Rensselaer Semi-Weekly Republican, Volume 35, Number 38, Rensselaer, Jasper County, 16 January 1903 — MESSAGE OF GOVERNOR DURBIN [ARTICLE+ILLUSTRATION]

MESSAGE OF GOVERNOR DURBIN

Gentlemen of the Senate and House of — The Sixty-third General Assembly of prosperity. Peace, happiness andVcontentment more- generally prevail thannt the convening of any other session of the General Assembly in the history of our commonwealth, and I join with the people of the State in returning thanks to the Giver of all gifts for the generous bounty He> has bestowed upon us all. Capital and labor are profitably employed and mutually satisfied; industrial and manufacturing enterprises are converting -our resources into products which are being carried into every avenue of trade and commerce;- the farm and factory are richly productive; railroad construction is opening new territory, and applied electricity is conducting our cities and towns into close neighborhoods. As a result of your deliberations I bespeak a session fruitful of just and conservative legislation along the lines of the State’s needs. Indiana’s foremost position among the States of the Union has largely resulted from the progressive and conservative legislation of its General Assemblies. You are commissioned directly by the people to enact laws for their government and protection, and I am sure that you will reflect by your actions the will of the people. Party responsibility attaches to, the administration of State affairs, but partisan politics, as a motive, Um no place in its management or control. The best politics is exemplified in fidelity to official duty and the protection of the interests of those whom we serve. Without any abatement of loyalty to our political convictions, let the master motive be one of serving the State by giving it our patriotic services, to the end that -Indiana may continue to be one of the most progressive and prosperous States of the Union. State’s Finances.

The financial condition of the commonwealth is one that can justly claim the pride of every good citizen. Not only in the receipt and disbursement of taxes and fees is there caffe and judgment to be exercised, but a paramount obligation of loyalty to the requirements of the statutes must be enforced. Any haphazard, tentative policy of dealing with the/ finances of the public is a monstrous wrong, and can but result in extrava—gance, waste and official scandal. Public fiscal methods should be the exemplar not only of eclectic principles and practices, but in all that is so diversely associated with careful; conservative and cleanly business management. Other States have separate bureaus with 'retinues of officers and clerks for insurance, building and loan, banking, lands, railroads and varied departments of governmental oversight, that furnish meager duties and substantial salary lists, but Indina saves this unnecessary expense by merging under central authority these Bubordinate divisions, thus not. only saving thousands of dollars in superfluous expenses, but"giving the public much better and more methodical service. The tax rate in Indiana is one of the lowest of any of the States of the Union, and when the growing necessities, both as to permanent improvements and yearly maintendnce, are taken into account, was never as light as at present. The average rate in Indiana is about $1.50 on the SIOO, so it will be seen the burdens of taxation are local. Permit me to suggest that the problem involved in the solution of 'high tax levies is associated with township, county and city governments. There never was -a greater demand for careful and economical business administration of local public trusts than at present. The aggregate taxes of the State revenue and benevolent institution funds, collected in 1902, were $2,108,748.50. The amount of fees paid into the treasury by the State officers was $302,035.02. making an aggregate of $2,413,783.52, which, with incidental minor collections from receipts and earnings of the different institutions of the State, constituted the general fund. The total tax duplicates of the of mortgage exemptions is $35,109,250; the amount of delinquent taxes is $2,633,499.51. I especially direct the attention of the Legislature to this excessive delinquency. I suggest that the law now limited to Marion County be applied to the whole State, namely, to allow the County Treasurer to pay fifty, cents as a demand fee for collecting delinquent taxes on personal property, or for collecting delinquent poll tax. This law has proven a most efficient means for collecting delinquent taxes from those who own no real estate. The debt reducing policy has been steadily pursued, and I am gratified to announce that since the last biennial session of the >eg : slnture the following payments have been made. June Lt), 1901, 3 per cent school refunding bonds '....$ 800,000 Jan. 2. 1002. 3 per cent school refunding bonds 317,000 July 26. II>C2. 3 per cent school refunding bonds .... 1,000,000 Jan. 5, l!)O3. 3 per cent school reA funding bonds 200,000 Total .'51,817,000 Of this amount $793,063.34 accrued from the spcc’al levy, and the balance, or sl.#13,(136.66, was derived from the general fund, $015,153.20 of which being the amount of the wnr claim for interest and discounts collected front the general government. The annual Interest charge now Is $95,565. The unpaid balance of the state debt Is $2,087,015.12, which Is represented as follows'. 8 per cent refunding bonds, ISfl)$1,113,000 00 8U per cent, temporary loan, 1895 585,000 00 8W per c«»nt temporary funding loan. IMI3 500,600 00 5 per cent Purdue University, ~ ' UH 10 340.030 00 S per cent Indiana University, 1887 144,600 00 State stock certificates 5,615 12 T0ta152,687,615 12 Of the above amount $1,113,000 of 3 per eent bonds have the optional clause and are redeemable at the pleasure of the State; the $14)85,000 8% per cents cannot be paid until 1910, and are due 1915; the $340,000 5 per cent bond. In accordance with the act of Congress requiring the State to perpetually guarantee this bond and rate of interest, was, by an act of the Legislature of 1601 (pp. 34-33), renewed April 1, 1901, by the Governor and State Treasurer for 20 years. The 5 per cent bond for $144,000, due to Indiana University, Is also perpetual, •o that the principal of these amounts can never be pa/d- Th* Bute stocs certificates,

$5,615.12, are internal improvement certificates, the Interest on which has ceased, and although the State has published far and wide its desire to redeem the same, only SI,OOO has been presented in recent years, so that it Is fair to presume this remaining amount lost. This practically reduces the debt to $2,198,000. I deem it the part of financial wisdom to continue the debt-paying course and retain the present State debs-staking fund levy. The steadfast purpose of the commonwealth should be to free itself of debt and Interest and then maintain this condition. There is an approximate Identity between the individual in debt mortgaged by fixed charges of interest, and the State, which is but the composite of Its citizenship, with bonds and attendant coupons Inexorably sapping tolls from the treasury. The individual free from financial shackles and the commonwealth Independent of bonds and bondholders, combine both abstract and concrete evidence of prosperous conditions, and relative to the State are inviting to Investments, business enterprise and substantial citizenship. The claim of the State against the Federal government for interest and discounts on its bonds and obligations, made necessary in the equipment and maintenance of the volunteer soldiers of Indiana in the war for the Union, was presented to the Treasury Department by Attorney General Taylor and the accounting department of the State, and the sum of $635,859.20 was. paid. This amount was immediately applied in liquidating the State debt, and was ineluded in the -$1,000,000 payment on July 18, 1902. I would recommend that the tax levy remain unchanged. With the accruing revenues to the general fund, and the fees from the different bureaus of State government, there will be ample resources to provide for all the legitimate expenses of the commonwealth. Bankq,and Trust Companies. The State banks, trust companies and savings banks are in a flourishing condition. There are now one hundred and fourteen State banks. The law ought to be strengthened in that the establishment of branch or collateral banks should not be permitted. There has been an increasing- number of trust companies organized each year since the law was passed. At present there are thirty-sev-en. They are uniformly prosperous and occupy the fiduciary fields in their respective locations. The average rate of interest paid by these companies for savings is generally 3 per cent per year, compounded semi-annually. There are five savings banks in Indiana, with de-1 posita amounting to $7,812,157.46, and a surplus of $489,041.03. Soldiers’ and Sailors’ Monument. On the 21st day of October, 1901, the board of control of the State Soldiers’ and Sailors’ Monument officially reported to the Governor the completion of the monument, after a period of almost fourteen years since ground was first broken for the foundation of the massive shaft. The records show that the entire cost of the monument aggregates $598,318.76. The monument is a source of pride to every citizen Of Indiana. It is the greatest soldiers’ monument on earth. On the 15th day of May, 1902, this monument was formally dedicated. On the Ist day of October, 1902, it was my pleasure and honor to accept, on behalf of the people of Indiana, a granite monument erected at the grave of Nancy Hanks Lincoln, mother of the martyred President, at Lincoln City, Spencer County. I recommend that suitable provision be made by appropriation to put the grounds in proper order and maintain same. State Labor Commission. The State Labor Commission, operating under the wise and beneficent law created by the Sixty-first General Assembly, has accomplished groat good, and the work so industriously and conscientiously performed by the commissioners, Messrs. L. P. McCormack and B. F. Schmid, has been of such a character as to attract favorable attention throughout the country. During the past two years this commission has made satisfactory adjustment of forty-two labor controversies, involving 202 firms and 10,000 -employes, not including nearly a score of boycotts lifted during that period. Mine Inspection. The report of the Mine Inspector exhibits the work most intelligently done In that department. The mines of Indiana are increasing in number, nnd there are employed therein In this State about 13,000 miners. I am glad to report that never In the mining Industry of Indiana have so many mines been in operation or so many miners nt work. It Is further a matter of congratulation that none of our miners are out on a strike, but that their wages hare Iteen gradually increased, and the material prosperity of these miners was never so general or generous as to-day. The subject of forestry is now engaging the earnest attention and consideration or f (radical men, as it Is realised that unJess mmedlate and active steps are taken tb preserve the timber now growing aad to provide for future needs by forest propagation, It Is but a matter of a few years until the timber supply of the State will be entirely exhausted. The attention of the members of this General Assembly is directed to this Important matter. The work of the Board of State Charities In of inestimable value. Its supervision over the benevolent, charitable and correctional Institutions is of special value and adds materially to the efficient, humane and economical management of these institutions. Board of Tax Commissioners. Experience has demonstrated that the amendments to the tax law made by the Legislature of 1901, in that the assessment of street and electric railroads, inter-county gas and pipe lines, etc., is now delegated

to the State Board of Tax Commissioners, cause of the merging of this class of property within the province slngle taxing taxing transportation companies should be so amended, that it would be treated a* an excise tax or license payable directly to the Treasurer of State. The statute authorizing the annual meeting of the county assessors has been of much benefit. The time of county boards of. review ought to be extended so that where business requires they may remain in session forty-five days Instead of the present limit. Creation of Bureaus. I consider It is timely ‘to direct attention to the fact that in Indiana we have been creating bureaus at a prodigious rate; some desirable, others of email practical consequence, and still others that are next to needless. The result of this tendency to a bureaucracy Is especially pernicious In that the creation oL a new department marks only the beginning of demands on the treasury for “more.” - - The work of the Legislative Committee, while being a new departure, is one of the most valuable reforms authorized by statute. Its labors are very arduous and comprehend in scope every feature of Institutional necessity and management. I commend their- work and conclusions. Under the law all of the boards of the penal, correctional and benevolent institutions are non-partisan, excepting that of the Indiana State Prison. Recently, in filling a vacancy on this Board, created by resignation, I made this Board also nonpartisan. The State’s Institutions. The public Institutions of Indiana, for the support of which the State makes such liberal provision, are to be commended for their conditions of general excellence. The boards of management are carrying Into effect the admirable provisions of law whereby the merit system, humane methods and business detail are enforced, thus securing the very best administration In the discharge of all the multiplied duties and cares, and guarding expenditures without narrow restrictions, but within lines of prudence and economy. There are no deficits to be considered by this General Assembly. The great value to the State derived from the existing law which authorizes the appointment of agents to look after the wards of the State who are released from public Institutions is universally recognized. What these children need is the Influences of a good home, and I recommend that sueh institutions _fce authorized to employ an agent or agents, with proper duties nnd flowers of selecting places for and exerclsng watchful care over children from the Soldiers’ and Sailors’ Orphans’ Home and the Industrial School for Girls, and that proper additional appropriation be made therefor. Institutional Emergency Fund. ' The Governor’s Institutional emergency fund carries an appropriation of $30,000 annually to be at the disposition of the chief executive for emergency uses as are Inevitable In connection with the State Institutions. It is a prudent precaution because of the liability of fires, cyclones and omissions from the regular appropriation act, and I heartily Indorse the continuation of this Item. „ By the gradual lowering of the water of the Kankakee basin, and the narrowing of the Kankakee river, a large amount of land has been redeemed from overflow. Convict Labor. * Some time ago I invited representatives of organized labor to consider with me the subject of convict labor. We visited the State Prison and the Indiana Reformatory In order that the representatives of labor might for themselves see and investigate our system of dealing wdth the subject. I also Interested gentlemen engaged In manufacturing, nnd, further, selected one member of the Board of Managers of the State Prison and of the Reformatory, requesting them all to give the subject thought, gather information and offer suggestions as how best to solve the problem. A few weeks ago the matter was discussed In conference with me by all the said representatives. No satisfactory substitute for the present system was decided upon. It is a question of large proportions, and many elements enter Into It. The solution of the eonvict labor problem, In so far as It relates to Indiana, is one which Is now pressing. Municipal and School Corporations. There Is a continuing friction between municipal and school corporations so far as the constitutional limit of bonded debt Is concerned. Under the operations of the present law the municipal government can cover the full statutory limit of debt and so can the school corporation. The line of distinction Is not as clear In the statute as it should be, and I earnestly recommend that the General Assembly amend the law by making definite provision that there can not be Incurred by municipal and school corporations combined any debt beyond the present constitutional limit. In this connection I would suggest that hereafter bond Issues by county, municipal or school boards, or by the State, can only be made with a provision for optional payment after a period of ten years from date of Issue. Fire Losses and Insurance. One of the utilities most intimately associated with our citizenship Is that of Insurance. I am pleased to say to you that the stigma of Indiana's being the home of “wild-cat" Insurance has been substantially removed. I recommend the enactment of a fire marshal law, modeled after that of the State of Massachusetts. The revenue accruing to the State from insurance fees and taxes last year was $279,885.74. I recommend that the statute be broadened as to the class of securities forelgnjnsurance companies shall possess In order to be admitted to Indiana. Governor’s Residence. * I earnestly recommend legislation that will provide for the purchase or erection and furnishing of a residence to be occupied by the chief executive of the State. Voting Machines. Admitting the so-called Australian system of conducting elections to be a vast Improvement over previous methods, the conclusion is forced upon us that It is so far from being satisfactory that It becomes our bounden duty to adopt measures providing for radical betterments. The Sixtysecond General Assembly created what is known as a Voting Machine Commission,*’ the report of which will be submitted for your formal consideration, and I trust It will receive your earnest ateutlon. We nre confronted with abundant proof that the "Australian System,” while It Is In many respects superior to former methods. Is lamentably deficient in the respect that It permits of the practical disfranchisement of an astonishingly large number of electors whose ballots should be counted nA they were Intended to be by .those who cast them. The efficacy of the voting machine has been tested, and it is the consensus of opln|on among those who fe*tre given the subject thorough consideration that It guarantees more satisfactory results than may be hoped to be obtained by any other method. Aggressive Evils. I consider it the duty of this General Assembly to consider carefully the lottery evil, as It exists in many forms, especially with reference to so-called “guessing contests’* conducted by certain newspapers of metropolitan pretensions published. outside the confines of Indiana. I respectfully submit to your honorable bodies the necessity for the enactment of more dearly defined laws and more drastic measures for the apprehension cmfw tic measures for the suppression of prizefights and the regulation of so-called boxing contests. Prize-fighting, whether con ductly frankly or covertly, is debasing and -demoralizing. I believe it to be the duty of this Legislature to take action In the premised which will Insure the public protect lbw. * against disgraceful exhibitions of brutalttr, under whatever guise it Is proposed that they be given. Codification of Corporation Law*. While 1 believe this State Is as free, or more so, than most States, from fraudu lent concerns. Still the law Should be strengthened, so as to enable the State and county officers to prevent these concerns from doing business within our borders.

The corporation laws of Indiana should be codified so that each corporation may be organized tinier a law, of section of a law; by itself, and the right, powers and duties should be clearly defined. I suggest for your consideration ths appointment of a commission to codify all the corporation laws of Indiana, to be Submitted at the next session or the General Assembly. A matter how pressing for action is the right of railroads and Interurban lines passing through State grounds. These companies are asserting the right under existing laws to condemn a right of way through tne grounds of tnc State devoted to State purposes. This question should at once be finally determined by. law... 1 am convinced that there II I need for legislation looking to the licensing of designated officer STo~ca try'revolver*and 'prohibiting the sale thereof to other persons.* Fees and Salaries. The fee and salary act of 4895 was a step in the' right direction, in that it placed the officers of the State upon a basis of annual salaries and provided for the conversion of all fees into the nubile treasury. There should be an equalization of salaries; not necessarily an Increase tn all cases. Th* report of the Fee and Salary Commission to the Legislature of 1901 Is replete with information. $ Pardon Board. By the constitution the pardoning power Is vested in the Governor. .It is impossible for him to know of all the conditions that surround the cases wherein Application Is made for executive clemency. I recommend that a board, to be known as a parole or pardon board, should be created by law, with power to examine each case wherein application is made for clemency, and to report to the Governor the results of such examination, together with any recommendations they may have. Epidemics. i

During the last two years smallpox has been prevalent in many counties of the State. The State Board of Health has been energetic and effective In assisting in stamping it out. They have, however, been handicapped by lack of laws that would make quarantine effective and provide for the punishment of those who break a quarantine once established. I recommend that specific appropriation be made for the use of the State Board of Health to enable them to combat the spread of contagious and Infectious diseases, and that additional legislation be had enlarging the powers of the State, county and city boards of health respecting the adoption and enforcement of quarantine regulations. Lynching. In the past two years there has been a. marked decrease in the violations of law consequent upon mobs and masked citizens taking the law into their own hands and visiting vengeance upon their victims. The anti-lynching law of 11X11 has been effective in that the sheriff of Sullivan County, after a full and fair hearing before the chief executive, was found not to have performed his duty in properly protecting the life of a prisoner from the assaults of a mob that succeeded In carrying into effect their purpose of lynching. The sheriff was deposed from office, as provided by law. Trusts. The evolution along commercial, industrial and financial lines has resulted in combinations representing almost every business, and the effect is now being most seriously considered by the public in relation'to Its Interest. It should always be remembered that corporations secure every legal privilege through legislation. The pie are the real grantors, and can never ba disassociated in their ever-present rights after incorporation. In all corporations the public is on both sides. The integrity of invested capital, whether by Individuals or corporations, should never be menaced in its lawful rights. When encroachment Ts made by crossing the border line of public policy or public Interest, then the law should assert Itself to the end that the people may have proper protection. The Legislature is the source of power and prevention in every detail of corporate and public Interest connected with this new and most Important question, and I most earnestly recommend that, without prejudice and In the exercise of conservative judgment, such legislation as may be necessary shall be enacted that will guard the welfare of the people of Indiana against any contingency of wrong associated with these modern methods-of concentration and combination in forwarding the expanding volume of business that is increasing with the growth of this prosperous republic. Miscellaneous. Recommendations are made for the classification of prisoners in the county jails, in protection of juveniles and petty offenders against contact with hardened criminals, and for the establishment pf juvenile courts in the larger cities of the State. Recommendation regarding the Louisiana Purchase Exposition at St. Louis asks for the appointment of a special joint committee to visit St. Louis to obtain needful information that the Legislature may be properly advised as to Indiana’s duty in the matter of an appropriation looking to a suitable display of the State’s resources at that exposition. Regarding the proposition to establish an asylum for epileptics, the message recommends that the Legislature “proceed slowly and upon intelligent Hues.” Recommendation is also made that prisoners convicted of a second or subsequent offense shall be sent to the State prison at Michigan City instead of to the reformatory at Jeffersonville. In conclusion I desfre to Impress upon your honorable bodies the responsibility which has been entrusted to you by the voters of this commonwealth. They have confided their weal to your hands and will look to you for a faithful discharge of their trust. Let your counsels and actions be modg/ate and fair; that when you have performed your duty the citizens wnom you repre/eut may say that your deeds are creditable to themselves and to you.

WINFIELD T. DURBIN.

GOVERNOR DURBIN.