The Bismarck Tribune Newspaper, January 6, 1937, Page 8

Executive Asks Legislature to Aid U.S. Moves * Closer Control of Public Expenditures and More Publicity for Them Urged; Must Care for Poor and Distressed General Statement of Cooperation With All of the People and All Agencies of Government eae k Ladies and Gentlemen of the Twenty-Fifth Legislative P Session: a Under the constitutional duty imposed to inform you of the i condition of the state, and to recommend such measures as I deem expedient, I now address you. Your hearty cooperation for the heavy problems and re- i. sponbilities which face us concerning state affairs is sincerely i desired. May bitterness, which always arises in strenuous political campaigns be forgotten. May we all be united now i as officers and citizens of the great state to render to it our i highest public service. I sincerely desire to be the Governor of all the. people re- gardless of race, creed, or political beliefs. I hope to co- operate with you and have each and all of you consult with and advise me at all times. We want to be able to say to the people whom we represent that we have worked to- gether and acted for the best welfare and interest of our if state. This aid and assistance is sorely needed at this time. ef On every side we witness conditions of distress asd poverty. 4 Poor crops with depressed prices, extending over a period of several years—worst of all last year—have brought before us for consideration and action, a situation which never be- fore existed. As public officials, we must cooperate with every agency of government, whether Federal or state, to assist our peo- ple. Our state, our farmers, our working people, our indus- tries, our business institutions, our trade and commerce— all are affected. With less income on one side, and increased honed on the other, all of our people are looking to us for elp. We know the wonderful loyalty our citizens have shown. 4 Regardless of adverse conditions, our people have remained j and have struggled along. We all know about the wonderful resources this state possesses in climate, fertility of sojl, in mines and in minerals, and in the integrity of our people. All that we need are fairly normal conditions, such as this state has had in days past, and a helping hand, to again bring conditions of progress and prosperity to us. Cooperation With Federal Government I am convinced that the matter of greatest importance at this time is our active and full cooperation with the Federal government in its pregram of aid and relief. President Roosevelt is entit!ed te your full cooperation, regardless of your political views. He has received an overwhelming vote of confidence from the people of this state and nation. Re- lief to those within our state in distress, water conservation, soil rebuilding ana highway development are matters of prime concern to us President Roosevelt has recognized our distress, as well as the needs of our people so dependent upon agriculture for the return of prosperous conditions q within our statc, and I want to emphasize the necessity, as 3 well as the duty to give him and his administration fullest yt cooperation. Relief Our first and most important concern is the participa- tion of our state in giving all necessary aid and relief to those who arc in destitute circumstances within the state. Investigation has revealed that over 70,000 families, residents of this state, re on the relief rolls for aid and assistance which heretofore has been furnished by the government. The Federal Government will probably continue to provide considerable aid for employable urban families through the WPA and for farm families through the Rural Resettlement administration. The state and the counties, however, must provide assistance for unemployable families or persons in need of relief, and supplementary aid in the form of medical assistance and subsistence for those whose WPA earnin; ap Resettlement grants are insufficient to provide for their needs. The Public Welfare board, out of appropriation made by the last legislature, and from a final grant of federal funds to the } state, made grants totaling $1,676,255 to the county welfare | boards for the calendar year 1936 to assist county boards and ! provide relief needs in those counties. The various county commissioners appropriated to the county welfare boards dur- ing the year more than $1,075,000. Thus, the county wel- | fare boards spent for direct relief during the past year, not including old age assistance payments, more than $2,750,000. ha Because of poor tax collections the counties are at present | unable to provide the funds necessary to meet relief needs. Funds available to the Public Welfare board for making grants to the counties are exhausted and an immediate appro- priation is necessary to enable the Public Welfare board to assist the counties in providing for relief during the period ending June 30, 1937, as well as for the biennium. It is esti- mated that $1,800,000 will be needed to furnish the relief needs from now to June 30, 1937. Of this amount it is esti- mated that counties will be able to appropriate not more L than $300,000, in addition to their share for old age assistance @ and aid to dependent children required under the Social Se- curity Act. It is therefore recommended that the legislature make available immediately $1,500,000 to cover the period to June 30, 1937. For the biennium 1937-1939 it is estimated oan that $3,000,000 will be required for relief purposes, of which the counties will be: able to provide $1,200,000, leaving $1,- 800,000 for the State Legislature to appropriate. I am distinctly in favor of placing the supervision and the financing of relief back again with the counties, where it once was, with the assistance and supervision given to them by both our state and the federal government, I recommend immediate and full investigation, to give all support needed. Perhaps ways and means may be found through a portion of the sales tax and income taxes so that the state can furnish financial assistance to the counties, in accordance with their needs, In this connection we must real- ize the financial difficulties in raising the needed monies. Social Security Legislation Old age benefits and unemployment insurance are here. The federal government through the administration of Presi- dent Roosevelt has enacted the Social Security Act. It is now in force. Over 27,000,000 persons in the United States already have been registered under the provisions of the Becca! iw: This Act is administered by the Federal Gov- ernment, The Social Security Act also provides for ppemmployment insurance against poverty and distress resulting from un- employment. To secure the benefit of the Federal Unem- ployment Insurance Act, and the tax collected from employ- ers, this State must enact legislation in accordance with the Federal law. We must find means of making the Federal law effective. I recommend that an unemployment compensation measure be enacted immediately so that this State may qualify. ‘I sincerely hope that a joint legislative committee, as a spe- cial committee on social legislation, will be created for the immediate drafting and introduction of an Act which will enable North Dakota to qualify under the provisions of Fed- eral law. If I had possessed the power, I would have called you together for this purpose immediately after the election. Under the 1935 Act creating the Public Welfare Board, that Board was given authority to cooperate with the Federal Gov- roviding old age assistance, aid to crippled and dependent children and for child welfare services. Under. authority granted in this Act the Board prepared plans for old are sistance, aid to the blind, child welfare services and aid for crippled children and these plans are now operatin; and the State is benefitting from Federal aid. Because o! conflict between the Mothers Pension Law of North Dakota and the Social Security provisions for aid to dependent chil- dren, it was impossible for the Public Welfare Board to form- ulate B Plan for aid to dependent children which could be by the Social Security Board. A law providing for aif to dependent children in accordance with the provisions of the Social Security Act should be passed I would urge that you give immediate attention to the passage of an act will enable North Dakota to secure this Federal aid, sedncing the cost to the State and counties of provid- tance for widowed mothers and dependent children. the Load for old age and blind assistance are in the opis islature should enact laws in conformity Social urity Act in order that the SI to participate in Federal aid f lations to provide the State’ the blind, aid to the de; children and child welfare services will be re- funds which the Public Welfare Board has eati- will be required for these purposes have been submitted : Employment Insurance pe stated, I am in favor of old and unemploy- I favor an Act which will establish a com- | _ ample supply of seed. _THE BISMARCK TRIBUNE, WEDNESDAY, JANUARY 6. 1937 mission to handle the matter in coordination with the Fed- eral Social Security Act and the passage of an Act which will exempt all employees from contributing any portion of their wages or salary'to the establishing of the fund for either old age or unemployment insurance. In the final analysis the public that purchases from the employers who contribute, must carry the burden for this insurance. If the employee paid it, or a portion of it, he must pass it on to the employer, who in turn must pass it on to the public, Water Conservation There is no matter of greater importance to the welfare of our state and the ultimate relief of our people than the restor- ation of the water supply normally present. It is not neces- sary for me to emphasize that soil erosion, loss of crops, the poner and distress of our farmers, is largely due to the lack of an adequate water supply. The tragic recision and disappearance of our lakes and streams, and the lowering of water levels compels us to do something to relieve this situation. Our efforts heretofore in this direction have been sporadic or occasional. In many respects, it has been the work of voluntary organizations. In my former administration, with- out funds and without any particular legislation, I was able to secure the building of many dams in streams and water- courses in this state, the present benefits of which are now illustrating what can be done. Already in Montana, the Fort Peck project will retain vast quantities of water, not only for Montana, but also for North Dakota; and at the same time it will relieve flood conditions in the South. The use of the Missouri river and the run-off waters which it carries, as well as the use of the Red Lake and Red River waters and.watersheds are matters for your at- tention and action. I recommend that the Legislature take command through the establishment of a commission and the creation of a pro- gram in full cooperation with the federal government. recommend immediate action through the appointment of a special joint committee of this Legislative Assembly, not only to consider, but also to take action. Those who have been concerned with the administration of the federal gov- ernment’s activities in this state, such as Thomas Moodie, Henry Holt, John Moses and others have assured me of their assistance. Agricultural Aid To restore and maintain the water level to prevent our wells, which furnish ninety per cent of the water supply to our farmers, from drying up, and to provide an ample sup- ply of water through the construction of, dams and reser- voirs for primary irrigation purposes, I recommend that you promote irrigation of enough lands to raise the provisions necessary to sustain human life; to raise enough forage for our livestock, or at least for our foundation herds, because we cannot build, nor long maintain a profitable livestock or dairy industry in this state when we must ship in or pur- chase our forage at a prohibitive cost, or else sacrifice our livestock every other year at ruinous prices; and to raise an T believe that water conservation is the most pra and effective method of flood control, and believe in irrigation as the most practical and effective method to sustain the farm family, to reduce poverty to a minimum, to provide continu- ous employment and to remove our distressed farmers from poor relief rolls. Manifestly, it is better public policy and economy to restore prosperity than to move our people from the state under a federal resettlement plan. I therefore respectfully urge you to memorialize Congress to vigorously ress the Long Range Water Conservation and Irrigation rogram that it has so widely undertaken; that the Bureau of Reclamation, through the use of the Great Plains Station at Mandan, through their practical experiments demonstrate the various methods of water conservation which are suitable and profitable for our state, and that you enact whatever measures may be necessary and appropriate to aid in and to cooperate with the federal government in the development of ‘this program, The federal government should also be urged to furnish sufficient funds or immediately provide for an adequate supply of feed and forage to relieve acute short- age and to prevent the consequent starvation and loss of much of our livestock, which is the only present means our farmers have to make:a livelihood. Rehabilitation of our farm lands and our producers is most important. The prosperity and progress of our state in every field of endeavor is so dependent upon it. When we notice that our agricultural productions, whether grain or other products, receive the highest recognition in national contests for quality and for worth, the necessity of governmental at- tention in aid of our farmers and farm lands in distress be- comes almost our paramount dee Our farmers need only the helping governmental hand here at home for the rehabilitation of the soil they occupy, and tr ie opportunity of crop production plus a reasonable Pro! I endorse the movement for crop insurance, and recommend your cooperation with governmental efforts in that direction. fe have been committed to that sort of program for years through the Hail Insurance Department, the integrity of whose trust funds'you must preserve. About the only business that does not receive the protec- tion of insurance and of safeguards for its continuance and survival is that of agriculture; and it is time for us to devote our energies to see that the farmer has thrown around him every protection that business, trade and industry now receive. For these reasons I heartily favor every possible effort to mote means to enable the farmers to purchase land on easy erms, at low rates of interest, with exemption of taxes ap- plied to homes, and with insurance principles pplied to the product that farm labor creates. In matters of refinancing farms, we should support the Frazier-Lemke Act. eae ‘axes and Taxation As you all know, I have continuously advocated reduction of taxes.. Four years ago it was the principal subject in my address to you, atid with your cooperation they were reduced and likewise state expenses. I fully realize that this can be accomplished only by effici- ency and economy in state appropriation and in state admin- istration. . Our land tax is too heavy a burden on our people. We cannot build up home owned lands without better equal- izing the tax burden. We must see to it that those forms of wealth and that income which participate in and grow out of trade and commerce of North Dakota, and with North Dakota citizens, bear their just burden of taxation. I recom- mend to you specifically for the peatec ton of home owners, the enactment of legislation, which will create an exemption from taxation of occupied home owned farm land to the extent at least of 160 acres and up to a value of at least $5,000,000, and city or town dwellers home, owned and occupied, to the extent of at least two lots, of fifty feet, and to the value of at least $1,500.00, so that home ownership may be encouraged, protection afforded, although otherwise such home owners will:bear the ordinary burdens of taxation. I recommend that you: favor a change in the taxes on farm and ranch lands which will equalize the tax burdens. Farm and ranch lands have been paying too high a tax in compari- son with what they have produced. The taxes on farm and tanch lands should bear an equitable relation to the income produced. You will then satisfy the graduated land tax group‘ and the income theory group. I believe that any sound and constructive program of tax reduction to be really effective must deal, not only with the state government, but with every taxing unit thereof. Our experience proves that the state expends less than twenty per cent of all'the taxes levied, and that more than eighty per cent is required by its local subdivisions. Consequently any tax program must: be so conceived and so administered as to apply equally to every taxing district. recommend that you utilize the information gathered by the tax survey commission and that you give serious consider- ation to its proposals and counsel; that you devise and form- ulate plans for a complete revision of our system of state and local governments with the ultimate aim to simplify and clarify our whole super-structure of government; to eliminate every office, bureau and commission not essential to the maintenance of the’ primary functions of government; to simplify and consolidate those agencies that are essential, so as to reduce the costs of their maintenance; to place every office, bureau and commission which you determine to retain, upon a self sustaining basis, insofar as it is possible, by the charging of reasonable fees for all services rendered, and to reol reform our system of the administration of affi rs of government so as to conform to scientific methods of business management and promote the maximum degree of efficiency in the: administration of all governmental affairs. At the same time in this program of reduction of taxes and greater economy in government, I am in favor of maintain- ing our school-system in this state, both the elementary schools and higher education, at its highest possible efficiency. ‘With the higher and.at present mounting costs of living, our schoo] teac are not sufficiently paid. To retain our leadership. in ‘education, we must Pay adequate salaries. Along with this, we must protect labor from disease, sickness and accident. We must take care of the poor and those in dis * We must provide aaeguese unemployment insur- realize the funds for such purposes must come from taxation; but. we must-find sources of jtax revenue which should be applied to these needs. For such Sceecements, business, trade, commerce and industries must bear their just burden. The fore! manufacturer and wholesaler of in- toxicating liquors who brings them within our state, should pay a license to do business the same as California now re- arty lat I recommend such tion, though the sales tax shifts the burden of taxation con- siderably upon those who are the least able to bear it, never- theless the people of the state have voted for its continuance, for use to support the schools and the relief of the distressed, the aged, the blind and the dependent children of North Da- kota, and as a replacement tax. t I recommend that if the sales tax is continued, tokens or coupons be used, to avoid paying a five or six per cent tax rather than a two per cent tax. Owing to the fact that thousands of farmers found their . 1935 hail tax assessment more than double what it ever had been before, I recommend that you ascertain whether or not any portion of that hail tax may be cancelled or refunded. Provision should be made to enable the owners of real es' with heavy delinquent taxes to make settlement thereof discount, at least with the cancellation of penalty and inter- est. Those earnestly striving to start over should be given the opportunity with as much assistance along this line as possible. I believe that the state should be willing to cooperate in this respect, and discount a part of the old real estate taxes upon payment of the balance. The railroads have been receiv- ing such discounts because the Courts have though them ex- cessive, In spite of the provisions of law for payment of delinquent taxes, without penalty or interest, a continuing large portion, particularly against farm lands, remain unpaid. Drouth con- ditions and poor crops have made it practically impossible for many of our producers to pay. I recomm leges heretofore granted be extended for a period of four 5 I further recommend that you give a still further oppo. ity to our farmers and homeowners to pay their delinquent taxes by enactment of a law following Minnesota enabling a farmer or a city owner whose taxes have been delinquent for five years or more to file confession of judgment for the delin- quency, and pay the same in ten annual installments. Highways and Transportation We are receiving annually a large amount of money through the imposition of a three cent state tax on gasoline. I recom- mend its continuance, but disapprove an increase. I am satis~ fied that we must bring the highest efficiency and economy to our highway program so as to maintain and extend these highways in a proper manner. The maintenance of many of our highways is done at a tremendous cost. Under the pres- ent system it is difficult to maintain and keep them all open for travel with any degree of efficiency and economy. Thou- sands of dollars are lost annually to this state by blocked highways and lack of proper care. This has compelled and is now compelling transcontinental travel to detour around the state. We must fully cooperate with the federal govern- ment in its highway program. We must strengthen our own laws, and demand from our Highway Department the enforce- ment of the laws which apply to the use of our highways and the licensing of trucks and passenger automobiles. Lack of law enforcement, and poor and at times blocked highways, are causing annually an appalling loss of life and property. This can and must be lessened. Requiring truck owners to buy commercial licenses when engaged in hauling earth, stone or vel on highway, dam or other construction should be eliminated, and work of this kind should not be classified as using highways for transporta- tion of commodities, In order to eliminate automobile accidents I recommend examination of drivers to prevent those afflicted with some physical handicap which interferes with the safe operation of a motor vehicle from driving. We must cease to tolerate the careless or intoxicated driver. I recommend that the drivers license law be amended to pro- vide for a substantial annual fee, together with an annual re- Rare by each applicant.on the number of miles he has driven, is age. and accidents he has had. This to be enforced through adequate policing of our highways. Moratorium, Embargo and Interest Rates The underlying principles of the moratorium, the embargo and rates of interest, concern both the security and well of our people. Throughout this nation, in every single state, and by the federal government, we have seen a moratorium in some form, the right of an embargo in some form, and the enforcement of lower interest rates, both enacted and com- pelled. North Dakota is rich in raw materials, food and fuel. Yet it is poor in the enjoyment of our people of that wealth which we have produced. It is not unreasonable to say that the production of our wealth in raw materials since statehood has been sufficient, if now present, to pay our-entire national debt. Neither state or nation can succeed which does not protect its people in times of emergency and distress, as well as from the greed and avarice of those who pesy, on the in- dustry of a people. I have never advocated a moratorium to protect the dishonest debtor nor the shifty and crooked. For such it will never be applied by me while Governor of your state. I do not advocate the embargo to prevent free- dom of commerce, or to deprive progucers of the right of sale, but when conditions of congestion exist in the transportation agencies, or in the markets of the country resulting in ruin- ously low prices, the principle of the embargo is a matter of governmental policy and not for the benefit of private agencies alone. I also believe that the so-called legal moratorium enacted in 1935 should be revised. In that law there should be enacted, as much as possible, provisions for hearings which are now being conducted more or less voluntarily before seizure or sale of property, or the issuance of executions. As far as it is possible, these hearings should apply to the remedy, so that no question can be raised succes8fully against them. The extended periods of redemption should expire in the spring of the year, say April 1st, rather than July 1st, the middle of the growing crop season. “ The principle of the moratorium should be aided by legis- lation creating a competent and legal state adjustment board, with sufficient power to handle, on a moratorium basis, the claims of creditor against impoverished and distressed cred- itors who have become such through no fault of their own. The principle of the embargo should also be recognized by legislative action which will protect_our producers in times of emergency or traffic congestion. i Interest rates always have been too high. We have wit- nessed the wealth of our people consumed almost entirely by interest. We want capital to come into our state for invest- ment. We want to give assurance that we, in good faith, will protect capital investment, but we want it to realize that in so doing it must ask for returns no greater than it is receiv- ing in other sections of our country. I have noticed a rather large number of personal loan agencies springing up, which loan money in small amounts to laborers, school teachers and so forth, and upon which the borrowers pay high interest per annum. There is something amiss with a financial situation which forces people to pay excessive rates. It has come to my attention that in many instances the property covered by conditional sales contracts has been taken by agents of the sellers while the purchaser was away from the premises. In such cases, under the present law, there is no relief for the purchaser. The law should be amended so as to require court action for the taking of the property: The law should give power to the court, not only to enable the pur- chaser to make good his default, if he can, but if he cannot the court should have power to permit him to retain the prop- erty for a reasonable time if necessary to either plant or har- vest his crop, or the case may be, and on such terms and con- ditions as may be just and equitable. % Organized Labor and Organized Producers Labor, brain and brawn, is one of the main essentials to success in every field of human endeavor. Without intel- ligent, honest and sustained toil, without. continuous and gainful employment, there is no future or security. For- tunately, the hours, conditions of employment and the Ss paid in recent years in our state, have been materially im- Proved) through the enactment of the Minimum Wage Law lor women, and through compensation paid by the Workmen’s Compensation Bureau for the loss of life or personal injuries sustained in the course of employment. But I firmly believe that we can still shorten the hours of work, make the working man’s condition of employment still more safe and sanitary, and still pay higher wages, so that labor can maintain what it so justly earns and deserves—a decent standard of living. _ Both labor and the producers have been slow to organize. Trade, commerce and business have been highly organized for years. The voice of the unorganized is only feebly heard | under modern conditions. Protection for life and limb, and for better wage conditions, has come only through iza- tion’and through long struggles to achieve it. The er has been particularly slow to nize. Only in recent years have organizations in his behalf me patent, I favor every povection to be Saran! scoured ee lal Ane “a and ae ighest wages possible, with full recognition of organ its effort to accomplish those ends. I favor farmer tions and affording to them the protection of law, in orgal their efforts to preserve agriculture as a means of livelihood, and to secure a decent price for tural commodities. We should, therefore, support organized labor and farmers’ organizations seek: to © conditions for both labor and the producers. We should give more attention to developing the cooperative movement in North Dakota. We must realize that non-} lucers who process or merchandise the things that the farmers produce, erally receive a far greater re- turn than the farmer ic rere on his own products. ines Our. state is primarily an cultural state, yet it seems that the day is not far distant when it will take its place” along with the great mining and oil producing states in the nation, We are prone to ignore the great wealth that lies buried in the ground beneath our feet. A few citizens have toiled incessantly against adverse reports and adverse criti- cism to bring forth these latent industries, and now are view- ing promising signs of a reward for their patience and per- serverance. e here by the great glaciers, and is found in their morainal er Inaugural Address to Le gislature Gold is sent in this state in paying quantities. Itisa very finely divided gold, of high quality, a part in free form, but mostly locked with other metals. This gold was brought channels, A few of our citizens have worked consistently on this theory for a number of years, and have, with aid of outside capital and research, proven this to be a fact beyond a doubt. This industry needs every encouragement that can be given it. WE eee 5 ey hat is true of the gold is likewise true of oil deposits in our state. All indications point to increased activities in the development of oil fields within our borders. To further facilitate these prospective industries, everything should be done to make it possible and practical for organizations seek- ing to develop certain areas to secure all lands necessary to protect themselves in their venture. Chapter 232 of the Ses- sion Laws of 1981 should be amended to make it clear that it applies to oil and minerals, or other laws should be enacted to meet the requirements. ‘ ‘ Tam concerned that we do everything possible to develop industry within our state, and use our native resources in doing it. We should give particular attention to aid mining and the use of our lignite. Approximately 300 mines are producing around 2,000,000 tons annually and employing about 1 miners. About 500,000 tons of foreign coal is brought into our state for use and consumption here. We ought to use lignite fuel for practically all power purposes within the state. In former legislative sessions you have ‘said that lignite must be used in our state schools and institutions, and imposed a duty on state, county and school officers so to do, Further, you have provided for various lignite rates which were the subject of much litigation. From time to time you have required investigation into lignite and other coal, and during my previous administration you provided that lignite briquets should be transported on the same basis as lignite itself. At my direction, during my former administration, an action was brought for lower Basis rates for transporting lig- nite screenings in this state, and finally your state Board of Commissioners for the first time in the history of the state, granted a lower rate or differential on lignite screen- ings, all resulting in a greater use of lignite screenings and savings to our state institutons of about $75,000 per year. ‘We must continue to develop our lignite industry. j I reéommend a legislative definition of lignite, so that it wl not be sass on Ee ate! basis as foreign coal ao rate purposes. I reco. ‘legislation requiring our Boar of Railroad Comalssiouee to establish the lowest possible rates on lignite. The same rate should not apply to coal of $10.00 value per ton, and to lignite of $5.00 value per ton. recommend also for your consideration and action a tonnage tax on lignite mined for sale and not for personal use. Official Accounting and State Expense , We must seek to accomplish efficiency, and a strict account- ing in state offices and state expenses. In my first talk to" the people of this state after my election, I told them that in this business of running the state they were entitled to know how every single dollar of state money was being expended. To that end we must improve and consolidate our methods of state accounting concerning expenditures by state boards, institutions, and officials. We must provide for one single centralized board or officer whose principal duties shall be to receive porniey and continuous reports from every single state board, institution, and official covering expenditure of state funds, with the duty imposed of auditing these reports and making recommendations and criticisms in respect to Ras ‘We must correct abuses in the expenditure of public Audits must be frequent. A delayed’ audit is valueless un- less for subsequent investigation purposes. Joy rides by pub- lic officials, entertainment furnished at state’s expense by boards or institutions, needless travel, expenses charged on foreign junket trips must be stopped. Instead, such funds might well be devoted to the relief of our people. recommend a hs the adoption of legislation that will create a single auditing body, which will have the power to appoint one expert official with the powers and responsibilities of seeing that monthly the people of this state are informed about every single dollar of state expense, and monthly every single board, institution and state official, including myself as Governor, will have his or their acts in expenditures of public funds revealed to the pers. vil Service I recommend the enactment of a civil service law which should apply to all aponiniees and employees of the state and its political subdivisions, so as to place all upon a basis of relative merit, competency, experience and fidelity to trust, and thereby improve the si of service in all adminis- trative affairs of the state to the mutual benefit of the state, its taxpayers, its officers and employes. iz Indebtedness : Since my message to you in 1933, you have witnessed, even in these times of drouth and depression, a great improve- ment in the credit of our state, and you have seen North Da- kota bonds sold greatly above par. I have at all times insisted that the credit of our state must be preserved, and that the Ponte indebtedness of our state should be reduced and not reased. : We must see to it that the principal and interest of these bonds is promptly paid as they mature, and that funds be established to protect this liability of the state and its credit as unimpaired. ‘e must see to it that trust funds in this state be pre- " served as such, Monies taken from the Hail Insurance trust fund must be returned to it. We must see to it that monies raised by tax on gasoline are devoted to the purpose of its assessment and in the improvement of our roads and high- ways in this state. These matters concern the performance of a trust imposed upon us by law. lucation and Educational Institutions The type of education which should be stressed in North Dakota is that type which prepares youth for life in the state. Educational courses which tend to promote migration from the state are of no spec value to a state itself. The under- lying Detasipls which justifies free and subsidized education is the contribution which the recipient in mature life makes to the wealth and public welfare of the state. Those who migrate from the state make no particular contribution. The courses which our educational institutions ought to stress are those which tend to promote residence in the state, and help the individual for life here, We are aon agricultural state. ys ball slwasal be anes fe voted peaaeily to agriculture, and our future de ls upon the development of agriculture. We have hardly seratched the surface of the robles of the soil and economics of ulture as well as education along these lines. With no thought of depreciating the need and value of other courses of study and special training, I would pee that ee rollers of an hy gaa ae, is furthered lucationa! gram which lays speci if rata a fn er varied Phase - ys special emphasis on considerable part of your time during this session wi concerned with problems of education and financial Pate for our educational institut We have the problems of our grade and high schools, both city and rural, and those of higher education. We must constantly be alert to furnish the finest opportunities of education to all of our youth. In the days ahead the progress of this state, the citizenship of its ople, will be considerably influenced by education. All Fincial aid and support that we can bring to the term, we have provided for them. Through the world-wide conditions of depression and particularly the drouth stricken conditions which have afflicted us, difficult financial problems are repre- sented, but our first concern must be to give added support to aid our rural schools. They are advance posts in civilization pom aigiicrg za We mast eive sores Baby, allthaoeial aid and schools, an i - cate! wen, ig! our higher edu. you today must be prepared for the task of citizen- ship and its duties with an education, whether iterary eae technical, that will give opportunity to compete in the condi- tions of modern society. I am not over-sensed with the idea that we have too many schools or too much education within our state. Perhaps it may rather be said that some changes are needed in the oi ie of our education and in the duplica- tion that results, which, if eliminated, might give us more op- Portunity for education in more and greater fields, : Our teachers, whether in rural schools, high schools, or in- stitutions of higher learning, must be competent, and we must willing to pay them well for the services they render. With the higher costs of living, their scale of wages ought to be higher. In our institutions of higher learning, we cannot ex. pet to secure that competent service, or to retain it if we ve it, without paying a wage at least similar to those paid for work in other employments in the state. With the demand for Ben pesreastions| that will be before you, you must find means methods of adequately taking care et our rural schools, pay the teachers a decent wage, preserv- ing our high school systems and our institutions of higher paraite, with a greater degree of protection and assurance for their progress, and with a decent living wage for those who are instructing our youth in these institutions. ae must find sources of revenue largely outside of the or- inary tax on land and personal Property. With the contin- pene of ne desta ae Sree Gon of the income tax law and ; ig, liquors and i ae this state, there exists mabjest matter eoepae ind the revenue needed to sustain our educat system in SAH with ban denand and its real need, ( xtbooks should be furnished free to all children, both in private and ic 3 oF eal tion should oy be furnished me Foie tes aeparta enal Institutions and Sanit All of these institutions are alert arr basis of imine iors yap te pean confined. It is a rather sad ley are costing o1 _ S@antinued on page'e) 7 8% =“ ian