Indianapolis Times, Volume 33, Number 206, Indianapolis, Marion County, 6 January 1921 — Page 4

TEXT OF GOV. GOODRICH'S MESSAGE TO GENERAL ASSEMBLE

Governor Goodrich's farewell message to the Legislature, which he delivered today at a joint session of the House md Senate, is as follows: Ladies and Gentlemen of the General Assembly: "Let not him that girdeth on his harness boast himself, but he that pntteth '.t off." Under our Constitution, it is the duty at the outgoing Governor to lay before the General Assembly an account of the condition of the State, together with such recommendations as he may conclude to be in the public interest. The administration covered the World War period and the beginning of the more trying readjustments following the war. At its beginning, affairs not only In the State, but in the Nation were al ready unsettle! by the war in which all civilized nations of the world, except our own, were engaged. At that time it was thought that we would not finally become involved in the war. The General Assembly in 1917, therefore, made no provision to meet the unusual conditions created by our becoming a party to the war. The rise in prices, the scarcity of labor snd Its high cost and efficiency, the shortage of cars and the congestion of the transportation lines in the country, made it impossible correctly to estimate the exact needs of the various State institutions. To meet this situation, the General Assembly of 1917 created, for the first time, what was known as the emergency contingent fund to be expended by the Governor for the purpose of meeting any ] deficits in the operation of the various State institutions. This fund was again created by the General Assembly of 1919 and provision was made at the special session of 1920 to meet the deficit in the current appropriations of the State institutions. Os this 1917 fund $142,961.30 was used to meet the current deficit of the fiscal year ending Sept. 30, 1917, and the following amounts were used ejeh year thereafter down to the close of the fiscal year ending Sept. 30 last: For the year ending Sept. 30, 1918 $207,038.70 For the year ending Sept. 30, 1919 ...r 306,000.00 7‘qr the year ending Sept. 30, 1920 156.307.98 The full effect of rising prices was not felt until 1919-20. When the General Assembly met in 1919, convinced that prices would decline, again it failed to make sufficient appropriations to maintain the various State institutions. Prices, instead of declining rapidly, advanced *nd reached their highest point in the spring of 1920. On account of the unsettled condition it was not thought advisable during the war and the period immediately following to embark on any new construction i not imperatively demanded. The activities of this administration i have been directed, therefore, along other lines than that of new construction work. The only new buildings that have been ; added to the various State Institutions I during the past four years hav e been the construction of the boys' group and part of the woman’s group at the Kpiiep tie village; farm colonies at the Pastern and Southeastern Hospitals for the Insane and the new buildings at the Reformatory and the Feeble-Minded Colony. Taking advantage of the low mice of land in 1917, and again in 1919, at the request of the executive, the General Assembly placed under the control of the Governor and the legislative committee i a fund for the purchase of real estate j and for making extraordinary improvements that might be needed by the various institutions.

-6.175 ACKES OF LAND BOUGHT. Acting under this authority, there has been purchased for the State during the past tour years 5.175 acres of land at a cost of $571,808. The real estate is worth today at least one million dollars. This legislation has justified every expectation ‘ of those who proposed it. Under the old i plan, a specific appropriation to purchase real estate, was notice to every owner of real estate in the neighborhood of the Institution tnat the State was in the marafi, , land The reslll t wa that it was difficult to purchase land at a fair price. Under the plan adopted during the past four years, it has been possible £- r * b<3 executive, with the concurrence of the committee, to exercise the same judgment and freedom of action in the that a PP !ie3 to an individual in his own private Interest. it will not be necessary in the future to purchase much additional real estate for Mate institutions. Several of theta however will need to make such p •£tlriU£! r tbe prup ° r extensiou of their at l lea hr &r^?? m T nd , tbat a fund of Os ihL , ***>’<*>' be placed at the disposal miHe f^’ri UVe “ nd the legislative com- !? £ r .SS CE *”■*> U ° T na Complete the present fiscal year WHnt li en^ IS {, r ' K price * dua t 0 the If.ii. j un eud * however. Prices have 2on < Vh than i°# per <ent within the Sndoub X tedly n Le!o?e nd ns fUrther decK “ ea are turn ‘to !, er7 ‘“Portant that we should relur1 ur pre "Waf policy of living withthe appropriations made. Deficiency appropriations invite deficits. Emergency funda to meet deficits encourge extravagance. Appropriations suffiIMtirtiaMhl institutions and depurtld a be made and then it should K>™to 0 d most clearly that the law ietter b tLUg deflcits must be obeyed to the „.4. Fhincc at the large deficits in other JXPV th * hoe® deficits at Washington, wit* the disregard of legislative Umitatioa on expenditure and the attendant extravagance, should impel us to return onr Pre w ar policy of living within the appropriations made. The State tax lev7 was reduced in 1917 ' ents up ? n the hundred dollars to KLBS cents and to 13 cents la 1919 It was increased to 20 cents in 1920 on account of the State colleges and the soldlers memorial. Even with the lncreaseu valuation of property th~re has been collected from the taxpayers of the State to support all the activities of the State government, except the highway department, an average of $156,092.12 less per year than was collected for the fiscal year ending Sept 30, 1916. PURDUE PAID $676,500 BY STATE. At the beginning of this administration the State owed two obligations—one of $340,000 to Purdue University, and the other a Judgment that had been obtained against the State in favor of Purdue University during Governor Ralston's administration, from which Judgment Governor Ralston had appealed. The Supreme Court decided this case in favor of the university and the State was required to xnd did pay during this administration by reason of that decision $676,500. Under the direction of the General Assembly we have Invested the $310,000 in Liberty bonds and now hold in the treasury or the State as a trust fund to meet the Purdue debt when due $400,000 fa-e value of these bonds, the Interest upon which will meet the interest due Purdue and when paid will show a profit to the State of $60,000. The Inheritance tax fund, the collections of which have amounted during the past four years to $1,843,150.52. and which, under the previous administration, went Into the general fund, was by legislation transferred to the new highway department. It has been used for the purpose of building and maintaining the Btate highway system. There has been paid out during the past four years on the State debt, for the purchase of real estate, the remodeling of the Statehouse, the rebuilding of the reformatory, the new buildings at the Epileptic Village, the feeble-minded colony, the State council of defense and the extra military expense Incident to the war $3,228,927. Notwithstanding this extraordinary expense, the debts of ev**rv klnd paid or provided for by the ; a chase of bonds and with $479,973.88 " vested in binder twine, boots and shoes, clothing, the iron foundry, the other manufacturing industries In the State institutions. there remained in the State treasury on Jan. 1, 1921, a cash balance of $8,151,135.70, an increase in cash of $555,895.47 over the balance on Jan. 1. 1917. Including the Liberty bonds in the treasury and the merchandise oil hands and paid for, the increase will amount to nearly one and a half million dollars. This result has been accomplished by the earnest cooperation of the heads of the State institrtions, of the departments In the Statehouse and of the various elective State officers. They have shown the highest degr<*e of efficiency in the conduct of their offices and the most economical administration of the State's affairs. It is clear from the flnanciil condi- i cion of the State and having in mind the possibility of Increasing the revenues of ths State through the fees and taxes

charged for licenses and other service rendered for the State, as herein recommended, that during the next four- j year period there will be available for extraordinary expenses at least one mil-1 lion dollars a year. With this sltuatiou , In view, a program should be adopted extending oTer the four-year period, an.l : to include the following: Increasing the; capacity of our State hospitals for the insane by at least 1,509, as elsewhere, stated- the erection of new buildings at the Central Hospital for the Insane; the completion of the group of buildings at the Epileptic Village at Newcastle and the construction of the feeble-minded cclon.v at Batlerville; the removal of the reformatory; the erection of a children’s hospital and psychopathic clinic established In connection with the Long Hospital and the State Medical School. The entire program ought to and can be completed within the four-year period and with no increase in the State tax levy. These matters are all of great importance to the people of the State and I trust that the General Assemblv can see its way clear to make the appropriation necessary to carry out the above program. If this recommendation should be approved, the law should pnAide that the work should move forward upon the approval of the Governor as rapidly as the funds are available. The State has never had a uniform policy with respect to charging fees to cover the cost of maintaining its various inspection departments. The bank department is entirely supported by the fees collected from banks, savings associations and building and loan associations. The oil is supported by the fees charged there. The pure food and drug division of the State Board of Health by the last General Assembly was authorized to charge certain fees that assist in paying the expenses of that department. The policy that obtains in many States, in my Judgment, should obtain here, namely, that in all cases where the nature of the business requires inspection or supervision bv the State, fees will be charged by the State for the service rendered to cover at least the cost of the department. FAVORS FIXING INSPECTION FEES. I recommend that the laws be amended so as to fix fees for the inspection of mines, factories, dairies, bate shops, boilers and tb£ various other activities inspected and supervised by the State so as to cover into the treasury a sum at least sufficient to pay the entiro costs of maintaining such services. When the board of State Tax Commissioners met in September, 1920. to fix the levies for all State purposes, it was ascertained that the fees collected by the various departments and the earnings of the State institutions would be more than sufficient to pay all the ordinary expense of the State government, and that it would not be necessary to mako a levy for that purpose. The presidents of the State’s schools appeared before the tax board and requested that the levy of 2.8 cents for these institutions be increased 1 cent. It was the opinion of the board, in which the executive concurred, that the General Assembly never intended to confer on the tax board the power to appropriate money, which result would have followed any increase of the State school levy.

After giving careful consideration to the situation the board of tax commissioners decided to add one mill to the tax levy. The proceeds of this extra mill, amounting to about $550,000 will be paid into the general fund during this year, and subject to appropriation by t.e General Assembly, if in its Judgment, the State schools need additional funds to carry on their work. * In 1917 Governor Ralston recommended to the General Assembly the abolishment of the separate boards of control of the various iustitutions and centralization of control together with the purchase of sup- \ plies in a centra! board of control. Be- | lieving. as I did, that all of the advantage I of centralized purchasing could be acI complished without losing the great ad- | vantage arising from the non-partisan ' management of the institution by sepa- ! rat? boards. I recommended to the Gen- ; eral Assembly of 1917 the creation of a j purchasing committee to be made up of Ia member designated from the board of ! trustees of each State institution. After i two years trial thi3 was found to be ! cumbersome and unworkable. The GenI eral Assembly of 1919, upon executive m immendation, authorized this comuiit- ■ tee to emp'oy a secretary or purchasing agent. The results accomplished have justified the statement by Governor Ralston that $250,000 could be saved In the purchase of supplies. The committee has standardized a large number of artie'es used by the institutions and centralized the purchase of these articles in a purchasing agent who acts with the advice of a small committee of the trustees. This arrangement has obtained the efficiency of a centralized purchasing agent. It has cut out the middleman's profit, bringing the State as a consumer and the manufacturer and producer together. Yet it has left the general conduct of the institution in the bands of Its board of ' trustees, thus preserving all the advantage of separate control. $217,010.44 SAVED IN SINGLE YEAR. The joint purchasing committee has filed its report which shows a saving in a single year of $247,010 +4. The purchasing committee is gradually taking over ! the purchase of additional supplies. In addition to the above, by co-ordi-nating the work of the various institutions and arranging for one institution ; to supply all the others with certain needed articles, the purchasing committee has been able to effect other savings not indicated in their report ; I earnestly urge that the present ar- | rangement be continued. The inheritance tax in Indiana has proven a source of considerable revenue. This money goes into the highway fund ! to be used lu building and maintaining ! the highways. The amount of taxes collected Is not in line with levies by many other States. I recommend that the present rate of taxation upon the devolution of estates be increased. The tax levied upon automobiles ia his State is entirely inadequate, is beow the average collected throughout the country and very much less than the amount collected’ in the States adjoining us. The tax on trucks is particularly low. The truck lines of the States are handling each year an increased amount of freight and express. They are operated exclusively for profit. The tax on trucks should be greatly Increased so tbat they would to some extent contribute to the support of highways in proportion to the use they make of them. We ore paying $30,000 to $40,000 a mile to build hard ; surface roads and furnish the rights of I way for these commercial truck Hues to i mrsue their business. While the construction of these ronds is of groat benefit to the State, in addition to that it is if peculiar and special benefit lo the owners of automobiles and trucks. I •eeommend that the tax upon trucks be increased heavily, and that the autonio>ile tax generally be Increased, and that ; he funds so derived be used for the eonI truction and maintenance of'the highway system of the State. It has been suggested that data on the gasoline and ills be prepared for submission to the i ieneral Assembly. This I have bad ' done. Several States have enacted laws levying taxes upon gasoline, the proceeds of which Is used for the construction of highways. These States make but a nominal charge for automobile license plates. This would mako the tax directly proportionate to the use of the roads by automobiles and trucks, it is worthy of the careful consideration of the General Assembly. Under the law passed In 1917 the prison contract system was abolished. On tiie first day of October, 1920, all of the contracts made during the two previous administrations expired. Through negotiations with the various prison contractors we were able to cancel the last of the contracts March 1, | 920. Since that time the State Prison, he Reformatory and the State Farm have 1 all operated on State’s account. The’ advantage of this arrangement has been demonstrated since that time. The State Farm last year earned every dollar appropriated by the General Assembly for ts- maintenance, repairs and buildings and turned a balance of $35,466.28 Into the treasury. The State Reformatory paid into the State treasury during the fiscal year ending Sept. 30, $191,024.01, or only about $40,000 short of Its operating expenses. The State Prison reports tbat after paying all of Its expenses, it showed a profit of over SIO,OOO. From the reports of the operation of these three institutions for tue months of October, November and December, the General Assembly may be sure that the penal and correctional Institutions will not this year cost the taxpayers of Indiana a dollar. There Is no reason why

they should not continue to be self-sup-porting. The last General Assembly provided in the appropriation bill that, with the consent of the Governor, penal Institutions should have the right to apportion profits among prisoners. If the law is not now broad enough to cover this, I urge that a law be passed giving to the trustees of the State Prison and the Reformatory the right, with the approval of the Governor, to apportion part of the earnings regardless of profits to the Inmates of these institutions for their own use or for the support of their dependent families. The division of earnings already made has resulted in an Improved morale in the penal Institutions in greater efficiency upon the part of the men and a larger interest in their work. I recommend to the- Geueral Assembly of 1919 that the Reformatory be removed from its present site at Jeffersonville to a more central part of the State. It is clearly in the public interest that tflils be done, but a false local pride, coupled with a personal iuterest, prevented its ; removal at that time. The Reformatory’s present location interferes largely with the discipline of the inmates and makes impossible the acquirement of land in close proximity to the institution. Seventy-five per cent of the inmates of this institution come from Indianapolis or north of Indianapolis. Every county in that part of the State must pay the expense of transporting Its prisoners to the extreme southern part of the State. I can see no reason, in view of the rapidly decreasing population at the State Farm, why the Reformatory could not be moved there, the two Institutions consolidated and operated under the management of one superintendent and board of Trustees. If this were done at once, the buildings could be constructed almost wholly by the labor of the inmates and a large amount of material necessary for construction could be made at the State Farm. The State Farm at this time is not only paying all of its expenses, but is earning a handsome return upon every dollar the State has invested. If consolidated with the State Farm, there is no doubt that the Reformatory would lu like manner, as soon as it was constructed. pay the entire cost of its operation. Such a result is impossible under present conditions. The land purchased for the Reformatory east of Jeffersonville three years ago can be sold for more than double Its cost and the Reformatory building and grounds could be sold to some manufacturing concern and the money used toward paying the cost of the new institution. It is apparent at this time that many demands will be made upon the General Assembly for the Increase of officials salaries and for the support of the varii ous state institutions. Every one of s these demands should receive the closest scrutiny. It Is evident that Increased appropriations will be needed for some of the State Institutions, but at a time like this when prices are rapidly declining, when the Incomes of the taxpayers of the State are decreasing, when the purchasing power of the dollar is grow tng greater month by month, sni when the dollar is becoming more difficult to I acquire, great care, should lie exercised ; in adding to the hardens of the people, j However easy it may be In private business to meet the decreased prices and the increased value of the dollar by adjusting wage*, salaries and expenses to meet changing conditions, It has never yet been found possible to decrease the ! statutory salary or eonHiensation of any I one engaged In the public service. While I the State should not ask any of Its citli Zens to serve tt for les than the same | talent or ability would command In prli 'nte life, yet every step taken In <he 1 direction of an increase In compensation : should t*e with the fact ever before you | that an increase, once made, will stand as unalterable so far as any reduction is concerned, as the law of the Modes and the Persians An active organization of public officials 1h being perfected to bring before the General Assemly various requests for the increase of salaries and wages. MUCH TIME SPENT IN’ FIXING SALARIES.

In the past years much of the time of the General Assembly has been consumed In fixing the salaries of couuty, township and city officers, the compensation to bo paid to laborers, clerks, stenographers and bailiffs in the various communities of the State. We talk much about home rule and yet the General Assembly from time, to time Is called upon to deal with these matters that sre purely of local Interest and the burden of which falls alone upon the various local communities. in order that this General Assembly nnd those in the future may be relieved from this pressure, I believe that it would bo the part of wisdom to pass a law authorizing the board of countv commissioners and the county council In joint session prior to tlie election every two years to fix by proper resolution the compensation to be paid the varloua local official*. These organizations are ejected by the people and immediately responsible to them. If they fix the salaries too high they are answeiable to the people of their own community for it. If they cast an unnecessary burden upon the people they have full recourse at the next election to put out of power tho party which has abused Its trust I recommend that Instead of the Gen Assembly fixing the compensation of all these local officials, that a law b* enacted vesting such authority i n tho above named official boards it is with some degree of pride that we refer to the legislation enacted during the past tour years. A mere reference to the more important matters of legislation is sufficient to advise the General Assembly of the far-reaching steps that have been taken In this State. Among the legislative accomplishments are: Laws prohibiting the sale of Intoxicating liquors. Ratification of the woman’s suffrage and prohibition amendments Laws abolishing tbe elective offices of State statistician and State geologist and appointive offices of legal clerk and legal supernumeraries and board of veterinary examiners. Ijaws creating the department of conservation, department of banking and insurance and tho jive stock sanitary commission. Tho State year book law, which put an end to tho great waste of printing useless department reports. The State highway commission law. The blue sky law. The tax revision laws. The coal commission law. Tho passage of joint resolutions authorizing the submission to tho people of sixteen amendment* t tho constitution—among these the budget system. SEPARATE ITEMS COULD BE VETOED. These amendment, If adopted will give the Governor tbe right to veto separate items In the appropriation bill; will givo the General Assembly power to apply the registration law only to the large counties of the State; will prohibit increases in salaries; will extend tho term of all State and county officers to four years, and provide for an Income tax and other amendments of vital Importance to tlie people of the State. The department of conservation entered upon Its duties April 4, 1919. It has been in existence only twenty-one months. Its development, both as to organization and results achieved, has exceeded the hopes of those who favored the creation of this department. It has won tho confidence of the people. Much of its success is due to the carefully prepared plans for its operation; much to the organization. The supervision is in the hands of an able commission. The director selected by the commission, and the officers chosen by the director with the commission’s approval, have shown marked ability. The division of geology, cooperating with the State university at an expense of $5,541.4-5 has secured the help of twenty-ono scientists and exports in relation to the work performed by this diviston. Tho General Asembly should take such action as will enable the department to arrive at a similar understanding with Purdue University In the direction of an engineering division to have charge of the many demands made upon the department for surveys and the investigation of lake levels, purification of streams, prevention of flood damage and many other related subjects. Tue Division of Geology has located nine million tons of coal under the bed of the Wabash river that belongs to the State. Heretofore the coal operators have been taking out tills coal without any compensation to the State. Effort Is betr.g .made to recover the value of the coal already taken and to insure pay-

liNl)lAi\A DAILY inVij&o, liiUit&DAi, JAJNUaAY 0, 1321.

rnent for coal mined in the future. In this effort the department should have the fullest support of the General Assembly, The Division of Entomology has done notable work. Through the exercise of Its police powers there was warded off in the year 1919 a threatened quarantine against Indiana wheat. The work of this division has been of notable benefit to every industry of the State with which it comes In contact. The Division of Forestry is not only doing excellent work in the investigation of the trees of Indiana and the publications in connection therewith, but has aroused the people of Indiana to a lively appreciation of the necessity not only of preserving our forests, but of embark- I ing upon an intelligent extension of that! work. The Division of Lands and Waters has demonstrated that the State parks are not oniy a necessity to the welfare of our people, but that they may be maintained so as to make them, when once established, practically self-sustaining. The State has acquired three valuable parks, known as Turkey Run, McCornjlck’s Creek and Cilfty Falls largely through private donation. The department should receive every encouragement in extending our State park system. We should have State parks, located on our highway system, easily accessible to the people of every part of the State to which they may easily go for rest and recreation. The cost of acquiring and maintaining these parks is insignificant when compared with great good that flows from them. Espeeialiy do I call your attention to the advisability of preserving in the north part of the State for that great Industrial section, the Sand Dunes Park along the southern shores of Lake Michigan. Unless some steps are taken at an early date, this beautiful tract of ground, will be taken up by private interests and no longer be available for park purposes. The Division of Fish and Game is entirely self-supporting and has done remarkable things. Operated purely in the public interest and not as a mere instrument with which to reward men for political service, it has demonstrated what a strictly disinterested administration means. The Increase of its assets has been astonishing during the first year and a half of its operation. Three times as many fish were hatched and distributed as in previous years. Close cooperation has been secured between the department and the one hundred and eight fish and game protective associations. The laws have been enforced Impartially. During the fiscal year ending Oct 1, 1920, a total of 1,421 nrrests were , made, n gain of 621 over the fiscal year ' ending on the same date In 1919. and 28,700 additional licenses have been sold during the same period. The game warden service has been handled with firmness but with fairness and Justice. GAME DIVISION SAVES $60,000. While it was not claimed, when this department was established, that its op elation would result in any great saving of money, yet during the short time It has been lu operntion It has shown a net saving of more than $60,000. The work which this department is doing for men, women and children is not alone for today. It ts planned on a large scale and should adequately be supported. Compared with the results achieved, the cost to the taxpayers of the State has been lustgnlficant. The results measured in terms of dollars are the most unimportant achievements of this department, and do not take Into consideration such elements as recreation. Increased vitality and health of the whole population. The department has for its purpose the safety, the prosperity and the contentment of the coming generations. Its work Is based upon the experience of the past and operates for the future in the present. I commend the work this department to the Geueral Assembly, and trust that it will recognize the needs of the department and hy its generous support enable it to do a still larger work for pros parity and happiness within our State. Indiana has emerged from the war period and the more trying post-war era, with her public utilities Intact. I ci 11 your attention to the fact that, notwithstanding the most extraordinary handicaps, there has been lees curtnii- ; tnent of service; that there are lower ! rates and that the utilities themselves are in better condition In Indiana than in ' most other comparable Mates. This record Is not one of accident. It ! the result of able und careful direction by tbe Public Service Commission. In the matter of rates, the Indiana commission adopted the theory that the lowest rates that will yield revenues sulfide it to malntuln the service- and necessary credit —not only would be best for patrons, but for the public utilities as well. The handicaps have seemed Insurmountable at times. The commission hud to urge continuity of service when coal did not appear to be available; the maintenance of plants when money seemed equally unavailable. When the nation entered the war the President of the United States called on such commissions and utilities not to use labor, materials or money. The result was that much maintenance and replacement to cover wear and tear had to be deferred. Following the war the world begun an unprecedented bidding for money. The cost of 50-cent dollars be- ' anuj almost prohibitive and forced further deferring of maintenance.

COAL PROBLEMS ADDED DIFFICULTIES. Uu tlie heels of these handicaps came the most severe ordeal of all-tbe runaway coal market this year. Slack and screenings, which In 1013 sold at 30 cents a ton at the mines and In 191(1 sold at SO cents, advanced from the Government war period price of $2.05 a ton at the mines to $7 and even higher levels. Small utilities requiring better grades faced quotations of $lO to sl6 per ton. This fluctuation In. coal was almost paralleled In oils. Labor, materials and supplies used In operation and maintenance, advanced from IUO per ceut-to 300 per cent over 191.1. The war has brought better understanding of the almost complete dependence of modern society on agencies which supply water, gas, electricity, heat and transportation of persons, commodities and intelligence. New economic conditions are before us. There never was a time when the people of tho State, and tbo utilities, needed intelligent regulation so urgently. Only by such a policy may the utilities In Indl- I ana hope to attract the new capital needed In the next two years to meet the demands of the public for service. The commission has carried on a con- j tinuous three-year fight against railroad rate inequalities. It has been successful. Indiana freight rates atid shipping conditions have been made uniform. The next step was to spread this uniformity over the whole competitive field In which Indiana shippers are interested the North Central States. Illinois yielded least to theso efforts. The Indiana Commission, by its own orders affecting Intrastate rates, and by its aggressive fight before the United States Railroad Administration and the Interstate Commerce Commission, has finally obtained uniformity between In-! diana and Illinois. This means much for the development of Indiana. The Indiana Commission is cooperating with other States in carrying to the Supreme Court of the United States the question of whether the Interstate Commerce Commission or the States is to have jur- i lsdiction In purely State rates and ship- j ping conditions. In obtaining, however, the decision of the Interstate Commerce Commission that shipping conditions in Indiana and Illinois are so closely par- j nllel that lower rates in Illinois create j an unfair condition against Indiana shippers, the Public Service Commission has established substantial assurance that the old discriminations will not reappear. The revision of our tax laws has been a lively question In Indiana. That the old system was a failure was conceded by every one. While there was in It the foundation of a good law, yet on account of faulty administration, failure to live up to its provisions, nnd the lack of any power on the part of the commission to enforce Its orders, the law had virtually become a dead letter. Every taxing official in the State was administering It according to his personal desires. This practice resulted In great Injustice and inequality in the assessment of property. The situation was one that demanded the attention of the General Assembly. The dominant political party had promised, time after time, to revise the law. The General Assembly of 1919, obedient to its promise and the mandate

of the people, expressed at the polls in 1916 and 1918, revised the tax law. In the administration of this law, the total assessed valuation of property increased from two and a quarter billions to nearly six billions of dollars. This increased the debt contracting power of the various municipalities, under the Constitution, nearly three times. It made possible the indulgence In great extravagance. The old tax law had a statutory limitation as to the amount of tax that could be levied for the various public purposes. Not. knowing at the time the law was passed, to what extent the duplicate would be increased, and fearing the result of the unlimited power to mako tax levies and contract debts, the General Assembly vested In the tax board the control over tax levies and bond Issues. This placed an enormous amount of •work and great responsibility upon the tax board. It did not prove entirely satisfactory to the people. Both political parties demanded the return to what popularly was known as home rule in the various communities. At the special session of 1920 the control of the tax board over tax rates and bond Issues was abolished and the local communities permitted, without any limitation whatever, to levy anv amount of tax they saw fit and to Issue bonds up to the constitutional limit. The increase In tax rates and tile tendency to multiply bond Issues, illustrate the danger that l lies in this unrestricted privilege. I am fully convinced that some limltaI tion must be placed upon this power, I that it is advisable to restore a fixed | statutory limitation upon the right to j make tax levies and the right to Issue J bonds, or to vest in some body far re- ! moved from local influences the final apJ pollate control over these important func- | Mens ! TAX levies show unrestricted I'OWER. A glance at the tax levies and the great burdens cast upon the taxpayers of Indiana during this coming year is an Impressive illustration of the abuses of this unrestricted power. This added burden will be small beside tlie burden that will fall upon the taxpayers In 1922 unless some protection is afforded them. I recommend, therefore, while the power of the local boards to originate tax rates ami authorize bond issues remain with such boards, that the right to review such actions on appeal be vested in the State Board of Tax Commissioners in such manner as to afford adequate protection to the taxpayers. The State highway law was passed. The State Highway Commission has laid out a systin of highways extruding to every county seat and town of more than five thousand people. The total is about 3,500 miles. The work of organizing the department 1 under the unusual conditions that existed has been slow and difficult. Some people have not been able to foresee all the benefits that will flow from the enactment of this law. Fifty miles of hard surface ronds have been completed One hundred miles more are under contract.

There has been expended for construction $2,630,858,851 For motor transport. Including garage 258,782,50 For maintenance 1.585,848.52 YYlth the general fall in prices the highway commission should substantially in i crease new construction. We may look ; forward to the time when every county will be connected with every other county by a system of permanent hard-urface j toads, so constructed as to withstand the heavy demands made upon them under modern traffic conditions. The ] Mate levy for highways should be so I Increased that with the Increase In the auto license tax 460 miles of highway could he constructed each year, uatll the i K J'*tem has been completed. Ihe live stock sanitary commission created by the last General Assembly took the place of the old State Board of 1 Veterinary Examiners. It la made up ; of two live stock men and two veterinary ! surgeons. This important service has been placed on a strictly non-partisan basis and hss proven to he exceedingly satisfactory to the live stock Interests. 'I he last General Assembly created separate departments of banking and insura nee, the beads to be appointed bv and directly responsible to the Governor. The banking department has made an enviable record during the past four years. Not a dollar has been lost to the depositors of Indiana during that period through the failure of any of our hanking Institutions. , The law creating the Insurance dei partment and vesting In the commissioner the control of rates Is one of the best laws In this country. It requires uniform treatment of all policy ho.ders. prevents discrimination In rates, and vests in the State the authority to de. termlne and fix a reasonable rate. Under this law Insurance companies have been prevented from charging exorbitant rates and many hundreds of thousands of dollars have been saved to the policyholders of Indiana. The fees collected in the bank department have Increased $7,936.02. The ftes collected in the Insurance department during tho last year, without any change in the law, has increased $256,044.03. Both of these departments are entitled to the full support of the General Assembly. The coal commission created by the special session prevented in Indiana extortions practiced in many States, as disclosed by the senatorial investigation at Washington. It saved the consumers ;of Indiana more than a million dollars It prevented profiteering by the coal | operators during the acute period that j obtained In the late summer and fall. ! Normal conditions have been restored and the operators are freely selling coal under the prices fixed by the commission. DECISION DEFINES STATE POLICE POWER. A suit to test the constitutionality of the law Is now pending in the United States Supreme Court. This ease should vigorously be pressed to a conclusion so that the police power of the State may clearly be defined. In this connection I want to call attention to the fact that Jesse Kschbach,! chairman of the State Board of Accounts, upon whose shoulders has rested In a largo measure the administration of this j law, has. performed a large amount of extra service; ho not only served as a member of flie commission, but also as fuel director; he has worked intelligently and untiringly In the public Interest during the time this law has been lu force. The law creating the commission made no provision for this extra service. I recommend that a suitable appropriation be mado by the General Assembly to compensate Mr. Eschbach for bis services, and chargeable against the fees collected by tbo commission. After many repeated attempts and a long struggle, the old oil inspection department was finally abolished by tho General Assembly In 1919. The Inspection of oils was placed under tho direction of the pure food nnd drug division of the State Board of Health. The number of Inspectors under this law was reduced from seventy to twenty-six. The oils of tho State have been carefully and Intelligently Inspected. All expenses of the department have been paid by fees. There was turned Into the State treasury during the first year of Its operation a net profit of over $65,000.00. I am advised that ati attempt will bo made to repeal this law and restore the old situation. An attempt of this kind could have no foundation except that of the selfish interest of those who expect to profit thereby. Such an attempt should receive no encouragement at the hands of the General Assembly. Indiana now has five hospitals for the insane. They are well located, so as to accommodate the various sections of the State. Two are in the central, one In the northern and two In the southern parts of the State. At present they are caring for 5,380 patients. On tho first day of January there were but twenty-three inmates confined in the jails of the State nnd at this time all the hospitals, except the Central Hospital, are able to take care of those who are committed to these Institutions. There Is no need In the near future to build an additional institution. The policy should be directed toward increasing the eniaclty of the present institutions. A large tract of land was recently purchased for the Southern Hospital and buildings should be erected there, so as to Increase Its ultimate rapacity fronl 800 to 1,400. The construction of another colony at the Southeastern Hospital will Increase the capacity of that Institution. The Eastern Indiana Hospital, with the completion of two additional colonies, will he able to care for a large number of additional patients. We have Just purchased 200 acres of land for the Northern Hospital. More land should be

purchased there and the capacity of that hospital largely increased. The Central' Hospital for the Insane should not be enlarged. It has presented a problem to every General Assembly. The buildings are antiquated, part of them are insanitary, fire traps. If it is decided to retain the Central Hospital at its present location, steps should be taken for the destruction of some of the buildings and the erection of modern buildings. If it should bo decided to remove the institution from Indianapolis, land should be purchased and construction begun at an early date, with the definite purpose of selling the land occupied by the present institution. The State ought uot, under the guise of a colony for the Central Hospital, or In any other way, be committed to the construction of an additional hospital. Under the present laws there is no means for transferring to any other Institution inmates of the Soldiers’ and Sailors’ Home at Lafayette who have become of unsound mind. It Is Inevitable in a population having’ an average age in exeess of sixty years, that many should become mentally defective. Thirtyfive of the inmates at this Institution are insane, many of them violently so. The trustees have recommended that a hospital be constructed there, for the accommodation of the insane. This should not be done. The laws should be so amended that any inmate of the home might, upon the request of the trustees and the commandant, be transferred by order of the Governor to any existing hospital for custodial care and treatment. The soldiers of the World War are cared for in our present hospitals. The Inmates of the Soldiers’ Home would receive better care and treatment In the State's hospitals than they possibly could receive In a separate institution erected and maintained In connection with the home. This would result further in greater economy to the State because the cost of operating an insane hospital for a few inmates that would develop at the Home would outrun any possible benefit to them.

The care of the health of the people Is the most Important question with which the General Assembly has to deal. Modern science Is directed toward the prevention of disease and stopping tho needless waste of human life. It Is well understood that the application of sanitary science will curb these preventable deaths, will prevent the spread of epidemics and will save the State every year thousands of lives needlessly sacrificed through lack of sanitation. We need in Indiana anew health law which will take into consideration all discoveries of puventatlve medicine. I recommended to the General Assembly In 1019 the creation of an all time health officer, but the bill failed to pass. This officer Is now found In all the advanced States except Michigan and Indiana. Our universities recognizing the importance of hygiene and sanitary science, have attached to them schools of public heultn wherein those having the degree of M. D. may receive the highest of all degrees, Doctor of Public Health, when they have finished the course of three years. ALL TIME HEALTH OFFICERS NEEDED. The practicing physician who under the present law acts as health officer must <ru his Jiving practicing medicine. He receives a mere pittance for doing tlie. public health work of his county. We need in this state an up-to-date scientific law providing for training of health officers who will give their entire time to keeping away diseases and Improving the public health. Such officers should l>e appointed because of their fitness. The county health officer should have a living salary graded by the cumber of people he serves. His duties and powers should clearly be defined and an accurate record of his work ke.pt. Regular reports should be inude to the State Board of Health. I recommended that a law bo passed creating the office of county health officer, that suitable provision be made for his compensation and that every county In the State be required to appoint such un official. Your attention is called to the report i of tbe Indiana committee on mental defectives appointed under the authority of the Legislature to consider the probbin of health of mental defectives. It lias been making a study of the mental i defectives of Indiana and in such work has rendered valuable service to the ; State. The report Is before you and their recommendations should have your careful consideration. I hope that the committee* will be continued with suitable j appropriation. The General Assembly of 1919 author- i lzed the appointment of a commission on Child welfare and social insurance, j This commission, without any eompeu- ( satlon to Us u.embers, has rendered an unselfish service to the State in making a very thorough Investigation of the en- i tire subject of child welfare. It has made ] an exhaustive report covering the entire I situation ami has prepared and will sub ; mit to you for your consideration bills having for their" purpose, the conserva- j tion of the child life of tlie State. No j subject is of greater importanace to the people of Indiana than that of the de- | velopment of the life of Its children. 1 [ commend this report to you for your favorable consideration and trust that the recommendation made by the com mission may be embodied In law. Ever since Governor Marshall raised the question as to the constitutionality of the present law authorizing the desexuallzatlon of inmates of certain institutions, it has been a dead letter and no serious attempt made to enforce it. I repeatedly have urged tbe superintendents of the Institutions to take advantage of the present law aid desexualizo all persons who would be fit to return to their ! homes but for the fear that they might i propagate mental defectives and impose ] further burdens upon society. They [ pretty generally have declined to enforce j the law for fear of personal liability in j tbe event, the law should be held invalid, i A suit 1r now pending in the Supreme | Court to enjoin the officers of the Re- j fornmtory from desexunlizing one of the; inmates. It is expected that the de- j cision will be rendered before the Gen- ! ernl Assembly closes its deliberations.; If the law should be held Invalid, then ! I urge the enactment of anew law- that will meet the constitutional objection. If any, and authorizing the desexuallzation of the Inmates of the various penal, correctional and benevolent Institutions. Indiana in her system of charities holds a high place among the States of the Union. Credit for this situation is due to the State Board of Charities and the Intelligent supervision it exercises over the State institutions. Its members are public-spirited citizens who are informed concerning charities and give generously of their time and effort to the State. After serving with them for four years, I can testify to their helpfulness to me, of the value of their service to the State and tho board is entitled to tho fullest support of this General Assembly. BLUE SKY LAW IS NOT PERFECT. A blue sky law tins been recommended by the last two State executives. The General Assembly at Its special sesslou in 1920 passed such a law. II Is not per- \ feet. It Is a step In the right direction j and will, if properly administered, result lu saving our people from heavy j losses resulting from the purchase of worthless securities and should be strengthened in every way pos6iblo. I recommend the following amendments to tho law: That the fees bo Increased to bring the charge lit line with the fee charged by other States rendering similar service. I’hat newspapers and periodicals be prohibited from publishing advertisements for securities uot licensed by tho commission or exempted by the law. That the commission be given the right to control and regulate the value of promotion, patent rights, copyrights, trade marks, process or good will and the stock to be issued In payment therefor. The commission should also be given the right to exempt securities listed on tho principle exchanges of the country. The securities issued by a corporation not for profit but exclusively for educational, benevolent. charitable, fraternal or other similar purposes, should be exempted. During the admiinstration of Governor Ralston a teachers’ pension law was passed '-hat Is optional in its provisions and only applies to such minueipallties as may decide to gccept the provisions of the law. The law was defective, was not established upon a sound basis, and simply cast upon the State the burden of assuming tho care of teachers after they had taught for thirty-five years. Tho law is defective In the further fact that it makes no provision by- a present

levy for the future demands of the system and tends to deceive school corporations nnd to mislead them as to the burden that may be cast upon them. Both parties should krow precisely wihat they have to pay and in making the tax levy, the school corporation should make provision for Its share. The fallacy of the present law is shown In the fact that while those who favor It represented cot only to the General Assembly but to the various school corporations that embraced the provisions of the law that It would be a long period of years before the school corporations could be called upon to contribute anything to the fund—that the teachers' payments would take care of all demands upon the fund for a long period of time. Y'et the fund contributed by the teachers already has been exhausted by a number of school corporations. The fact that under this law any teacher who quits the profession before reaching a pensionable age may withdraw- all his contributions, Is conclusive proof that the fund in every school corporation In the State would today be hopelessly Insolvent if it depended to any considerable degree on the contribution of the teachers. The law reflects little credit upon those who uphold it for selflish interests and uone at all upon tho wisdom of the General Assembly in enacting the legislation. If the pensioning of school teachers is to be the accepted policy of the State, then the present law ought to be amended so as to fix just as definitely the part the teachers are to contribute to the fund as the part that the State Is to contribute. The State annually should contribute Its part. The joint contribution should be adequate to create a permanent .fund sufficient to take care of all present and future demands without any increase in the payments and it ought to be made compulsory and State-wide iu its application. Acting under the authority vested in tho executive by the General Assembly, the old State capltol at Corydon has been purchased by the State to be preserved as one. of the historic land marks of Indiana. Harrison County will be ready at an early date to vacate the building and turn the same over to tho State. FRGE PRESERVATION OF EX-CAPITOL. The care and custody of this building properly belongs to the Department of Conservation and I recommend, therefore, that a law be enacted authorizing the Department of Conservation to take charge of this building as soon as It Is vacated by the county of Harrison and that a sufficient appropriation be made so as to enable the department properly to care for and preserve the building. The special session of the General Assembly passed a bill creating the Soldiers' .Memorial Commission. Before any intelligent steps can be taken for the erection of this memorial, it is necessary that the question finally be determined as to whether or not the city of Indianapo is and the county of Marion are to be authorized to condemn the ground between University Park and the Blind Asylum and turn it over to the State for the use of the memorial. I am convinced that this should be done. Many States have voted millions upon millions of dollars for bonuses. No request of this kind has come to the General Assembly of Indiana. But we should not hesitate in the construction of a memorial to expend whatever sum of money may be necessary to erect a memorial that will stand for centuries as the highest expression of the gratitude of a free people to the men and women who offered tbelr lives in their defense. Repeated attempts have been made to drain the Kankakee Valley. Many dredge ditches have been constructed, but until the Rock Ledge at Kankakee, 111., is removed so ns to afford sufficient outlet for such drainage, nothing permanent can be accomplished. The drainage of the great industrial district should naturally find its way through a canal connecting with the Chicago drainage canal south of Chicago, 111. Neither one of these projects can be accomplished without the cooperation of the State of Illinois. The Governor of Illinois has indicated a willingness to cooperate with Indiana In this matter. I recommend that a law be passed authorizing the appointment by tbe Governor of a commission to cooperate with a similar commission la the State of Illinois and to present to the General Assemblies of both States legislation to make possible the draiange of the Kankakee Valley and to bring about the construction of a drainage and barge canal connecting the Calumet region in Indiana with the Chicago drainage canal. Two years ago 1 recommended the passage of a law giving to the cities of Indiana tho right on a referendum vote to adopt the city manager or commission form of government. It passed the House, but was smothered iu the Senate. I again recommend that such a law be enacted.

Under tbe present depository law the county treasurers of Indiana in many cases * have been converting the Barrett law .funds to their own use. either by limning the money or by depositing it in banks and receiving the interest thereon. They assert that such funds are not governed by the provisions of the present depository law. This has led to much controversy. Litigation is now pending to test the right of the county treasurers to so use such funds. The county clerks assert the right to use in any way they choose the trust funds coming Into their custody. There have been a number of eases of defalcation of county clerks through tbe misuse of such trust funds. To remove any doubt as to the Barrett law funds and to make it impossible for any public official to speculate in such funds. I recommend that the present depository law he so amended tbat the county treasurers nnd county clerks and al! other public officials who receive money by color of their office, be required, at the close of each day's business, to deposit such funds In the designated depository of their various townships, cities and couuties. INDUSTRIAL BOARD’S WORK INCREASED. The work of this board was largely increased by the last (ieneral Assembly making compulsory the provisions of the workmen’s compensation law. This brought under the law 30.000 coal miners a: u many other employes who had been exempt from Us provisions. In the mine Inspection department there has been no substantial change In the laws for many years except the passuge of the shot flrers’ bill and the compulsory compensation provided by the General Assembly ot .. _ , Tho amount of coal annually mined In tlie State in the past seven years has Increased from fourtoen to thirty million tons. Ten years ago there were but two mines In the State using electricity for power nnd light. Now nearly all of them are bo equipped. Changes Iu the raining industry are constantly arising through Installation of new methods. Increased depth and the Introduction of new appliances and the constant Improvement of old appliances essential to the safety of the men engaged In this ludustry. _ , . . . The records of the General Assembly should not be burdened by many of these matters. I earnestly urge that the Industrial Board, upon the recommendation of the division of mines and mining and with tbe approval of the Governor, be authorized to make rules and regulations concerning the conduct and tlie operation of mines which shall have the full force and effect of law. This will make the law more flexible and easier adopted to the constant chanage in the mining industry. The last General Assembly passed a bill Increasing the membership of t!v> Industrial Board from three to five. The bill originally carried with it a provision authorizing the board to regulate a’.l incident insurance rates. This provision was stricken out, leaving the increased board with not sufficient duties. Thero is no reason why the board should not be reduced to three members and I rec ommend that this be done. Many of -the States iu the Middle West have pure seed laws to protect their farmers against Impure and defective seeds. With no protection in this State, Indiana has become the dumping ground l’or much of the impure seeds. A pure se.ed law should be enacted to protect our farmers against the shipment Into the State, or the sale of, impure seed. Under our law If a tine is assessed against a person without the property with which to pay tlie fine, he must serve In prison one day for each dollar of fine. This results in the unequal application of law. Two men may commit the same offense, both equally guilty. One witu property pays his fine and goes free, the other without property must “lay his line out.” This means uraoiically Imprisonment for debt. The Federal law

provides that after a man has thirty days upon his fine, upon filjßf an affidavit of no property, he is #!seharged. Thi3 humane provision should be embodied in the Indiana law and I recommend it to you for your consideration. Numerous complaints have come to the executive that some of the railroads In the State along whose lines industries have been located under a nominal rental, have been, at the termination of the* leasehold period, exacting unfair rentals from those who in good faith have located upon *their lines and spent large sums of money in the erection of permanent Improvements. The railroads should receive fair compensation for the property furnished these Industries, but they should not be allowed to take advantage of the situation and exact unfair rentals. I recommend that a law be passed giving to the Public Service Commission the right, upon petition filed, to fix a fair rental value for the property used by such industries. If this General Assembly should ap- ; prove the joint resolutions now pending. ; submitting to the voters of the State ; certain amendments to the eonstiution, it • is exceedingly important that they be i considered before the next general elecI tion. Among these are amendments making all State and county offices four-year | offices. ! REGISTRATION REQUIRED i IN ONLY FEW COUNTIES. ; The amendment authorizing the Gen--1 eral Assembly to classify counties for I registration purposes would make It ; necessary to require, registration in only j a few counties in the State. ; In the past constitutional amendments , have largely been lost sight of in the | interest of a general election. ; I recommend, therefore, that the joint j resolutions passed by this General A- ; serubly be submitted to the voters of Indiana at a special election to be held during this year and suggest that tbe date fixed be upon the date of the municipal elections throughout the State. Nowhere in this message have I recommended legislation in the interest of anv particular class. Labor and capital, producer and consumer are so closely bound together by the ties of common citizenship and a common interest that you cannot injure one without injuring all and anything that helps one will be of benefit to the whole people. We must Inevitably all go up or down together. M hiia having in mind the justness of the demands of a particular class you will yet consider it in the end from the viewpoint of its effect upon all the people. In this, my last message to the Genera! Assembly, I am constrained to ail expression of judgment as regards tho structure and organization of our State government as a whole. State government in modem times is largely administrative. Our State pos- ; sesses vast property interests. It has large and complex financial problems. It Is constantly faced with a multitude of j important business questions. The ad--1 ministration of the State’s business and the functioning of the various adminlsagencies demand economy and . efficiency just as fully as does any private business or ixidustrlal enterprise. ; *the structure of our State government, the organization of the executive and administrative machinery upon which i economy .efficiency and service to tho i Public depend, is outgrown and obsolete.. It cannot function properly or effectivelyj There is a more or less widespread bej iwr, merely because the people vote rectl.v for and elect a large number public officials, that thereby a democrat®? form of government Is being maintain™ and that the people actually control theff i officers and their government. In the light of actual experience and extended I observation and analysis such a belief is unfounded. The facts are that by the direct election of a large number of Independent administrative officials the public actually loses control of its affairs through the multiplicity of administrative agencies, and even though the people do elect their officers it connot truthfuHv be said that they control them. The work of a large number of elected public officers and boards cannot possibly be subjected to continuous public scrutiny. The real test of whether the people actually control their government ia found in the measure of service rendered to the people. In the not distant future, Indiana must race a reorganization of its government. I believe in a simplified form of State government. Elective offices, the duties of which for the most part are administrative, should be abolished. A large number of State board should be eliminated, and the various functions of such officers and hoards should be consolidated in a few State departments which are responsible to the chief executive. The acts of the Governor of the State are under the constant and critical scrutiny of the public. He is directly responsible to the people. He ia charged with the failures in practically all matters of State administration, although under our present governmental organization he Is without authority to act in many instances, where he is now held responsible. It is my frank opinion that more and better service can be rendered and that the public will more effectively control their own affairs if tho executive and administrative functions of our State government ore centered iu the Governor and in the State departments responsible to him than can ever be possible with the present division of authority. URGES OFFICERS TO CHECK DEPARTMENTS.

1 take some pride in the beginning made In this direction during my administration. There should bo an independent official directly elected by the people whose duty it would be to audit and check the work of the administrative departments, but aside from this check no other is necessary. These suggestions are not new or revolutionary. They Involve no departure from the system of checks and balances conceived and Instituted by the founders of our Government. On the contrary they involve rather a return to the Federal system instituted by the “fathers," a gathering of the loose ends of executive and administrative authority that have been suffered to drift away from any direct responsibility to the .public in so many of our Stale governments. We want nothing new, but we do want to revive the basic virtuo of the old. As I meet with you for the last time, I am Impressed by and thankful for the fact that so many members of the General Assemblies of 1917 and 3919 are members of this Assembly. The record of 1917 and 1919 has been one of pledges kept and promises fulfilled. It Is not surprising that you have been given a vote of confidence by the people you served so well. The personnel of the General Assemblies of the past four years has been high and I am sure that this can be said of the present General Assembly. I am not afraid to trust the legislative machinery of the State in your hands. The interests of' the people will be secure in your keeping, for I know that yon will bring to tin* discharge of your duties honest, earnest endeavor moved by no consideration sav* that of the public welfare. The peopW sometimes do require of us Impossible things, but they do rightfully demand of us honest, wise and courageous action in the discharge of our public duty. In 1916 I said: “If elected Governor oj Indiana. I pledge myself to subordinate personal or partisan aims to the welfare of tho people who entrust to me the duties of the Governorship. I shall regard myself as their representative and pledge myself that efficiency and economy shall never be sacrificed to personal ends or partisan expediency.” That pledge has been ever before mo from the day of my inauguration to the present hour. I am perfeoily willing that every official act of mine shall be judged in tho light of and according to the spirit of that pledge. Sincere and earnest effort has been made to redeem that pledge; to crystallize In law and action every promise made to the people. We have dared to do in some instance* what may have appeared to some to be, impolitic, when the easier way would have been to have done nothing at all, but we have acted solely In behalf of all tho people of the State, have been guided bv a determination and a high purpose only to serve them. As I look back over the record of the past four year*. I would not, had 1 the power to do so, change it in an* important particular. I am content with the things accomplished. My only regret is that I have not been able to do mors for the people of the State who encrusts J me with the Governorship.