Grand Rapids Herald-Review Newspaper, January 12, 1907, Page 3

| | v a _ —— a EA GOVERNOR'S MESSAGE Many Important Recommendations Submitted for the Consideration of the Legislature. ‘The following abstract contains all the most important points touched upon bs | Gov. Johnson in his message to the legis- lature: The governoy finds much cause for con- gratulation in the general condition of our prosperity. He says: “We have particular reason for felicita- tion in the financial condition of the state. According to the report of the state au- ditor there has been much improvement during the past bien- State’s Finances. ial period. Economy by the legislature, followed by economical administration’ on the part of the executive departments, will bring a further improved condition in the near future. “Prudence and wisdom should mark your every action, and local demands should, as far as possible, be subordi- nated to the good of the whole state. The state auditor in his report to you has given his estimates of the receipts and expenditures for the ensuing three years. His estimate of the total receipts for the year 1907 is $6,300,936.09, with estimated expenditures for the same period of $6,376, For 1908 the in- come is estimated 3,370,000, with esti- mated expenditures of $4,766,000. For 1909 the estimated receipts of the reyenue fund are $5,440,000, with estimated ex- penditures of $5,061,000. In his estimate for the years 1908-1909, it will be neces- sary to raise about $500,000 a year. by direct taxation, and to produce that sum a levy of approximately a one-half mill will be sufficient; and that, reckoning upon this basis, and taking into consid- eration the various extraordinary appro- priations which are now in force, some 900,000 will be available during these twe years for new buildings and other extraordinary appropriations, While this is not a very large sum, it is hoped that the legislature will be able to practice that rigid economy which will bring the appropriations within the estimate made by the state auditor" ‘One of the greatest questions with which you will be led upon to deal is that of solving the problem of provid- ing, at least in some measure, a wise and just method of Taxation. distributing the tax burdens of the peo- ple you represent. “From the birth of our state govern- ment we have had an unchanged sys- tem of taxation in the form of a rect tax upon real and personal property. ‘The history of taxation in the form of a direct tax upon real and personal prop- erty. The history of taxation in our state has taught us that taxes have not been equ: and that the method has not been efficient. The cause has been in part the law and in part of ap- plication. “The state constitution provided that jaws should be passed taxing all prop- erty according to its true value in'money. Laws have been enacted with this idea in view, and yet we know that’ the taxation of all forms of property, while based in some measure upon valuation. has seldom or never approximated full value. Real property has been generally assessed at anywhere from 25 to 50 ner cent of actual value; and tangible per- sonal property at much the same ratio; while millions of dollars of invisible and intangible property has escaped taxation entirely use of the ability of the owner to evade his lawful tax burden. “It is not to be presumed that this or any other legislative body will be able to devise a system of taxation or enact a tax law, which is going to bring about in complete form tue results commonly hoped for by all peopie compelled to pav taxes. The best that this body can do is to equalize as neuriy as may be the burden of taxation and so adjust it that its weight will not fall too heavily upon these unable to bear it, and distribute the responsibilities m accordance with the privileges enjoyed *under_ our gov- ernment. During the year 1905, the total taxes levied in our for all purposes amounted to %: distributed in various ways for the carrying on of state, J county, city, town and school govern- ments. No law can be enacted by you which ill in a ve large measure re- duce this burden of taxation, which was even greater in 1906 than in 1905; the total taxable valuation of the property of the state for 1906 being $914,000,000, in round numbers, as aguinst $853,000,000 in 1905. “Up to this time the! legislature has never been able to modify in any mate- | j¢ stem of taxation which, very largely one of direct ad " valorem The Nev Consti- taxation upon per- tutional Tax sonal and real prop- erty. There has been Amendment. much complaint, and that too, very justly, This limitation has been due to constitutional restrictions, and for years there has been a clamor and much attempt to modify otr constitution, re- moving the restrictions which have | hedged about leg ive bodies, and giv- ing to them a wider and more gene al latitude in regulating, or in legislating upon this question of taxation. “At the recent general election the peo- ple of Minnesota voted to modify the con- stitution, and adopted an amendment giv- ing to the legislature this wider latitude; and it now falls to you to justify, In some small measure at least, the opinion of the people that this action, both by the legislature and by themselves, was a wise one. “This amendment places_in the hands of the state legislature of Minnesota, for the first time in its history, the complete and sole power and responsibility of taxa- tion, with no constitutional restriction as regards the method of system of taxation provided, save that the taxes shall be un- form upon the same class of subjects, and shall be levied and collected for. public | purposes. “I appreciate that there can be no great and sudden change from an un- natural and unjust taxation to a natural and just condition. The burden of taxa- tion will continue to fall largely upon the tangible and visible proverty of the state. It occurs to me that, while there is much temptation to indulge in many changes from our present condition, it would be wise to make haste slowly, and that it would be far bet ta take one short step in the right direction than to proceed any distance in the wrong direction, and Jater on be compelled to retrace our eps. ottnasmuch as all classes of property should bear a just proportion of the taxes for raising the public revenue, efforts should be made by you to increase the ES a property yale uations upon thos Faxation\ of classes of property Mortgages. which hitherto have escaped payment of taxes either entirely or in large measure. One of the difficulties heretofore experi- enced has been the failure of the pro- vision for the taxation of mortgages and other credits. It has been patent tor many years that mortgages have not gen- erally been listed for taxes, despite the fact that stringent legislation has been enacted giving to’ the tax-collecting au- thority almost arbitrary ‘and despotic ower. The chief result has been fruit- less effort and easy evasion of the law. Money has been loaned under fictitious names and power of attorney given ex- clusively for the purpose of tax evasion. “It occurs to me that under the latitude afforded by the new constitutional amend- ment it will be possible for you to devise a registry and income tax on the credit, which will not be a hardship to either the loaner or the borrower of money, and yet will bring into the revenues of the State’ and counties a much larger sum of money than is realized under our present system. “T would most urgently recommend leg- islation providing for the establishment of a permanent tax commission, which shall : empowered to make a careful and scientific study rial degree the es we all kno by the people. Permanent Tax of this question. Spe- ially important Commission. service can be ren- ered the pro state commission in that the laws made by. this legislature are en- forced strictly, uniformly and impartially, and that assessments are erimina’ free dis- nation’ es between counties: teeah e4. 1 Bet sessment rede aley and are oe parcels of roperty in the same district. Peon the iron ranges in the northeast- ern portion of our state, we have devel- oped great mining enterprises which probably do not now bear their just pro- portion of the taxes of the state. Human mind can scarcely calculate the value of these properties, and it is not fair to assume that even at this time these properties have been listed at anywhere near a fair valuation. Beginning with 1806, the mines have been assessed as other real property for direct taxation; the totals for St. Louis county, as equalized, by the state board of equalization, being for the past ten years, approximately as follows: _$3,900,- 000— in 1896, $6,000,000 in. 1898, $16,000, 000 in 1900, "$30,000,000. in 1902, $42,000,000 in 1804, and $70,000,000 in 1906. “How inadequate even the assessment of 16 may be is apparent from the esti- mates of the companies themselves who hold the mining properties as assets for capitalization. In 1902, when the United States Steel corporation had much small- er iron ore holdings than at present, the officers testified in a chancery suit that the corporation had in reserve in depos- its of tested ore upwards of 700,000,000 tons upon which the officials placed a value of $1 per ton. Subsequent reports of the corporation confirm this valuation and show, moreover, that the great bulk of this iron ore asset of the United States Steel corporation is located in Minne- sota. Since 1902 the exploration and ac- quisition of iron ore properties in Minne- sota have procecded on a large scale, until the present estimates of mining, financial and government authorities as regards the explored merchantable ore deposits in Minnesota are upwards of W0,00U0,000 tons. It_is, therefore, ap- parent that even the $75,000,000 valuation placed upon the iron mines of Minnesota by the state board of equalization in 1906 represents only a fraction of something like 5 to 1” per cent of the actual value placed upon the properties by the com- panies themselves for practical commer- cial purposes.” _ “The problem which confronts the state in the taxation of its vast iron ore prop- erties is the practical impossibility of ap- plying to these mines a valuation and tax rate which would cause them to pay a just proportion of taxes on a basis of equality with other property throughout the state. “The State of Minnesota has received one of the greatest heritages of mineral wealth ever bequeathed by mother nature to a commonwealth. The iron ore thus far surveyed and tested measures ap- proximately one-half of the reserve de- posits of the con- tinent. The 1906 ship- ments. Of 25,483,000 tons from: the : Mii nesota mines Is over oné-half of the Amer- ican total and one-fourth of* the world total. But the state itself is receiving a very meager share of the net revenue and general benefits. “The great iron ore beds. are being yearly depleted for the benefit of a few, and these chiefly non-resident corpora- tions. “There have been taken from the mines of Minnesota and shipped out of the state from the opening of the. first mine, in 1884 down to the last shipment for the season just ended on Dec. 15, a total of 148,131,306 tons of iron ore, which, valued at the low average of $1.70 per ton, was worth to the shippers. $251,823,220. " Th total revenue derived by the te during this period of twenty-two years has been $315,280 from mineral leases and con- tracts, $635,301 from royalties on iron ore, and less than $4,500,000 all told from taxes, including both state and local rev- nue, or a total of about $5,500,000, which amounts to the trifle of a little over 2 per cent as the aggregate share of the state trom all sources and for all purposes from its great iron ore production and re- sources, “The aggregate gross earnings of the three iron range ore carriers in hauling the total of 148,131,000 tons of iron ore from the mines to the lake, at 80 cents per ton, is $118,000,000, of which approxi- mately | $60,000,000 as ‘shown by the offi- cial reports, represent net earnings. “The royalty profits from iron ore ton- age to the United States Steel corporation, which holds the fee simple to the major- y of the properties which it operates, and on the remainder pays royalties on contracts made at one-half to one-fourth the present royalty values, are beyond computation. ss ‘ “From a portion of thesé erties, which are operat private feeholders duri have realized royalties 000;on the single year’s, ot 4 “During the seven years,..1900-1906. in- clusive, the two iron. range roads Have Is aggregating $21,000,- nN a total $7,112,000 of capital stock, and had on hand on June 30,-1906, after the payment of $6,453,000 of dividends during the past fis year, an accum- ulated surplus of $9,122,000. “Thus, the State of Minnesota, which holds the resources and has yielded these magnificent incomes toa few private and corporate interests Lebar, 4 rty that receives only a beggarly inco’ “Under the new constitutional’ amend- ment it is within your power, as it is your duty, to provide ‘some system of taxation which will give the state at least an approximately fair share of its just revenue income from this. great: iron ore wealth. One step in the right direction, it occurs to me, would be an income tax on the royalties or min- eral rights, which are not now listed for taxation. “This tax on mine royalties, however, would not reach th@ large fee holders, like the United States Steel comporation, who operate their own fee properties. The royalty value enjoyed from the-use of such properties operated by the hold- ing company is as great as from the leased properties, and the tax should reach, if possible, such royalty values as well as the rvyalties based on lease. “The problem in such case would be to revise a method of arriving at or dis- covering a fair and just measure of such royalty values. Inasmuch asthe tonnage of ore shipved is the basis for computing the royalties on leased properties, it is possible that you may be able to devise a practicable and lawful method of com- puting royalty taxes. using tonnage as the basis of computation. At the same time, great legal ability and care will be re- quired to avoid the danger of double tax- ation, which is repugnant to the consti- tution and to the spirit of American insti- tutions. “Another feature of this problem occurs to me to be worthy of your most careful consideration. At the present time the state finances are in a healthy condition. Railroad and franchise taxes provide for a large portion of the state revenue. IT believe that at this session of the legis- lature changes can be made in our tax laws which will substantially provide for the expenses of state government by this form of taxation; and when this can be done, taxation would be entirely left,.as it ought to be, to the local governments for their self control. “As much of the inequality arising from the application of the tax laws is due to inefficient machinery for assessment, you may find the following change worth your consideration, namely, the abolition of the office of assessor in cities, villages and towns) and in their placa establish either a tax commissioner for the county, or in the larger counties. a tax commission of three or five persons, to be employed an- nually, with a view of the proper listing of property and the hetter equalization of existing values. The governor calls attention to the necessity of changing the present law with regard to the taxation of sleeping car companies. Under the present law they\are required to pay a tax of 3 per cent on the gross receipts of all business between points within ) state. The pene declares that it is a well-known fact that the companies evade the spirit of this law. ‘thi suggests is Taxation of Iron Mines. State Versus Pri- vate Revenue From Iron Lands. Iron Ore Royalty Tax. The business, local and interstate, and be compelled to in proportion.on the lied to railroad companies, and the tax ised to Sper cent, Attention is’also ‘called: to the necessity of amending the tax laws so far as they relate to telephone companies, These companies are now taxed on their gross earnth from business within this state, but no penalty is imposed for failure to pay. The governor suggests that a pen- alty be provided, and also thag the com- panies be required to pay a pro rata tax on all interstate ‘business. Amendments to the law for the taxa- tion of, express companies along similar lines are also recommended. The governor urges the advisability of requiring the railroads to pay their taxes semi-annually instead of annually as at present. He points out that great ad- vantage in administering the «state's finances would result. The inefficiency of our present personal tax system is pointed out, and the gov- ernor strongly urges the necessity of providing for some reasonable method of the taxation of credits generally, includ- ing stocks and bonds and moneys, all of which are presumed under our present law to bear a proportion of the taxation, but which almost entirely have escaped this burden. A sp anneted income tax has been suggested as a remedy, but. the governor says if this is attempted it should be approached very cautiously. The subject Fo graduated income, how- ever, he considers worthy of honest and careful consideration. Attention is called to the recommenda- tion of the state board of equalization in favor of levying an annual license tax on corporations, with the spirit of which the governor says he heartily concurs. “The state has a large area of land containing iron ore, and in the past has leased on terms wholly out of proportion to just and proper conditions. The statute apes provides that 5 from al ron 0 Mineral Leases. taken from state lands the state snail receive a fixed royalty of 25 cents, per ton, each ton to be reckoned at 2,240 ee. In the light of the leases made etween private parties this fixed sum is an absurdity, and should be_ changed without further delay. I would suggest that the provisions ot the law be changed, fixing a minimum royalty on state leases of not less than 50 cents per ton, and authorizing a board consisting of the gov- ernor, attorney general and the state auditor to dispose of mineral leases at public auction to the highest bidder with- out fixing a maximum price by law. “No problem with which you have to deal is of more vital concern to you and the people you represent than that of railway transportation, and a proper ad- justment of trans- portation rates. Some idea of the im- portance of this question to the peo- ple of the state may be gathered from the fact that the total gross earnings of railroads within the State of Minnesota as reported by the companies to the rail- road and warehouse commission for the year_ending July 31, 1906, was $81,619.- 640.35. The gross earnings per mile of the railroads within this state were $10,263.28, and. the net earnings per mile Railroad Legisla- tion. . $5,100.06. ‘The relative importance of this matter may be more clearly understood when we realize that the total gross earnings in Minnesota, being $81,619.- 640.35, is over 50 per cent of the esti- mated farm productions of 1906. The basis of our wealth is agriculture, and the, total estimated agricultural products of Minnesota during the past year, in- cluding wheat, oats, corn, rye, barley, flax, potatoes, hay, butter, cheese, live stock, poultry, market garden, fruit and hursery. products, is approximately $160,- 000,000. In other words, it required more than one-half of the agricultural prod- ucts enumerated to satisfy the trans- portation demands of railroad corpora- tions within the State of Minnesota. “The vast earnings of railway com- panies have been swollen by excessive rates of transportation, which have been higher in our own state than in the state south of us, or Reduction of in ee te OO ee : north of us. here Freight Rates. is a general and just demand that the people be relieved from the extortion and the abuse of high and unfair railroad rates of transportation, . “During the past biennial period efforts have been made by the board of railroad and warehouse commission looking to- ward a reduction of the rates of trans- portation, resulting in a reduction on merchandise rates, a voluntary reduction by some of the railroads in the matter of coal and grain rates. I am. satisfied, however, that absolute justice has not yet been done to the people of the State of Minnesota. During the past year T caused to be made a complete tabulation of the prevailing rates of transportation be- tween points on the several lines of rail- way within the State of Minnesota. An- plying the Jowa distance tariff law to those rates I find that the shipper in Minnesota is paying a rate of transporta- tion wholly without the bounds of justice and fairness, and to such an extent in my estimation as to retard the real prog- ress of the people of our commonwealth. “When we find the net earnings pet mile of roads twice as great in Minne- sota as in Iowa, and this, hand in hand with freight tariffs which in the main average 20 to 50 per cent higher, it is a fair presumption that the high net earn- ings of Minnesota roads are due in part to unjust and extortionate rates, ,“The recent rate reductions are in the right direction. Compared, however, with grain rates in the Canadian provinces to the north of us and with Iowa merchan- dise rates to the south, it is apparent that Minnesota freight rates are still at too high a devel, and especially in view of the enormously heavy tonnage passing over Minnesota roads from the several Northwestern states tributary to Minne- sota distributing points. “I would recommend the appointment of a joint legislative committee with a view of making a study of the prevailing conditions as to the various rates of transportation and establishing a distance tariff law, which will bring some measure of prompt relief. The people should not longer be compelled to pay great divi- dends on money that the people them- selves have put into railroads by reason of excessive rates of transportation. They ought not to be compelled. to pay a sum greater than that required to pay a legiti- mate and reasonable rate of interest and profit upon the actual value of railroad bey rege of the State of Minnesota. In addition to reduction of rates, stringent laws should be passed at this session of the legislature, in harmony with those of the general government pertaining to in- ‘terstate commerce, which would serve to make impossible the granting of rebates and special privileges to classes in the handling of state business.” “fhe time has come in our state when relief is also demanded in the matter of passenger rates. A maximum rate of 2 cents per mile A Two Cent Pas- bee seg Bean by law ani ixed now. senger Rate. The public has de- manded it; the pub- lic is right in making that demand, and the legislature should not defer action. “The time has also come for some spe- cific action in the matter of the enact- ment of law forbidding the granting of bass privileges by railroad corporations ane to people other than Abolition of ae fide employes ot railways and their Passes. pees. < So insis- ent have th become in their demand for this rereeet that all of the several political organiza- tions have been compelled to recognize the justice of the demand, and have in- corporated planks in their various plat- forms looking toward the abolition of the pass system in the State of Minnesota. i urge most earnestly the early enactment of a law. which will tofever abolish the Pass system in Minnesota.” The governor suggests the enactment of a reciprocal demurrage law, subjecting carriers to the same penalties for delay in furnishing cars as the carriers impose upon shippers for delay in loading cars. The conditions of so-called car shortage, which have afflicted this and neighboring states during the past ninety days, is pointed to as an illustration of the neces- sity for the passage of such a law. he Eo arnor calls attention to the fact that the only way in which an order made by the railroad and warehouse commission can be enforced is by an ap- for @ It is inted the lg of the hells ree CO) ion. ini es under the new rate jacant ot he on railroad commission under the distance tariff law, are prima facie. rates aft to comply with the order, out. that comme: clares that this should be the rule of law in Min: the orders of the commission are to have the authority and euective influence,. which the general interests of the state demand. The governor devotes considerable Space to the subject of insurance. He says in’ part: . “Since ‘the last session of the legista- ture, the subject: of insurance, and lite ‘4 insurance in partic~ ular, has occupied a conspicuous place in the public mind and will no doubt re- ceive your particular attention. ‘Life insurance has grown to be of the highest importance. A large portion of the savings of the people are invested in it, and life insurance companies have un- der their controt vast accumulations, the proper use and management of which is of grave concern and,necessary to the public welfare. “Great evils have grown up in connec- tion with this very important phase of our industrial life; extravagant salaries and commissions have been paid; am- biguous, deceptive and often fraudulent contracts have been sold; colossal ac- cumulations have been secured by adroit- ly conceived plans and used for the bene- dt of favored individuals, or hazarded in the doubtful conflicts waged by captains of finance in the money centers of the country. That all this has not been fol- lowed by great disaster is due to the wonderful resources of our land, and is not to the credit of those who have thus abused their trust. “You will have available a mass of in- formation which should prove of great as- sistance to you in arriving at just con- clusions. The legislation of the State of New York, adopted as the result of the extensive and fearless investigation of this subject by the Armstrong committee of that state, should be upheld by the various states as far as possible. “In February, 1906, a conference of gov- ernors, attorneys general and insurance commissioners was held at Chicago to consider and further the adoption of uni- form insurance legislation. A committee appointed by that conference has given careful consideration to the subject since that date: its report will be before you, and I bespeak for it your most earnest consideration, “The recommendations of the commit- tee consist of seventeen proposed bills, which may be summarized as follows: “The adoption of standard policies, or at least standard provisions in all policies, so that for the future ambiguous and fraudulent policies will be unknown and open competition between the companies introduced; the abolition of the deferred dividend system, to which is traced many of the evils to which I have referred; a compuisory accounting for present sup- plies held by companies heretofore oper- ating upon the deferred dividend plan; regulation of salaries and investments. preservation of vouchers for expenditures, prohibiting of discrimination in provisions to secure complete publicity through an- nual reports are proposed as measures which, while leaving the details of the management to the officers of each com- pany, will result in fair competition. am- ple security and proper use of funds, While frequent accountings and full pub- licity will foree honest and economical management. “Section 5168 of the Revised Laws pro- vides that no person or association of persons shall enter into any pool, trust agreement, combination or understanding whatsoever with a view of restraining trade within this state, or between the people of this or any other state, or country, which would tend in any way to limit, control, or maintain, or regulate the price of any article of trade, manufacture, or use within the state, or which might in any wise prevent or limit competition in the purchase and sale thereof; and also provides a serious penalty for a violation of this section of the statute. “Although this statute has been in force and effect for several years there have been no prosecutions or punishments for violation of the law, though it is gen- erally understood and as a matter of fact positively known that combinations in violation of this statute have been ef- fected, and to such an extent as to men- ace the public ‘welfare. “I call your attention to the fact that the price of lumber of all kinds has grad- ually risen to a point where the building of homes and the use of lumber are al- most prohibited. This is not due in any great measure to tariff conditions, nor to the decreased product of lumber, but is the direct result of combinations be- tween manufacturers, jobbers, and even retailers; and While the statute provides that the attorney general and the several county attorneys shall begin and conduct actions and proceedings necessary to en- force the Breyer of this section, or that any citizen may do so, no attempt has yet been made to destroy the mo- nopolistic control of the lumber markets by those engaged in this industry. It is ssible that no amendment to the statute is necessary other than to provide more specific provisions as to the boycott and to provide machinery by which the at- torney general may institute proceedings against offenders of this ‘section of the statute. I believe that an appropriation should be made and placed in the hands of the attorney general, to procure evi- dence upon which he could base a prose- cution and enable him to carry out the provisions of the statute which is now mandatory in that he is directed to be- gin and conduct actions and proceedings necessary to enforce provisions of the statute. 7 “The attorney general advised us that the business of his office has increased many fold during the last two years. Suits are now pending directly involving more than one million dollars, and upon the successful outcome of this litigation depends a revenue to the state of many millions of dollars more. During the past two years there have been collected through the attorney general’s depart- ment upwards of $300,000. Because of the volume of the business of this de- partment, the attorney general and his as- sistants have been constantly, occupied, and have been unable to keep up with the enormous press of business. I ear- nestly recommended the enlargement of the working force of the department, and provision by which this department may employ sufficient help from time to time, which will insure the performafice of ev- ery needed duty as it should be done. “Tt is hardly necessary to call your at- tention to the need of some very impor- tant modification of our primary election Insurance. Trusts and Com- binations. law. It is urged, and not without some degree of reason, Primary Election that the present pri- mary election sys- Law. tem’ cultivates per- jury, fraud, deceit. misrepresentation, and a total disregard for our entire election system. Some radical changes should be made in the present law to overcome some of the difficulties in the way of its success- ful operation. I believe the law would improved by providing that political parties through conventions might be permitted to nominate two or more can- didates to be placed upon the election ballot, and to allow the people to choose between thse nominations. “A suggestion worthy of consideration is that nomination for the primury elec- tion. or the right of a citizen to have his name placed upon the ballot, should be by petition only. “It has been suggested that improve- ment might be had by placing all the names upon one ballot and permitting the |. voter to vote whichever ballot he chose; providing, that he must vote for the names upon one of the tickets exclusively. There are many» who advocate the ex- tension of the ee, election law so as to include state officers. While this is correct in theory, and should ultimate- ly be accomplished, I believe. that its ex- tension to state officers should be de- ferred until the law is corrected in its ap. plication to its present field of opera- tion. I would suggest the advisability of the appointment of a joint committee of the house and senate at the earliest possible moment to frame a new law and report to the legislature before the close of the session. “] desire to renew a previous sugges- tion to the legislature for legislation upon a subject which is of great interest to the werking people of the state, and & e eR | eaptiaes . descr’ as the com- Labor Legislatio mon law doctrine as to the non-liability. of a master to a servant for injuries occurring through the negligence of a fellow servant. The workman who is dependent u his daily toil for the support of his family ought not to be called upon to assume great risks we dani ‘imposed by hazardous an employe. hour attention ds invited to the suc- cess that has attended the opening of a free employment agency. under the aus- | pices of the state labor and “upon this question. to the wisdom of an expansion of such free employment agencies. “In connection with the subject of la- bor legislation, [ also wish to submit to you the desirability of gohan © we number of labor inspectors, not only for inspection of shops and factories, but for prevention of child labor and enforce- ment of the truancy laws, to the end that. there may be an inspector in each es he nine congressional districts of the state. “The subject of better highways ana of making good roads is still prominent in the public mind, and much more interest is being taken along this line than here- tofore. We have Good Roads. come. to recognize that the improve- ment of our public highways means bet- ter and more economical transportation tacilities. The amendment to the consti- tution proposed by the last legislature re- jating to this question failed of passage by reason of the failure of a large num- ber of the people of the state to vote There was some op- position to the amendment by reason of the fact that the proposed amendment imposed certain limitations upon the leg- islature. 1 trust that provision will be made for the submission to the people of another amendment to the constitu- tion, and that restrictions heretofore contained in the constitution be removed. ‘The subject of drainage is one proper for your consideration at this time. Ap- proximately 3U8,000 acres of the state holdings ot ‘30,000 acres of school and state institutional jand, which do not include 60,000 acres not yet patented to the state, are tov wet for agricultural purposes. This large area is confined to thirty counties in Northern Minnesota; 90 per cent of the land, being in Roseau, Cass, Itasca, St. Louis, Aitkin, Lake and Cook counties. With this immense area of low lands which the state is able to reclaim at a comparatively small cost, it would seem to be an excellent public policy that the most advanced methods for their recla- mation be adopted and that Minnesota co-operate with any satisfactory plan proposed by the federal government for drainage. “Lam glad to be able to say that there is in Mmnesota but one sentiment on the question of the wisdom of some plan ot drainage, and I would urge liberality in appropriations to this end. “Much of the land which has producea pine timber is available for agriculture, Drainage. but of it, from being rocky, hilly or andy, is only fit for growing timber. Nature Forestry. alone will restore # portion of the latter with pine if fires are keput out, but tne greater part of it will need to be planted. On such lind it requires on an average about sixty years for pine to grow to merchantable size, and a_ businesslike beginning of reforestation should be made without further delay. “The proper treatment of our forest resources is a matter of serious im- portance and merits your best thought. “At the last session of the legislature a law w enacted providing pensions for certain people who served in the In- dian war of 1862. The law carried an appropriation to provide for the pay- ment of the sions, but found that cause of certain restrictions compara- tively few are beneficiaries of the state’s bounty, The law should either be re- pealed or so changed as to make all who are equally deserving able to share alike. “I would call your attention to the merits of the advisory initiative and ref- erendum. This permits the people of a State, county, city, village or town to express their views upon questions af- fecting their orgin- Indian War Pen- sions. Initiative and Referendum. izations. The ad- visory initiative and referendum is but a step farther than the right of peaitca, and is not binding upon their officers. The enactment of a law providing for an ad- y initiative and referendum can be accomplished without a constitutional amendment, and I am firmly of the opin- ion that such legislation is desirable. “Public ownership of public utilities is fast becoming an accomplished fact in many of the cities and villages of the state. The ie date eo an Ls pla . .. Public opinion is Public Ownership. found in our neigh- boring State of Illi- nois in the enactment of the so-called Muller law,, which has been sustained in the courts, and applies in that state to the acquisition by municipalities of street railway properties. The idea is just and correct and its enactment in this state would undoubtedly have the effort of reg- ulating in no small measure our privately owned public utilities, if not in acquiring them for the public use. “Our state has been reasonably gen- erous in the past in dealing with and caring for the unfortunate people com- mitted: to our public institutions. It is & aie gratifying to note Public Institutions. that in some of our i institutions we have kept step with other states in the gen- eral progre: and improvement over former conditions and methods. We have not yet attained that degree of perfec- tion ‘which would satify even ourselve. to say nothing of satisfying these who | have made a scientific study of charities and corrections, “Every needed facility should be af- forded, and the various hospitals mads to conform as largely as possible to the general hospital At two of our insane hospitals dormitories are being erected, which when completed will to some extent relieve the congestion at those institutions. Provision should be made at this session of the legislature looking toward the construction of a Gorapaniod building at the Rochester hos- pital. “The board of control recommends the construction of a building for the deten- tion of the criminal insane, with nece: sary legislation to make legal commit- ments and transfers thereto, and adyo- cates a sufficient appropriation to main- tain it. This recommendation should either be followed or provision should be made at the state prison for their deten- tion there. $ “The laws intrusted to the dairy and food department for enforcement have been administered with the single pur- pose of accomplishing the ends sought i by the legfslature. Dairy and Food ‘he department has Department. been governed by the policy, first, of rigidly enforcing the laws, and second. to educate the dealer as well as the con- sumer to a realization of the necessity of complete co-operation in all efforts looking toward the sale and consumption of pure foods, and while our laws are recognized to be as fully advanced, and perhaps more so, than those of other states. there are some deficiencies and some necessity for amendment to exist- ing laws in order to make the work of this department still more effective. During the past two years the state prison twine plant has been materially enlarged, the output amounting during this period to twenty-four and a half million pounds, State Prison. which was sold at a $750,000, price amounting to while the state at the same time has made a net profit of $410,000, thus yielding during the two years a’ net profit to the state and the citizens there- of of more than $1,100,000. The past’ two years have been the most prosperous and beneficial since the twine plant was orig- inated. The product has. given general satisfaction,.and the demand is still be- yond the capacity of the plant. “In several of the states steps have al- ready been taken to exclude the lobbyist from the halls of legislation, and elemi- nate one of the greatest evils to political Scone ny and tg . ical decency. Pro- The Lobbyist. vision should be made, it seems to me, by which the current of popular will could not be turned from its proper chan- nel by representatives of private interest who desire to overcome the rights of the ublic. While it will be anpossible, per- aps, to totally prevent the vist from intrusion, it could. be accomplished to some extent by compelling corporations and individuals interested in legislatior. to register and be required to submit all arene to committees instead of to individuals.” “In your every effort to bi about a healthier and better state of govern- mental co: I pledge you the hearty an assure wel- and es er te a ee og eee rin PATENTS. List of Patents Issued Last Week by Northwestern Inventors. Reported by Lothrop & Johnson, patent lawyers, 911 Pioneer Press building, St. Paul, Minn.: Bertrand L. Field, Minneapolis, Minn., latch; Sew- ard A. Dean, Hastings, Minn., time re- corder; Halver O, Halverson, Hawley, Minn., bundle loader; Ole N/ Peterson, Canby, Minn., wagon attachment; George Scheman, Winthrop, Minn., dis- play cabinet; Herman Voigt, Sr., Wi- nona, Minn., baby-walker; Joseph Witte, Wabasha, Minn.. rail joint. Foolish Finance. “Now, dar’s Brudder Squallop!” hypercritically said old Brother Brownback. “Dat man don’t ’pear to have no mo” sens@ dan a mussiful Providence enginerly ’stows on young wheelbarroers! He beats his wife— Law-suzz! I ain’t sayin’ she don’t need it, uh-kaze she do! But dat ain’t de p’int—and de blame fool beats her so dat he has to hire a doctor for her ’most every time. What kind o’ finan- ciem’ arm dat, I axes yo’? Yessah!— what kind?”—Puck. ALMOST A SOLID SORE. Skin Disease from Birth—Fortune Spent on Her Without Benefit Cured Her with Cuticura. “IT have a cousin in Rockingham Co, who once had a skin disease from her birth until she was six years of age. Her father had spent a fortune on her to get her cured and none of the treatments did her any good. Old Dr. G—— suggested that he try the Cuticura Remedies which he did. When he commenced to use it the child was almost a solid scab. He had used it about two months and the child was well. I was there when they commenced to use your Cutt cura Remedies. I stayed that week and then returned: home and stayed two weeks and then went back and stayed with them two weeks longer, and when I went home I could hardly believe she was the same child. Her skin was as soft as a baby’s with out a scar on it. I have not seen her in seventeen years, but I have heard from her and the last time I heard from her she was well. Mrs. W. P. Ingle, Bur Ungton, N. C., June 16, 1905.” Letting Him Know the Worst. “Doctor, you may as well be fran} with me. Tell me the worst,” sai¢ the patient, nervousiy. “I can do nothing for you,” said the doctor calmly but firmly. “Nothing?” “Absolutely nothing. There’s noth ing the matter with you.” Greatly relieved, the patient wen! out in the back yard and sawed wood Safe, Sure and Speedy. No external remedy ever yet de vised has so fully and unquestionably met these three prime conditions as successfully as Allcock’s Plasters They are safe because they contais no. deleterious drugs and are manu factured upon scientific principles o! medicine. They are sure because nothing goes into them except ingre dients which are exactly adapted te the purposes for which a plaster is re quired.. They are speedy in their ac tion because their medicinal qualities go right to their work of relieving pain and restoring the natural an¢ healthy performance of the function: of muscles, nerves and skin. Allcock’s Plasters are the origina and genuine porous plasters and like most meritorious articles have beer extensively imitated, therefore always make sure and get the genuine. The Gallant Judge. Magistrate—Next case! Who've wt got now? Constable — William Tuff, alla: “Skates.” Magistrate—Ladies first. We'll have Alice Skates take the stand. Adapted to Circumstances. “What's the capaciay of your car conductor?” “Its capacity is 60, but we carr) 120.” Important to Mothers. Examine carefully every bottle of CASTORTA, safe and sureremedy for infants and children, and see that it > ete Bears the led Signatare of In Use For Over 30 Years, ‘The Kind You Have Always Bought. The Indicator. Querist—How long have they bees married, did you say?, Sneerist—Not over, two months; he still opens his morning paper on the way down town. TO CURE A COLD IN ONE DAY Take LAXATIVE BROMO Quinine Tablets. ie ny refund money if it'faiis to cure. B. ROVE'S signature is on each box. 25c, Lack. of Opportunity. “You used to be dead gone on Miss Pert.” “Yes, but I hardly ever speak to hey now.” “What is the trouble?” We're married.” _Take Garfield Tea, the Natural Laxa tive, for constipation, indigestion, liver and kidney derangements, and colds. It is medeiot bs. Guaranteed under the We A shrewd politician is one whe knows just how much the people will stand for. 5 ‘TRAPPERS’ SUPPLIES SOLD CHEAP. Write for Catalogue No. 9. N. W. Hide & Fur Co., Minneapolis, Minn, Straws show which way the min’ NEEFERTIVE PARE