3^ :hj 3 S A. C3- E 
 
 O iF" 
 
 JA]^UARY 7th, 1897.
 
 UNIVERSITY OF CALIFORNIA 
 LOS ANGELES
 
 EXECUTIVE DFPARTMhlN , 
 
 STATE OF r-LlFORNIA. 
 
 \ A, A fc 1397 ( 
 
 RESPECTFULLY REFERRED TO
 
 MKSSAGK 
 
 OF 
 
 GoverDor Silas 1. Mm\ 
 
 TO THB 
 
 TWENTY-FIFTH SESSION 
 
 OF THB 
 
 Legislature of Nebraska. 
 
 V J I » « t, t 
 
 • .** . ' 
 
 %9, » . t 
 
 January jth^ iSgy.
 
 
 (I) 
 
 c 
 
 7o the Members of the Tzventy-Fifth Session oj the Legislature 
 of Nebraska : 
 
 Gentlemen : In the discharge of the obligation imposed 
 
 on me as the Chief Executive of the state to communicate to 
 
 you such information and recommendations as may suggest 
 
 2j themselves, I deem it not inappropriate to express my grati- 
 
 <I0 fication that this message is presented to a legislative body, a 
 
 ^ majority of the members of which, I have every reason to be— 
 
 ^r lieve are in harmony and sympathy with the executive depart- 
 
 h* ment ; and, that we can hopefully look for a hearty accord be- 
 
 Z^ tween the executive and legislative branches of this state sfovern- 
 
 ^"5 ment in the respective capacities to which we, the servants o f the 
 
 W people, have been chosen by their suffrages to act, respecting 
 
 ^* the. plans to be adopted and the policies we shall pursue. The 
 
 Q- existence of such harmonious relations will, I am sure, en- 
 
 < able us to accomplish much good for our state. I feel confi- 
 
 ^^ dent that every branch of our state government is imbued 
 
 f. ) with an earnest desire to promote the general welfare of our 
 
 Q people, advance the prosperity of the state ; guard, protect and 
 
 S'l encourage every interest which will add to the development of 
 
 ^ its resources and preserve the rights of its citizens. 
 
 I feel a deep sense of gratitude to my fellow citizens for 
 the confidence manifested in me by my re-election, and desire 
 only in the future to profit by the experience of the past and 
 thus prove myself worthy of the high honor bestowed upon me. 
 ^ In administering the affairs of the people in a government 
 
 ^ such as ours, those chosen for that purpose are but instruments 
 
 X~" to ascertain and then carry out the will of the people. This 
 should be done with diligence and fidelity. The faithful ser- 
 vant merits and receives the approval of a sovereign people, 
 and enjoys the satisfaction of mind which comes from the 
 I knowledge of a duty well performed in the discharge of weighty 
 responsibilities. That the members of this legislature are im- 
 pressed wiih the grave responsibilities resting upon each of them, 
 and with the importance of the varied interests of this com- 
 monwealth which are for a time committed to their care, I be- 
 lieVe and shall assume to be true ; that you are determined to
 
 (2) 
 
 discharge your duties faithfully and fearlessly for the best in- 
 terests of our beloved state and the welfare of our fellow citi- 
 zens, I doubt not in the least. 
 
 You will doubtless be called upon to solve many diflicult 
 and perplexing problems of grave interest to the state, and I 
 feel sure you will give to each important question, as it is 
 brought before you, that mature deliberation and wise consid- 
 eration which should characterize all legislation affecting the 
 welfare of a great commonwealth. 
 
 I am not, in my judgment, overstating the case when I say 
 that at no time in the history of the state has there been more 
 urgent need for wise and intelligent action on the part of the 
 law-making body ; nor a more opportune time for the enact- 
 ment of prudent legislation. Abuses and imperfections in ex- 
 isting statutes, which permit of inequalities, wrongs and hard- 
 ships upon a part of our people, should be corrected, bearing 
 ever in mind that the object of all honest legislation is to en- 
 tirely eradicate, or reduce to a minimum, these various forms 
 of evil in the enforcement of law and order. 
 
 As a nation we confidently assert that our people are among 
 the most enlightened and progressive on the face of the earth ; 
 and you have the honor to represent the people of a state hav- 
 ing the smallest percentage of illiteracy of any in the union, and 
 who are the peer of any people in the land, in patriotism, in- 
 telligence, integrity and love of equality, truth and justice in 
 the affairs of mankind. 
 
 Our public schools, colleges and universities testify to the 
 love of our people for education. Situated geographically in 
 the center of the United States, we are afforded every oppor- 
 tunity for constant and mutually profitable intercourse with all 
 parts of our common country. It is to be regretted that par- 
 tisan newspapers, having seemingly no regard for the public 
 welfare and with a spirit of intolerance entirely out of place 
 where free institutions are admired, have attempted to preju- 
 dice the minds of men who are unacquainted with our state and 
 its citizens, by the publication of mendacious and slanderous 
 articles reflecting on the intelligence and integrity of the peo- 
 ple of Nebraska. It has been intimated by men high in the 
 councils of our national government, as well as by some news- 
 papers of general circulation throughout the country, that the
 
 (3) 
 
 present session of the legislature of Nebraska would undertake, 
 by vicious and hostile legislation, to permit the repudiation of 
 the debts of its citizens, to vitiate private contracts and to dis- 
 criminate in favor of one party to a contract so as to demoralize 
 the bu:>iness of the people of the stale. These wanton attacks 
 upon the free and enlightened people of Nebraska would not 
 be worthy of attention were they not calculated to incite the ill- 
 will of a class of citizens of older and more populous states whose 
 knowledge of Nebraskans is gleaned from newspaper com- 
 ment, and not from actual contact with our people. It has been 
 threatened that the people of eastern states who have money 
 invested in Nebraska property would withdraw their invest- 
 ments because the majority of our citizens have espoused a dif- 
 ferent political policy from that having general endorsement in 
 the eastern portion or our country. 
 
 These unmerited reflections on the intelligence and in- 
 tegrity of our citizens will not, I am sure, deter you from dis- 
 charging your full duty to your constituents by enacting any 
 new laws or remedial legislation upon which you may deter- 
 mine. By wise and judicious action, you will dispel any doubts 
 which may exist of the determination of our people to be strictly 
 just to all men ; of their capacity, through their representatives, 
 to enact legislation for the protection of all interests in the in- 
 timate relations of our own citizens with each other, or with 
 the citizens of other states, and for the conservation of all legit- 
 imate business interests. 
 
 Nebraska is not the child of any other state or group of 
 states. She is a sovereign state among the sisterhood of states 
 of the union, with equal privileges, prerogatives, duties and re- 
 sponsibilities. Her citizens are intelligent, industrious, honest 
 and patriotic. She has within her borders tiie natural and ac- 
 quired resources and all the elements of strength and grandeur 
 necessary to maintain her proud position as one of the foremost 
 states of the union. Nebraskans demand only the right, and 
 that they will maintain, of governing their own affairs, with- 
 out any desire to infringe upon the rights of any other people. 
 
 A sudden change in the business relations existing between 
 citizens of Nebraska and citizens of other states would quite 
 probably work much hardship and unnecessary suflering upon 
 many of our people, yet I am of the opinion that ultimately
 
 f4> 
 
 greater permanent injury would be wrought to the states and 
 communities adopting such an extraordinary and unusual 
 course towards our citizens, Nebraska is not dependent on 
 any one state or section of the country for the final or complete 
 development ot her resources and the comfort and happiness of 
 her citizens ; and she does not appeal as a dependent to have 
 accorded to her citizens the lair treatment and consideration 
 which should, and usually does, exist among the people of one 
 common country, all having a mutual interest in the develop- 
 ment of the whole. Rather, she demands this treatment be- 
 cause of the elements of strength in reciprocal relations which 
 she possesses, and the ability of extending inducements to the 
 business world, which make her territority an inviting field for 
 the investment of capital and development of industrial enter- 
 prises. 
 
 That all property interests now in existence or that may 
 hereafter be established, will be treated with sacred regard 
 and scrupulous honesty should not be questioned. To question 
 it is to doubt the honesty of mankind and challenge the integ- 
 rity of a nation. Our people deserve friendly relations, com- 
 mercially and socially, with the citizens of other states, and real- 
 ize that in the maintenance and extension of mutual, cordial 
 regard, all are alike benefitted. 
 
 One and a quarter millions of patriotic, law-abiding people 
 inhabit the State of Nebraska. They have builded thriving 
 cities and villages. They have broken the sod over which the 
 Indian and the bufTalo roamed a few decades ago. They 
 are a hardy, independent people, and are proud of the great 
 and growing commonwealth they have created. The fertile 
 fields of Nebraska yield grain sufficient to supply the nation. 
 Horses, cattle, and sheep fatten upon her broad prairies and 
 meadow lands. Thousands of car-loads of pork are shipped 
 annually from her farms to feed the people of other states and 
 countries. Her transportation facilities are unexcelled. She 
 has factories for sugar, for chicory, for the manufacture of dry 
 goods and various other commodities. She has mills for 
 grinding grain ; great packing houses and dairies all over the 
 state — in fact everything which makes a people prosperous 
 in a great agricultural country, and goes to build up a great 
 commonwealth.
 
 (5) 
 
 These are the advantages which an intelligent, industrious, 
 thrifty and energetic people present to the business world, and 
 they w'ill enable her to maintain, by virtue of merit alone, an 
 honorable position among the great industrial communities of 
 our country. 
 
 The more important of the subjects to be considered by 
 you were generally discussed during the recent campaign 
 and the people made known their desires by the election of 
 officers committed to reforms in the management ot the state's 
 affairs, thereby rendering it less defficult for you to perform 
 your duty in executing the will of the people thus expressed. 
 I will merely call your attention to such of these important 
 matters as have come under my observation during my term 
 of office. 
 
 By a wise provision of the constitution, the officers of the 
 executive department and the heads of all of the public institu- 
 tions of the state, are required at least ten days preceding each 
 regular session of the legislature to make a report to the 
 Governor concerning the condition of the state's business in 
 their charge, such reports in turn to be submitted to the legis- 
 lature. These reports were not all presented to me within the 
 time required by the constitution, and I have therefore been 
 unable to give them the consideration I would have desired. 
 They are submitted to you for your careful consideration as 
 they contain much valuable information which will be of great 
 assistance to you in determining the needs of the diflerent de- 
 partments of the state government and of the various institu- 
 tions for their proper management for the coming biennium. 
 
 RIGHT OF SUFFRAGE. 
 
 One of the most important duties devolving upon you as 
 legislators is the amendment of the election laws of the state. 
 The legislature of 1891 very wisely adopted the Australian 
 ballot system and it has undoubtedly had an appreciable effect 
 in purifying our elections. Experience in the use of the 
 Australian system suggests many improvements which will 
 have a tendency to render the perpetration of frauds still more 
 difficult and give additional protection to the voter in the exer- 
 cise of his right of franchise. 
 
 I heartily approve of the general form of our ballot and 
 believe it to be vastly preferable to the so-called "blanket"
 
 (6) 
 
 ballot system, in Nvhich the parly tickets are each printed in 
 separate columns, with provisions generally by which the 
 ejector can vote the entire party ticket by one mark or stamp. 
 The independence of the voter is encouraged by our system 
 which leads him usually to read the names of the candidates 
 for the various offices before casting his ballot, and he is en- 
 couraged thereby not to rel}'^ solely upon party designation. 
 It has been urged by some as an objection to the form of our 
 ballot that it is in eftect the establishment of an educational 
 test for voting. I do not regard this as a very serious objec- 
 tion. The voter has become accustomed to this form of ballot 
 and any marked change in the general form, in my opinion, is 
 entirely unnecessary and would serve no good purpose. 
 
 Other objections, however, are more substantial which I 
 regard more the result of abuses than of the law itself and 
 which can be remedied by proper amendments. As an in- 
 stance, William J. Bryan was nominated by the democratic 
 party for the presidency. Afterward he was also nominated 
 by the peoples' party for president. A convention of dissatis- 
 fied democrats met later and, styling themselves "National 
 Democrats" nominated John M. Palmer for president. The 
 candidates placed in nomination by the Palmer wing for elect- 
 ors, as well as for state officer, were denominated on the offi- 
 cial ballot in Nebraska as " democrats " with no means of dis- 
 tinguishing them from the regular democratic nominees. The 
 result of such a course was necessarily tlie deception of many 
 voters. I would respectfully recommend that such amend- 
 ments be made to the law as would prevent the use of the party 
 designation by "bolting" factions for the purpose of deceiving 
 voters. The regular party nominees only should appear on 
 the official ballot with the designation of the party which 
 nominated them. Where one candidate has been nominated 
 by more than one political party, the party designations should 
 be so arranged as to permit the elector to express by his vote 
 his party preference as well as his preference for the candidate. 
 Protection should be secured to the voter who, unacquainted 
 with the names of all the nominees on the ticket, is desirous of 
 casting his ballot for the nominees of the party he espouses. 
 
 I would also suggest that each party having a fair pro- 
 portion of the electors in the state be given representation on
 
 (7) 
 
 th} precinct election boards, and that no more than two mem- 
 bers of any one political organization be made judges in any 
 election precinct. The representatives of no one political organi- 
 zation should have entire control of any election booth, and, 
 where competent men representing different political parties 
 can be secured, the result must be more satisfactory to all con- 
 cerned. 
 
 I believe this matter might be satisfactorily arranged by 
 vesting the power of naming the judges and clerks of election 
 in the county clerks, or boards of county commissioners, (and 
 the mayors of cities of the first and second classes), restrict- 
 ing them to a choice from lists furnished by the chairmen of 
 the county (or city) committees of the various political parties. 
 Provisions could be made allowing at least one representative 
 on the election board to each political party receiving a certain 
 percentage of the votes cast at the last general election held in 
 the state, and providing that, in no event, should any one 
 party have to exceed two judges and one clerk on any elec- 
 tion board. 
 
 In order to secure a free and untrammelled ballot for every 
 elector, steps should be taken to prevent coercion, intimidation 
 and undue influence on the part of employers. Ever}- citizen, 
 whatever may be his station in life, should have every protec- 
 tion thrown around him in the exercise of his citizenship. 
 Other states have seen fit to enact very stringent legislation 
 to prevent undue influence on the the voter by his employer. 
 As an instance, the laws of Indiana provide that whoever, for 
 the purpose of influencing a voter, threatens to enforce the 
 payment of a debt, to injure the business or trade of an elector, 
 or, if an employer, threatens to withliold wages or to dismiss 
 from service any laborer in his employment or refuses to al- 
 low employes time to attend to the place of election and vote 
 shall be fined not more than $1,000.00 nor less than $20.00, 
 imprisoned in the slate prison not more than five years, nor 
 less than one year, and disfranchised and rendered incapable 
 of holding any office of trust or profit for any determinate 
 period. The enactment and strict enforcement ol some such 
 provision in the election laws of Nebraska would lessen the 
 intimidation of voters and give encouragement to a free ex- 
 pression of tlie will of the people at the polls. Provisions
 
 (8) 
 
 should be made directing all employers to allow each elector 
 sullicient time on election day to deposit his ballot. 
 
 Some action might very properly be taken to discourage 
 discrimination between political parties by railroad corpora- 
 tions operating within the state. The issuance of free passes 
 to an army of political workers and the giving of special rates 
 lor the political meetings make the railroad companies a pow- 
 er in shaping the political destiny of a state. Where this 
 power is all wielded in the interest of one party and to the 
 prejudice of another party, its weight cannot well be over esti- 
 mated. Railroad companies do the business of the public and 
 should be restrained by wholesome legislation from active par- 
 ticipation in party politics. The officers and employes of such 
 railroad companies should be free to vote as may seem to 
 them for their own best interests. 
 
 Charges of fraudulent registration in the larger cities of 
 the state have been frequentl}^ made and I would suggest the 
 advisability of having the last day of registration at least ten 
 days prior to election day in order that the complete list of 
 voters may be scrutinized by all inquiring citizens and ample 
 time be afforded for the apprehension of those who fraudu- 
 lently register. 
 
 It is obvious that one of the chief sources of corruption in 
 elections is the use of money in providing means or hiring the 
 voter to go to the polls and vote, by this means placing him 
 under obligation and thus unduly influencing his vote, or to 
 hire the voter to stay away from the polls thereby causing him 
 to neglect" his duty as a citizen. 
 
 In order to encourage and stimulate the free and honest 
 exercise of the elective franchise it has occurred to me that it 
 might serve a good purpose were a non-voting poll tax of rea- 
 sonable amount levied against each elector who may relieve 
 himself by voting at the general election, or by producing a 
 certificate of sickness or disability or of absence from the 
 county or state. Such a provision might incidentally be made 
 a source of revenue to the state and the burden fall upon a 
 class of citizens who fail to discharge a very important duty 
 devolving upon every qualified citizen. I suggest this idea to 
 you for your consideration. 
 
 I hope that you will take the necessary steps for the remedy-
 
 (9) 
 
 ing of defects in our election laws with a view to giving every 
 possible opportunity for a free and fair expression of the will of 
 the people at the polls. 
 
 RELIEF OF DROUGHT SUFFERERS. 
 
 When I assumed the duties of the office of governor of the 
 state, two years ago, the people of Nebraska were distressed, not 
 only b}"" reason of the general depression in business affairs, low 
 prices and steady and continued depreciation in property values, 
 but also from the result of an unprecedented and disastrous 
 drought. These adverse climatic conditions were not confined to 
 Nebraska alone but prevailed in various parts of the country. It 
 was an abnormal condition and may not be experienced again 
 during a generation of our people. Absolute want and distress 
 could only be prevented by prompt and efficient organization 
 for the purpose of supplying the pressing needs oi the un- 
 fortunate drought sufferers until another season should bring the 
 usual bountiful harvest. 
 
 I found that, under the direction of my predecessor, steps 
 had been taken looking to a systematic method for collecting 
 and distributing provisions to alleviate the immediate wants of 
 the people in the affected portion of the state. When it became 
 generally known that provisions would have to be made to re- 
 lieve those impoverished by the drought, there was a generous 
 and spontaneous response from all sections of the nation. The 
 contributions became so liberal that it taxed the ingenuity of 
 those in charge of the distribution of these free offerings to place 
 them in the hands of those most deserving of assistance and, at 
 the same time to not tax the generosity of the benevolent people 
 to a greater extent than absolutely required to prevent suffering. 
 
 I deem it my duty, in behalf of the unfortunate people who 
 were affected by this calamity to express to all who so nobly 
 responded to their distress by contributions of provisions or 
 money, and also to the railroad, express, telegraph and tele- 
 phone companies which so liberally assisted in the work of al- 
 leviating suffering, our sincere gratitude and lasting thanks for 
 their manifestations of human sympathy and benevolence ex- 
 ercised during this trying period. Since that unfortunate ca- 
 lamity, as before, Nebraska has been blessed with bounteous 
 crops and the disagreeable experience she passed through 
 appears to her people as a hideous dream-
 
 (lO) 
 
 After the organization of the legislature, ;in act was passed 
 creating a relief commission, composed of five well known cit- 
 izens, giving to them entire control and management in the dis- 
 charge of this important work. The report of the relief com- 
 mission has been submitted to me and you will doubtless be 
 supplied with copies. You will observe by tiiis report, as well 
 as by reference to the acts of the last legislature, that the state 
 contributed $50,000, which was placed at the disposal of the 
 relief commission, and an additional sum of $200,000, which 
 was by the relief commission distributed among the several 
 counties of the state where the people were regarded as being 
 entitled to assistance of this character for the purpose of pur- 
 chasing seed grain for the following crop season, making a to- 
 tal appropriation by the legislature of $250,000. In addition 
 to these cash donations by the legislature and the people of the 
 country at large, an immense amount of supplies and provisions 
 of dilTerent kinds were contributed, to obtain an accurate esti- 
 mate of w^iich requires a careful study of the report in detail 
 of the commission. The work of the commission, of necessity, 
 was of the most difficult character, carried on under trying cir- 
 cumstances, and I am of the opinion that the work of distribut- 
 ing supplies was done in a most thorough and systematic man- 
 ner. I was ot the impression at the time, and have since found 
 no reason to change my views, that the organization and method 
 of distribution of relief supplies was upon a cumbersome and ex- 
 pensive plan. By an examination of the report it will be ob- 
 served that there were funds donated in the sum of $28,999.38 
 and realized from the general and special appropriations ot the 
 legislature the further sum of $52,364.70, making a total of 
 $81,364.08. Of this amount there was expended $48,113.82 in 
 printing, traveling and transportation charges and office ex- 
 penses. The freight charges amounted to $36,809.03, divided 
 into two items, one denominated " transportation " being in the 
 Bum of $30,181.67, and the other designated "in-freight" be- 
 ing in the sum of $6,627.36, leaving the sum of $11,304.79 to 
 represent the other expenses of the relief commission in carry- 
 ing on this work from its inception until its close. 
 
 It perhaps is proper to remark in this connection, and it is 
 a source of gratification to myself, as I have no doubt it will be 
 to all others who examine into the details of this work, that our
 
 (II) 
 
 own people who were more fortunately situated than their 
 brethren contributed most generously to this work of relief and 
 did their full share in alleviating want and distress among their 
 fellow citizens. With a generosity unequaled, the people of 
 every section of our country vied with each other in doing 
 everything necessary to prevent want and suffering. It is to 
 be sincerely hoped that no such calamity will again reduce our 
 people to the necessity of asking or receiving aid from their more 
 fortunate fellow-countrymen ; nor is there occasion to believe 
 that under the influence of the ordinary laws of nature they will 
 ever again be called upon to do so. Appreciating the magnifi- 
 cent generosity of our fellow-countrymen, displayed in this in- 
 stance, Nebraska will ever stand ready to extend a helping 
 hand to the unfortunate and suffering of mankind wherever 
 they may be found. 
 
 The drought has not been without its lessons, which will 
 doubtless add much to the material welfare and permanent 
 prosperity of our people. In no state in the union is the rain- 
 fall more uniform, both in time and amount, nor can the pre- 
 cipitancy of the moisture be determined with greater accuracy. 
 In any portion of Nebraska a study of the climatic conditions 
 will disclose with reasonable certainty the average amount of 
 rainfull during the crop-growing season, thus enabling the peo- 
 ple to determine in what portion of the state they may safely 
 engage in agricultural pursuits, relying upon the natural rain- 
 fall to cause the crops to grow to maturity and ripen in per- 
 fection. In the extreme western portion of the state, exper- 
 ience has demonstrated that agriculture can not be safely car- 
 ried on with reliance upon the natural rainfall for a sufficiency 
 of moisture to successfully grow and mature the crops. This 
 condition has been made more apparent by the disastrous sea- 
 son of 1894, and the people have promptly turned their atten- 
 tion to irrigation, which has been developed with great rapidity 
 and which has replaced partial failure of crops with its attend- 
 ing disappointment, want and sufTcring, with bounteous crops 
 which can be relied upon with certainty as regularly as the sea- 
 sons follow each other. The non-irrigable portions of the 
 country within this territory being exceedingly well adapted 
 to the raising of stock, the western part of Nebraska is thereby 
 made one of the most inviting fields for intending settlers of 
 any part ot the great west.
 
 (12) 
 IRRIGATION. 
 
 In the report of the Secretary of State Board of Irrigation 
 will be found much interesting and useful information. It is 
 very gratifying to note the rapid development of this phase 
 of agricultural industry. The work is as yet in its infancy 
 but, so much has been accomplished, it may be confidently 
 predicted that that portion of our state which is in the semi- 
 arid region will soon become one ol the most attractive places 
 in any agricultural community. Millions of acres of Nebraska 
 land will be brought under the favorable influences of irriga- 
 tion and made to produce the most bountiful crops, and there 
 is no limit to the development except by the exhaustion of the 
 water supply before this result has been fully accomplished. 
 The immense wealth, brought into existence through the de- 
 velopment of irrigation and that which is created annual!)' 
 by the production of bountiful harvests, gives assurance of 
 plenty and prosperity to the inhabitants of this favored por- 
 tion of the state. 
 
 It will be seen from the records in the office of the Secre- 
 tary of the Board of Irrigation that there have been completed 
 3,740 miles of canals and that there are in process of construc- 
 tion 1045.6 miles, making a total mileage at the present time 
 of canals completed and in process of construction of 4785.6. 
 The estimated cost will exceed three million dollars, of 
 which over half has already been expended. This will bring 
 under irrigation 1,207,966 acres of land, increasing the value 
 of the land to the extent of nearly ten million dollars. In ad- 
 dition to this there are applications on file for contemplated 
 canals of a total mileage of 2,946. These statistics can but 
 impress you with the importance of giving to this subject such 
 further consideration as may be necessary to correct any im- 
 perfections existing in the present law, and of providing for a 
 continuation of the work so auspiciously begun. 
 
 The first general law upon the subject of irrigation was 
 enacted in 1889. This law was found entirely inadequate for 
 the proper development of the irrigation interests of the state. 
 This law was superceded by a much more comprehensive one 
 enacted by the last legislature, since which the work has pro- 
 gressed more satisfactorily and with much greater rapidity. 
 Many suggestions have been made respecting the wisdom of
 
 (13) 
 
 amending the present law. In considering the subject of 
 amendments, however, I deem it advisable to call attention to 
 the fact that no amendments should be made which would ma- 
 terially change the underlying, essential principles of the 
 present law, which has the sanction of the highest judicial tri- 
 bunal of our land. The principles involved in this subject 
 having been forever settled by a judicial decision of the char- 
 acter referred to, it would seem unwise, except upon urgent 
 necessity, to so change them by legislation as to render less cer- 
 tain the principles involved and perhaps invite further litiga- 
 tion with its attending tediousness and wearisome delays. 
 The advocates of irrigation interests, as I understand it, favor 
 amending the law relating to the organization of irrigation 
 districts so as to provide for uniform issues of bonds under the 
 direction of the State Board of Irrigation, as well as legislation 
 touching the issue and negotiation of the bonded obligations of 
 the irrigation districts so as to afford the taxpayers all needed 
 protection, as well as having due regard for the in terests of 
 those who purchase such obligations. It has also been sug- 
 gested that an amendment might properly be made with refer- 
 ence to the organization and control of irrigation districts so as 
 to permit every resident freeholder to participate an d have a 
 voice in the selection of officers and all other matters pertain- 
 ing to the affairs of such district ; also, that the offices of 
 district treasurer and assessor might be abolished and the 
 duties of these officers be imposed upon the county and town- 
 ship treasurers and assessors. Other amendments to the 
 present law of more or less importance have likewise been 
 suggested, and will no doubt be presented to you for 3'our 
 consideration. I earnestly hope that you may be able to 
 make such needful improvements as may seem advisable to 
 encourage further and to the utmost extent this very impor- 
 tant feature of the agricultural development of the state, and 
 that all necessary appropriations may be made in order that 
 the work may be carried on with renewed vigor. 
 
 state's finances. 
 I desire to earnestly call your serious attention to the 
 condition of the state's finances. This is a subject of more 
 than ordinary concern to every taxpayer in Nebraska. Sev- 
 eral factors contribute to the unfavorable condition of the
 
 (M) 
 
 financial interests of the state as we, at present, find them. 
 The very general depression in business and the low prices 
 received for the products produced by the people of our state, 
 are of themselves sufficient to render the state's finances much 
 more unsatisfactory than might be expected under normal 
 conditions. This has prevented the prompt collection of taxes 
 due the state, and required in order to meet its necessary ex- 
 penditures, so that at the present time it appears there is a 
 very large amount of delinquent state taxes. 
 
 In addition to this the method of handling the finances of 
 the state and of meeting its obligations, could, in my judg- 
 ment, be very much improved upon. Not only is it commend- 
 able to secure the prompt collection of taxes levied for the 
 purpose of meeting current expenditures, but also the prompt 
 payment of the taxes thus collected in satisfaction ot the state's 
 obligations. Good business judgment would dictate the prompt 
 discharge of the state's outstanding obligations as rapidly as 
 as money may be accumulated by the ordinary method of 
 collecting taxes to meet the same. 
 
 From the report of the State Treasurer a brief summary 
 discloses the following as to the state's obligations : 
 
 Bonds outstanding, issued in funding the state's 
 indebtedness at the time of the adoption of 
 the present constitution, $ 449,267.55 
 
 Bonds issued under the present constitution in 
 
 1891 and yet outstanding, 19,000.00 
 
 General fund warrants outstanding 1,934,069.13 
 
 Total, $ 2,402,336.68 
 
 To meet these obligations we have the following credits : 
 
 Sinking fund to meet bonds first above men- 
 tioned, $ 317,840.04 
 
 State relief sinking fund to meet bonds last above 
 
 mentioned 324.39 
 
 Uncollected taxes due to the general fund, 2,330,692.76 
 
 Cash in the treasury, general fund, 5^95370-39 
 
 Total, $3,238,227.58 
 
 In addition to the liabilities already incurred, and of which 
 mention has heretofore been made, there is also the additional 
 liability for current expenditures yet to be made for the re-
 
 (15) 
 
 mainder of the biennial period for which the last legislature 
 made appropriations, and which can be approximated by 
 ascertaining the total unexpended balances as shown by the 
 report of the State Auditor. These will have to be met from 
 the uncollected taxes above mentioned. 
 
 In considerinof the uncollected taxes it is to be borne in 
 mind that a very considerable part will probably never be paid 
 into the state treasury. While these conditions are not what 
 we would like to have them, and realizing that they have been 
 brought about by extravagance and needless expendi- 
 tures, and by excessive appropriations covering a series of 
 yearc, it is yet quite apparent that the indebtedness of the 
 state of Nebraska is comparatively light. It is no greater 
 than that of many other states whose opportunities for crea- 
 ting a large bonded indebtedness are not restricted by the fun- 
 damental law as ours. It is interesting in this connection to 
 study the grand assessment roll of the property of the state re- 
 turned for taxation, showing the total assessed value thereof, 
 lor several years, as follows : 
 
 i8go. . . .$184,770,304.54 1893. . . .$194,733,124.73 
 1891.... 183,138,236.28 1894.... 183,717,498.78 
 
 1892 186,432,376.71 1S95 171,468,207.48 
 
 1896. . . . 167,078,270.37 
 
 The census of 1890 discloses that the value of the prop- 
 erty of the citizens of this state is estimated to be $1,275,685,- 
 514, and the actual value of the assessable property in the 
 state at this time must be considerably more, and yet, as 
 shown by the assessed valuation of all the taxable property 
 for the year 1896, the valuation is placed at but little over one- 
 eighth of the actual value based on the census returns of 1890. 
 
 The large amount accumulated in the general fund men- 
 tioned above, $589,370.39, is one of the features seemingly 
 calling for some comment. It is difficult to understand why 
 this large sum should be allowed to accumulate in the slate 
 treasury with so great amount of outstanding warrants unsat- 
 isfied. It would naturally be expected that such a consider- 
 able sum as this should have been applied to the reduction of 
 the state's indebtedness as rapidly as it accumulated, as is pro- 
 vided by law, and demanded in the exercise of prudent busi- 
 ness management in the discharge of a public duty. In de-
 
 (i6) 
 
 fining the general duties of the the State Treasurer, the law 
 provides that he is "to disburse the public moneys upon war- 
 rants drawn upon the state treasury according to law and not 
 otlierwise." It is also provided in Section i, of Chapter 93, 
 that "all warrants upon the state * * * shall be paid in 
 the order ot their presentation therefor." Section 4 provides 
 that "it shall be the duty of every treasurer to put aside in a 
 separate and sealed package the money for the payment of 
 each registered warrant, in the order ot its registration. As 
 soon as money sufficient tor the payment of such warrant is 
 received to the credit of the particular lund upon which the 
 same is drawn, such package shall be endorsed with the num- 
 ber and description of such warrant, and the name and address 
 of the person in whose name the same is registered, and inter- 
 est upon such warrant shall thereupon cease, and such treas- 
 urer shall by mail immediately notify the person in whose 
 name the same is registered and shall endorse the date of 
 the mailing of such notice upon such sealed package." 
 
 Thus it will be observed that it was the intention of the legis- 
 lature that no fund should be allowed to accumulate when there 
 were outstanding warrants drawn against such fund, and that 
 as soon as sufficient money should be paid into the state treas- 
 ury to satisfy each warrant in the order of its registration that 
 interest thereon should cease and the state be thus relieved from 
 further liability on account of accruing interest. While it may 
 be said that a literal compliance with the provisions above men- 
 tioned would be very difficult because of the great volume of 
 business carried on in connection with the work of the state 
 treasury, yet its spirit could be fully complied with by making 
 prompt payments on general fund warrants as rapidly as funds 
 accumulated in the state treasury therefor. This act of the 
 legislature, both in letter and spirit, seems to have been entirely 
 ignored and the general fund, against which a large amount of 
 outstanding warrants has always existed, allowed to accumu- 
 late to the extraordinary amount of over half a million dollars. 
 This method of disposing of the state's business puts an addi- 
 tional burden upon the tax-payers by the accumulation of a 
 large amount of interest on the unredeemed warrants thus neg- 
 lected. It also endangers the state's interests through the pos- 
 sibility of losses of money which could properly have been dis-
 
 (17) 
 
 bursed in cancelling this indebtedness as rapidly as possible. 
 The suggestion that the state is receiving interest on the money 
 thus allowed to accumulate in this unusual manner may properly 
 be met with the statement that such interest is only at the 
 rate of 3 per cent per annum while the state's warrants are 
 drawing 5 per cent. It may further be said that it is the duty 
 of the state, through its representatives, to liquidate its indebt- 
 edness as rapidly as funds accumulate in the collection of reve- 
 nues for that purpose, thereby enhancing the value of its own 
 obligations. Likewise, to the suggestion that it has been a 
 critical period for the banks of the state, as well as for business 
 interests of all kinds, it can be replied that the state is under 
 no obligations, and, in fact, it is a pernicious doctrine to hold 
 that the public revenues may be used for the purpose 0/ 
 strengthening any private interests or enterprises of any char- 
 acter, and especially so where there are superior claims against 
 such funds upon the part of the creditors of the state. The 
 state is not supposed to use its revenues for the purpose of en- 
 tering into the banking business or to deposit its funds upon 
 any other theory than that they are to be used by the deposi- 
 tory only when not required by the state in the ordinary course 
 of its business. It is to be further observed that this fund at 
 one time was within reasonable limits, not exceeding, accord- 
 ing to the report of the state treasurer on the ist of January 
 last the sum of $52,735.91. Under no process of reasoning can 
 I understand why this further and larger sum should be de- 
 posited and allowed to accumulate to the enormous amount 
 mentioned, with obligations of the state pressing for payment 
 and the value of its obligations constantly depreciating, and 
 then, after such large accumulations are permitted, to have the 
 matter explained by the suggestion that these funds could not 
 with safety to the business interests of the state be withdrawn 
 from the depositories. 
 
 I am of the opinion that there should be a very radical 
 change inaugurated in the conduct of the financial interests of 
 the state and prompt measures taken to phice the state's finan- 
 ces upon a solid footing, as much so at least as surrounding 
 conditions will permit. The accumulated general fund should 
 be promptly applied to the extinguishment of the indebtedness 
 atiainst it. Whether there are legal obstacles which would
 
 (i8) 
 
 prevent your rcfuncling the indebtedness above mentioned con- 
 tracted prior to the adoption of the present constitution, I am 
 unable to speak advisedly. If it could be done, I would suf]f- 
 gest the advisability ol refunding all the bonded indebtedness 
 of the state at a rate of interest not exceeding 4 per cent per 
 annum. The issue of such bonds would make a very desira- 
 ble investment for the idle permanent school fund. This would 
 permit of the transfer of the sinking fund, accumulated and 
 created for the extinguishment of this bonded indebtedness to 
 the general fund. In addition to this you will have the power, 
 as I view it, to authorize the issuance ot bonds in the sum of 
 $100,000 to meet a part of this indebtedness. Provisions of 
 this character would reduce the amount of outstanding war- 
 rants very materially and place the state in a much better con- 
 dition. 
 
 There are a number ot other funds of smaller amounts 
 which perhaps can be utilized in bringing the state nearer a cash 
 basis in the transaction of its business. I trust that after a lull 
 consideration of this important matter you may be able, by the 
 adoption of some plan, to make satisfactory arrangements for 
 promptly meeting all of the state's indebtedness, both bonded 
 and floating. 
 
 REVENUE LAWS. 
 
 It seems imperative that some action should be taken by 
 the legislature providing for a better method of levying and 
 collecting the revenues necessary for the proper conduct of the 
 governmental affairs of the state. The imperfections and lax- 
 ity of the provisions of the present law for levying and collec- 
 ting taxes to meet current expenditures, and the still greater 
 laxity in enforcing these imperfect provisions of law, have 
 brought us face to face with a condition of affairs that renders 
 it impossible to conduct the business of the state without much 
 embarrassment, needless sacrifices and ever-increasing floating 
 indebtedness. Any wise financial policy requires, in my opin- 
 ion, the collection of revenues sufllcient to promptly meet 
 expenditures necessary to be made in the conduct of the state's 
 business. Any other plan ultimately works increased hardships 
 and renders excessive the expenses of state government, be- 
 cause of the uncertainty respecting the satisfaction of the obli- 
 ligations created. The very fact that property is assessed at
 
 (19) 
 
 so much less than its fair value, renders it very probable that 
 great inequality exists in distributing the burdens of taxation. 
 The man of moderate means is doubtless assessed for much 
 nearer the true value of his property than the individual hav- 
 ing large property interests, and, while the approximate per- 
 centage of the assessed valuation, as compared with the actual 
 valuation of property is but little less than one-eighth, it is 
 more than probable that the taxpayer with small means and 
 whose property is easily ascertained, pays much nearer one- 
 third of its value, while other large property interests escape 
 with an assessed valuation at nearer one-tenth or one-twelfth 
 of the actual value. 
 
 It appears to me there are two principal objects to be 
 secured in obtaining public revenues in support of government. 
 The first is that property of every description, except that 
 which is especially exempted by law, shall be subject to the 
 same burden of taxation according to its value, and this rule 
 should be invoked with absolute uniformity, and with ample 
 provisions to prevent any assessable property from escaping 
 taxation. Second, these burdens should only exist to the ex- 
 tent necessary to support the government administered with 
 honesty and rigid economy. When these two objects have 
 been accomplished, in whatever manner it may be deemed 
 best, there is no just reason for complaint upon the part of any. 
 
 Our law provides that personal property shall be assessed 
 at its fair cash value, and real estate, other than leasehold 
 estates, "at its fair value, estimated at the. price it would 
 bring at a voluntary sale * * * one-third cash and bal- 
 ance secured by mortgage upon the property.'' This, as 
 everyone knows, is not done, but on the contrary the less value 
 placed on the property for assessment purposes by the officer 
 having charge of tiiis branch of business, seems to render him 
 much more popular than if he had performed his full duty and 
 assessed the property as the law provides. Just how far this 
 state of aflairs can be remedied and what provisions, if any, 
 shall be made looking towards a more stringent enforcement 
 of the law as now existing or a revision thereof, is for you to 
 determine. If property be assessed at too low a valuation, the 
 the rate of the tax levy is correspondingly increased. The 
 system of low valuation and high li-vi'-s creates an erroneous
 
 (20) 
 
 impression in the minds of many regarding the property values 
 and the seemingly heavy burdens of taxation in the state. 
 
 An assessment upon property at its fair valuation would 
 render tax levies exceedingly small, as well as give less op- 
 portunit}"- for undervaluation, because of the more fixed and 
 certain standard obtaining, the one and only question being, 
 whether the property has been assessed' at a fair value. It is 
 doubtless true that a constant and continued decrease in 
 assessment values has been caused in order that one commu- 
 nity or county might not be compelled to contribute more than 
 its just proportion to the state's revenues. Thus a constant 
 struggle is continually going on among assessing ofllcers to 
 value their property as low or lower than the valuations placed 
 by any others. It is also quite apparent that the low assess- 
 ment of property is some protection to the people in order to 
 prevent extravagance in the conduct of the business of 
 disbursing the public revenues. With a low assessment and 
 limits as to the rate of the levy, the people have some protec- 
 tion against wanton extravagance by those who are charged 
 with the duties of managing the people's business in different 
 capacities, where the disbursment of revenues forms an impor- 
 tant part of their duty. In investigating this subject, I have 
 secured a great deal of valuable information from other states, 
 which I will take pleasure in placing at the disposal of this 
 body or any committees which you may select to consider this 
 important subject. 
 
 I also, in this connection, desire to call your attention to 
 the provisions of law respecting the method of levying and 
 equalizing the value of property assessed for the purpose of 
 raising revenues for state expenditures. Thelayv provides that 
 the Governor, State Auditor of Public Accounts and Treasurer 
 " shall constitute the state board of equalization * * * * 
 * * and it shall be the duty of said board to examine the 
 various county assessments, and to decide upon the rate of the 
 state tax, the state school tax, the state sinking fund tax, to be 
 levied for the current year, together with any other general 
 or special taxes required by law to be levied and to equalize 
 and make the levy of such taxes throughout the state ; but such 
 equalization shall be made by varying the rate of taxation on 
 the different counties in case the said board of equalization are
 
 (2i) 
 
 satisfied that the scale of valuation has not been adjusted with 
 reasonable uniformity by the different assessors." 
 
 It further provides that " the rate of the general state tax 
 shall be sufficient to realize the amount necessary to meet ap- 
 propriations made by the legislature for the year in which the 
 tax is levied, not exceeding 5 mills on the dollar valuation. 
 The rate of the state school tax shall not be less than one-half 
 mill, nor more than i^ mills on the dollar valuation ; and the rate 
 ot the state sinking fund tax shall not be more than three-fourths 
 of a mill on the dollar valuation in any county in the state." It will 
 thus be observed that this board as aboard of equalization shall 
 equalize taxes by varying the rate of taxation on the different 
 counties in case inequalities appear to exist in the valuation of 
 property as returned by such counties. By the limitation of 
 statute preventing a levy of the general fund state tax to exceed 
 5 mills on the dollar valuation, it has been found necessary by 
 the board of equalization, in order to meet the appropriations 
 made by the legislature, to levy to the full limit allowed by 
 law. Even then the revenues raised for a series of years past 
 have been insufficient. It will thus be seen that the board 
 has found itself unable to equalize taxes by varying the rate of 
 the general fund levy and that the equalization of the valua- 
 tion of property in different counties has been restricted to 
 the variations permitted in the levy of the state school taxes, 
 which shall not be less than one-half mill nor more than one and 
 one-half mills, and the sinking fund taxes,which shall not be more 
 than three-fourths mill. The margins thus allowed for equal- 
 izing these taxes are entirely inadequate and, if this method of 
 equalization shall obtain in the future, I urgently recommend 
 that greater latitude shall be given the board by amending 
 this section of the statute so as to increase the levy for general 
 purposes from 2 to 4 mills on the dollar valuation. This would 
 give a much better opportunity of equalizing the burdens of 
 taxation by varying the levy in different counties as the differ- 
 ent valuations may require and yet enable the board to collect 
 the necessary revenues and meet the appropriations made by 
 the legislature. 
 
 DEPOSITORY LAW. 
 
 The depository law, enacted by the legislature of 1891, 
 has now been in operation for a period of time sufficient under
 
 (22) 
 
 ordinary circumstances and normal conditions to test its iise- 
 lulness and advantages, or disadvantages, as the case may be. 
 The wisdom and desirability of such a law have been ques- 
 tioned by many, including those who benefitted by the opera- 
 ation of the previous law, permitting the state treasurer to use 
 all funds of the state under his control lor private gain and 
 speculative purposes during his term of office. I have been a 
 warm supporter ot the depository law and believe in the wis- 
 dom of its enactment. It adds a new source of revenue to the 
 state, and removes the temptation to use public funds for any 
 other purpose than that for which collected. The law itself 
 could be considerably strengthened and I recommend for your 
 consideration the advisability of amending it so as to remedy 
 imperfections which now exist. It is to be remembered that 
 its operation has been during a period when the loss of money, 
 both private and public, has been very general throughout the 
 entire country. I can see no good reason why if the treasurer 
 himself must give a good obligation for the return of funds placed 
 injhis hands for safe -keeping, that the same may not reason- 
 ably be required of the different depositories. Thus is obtained 
 a divided responsibility and an aggregate security that is far 
 better than a simple obligation for the return of the entire sum. 
 The obligation of each depository should be as strong in pro- 
 portion to the amount of money secured, as can possibly be 
 had for the entire sum. I am of the opinion that the law has 
 been abused ; that it has been used as a means of assisting 
 banking interests which may have been in need of current 
 funds for the transaction of business, when the true rule should 
 have been to have made depositories of banking institutions of 
 unquestioned standing and of unquestioned security, with the 
 object in view of having the funds at all times subject to the 
 call of the state treasurer in the ordinary course of his business. 
 I would recommend the amendment of the law so as to 
 provide that sureties of state depositories shall be others than 
 those actively engaged in the management of the depository 
 bank ; that a depository bond should not entitle the bank to 
 deposit of state money thereunder for a longer period than two 
 years ; that the state officers approving the bond should have 
 the right at any time they deem necessary to suspend, as a de- 
 pository, any banking institution and to direct the state treas-
 
 (23) 
 
 urer to withdraw all state funds therefrom ; that the state treas- 
 urer, in the depositing of state money, should at all times be 
 under the control of the board approving the bond, respecting 
 the amount deposited in any one bank, and that the sureties on 
 all depository bonds shall justify by making oath to the value 
 of their property over and above their debts and exemptions. 
 The general government has found it desirable to designate 
 banking institutions as depositories for funds which would 
 otherwise accumulate in the United States treasury, and I can 
 see no good reason why' this same rule should not obtain in the 
 different states, such depositories being made not only the 
 means for the convenient and expeditious transaction of the 
 state's business, but also a source of income to the state. 
 
 At the beginning of my term of office a suit was pending 
 in the Supreme Court to recover the sum of $236,000. from ex- 
 Treasurer J. E. Hill and his bondsmen. The history of this 
 litigation is lamiliar to all of you. The money was lost in the 
 failure of the Capital National Bank. That this amount of the 
 state's money was in existence at the time of the settlement of 
 Treasurer Bartley with his predecessor. Hill, no person 
 acquainted with the circumstances could believe for a moment. 
 The money had evidently been lost and no attempt made to 
 account for it at the expiration of Mr. Hill's term of office, ex- 
 cept by a transfer of credits on paper in this bank, a bond be- 
 ing prepared and approved making the bank a state deposito- 
 ry and this mythical credit being placed to the credit of the 
 state under the depository bond. 
 
 The first trial of the case in the Supreme Court resulted 
 in a disagreement of the jury. The case was again tried and 
 the jury found for tiie defendant. Tiie matter was then argued 
 to the Supreme Court at length upon questions of law, 
 when it was finally decided in favor of the defendant. I am 
 not entirely familiar with tlie details and intricate meanderings 
 of all the questions of law and fact involved in this important 
 case. I do not doubt in the least but that this money has been 
 lost as a result of mismanagement by those having been en- 
 trusted with its collection and disbursement. And it would 
 seem that the responsibility which certainly exists should be 
 located so that the people might regain what has been unlaw- 
 fully taken from them. It is to be regretted that persons guilty
 
 (24) 
 
 of gross misconduct and misapproprialion of funds belonj]jing 
 to the people of the state are sulTered to escape legal responsi- 
 bilit}'. Whether any further eflbrt should be made to recover 
 this money lost to the taxpayers of the state, I leave it to you 
 to determine. 
 
 The legislature made an appropriation for the expense of 
 carrying on this and other suits. There remained after the 
 trial of the first case the sum of $8,709.19. Upon an opinion 
 Irom the court, and after conference with the attorneys repre- 
 senting the state, in order to prevent this appropriation from 
 lapsing, a warrant was issued to me for the balance by the state 
 auditor upon a properly certified voucher presented to him for 
 that purpose. The warrants thus drawn were disposed of by 
 me from time to time in order to meet the further expenditures 
 required in this case. After paying all legitimate claims there 
 was covered in to the state treasury the sum of $4,467.15 yet 
 remaining unexpended of the appropriation. An itemized 
 statement of the expenditures in this case is presented with 
 this message. 
 
 PERMANENT SCHOOL FUND. 
 
 The constitution and the statutes require that the board of 
 educational lands and funds, consisting of the governor, attor- 
 ney general, treasurer, secretary of state and commissioner of 
 public lands and buildings, shall, at their regular meetings, 
 make necessary orders tor the investment of the permanent 
 school funds; but that none of these funds shall be invested or 
 loaned, except on United States or state securities or registered 
 county bonds. At the beginning of the present biennial period, 
 December i, 1894, there were on hand of these funds the fol- 
 lowing amounts, to-wit : 
 
 Permanent school $ 447,037.63 
 
 Permanent university 19,565.63 
 
 Agricultural endowment 61,955.15 
 
 Making the total sum of $ 528,558.41 
 
 These several funds, by a decision of the supreme court, 
 do not come within the provisions of the depository law, and 
 were therefore under the control and disposition of the state 
 treasurer when not invested as above provided, and when idle 
 and uninvested were of no benefit to those who should derive
 
 (25) 
 
 advantacre from the interest in case of investment in interest 
 bearing secureties, as contemplated. During the last biennial 
 period but few county bonds have been issued and these were 
 chiefly refunding bonds to take up other outstanding indebted- 
 ness. Hence, it has been extremely difficult to secure for the 
 state enough of county bonds to absorb the accumulation of 
 these different funds, to say nothing of the large amount on 
 hand at the beginning of the biennial period. During the year 
 of 1895, the board of educational lands and funds obtained only 
 the sum of $40,000, being Otoe county refunding bonds, bear- 
 ing interest at the rate of 4^ per cent. These bonds were ob- 
 tained at par. During this time a large amount of state war- 
 rants, drawing 5 per cent interest, were being issued from time 
 to time. I regarded these warrants as desirable investments for 
 these trust funds, inasmuch as it would provide a ready means 
 for the investment of the entire sum, strengthen the credit of 
 the state and bring its warrants, which were below par, to par 
 value, and, in effect, put the state on a cash basis. 
 
 In a decision of the supreme court, concurred in by all of 
 the judges, and found in the 25th Nebraska at page 660, it was 
 decided that state warrants were state securities within the 
 meaning of the constitutional provision referred to. In addi- 
 tion to this, a precedent had been established by the purchase 
 of these wprrants under the administration of my predecessor, 
 Governor Crounse. The supreme court, also, in a more re- 
 cent case, referred to the first decision above quoted in the fol- 
 lowing affirmatory language : " We must not, however, be un- 
 derstood as holding that warrants against the general fund are 
 not state securities within the meaning of the constitution. 
 Although that question is not presented by this record, following 
 In re State Warrants, 25 Nebraska, 659, and State vs. Bart- 
 ley, supra, we assume them to be legitimate investments for 
 the permanent school fund ; but if the state, as trustee for said 
 fund, desires to invest in that class of securities, it is required 
 to do so on terms of equality with other investors." 
 
 Assuming, therefore, that warrants of this character were 
 legitimate investments lor this large fund, and as they were in 
 every other respect a very desirable form of investment, I in- 
 troduced a resolution before the board of educational lands and 
 funds, at a regular meeting in January, providing for invest-
 
 (26) 
 
 ment of $500,000 of this idle fund in warrants already issued 
 and those therealter to be issued. Some doubt was expressed 
 by some of the other members of the board respecting the le- 
 gality of an investment of this kind, and, at their request, the 
 resolution was referred to the attorney-general for an opinion, 
 which was finally rendered at the regular meeting in April 
 following. This opinion was, in effect, adverse to the decisions 
 of the supreme court cited above, as well as to the precedent es- 
 tablished durinof the administration of Governor Crounse. The 
 attorney-general held that state warrants were not state securi- 
 ties and were not a legitimate investment under the provisions 
 of the constitution. The opinion was concurred in by a ma- 
 jority of the board, thus cutting off every avenue for a speedy 
 and profitable investment of this fund. 
 
 Another resolution was then introduced by me looking 
 towards the investment of the unemployed school fund in 
 United States bonds. In this effort to find the best possible 
 investment alter we were prevented from purchasing state 
 warrants, I failed to receive the co-operation of any other 
 member of this board and no investments were made in that 
 direction. 
 
 Registered county bonds, the only remaining investments 
 permitted by the constitution, have been purchased from time 
 to time as reported in detail by the state treasurer. These 
 bonds have been purchased upon a basis of interest of 4^ per 
 cent or more. It will be observed that there was secured for 
 the investment.of the permanent school funds, county bonds in 
 the total sum of $345 ,74 1 .92. There now remains of these trust 
 funds, as shown by the report of the state treasurer, the total 
 sum of $528,558.41. 
 
 A constitutional amendment providing for the investment 
 of this fund in school district warrants, as well as specifically 
 naming state warrants as legitimate investment, was submitted 
 to a vote of the people at the last election, but its adoption is 
 as yet a matter of uncertainty. I think, however, I can safely 
 assume that in any event, the board of educational lands and 
 funds, as constituted by the election of the present officers, will 
 co-operate with me in the investment of this fund in the state 
 securities mentioned, which, if successful, will furnish an ample 
 opportunity for the profitable investment of this entire fund.
 
 (27) 
 
 Yet, I am of the opinion that as early as practicable, it would 
 be advisable, by constitutional amendment, to make more com- 
 prehensive provisions for the investment and management of 
 this trust fund, which is constantly increasing and which in 
 time will grow to enormous proportions. This fund is the pa- 
 trimony of the children of the state, to be invested and the in- 
 terest applied for their education. Such a magnificent endow- 
 ment is well worthy the jealous care and watchfulness of those 
 entrusted with its custody, and it is of the utmost importance 
 that provisions be made for its investment upon advantageous 
 terms, and yet with all reasonable precautions for the perma- 
 nent safety of the principal. How soon this may be brought 
 about is perhaps yet uncertain. 
 
 EXPENDITURES IN STATE INSTITUTIONS. 
 
 It has been the custom heretofore for each legislature to 
 make appropriations tor the biennial period ending with March 
 31. Section 19, of article 3, of the constitution, provides that 
 " each legislature shall make appropriations for the expenses 
 of government until the expiration of the first fiscal quarter 
 after the adjournment of the next regular session and all appro- 
 priations shall end with such fiscal quarter." The fiscal year 
 begins December i. The legislature usually does not adjourn 
 until some time during the second fiscal quarter. The time 
 for which such appropriations should be made, according to 
 this construction, would not expire until the last day of the 
 third fiscal quarter, which would be August 31. With this 
 provision in view the state auditor has requested estimates of 
 expenditures to be presented to this legislature for twenty-nine 
 months instead of twenty- four, as has been the custom hereto- 
 fore, for the purpose of bringing the appropriations up to the 
 time mentioned. 
 
 The total appropriations made by the last legislature for 
 the current biennial period were $2,784,684.60, which may be 
 divided into the following items : 
 
 Legislative $ 125,000.00 
 
 Executive offices and state boards 592,160.00 
 
 University and Normal school 368,441.89 
 
 Maintenance of state institutions 938,297.37 
 
 Miscellaneous appropriations 760,785.34 
 
 Total $2,784,684.60
 
 (28) 
 
 It will thus be seen that of the total appropriations, over 
 one-third are for the maintenance of state institutions. After 
 deducting appropriations for repairs and permanent improve- 
 ments, the net appropriations for the maintenance of these 
 institutions for 1893 and 1894 were $884,436; and the net ap- 
 propriations for 1895 and 1896 were $835,829.34. The total 
 number of inmates during the period 1893-4 was 2,244, show- 
 ing a per capita expense for this period of $394.14; the total 
 number of inmates for the period 1895-6 had increased to 
 2,538, and the per capita expense decreased to $329.33. The 
 great bulk of these savings was made in only a portion of the 
 slate institutions, and had the same general decrease prevailed 
 in all the institutions the saving would have been much greater. 
 I am of the opinion that still further savings can be made in the 
 expenditures of these diOerent institutions, and for the purpose 
 of giving you all the information possible, I present herewith 
 a tabulated statement showing the total appropriations for the 
 two preceding biennial periods, and the manner in which they 
 were expended, together with the average per capita cost in 
 each of these institutions. This contains also other information 
 which may be of value to you in determining the needs of these 
 institutions for the time for which you shall make appropria- 
 tions. 
 
 soldiers' home at grand island. 
 
 The Soldiers' Home at Grand Island has assumed large 
 proportions by the erection of new buildings, cottages and 
 provisions for increased capacity in caring for worthy Union 
 soldiers, for whom it was constructed. Large sums of money 
 are appropriated by each recurring session of the legislature 
 for its maintenance. It now has 205 inmates, a larger number 
 than it has ever had heretofore. The last legislature appropri- 
 ated $12,000 for a new addition, together with numerous other 
 sums for permanent repairs and increased facilities in its man- 
 agement in different ways. There has been appropriated 
 altogether many hundred thousand dollars for the erection and 
 reparation of good, substantial buildings. It is not only fitting 
 and proper but it is a duty owed by the people of this state, 
 and cheerfully performed, to make suitable provisions for the 
 support of all worthy and needy survivors of the Union armies 
 in the civil war. I but speak the sentiments of the patriotic
 
 (29) 
 
 people of Nebraska when I say that no burden is borne more 
 wilHngly or duty performed with greater alacrity than that 
 which is required in making ample provisions for the main- 
 tenance in comfort of these worthy veterans who were the de- 
 fenders of the Union. 
 
 The management of the institntion for the past two years 
 has been the most economical during its history. The kind 
 treatment and ample provisions for the comfort and pleasure 
 of the inmates have been all that could be desired. The mem- 
 bers of the Visiting and Examining Board, assisted by the 
 Commandant, have been tireless in their eflbrts to conduct the 
 institution so as to fully accomplish the purposes for which it 
 was established. 
 
 BRANCH soldiers' HOME AT MILFORD. 
 
 The last session of the legislature passed an act providing 
 for the establishment of a branch Soldiers' Home at Milford 
 by the leasing of land and buildings already constructed. 
 Eight thousand dollars was appropriated to carry into effect 
 this act. It was provided in the act that the land and buildings 
 referred to should, within thirty days after its passage, be leased 
 to the state free of charge for two years, with the privilege of 
 eight additional years for a sum of not exceeding $800.00 per 
 annum. Under the direction of the Board of Public Lands 
 and Buildings, alterations and repairs have been made fitting 
 the buildings for the reception of inmates. Capt. J. H. Culver 
 was, by this board, appointed Commandant. A full and de- 
 tailed report for the period ending November 30, has been 
 made by the Commandant and is presented foryour consider- 
 ation. There were 45 inmates in this institution at the time 
 the report was made and a deficiency for its maintenance cre- 
 ated up to that time in the sum of $10,521.20. It is also 
 asked that $13,500.00 be appropriated for the purchase of this 
 property. 
 
 Tlie maintenance of two institutions for the support of dis- 
 abled and indigent soldiers when tiie objects sought can be ac- 
 complished in one institution, entails an additional and unnec- 
 essary expense on the taxpayers of the state. It is true that 
 the general government has provided means for assisting the 
 different states in caring for the veterans of the war by contri- 
 buting from the general treasury one hundred dollars per an-
 
 (30) 
 
 niim for each inmate of the homes established, but this in no 
 wise changes the rule or the principle just announced. The 
 revenue derived from the general government is the same per 
 capita whether one or two institutions are maintained, and it 
 is our duty to keep within reasonable bounds these difTerent 
 expenditures involving a taxation of the citizens of our state. 
 While I do not recommend unreservedly the discontinuaace of 
 the Home at Milford, I ask of you a careful and thorough 
 study and investigation as to the probable demands which will 
 have to be met by our people in providing for these worthy 
 citizens. If the conclusion is reached that all the necessary 
 comtorts and conveniences can be as well provided for in the 
 home already established, with reasonable expenditures for 
 increasing its capacity, it is a serious question whether this 
 ought not be done rather than to incur additional expense by 
 maintaining two different institutions. The latter course ne- 
 cessitates the employment of two sets of officers and increased 
 demands for expenditures which might be greatly reduced by 
 concentration of population and the utilization of fixed conve- 
 niences which are of sufficient capacity to answer the demands 
 a much larger population would make upon them than exists 
 at the institution at present. 
 
 It is true that the location at Milford is beautiful, attrac- 
 tive, and the surroundings very pleasant. The water, I have 
 no doubt, is very healthful and there are, perhaps, some ad- 
 vantages which do not exist at any other institution in the 
 state. These are inducements which appeal for the continu- 
 ance of this institution, yet it is to be borne in mind that the 
 surroundings and environments can be made very pleasant, 
 and are so in fact, in every institution in the state. State in- 
 stitutions have been located only in places where the people 
 generally have found it very pleasant to establish their homes 
 and rear their children and enjoy the usual degree of happi- 
 ness allotted to mankind generally. 
 
 PENITENTIARY. 
 
 By the census of 1890 it was shown that Nebraska had a 
 population of 1,058,910. At the present time it is fair to 
 assume that the population has increased to 1,250,000. By 
 an examination of the report for the biennial period ending 
 November 30, 1894, it will be found that the average number
 
 (30 
 
 per year sentenced to the penitentiary was i75i, and the aver- 
 age number per year tor the biennial period just closed, as 
 shown by the report of the present warden, is i'j6i. The 
 number of prisoners confined in the penitentiary November 30, 
 1894, was 351 ; while the number imprisoned November 30, 
 last, or at the end of ihe biennial period, was 275, thus show- 
 ing a considerable decrease. It will also be observed, by the 
 report of the pardons and commutations submitted herewith, 
 that executive clemency has been exercised with less frequency 
 than during the years previous, and the number paroled only 
 a little in excess thereof. These statistics disclose Nebraska 
 standing in a very enviable position respecting the low per- 
 centage of criminality as well as that of illiteracy, thus confirm- 
 ing the axiom that ignorance and vice go hand in hand. 
 
 The condition of the penitentiary upon the whole is very 
 good. The present management has taken advantage of the 
 opportunities which have been offered for improvement. A 
 careful study of the history of the penitentiary since its or- 
 ganization will not disclose any two years of its existence dur- 
 ing which greater progress was made than during the biennial 
 period just closed. Credit for this condition is due to the 
 efficiency of the management of the present warden who, by a 
 wise and judicious policy, has improved the standard of morals 
 in the penitentiary as well as made large reduction in the ex- 
 penditures. This good record has been made by the warden 
 despite the fact that he has failed to receive the co-operation 
 of most of those with whom he has had official relations in its 
 management. 
 
 The question of the management of penal institutions, is 
 of course, diflicult under most favorable circumstances. There 
 are various methods of management, each having warm advo- 
 cates. While the encouragement of any method of manage- 
 ment that will develop the reformatory features of prison life 
 appeals strongly to the sympathetic and humane sentiments of 
 mankind, yet it is to be borne in mind that the place should 
 not be made so inviting that the careless and wickedly dis- 
 posed will commit deeds of lawlessness without fearing the 
 punishment to follow. The humanity of the present age de- 
 mands that punishment for violation of law by imprisonment 
 or otherwise shall not be inflicted barbarously, inhumanly, or
 
 in any manner that wouUl tend to stifle the better sentiments 
 of a man, even though a viohitor of the law ; but rather that 
 the punishment shall be humane, yet reasonable, fixed, certain 
 and determined in its character. This may be brought about 
 by confinement in the penitentiary in solitary cells, in restraint 
 ot liberty, in strict and rigid discipline, in plain, simple fare, 
 yet plenty and wholesome, clothing of the most common 
 quality and some particular uniform color, and hard, steady and 
 continuous labor during the period of confinement. I do not 
 believe in a sentimentality that would supply to the prisoner, 
 convicted frequently of the most heinous crimes known to man- 
 kind, with every luxury, form of amusement or intellectual re- 
 creation that would be regarded as special privileges by many 
 who lead a humble yet honest and upright life. I believe in 
 classification of the prisoners, so far as it can be done, with a 
 view of separating the older and more hardened criminals 
 from those who have committed, perhaps under mitigating 
 circumstances, their first off'ense, and who sincerely repent, 
 desiring to pay the penalty for the broken law, retrieve the 
 mistakes of the past, and lead an honest and upright life. Such 
 prisoners should receive all reasonable encouragement. This, 
 it seems to me, might properly be done by constructing new 
 cells in the new cell-house in the east wing of the penitentiary, 
 which is now used as a chapel. This would render it less dif- 
 ficult to maintain this class of prisoners without coming so 
 much in contact with the more hardened class. 
 
 While some advocate changing the striped clothing cus- 
 tomary to be used in prisons all over the country, I doubt the pro- 
 priety of it. I understand it has been tried only in very few 
 prisons and there found to not work very satisfactorily. Its 
 advocates say it is degrading and humiliating for the offender 
 to be required to wear this badge of a broken law. It can be 
 said with equal propriety that it is humiliating to be put in 
 prison and restrained of one's liberty. The logical sequence of 
 such reasoning would be to discharge all the prisoners and tell 
 them to go their way and sin no more. We must come face to 
 face with the practical side of depraved humanity and prison 
 management of such, as well as to have the theoretical. 
 
 We have had in this state almost ever since its organization 
 E form of prison management that has been debasing and de-
 
 (33) 
 
 grading, a system of leasing the penitentiary and the convicts 
 therein to selfish individuals for the purpose of private gain. 
 We have at least rid ourselves of this one objectionable feature of 
 prison management. The last session of the legislature passed 
 an act providing for the annulment of the lease of the prison 
 and prisoners and, also providing an appropriation for the pay- 
 ment of what should be found to be due the lessee by the can- 
 cellation of the lease. Under the provisions of the act the lease 
 was cancelled, the appropriation made by the legislature for 
 that purpose being exhausted in the payment. This report is 
 on file in the office of the Land Commissioner. The state is to 
 be congratulated upon the consummation of such a laudable 
 object as that of cancelling this lease, even at the expense it 
 incurred. 
 
 After the state had taken full control and possession of 
 the penitentiary and the labor of the convicts, an efTort was 
 made by the Board of Public Lands and Buildings to again lease 
 the penitentiary grounds, machinery and labor, thus returning 
 to the objectionable system from which we had just freed our- 
 selves. As soon as the intention of the board came to my no- 
 tice, I took occasion to communicate to them my views in re- 
 gard to the matter, in the nature of a protest, asking that the 
 state should assume control of the penitentiary and of the la- 
 bor of its convicts, except as the same had been contracted out 
 under the old lease, and which by the terms of the act for its 
 cancellation, were to be continued in force during the period 
 for which they were made. The board, however, proceeded 
 to again lease the penitentiary grounds and property, as well 
 as the labor of its convicts, subject to the sub-contracts men- 
 tioned. It occurred to me that this contract did not properly 
 protect the interests of the state, was beyond the authority of 
 the board to make, and ought not to be recognized as a legal 
 and binding contract on the part of the state. The warden, 
 being of the same opinion, declined to recognize the validity 
 of the contract. The controversy was submitted to the Supreme 
 Court, and an opinion rendered to the effect that the attempt 
 to again lease the prison and the labor of the convicts was il- 
 legal and that the board had exceeded its authority. 
 
 After the decision of the Supreme Court, the board called 
 in Mr, James Whitehead, and under the designation of agent
 
 ot the board, he assutned to perform some duties connected 
 with the management of the penitentiary, and which might 
 very properly have been done by the warden, under the direc- 
 tion of the board. The report of the board's agent is presented 
 with the report of the Land Commissioner. I am satisfied that 
 he has accomplished nothing that might not have been done 
 by the warden, and that the expenses occasioned by his ap- 
 pointment were utterly needless. It is disclosed by the report 
 of the agent that there has been collected by him, as the pro- 
 ceeds of the labor of convicts, $14,280.73. Of this amount 
 there was expended $10,014.97 and paid into the state treas- 
 ury $4,1 15.08. These expenditures I regard as having been 
 made without authority of law. All moneys derived from the 
 labor of convicts should, it would seem, be turned into the state 
 treasury to be drawn therefrom on approved vouchers, as in 
 other cases, in the manner provided by law. The board hav- 
 ing the power to make provisions for the proper employment 
 of idle convicts seems not to have exercised this authority, ex- 
 cept temporarily from time to time, as shown by the report of 
 the agent of the board. It also appears that the contracts or 
 agreements temporarily entered into were at a much lower 
 figure than heretofore secured. 
 
 I have thought it proper to go into details to some extent 
 regarding the history and condition of this institution, as it 
 seems necessary that there should be an entire revision of the 
 law respecting its future management. Under the lease sys- 
 tem there have been established different industries at the insti- 
 tution for the purpose of utilizing the labor of the convicts. These 
 industries have been maintained by sub-contractors of the lessee 
 and are yet owned by them. There are now in operation a 
 broom factory, a harness factory, a cooper establishment and 
 an iron foundry. The capacity of these several industries is 
 perhaps large enough to utilize all of the labor of the convicts 
 not required in the management of the institution. If arrange- 
 ments could be made for the continuance of the work per- 
 formed in these diflferent establishments at a reasonable rate of 
 wages for the labor of the convicts, with suitable provisions 
 and restrictions to fully protect the rights of the convicts and 
 the morale and discipline, it becomes a question whether, 
 at the present time, the state should attempt to employ all con-
 
 (35) 
 
 victs on its own account. It would seem advisable to inaug- 
 urate some system looking towards the ultimate control on the 
 part of the state of all of the labor of the convicts and that the 
 penitentiary should be made self-sustaining, or as nearly so as 
 possible. Prisons in several other states are, as I am advised, 
 entirely self-sustaining. In adopting a plan of conducting the 
 penitentiary entirely on state account, it would seem the better 
 part of wisdom to begin cautiously and in a moderate way, 
 and by careful experiment determine the best method of util- 
 izing the labor of the convicts without unnecessary expense 
 on the part of the state or loss occasioned by inaugurating an en- 
 terprise which can not be successfully carried out. In this is also 
 involved the question of bringing into competition convict labor 
 with that of free labor. The penitentiary should be so conducted 
 as to reduce to the lowest degree possible, with due regard to 
 the interests of the state, all competition with free labor. I 
 can see no objection to the inauguration of a system looking 
 to the manufacture and production of numerous articles re- 
 quired in the maintenance of the different state institutions as 
 a means of providing employment for prison labor and making 
 the prison self-sustaining. This plan has many warm advo- 
 cates among those who have studied the subject of prison la- 
 bor. This could be introduced in a small way, and gradually 
 developed as wisdom and experience would suggest until, 
 perhaps, the larger portion of the inmates can thus be em- 
 ployed. 
 
 This whole question is submitted to you for your consid- 
 eration with the hope that a law will be enacted providing for 
 the state's management of the penitentiary, in such a manner 
 as to place the institution on a higher moral plane and provide 
 for the proper utilization of the labor of the convicts while in 
 confinement. 
 
 HOSPITALS FOR THE INSANE. 
 
 Nebraska has three hospitals for the insane, located at 
 Lincoln, Norfolk and Hastings, respectively. I choose to treat 
 all of them together and in a general way. They have each 
 been managed in a wise, careful and economical manner. The 
 professional treatment has been of a high order and the wel- 
 fare of the unfortunate wards of the state confined in these in- 
 stitutions has been carefully looked after in all respects. A
 
 (36) 
 
 visit to any one of these institutions can not but impress one 
 with the high professional skill and orderly management which 
 characterizes it. The welfare of the inmates is improved 
 wherever possible and the utmost kindness and, gentleness in 
 caring for them prevails. 
 
 A considerable saving has been made in the expenditures 
 per capita. Some further saving can doubtless be made and yet 
 I am inclined to the view that in these institutions the minimum 
 expenditures in their maintenance has been very nearly reach- 
 ed. In caring for the unfortunate insane, it is apparent to the 
 ordinary observer that the necessary employes, as well as offi- 
 cers of such an institution, are more numerous than are 
 required in any other institutional work. The proposition 
 of reducing expenditures further by a reduction of salaries has 
 been suggested to me. I submit it to you for your careful and 
 judicious consideration, without recommendation on my part 
 further than to say that I approve of any effort which may be 
 made to place all salaries and wages of employes of the state 
 upon a basis of equality, as near as may be done, with refer- 
 ence to the character of the work to be performed. "The laborer 
 is worthy of his hire" and all servants of the state, in whatever 
 capacity employed, should receive fair and just compensation 
 and their services should be the very best obtainable, honestly, 
 faithfully and intelligently performed. 
 
 The management of each of these institutions has made 
 requests for appropriations to provide additional room. Each 
 is now crowded to its utmost capacity and yet there are a 
 number of insane persons being cared for by the difTerent 
 counties of the state who could be much better and more eco- 
 nomically treated in state hospitals. Reasonable provisions 
 should be made to meet the increasing demands upon the^e 
 institutions in the most economical manner compatible with 
 the welfare of the unfortunates for whom such institutions are 
 maintained. It will be observed that the population of the 
 Hastings Asylum and the Lincoln Hospital are each larger than 
 the Norfolk Hospital. The best results as to economy and 
 efficiency in treatment and management can be obtained as 
 the population of these institutions increases up to a certain 
 limit, which as yet has not been reached in any of them. In 
 view of the fact that the institution at Norfolk has less room
 
 (37) 
 
 than either of the others, it seems to me that if the legislature 
 shall determine to make appropriations for additional room 
 and it can be provided for with as little cost at the Norfolk in- 
 stitution as elsewhere, it would be advisable to enlarge 
 that institution until its capacity has reached 350 to 400 
 inmates. The suggestions made by the superintendent of the 
 Lincoln Hospital present some features of economy in the way 
 of procuring additional room with a minimum of expense, which 
 I submit to you for your careful consideration. 
 
 The Hastings institution is denominated an As3'lum for 
 the Chronic Insane and receives its inmates from the other 
 two, b}' transfer of inmates after a period of time has shown 
 that the hope of recovery is very slight, thus making it appar- 
 ent that that institution for the insane, if the intention of the 
 law makers in its establishment be carried out to its fullest ex- 
 tent, will have to have its capacity still further increased, 
 although it now has the largest population of the three. Some 
 interested in the subject of caring for the insane favor the 
 placing of all three of these institutions on an equality, that is, 
 making them all asylums for the insane, without qualifying the 
 different degrees or types of insanity. I do not believe it 
 would be advisable 10 make any change of this kind at this 
 time and am inclined to the view that the present arrange- 
 ment has advantages that perhaps overcome any disadvan- 
 tages or objections that might be urged against its continuance. 
 The request for an appropriation for additional buildings at 
 the Hastings Institution is with a view, I assume, of increasing 
 its capacity so that it may be able to receive inmates from the 
 other two institutions by transfer as rapidly as it shall appear 
 that the condition of the patients renders it advisable to place 
 them in this institution for permanent treatment, as contem- 
 plated by the law creating it. It will be observed, however, 
 that no fixed or definite rule can be made in determining just 
 what patient shall be transferred. It will therefore fulfill reas- 
 onably well its mission by receiving those seemingly best 
 adapted to transfer only so fast as vacancies may occur by 
 death or recovery, after its maximum number of inmates has 
 been reached. I invite your attention to a careful perusal of 
 the biennial reports of the superintendents of these three insti- 
 tutions, which will give you much valuable information.
 
 STATE INDUSTRIAL SCHOOLS. 
 
 By constitutional enactment "the legislature may provide 
 by law for the establishment of a school, or schools, for the safe 
 keeping, education, employment and reform of all children 
 under the age of sixteen years, who, for want of proper 
 parental care or other cause, are growing up in mendicancy 
 or crime." Under this provision the Industrial School at 
 Kearney, lor both girls and boys, was first established. After- 
 wards the legislature, in its wisdom, very properly made pro- 
 visions for two separate institutions. The one at Kearney was 
 maintained as an Industrial School for boys, and another es- 
 tablished at Geneva of the same character for girls. The re- 
 ports of the superintendents of these two institutions are quite 
 complete and show them to be in a satisfactory condition. 
 While I do not think there has been any extravagance in the 
 management of either of these institutions, I am of the opinion 
 that there is opportunity for greater frugality than heretofore 
 exercised without interfering with the efficiency of ihe work 
 or reaching the line of demarcation between parsimony and 
 rigid economy. I invite your attention to the improvements 
 suggested by the superintendents. Some of them are well 
 worthy of your careful consideration. I am not prepared to 
 favor appropriations for additional buildings at either of these 
 institutions. 
 
 INSTITUTION FOR FEEBLE-MINDED YOUTH. 
 
 The work of the Institution for Feeble-Minded Youth, lo- 
 cated at Beatrice, appears to be in a satisfactory condition, and 
 I know of no suggestions for improvement to make to you, 
 unless perhaps it is along the line of more rigid economy in its 
 management. I coincide with the views of the superntendent 
 respecting the advisability of making further provisions for a 
 class of citizens who are past what might be termed the school 
 period in an institution of this kind and are yet not fit subjects 
 to be again returned to the county of their residence, there to 
 struggle for a living and be subjected to unfavorable comment, 
 rendering their lives miserable. I am impressed with the 
 view that a large number, afflicted as are these wards of the 
 state, should be cared for and looked after with the same spirit 
 of humane regard as that given to the insane; and yet I 
 am doubtful of the propriety of this legislature making addi-
 
 (39) 
 
 tional appropriations sufficient to accomplish this much desired 
 result. 
 
 INSTITUTIONS FOR THE DEAF AND FOR THE BLIND. 
 
 I desire to call the attention of the legislature to the 
 urgent necessity for suitable legislation making proper provis- 
 ions for the control, government and maintenance of the Insti- 
 tution for the Blind at Nebraska City and the Institute for the 
 Deaf and Dumb at Omaha. These two institutions are so 
 nearly alike in character that I am of the opinion each can be 
 provided for by the passage of a single act. In the treatment 
 of this subject, in speaking of one, I take it that the same re- 
 marks will apply as well to the other. The law at present 
 governing the Institute for the Deaf and Dumb is found in 
 Chapter 22, of the Compiled Stautes of 1893 ; while the law 
 governing the Institution for the Blind is found in Chapter 42 of 
 the same statutes. The law for the governing of the Institute 
 for the Deaf and Dumb was passed in 1875, prior to the adop- 
 tion of our present constitution, as was also the law governing 
 the other institution. The present constitution provides that 
 a Board of Public Lands and Buildings, consisting of the 
 Commissioner of Public Lands and Buildings, the Secretary 
 of State, Treasurer and Attorney General, shall have general 
 supervision and control of all buildings, grounds and lands of 
 the state, the state prison, asylums, and all like institutions, ex- 
 cept those for educational purposes. It was intended by the 
 Original enactment ol the law governing these institutions that 
 the Institute for the Deaf and Dumb should be controlled by 
 a board of directors, as mentioned in the original act, and the 
 Institution for the Blind should be governed by a board of 
 trustees to be selected by the legislature, as therein provided. 
 
 Under the provisions of the present constitution, these in- 
 stitutions could no longer be governed as originally intended, 
 and in the case of the Institute for the Deaf and Dumb, the 
 Board of Public Lands and Buildings assumed control and 
 management, the governor exercising the authority to appoint 
 the managing officers. This institution has been conducted in 
 thi's manner until the present time. 
 
 Respecting the Institution for the Blind, in an early decis- 
 ion of the Supreme Court, lound in the 6th Nebraska, page 
 286, in the case of State vs. Bacon, it was decided that this
 
 (40) 
 
 institution was not an educational iniJlilulion within the mean- 
 ing of the section of the constitution heretofore cited and was 
 within the control of the Board of Public Lands and Buildings. 
 Thereafter this institution was under the control and manafje- 
 ment of that board, the goveVnor appointing the managing 
 oflicers. In a recent decision, found in the case of Curtis vs. 
 Allen, 43 Nebraska, 184, the Supreme Court reversed the de- 
 cision above mentioned and held that this was an educational 
 institution and not under the control of the Board of Public 
 Lands and Buildings. 
 
 Tiiat both of these two institutions are educational in their 
 aims and objects rather than asylums or permanent abiding 
 places for the unfortunate blind and deaf, it seems to me hardly 
 admits of argument. The latter decision of the Supreme 
 Court was in accord with the spirit and intention of the law es- 
 tablishing and providing for the maintenance of these two 
 institutions, and if either is found to be educational in its char- 
 acter by a proper tribunal, it must follow as a logical sequence 
 that the other is likewise of the same character ; the one being 
 for the purpose of educating the unfortunate children of the 
 state who have lost the sense of sight and the other for those 
 who have lost the sense of hearing. Viewing the subject in 
 this light, and yet not wishing to exercise any control or super- 
 vision that might not have the approval of my fellow state offi- 
 cers composing the Board of Public Lands and Buildings, I 
 requested the Attorney General for an opinion as to whether 
 the Institute for the Deaf and Dumb was of the same character 
 and standing as the Institution for the Blind ; in other words, 
 whether it was an educational institution or an asylum, within 
 the meaning of the constitutional provisions cited above. In an 
 opinion which will be found in his report, the Attorney General 
 passes upon the question adversely to the position taken by 
 myself. With all due deference to the opinion of the Attorney 
 General, I am convinced that both these institutions are edu- 
 cational in their character and should be treated as such. This 
 view is held by their superintendents, and the method of the 
 work in operation in each of them clearly demonstrates it fo be 
 correct. 
 
 After the latter opinion of the Supreme Court respecting 
 the legal status of the Institution for the Blind, some efTort was
 
 (4t) 
 
 made by the last legislature to enact a law respecting its gov- 
 ernment and management, but for some reason it failed to pass 
 both branches of the legislature. An effort was then made to 
 fall back on the old law enacted at the time of the creation of 
 these institutions and elect trustees by a joint session of the 
 legislature, as provided by the original act. This section hav- 
 ing been abrogated by the adoption of the constitution, I deem- 
 ed it my duty to refuse to recognize these so-called trustees or 
 any of their acts, believing the action of the legislature to be in 
 conflict with Section lo, of Article 5 of the Constitutional pro- 
 vision governing the appointment of officers created by the 
 the constitution or by law. This resulted in another case in 
 the Supreme Court, in which it was decided that the position 
 taken by me in this matter was correct and that the action of the 
 legislature was in conflict with the constitution. The institu- 
 tion has since been under the control of a superintendent ap- 
 pointed by the governor and responsible to the chief executive 
 for the proper discharge of his duties. 
 
 This state of affairs renders the situation in regard to these 
 two institutions unsatisfactor}'. Assuming, as I have, that the 
 Institute for the Deaf and Dumb is, notwithstanding the action of 
 the Board of Public Lands and Buildings in assuming control, 
 in exactly the same situation as the Institution for the Blind, 
 I recommend a revision of the two chapters referred to. The 
 revised law should provide for the appointment of a board of 
 control or trustees, of three or five members to serve for stated 
 periods with compensation fixed at a certain amount per diem, 
 together with actual expenses, and not exceeding altogether a 
 fixed sum during any one year. They should be required to 
 meet not oftener than once in every three months for the pur- 
 pose of examining into the general condition of these institu- 
 tions and taking such action as shall be deemed advisable for 
 their proper conduct and management. 
 
 NEBRASKA INDUSTRIAL HOME, AND HOME FOR THE FRIENDLESS. 
 
 With a view to aid in the suppression of prostitution, the 
 legislature of 1881 made provisions for the establishment of the 
 Nebraska Industrial Home, to provide shelter, protection, em- 
 ployment and means of self support for penitent women and 
 girls. The government was placed under the supervision of 
 the "Woman's Associated Charities of Nebraska" and an ap-
 
 (4^) 
 
 propnation of $15,000 was made to purchase a site and erect 
 buildinirs. This institution was located at Milford and has 
 since been in operation, doubtless accomplishing great good in 
 the direction intended by its founders. 
 
 In 1887 the legislature saw fit to make an appropriation of 
 $5,000 to establish and provide for the erection of a Home for 
 the Friendless at Lincoln, its management to be under the 
 supervision of the Society of the Home for the Friendless. 
 Hundreds of homeless children and aged women have been 
 cared for at this institution during its existence. 
 
 The similarity of these two institutions is marked. Each 
 originated with an organized society of benevolently disposed, 
 christian women, who desired to benefit society by rescuing 
 fallen women and providing a comfortable home for those whom 
 unfortunate circumstances had cast helpless upon the world. 
 
 At each recurring session of the legislature, liberal appro- 
 priations have been made for the maintenance of these institu- 
 tions, and at the present time the state is almost the entire 
 support of each of them. I am in some doubt regarding the 
 propriety of the state assuming the financial responsibility and 
 not having equally the responsibility for the government and 
 management of them. The conditions under which they are 
 now managed and maintained bring a sense of responsibility 
 and primary duty upon the part of the governing officers to the 
 the associations referred to rather than to the state. Hereto- 
 fore there has been more or less contention and controversy 
 respecting the authority of the state in the management of 
 them, though I am pleased to say that for the two years past the 
 relations have been of the most pleasant and amicable charac- 
 ter. It seems to me it is a sound proposition, however, that the 
 state should have the complete and absolute control and man- 
 agement of all its institutions and that the officers should be 
 responsible alone to the state for the faithful and intelligent 
 discharge of their duties. The institutions under consideration 
 are of a peculiar character, and as the women seem to be bet- 
 ter adapted to know the needs and best methods of conducting 
 them, it might be well to provide for a government by a board 
 of women who should be directly responsible to the state for 
 the manner in which they discharge their duties. This plan 
 would serve the purposes and fulfill the objects sought by their
 
 (43) 
 
 founders, and ^'■et bring the institutions within the complete 
 control of the state, where, in my judgment, they properly be- 
 long, if the state is to be held responsible in any way for their 
 management and government. 
 
 CONTROL OF STATE INSTITUTIONS. 
 
 The interests of the state in these public Institutions 
 amounts to millions of dollars and there are expended annually 
 large sums of money for their maintenance in conducting the 
 business for which they were constructed. They should each 
 be governed and controlled in such a way as to bring about 
 the greatest harmony between the several institutions, as well 
 as the greatest economy in their management in the interest of 
 the taxpayers of the state. Their control and management 
 heretofore by differ.ent bodies, and as many diflerent methods, 
 has been productive of much needless expense and friction as 
 to the policies which should obtain. This fact, I doubt not, has 
 become quite apparent to every executive of the state of Ne- 
 braska. Governor Boyd in his closing message to the legisla- 
 ture speaks of this matter as follows : 
 
 "And in this connection I would further call your atten- 
 tion to the fact that there are a number of state institutions over 
 which the authority of the executive has been by statute taken 
 from him. In the case of the Industrial School for Boys at 
 Kearney, of the Industrial School for Girls at Geneva, of the 
 Institute for Feeble-Minded at Beatrice, and of one or two 
 others, the appointing power is vested in the Board of Public 
 Lands and Buildings. This board is also by the constitution 
 given full control of all institutions, and the executive has no 
 check upon them whatever. This should not be so. The Gov- 
 ernor should have the power to appoint the superintendents 
 and managing officials in every one of the state institutions ; 
 and I would recommend that this legislature so amend this 
 statute, that the appointing power shall be fully restored to 
 him." 
 
 My predecessor, Governor Crounse, likewise took occas- 
 ion to express his views on this same subject in the following 
 language : 
 
 "In the case of some of the institutions of the state the 
 governor appoints the superintendents and other ofllcers, while 
 in others this authority is given to the Board ot Public Lands
 
 (44) 
 
 and Buildings. This is wrong. The Governor should be 
 charged with the appointment in all these cases, and he alone 
 should be responsible to the people for his action. The respon- 
 sibility for a bad appointment should not be a divided one, and 
 one not directly traceable or chargeable to any one person. 
 Considerations of a political or partisan character may be op- 
 posed to a lavorable acceptance of this recommendation at this 
 time, still sound legislation should not be avoided for fear of 
 the loss of some partisan advantage. It is unfortunate that the 
 heads of some institutions, in cases where to fitness experience 
 has been added should become the sport of political fortune, 
 and for good reasons only should tried and experienced offi- 
 cers be replaced." 
 
 To all that has been said by these two gentlemen on this 
 subject, I can give my hearty approval. I am quite well con- 
 vinced that a more satisfactory administration of the affairs of 
 these various institutions can be secured when there is one re- 
 sponsible head to whom each must be required to account for 
 the faithful discharge of the duties of his position, and that a 
 fixed and well defined policy deriving its source from one head 
 may be inaugurated which will work advantageously in each 
 of the institutions. In my judgment it was never intended by 
 the constitution that the Board of Public Lands and Buildings, 
 therein created, should have the control and supervision of the 
 administrative and governmental part of these different insti- 
 tutions, but rather, as their name implies, and as expressed in 
 direct terms by the constitution, they should have control of 
 the public lands and public buildings, to look after, to care for 
 the repairs and improvements, the erection of new buildings 
 when provided for by the legislature, and such other control 
 and supervision as pertain to the buildings and lands belong- 
 ing to the state, as distinguished from the care, maintenance 
 and control of the inmates of such institutions. There has 
 been almost continually, since the enactment of the law defin- 
 ing the duties of the Board of Public Lands and Buildings, more 
 or less diflference between that board and the executive re- 
 garding the powers and duties of each, and this without regard 
 to whom may have been occupying each of the respective po- 
 sitions. This ought not to be permitted to exist, and the duties 
 of this board should be made clear, specific and well defined,
 
 (45) 
 
 and provisions made so as to prevent any differences respect- 
 ing the duties of executive officers and this as well as other 
 boards created by statute. This board by law is now required to 
 approve vouchers for expenditures made by many different 
 boards, as well as the vouchers required in its own expendi- 
 tures. An auditing board should doubtless exist to approve 
 the vouchers issued by the heads of the different departments 
 in state institutions, as well as by boards when created with 
 authority to incur indebtedness or make expenditures in the 
 discharge of their duty. This board might very properly be 
 composed of two or three state officers, the auditor being one, 
 as these duties pertain very naturally to the duties of his own 
 office, each voucher upon the state treasurer having to be pre- 
 sented to him and there approved before the issuance of a war- 
 rant. The board of purchase and supplies incurs much in- 
 debtedness in supplying the different state institutions. This 
 board should be required to approve its own vouchers and then 
 be passed to the auditing board for final approval before the 
 issuance of a warrant on the state treasury for the amount of 
 the claim. 
 
 A very slight modification of the law regarding these sub- 
 jects would obviate needless confusion and encourage a 
 more harmonious administration of state affairs. It would also 
 provide for a better system of approving vouchers upon which 
 warrants are drawn against the state treasury. 
 
 UNIVERSITY OF NEBRASKA. 
 
 The state university is in a very flourishing condition. The 
 excellent work in the educational field occupied by this insti- 
 tution under the direction and efficient management of the 
 chancellor is very gratifying to all citizens of the state. The 
 high rank which it occupies among similar institutions of the 
 land testifies to the excellent work which has been performed. 
 The university educational work has been extended so as to 
 provide a practical training for a short period of time in the 
 varied branches of agriculture for those who are unable to 
 avail themselves of llie opportunity afforded to take the pre- 
 scribed course in the college of agriculture and yet wish to 
 prepare themselves for active and intelligent work in agricul- 
 tural pursuits. In a state such as ours, wiiere the agricultural 
 interests are paramount to all others, it seems to me that an
 
 cfTort to promote this feature of university education must find 
 much cordial support by the people generally. In consider- 
 ing the needs of the institution especial attention is requested 
 to this branch of the work which is now in process of develop- 
 ment. 
 
 The law provides for two funds to be used in support ol 
 this institution ; first, the endowment fund, to be invested and 
 the interest of which only can be used in its support ; and, sec- 
 ond, the regents' fund, which shall consist of the proceeds of 
 the investment of the endowment fund, the annual rental of the 
 university and agricultural college lands, the matriculation and 
 other fees paid by students and a tax of three-eighths of one 
 mill on the dollar valuation of all taxable property. From this 
 it would appear that it was the intention to have the univqrsity 
 supported from these funds rather than from an appropriation 
 from the general fund, unless for repairs and permanent im- 
 provements. The condition of the state's finances would seem 
 to emphasize the necessity for adherence to this method of de- 
 riving revenues for the current expenditures of the institution 
 as nearly as possible, without injuring its usefulness. The es- 
 timate of the expenditures call for an appropriation from the 
 general fund of $24,500 and, also, $50,000 for permanent im- 
 provements. 
 
 While I am strongly impressed with the necessity of econo- 
 mizing wherever possible in making appropriations for the ex- 
 pense of state government, I bespeak tor this highly use- 
 ful institution a liberal support sufficient to maintain its various 
 departments unimpaired. The report of the regents for the 
 biennial period just closed will be submitted to you and is 
 worthy of your careful consideration. It is an improvement on 
 all past reports in its thoroughness and the attention given 
 to details respecting the past management and the future re- 
 quirements of our university. 
 
 STATE NORMAL SCHOOL. 
 
 The State Normal School, located at Peru, appears to be 
 performing the work for which it was constructed in a very 
 satisfactory manner, and meeting the full expectations of the 
 friends of education all over the state. I am advised that the 
 attendance of those who are preparing themselves to become 
 instructors in the public schools is fully up to if not surpassing
 
 (47) 
 
 its previous history. That the educational work in all of its 
 varied branches is being successfully prosecuted, is evident. 
 
 Your favorable consideration is invited to the requests of 
 the board of trustees for appropriations needful in conducting 
 the affairs of the school for the coming biennial period. Con- 
 siderable is asked for the construction of new buildings. In 
 view of the state's finances and the ever increasing burden of 
 taxation, I am not prepared to favor any appropriations for 
 new structures at the different state institutions, except where, 
 after a thorough investigation,they seem to be absolutely required 
 in order that the institution may efficiently carry on the work 
 for which it was intended, and where the withholding of such 
 appropriations would cripple the usefulness of such institu- 
 tions. 
 
 MAXIMUM FREIGHT LAW. 
 
 It is provided by section 4, of article 11, of the constitu- 
 tion, that " railways heretofore constructed, or that may here- 
 after be constructed in this state, are hereby declared public 
 highways, and shall be free to all persons for the transportation 
 of their persons and property thereon, under such regulations 
 as may be prescribed by law, and the legislature may from 
 time to time pass such laws establishing reasonable maximum 
 rates of charges for the transportation of passengers and 
 freight on the different railroads of this state. The liability of 
 railway corporations as common carriers shall never be lim- 
 ited." 
 
 Section 7 provides: "The legislature shall pass laws to 
 correct abuses and prevent unjust discrimination and extortion 
 in all charges of express, telegraph and railroad companies in 
 this state, and enforce such laws by adequate penalties to the 
 extent, if necessary, for that purpose, of forfeiture of their prop- 
 erty and franchises." ' 
 
 Under the constitutional power thus conferred, efforts have 
 been made from time to time by the different legislatures to 
 enact laws to establish reasonable maximum rates and to pre- 
 vent discrimination and abuses to the patrons of such roads. 
 The legislature in 1893 enacted a maximum freight rate law 
 which was approved by the governor and tliereby became one 
 of tlie laws of the state. The enforcement of this law was re- 
 sisted by different railway companies and a suit instituted to
 
 prevent the board of transportation from enforcing the provis- 
 ions of the act. A trial in the United States circuit court for 
 the district of Nebraska resulted adversely to the state, the de- 
 cision being rendered November 23, 1894. The last legisla- 
 ture made suitable provisions for the prosecution of an appeal 
 to the supreme court of the United States. It was presumed 
 at that time that the case could be taken to the supreme court 
 and there disposed of in a short time and the validity of the 
 act in question be determined. An argument of the case was 
 had in the supreme court in May, 1896, and the case sub- 
 mitted for decision. Within a few weeks the case was, by the 
 court, restored to the calendar and a reargument ordered. 
 This argument has not yet been had. For some reason, to 
 me unknown, a stipulation was entered into between those repre- 
 senting the state and the attorneys for the railroads postponing 
 a hearing on a motion to advance the case for reargument un- 
 til some time during the present month, and it seems now 
 hardly reasonable to expect a final decision on this important 
 question until some time during the spring months. I am un- 
 able to lead myself to believe that the delays occasioned in the 
 final hearing of this case are at all necessary, but, on the con- 
 trary, am strongly impressed with the conviction that the case, 
 being of so much public importance, ought to have been finally 
 disposed of long ere this. It seems to me that the grave 
 questions involved are of sufficient importance to warrant an 
 order of advancement by the tribunal hearing the case, and a 
 decision at the earliest opportunity consistent with its proper 
 consideration by those who have to pass upon the legal ques- 
 tions involved. It is to be hoped that a final and speedy hear- 
 ing will be obtained at an early date, and thus enable the peo- 
 ple of the state to ascertain what, if any, further or different 
 legislation may be required in order to»carry out the intention 
 of the provisions of the constitution just quoted. Until the case 
 is finally determined, it would seem that nothing further in the 
 way of enacting a law establishing reasonable maximum freight 
 charges by the legislature can with safety be attempted. 
 
 BOARD OF TRANSPORTATION. 
 
 Under the second constitutional provision, the legislature 
 has established a Board of Transportation, giving to such 
 board power to prevent unjust discrimination, and to fix rea-
 
 (49) 
 
 sonable rates for the carrying of freights, and in general to 
 carry out the provisions of the act creating such board. Aboard 
 thus established, properly enforcing the law, can serve a good 
 purpose in preventing unjust discrimination or exorbitant rates 
 for the carr3^ing of freights by the different railroads of the 
 state. Its usefulness depends very much on its ability to en- 
 force the laws. If the board has not sufficient authority, as 
 now constituted, to fulfill the objects of its creation, the law 
 should be amended so as to give it more extended powers. 
 The necessity- for the maintenance of an office charged with 
 the duties of enforcing all provisions of the law regulating rail- 
 road traffic in the state, is quite obvious to all. 
 
 The people of the state, I am satisfied, prefer an elective 
 railroad commission rather than the commission as now cre- 
 ated. This they are unable to accomplish until our fundamen- 
 tal law shall be amended providing for these additional exec- 
 utive officers. A constitutional amendment looking to that 
 end was submitted to the electors at the last general election, 
 the adoption of which is quite doubtful. Until such a commis- 
 sion can be provided for by constitutional amendment, what- 
 ever relief that may be obtained, must be secured through a 
 board of transportation or railroad commission composed of 
 executive officers already created by the constitution. I am 
 unable to see why, if an elective commission may be em- 
 powered to give to the people any relief from unjust discrimi- 
 nation or overcharges, why the same powers may not be given 
 to a commission composed of executive officers as now exist- 
 ing under the constitution. 
 
 Many other states have commissions either created by the 
 constitution or otherwise, whose duty it is to regulate and con- 
 trol railroad, telegraph and express traffic. The work of these 
 commissions in many states seems to be very satisfactory. A 
 study of the reports of these different commissions is quite in- 
 teresting and secures to one much valuable information re- 
 specting so important a sul)jcct. 
 
 I am of the opinion that our Board of Transportation laws 
 may be amended in many respects so as to give greater powers 
 and more latitude in the operation of tlio board in the enforce- 
 ment of the law, thereby assuring a better administration of this 
 important feature of state government. It would also seem ad-
 
 (50) 
 
 visable to give to a Board of Transportation not only the right 
 to control railroad trafllc, but also that of telegraph and express 
 companies doing business between points within the state. 
 
 This entire matter is submitted to you with the hope that, 
 if any changes in our present law are found to be advisable, 
 the subject may be legislated upon by you so as to bring about 
 equitable dealings between these several corporations and their 
 patrons. While protecting the rights of the individual, every 
 consideration which wisdom and justice requires should be 
 given to the corporations whose business is thus sought to be 
 regulated. 
 
 NEBRASKA NATIONAL GUARD. 
 
 The report of the Adjutant General shows that during the 
 past two years, the National Guard of this State has made 
 great improvement in its knowledge of military duty, and that 
 the equipment is sufficient, with the exception of a few articles, 
 to enable it to take the field for active service in or out of the 
 state. There is yet much to be done to bring the Guard up to 
 the accepted standard of efficiency, and that can be accom- 
 plished only by careful, theoretical instruction of the commis- 
 sioned officers in military science, and practical instruction of 
 the whole Guard in annual encampments. The National 
 Guardsmen are volunteers ready for duty whenever emergency 
 demands their services. By personal application, and in a 
 great measure at their own expense, they are learning the 
 routine of the drill, the requirements of military discipline and 
 acquiring the minutia of duty. 
 
 The proper maintenance of the National Guard of the 
 State requires that reasonable appropriations should be made 
 to bring the services to a high state of efficiency. While the 
 law expressly provides for annual encampments for instruction, 
 the appropriations have heretofore been insufficient and only 
 one encampment had been held during each biennial period 
 prior to my administration. After the encampment at Hastings 
 in 1895, it was found that a great saving had been made by 
 economical management, and the officers of the Guard in con- 
 sultation were unanimously of the opinion that the good of the 
 service and the requirements of the law demanded the annual 
 encampment held at Lincoln in 1896. While the available 
 appropriation was insufficient, the guardsmen were willing to
 
 (50 
 
 accept half pay and look to this session of the legislature for the 
 balance. The two encampments were held at an average cost 
 of $14,219.87, a saving of $4,342.27 on each encampment, as 
 compared with the encampment of 1894. 
 
 The indebtedness of the Guard as a result of the last en- 
 campment is $5,441.94 more than there remains of the funds 
 on hand. Several hundred dollars will be required to bear ex- 
 penses until the end of the biennial period, increasing the defi- 
 ciency to about $6,000.00. A slightly increased appropriation 
 over that usually made will enable the Guard to comply with 
 the requirements of the law in the matter of holding annual 
 encampments and keep the service in a high state of efficiency. 
 This would seem to me to be advisable. The excellent condi- 
 tion of the state's militia is due in a great measure to the effi- 
 cient management of the Adjutant General, Brig. Gen. Patrick 
 H. Barry. The Guard is also indebted to Major Edmond G. 
 Fechet, of the Sixth Cavalry, U. S. A., for valued service in 
 instruction. 
 
 Your attention is invited to the need of a thorough revis- 
 ion of the militia law. It has been found that the present law, 
 in many instances, does not meet the requirements, and also 
 that several of the sections are exceedingly ambiguous. Your 
 attention is especially invited to section 22, which is clearly in 
 direct violation of the laws of the United States. 
 
 There are now deposited in the ofBce of the Adjutant Gen- 
 eral the Battle Flags of the First Nebraska Infantry, and the 
 flags and guidons of the First Nebraska Cavalry, together with 
 other very valuable relics of the late civil war. I would rec- 
 ommend that those flags be placed in hermetically sealed cases, 
 to preserve them from atmospheric destruction. As these are 
 symbols of the heroism of the Nebraska Volunteer Soldiers, 
 they should be guarded sacredly by the state. 
 
 LABOR BUREAU. 
 
 The bureau of labor and industrial statistics has been 
 greatly handicapped by the meager appropriations made by 
 the last legislature. This bureau should be maintained and 
 suitable appropriations made in order to carry on the work in- 
 tended by its creation. The gathering of statistics and infor- 
 mation of the condition of liie varied forms of labor and of the 
 value of its products is an important matter and of great bene-
 
 (52) 
 
 fit to the people. The extension of the Avork of this bureau 
 might properly be made so that it would become a means of 
 communication between employers and those desiring employ- 
 ment, giving it the features of an employment bureau in addi- 
 tion to those it now possesses, with suitable provisions and re- 
 strictions for the prevention of unnecessary burdens by those 
 who avail themselves of the opportunities thus aObrded. 
 
 It is hardly to be expected that the workot the bureau can 
 be brought to a higher state of usefulness unless provisions 
 are made for traveling expenses in visiting many portions of 
 the state for the purpose of securing needful information and 
 data. This phase of the work cannot be carried on satisfacto- 
 rily by means of communication through the mails. 
 
 The time, also, seems to be ripe for the making of some 
 suitable provisions for the gathering and dissemination of in- 
 formation looking to the securing of desirable immigration to 
 assist in further developing the many and varied resources of 
 the state. If it meets the views ol the legislature to take action 
 for the encouragement ot immigration to the state, I would 
 suggest the advisability of utilizing the labor bureau. An appro- 
 priation of a few thousand dollars a year, if wisely and judic- 
 iously expended would probably accomplish much in directing 
 immigration to the state. 
 
 A short time ago, an organization was perfected by a 
 large number ot active and energetic citizens of the state under 
 the name of the Nebraska Club, the object of which is to en- 
 courage immigration. In the event of an appropriation for 
 immigration purposes is deemed advisable, and you should de- 
 termine it would better be expended by some other means 
 than that heretofore suggested,! doubt not that this organization 
 could very safely be entrusted with such expenditures, and 
 that the same would be made to the very best advantage, accom- 
 plishing as much as could be expected through any othersource. 
 The organization is already perfected and in active operation 
 and is composed of men of high character who are devoted 
 to the up-building of the state and are well worthy of such en- 
 couragement as would be given them by an appropriation of 
 this character. 
 
 DEPARTMENT OF BANKING. 
 
 A banking board, composed of the State Treasurer,
 
 (53) 
 
 • 
 
 Auditor, and Attorney General, has been created by law for 
 the purpose of examining into and reporting at frequent inter- 
 vals upon the financial condition of the several banking insti- 
 tutions ot the state, excepting those organized under the national 
 banking law. The wisdom of this law and its usefulness to 
 the people of the state is quite apparent. Under the present 
 law when for any reason a bank suspends and it becomes nec- 
 essary to appoint a receiver to close up its affairs, the receiver 
 is appointed by the district court to whom he makes reports 
 from time to time concerning matters in relation to his receiv- 
 ership. 
 
 I am of the opinion, and I understand this view is shared 
 in by all members of the banking board, that the law should 
 be amended so that this board should have the control of the 
 suspended institution until the creditors are fully provided for, 
 and that the appointment of a receiver and the disposition of 
 the assets should be under the control of the board, rather than 
 the court. As the law now stands the board ceases to have 
 any connection with the bank when its doors are closed and 
 the matter is left entirely with the district court. I can see no 
 reason why the interest of creditors of a suspended bank may 
 not be better cared for by the banking board who have more 
 or less knowledge regarding the institution prior to its failure 
 and who would be in a position to close up its affairs more ex- 
 peditiously and with less expense than the district court. All 
 litigation growing out of such suspended institution should 
 come within the jurisdiction of the district court, where it 
 properly belongs. It also appears that the provisions of the 
 banking law are not broad enough to include loan and trust 
 companies organized within the state, which it seems to me it 
 would be proper to have under the control and supervision of 
 this department. The strengthening of the law for the purpose 
 of giving better protection to the depositories and creditors of 
 the bank wliercver possible should be made. 
 
 STATK FISH COMMISSION. 
 
 An honest effort on the part of the Fish Commission to per- 
 form the greatest possible service to the state with a small out- 
 lay for expenses has evidently been successful. The various 
 streams of the state and many public and private lakes and 
 ponds have been well stocked with the best varieties of fisii.
 
 • 
 
 Needed repairs and iinprovemenls, involving small expense, 
 have been made at the state hatcheries under the direction of 
 the superintendent. The report of the superintendent of the 
 state hatcheries, at South Bend, is replete with interesting facts 
 and valuable information. The state has about $17,000 invest- 
 ed in property at the hatcheries. The plant is well equipped 
 and in readiness to continue the work successfully. 
 
 I am of the opinion that the results attained by the com- 
 mission justify a continuation of legislative support to the ex- 
 tent of a reasonable appropriation for the needful expenditures 
 in carrying on the work for the next biennium. 
 
 LIVE STOCK INSPECTION LAW. 
 
 The live stock industry of the state of Nebraska is and 
 will be, so long as present conditions exist, one of the principal 
 branches of agricultural industry. Recognizing this fact, the 
 legislature at diflerent times has enacted laws to prevent the 
 spread of contagious or infectious diseases and providing for 
 the appointment of a live stock sanitary commission including 
 a state veterinary surgeon. This law, it seems, was 
 found to be cumbersome and expensive and tor a number of 
 years the legislature has failed to make any appropriation for 
 the purpose of enforcing its provisions, thus rendering it obso- 
 lete. During the past two years many communications were 
 received by this department from people all over the state 
 making inquiries respecting the state veterinary surgeon and 
 desiring his services for the purpose of examination into the 
 condition of live stock supposed to have contagious or infectious 
 diseases. To the many requests for the services of a state vet- 
 erinary surgeon, no satisfactory response could be given be^ 
 cause of the want of an appropriation to defray the salary and 
 expenses of such officer. 
 
 During the month of August last, notwithstanding the an- 
 nual quarantine proclamation prohibiting the shipment of cat- 
 tle from certain territories where the southern or splenic fever 
 exists, a shipment of southern cattle affected witTi this dread 
 disease was unloaded at Germantown, Seward county, Ne- 
 braska, and placed in a pasture in that vicinity. It was LOon 
 discovered that the cattle were infected with this disease, but 
 not until a number of native cattle had become infected and 
 died. Considerable loss of native cattle occurred and there
 
 (55) 
 
 was much alarm among citizens of the vicinity generally who 
 feared a much greater loss to the cattle industry in that portion 
 of the state. I deemed this emergency to be of sufficient im- 
 portance to avail myself of the previsions of the law to check 
 the threatened spread of this disease. A state veterinarian 
 was appointed, as well as two live stock inspectors, who at once 
 took charge of all cattle within the territory affected and estab- 
 lished rigid quarantine lines, taking prompt measures to stamp 
 out the disease. Their efforts were successful and, since the 
 approach of winter, the danger is passed. The necessity for 
 this action required the expenditure of a small sum of mone}', 
 and the incurring of some further obligations, in order that the 
 work might be made effective. An account of necessary ex- 
 penses will be presented to your body in a report from the 
 state veterinarian thus appointed, and I recommend an appro- 
 priation for its payment. 
 
 Another shipment of cattle similarly affected was unload- 
 ed later in the season in the northwestern part of the state. In 
 order to prevent any spread of the disease, the sheiiff of Sioux 
 County, in which the cattle were unloaded, was instructed to 
 keep them confined in one place and prevent them coming in 
 contact with any other stock in that portion of the country un- 
 til an examination might be made by the state veterinarian, 
 and the spread of the disease prevented. Some additional ex- 
 pense was incurred in connection with this matter. 
 
 These two instances emphasize the necessity of making 
 provisions for the better protection of the live stock interests 
 of the state. The law, as it stands, may be amended so as to 
 render its enforcement of comparative small expense to the 
 people of the state, and yet be made very effective for the pur- 
 pose of preventing the spread of contagious or infectious dis- 
 eases and the consequent loss of valuable live stock. If the 
 law could be so amended as to empower a state veterinarian 
 to establish and enforce rigid quarantine regulations wher- 
 ever required without the necessity of the interposition of live 
 stock inspectors, I believe that much good could be accom- 
 plished with but little expense. 
 
 A bill amending the present law has been prepared by 
 those interested in veterinary surgery in the state, the provis- 
 ioTS of which, largely overcome the objections existing in the
 
 (56) 
 
 present law and at the same time make ample provisions for 
 the protection of this important interest. I trust that you will 
 be able to reach a satisfactory conclusion that will make it 
 possible for the proper authorities, upon all necessary occas- 
 ions, to promptly prevent the spread and, as far as possible, 
 eradicate these evils aflcctins: the live stock interests of the 
 state. 
 
 FIRE AND POLICE BOARD. 
 
 Experience and thoughtful consideration on the part of 
 law-making bodies seem to have demonstrated the wisdom of 
 removing as far as possible from political influences matters 
 pertaining to the police and fire departments and the regula- 
 tion and sale of intoxicating liquors in the larger cities of the 
 union. This can best be done by placing in the hands of the 
 chief executive, or other state officers, the appointment of the 
 members who shall constitute such boards. This policy has 
 been adopted in our own state, and, prior to the last session of 
 the legislature, the law in this respect provided that the mem- 
 bers of the Board of Fire and Police Commissioners should be 
 appointed by the governor, restricting the appointment ot not 
 exceeding two of any one political party, providing for a mem- 
 bership of four to be thus appointed with the mayor of the city 
 a member ex-officio of such commission. The last legislature, 
 under the pretense of correcting abuses alleged to have existed 
 under the management of the Fire and Police Board of the city 
 of Omaha, changed the law then in existence by reducing the 
 membership of such commission to three, not including the 
 mayor, and providing for the appointment of such commission 
 by the governor, the attorney-general and commissioner of 
 public lands and buildings. I regarded this measure as purely 
 partisan, enacted for the purpose of taking the appointing 
 power from the hands of the governor and giving the controll- 
 ing vote to two members belonging to the party which dom- 
 inated in the legislature. It also appeared to me that it was 
 unwise to exclude from the Fire and Police Board the chief 
 executive officer of the city, and for these and other consider- 
 ations, I withheld executive approval from the bill thus en- 
 acted. 
 
 The administration of the affairs under the provisions of 
 the present law, and knowledge gained since that time respect-
 
 (57) 
 
 ing the operations of such a board, have confirmed me in the 
 views I then held. I am firmly of the opinion that the law in 
 existence at the time of the change was far preferable to the 
 present one, and that this legislature would improve the fire 
 and police administration of Omaha by a re-enactment of the 
 law existing prior to the last session of the legislature. 
 
 BEET SUGAR BOUNTY. 
 
 Nebraska is essentially an agricultural state. Her growth, 
 prosperity and and the increase of wealth of her citizens de- 
 pend very largely on the success we may be able to achieve 
 in the many different branches of agricultural enterprise. 
 
 For a number of years our people have given much con- 
 sideration to the growing of beets from which to manufacture 
 sugar. Two great factories have been established within her 
 borders for the manufacture of sugar from the sugar beet. At 
 no time since the establishment of either of these factories, un- 
 less perhaps in 1894, ^^ account of the drought that season, 
 has there been any dearth in the production of sugar beets 
 ample to test the full capacity of each of these factories during 
 the season of operation. In fact, those operating these fac- 
 tories have been compelled each season to refuse to contract 
 for a large acreage of sugar beets which the farmers desired to 
 produce, because of lack of capacity for caring for them. 
 
 Experience thus far has demonstrated that we possess in 
 this state the soil, climate and all things else required to grow 
 this very useful plant as advantageously as in any other portion 
 of the country. That we should make the most profitable use 
 of these favorable conditions, I think we arc all in entire ac- 
 cord. The experimental work engaged in by a department in 
 the state university in determining the most approved method 
 of sugar beet culture, and in the dissemination of the knowl- 
 edge thus obtained, as well as the analysis of sample beets 
 sent to the university for that purpose, have greatly assisted 
 the practical sugar beet grower. The helpful interest mani- 
 fested by the university authorities in this subject is greatly 
 appreciated by all friends of sugar beet culture. The growing 
 of sugar beels and the manufacture of sugar therefrom in this 
 state may be said to have fairly passed the stage of experiment 
 and is established on firm fooling. The acreage which could 
 profitably be cultivated in this one crop alone is almost uu-
 
 (5«) 
 
 liniiknl iti extent. The establishment of manufacturics, tlicre- 
 by perniittint^ ihe cultivation of much lar<jer acreage, is greatly 
 desired and any encouragement whicli could properly be given 
 would meet with general approval. 
 
 The preceding session of the legislature passed an act for 
 the avowed purpose of encouraging the growth of sugar beets 
 and the manufacture of sugar therefrom by giving a bounty of 
 five-eighths of one cent for each pound of sugar manufactured 
 within the state by factories already established, and one cent 
 for each pound of sugar manufactured by factories to be es- 
 tablished, providing in each instance that five dollars per ton 
 should be paid for the beets purchased by such factories. The 
 same act also provided for a bounty for the manufacture of 
 chicory from chicory beets. 
 
 Under a conviction of official duty, believing an act of 
 this character unsound in public policy and a wrongful use of 
 the power of taxation, I withheld executive approval from the 
 act referred to, but it was passed and became a law notwith- 
 standing. Under the provisions of this act, claims were pre- 
 sented against the state properly certified by the secretary of 
 state for sugar and chicory manufactured during the season of 
 1895 amounting to the sum of $47,690.31 and warrants upon 
 the state treasury were drawn therefor, notwithstanding no 
 appropriation was made by the legislature for the payment of 
 such claims. For the season of 1896 it is estimated in the re- 
 port of the Secretary of State that 10,861,700 pounds of sugar 
 will be manufactured, which would make claims for sugar 
 bounty amounting to $67,885.62. Upon the declination of the 
 State Auditor to issue further warrants, suit was instituted 
 which resulted in an opinion from the Supreme Court adverse 
 to the position taken by the bounty claimants. 
 
 The result of the operation of this bounty act has only 
 served to confirm me in the views which I then entertained. 
 A claim against the state aggregating more than $115,000 has 
 thus been permitted. Its liquidation means a very heavy bur- 
 den on the already overtaxed citizens of the state. There has 
 not as yet been an additional acre cultivated in beets or a new 
 manufactory, with their corresponding benefits, secured to the 
 state. To the claim of some that such bounty is for the benefit 
 of the sugar beet grower, rather than the manufacturer, it is
 
 (59) 
 
 proper to remark that justice to all interests of the state would 
 hardly require that an industry, which is admittedly remunera- 
 tive and which thousands are anxious to engage in as soon as 
 factories are established toconsume whattheymay produce,shall 
 be made more remunerative at the expense of the vast major- 
 ity of those engaged in other branches of agriculture who re- 
 ceive too meager remuneration as a reward for their toil. What 
 is more to be desired than a bounty, which its warmest advo- 
 cates admit is only a temporary expedient, is a fixed and well 
 defined policy of encouragement by natural means and mutual 
 co-operation between grower and manufacturer, relying upon 
 the permanent conditions which surround us for the full devel- 
 opment of this industry. 
 
 That part of the bounty act holding out inducements for 
 the establishment of new factories, which seems to have been 
 unavailing, is more equitable and has more foundation in jus- 
 tice and reason than that which helps support an industry al- 
 ready established at the expense of others less favored. 
 
 BOUNDARY COMMISSION. 
 
 By joint resolution of the legislature of the State of South 
 Dakota and the legislature of this state, the governor of each 
 slate was empowered to appoint three commissioners who, act- 
 ing together, were to ascertain and report to the governor of 
 each of said states prior to the next session of the legislature a 
 true and correct boundary line between the states of Nebraska 
 and South Dakota, together with draft of a compact or agree- 
 ment to be entered into between the states in settlement of the 
 boundary line. It appears that for a long time, because of the 
 changing of the channel of the Missouri River forming the 
 boundary line, there has been much doubt and uncertainty re- 
 specting the dividing line between the two states. It has led 
 to much confusion and difficulty among those residing in the 
 vicinity of the disputed territory and rendered uncertain the 
 jurisdiction of the courts of the respective states, resulting in 
 the escape from punishment of many violators of the law. 
 
 In accordance with the authority thus given, the governor 
 of South Dakota commissioned Messrs Andrew E. Lee, E. C. 
 Ericson, and E. H. Van Antwerj) to act on the part of South 
 Dakota ; and for this state I appointed Messrs C. J. Smyth, Ed. 
 A. Fry and J. W. Edgcrton. The commissioners thus appointed
 
 {6o) 
 
 met, organized and discharged the duty imposed upon them 
 by such appointment. Their report is submitted herewith. 
 This report is accompanied by a draft of a compact to be en- 
 tered into by the two executives of the states interested when 
 authority has been given for that purpose by the respective leg- 
 islatures, all subject to the approval or ratification of the 
 United States Congress. 
 
 The line intended to mark the boundary between the two 
 states was unanimously agreed upon. It would appear that 
 the permanent establishment of the line so agreed upon cannot 
 be fully accomplished without congressional action. If the re- 
 port of the joint commission meets your approval and you rat- 
 ify it by proper legislation, it would seem that a memorial to 
 congress praying for its ratification would be proper. 
 
 FEES OF COURT CLERKS. 
 
 The clerks of the Supreme and District Court are under 
 the present law paid for their services by the fees of their offi- 
 ces for services performed irrespective of the amount of such 
 fees. This seems to be an unsatisfactory provision of law and 
 has given more or less complaint from those having work to be 
 performed in such offices, as well as creating a sense of injus- 
 tice in making no provisions respecting the limit or amount of 
 salary which may be received by such officers. Almost every 
 other office known to law has fixed and certain limits as to the 
 salaries allowed and it would seem that these same general pro- 
 visions should extend to the offices named. All fees received 
 ought to be accounted for and, after the retention by the officer 
 of a certain sum which shall be determined as a reasonable 
 compensation and fair salary for the duties performed, all over 
 and above such amount should be turned into the state 
 treasury. 
 
 CONSTITUTIONAL AMENDMENTS. 
 
 The last session of the legislature, by joint resolution sub- 
 mitted twelve constitutional amendments to the voters of the state 
 for their ratification. One of the amendments so submitted pro- 
 vided for an increase in the number ol the Supreme Court judges 
 from three to five. The legislature provided for the election 
 of two additional judges contingent on the adoption of this 
 constitutional amendment. Candidates were nominated by 
 the different parties and William Neville and John S. Kirk-
 
 (6i) 
 
 patrick were elected, contingent on the adoption of this amend- 
 ment. The section ot the constitution in relation to amend- 
 ments provides that they shall be submitted at a general elec- 
 tion at which senators and representatives are elected, and it a 
 majority of the electors voting at such election adopt such 
 amendments, the same shall become a part of the constitution. 
 The legislature also provided that the vote on the constitutional 
 amendments so proposed should be canvassed by the state 
 canvassing board, but gave to such board no direct authority 
 to declare the result of such election or to determine whether 
 such amendments were adopted. 
 
 The canvassing board canvassed the vote, and found the 
 number of votes cast for and against each of the proposed con- 
 stitutional amendments, and also the total number of electors 
 voting at said election upon all propositions and made the 
 qualified finding that if it took a majority of all the voters vo- 
 ting at such election for any purpose, that said amendments 
 were lost, a majority of the canvassing board being of the 
 opinion that this was the proper basis upon which to determine 
 the adoption of such amendments. 
 
 This doctrine does not appear to be supported by the 
 better weight of authorities in well considered cases, and 
 has been distinctly repudiated by our own Supreme Court 
 which, in a case reported in the 17th Nebraska, construing 
 this section of the constitution held that the " votes necessary 
 to adopt an amendment must be a majority of all those cast in 
 the state at that election for senators and representatives." This 
 opinion was expressed by two of the judges only, one dissent- 
 ing, holding that the section of the constitution under consider- 
 ation should be construed to require only a majority of the 
 votes at sucii election cast upon the proposition for the adop- 
 tion or rejection of the amendments submitted for that pur- 
 pose. In a more recent case, reported in the 47th Nebraska, 
 page 417, in considering a similar question the court again re- 
 pudiated the doctrine th;it the total number of electors voting 
 at the election was the proper basis upon which to determine 
 the result on any particular proposition, and quotes approv- 
 ingly the languageof another court in defining the word " vote" 
 to mean an expression of the choice of the voter for or against 
 any measure, any law, or the election of any person to ofhce.
 
 (62) 
 
 The canvassing board was unable to ascertain the number 
 of votes cast for the election of senators and representatives, 
 and the result of the election as to the adoption of these con- 
 stitutional amendments, it would seem, can not be correctly- 
 determined without a recanvass of the votes cast upon this 
 proposition, and an ascertainment of the total votes cast for 
 senators and representatives, to comply with the construction 
 given to this section of the constitution by the Supreme Court. 
 attorney-general's report. 
 
 I request your attention to the report of the Attorney- 
 General wherein he suggests the advisability of amending some 
 of the laws of the state which have come under his personal 
 observation in the conduct of his office. An act was passed in 
 1893 providing that all railroads touching the same point in 
 this state should build and maintain transfer switches for com- 
 mon use in transferring freight in car load lots from one such 
 railroad to another. The Attorney-General reports that at the 
 time of entering upon the duties of his office two cases were 
 pending in the district courts for the purpose of compelling the 
 railroads to put in transfer switches as contemplated by this 
 section of the statutes ; upon the trial of these cases, the law 
 was held to be unconstitutional and in each case upon different 
 grounds ; that upon appeal to the Supreme Court the law was 
 held void, but upon still different grounds. 
 
 " This matter," says the Attorney-General, " ought to be 
 a subject of legislative enactment, but great care should be ob- 
 served in the preparation of such a measure so that there could 
 exist no constitutional objection to the same." 
 
 In this report the Attorney-General recommends an amend- 
 ment to cover imperfections pointed out in section 12, of chap- 
 ter IV, of the criminal code, entitled " Violence to Persons Not 
 Resulting in Death." He suggests amendments to section 93 
 in relation to injuries to railroad and telegraph property, and 
 also section 244 of the criminal code making the robbing of 
 a grave of a dead body a felony instead of a misdemeanor as 
 at present. 
 
 It occurs to me that these recommendations are worthy 
 of your consideration, and that the statutory provisions re- 
 ferred to would be improved by the amendments suggested.
 
 (63) 
 
 TENNESSEE CENTENNIAL EXPOSITION. 
 
 The centennial anniversary ot the admission of the state 
 of Tennessee into the union will be celebrated by an interna- 
 tional exposition at Nashville from May to November, 1897. 
 Realizing the importance of having Nebraska and Nebraska 
 products represented at this exposition, at the request of the 
 management, I appointed the following commission to care for 
 the interests of our state. INIes^^rs. J. J. Butler, Lincoln ; Joseph 
 Oberfelder, Sidney ; H. D. Crawford, York ; Ernst Benning- 
 hoven, Omaha, and Nick Fritz, Pender. This commission has 
 taken the necessary preliminary steps for the representation of 
 Nebraska and an exhibit of her products. This can not be 
 successfully accomplished without assistance from you by a 
 reasonable appropriation with which to defray the necessary 
 expenses. 
 
 TRANS-MISSISSIPPI EXPOSITION. 
 
 During the summer and autumn of 1898, Nebraska will 
 be visited by thousands and hundreds of thousands of citizens 
 of other states. The Trans-lNIississippi Exposition will be held 
 from June until November at Omaha and will undoubtedly at- 
 tract people in great numbers from every section of the 
 country. Various national organizations are arranging to hold 
 their annual sessions at the Nebraska metropolis in 189S so as 
 to avail themselves ot an opportunity of visiting the exposition 
 while attending their meetings. I feel safe in predicting 
 that the Trans-Mississippi Exposition at Omaha will he the 
 greatest exposition of the products of the great west ever held. 
 
 This project had its origin more than a year ago at the 
 Omaha session of the Trans-Mississippi Congress. Prominent 
 men of that city promptly formed an association with a capital 
 stock of $1,000,000, of which more than $400,000 has been 
 subscribed. The first assessment upon this stock has been paid 
 and the aflairs of the association are in good financial condi- 
 tion. The organizers and promoters are men of business 
 ability, integrity and good financial standing ; the organiza- 
 tion is strong and the capital adequate. Congress has recog- 
 nized the importance of the exposition by an appropriation of 
 $200,000 which it is expected will be increased soon to half a 
 million. The legislature of our sister state of Iowa has made a 
 preliminary appropriation of $10,000, and the Iowa friends of
 
 (64) 
 
 the enterprise predict an additional appropriation of $65,000 
 at the next session. The legishitures of Utah and Louisiana 
 have passed resolutions plcdgin<( the support of their states to 
 the exposition, and liberal appropriations are expected from 
 all the states and territories in the trans-Mississippi country. 
 
 This exposition will unquestionably accomplish great 
 good in bringing together the varied interests of the west and 
 serve to cement the already friendly relations existing between 
 the western people. It will do for the west what the Atlanta 
 exposition has done for the south, but in a larger degree. 
 Naturally Nebraska will profit largely by having this great 
 exposition held on her soil. Interested visitors will learn of 
 the great opportunities our state offers for investment and im- 
 migration. 
 
 You will be called upon by the management of the Trans- 
 INIississippi Association to make an appropriation to aid the en- 
 terprise and I trust that the financial assistance given by you 
 will be liberal and sufficient, so that our sister states and terri- 
 torities west of the Mississippi may be thereby encouraged to 
 lend their substantial aid. 
 
 CONCLUSION. 
 
 I extend to you in conclusion my hearty co-operation and 
 earnest support in every effort you may make to advance the 
 interests of Nebraska and the welfare of our fellow citizens. 
 I hope your stay in the capital city may be pleasant and that, 
 having diligently attended to the affairs which call you here, 
 you may return to your homes with the satisfaction of having 
 faithfully performed your duty as representatives of a free 
 people. 
 
 SILAS A. HOLCOMB, 
 Executive Chamber, Governor. 
 
 Lincoln, Neb. 
 
 January 7, 1897.
 
 (65) 
 
 {Appendix "J..''] 
 
 Money Eeceived and Paid Into the State Treasury From January 3, 1895, 
 
 to January 7, 1897. 
 
 Drafts from the federal government paid for Sol- 
 diers' and Sailors' Homes, $32,338,66 
 
 Five per cent, of net proceeds ot sales of public 
 
 lands in Nebraska 4,486.91 
 
 Office fees, 1 26.00 
 
 Money received from various individuals, associa- 
 tions and corporations from all parts of the 
 United States and turned over to the Nebraska 
 State Relief Commission, and receipted for by 
 
 them, 4,210.04 
 
 Expenditures incurred in the trial of the 
 State of Nebraska vs. Ex-State Treas- 
 urer J. E. Hill, et al., paid attorney's 
 
 lees under contract,. $2,500.00 
 
 Paid jurors, witnesses, sheriffs' fees, briefs, 
 
 stenographers' work, and incidentals,. 1,416.55 
 
 Paid Supreme Court costs, 295.90 
 
 Discount on state warrants, 29.59 
 
 Covered back into state treasury, 4,000.00 
 
 Balance paid into state treasury, 467.15 $8,709.19 
 
 Received balance of appropriation of 1893, $8, 709. 19 
 
 Total $49,870.80 
 
 [Appendix "7i."] 
 PARDONS AND COMMUTATIONS. 
 
 Convicts Diseliarpod From llie Poiiiloiillary hj Pardons Granted by Ooyemor 
 Silos A. Ilolcoinb, From .January 3, 189.>, to Jannary 7, 1897. 
 
 Joe Davi.s, June . 26, 1895, Douglas County, burglary, 
 $100.00 fine and cost of pro.seculion. Committed to the peni- 
 tentiary wrongfully under the name of Charles Davis, a brother 
 who was sentenced to a term of three years in the penitentiary.
 
 (66) 
 
 No legal sentence existed against this person. Recommended 
 by the warden. 
 
 James Hakkkr, February 24, 1896, Wayne County, burgla- 
 ry, three years in jionilentiar}'. Full and unconditional pardon. 
 Term expired. Defendant had led an exemplary life while 
 on parole, manifesting a disposition to become a useful citizen 
 and desired a pardon. Granted near expiration of sentence. 
 Recommended by reputable citizens who had taken a warm 
 interest in this man. 
 
 W. K. Tate, September 4, 1896, Gage County, forgery, 
 two years. Seriously ill. Died day following. Recommend- 
 ed by warden and prison physician. 
 
 ConT>cts Discharged From the Penitentiary on Commutations by Governor 
 Silas A. Hotcomb, From January 3, 1895, to January 7, 1897. 
 
 Walter Clark, January 22, 1895, Lancaster County, 
 grand larceny, sixteen months to eleven months and twenty- 
 one days. Recommended by the prison physician, trial judge, 
 prosecuting attorney and sheriff. 
 
 Joseph Dawson, February 27, 1895, Hitchcock County, 
 burglary, one year to five months and eleven days, was a 
 young boy, first oflTense. Recommended by the trial judge, 
 prosecuting attorney, all county officers and many citizens. 
 
 Richard Ludwig, March 27, 1895, grand larceny, four 
 j^ears and six months to three months and twenty-four days. 
 Violently and permanently insane. Taken to Norfolk Asylum. 
 Recommended by {he warden and prison physician. 
 
 Charles Carleton, April 13, 1895, murder, sentenced 
 to hang ; to imprisonment for life. Recommended by mem- 
 bers of the Supreme Court, court commissioners, prosecuting 
 attorney, members ot the bar and petition of more than four 
 thousand five hundred citizens, 
 
 Anton Berneker, April 16, 1895, Douglas County, re- 
 ceiving stolen property, three years to one year, two months 
 and nineteen days. Recommended by trial judge, members 
 of jury and nearly one thousand citizens. 
 
 Geo. W. Fair, May 6, 1895, Gosper County, burglary, 
 one year to six months. Mitigating circumstances ; broke in- 
 to building and took small amount of coal to prevent suflering 
 in family. Recommended by prosecuting attorney, county 
 officials and citizens. 
 
 Joseph Kricknavy, May 6, 1895, Saunders County, as- 
 sault, two years to one year, six months and que day. Rec-
 
 (67) 
 
 ommended by the prosecuting attorney, county officials and 
 largely signed petition of citizens. 
 
 Otis Boyer, June 15, 1895, Ke3'a Paha County, burglary, 
 one year to eifrht months and sixteen davs. Account of youth 
 and mitigating circumstances. Recommended by trial judge, 
 prosecuting attorney, county officers and others. 
 
 Alex Osansowsky, May 22, 1895, Valley County, obtain- 
 ing money under false pretenses, one year to seven months and 
 one day. Mitigating circumstances and previous good char- 
 acter. Recommended by the trial judge, county officials and 
 others. 
 
 Charles Dodson, June 13, 1895, Richardson County, as- 
 sault with intent to kill, four years to three years ten months 
 and seven days. Tuberculoses of the lungs, failing fast. Rec- 
 ommended by the warden and prison phj'sician. 
 
 Lewis Carroll, June 19, 1S95, Adams County, grand 
 larceny, two years to one year, two months and fifteen days. 
 Recommended by trial judge, members Supreme Court com- 
 mission, county officers and others. 
 
 Henry M. Davidson, June 21, 1895, Pierce County, re- 
 ceiving stolen property, eighteen months to lour months and 
 six days. Consumption and hemorrhages of the lungs. Rec- 
 ommended by the warden, prison physician, trial judge, pros- 
 secuting attorney, county officials and large number of citizens. 
 
 William F. Moore, July 2, 1895, Douglas County, grand 
 larceny, three years to ten months and four days. Recom- 
 mended by the trial judge, prosecuting attorney, county offi- 
 cials and citizens. 
 
 Frederick Johnson. September 10, 1895, Valley County, 
 grand larceny, thirteen months to twelve months. Recom- 
 mended by trial judge, prosecuting attorney and citizens. 
 
 Albert Stanley, September 17, 1895, KeyaPaha Coun- 
 ty, burglary, two years to one year and six days. Recommended 
 by many citizens, warden and prison physician. 
 
 John Kennedy, November 7, 1895, Gage County, crime 
 against nature, six years to one year, three months and twenty- 
 one days. Doubt as to guilt. Previous good character. Rec- 
 ommended by county officials, citizens and city officials of St. 
 Joseph, Mo., his former home. 
 
 Otis Graddy, October 15, 1895, Key a Paha County, 
 burglary, two years to one year, two months and twelve days. 
 Recommended by the trial judge, prosecuting attorney and 
 many citizens. 
 
 William Gkaddv, October 15, 1895, Keya Paha County, 
 burglary, eighteen months to one year, two months and twelve
 
 {OS) 
 
 days. Recommended by trial judge, prosecuting attorney and 
 many citizens. 
 
 C. C. Calloway, October 24, 1895, Douglas County, ar- 
 son, live years to three years and six months. Doubt as to 
 guilt. Recommended by trial judge, prosecuting attorney and 
 others. 
 
 M. McMaiion, December 2, 1895, Merrick County, bur- 
 glary, one year to two months and fifteen days. Mitigating 
 circumstances. Recommended by the trial judge, prosecuting 
 attorney and members of the jury, county oflicials, members of 
 the bar and large number of citizens. 
 
 W. H. Perrin, December 23, 1895, Dawes County, in- 
 cendiarism, fifteen years to seven years, two months and six 
 days. Recommended by trial judge, prosecuting attorney and 
 others. 
 
 G. H. Wilson, December 23, 1895, Burt County, remov- 
 ing mortgaged property, five years to two years and twenty- 
 five days. Recommended by trial judge, prosecuting attor- 
 ney, jury, county officers and citizens. 
 
 Charles Davis, January 7, 1896, Douglas County, bur- 
 glary, three years to two years, one month and ten days. 
 Recommended by the warden ; also because of wrongful im- 
 prisonment of his brother, Joe Davis, lor the same offense. 
 
 Hamilton Thompson, February 17, 1896, Otoe County, 
 grand larceny, one year to three months and eight days. Cir- 
 cumstantial evidence. Recommended by trial judge, jurymen, 
 county officials and others. 
 
 James B.Walker, March 2, 1896, Dawes County, murder 
 first degree, from hanging to imprisonment for life. Recom- 
 mended by many citizens ; doubt as to condition of defendant's 
 mind at the time of the homicide and since ; several physicians 
 examined him and all recommended commutation to life im- 
 prisonment. Defendant was sentenced by me while district 
 judge. Homicide occurred just prior to the time law took ef- 
 fect permitting jury to bring in verdict of death or imprison- 
 ment for life. 
 
 Joe Doe, right name M. B. Spradley, February 17, 1896, 
 Douglas County, grand larceny, five years to two years. Rec- 
 ommended by the trial judge and warden. 
 
 Max H. Freeman, January 23, 1896, Douglas County, 
 larceny, three years to one year and six months. Mitigating 
 circumstances. Recommended by the prosecuting attorney, 
 members of the bar and citizens. 
 
 Amos Benjamin, April 4, 1896, Buffalo County, grand 
 larceny, two years to three months and twenty-nine days.
 
 (69) 
 
 Consumption. Recommended by the warden and prison phy- 
 sician. 
 
 Arthur J. Dixon, May 2, 1896, York County, abortion, 
 one year and six months to seven months and six days. Rec- 
 ommended by the trial judge, members of the jury and citi- 
 zens. 
 
 Frances Brant, May 12, 1896, Madison County, man- 
 slaughter, three years to live months and twenty-six days. 
 Mitigating circumstances. About to be confined. Recom- 
 mended by warden and prison physician and many citizens. 
 
 Peter Milledge, June 4, 1896, Dodge County, grand 
 larceny, two years to four months and seven days. Recom- 
 mended by prison physician and warden because of ill health 
 of a serious nature rendering his life of short duration. 
 
 Geo. W. CoPELAND, January 17, 1896, Douglas County, 
 larceny from the person, three years to two years. Recom- 
 mended by prosecuting attorney and others. 
 
 Henry H. Miles, July 3, 1896, Chase County, murder 
 second degree, from life to nine years, ten months and eigh- 
 teen days. Afflicted with traumatic epilepsy. Recommended 
 by prison physician and others. 
 
 Mike Cernell, August 14, 1896, Furnas County, bur- 
 glary, seven years to tour years and three months. Recom- 
 mended by the warden and trial judge. Two others partici- 
 pated in same offense whose sentences were only three years, 
 all equally guilty. 
 
 William Scott, August 24, 1896, Lancaster County, bur- 
 glary and grand larceny, three years to two years. Recom- 
 mended by many citizens and those interested in prosecution. 
 
 C. C. Gibson, September 14, 1896, Douglas County, rob- 
 bery, three years to one 3'ear and six months. Recommended 
 by the trial judge and members of the bar and other promi- 
 nent citizens. 
 
 R. S. DoNNELLSON, October 21, 1896, Thurston County, 
 grand larceny, one year and six months to one year. Previous 
 good character. Mitigating circumstances. Family in desti- 
 tute circumstances. Recommended by the prosecuting attor- 
 ney, jury and large number of citizens. 
 
 John T. Phillips, October 28, 1896, Gage County, obtain- 
 ing money under false pretenses, two years to one year. 
 Recommended by trial judge, prosecuting attorney, county 
 officials and large number of citizens. 
 
 Charles Blackhorse (Sioux Indian), November 10, 
 1896, assault with intent to commit rape, ten years to seven
 
 (70) 
 
 years, three months and twenty-eit^ht days. Dyinjj^ from ef- 
 lects ot" a former arrow wound. Recommended by the warden 
 and prison ph3'sician. 
 
 Ford Wright, November 23, 1896, Dixon County, man- 
 slaughter, two years and six months to oiie year, four months 
 and ten days. A boy scarcely sixteen years of age ; doubt 
 as to whether tragedy may not have been the result of an ac- 
 cident. Recommended by the jury, county ollicials and large 
 number ot citizens. 
 
 Jacob B. Harris, December 23, 1896, Banner County, 
 assault with intent to murder, two years to one year, eleven 
 months and ten days. Recommended by trial judge, prose- 
 cuting attorney, jury, parties interested in the prosecution and 
 citizens. 
 
 Finos Honiittod and Prisoners Pardoned from Connty Jails By Governor Silas 
 A. llolconil), from January 3, 185)5 to January 7, 1897. 
 
 Henry W. Vallery, February 9, 1895, Saunders County, 
 malicious libel, six months in county jail and $500 fine and 
 costs of prosecution. Recommended by county attorney, county 
 commissioners and citizens. 
 
 Isaac Whitman, March 20, 1895, Lancaster County, bur- 
 glary, eighteen months in penitentiary. Convicted on per- 
 jured testimony. Recommended by trial judge and prosecut- 
 ing attorney. 
 
 John Rhodes, March 27, 1895, Nance County, assault 
 and batter}', thirty days in county jail and cot,ts. Recom- 
 mended by trial judge, member of the legislature and petition 
 of citizens. 
 
 B. F. Madson, July 25, 1895, Douglas County, soliciting 
 a bribe, $300 fine and costs of prosecution. Unsound mind. 
 Recommended by jurors, city officials and more than 100 prom- 
 inent citizens. 
 
 Albert Ai.tendorff, October 14, 1895, Douglas County, 
 assault, two years in penitentiary. Mitigating circumstances. 
 Recommended by jurors and unusually large number of citi- 
 zens of Douglas County and prominent men of the state. 
 
 Alfred C. Griffin, February 13, 1896, Douglas County, 
 forgery, two years in the penitentiary. Recommended by 
 many prominent citizens of Douglas County. 
 
 Chan Rosa, July 25, 1896, Dodge County, selling liquor 
 without license, $100 fine and costs of prosecution. Recom- 
 mended by count}' officials and long list of citizens.
 
 (71) 
 
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