The San Francisco Call. Newspaper, January 4, 1899, Page 4

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THE SAN FRANCISCO CALL, WEDNESDAY. ,JANTj'ARY 4, 1899 GOVERNOR BUDD TELLS OF THE STATE OF THE COMMONWEALTH FAREWELL WORDS F THE RETIRING EXECUTIVE Recommendations and Supgestions to the Incoming Administrafion, Comments on Public Institutions and Their Management and a Criticism of the Afairs of the Ferry Depot Following is th Budd's second bien Legislature « EXEC » and Assembly vield to my pleasure than 1 received predecessor, the Governorship ate of California. When 1 was ondition of the the task before mposed of polit- midable one. igurated the financial State was deplorable; me, with a Legisl ., was a fc er of ve er a financial cl; hod, down-at-the-heel, bor- r-to-pay-Paul poli of its de were he street—a condition of disgrace- ful at home and disastrous abroad. Its institutions were under neither sys- nor uniform laws, the filling with those not em: and deficiencies were the order of ies were pald on coyote scalps and ndigent laws made the basis.of gross ym report to report, ugmented the and the amounts be- was at loose ends; no unt was taken thereof and no inven- es given or required 3 tions of food filled the markets to the detrime State Adulterations abounded everywhere, and 1lllr laws of health were openly ig- nored. Our roads were a disgrace and building. County governments existed by permis- ¥ s there was no_‘constitutional ing them. practically shapeles had urged the crea- ission to put them a Tniversity of California _suffered | from. lack of funds and proper bulldings e been denied the Affiliated Col- had tw 1 was placed on taxation the institutions that usel people f. sprung up his was, in part, the e when 1 assumed the of this office. As I re am glad to say that all th have undergone responsibili- nquish_them conditions cha * T ATET s Of the many | | ? . | te funds there J Discussion [ four which de- | rive their revenue | of the | “in whole or'in part| | [ | lrfl{n a-tax on real | and pers | State Funds.} erty. These : BB i L 1 he universi- M + iy fund, the law provides nally | two on every hundred value in the S -is a fixed T oritinuing” appropr Th and sinking fund, which provide 5 annually for interest on 1 of 1873, held by the State in trust for the State school est on money ment fund of the univers to be raised for this fund law. 3. The State school fund. This is the | n of | fund from which the State’s port the expenses of our common schoo apportioned. i The general fund. {rom which the ordinary expenses of the tate are e paid. y three of these funds which are included in the tax levy bill and law are: 1. The interest and sinking fund. 2. The school fund. eneral fund. )T these (the interest and sink- The inor several sources of révenue, on real and person property. The amount to be raised for this “‘‘school fund” does not depend upon the action of the I lature nor of the Governor, for it is fi on the basis of each census child between the ages of 5-and expenditure is in no manner controlled by either the Leg scounts ts ard of miners portioned Y the iperinten paid out upon the Controller’s The third fund (the ger up principally from a tax on r Tty, fixed t h session of tt personal prop aw ture e fund from which appro- priations, claims against the State and ordinary ‘expenses are usually paid, The amount included in the tax levy bill for this fund determines whether = we will have high or low taxes. the interest, the funds—are termined by established conditions, It is the theory of the Government that the amounts included in the tax levy bill for that fund shall be sufficient “with on hand to pay off.all appropria- made during the session. Whether or not the amount of the ve- toed items or bills be included in the tax levy bill, the veto itself is a saving to the people, for but for it the amounts vetoed niust be paid. 2 As its name indicates, the general fund is the all important one. This has been recognized by Governors, by Treasurers and by Controllers, and the condition of this fund has excited their utmost care and solicitude, because when it is ex- hausted the credit of the State is im- paired and claims against it.go unpaid. To maintain_this fund. to pay the credit- ors of the State as their - debts accrue and to prevent the hawking of the Con- troller’s warrants on the street are things most desirable. Yet so careless has.the State been In the past, so Intent its offi- cials In straining every energy to gain what is called a low tax rate (a thing of no particular significance, unless related to a fixed valuation of property, as will be shown hereafter), that the State has, vear by year, wilifully permitted the general fund to become exhausted, and its creditors—the merchants and mechanics, All the others— university and school 15 1ccessor, the State had | i had pur- | De had pur- | Dece W arrants were at a discount on { to | uds The Controller’s estimates continued to | = 5 B the real products of the exis it was | particular time, as the State was suffering the | money spent upon them largely wasted | tress then prevailing, and to have the through Ignorance of the art of road- | State suspend payment subjected numbers t of the general funa is not unusual. rks thrived on the distress of | been exhausted, with few exceptions, ever | since the foundation of the State, but it can and should be guarded against in the | future, and I cannot impress too strongly in | upon your Excellency and the Legislature | | the necessity of so doing."” make a condition of the | a radical and permanent | cents | the fort ove: - | previous administrations and as might | should be 1 b This is the fund |ja nment other than for school | but one source of revenue | cond (the school fund) has | but | $2 the principal one is the ad valorem tax | 2 | this | funds is shown in the following table: fixed by existing laws and de- | | drawn, | ferred $300,000 to general fund; June 9, 1893, | general fund would have full text of Governor | the contractors and laborers, doing busi- i t for months with the State—to w at a time for their money, or has com- | Emud the Controller to make transfers of | d undreds of thousands of dollars annually to save its credit. === |General Fund | in State of Depletion. e was a certainty. hausted in May, again in July, 185, and so remained until mber, 1 when the first installment xes for the forty-seventh fiscal year as paid into the general treasury. This condition of affairs was the usual . Against it a previous Governor had Pprotested, the retiring State Treasurer in + _When I became Governor the bal- ance in the general fund was so small and the demands against it so large long prior to the ; commencement + my first fisca, The fund becam ear 1884 had detailed with much feeling the | r in this conduct of the State and | dishor the State Controller, in his report of De- cember 15, 1894, said: On June 9, 1%, the general fund be- | came e> ed, and at the close of the | fiscal y June 30, it had been over- drawn to the extent of $136012 06, as is hown in the foregoing summary. Cash ments were not resumed until the Ist of January following, at which time this | amount over $1,500,000.” his statement the Legislature should | ponder, for the like California having its warrants in the streets to the amount of $1500,000 at a | time is most discreditable. in December, 1893. the Controller said: of outstanding warrants spectacle of a great State This occurred Further and properly “That such a condition of affairs should at any time is to be deplored, but especially _unfortunate at that greatly from the general financial dis- of contractors, merchants and employes of the State to great inconvenience and no small pecuniary loss. This condition In 1894 the Controller was compelled to transfer of $860.000 from other funds with ich to meet the demands the a8ainst the general fund. (See Controller’s e | appendix A.) condition of the general fund my special care, and determined to remedy the evil during my term of office. Qo e Mo Ahat end T re- ing which I con- ferred with the | Replenished.| ing the appropria- tions not available T quired appropria- How the Legislature) to con- until the January tion bills (concern- Fund Was | tain a clause mak- made it clear to the following. 1 chairmen of the Finance Committees of | for which | the two houses that the tax levy bill for | seventh fiscal year must provide | of | sufficient to pay the debts, drafts and outstanding warrants of ich claims legitimately come against the fund: that a one-twenty-fourth clause 1 year and the payment of the first My requests were cheerfully followed. Two millions of appropriations made by | the I slature were vetoed, and the ex- penditures from the fund were lessened )y some half million of dollars a year by Through these matters combined, and with $427,533 less in the tax levy bill for the general fund than in the bill for the two years ending June 30, 1891, the State has been placed upon a firm cash basis. As the Controller said in his report of December 15, 1896: “The general fund is now in a most healthy condition, and should not be al- lowed to again become exhausted. As.is shown in the foregoing summary, the bal- ance in the fund on June 30 last was 37.290 10, and at writing there still re- mains a heavy balance.” And in his report of December 15, 1898, only a few days ago, he says: ‘During the two fiscal years covered by this report there hds been no deficiency in this fund. The balance on June 30, 1868, own in:the foregoing summary was 71. At this writing (December 1, AS $2.001 | 1868 there is a balance of $665,5638 06, and this will be largely increased during the present month by the incoming first in- stallation of State taxes.” Here, certainly, are changes in_ the financial affairs of the State, of great be efit 1o it, accomplished under and by this dministration. At the . same time ex- penditures from the general fund have been reduced hundreds of thousands of dollars annually. The results of attempting to comduct State on overdrafts and transfer v TAX FOR SUPPORT OF THE GOV MENT GENERAL FUND, SHOWING THE DATE EACH YEAR }lxagflil‘s'}gjh‘n(ili.\‘ifi[h\{‘ FUND WAS X JSTED, AND WHEN PAY- MENT RESUMED. £ July 1, 1889, to June 30, 1890—8$4,822970— General 'fund exhausted, August 17, 1889; resumed payment, January, 18%0; over- drawn, $042.132 48, July 1, 1890, to June 30, 1891—8$3,199,140. July 1, 1891, to June 30, 1892—$2,622.674. July 1, 1882, to June 30, 1893—$2,756,964— General fund exhausted, October 14, 1892; resumed payment, December, 1892; cver. $350.758 77; April 11, 1893, trans- general fund exhausted, July 1, 1863, to June 30, 1894—$4.262,25 Resumed payment, December, 1863; over- drawn. $1.611,754 63; April 10, 1894, general fund exhausted. uly 1. 150, to June 30, 1895, $3,312,.920— Resumed payment, May, 1884, Overdrawn, $45,028 88. "On September 1, 1891, trans. | ferred from other funds to general fund $710.000, and again on November 6, 1894, an additional $150,000, in order to carry the %eneral fund on a paying basis until the ecember settlements of that year. But for this action the fund would have been exhausted on September 7, and before payments could have been resumed the en overdrawn 1896, 34,913,105 to_the extent of about July 1, 18%, to June 0, sumed drawn, 563 32 of available first half of the fiscal year 18 pro; eral expired, about January 1, 1891, $125,019 82, mont 1 month of December, 1884, months in office $3,180,197 91, being the tire tax levy of which he months he se he rece term, $15, the for that its exhaustion | of | ex- | It became exhausted | legislative periods and by year: as the overdrafts or the immense trans- | fers necessary to make the appropriation sufficient. Receipts From All Sources Into Gen- was | It has | most ceipts. ie' matter was so serious that T made | incr in_ fa $1,765,816 99. ures eficiencies, | and not dedu er four yea inserted in the general appro- | priation act to prevent deficiencies in the | future, and that a sufficient fund and university fund, and for inter- | be provided to leave a balance with which | belonging' o the endow- | t0 pay demands between the beginning of The amount | a fi s also fixed by | installment of taxes. irplus must | ought to include, as they buildings made spe Fund, ¢ Paid by this ceding administration. General fund exhausted July 22, 1895. Re- payment December, “18%. Over- 928,973 1. July 1, 1896, to June 30, 1897, §2,681371— s‘;‘g, Overdrafts. Amount in general fund, Amount in general fund, July 1, 1888, to June 30, 1899, $2,563,602— No overdrafts. January 1, 1899, amount in State Treas- ury to credit of general fund, $2,184,189 23, The balance on January 1, 1865, was only $1.145,016 34. Against which appropriations (de- mands), not including the estimated ex- pengditures for orphans, indigents, etc. (Controller Colgan’s letter of March 11, 1895, Appendix B.) Nor were the debts, de- ficiencies, etc., of the past included. | the entire Governor terman durlnf rom July 1, , to January 1, 1891, received from erty taxes only $187,218 94 in the gen- fund, and left therein when his term to which was added during the month of January, 1891, the first month of Governor Markham's term, the sum of $1,819.711 57, which makes $1,944,731 39, the true balance chargeable to Governor Markham. P — 4 _The law_provid- | ! ing tfcvrr the pa{- ment of taxes in IEffeCt of the two 1I|Sl€l\m&nl§ did not take effec ! Change ] until July | am | in the Law. | M, A | paid into_the gen- % arall funQiifonathe entire year covered by the last six months of Governor Waterman's, and the | first six months of his own administra- the taxes for the last six rved, which were paid in the By reason of this law he reccived during his first six t yes and s as_al s he tion, for the full forty- erved but six months, 1 for the last , making, with the taxes during the other years of his the sum of $2 ved Since my first fiscal year the amount of the tax levy bill for the General Fund has been smaller than for r-third fiscal year. The causes of the small of that vear's fund are stated in Controller's report of 1882 The the n the tempt to make the tax levy bill for fourth fiscal forty-third and forty. years low was followed by which might have been f that the General Fund in 18 overdrawn and exhausted to the exten of $1971,113 00, a condition commented on by the Controller in his report of 1834 as most deplorable and leaving the creditors of the State to hawk their warrants on the public streets. (See Controller’s let- ter of December 8, 1897, appended; also Controller’s i he tax bill of 1895 for the General Fund was nearly half a million dollars less than the tax levy bill for the same fund for the (‘\"u years ending June 30, 1891. The tax levy bill for the last two years f my admini ation for this fund is r\._‘ 7 .\ur less than for any preceding period during eight years. The appendix shows the levy for this fund during the periods from July 1, 1891, to and including June 30, 1899,.both by as well eral Fund. Js v 1, 1891, to January 1, 1895.815,046 958 | Jgfl::g:\ 1, 1895, to January 1, 1899. 14,188,245 Difference .. $1,858,713 Or nearly two million dollars less re- celved into this fund during this than during - the preceding administration. (Balances not included for reasons given above, and because the balance turned over by me to Governor Gage is far great- er than that turned over to me by my predecessor, and it is not mortgaged to ch an extent.) s’\ll‘(hlr“ Teceipts in which the taxpayer 1s deeply interested are the tax re- Hence I give them separately. Tax Receipts 1891 to 1809. . 1, 1895, total o e i al 532,763 51 | $1; 3 illion and a half less during o rm((‘fmlr years, notwithstanding the From January 1, + 1891, loh Januaryml. - 1895, the expendi- Eight Years | % “'from’ the General Fund were of $15,025,961 06. _From 5 January 1, 18%, to Disbursing. | January 1, 1899, the expenditures from the General Fund less expenditures administration by avor of this This is shown by the Controller’s fig- ppendix D; titutions and inmates thereof, ing any debts of the form- early two million dollars creased in less. tration include the Affili- nd other buildings. the the previous four do not, certain constructed from taX funds tal and thus prevented from be- subject to drafts on the General ting in all $385,000 00. to arrive at a true difference etween the cost of the previous admin- Ih&’(«[x‘.‘mkon and this, from this fund, we must deduct from this administratior the nt it pald for the former one, AN he former one the debts paid for it by this. ; ing and assuming the least pos- e "o d'r:xrgi expenditure for deduction penditures for ing In order Expenditures_January 1, 1891, to January 1, 9 $15,025,961 06 for 1,000,000 00 istration Total $16,025,961 06 Expenditures ll}) January 1, 1899 Deducting for expen past administrations Total $12,257,144 07 s making the cost from the general fu?llv’lluprg;)"rlygcha eable to this adminis- tration $3,768,%96 19 less than for the pre- 1 give in appendix D by vears and half yoargs\the Controller’s figures for the ex- penditures from this fund. 3 Should we include buildings above men- tioned, the difference would be oVver $4,- 000,000 Balances in General Fund at End of Each Year. Jances on hand in this fund at the b(:l;;‘lln:?ng of each of the fiscal years for several years past have been: Overdrawn. Balance. June 30, 1894 777,062 00 vor Yhe year ending ity ume B, AT 2,232,727 00 Fg: r(‘leleso);elnsgsendlng A8 'r]r:lr;lteeds;" T deats 2,000,000 00 The balance was $227,247 at the begin- ning of my first fiscal year. Since then it has been yearly over two million dol- lars. Nor has there been a single de- ficiency in the general fund since Decem- ber, 1895. And the balance at the begin- ning of gmgveinoll'd(}t;lexe's flrs’z‘oé‘o’&o%l year, July 1, 1899, shoul over $2,000,000, .y———Q With the Gover- nor and both branches of the Legislature of the same political faith it will be easy to keep this large bal- ance in the general fund and to main- tain the credit of the State as we have established it. But if either endeavor to economize by Easy to Save the State Credit. 1, 1597, to June 30, 1898, $2,553,602— | No overdrafts. $2,001,093. was $1,766,- any year since | report of December 15, 1804) | during | fund, $250,000! improvements of our chan- nels and rivers, $300.000; the establishment e of State institutions, payment of past debts, deficiencies, etc. | i. e., there was expend- | ed auring the past four years, with its in- But as the expenditures from this fund | o for this admini ated College years Legi lessening the amount of the school fund apportionment, it will have to be done by reducing the amount to be raised each year for each school census child, a crip- | pling of the schools and a reduction of | the salaries of the teachers. proposition that has been advanced here- nor tofore, but has not found favor, should it. The number of State Institutions and inmates maintained during the past four Years largely exceed those maintained in as the following table former years, shows: Average Institutions. Population. 1889 1 5479 1590- 13 6536 1894 16 7175 189 Asalt 8078 Thus, with more administrations. The laws of this State make the Con- troller its bookkeeper and_the superin- His functions and responsibilities are greater than those ex- cepted, and his recommendations are en- tendent of its finances. of any other officer, the Governor titled to the most profound consideration. 1t is largely because of the lack of con- sideration given to the recommendations of Controllers that the affairs of this State, during the eight years preceding this administration, became so tangled and expensive, and the deficiencies of the general fund so great. While the State has now been established on a cash basis and there is a very large sum in the gen- eral fund, it may be easily dissipated if the present legislators disregard the Con- troller's recommendations. To show to Wwhat extent his estimate of the expenses of the government has been ignored, I call your attention to the following brief able: Estimated. Tax Levy. December, 1888—For two Vears ending June, 1891.§4,144,520 00 $8,022,010 December, 1590—For two years ending June, 1593. 4,332,870 00 5,379,638 December, 1882—For tw: years ending June, 1895. 5,660,880 00 7, December, 184—For tw. years ending June, 1897. 7,076,068 68 7,504,477 December, 18%—For two years ending June, 1899. 6,027,164 16 5,107,204 The estimate for 1896 (after 1 had been in office two years) was less by over a million dollars than the estimate of 1894, and the tax levy law cut this down b; nearly a million” more. It was the fi reduction in the estimate since 1888, al though the State is now on a cash basis and has more institutions and many more wards to maintain. In accordance with my avowed Veto Saved | policy, I have ve- toed a large num- | Over ber of appropria tionbillsand item: This was necessary Four Million.| o keep the ex. | penses of the State within a certain limit, to provide for proper past claims, to place the State on a cash ba: and to prevent the constant exhaustion | of the general fund. ‘While the veto of items may or may not have been included in the tax levy bill, still each appropriation, and each item—had it been allowed—would finally have become a claim agalnst the treasury and been paid by a tax upon the people. The vetoes for the sessfons of 1895 and 1897, inclusive, amounted to $4,421,216 73, of | which four millions is a saving to the people. Yet when we consider the liberality with which appropriations have been allowed this ~ administration—the debris of a normal school at San Diego, addi- tlonal buildings elsewhere, a university tax of 2 cents in place of 1, and an in- crease of revenue sufficient to place the State on a cash basis and pay off the deficlencies and debts of previous admin- istrations—it cannot be claimed that the veto power was too severely used, al- thou the amounts exceeded the com- bined vetoes of all other Governors of the State of California. This saving of over four millions of dol- lars by vetoes in two sessions, or, an amount sufficient to conduct the ordi- nary expenses of the State, other than schools, for one full year, is a matter of no little satisfaction to myself, and of ma- terial benefit to the taxpayers of the | State. | At the close of each session of the Leg- islature, and usually upon the last day, it passes what is known as the tax levy bill. This bill provides that the Board of Equalization shall raise: For the general fund a certain amount named; for the in- terest and sinking fund a certain amount named; for the school fund a certain amount named. It further provides that 5 per cent shall be allowed for defaults. | The theory of our government is that the tax levy shall raise a sufficient amount ;r;nr'\:y the (nir(ti{]nary expenses of the gov- ent an e appropria: £ y the Legislature, P atons miedle by Appropriation bills do not usually pro- vide for raising the amount appropriated, but they direct that such sums shall be paid from any moneys “in tae general und not otherwise appropriated.” Usu. 1 ly appropriations have been lar~ cess of the amount of the tax levy « w. This is a viclous practice. It requires the Governor to eitner use the veto power libe erally, or allow of appropriation: exhaust avaLume mon. y. To stop such condition n the burdens of the taxnay o ‘ulllwnrd of $4,421,216 73, nd I also by special message of Mare! 20, 1897, demanded a r(-dlu‘liong of thrlh’;.}(‘ levy Dbill, stating that unless reduced it would be vetoed by me, and in this man- ner saved nearly one million of dollars. ‘When the tax levy bill is pending the ature and the Executive calculate a tax levy of 80 many cents upon the hun dred dollars, assuming that the valuation of property in a growing State will not fall. he tax rate, however, is a matter with which the Legislature has little to do, although a high rate {s always charged against it as a sin of commission. ;I:‘gaati?x “rule lsdfl‘)it?dd by the Board of zation, and fixed lar; = HaasuEatian;e gely In an arbi — 4 vémrmr;’gl th: four 'ars prior to my Sudden Drop inauguration, the value of property of in California was fixed by the Board o Valuations. A o never less for any one year than $1,- 200,000,000 (See Con- troller’s report for 1896.) Yet the first year after my inaugurafion the board dropped the valuation to $1,133,282,013, in consequence of which the rate per one hundred dollars of valuation was 68 cents, though under the least valuation for the preceding four years it would have been much lower than this. The year following, owing to differences in the'board, the valuation was restored to its normal figure, being $1,266,593,065, and the tax rates sunk to 42.9 cents on the one hundred dollars, the lowest tax rate ever reached in the.State of California. The following vear the valuation of property was dropped again, and the rate forced 1o 51 cents upon the one hundred dollars, This year certain members of the Board of Equalization telegraphed to Boards of Supervisors sugesting they ask for a re- duction in the valuation in their counties, and many countles were reduced. This kind_of equalization is very injurious to the State. A high tax rate is injurious to any State because people abroad, seeking invest- ment, ask the rate, and do not understand the causes that have led a Board of Equalization to play battledore and shut- tlecock with State values. They do not understand the combinations of equaliz- ers. They do understand, however, that the constant shrinkage of values would ordinarily indicate a retrograding instead of a progressing State, and that low tax lrntcs destroy property as a basls for oans. The amount provided to be raised for the forty-ninth nsualfi‘eu by the tax levy law was_ $5,010,000. e tax rate was 51 cents. The amount provided by the same law to be raised for the fiftleth fiscal year is 85,010,000, exactly the same as that for the forty-ninth fiscal year, and yet the tax rate is 48.8 cents. “Thus to raise the same amount, a chnnfie of value makes a difference of 2.2 cents in the tax rate. I hope the L?flslature may find some means of correcting this evil. I desire, in passing, to state that the amounts of the last three tax levy bills are over a million three hundred thousand dollars less than the pledge of my party. On this subject I call attention to my former recommendation: “To equally and fairly provide for and This is a | Institutions and more | inmates, the general cost to the State has been much less than during the former | showu by a reference to s | tates in California, and by comparison of | the appraised value of this class of pron- | erty with its assessed valuation for taxa- | personal | estate | praisement of personality was $11,945,205 30, | as against an assessed valuation of $188,- | tional collect the revenue necessary for the sup- port of the Government is always the | most serious duty of the State. The bur- | den of taxation so easily falls upon the " material and tangible things, the real and the tendency is to levy upon suc erty-holding class an unjust share of taxation. Another numerous class of our | people, in addition to such property, and | often almost exclusive of it, are granted |and enjoy under our laws an ex- | tremely valuable possession in the nature nities. Such corporate advantages are always beneficial, and often the source of great profit. This class of property is very difficult to assess or value, and it | generally fails to contribute its just share of revenue for the support of that gov- | ernment by tae sanction of which alone | it enjoys its existence. Our constitution | makers undoubtedly contemplated that this class should be taxed for the benefit of the State. I would, therefore, recom- mend that, under section 11, article XIII, of the constitut.on, you formulate and im- ose upon _all corporations in this a or profit a gradu- ated income tax, so adjusted that they be required to pay only such sums as are | strictly Just and fair, and that equal jus- | tice be done among them.” 4———————+4 The deeper one investigates the Tax System | more he is Must Be pressed with the Remodeled. need for some change in our sys- tem of taxation, and the sooner po- litlcal parties make their ~State cam- paigns solely on State fssues and matters of local concern during an elec- tion for State officers, the sooner will the matter be solved. The extent to which personal proverty of a peculiar kind escapes taxation is venty-one es- tion. One decedent paid taxes on $19,729 of property, whereas his personal was appraised shortly afterward $6,684,914 28. Another paid taxes on 75, while his estate was appraised K at | $5875 | $1,492,209 82, And of the seventy-one estates the ap- 414, and nearly a million of the personal- ity escaped assessment entirely. There are two States in the Union—New Jersey and Pennsylvanta—which do not tax lands or the improvements thereon at all for State purposes; their taxation laws have been in operation for many years and have stood the tests of State and na- courts. They place the burden where it belongs. This is the most important board of the State. Under its eye must pass every item of expenditure from the general fund, ex- cept those of the National Guard. A hurried glance at the proceedings be- fore any Board of Examiners during the past eight years will prove the import- ance of this body. S ey One oENTno N et acts of this admin- Power of the ation was to en- d avor to have passed a bill en- Board of el e of this board. The Examiners. | bill p d the House, but was de- feated' in the Sen- | ate. 1 succeeded, however, having grafted upon the general appropriation bill a clause known as the ‘‘one-twenty- fourth clause,” by which all institutions and departments, unless excepted there- from expressly, should expend one-twen- ty-fourth part on. of the two years' ap- propriation during any one month. This gave to the beard absolute control over these expenditures, and concerning the e the report of the present board in 'Section 4—General appropriation and the one-twenty-fourth proviso: In years rior to the adoption of the one-twenty- ourth clause, State institutions frequently overdrew their accounts, and toward the end of the fiscal year the Board of ix- aminers would be gompelled to grant them deficiences, as prisons arnd insane asylums | could not be closed and inmates turned | out. These grants ranged from five thou- sand to ninety thousand dollars for each | ar not one institution | institution. This 3 asked for a deficiency, as the board kep strict watch on their monthly demands and they kept within their limit. Thg session of 1865 allowed over one hundred thousand dollars deficlencies to institutions alone, not including officers. This year not a single institution has a plied for a deficiency. The financial con- dition of State institutions in this regard from the forty-fifth to the fiftieth year is shown in the folowing table: fiscal years endin 1 Agnews an For_the two $ 19,992 15 80,230 96 At the present ra saved for the forty -ninth and fiftieth fiscal years ending June 30, 1899 .. 60,877 81 A total saving of $161,100 92 The board has passed on claims amount- ing to 37,519, has _rejected claims amounting to §46,840 79; has cut off claims 1d_items amounting to $1 beir a total saving of $14 d two years, not Including the s fic s.” And if we take the di ances of the Board of Examiners > two previous years ending December, 1896, it makes a total of rejections of $85.769 29 during the four years.” I commend ful perusal of these reports of this bos o et o e T malket the, 1o 1 lowing recommend- i ations: {FSugpestions |88 ¢ e i Made should riot be com pelled to serve as for Reforms.| { ers, but if the Leg- 1slfllur0h must consist of them. {R:tofl!l‘cers should be the Controller, the Secretary of State and the Governor. The one State officer who might, in any case, advantageously serve on the hoard is the Controller, because of his position as su- perintendent of finance. I would recommend that the Governor and two State officers, to be designated by him, shall constitute a Central State Board, with full powers to advertise, and let contracts, for all State supplies, with the right of accepting all bids or any parts thereof, for —ome Jjor all of them. That all State buildings, If cost s to succeed the sum of $5000, be planned and constructed under the provisions of an act with all the guarding clauses of the building act of 1876, the Governor and other members of the board to be the officers who shall ap- prove the plans and specifications thereof ‘and changes therein, and they shall also finally approve the letting of any contract to any bidder for the construction of said builaing or any part thereof. The Ferry Building. In this connection I wish to state that the San Francisco Board of Harbor Com- missioners have not acted under the act of 1876. In 189 I endeavored as Governor to have the Harbor Commissioners pro- ceed under said act, and urged that they do so. The Attorney General of the State, W. F. Fitzgerald, also gave his opinion that the act of 1876 was the one under which they should proceed. They refused to comply with the act of 1876, either as to the original plans or the specifications thereof. As Governor, I further objected to members of the board expending on that bullding, foundation and superstruc- ture an amount in excess of $600,000, which I deemed the full amount contemplated by the people for that purpose. Acting under legal advice, the then board, not being of my appointees, again failed to comply with my desires, and the Harbor building, foundations and superstructure were contracted for and constructed at a cost of about $1,000,000, and not in any manner under the act of 1876. I hrought the matter to the attention of the Legis- lature in my biennial of 1897, but it de- clined to interfere with the actiqn of the hoard (which was not of my appointment) or to change the laws. Modifications of the original plans were made by a resolu- tion of the board in January, 1897, which modifications are the basis of the changes | made thereafter. The construction of this | building from the time it was authorized | by law to the time it was completed was done in direct disregard and opposition to my opinion, expressed to the Commission- personal property of a community, tnat | prop- | of corporate rights, privileges and immu- | im- | | and should this Legislature impose on the | State the contagiou | be made to apply in ca tion of this class San_Francisco City 1 call attention to the v isl ers themselves and to the Legislature of A A ounty. Alms- the State of California. + This proposed | house, under the supervision of Captain central ~ board|E. A Reddy, where the inmates, averag- should also have | ing 961, cost but 20 9-10 cents pe , in- ABaardito U SR S L e ard numerous. Fi | late the salaries, | and valuable improvements which have x wages and number | been made for the benefit and welfare of : of employes of all | the city’s wards. All Salaries. | §tate institutions, | I eall attention to recommendations on \ and it should be re- | this subject in my first biennial, as I be- MR T lieve the State should be conducted on quired to equalize such wages so that equal services shall business principles. recelve equal pay by those employed in| $——————4 This mfm‘.‘f’fln conducting the State's business. It can-| | 7 L e not be done now because there is no cen- Praise for avored, during the tral board with full powers, and the local P e oy pressure is often too great for the local the jae b officials to withstand. In this connection, L e e 1 trs I desire to say that I appealed to the University. | Legislature passed Legislature in my biennial message to an act appropriat- permit the State Board of E: hers tojfig -t St | —+ ing $250000 for the limit the number of employes on _the nstruction of Affiliated College build=- water front of San Francisco and to|firstruction of Afiiliated 'College build- 1 recognized that | a Democratic Board turned the of- ssors they had regulate their wages. when, in March, 18 of Harbor Commissioner: fices over to their succ ficent one, w Sutro, anc¢ erected and calling on t donated by the late Mayor eries of buildings have been ned without the Regents State for one dollar beyond ed for the State and there was in the | the actual appropriation, the Regents sury the sum of $190,000, and that such | having regarded the request of the exec- s which had formerly been col-| utive that the construction be under the. lected would not be saved under the sys- tem in vogue. The Legislature again re- fused to allow the Board of Examiners provisions of the building act of 1876. The liberality of the Legislature is ap=, - preciated by the people of this State. It to interfere with the employes of the Re- | was a proud occasion when one of the publican Harbor Commissioners, as they | first graduates of the University of Calie had done two years before. fornia, could, as its Governor, sign such A a law, and, as president of its Regents, Uniform Bookkeeping. sist’in putting it into- effect. Besides This central board should have the the session of 1897, finding the uni- power of adopting a uniform system of | versity crippled for funds, passed a hill| bookkeeping for the institutions of the | providing that 2 cents should be raised: State. forms. The central board should 1t is one of our most needed re-| for the university in place of the 1 cent. | it had had before. This bill passed unani=! be given en-| mously, and, where so many aided man- of inquiry, general and | fully in the 'good cause, it would be im= orial powers over all the institu- | possible to give special credit, but—as tions of the State, and appellate powers | every member of the - Legislature will i with which the over the action of any board. The Legis- | recognize—the u 3 due to the ef- lature will recognize, as I said in my in- | bill was p s largely augural, that the Governor is held re-| forts of Assemblyman Wright of Alameéda. sponsible in the eve of the people for the | Sincé these two generous acts fhe strides conduct of the State, and especially of his | of the university have been powerful, and appointees, and therefore should .have | with the new vigor instilled and the some power over them. | younger blood to be infused, we may ex- a fact that it is the duty of | pect this institution, so long conducted Legislature to legislate for and of | with such care and propriety, soon to ecutive branch of the government | take its place among the great universi~ to carry on its institutions, and the | ties of the world. I or its material, sooner this is clearly considered and de- | tematic and harmonious growth we fined the better for the State it will be in many respects. re! are largely indebted to our private citizens. | In the name of the State I desire to People who, 1o | publicly thank Mrs. Phebe Hearst, Miesi | profit _themselves, | Jennie Flood, Louis Sloss, the Alaska Seal Punishment | send fruit or wine | Company and others for their munificent o gifts to this great institution during my for All of the State abr administration. Craenios e Our Tormal Schools. Adulterators. | terated condition, | Our normal work has greatly improved A should be most se- | under the new laws. Each institution is 4 verely * pupished. | The frult products of this State have | advanced within the last few years be- yond all hope of home consumption; and unless a foreign market can be obtained the trees or vines, as the case may be, will have to be cut down and the lands used for other purpose At a meeting of the Board of Regents on the 13th of last December, one of ite most careful and conservative members Regent Hallidle, stated that of our fruits shipped abroad much was infested with scale, and for these reasons was rejected. If publications be correct, the markets of the Old World are being closed against us by reason of this same lack of care, better and stronger than ever before, and its attendance much larger. The presi- dents all commend the new law, which has enabled them to work in so much unison and to such great advantage. I cannot better express my opinion on this subject than in the language of the re= poris herewith transmitted. The State Prisons. For the reasons stated in my biennial, the State prisons should be consolidated. The Legislature should close San Quen- tin, enlarge Folsom and turn one of our reform schools into a prison for first- termers. In any event, one of our reform schools should be turned into a prison for or worse, on the part of our shippers. | first-termers, work given. to fit them for Within_the last month a report came | honest employment, and 10 per cent of from Mex of the seizure of California | their earnings laid aside with which to wines because of their injurious adultera- tion. When the battleship Wisconsin launched in San Francisco recently a prejudice against our wine made itself | start in life when their terms have ex- | pired. { The ‘long sen- tences prevalent in w manifest, as the people from the East who | this State are mat- A R T e CEIE BRI s it foreign production. 2 e demnation. ~ The Ax[ éhde rPeucc };Iul?]llee ouE 1wmels “l’”? gx{lac(k-e not]only excluded from the list. During the las s our prisons, session of the Legislature a_pure wine Too Long. | but shuts out hops law bill was passed, which I could not approve because of its manifest imperfec- tions. I wbuld recommend that a law be enacted making it a felony or a mis- demeanor—in the discretion of the trial court—for any person to ship to a foreign market, either intentionally or through criminal negligence, diseased fruits or adulterated wine or food. No improvement can be made on the pure food law of March 26, 1895. The law is short and comprehensiv It has ac- complished great good since its passage, from the offenders. #——————+ When we. make a comparfson with other States of the KING OF ALL. That is loud praise, but the great specific for all kinds of nervous debility that is owned alone by the celebrated doctors of the Hudson Medical Institute deserves to be called King, for it is State and local Boards of Health the e forcement of the same it will accompl all t can be desired by the most en- thusiastic advocates of food reguiations. g Your honorable | 8ll-conquering. It's known as ‘“Hud- body should cer-|vyan,” and as well as being so strong 1 Quarantine tainly consider the |and swift in action it is perfectly harm- passage of some | less. g o Toper quarantine Law faw'tor cattle. Tthis subject has been the cause of much hard work on the part of State offi- Twice have eminent for Cattle. T0-DAY cials and boards. physicians been sent to Washington, D. Dy the hope of bettering our condition, g Twice it has been necessary to request | You may be a weak, half-paralyzed District Attorneys to enforce strictly the criminal statute of 1863, and almost con- stantly the executive of the State, or the crefary of State Board of Health, has been engaged in_correspondence and in- vestigations on the The present quarantine is insufficient. Under the opinion_of the General of this se fund is plicable to contagious or infecti eases of human beings onl, be passed giving full power to the St Board of Health to employ as ance as may be neces , and the mon- eys in the contagious d e fund should of cattle quar- antine in the same manner and to the same extent that they now do in cases of human querantine. The De mortal, shivering, blue and fit to fall' in the street, but this grand remedy can do what no other remedy can—stop the mischief in a month. Drains do cease in ten days—indeed they DO— and life, light and full, unutterable joy come back like sunshine after rain. Try it at once, and then you will be one more voice added to those who sin e | “The only thing ¢ IS HUDYAN.” ment of Agriculture has re- lieved our condition. s those of the St The qua 5 ryin,,—‘ (‘.En(l en L’hhngede‘ You have but to write to the Institute or call there and you will be given convincing proof of what this grandest of all remedies can do. Write for cir- culars. If you suffer from any form of blood poisoning the. “30-day blood cure” will be found to be as firm and | true a friend to you as is “Hudyan.” The great doctors give their advice free, too, and as you surely want to live act wisely and act to-day. but we have no proper 1&ws to protect these lines. During the dry season I was compelled to appeal to the Governors of other States for permission to transport and feed inspected cattle in their States. Had the cattlemen of California seen the necessity _for action in this matter sooner and alded the efforts of the exec- utive to secure the passage of a proper law as recommended, they would not have suffered so severely during the last drIy season. i t may seem pecullar that a State which has spent on a,sgrlcuxtural societies within a few years $1,034,220 shouid not have on the statute books a proper law to protect its cattle, horses, sheep or other animals or fowis, yet such is the fact, and under the law public funds can- not be directly used for such protection. During this administration the subject | of health has been much discussed in the | State, owing to the passage of pure food | laws by the Legislature, 'HUDSON MEDICAL INSTITUTE, Stockton, Market and Ellis Sts., SAN FRANCISCO, CAL. fOC000000D000000R0 and the energet- D ic and untiring efforts of the Sq An- ™E cisco Board of Health, which has sstab- | © PALA CE AZ‘PG lished and enforced the best sanitary reg- ulations in that ecity. | SGRAND Horsl.s:‘ 4+———4 I again call at 5 tention to the nui-| @ SAN FRANCISCO. The Folsom | sance at Folsom, | Comnected by u covered passageway, < O i The State Board | © 1400 Rooms—a00 With Bath Attached. @ Prison of Health has pro- | @ All Under One Management. -] nounced against it | g NOTE THE PRIOES: a Nuisance. o A p Surcpoen Plln.‘}l.m per day and upward on to the un-|D American Plan $3.00 per day and upward G h;:allh_\‘ condition ° Correspondence Boilcited. a £ o ezen Tha e © JOEN 0. RIREPATRIOR, Mansgsr, : {p Provide means to - rémeiy the o, tooaeooocoaoooaoa.g A deficien- though it was recommendes cy was allowed in June, 189, by the State | Board of Bxaminers for this purpose. It has not been used, as the board pre- Use and forred to lay the malter botore the Legls- Feclal S ature. s evil should he remedied, for there Is no reason why the. waiere of | | 90 oee Faclal Cream. stream from which the people of the cap- ital pump water for domestic purposes should be polluted in this manner. Prior to 188, there were in C: but eleven State institutions. The popu- | lation of these was but 5479. With inex- | ensive additions to the buildings and a l"ewdr‘n?ire ;’.l\tmndams x,he State CII““d have 47 andled the natural increase of inmates ” for twenty years. The Legislature passed | Has "mos.le?l::: sEu aCHOOp g laws increasing the asylums from three | home at Menlo Bark, Saa erie, O.Jt8 new to five, although it had been reported two | credited, and prepares boys. equalie il 55 years previous by the superintendent of | business; next term begins Ja.nunr)‘ylsr'h! 1‘“ the Stockton Asylum that that institu- RA G. HOITT. Pn. D, Principar " tion had] carried nr‘; its tre‘cord% for many | 23 years a large number of inmates not en- 7 fitled to admission thereto. If we must | -NEW WESTERN HOTEL, retain this class in State institutions it | J{BAKNY AND WASHINGTON sTS._RE. should be in one not designated as an in- | co, "pacicd and renovated. KING, WARD & Age, Illness, Care canse Wrinkles. Derma- | tologist JOHN H. WOODBURY, 127 West 424 st., N. Y., 163 State st., Chicago, has had over 26 years' practical experience removing Wrine kles, Crow's Feet, etc. No pain. g European_plan. sane asylum. : As an _example of economical and ef- | b i% 8 week ficient management of a public institu- | room; ele

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