stales ,
In an opinion handed down In March last by
Justice Harlan , held the act of Uie legisla
ture of 1893 , popularly known as the maxi
mum freight rate law , to bo Inoperative In
that It contravenes the provisions of the
fourteenth amendment to the United StatcH
constitution , wherein It Is declared that no
state shall 'deprive any pcrfron of life , lib
erty or property without duo process of law ,
nor deny to any person the equal protec
tion of the laws. '
"Tho opinion Is ono of the 'roost Important
and far-icaching ever rendered by that hlgn
tribunal and takes Its place besldo. cele
brated cases In the past concerning great
questions of public Importance affecting In
terests extending throughout the republic.
"I have the tlmo only to speak brlelly of
some of the more prominent features of
this celebrated case. The opinion holds ,
without qualification , that the legislation
under our constitution has the authority T > y
appropriate legislation to establish rea
sonable maximum charges for the carrying
of freight by railway corporations between
points within the state. The court snys :
'It cannot bo doubted that the making of
rates for transportation by railroad ccr-
porntlons along public highways , between
points wholly within the limits of the
state , Is a subject primarily within the con
trol of the state. ' The court says In sub
stance , however , that the rates thus fixed
must bo rea&oniible and must not be - >
low ns lo prevent the corporation hought
to bo regulated from earning a fair return
upon the value of the property used for the
public service , after deducting nccussiry
operating expenses.
"Tho Judgment of the legislature an to tha
reasonableness of the rates thus fixed 4s not
conclusive , or , In other words , while the
Ifglslaturo may establish rates , which
In Its Judgment are entirely reasonable and
which prevent extortion or unjust exactions
In local freight rates , the controversy prop
erly becomes a subject of Judicial inquiry.
Suits may bo Instituted and the question
tried In the same manner as other con
troverted questions of law and facts In the
courts.
KntKlril to Knlr Ilrturiix.
"There ought to be noconlroversy , and I
think there Is none , regarding the right of
railway corporations to earn a Just return
upon the fair value of the property used
In the public service , No fair-minded per
son desires that they shall be compelled by
statute to serve the public nt a loss or to bo
required to accept for their service charges
that would yield no remuneration for the
service rendered.
"What are just and reasonable rates Is tha
difficult problem to solve , and regarding
which there may and apparently docs exist
a wide difference between the legislatures
and the courts. DonbtlepH thin question ,
will be answered by each Individual , largely
from the standpoint of observation occupied
by him nnd the standard or t'Uitlo , which
hn shall set up to aid him In Its determina
tion.
"What are the factors which justly enter
Info a rightful determination of this ques
tion ? How la the fair value of the property
used for the public convenience to Ira de
termined ? Shall It bo its reasonable , fair
nnd just value at the present time , or shall
the cost of construction and equipment < ) o-
tcrtnlno ? Shall it be the true and actual
capital which ha * been Invested , or tball all
ULU atockfl * n4 bnmU Issued , rcgardleg * of