UMAJiA UA1LX lifcfc: -FRIDAY. JANUARY . IM.
Shallenberge
r Sends His First Message
New Governor Urges Passage of Bank
Deposit Guaranty Law by the
Legislature Without
Any Delay.
ONE-FOURTH OF ONE PER CENT
Amount of Tix to Be Levied on Bank
, en for Porpoie of Creating the
t Fund ii Fixed, Tentatively
at ThatTifnre.
jy the Senate' andvHods ; of. Jlepresenta
tlvca of tha Thirty-First ,8lon of the
Nebraska Jjetfalatiire: L'. 1
I congratulate you upbn being called to
erre In ytJur legislative capacity at a time
when "th tat ta .enjoying Tpenarai pros
tierRvv. Nature, Ja keen kin arid her. field
bountiful, On" te?plei ar -Industrious and
the dewiand , and' prtcear for their products
satisfactory. Our population la not dense,
'-probably leaa than 1,600,000 of people dwell
within our border. A study of the record
of our bureau of statistics will show how
marvelon haw been the achievement of
theee later year. So rich our anil, so
matchlea oar climate, ao wonderful' the
Industry of our people that here upon Ne
braska aoll American civilisation In It
highest development pllea up eaah year a
larger aurplua of uaeful product than a
like number of people can produce upon
any other apot on earth.
With s clearer of vlalon and under
atandtng aa ta the- purpoaea and poeslblll
t.Va 'of legislative enactment, a ateadfast
and rucoeesful people will not expect of
you Impossible things or unreaaonable law.
Having wrung year after year great rtche
from a generous soJV they now know that
they oan compel prosperity to abide- with
f them always. They will,' However, expect
of ,the party whose' member control thla
senate and the house, the apeetflc leglsla-
tlon pledged In the platform upon which
you are elected. .
i To stamp thea promise upon the statute
books of our state aa written law ahould
be the purpose, the constant purpose, and
I sincerely hope the accomplished purpose,
of thla legislature.
,,'X Wish to Imprest .upon both houses the
strength and directness with which this
mandate for certain legislation comes from
' the people. After Belong period of con
tinued and complete control of state affair
. bjr one party, the cltlsenahlp of this com
monwealth has placed another political or
ganisation In tower in'; the' legislative and
executive branches of our government.
For myself. J do not feel that there Is
any personal victory In this change. It Is
rather triumph of Ideas; a verdict In favor
of better , laws, a condemnation, of certain
unsatisfactory methods, a demand for
amendments of legislation already enacted
nd against which' the people complain. i
.Cirtilt the Legislature
The basis tvt thla Opinion Ilea. In the
. significant fact that while the executive
branch of the 'party placed In power re
ceived a very jmodest plurality, the legis
, laUve majority of the sejne party, la over
whelming. The electorate of Nebraska la
"-!lln!y Jnt,1Can4;independent, as
Ihai 'of any other state, in the republic.
They know that the executive can' put' en
force your edict., tha legislature must make
the laws. Understanding this, they gave em
phatic endorsement to. the legislative de
partment of tha party now responsible with
power. Tha party, whose platform promised
the legislation which I shall urge and the
' people gave their approval with a force
that can neither be misunderstood or
dented. ,
Governor Sheldon baa detailed to you the
result of his administration of atate affair
and you have listened to his recommenda
tion. I urge that you give earnest and
careful consideration to all he has said. I
a hall not go further Into a dicuslon as
to the needs of the different state lnitltu-
. .tlon and department, but refer you to the
reports and recommendation made to the
governor by tha superintendents and heads
of departments for yeur Information and
guidance. v.
' Work for tha Lawmakers.
- I shall briefly call your attention to leg
islation, the proapect and hope of which.
In my opinion, ha brought about this
change In the control of the executive and
legislative department of state govern
ment. It la first to be noted that' "no new
or radical legislation Is asked for. Every
suggestion la but to amend, correct, or im
prove soma existing law.
As a general rule, we already have too
many law Incumbering our atatute book.
Many are good, aome Imperfect, a few bad.
The good ahould be let alone. . the Imper
fect! one cured, tha bad repealed. What I
needed, la my Judgment, I an honest and
fearless enforcement of the laws that we
now have, rather than a constant cry for
new kvwa and new laws aa an excuse for
' Inaction and delay: While upon this sub
',. Jsct, I would recommend the appointment
. of at qualified commission to revise and
Improve oar present, code of law,' so that
Jutloe may be more' easily and rapidly ob
tained in our court. That this Is sorely
needed Is a point upon which all our best
legal author! ties agree, and I recommend
It to your careful consideration. ,
The matters to which I wish to call your
especial attention are not numerous, but
I believe thtm to be Important. ,
I shall present them 'to you under aepar.
; fcte heads..
Impravemeats la Banking; Law.
Andrew Carnegie has said. "America has
tha worst banking system in the world."
I scarcely think the fact warrant such a
statement, but will venture the opinion that
wa hava not the beat system that it is
possible for us to obtain, and nothing but
tha beat ahould be good enough for the
people of Nebraska. Our present law is
very much In advance In all that perulna
to safe and proper banking to the law
whick preceded It. No. one a 111 venture
le maintain' that tha one now in force, ia
perfect. ' therefore, we are warranted In
aaking for still further Improvement. The
primary purpose for the establishment of
bank ao far tha public ia concerned, is
first that tha people ahall have a safe place
to depoeit their money, and second, that
those who need money may conveniently
obtain funds , upon proper security.: after
the money abaA have been gathered to
gether by the banking vorporatlon.
i The Ideal system of banking will guar
antes to depositors the absolute certainty
tf the . return, of 'every dollar ' itepoiited,
and -thla will insure the greatest possible
volume of loanable fdnds in banks for the
needs ef business. The state and - nation
should ace to It that . vry aafeguard snail
be provided for the severity of the depositor,
since Uy permit -and authorise the re
ceiving of- cVtpoeila under the sanction of
a' charter granted by the state -:
ftecogalelBg thla Implied obligation, the
state baa alreadr provided Jn, many wae
by useful lawa lor the Insurance and guaranty-
as the laAe-of 4epoanore. whe place
their money In banks operating under it
laws.
leases Very Slight.
From time to time these guaranties hava
been Increased until tosses to depositors ar
rare Indeed. The report of the comptroller
of the currency for 1908 shows that a tax
of one twenty-sixth of 1 per cent levied
upon, the deposits in national banka dur
ing the forty-five years thst that system
Has' been in existence would have raised
a sufficient sum so that no person who
had trusted his money to a national bank
would have lost, a cent.
'A study of the figures of our awn state
banking department 1 shows even a more
satlafaetorv condition. Onlv iriirina- the
last eight years has the law provided for
a complete report from receivers of failed
banks. During this ferlod a tax of less
than one-thirtieth of 1 per cent levied upon
the deposits In our state banks would have
raised a sum sufflcent to hava Insured
every depositor against any possible loaa
With these facts before us. I do not hes
itate to say that it is a reflection upon our
American civilisation and business math
ods to longer fall to provide an Insurance
guaranty fund and banking law which
will make every dollar deposited In a
Nebraska bank absolutely sure of being
returned to lta lawful owner upon demand.
Certain deposits are now secured In state
and national banks by safeguard in addi
tion to the guaranties which the lsw ex
acts of the banker to protect his individual
depositor. The county, the atate and the
nation having found by experience that
the securities which the law provides for
the ordinary depoaitor are at times in
sufficient and therefore required that the
banks shall at their own expense deposit
bonds a additional security to protect
them against any possibility of loss. There
can be no rule of business ethics which
makes It Just to secure the state and the
nation and deny the same protection to
the individual depositor. The only ques
tion ' for you to decide, It seems to me,
Is, aa to whether or not the proposed ad
ditional guaranty fund can be created with
the certainty that It will provide absolute
security to the depoaitor and not place an
unfair burden and responsibility upon the
banker.
Hew It Can Be best.
I believe that the desired security can
be obtained by levying a light tax upon
the capital stock of each bank transacting
business under our laws, thus providing a
guaranty fund to pay promptly any pos
sible loss to a depositor by reason of tha
failure of a atate bank. The amount of
such tax to be a certain per cent of the
average deposits as shown by the repbrta
of the department of banking, and pay
ment to be made at stated periods and for
a fixed amount. ,
The volume of money supposed to- be In
circulation In the United States on October
1. 1908. according to the latest report of
the . National Banking department- waa
I3,S78KI0.000. . Lese than one half of this
esormous. sum Is accounted for 'by report
ing bsnks of every description, or aa on
deposit in tha national treasury. Not one
tenth of that Portion which la nnainiiifH
for ja serving any useful purpose In the
economy or modern business methods. If
one-half of It were returned to the bank
it would enormously expand the business
ana wealth or the atate and nation and
raise the banking Dover of the TTnit i
States until it would exceed that of the rest
of the civilised world. To bring this great
tdle fund inlo active channels of trade Is the
problem for the bankers and legislators to
solve. If loss of bank deposits is made a
thing of the past, I believe a great step in
this direction will have been accomplished.
Experience la Insolvency.
The reports of the comptroller of ths
currency and of our own Department of
Banking furnish us with data which ahow
that the coat of an adequate Insurance
fund would be e very small charge upon
the profile of the bank. A totat of 4
national banks have become Insolvent dur
ing the forty-five years that the national
system haa been in existence. Against
these banks. 1175.068.171 In depositors' claim
have been allowed.' Four hundred and one
Insolvent national banks have been liqui
dated and the receivers discharged. There
has besn $182,182,31 collected from the as
sets and stockholders" liability of thea
lanea institutions, or more then 100 per
cent of depositors' claim Th. ......,.
of liquidations and the payment of claim.
omer man tnose of depositors, has reduced
the amount collected until nniv atw 7a
per cent of the amount due depositors ha
.uiu.uy ueen returned to them. In later
years, under better condition, tki.
centage of loss haa been greatly reduced.
aouneen national banka became insolvent
during 1908 and have been HmiM.t.H
per cent of their deposit hava been re-
lurnea to meir creditors.
Our state department of hanki. t... .
complete record for the last eight year
showing-the result of receiverships of in
solvent state bank. Thla record shows that
since 1WU a total deposit of il6,264.:t ha
oeen pieced In Jeopardy by reason of the
failure of atate bank. From the aassts of
these Insolvent Institutions depositors'
cjaims. bave been liquidated until the bal
ance unpaid for the entire period of eight
yeara is liw.w.w. 0r .n average annual
Joss of about to depositors. Credit
able as this showing is. 1 feel quite cer
tain that with a number of Improvements
which can. be mads in our present law,
the percentage of loas can atlll be mate-'
rially reduced. The minimum eanltl re
quired for the incorporation of a stat
bank ahould be increased to at leaat til..
000. Bank examinations should be made
twice a year inatead of once, as now re
quired. Kxamtnera should be assigned to a
certain territory and tbua eventually would
become familiar with conditions and se
curities In that locality and would acquire
the neoessary knowledge aa to the worth
of the bill receivable of the banks which
they would examine, which la the essential
thing in determining the aolvtncy of any
banking corporation.
B altera ghoala Share Ceatrel.
Under a guaranty p,n which would make
the banka of the state sustain the losses
ef the entire system, the bankers should
be given a share In the control of ths
depsrtment. The present banking board,
which le composed of tfc-e officers elected
for sn entirely different purpose, should
be abolished aud a nonpartisan, board as.
tabllahed to be composed of three member
appointed by .the governor, each of it
members to have had at leaat five years'
practical exptrlence in banking and at
leaat two or thm to be actively engaged
in, that business at the 4!me of their ap
pointment, a bank commissioner should
be appoints by the governor with ths p
proval e banking board, who should
have hid an experience In the banking
business equhaient to that required of a
member of the board, and he should select
the necessary number of examiners with
the approval of the board of control. The
banking board should sit In seselon st Lin
coln at stated periods and be paid for the
actual time In session. They should hare
complete control of the Issuance of char
ters and the general administration of the
banking laws. It ha been urged by critic
of the guaranty of deposit plan that It
would lead to the establishment of too
many banka This would be a serious ob
jection If auch were the result. It would
greatly strengthen our banking system If
the banking board were empowered to exer
cise a proper censorship over the issuance
of bank charter.
Tha possibilities of profit to be made in
taking other peoples' money on deposit,
loaning It to the public and keeping the In
terest thereon Is ao alluring that at times
the number of bank increase more rapidly
than the need of business require with
consequent overloading, hasardous risks,
extravagance In buildings and expenses,
with the result that In lean years failures
occur and Innocent people suffer. The over
tssuanoe of charters can be In a great meas
ure overcome by Increased requirements as
to the amount of capital stock necessary
to be paid In by the stockholders before
a charter ahall Issue. The amount re
quired In each Instance should bear a proper
proportion to the population of the town
or city In which the bank is to be estab
lished. As an example, showing the man
ner In which requirements as to capital
effect the number ef bank charters issued,
1M2 national banka have been' organised
since 1900 when the requirements of capital
atock waa reduced to $36,000 as the mini
mum. This 1 812 more bank than the en
tire number In exlatence when the law waa
changed In thl respect The reduction of
the minimum capital atock requirement to
$as,000 haa doubled the number of national
banks In eight years. A substantial In
crease In the amount required as a mini
mum capital for the establishment of state
banks would have a salutary effect In keep
ing the number of banka within a satisfac
tory , limit and also provide greater se
curity to the depositors.
Compared ta Oklahoma.
It haa been claimed that In the state of
Oklahoma the guaranty of deposit law ha
led to the Issusnce ef an excess of bank
charters and the establishment of too many
banks with the minimum capital. I have
examined the last report of the comptroller
of the currency as to the organization of
national banka In that state to ascertain
If there might not be general causes which
have led to a rapid Increase In the issuance
of bank charter In Oklahoma, auch as are
incident to the settlement and development
of a new state, and having no relation to
thla guaranty law. I find by way of com
parison that whereaa since 1900 there have
been eighty-five national banks chartered
In Nebraska, eighty-four In Kansas, forty
three In Colorado, twenty-four In Wash
ington and twenty-six In Oregon. In Okla
homa during the same time there have been
established 812 national banks, 2o3 of which
have the amallest capital which the law
permit.
Details of the Plan.
As to the smount of assessment to be
levied In order to provide an adequate fund
for the prompt payment of depositors of
Insolvent banks, I would suggest that one-
fourth of 1 per cent be levied upon the de
posits aa, shown at the last statement pub
lished prior to the commencement of the
operation of the law, and this assessment
to be followed with additional levies in
like amount at periods of six, twelve snd
eighteen month t'neresfter.. After the ac
cumulation of t guaranty fund equal to 1
per cent of tiio average deposits In the
guaranteed banks, an annual tax of one-
tenth of 1 per cent ahould be levied, because
it Is necsesary under a proper system of
Insurance that the prosperous years should
pile up a surplus fund to provide for the
inevitable demand of less fortunate times.
As an additional security against any pos
sible emergency, such as extraordinary de
mands upon the fund, the board ahould be
empowered to levy an assessment of not
to exceed X per cent of the average de
posits In any one year. While tbla aasess
ment might never be levied, the power to
use It would have a sustaining effect in
times of possible panics. Buch provisions
would result in accumulating In eighteen
months, with the average of deposits re
maining In state banks aa at present, a
guaranty fund of 6.351. This would be
1137,097 more than the entre amount of
deposits Involved in bank failures in this
tt In the last nine years. It Is three
times the amount that would have been
neceasary to have paid upon demand all
the money due depositor in failed bank
during the year with the heaviest failure
of any In the last decade. It ta seven tleins
aa much as would have been required to
pay Immediately all of the deposits tied up
In state banks during any one of the last
even year. With the additional amount
that would be contributed to such a guar
anty fund during the yeara when no fail
ure would occur and added to thl the
power to raise in sny one year by txtra
ordinary aasrasment six times aa much as
haa been placed In Jeopardy during the
worst year that we have experienced aince
the preaent law was established. It Is my
Judgment that such a system would be a
rock of refuge for the banks and for the
people In the fiercest financial storm that
may come. These comparisons you will ob
erv are based upon the experience de
veloped under our present law. With the
additional safeguards and requirements,
which I have indicated, the demands upon
a guaranty fund ahould be still lighter In
deed, your first purpose should be to so
urround the banking business with safe
guards and practical regulationa aa to
make our system '.he safest and best In
the republic aside from any sustaining
force of a guaranty fund, and thus you will
make the demands upon your guaranty sys
tem so light thst It csnnot fall. At this
time I want to congratulate aud commend
the management of our present banking
department for the splendid results it has
eeured under the present law. it is the
showing of exceedmgly ,msl! losses sus
tained under our present management and
system which give us confidence to be
lieve that with Improvements In our laws
as to capitalisation, management and con-
IuLVu!LbtHtr "how,ne c"n be "-
iMIshed. The proposed guaranty fund un-
?hn,!,.UC!! V,,em " hM bten IWW
hould be d.po.ited with the t.te bank.
under regulationa imi1ar to our present
UU depositary law. or. with uch add"
tlon.l aecui-ity a the hgl.i.ture may re
quire. The propo.ed law .hould provld.
tnat national bank, m.y ,V.U them.elve.
of ths advantages and proteciion ef tl
!n!r"n!r Un1 U''drr UUW 'vision,
and .atiafaetory .Lowing ., to , ,.,.
tlon Of auch bank, to the banking ijo.rd
The banking board should be en,poW.
lH fl ,he of interest- "be
paid depoaitor. by h.nkin corporation,
operating under the guaranty of depo.it,
law. or. if thl, be thought too great a
power to confer upon them, tie rate
ahould be fixed in the statute by the
leglalature. I ba. .one Into the m,er
of these proposed thungea in our banking
law somewhat fully, bee. use the legi.le
tlon a.ked for la new la oert and tliara.
for has met with aome opposition. A a
ls.t word upon thla, subject I w ant to
Impress upon you to the utmost the re
sponsibility placed npon you in dealing
with thla question and te urge you te re
member that In whatever you may do,
you must be fair alike to the banker and
the depositor, and the law enacted muat
stand the severest tests of business experience.
Law.
Our present revenue law should b
amended Insofar a la necessary to re
store to the people the right to elect the
precinct assessors and to limit in part
at least the arbitrary power which the
present law give to the State Board of
Equalisation and A.aessment, so that the
people shall have restored to thm some
voice In determining the amount of taxea
they shall be compelled to pay to sup
port the etate government. It appear to
me too great a gift of power to give to
the atate and county boards the right to
determine the amount of the levy which
shall be laid upon the. property of the
citizen and at the same time empower the
atate board . to determine through lta
mandates to the county assessors snd
their deputies the valuation that shall
be placed upon the property of the tax
payers. - When we consider that the mem
bers of this all-powerful Board of As
sessment, acting In their official capac
ity aa the heads of different state depart
ments, are authorised to spend the money
taken from the pocket of the people
by the force of thl same law, the dan
ger lurking in this excesa of power be
comes more apparent. It ia to be er
marked that different state department
have commended the preaent law because
It provide much money for their use. It
I generally to be noted that those who
pay out money which others must pay
in view the magnitude of the amount to
be expended with greater equanimity than
those who have to provide it. The cost
of our state government has Increased
enormously In recent years. I wish to
Impress upon you that funds ahould be
provided to meet every legitimate demand
of the government, our different state In
stitution and our schools, but every dol
lar that come out of the treasury must
have been paid in by some taxpayer and
the great bulk of the state' Income Is
dug out of the aoll by the unremitting
toll of tboae who can ill afford to pay
for extravagance or; unneceasary expense.
Rallroaa Cammlasloa.
The railroad commission should be au
thorized and empowered to appraise the
physical value of the public service cor
porations of the state, and to control their
debt making power. If they have- that
power now, as some maintain, the legisla
ture should provide the meana with which
to pay the cost of such an appraisement,
A determination of the actual value of the
property of these corporations must be the
starting point of any effective attempt at
rate regulation. I believe that adequate
funda can be provided for this purpose by
requiring all corporations doing business
within the state to pay a small annftal li
cense fee into the state treasury. The
right to Incorporate and operate under
our laws Is a valuable consideration and
the power and protection given entitles the
state to a proper report aa to the condi
tions of auch corporations, together with
a fee commensurate with the privilege
granted. Such a law in other states brings
a sufficient revenue, to warrant its enact
ment by thla legislature and the devotion
of so much of the fund, so provided to the
purpose of obtaining si proper appraisement
of public . service corporations would be
entirely proper because In any event cor
porations ahould be required to pay for the
expense of examination and valuation Just
as a bank or Insurance company Is now
required to do.
Home Itale for, Both Omaha.
The cities of Omaha and South Omaha
should be given complete local self-government
under charters satisfactory to them
and to you. First, because It Is unamerl
can to deny thrm the right to rule and
govern themselves In all matters pertain
ing to municipal affairs. Second, it is to
the best interests of their cltixenship that
they ahould have placed upon them serve
the responsibility of the proper conduct
and administration of their own affairs. It
is Inconceivable that theae two metropolitan
cities, whose progress and devolopment Is
the pride of the state, are the only com
munities within our commonwealth that
muat be ruled in some of their principal
departments of municipal government by
an abaentee overlord. I am satisfied that
you will carry out the will of the people
of these two great cities a expressed
through their representatives In this legis
lature. Primary Lav L'aaatlafactory.
Our present primary law I. unsatisfactory
and unfair in many of ita provisions. The
expense to the state in holding a alate-wlde
primary la enormous, and unless the elec
tion results In registering the will of the
party majority of those voting ond placing
better candidates before the people than
the convention method, the benefits of the
kiw cannot be aald to warrant lis cost.
Under the present law, the accidental al
phabetical position' of the candidates named
upon the ballot Is at times more potent in
obtaining nominations than merit or abil
ity. The number of namea required upon
the petition of a candidate for a state of
fice. Is grossly insufficient. The cost of
elections both to the candidates and the
state is greatly Increased, It la doubtful
If the average elector will ever have the
required acquaintance with the long list
of candidatea for the different office upon
the ballot In a state-wide primary to In
sure intelligent selection. I would suggest
to you - a county primary to nominate
county officers and delegates to a atate
convention. The state convention to select
two or more names for each office to go
upon the primary ballot, and to make the
party platform, which ought to be Issued
in advance ofthe primary, Inatead of sub
sequent to it, aa at preaent. Tbe plan of
the preaent law for organizing the parly
machinery, ia not particularly calculated
to produce good results, nor 1 It fair In It
provision to the different counties. In
the lest analysis, no law can be con
sidered satisfactory unless It accomplishes
the things it waa framed to do, and I
cannot believe tbe present primary law has
public approval Judged by this standard.
It should either be amended materially in
it provisions, or repealed.
Administration of State laatltetlons.
I would suggest that the constitution be
so amended that a nonpartisan board of
control could be created to be appointed by
the governor and have conferred upon U
the entire management of our various state
institutions. The slate Institutions should
be removed from politics aa far aa may be
done and merit alone ahould determine the
right of any peron to eerv the state in
the different departments inuOe subject to
the board of control. This board. In my
opinion, should consist of three members
and have at Its command the atate account
ant and a qualified purchasing or bdlneaa
agent, w no ahould have a general knowl
edge aa to machinery, material and con
iru lion contracts and of all matters of
business coming before tit boerd. This
bosid of control should purchase the sup
plies for all the slate institutions by open
competition among thoae desiring tu sell
le the state. Tbe. piaciKs ui niainiamiut
is mow ta (2im)i
Matters of great moment to the people of Nebraska will
be discussed You should be in daily touch with them
It's your business. It is not a private affair of the
members.
H. H. PHILPOTT and
G. F. FIS1EH
Two of the best pasted newspaper reporters in Nebraska ;
are daily writing the history of the Legislature for.
The Omaha Bee
You cannot keep thoroughly posted on what is happen'
ing unless you read an accurate account each day
i The Omaha Daily Bee,
Omaha. N.
It will be mailed you three months for $1.50
a cash fund at the various stat lnatitu
tlona ahould be abolished and the business
of the state so far aa It appllea to the gen
eral conduct and administration of the dif
ferent state Institution should be thor
oughly eystematlxed. For the first time
in a number of years the state Institutions
and departments for which the governor
appoints the officers and employee have
passed into the hands of an executive of
another party than that of a number of
the preceding executives, who have been
responsible' for them. In making what
changea I contemplate I have urged upon
those whom I have selected certain salient
things. First, that they shall accept their
positions with the understanding that they
hold them only upon the condition that they
render to the state satisfactory ' service.
That no salaries are to be Increased nor
new offices created, unless authorised by
the legislature. To employ no one not ac
tually needed and to exact full time, cheer
ful and effective service from every person
In ths employment of the stata
Salary Instead of Fees.
The clerk of the supreme court and all
other officers of the stat and county gov
errn.ents who ijow receive and retain the
feea paid them by tlo public should be
plsced upon a fixed and reasonable salary
and all fees and moneys received by them
should be cover -d Into the state or county
treasury. The fees charged In every In
stance ahould be sufficient, so that no loss
would be sustained by the state or county
by reason of litlgition upon the part of
private parties.
I would suggest that a proper appropri
ation be made to assist in the worthy and
patriotic purpose of erecting a suitable
monument In thla city to the memory of
the martyred president, Abraham Lincoln.
Both the time and the place seem espe
cially appropriate, a. the one Is the cen
tenary of his birth and the other beara
hi. honorable name.
In the nu.tter of appropriations, 1 urge
you to proceed with caution and to act
upon your verv best Judgment. The ex
penses of the state must be kept within Its
Income. Those responsible to you for esti
mates of expenditures for the blennlutn
for which you must provide the necesaary
funds ask for more money than the ex
pected total income of the state. Do not
forget that the men who have sent you
here have to pay the bills of expense snd
expenditures which you shall allow. Be
generous to our schools, but not extrava
gant. Large appropriations or Increase of
salaries rarely if ever bring better service.
There are doubtless other matters which
this legislature ran take up with benefit
and profit to the people who have Bent you
here, but I feel confident that If you pro
vide satisfactory legislation relating to the
questions to which I have referred, you
can go home with the certainly that you
will meet a satisfied constituency. With a
firm reliance upon the wisdom and Judg
ment of this legislature and a hope that
with your assistance we may together In
some fair measure fulfill the hopes and
meet the expectations of the citizens of Ne
braska who have trusted us with power, I
submit these questions to you, gentlemen
of the hoi'se and senate.
LECTURE BY BISHOP M'INTYRE
Falr-Mard Audience Braves the Cold
to Hear the Distlngalsbea
Dlvlae.
Bishop Hubert Melntyre of the Methodist
Episcopal church addressed a fair sized
aud highly appreciative audience at ths
First Methodist church Wednesday even
ing on the subject, "Buttoned-L'p People."
A more conventional topic for the lecture
than the quaint phrase from Dickens would
be "The Philosophy of Human Happiness,"
which Bishop Mclntyie says is clouded and
warped by the buttoned-up-ness of the
world, known a selfishness in the home,
excluaiveneaa In society, prejudice in busi
ness and blgtory In religion. Touching
hardly at all upon Intimate matters of doc
trine and theology, the address waa never
theless religious in nature, although keen
wit and choice humor enlivened it at all
times.
More than once the speaker was stopped
by hesrty applause, specially in recognition
of novel snecdotrs and clever illustrations.
or after one of those periodic and highly
tense and vivid hits of oratory that put
Bishop Melntyre among ths great speakers
In the American pulpit today. He spoke for
fully two hours, with remarkable vigor
and power of holding the attention of his
hearers. In spite of the fact that he ha
grown elderly In the work and ia remem
bered by older citiaetis sa a strong speaker
over twenty years sgo. -
With a vivid description of the famous
Chicago fire, and following with minor
mention of the other great catastrophles of
recent ear. including tit Italian aeismia
disturbance,- and the story of how people
In all parts of the world rr'ond with help
and sympathy for the suffering of tnclr'
feiloW bviiiss. liiahou Melntyre duclnred
that the castrophtse wer worth all they
coat because they brought people together
and made all mankind one brotherhood.
COUNTY BOARD'S GOOD RECORD
Flalahea Year with All Bills Paid ana
Cash Balance la Every
Fa ad.
With sn all-afternoon and all-evening
session the old Board of County Commls
slonera finished up Ita business and made
way for the new board, which assume
charge of the affair of the county today.
Resolutions of commendation for the re
tiring member, A. O. Harte and W. O.
Ure, were passed, aa waa also one for
Chairman Kennard, who reaponded by say
ing that this waa the first board which
had ever retired with every bill paid and
with money In every fund.
The $1,000,000 bonda for the new court
house were sold at private sale, $800,000
worth going to the Board of Educational
Lands and Funda at par and accrued in
terest and $200,000 worth going to N. W.
Halsey & Co. of New Tork and Chicago
at par and accrued Interest and $2,01t.66
premium. The school money will be
available when wanted on sixty day'
notice and the $200,000 will be available
at once. O. w: Hoobler. the Omaha rep
resentative of N. W. Halsey ec Co., rep
resented that firm. The bonds are at 4
per cent and the board congratulated
Itself and Douglas county on the alxe of
the premium.
The board overruled the remonstrance of
E. E. Thomaa against the granting of a
aaloon license to W. H. Warner. Forty
sixth and Q afreets and granted the license.
Mr. Thomaa gave notioe of appeal.
Architect John Latenaer aaked advice of
the board on the matter of furnishing blue
prints and specifications of the new court
bouse to those requesting the earns, that
they might bid. Although the advertisement
ha been running but three day Mr. Laten
aer said that he had over thirty applica
tion. The notice says theae will be fur
nished to contractors who send a certi
fied check for $50. and aa the blue print
are quite extensive and the electric print
ing machine can print but one set a day
Mr. Latenaer wanted to know what to do.
He estimated that at the rate they were
being requested over 100 applications would
be received, and aa they coat $20 apiece, he
wanted to know what to do. He was in
structed to us his own judgment and to
furnish to the contractors fast they
could be prepared.
The board bought a high-wheeled auto
mobile from the Holmea-Adklna company
of South Omaha for $900 for the u.e of the
county surveyor.
The paving on the Calhoun road, th
Iverton road. West Q street and West
Leavenworth was accepted from th. con
tractor and the final eetimate of th con
tractor waa allowed in each case.
BRIAN'S BOND SECURED HERE
National Fidelity aa Caaaalty Cam
pany Gives fl.OOO.ODO Seearlty
for KTew Stata Treaaarer.
L. G. Brian, who waa sworn in today
aa state treaaurer haa secured a bond for
$1,000,000 given by tha National Fidelity
and Casualty company of Omaha. This
company haa reinsured th bond in ten
other companies, the granting of such rein
surance being held by the local corporation
to be a testimonial to its standing In the
home offices of the other companies, whtch,
with the amount taken, ar aa follow:
Fidelity and Deposit Co. of Md $315,000
U. 8. Fidelity and Ouaranty 1SO.UO
National Surety Co lOO.Ono
Lion Bonding and Surety Co 7S.OO0
American Bonding Co 76,000
Rankers' Surety Co CO.OuO
Federal T'nlon Surety Co SA.Ono
Illinois Surety Co t , sO.OO
American Fidelity Co 26000
Umpire State Surety Co Uf,000
National Fidelity and Casualty Co.. 100,000
HOW TO BAKE BREADTAUGHT
High Srheel Department at Dentestle
Seleaee Haa First Seasloa Weaaee
4Ur Vader Mtae Tarae.
The natural history of th pi, th pliil
osophy of tbe coda blacult and tha itrata
of the layer cake ar now among th sub
ject in which the young Omaha High
achool Idea will be taught to ahoot from
now on. The domestic science of ths achool
sprang into formal being Wedqeiday morn
ing with. Miss Turner a precepirea of
pudding nd profejsor of pie.
The room equipped for the department I
one of the largeat In the new build. ng and
ha teen furnished with compleie ventil
ating apparatus. The main table la con
structed to accommodate twenty-tour girl,
each uaing a separata kitchen outfit. A
unique ayatern of gaafitting for Single hot
plate burnen, which are supported tpon a
steel framework and connected by metal
Diumg. make piolecliou againii flic at.j.
lute. Th table are covered with a perm
anent xlno plate, and each contafna a com
plete outfit of practical uten.il. All uten
aila are of moderate alse and of substantial
material. A demonstrating board Is fur
nished for the Instructor.
The work in domestic -science will be
taught systematically and school credit
will be the same as for the gymnasium
work. At present the work will be taken
up In five perloda, making a dally total of
120 pupil..
Besides cooking, special attention will be
given to the study of buying and serving.
A complete dining room to accommodate
four persons has been fitted up. and guest
will be welcomed by the young hostesses
as soon aa they are a little more advanced
In the new study. There Will be no feea '
for the course.
CLAIM OF FREEZE-OUT MADE
William I,. Hoffman Claims W. It.
Hoanaa and A. 8, Averr Tilted
Him Oat ef Company.
William L. Huffman filed in ilUtrret tKc.l
Wednesday a petition for a, peremptory
writ of mandaroua against the Huffman
Automobile company, a corporation, and
William R. Homan and Asbel 6. Avery to
compel them to turn over to him $1,000 of
stock in the company, which ho claims to
own.
In the petition Mr. Huffman sets forth
that he wa engaged In the automobile
buelneas at 108 Famam street, transacting
business for himself, until October 1& last,
when the Huffman Automobile company
was formed and incorporated with himself,
W. R. Homan and Elmer H. Farnaley as
stockholders. Homan paid In $2,400 to the
corporation arui Farnaley turned over the
building in which the business was located
as his share.. Each of the stockholders
waa then given $4,000 worth of stock. No
vember 15 Abel 8. Avery bought for $ti,0flt
cash $,000 worth of stock and Farnaley
retired.
When the company wa originally organ
ised the plaintiff was elected ' president.
After Avery became a stockholder the com-!
pany wa reorganised and Avery elected,
president and Huffman vice president. De-'
cember 18 the plaintiff, subject to permls-1
Ion granted by tha directors of .his com
pany, went to Indiana for a couple of
weeks, partly on business for the company.
He returned on December ft) to be told, lie
says, that he wa no longer an officer or
director In the company and further that
be bad no Interest in the concern.
FUND NEAR THOUSAND MARK
Glfta hy Mats and Kra Brewing
Companies Largest Received hy
Italians Wedaeeaay.
Tare hundred and aeven dollar was
the amount subscribed yesterday to the
Italian relief fund. Of thla contributions
of $100 were made by the Met and Krug
Brewing companies. The list is now as
follows:
Amount previouslv reported.... $ 710 1 n
Met Brewing company lOO.'ou
C. O. Campbell
William O. Brommei . , ,J
.loe Oratalano ..w...-. . ' j'oo
Fred Krug Brewing company..., 100 00
Total .". 9t10
Contribution will be gratefully "and
cheerfully received by Peter Rocro, treas
urer of the relief committee, 511 South
Eleventh atreet.
A Hellgleaa Anther's aieteaseet.
For several years I waa affMcted with
kidney trouble and lat winter I was sud
denly stricken with a severe pain In my
kidney and waa confined to bed eight day
unable to gat up without aeelatanc. My
urine contained a thick whjt sediment ui
I passed earn frequently day and night.
I commenced taking Foley Kidney
Remedy. nd th pain gradually abated end
finally ceaaed and my urine became nor
mal. I cheerfully recommend Foley' Kid
ney Remedy. For sale by all drugg1t.
WATER BOARD VOTES SALARIES
Ha Other Baslaeea Treasaeted,', hat
Little Matter ef Campeasatlea
KTet Overleokea at Meeting.
Th session of the Water board last
night was ahort and. no bualnee was
transacted except allowing a few bllla and
the regular aalertea.
Char 1 a R. Sherman, th new member
of th board, waa preaent. aa wa alo
th retiring member, Joba r. Code. There
la no other change In the peraonnl of
tha board, aa Iaaae E. Congdon w re
elected. I Death frem Bleed Pol sea
waa prevented by Q. w. Cloyd, Tlunk, Mo.,
who healed hie dangeroua wound, ' with
Bucklen' Arnica Salve. 25e. For aal '
by Beaton . Drug Co. . .
Bigger. Better. Rueier-That "wht d
varttaiiv p t w your
nesa.
