Image provided by: University of Oregon Libraries; Eugene, OR
About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Jan. 12, 1915)
TIIE MORNING OREGONIAN, TUESDAY, JANUARY 12, 1915. PROGRESS OF STATE AND ITS NEEDS IS REVIEWED BY WEST Retiring Governor Has Praise for Some Departments and Rebuke for Others Abolishment of Several Boards Is Recommended Dry Forces Advised They Are About to Face Greatest Fight, 1 to Imus stock and stock certli F notes and other evidences of fnnd to create Ilea on their pr r Uhin this state should he le ciat privilege and made subje in the end by the public, should be frowned upon. Our Railroad Commission baa been per forming a splendid service and haa Klven clone study to m'A matter having a bear ing upon this great question. It would be well, therefore, if the Mid Commission could be. given an opportunity to be, heard and make recommend a i;oa upon nil meas ures of this nature presented for your con sideration. Pi nee its creation, the Railroad Commli sion of Oregon has been Klven many new dut end its nam is hardly Indicative f the scope of It work. I would, there fore recommend that its name be chanced to that of "Public Utilities Commission." Although possessing a larger amount of standing timber than any other state, we ltave failed to provids the legislation needed lor the, dereiopment of our lugging streams, jrcgon should follow the example of other timbered states In tha enactment of legis lation of this character. The maintenance and operation of log booms is of a public nature, and their rates and service should be nude subject to state regulation. The ' blue sky" law passed at tha last session of the Legislature has been in ef fect long enough to show Its many most admirable features and develop Its numer ous defects. It has driven from the state ffurlng its short life worthless securities to the amount of um,0. The Corporation Commissioner has this to Fay as to strengthening the law: ' securities, file with the corporation de- Z pertinent a full and fair statement of all 1 thi matanal facta regarding the proposition I upon which the securities are, or are to be. V raiei and are required to use this state ment as the basts upon which their rep resentations rested, tnen rraua win vanit. because It flourishes only In concealment and dies In the sunlight of publicity. More afc;uard Asked. I4nk to this prospectus feature the fraud section of the Federal law, and provide that any representation made beyond the re corded representations of the prospectus ii a mlsreDreaeniation and punishable as such, nn,i that the omission of a material fact. or its misstatement, comes within the same classification, and you have the heart of a blue sky law. model In Its simplicity ana undoubted in its effectiveness. provide also that any contract for, or aale of, se' rurtties Induced by such unlawful repre sentation shall be voidable at the option of the purchaser and the sums paid may be recovered of the seller, and you have an added remedy for those mho have suffered because of the violation. "With these two fundamental Ideas as a groundwork, add very few amendments to the general statutes as they now exist. and the Oregon corporation law will be model for other states to copy, as far a t he protection to Investors is concerned. These amendment should go to capitaliza tion control, the control of the sale of what is popularly called 'promotion stock. and, in the unionization of mining corporations, to the acquisition of title to property claimed as a primary step In the promotion of the company. "In the State of Oregon today, aside from the arbitrary restrictions of the Corporation C ommissioner, three men can capitalise a rope ox the future for a minion douara. convey their hope to the company In ex change for Its stock and take It 'full paid and non-assessable, By virtue of the same statutes. . man wbo doe not even possess credit at the grocer's can subscribe for i half million of stock and serve as a prin clpal agent In launching a company Into active operation. That this Is nut good 'mttness nerds no argument. "The authorised capital stock of a com I'tny should be estimated on a hauls of noney needed for promotion and develop ment, and not on a foundation of nebulous hope or rosy dreams of future value." When the bill carrying the reeommenda ion of the Corporation Commissioner -aches your hands I trust that It will ,re "tv that careful consideration the lrn ortance of the subject demands. Stock Restriction Sought. The defrauding of thousands of small In vestors In the East through the sale of Inflated securities issued by the New York. Nw Haven at Hartford Railroad Company has brought home to us the necessity of I trtrowtng reasonable restrictions around the Issuance of securities by public service cor porations. The power of these corporations to Issue stocks and stock certificates, bonds. of Indebtedness property situate dec i area a spe- lect to regula tion by the state. Such Issues of securities should he per' nUttrd only for the acquisition of property or for the construction, completion, exten sion ir Improvement or maintenance of Its service, the discharge or refunding of law ful obligations or for the reimbursement of certain aoproved expenditures from the treasury, and I am advised that a measure along these lines will be submitted for our con l derail on. The Superintendent of Bank has pointed out to yon wherein our banking laws need strengthening. While only a few funda mental changes are necessary, the entire banking act houM be rewritten In order that conflicts betwen certain sections may be removed and the meaning of other placed beyond dispute. The Superintend ent of Banks ha given this question close tuay ana nis recommendations will be embodied in a bill which will be Introduced at this session. Should you see fit to follow his suggestion. I feel safe In say ing that Oregon will be given a effective banking laws as will be found In any state. Our loan eh ark law is not what it should be, and needs revising. rteforra along this line is greatly needed, fls no one should be permitted to capitalize the misfortune vf other. Rural Credit rian Advocated. Acting under authority of an act of the Legislature of 113. It was mv pleasure to appoint a commission to Investigate the rural credit systems of Europe. A splendid report, covering the commission' findings, i will be presented to your honorable body1 ana wui be round worthy of your most earnest cons: aeration, a special committee made up of men deeply Interested in the subject has been appointed to draft a bill -.rrying the recommendations of the com mission and the same will In due time be submitted to ou. The rural credit system has don much for the farmers of Europe, mid it adoption in this country will ll eve our termers of many burdens which come through excessive rate of Interest. I am not In position to advise you con cerning the activities of the Oregon com mission, as no report covering It progress or expenditure ha been made to this office. The member of the Fair board having the conduct or this splendid institution, whil not alsray the beet of weather prophet. Reserve a great deal or credit for the tire lea and unselfish effort put forth to make the fair a success. The Oregon State Fair Is a permanent fixture and deserve to be liberally supp ported, but many of the Im provements now being asked should be de layed until such time a the taxpayers are better able to bear the burden. As the diiUee of the State Fanltary Live stock Board are performed by the State Veterlnanlan. who appear to be rendering splendid service, the Board should. In the Interest of simplicity, efficiency and econ omy, be abolished and the duties given over to the sUd official. The Stallion Registration Board should a!o be broken up and the duties given eter to the State eterinarian. nortlraltara! I- Defective. Tt is generally conceded that our horti cultural law are defective and need atten tion. I am ad1 ed thst associations and pr:a:e individual deeply Interested in ths protection of our fruit industry will present i you carefully prepared horticultural btit. and I trust their recommendations will revive your thoughtful consideration. The State Horticultural Society Is a kind of vermiform appendix to the State Board of Horticulture, and. as tt use ha never ben di.overed, should be removed. The Pure Seed Commission came Into existence at the last session of the Legis Utura Before It starts to germinate and a raw nourishment from the public treas tt'T It houid be merged Into some other department. The Department of Sealer of Weight and Measures should be taken In hand while -t In Its Infancy and led to a bom with ii Railroad Commission or the Dairy and ooa commissioner. Coed Read Greatest Need. The Pilot Commission is no longer a pub lic necessity. Its dutle can well be per formed by other public agencies having control or tn snipping. The report of the Highway Engineer eov. ers In detail the activities and expendi ture or the irgnwey department, and I i in sure you will find It both Interesting ard instructive. My short experience as a member of the State Highway Commission ha convinced me: First. That good roads are our greatest reed and o material development can come ik ithout them. e:ond. Many favor better road, but few are willing to pay for them. Third. That he who undertakes the con struction of roads gets dmned for the coat, but no credit for his effort. (rowth and iirosperlty depend largely v;ii our success In developing our re source and exploiting home products. The fact that w have within our borders such a large share of the world's timber should prompt cs to make every endeavor to create a demand xor wooa products, ravemen for many European cities are made from products of our forests, and I can see no reason why the same materials could nut be used to good advantage here at home. vn lth a view of encouraging the use wood blocks. It should become the policy or tne state 10 iavor tneir use wnen nign ways receiving state aid are hard-surfaced While the Bureau of Mines and Geology has been rendering a valuable service. should think It could be dune away with and the investigations conducted under the direction of the department of mines the Oregon Agricultural Collece. The State Engineer's office makes most Interesting report, but Irrigation projects built on paper have never been known grow alfalfa. The law requires that the Water Commis sioners shall devote their whole time the duties of their office. Carey Act Projects Idle. With a view of bringing about the reel mauon oi western ana Unas, congress, i 1H4, passed what is known as the Carey act. Jiy this act 1,000,000 acres of sue; land were allotted to the State of Oregon upon condition that It provide for Its recla mation and disposal in small tracts to actual settler. The Carey act was accepted by our Legis inture in iiwi. our law orovldes that tn state, through the Desert Land Board, may enter into contracts with private parties or corporations ior tne reclamation or these landsthe said concern to secure their profit and be reimbursed for their outlay through a Hen upon the lands. The first withdrawal In this state was made in April, 19u. Since that time, or during a period of 14 years, temporary and permanent withdrawals aggregating 750.000 acres have been made. While there Is still withdrawn for the purpose of reclamation &&.000 acres, but a little over 10 per cent of this acreage has been rcl aimed in, such a manner as to raise ordinary agricultural crops, and but two small projects, covering iojo acre, have been fully and satisfactorily completed by the promoters. All work upon these Carey act projects is at a standstill the promoters being un able to finance them. The situation Is sim liar to that which confronts most of these enterprise and is clearly set forth In letter received from Secretary of the In terior Lane, under date of February o. 1914. lie says: "It is now fairly well recognized that while some of the large private Irrigation enterprises have been successful agricul turally, nearly all. especially those requiring water storage or otner extensive works, have been failures financially. Owing to this fact, there are large amounts of bonds and stocks held by Eastern and foreign investors upon which the interest is d faulted. Thus there is, at this time, little hopo or securing additional capital for sim ilar Investments. "It appears, therefore, that no further large development can now be expected un less It is (a) by the use of public funds, state or National, upon which no profit or Interest is required, or (b) by the use of funds procured by tsxatton, as In the case of Irrigation districts and where also the question of profit and interest in the works themselves Ms secondary to the gain which comes to the whole community through the increased land values and the productiv ity of the soil." Waste of Money Charged. One Carey act concern, known as the Columbia Southern Irrigation Company, with i.wu-acre project on the west side of the Deschutes, near Laldlaw. Ore eon. after collecting thousands of dollars from oros pec live settlers, went completely upon the rot-ke. it was round tnat while water rights covering acres had been sold, only about 1000 acres were beinr served. Much of the money collected through the sale of water rights was expended upon the works, but was largely wasted through poor engi neering and construction methods. The state, having permitted Its name to be used in connection with the promotion of the project, carried a moral. If not a legal, obligation to see that It was com- Pleted and the lands fully reclaimed. In view cf this, an engineer's report covering the cost of an entire new system was sub mitted to the Legislature hv the P.ovnmnr : and upon the showing made that it would prove a profitable venture, the sum of S4fift 00O was appropriated for the construction of me worKs. With the exception of the diversion of a email mountain stream delayed on count of early snow the Tumain nm(M Is finished and the cost has been kept within ine appropriation made for that purpose. ine system opens tor sale water for 17.46 acres, and the price has been fixed at $40 per acre. ine sale of these water rights, therefore, will result in a neat profit to the taxpayers, as will be shown by the iouowing statement: Assets. 17.464 acre at $40 $698, 560.00 who ow-uuui oiu. vested water rights 6.617.89 J705.177.8S liabilities. Amount advanced by state $450,000.00 Interest due the state . 31,104.66 -'iu contract noidera 8ti.761 Broken top diversion 6,516.00 Profit to the state r.73,:t82.37 ... 131,795.53 The work on the Tumalo project has been under the immediate direction of O. Laurgaard, Project Engineer. His technical knowledge, combined with his splendid ex cut ivo ability, business sense and en ere v, ha given the etate the best possible system in the shortest possible time and at the lowest posslbie cost. It was but 18 months ago that the funds for the Tumalo project became available. Organization had to be perfected, survey made, rights of way pur chased or condemned, dams and many miles or canals constructed, yet the project stands completed today, ready to carry life-giving water through its arteries to the desert lands and turn them into productive field. The detailed report covering the work upon the Tumalo project ha been forwarded to you and i worthy of your most care ful consideration, especially In view of the fact that this Legislature wIM undoubtedly be caned upon to consider suggestions hav ing a bearing upon the dispoaitlon of i number of other projects, the affairs of which, like a nightmare, come at regular Interval to disturb the peace and quiet of your otherwise complacent public offi cials. There are those who will oppose any move ment to launch the state into irrigation en terprises, holding that It favor particular individuals and communities. They overlook the fact, however, that the state Is not only reimbursed for every dollar expended, but receives Interest upon Its advances and a profit beside: that by turning desert land into productive fields great wealth Is added to the state and all benefit thereby. Whatever the state may do to develop her resources adds to the prosperity and hap piness of her citizen and la therefore In keeping with the legitimate functions of government. Federal Aid Only Solution. It Is folly to attempt to lead ourselves Into thinking th,at our Carey act projects will be completed by private capital. The only solution Is state or Federal aid. and the sooner we bring ourselves to realize this fact and face the problem squarely, the sooner will we have the agony over. The ttlers upon a number of these uncom pleted projects have been crying out in the wilderness, and the only answer has been the echo of their own crie softened by assurances from state and company offi cials. The time has come, therefore fT the Legislature to call a halt. The Desert Land Board should be restrained from making further extension on old reclama tlon contracts or entering into new one and should be directed to relinquish to the Federal Government an lands now witn- drawn from entry and not covered by sat isfactory contracts. The foregoing recom medation. if followed, would relieve the state of a large number of projects now upon its hands. Tne predicament in wnicn we una our selves at tnis time is cue largely to an unbridled desire upon the part of the State Engineer to huHd up ana increase tne pres. tige of his department. The more projects. rood or bad. he can get upon the list tne more business his department will appear to be doing. The state therefor appropri ates year after year large sums to carry along and compile voluminous reports cov ert ne the progress, or rather lack of prog ress, of these "hot -air Irrigation schemes. which would better be undertaken fcy the Federal Government. The Desert Land Board, which has con trol of Carey act projects, consists of the Governor. Secretary of State, estate Treas urer. Attorney -Gen era I and State Engineer. This department should he abolished and the duties assigned to the State Land Board. The demands upon the clerk of the latter board grow less as land sates fall off and these new duties could be taken over with out any great Inconvenience. Should the State Land Board find need of legal or engineering advice, that of the Attorney General and the State Engineer will still be available. EXCERPTS FROM GOVERNOR WESTS MESSAGE TO THE LEGISLATURE. The fight for equal suffrage and & dry state has been successful. Additional safeguards have been thrown around the ballot through extending- the non -voting period of the newly-arrived alien and the old barbarous system of capital punishment has been abolished. If Doctor Economy would wipe out the epidemic of extravagance and lessen our tax burdens he must not confine his visits and his doses to the state, but must look well to the counties and cities and road and school districts. ' Our institutions are rapidly being placed In a splendid condition through the earnest co-operation of officials and employes, and as a result of thir efforts Oregon has been placed in a class by itself. The combined population of the two institutions (Insane Asylum and Home for Feeble-Minded) shows an increase of 17 per cent. This growth of population is alarming and drives home to us the necessity of giving earnest thought and study to the causes which produce this great army of dependents . . . By voting the state dry the people have taken a long step toward removing one of the causes. It is incum bent upon you, therefore, to take the next step and through appropriate legislation restrict, if not pre vent, the sale of habit-forming drugs. Oregon has been the dumping ground for the insane of all states and nations. Society should be more concerned in the reformation of the man than in the punishment. Organized labor has done more toward the solution of this problem (prison labor) than any other agency. The state is still entitled to several thousand acres of land under the swamp grant but it seems next to impossible to secure patent on account of the red tape entanglements which surround the General Land Office. Good men have been appointed from time to time upon this Board (Fish and Game Commission), none of whom, however, has been able to curtail the extravagance which, like barnacles to a ship, cling to the department. Automatic workmen's compensation? is a recognized principle in the industrial life ' of the nation and it is gratifying that Oregon has placed itself in the forefront through the enactment of legislation of this character. For nearly half a century the people have waged a continuous fight to determine whether the country should have a Government controlled by the railroads or railroads controlled by the Government. The smoke of battle is now clearing away and victory seems to perch upon the banner of the people. The railroads are becoming reconciled to the change and are showing a disposition to meet the new conditions. It is incumbent upon the people, therefore, to meet them half way and accord fair treatment. Such laws as" may be needed from time to time to insure adequate control should be favored, but all pin-sticking" legislation serving no useful purpose and tending only to create additional burdens and ex pense to be met in the end by the public should be frowned upon. Although possessing a larger amount of standing timber than any other state, we have failed td pro vide legislation needed for the "development of our logging streams. 1 Our loan shark law Is not what it should be and needs revising. Reform along this line Is greatly needed, as no one should be permitted to capitalize the misfortunes of others. The rural credit system has clone much for the farmers of Europe and its adoption In this country will relieve our farmers of many burdens which come through excessive rates of interest. The State Horticultural Society is a kind of vermiform appendix to the Board of Horticulture and as its use has never been discovered, it should be removed. Good roads are our greatest need and no material development can come without them. He who undertakes the construction of roads gets damned for the cost, but no credit for his effort , The State Engineer's office makes most interesting reports, but irrigation projects built on paper have never been known to grow alfalfa. Settlers upon a number of uncompleted projects have been crying out in the wilderness and the only answer has been the echo of their own cries, softened by assurances from state and company officials. The time has come, therefore, for the Legislature to call a halt. It is folly to attempt to lead ourselves into thinking that our Carey act projects will be completed by private capital.- The only solution is state or Federal aid and the sooner we bring ourselves to realize this fact and face the problem squarely, the sooner will we have the agony over. The state appropriates year after year large sums to carry along and complete voluminous reports covering the progress, or rather lack of progress, of these "hot-air" irrigation schemes which would better be undertaken by the Federal Government The duty of exporting the books of the state and county officials handling public funds was imposed upon the Insurance Commissioner by the last Legislature. His activities have developed the fact that while county affairs are as a rule honestly conducted, lax business methods and poor accounting systems result in- waste and extravagance. The turning in of the sunlight of publicity, however, is bound to make for improved conditions. The Emergency Board as a rule serves no useful purpose other than to furnish a convenient place to shift responsibility when it is desired to exceed legislative appropriations. Little or no progress can be made In the direction of tax reform unless amendments eliminating the old "equality" and "uniformity provision of our constitution are adopted. Strange as it may seem, these words defeat the very purpose fhey were expected to serve. Oregon is deeply Interested in the conservation question. The large land holdings of the Federal Gov ernment and Its attempts to control our undeveloped water power through an alleged riparian ownership make it imperative that we concern ourselves at all times in the movements which have to do with the molding of governmental action along these lines. There are representatives of organized greed and monopoly who oppose every conservation movement; their sole desire being freedom to loot the public domain. While lending aid to every legitimate move ment which will make for progress and development we should not be fooled Into opening the door to the land pirates. - ' The bill (Ferris) now before Congress is a production of Secretary of Interior Lane. In drafting this measure he has evidently tried, in the interest of progress and development to reconcile the differences between the East and West upon this great subject While our water power is fully protected by our effective state laws, we have an interest in the Ferris bill because its aim is to remove many of those Federal obstacles which have so long stood in the way of power development For a number of years after the Prohibition amendment goes into effect the friends of the move ment will find they have a much harder fight upon their hands than tliey had before the vote was taken. There are those who would crucify the cause (pronimtionj oy imposing penalties so araeuc mai no jury would convict. It has been suggested that having liquor in one's house be made a felony. Who, serving upon a jury, would vote to brand his neighbor a felon because a bottle of beer was found in his house? v Excessive penalties will not bring us a strict observance of the law; they will bring us nothing but hung juries, costly trials, disgusted taxpayers and revolt. Now that capital punishment has been abolished in this state, restriction should be thrown around the pardoning power of those cases where life sentences have been imposed. Unemployment Is not a temporary evil, but a permanent condition resulting from social maladjustment We cannot hope for immediate relief. Temporary relief in the long run only tends to aggravate the situ ation. A cry for relief went up from the overburdened taxpayer and you answered you would come to his aid. The time for action is at hand. The right to veto single items is a reform long needed and the Legislature should become the medi um through which a constitutional amendment along these lines may be submitted to the people. Insurance Department Gainful. A report from the Insurance Commissioner came recently aa a welcome visitor, for it carried the news not only of Increased rev enue, but, what was moat remarkable, decreased exoenses. Realising that our insurance laws wereeiiminatlng the greatlv in need of revision, this office ap pointed, in 1912, a special committee to Investigate our reauirements in tnis airec- tion and draft an entire new Insurance code, to be submitted to the Legislature. ThU rnmrnitiM was made uo of representa- tlve citizens of high standing and well qualified for the duty assigned them. The measure, when submitted, brought opposi tion from certain affected interests, which fact, coupled with a lack of time for proper consideration, resulted in its aereai. ii win again be submitted, either in whole or in Dart, at this session. The vast sums which leave the state each year for insurance premiums and the profitable naturet of the business seem to justify our carefully investigating the sit uation with the view of ascertaining whether ft would be nossible for the state to en gage In any of the branches with profit to Itself and saving to its citizens, i woum. therefore recommend that a committee be appointed with authority to Investigate tne matter and instructed to report to tne next Lecrislature. The duty of exoertinsr -the dooks or xne state and county officials handling public funds was 1m Dosed udoii the Insurance Co: mtssloner bv the last Legislature. His activities have developed the fact that while county affairs are as a rule honestly con ducted, lax business methods and poor ac counting systems result in waste and ex travagance. The turning in ot tne sun light of publicity, however, is bound to make for improved conditions. Emergency Board Not Needed. The Emergency Board 1c composed of the State Board, the President of the Senate, Speaker of the House and the chairmen of the two ways and means committees. The Legislature haa attemDted to give this board power to authorize expenditures and the issuance of certificates of indebtedness to cover. Such authority being equivalent to the power to appropriate money, belongs solely to the Legislature and cannot be delesated. The emergency oara. rule, simply follow the recommendations of the State Board and serve no useful purpose other than to furnish a convenient place to shirt responsibility wnen it is ae- sired to exceea legislative appropriations, Such Board should De aDoiisned. If it i desirable to throw restrictions around th incurring of deficiencies by the different departments, the power should be placed in the hand of the State Board of Control. which Is now largely responsible for the conduct of the business end of the state' affairs. Our Institutions of higher education are dependent on a mlliage tax for most of their appropriations and a similar policy should be adopted as to the balance in or der that they may be placed absolutely upon a permanent basis and relieved of the necessity of coming to the Legislature for support. At one time I was of the opinion that the several boards of regent of these in stitutlons should be consolidated. Close touch with their affairs, however, has con vinced me beyond a doubt that the exist ing policy of having seperate boards Is sound and makes for the best results. Section 5 of article IV of the constitution provides: 'The legislative assemmy anau. m ine year 1S63 and every 10 years after, cause an enumeration to-De made or aa me wane population of the state. section o or Lora uregon iaw pro- vid 'It shall he the duty of the Assessor of the several counties of the state at the time of assessing th e:r respective coun ties for the year IS 6 and every 10 years there mftnr tn take an enumeration of the In habitants and industrial products of the same- State Census Termed iseiesa. Sections 1743-4 of Lord s Oregon Laws provide that when said state census t taken n enrollment shall be made of all able-bodied persons liable to military duty. Inasmuch aa the Federal census I taxen every 10 years, the taking or a state census Is a useless expenditure of money and both the constitutional provision and the laws providing therefor should oe repealed. Should the enrollment of those liable to military duty become necessary at any time, it can be done through authority given the Governor by section S745 of the code. The Department or Taxation has control over the assessment, oi xne properties or te common carriers of the state and by its effort such nropertle have been brought to bear their just share of taxation. Through Its close co-operation with the assessors of the several counties It has done much to strengthen our laws and improve condi- lons in reference to assessment ana taxa tion. Little or no progress can be made in tne direction of tax reform unleji amendments formlty" provision of our constitution are are ever fighting tA cut our way through adopted. Strange as it may seem, these red tape entanglements at Washington and words defeat the very purpose they were open the door to legitimate endeavor, we expected to servS. The many tax amend- have always opposed the encroachments of ments submitted to the voters during tne i the selfish Interests. last few years have made it Impossible to I There are representatives of organized draw public attention to our real needs in greed and monopoly who oppose every con- this direction. Such changes as will permit servatfon movement; their sole desire being a reasonable classification of subjects and freedom to loot the public domain. To ac- taxation by "uniform rules' are necessary. c0mplish this end, they desire to seize every This reform has reached many states and onnnrtimitv tn nmmn mimi nt th mth. nas tne inaorsemeni oi expena uo mjntuou uc against the policies or the Federal Gov throughout the land. Changes Are Advocated. The changes suggested are as follows: Section 32, Article I: PRESENT SECTTON.IPROPOSED AMEND- No tax or dutyshalll MENT. be Imposed without No tax or duty shall eminent. A favorite method of attack Is through the charge that the Government has a largo acreage of agricultural land locked up in its forest reserves, and that settlers are tnu aeprivea or an opportunity to secure homes, and the development of the state is greatly retarded. This same cry resulted in restoring to th consent of thee imposed without the 1 entry in 1901 something tiver 705,000 acres people or their Repre- consent of the people in the Olvmoia National Forest. In the State sentatives in tne i.eg-or tneir Kepresema- 0l Washington. Notwithstanding the state islative Assembly; and lives In the Legisla- I ments that this land was free from timber all taxation shall beitive Assembly. Taxes and suitable for agricultural purposes, wlth equal and uniform. shall be levied and I in ten years 526,500 acres drifted Into the collected unaer gener hands of timber barons who had found the jai law and for public 1 lands covered with valuable timber. Over Ipurposes only: the its, 00-0 acre were included in five holdings. power of taxation shall and one man owned 81,030 acres. Of the (never be surrendered, entire acreage eliminated from the reserve, (suspended or contract- but little over 00 acres, or one-tenth of jed away. Section 1, Article IX, of Oregon: PRESENT SECTION. The Legislative As sembly ahall provide; by law for uniform and equal rate of as 'PROPOSED AMEND MENT. The Legislative As- one per cent of the eliminated area, appear to be under cultivation. This Incident teaches us that we should be wary of the cry of the wolf. While lending aid to every legitimate movement which will make for be fooled Into opening the door to the land pirates. Timber Resources Vast. Oregon has within her boundaries 545.- SOO.000,000 feet (board measure) of stand ing timber, or about one-fifth of the timber supply of the United States. Two-thirds of this timber Is held In private ownership the balance by the Federal Government. About 35.000,000,000 feet of the said pri vately owned timber was at one time owned old sembly shall, and the progress and development, w should not people through the in- oessment and taxa- itiatlve may. provide tion; and shall pre-by law uniform rules scribe such reguia-of assessment and tac tions as shall secure a'ation. Taxes shall be just valuation for tax-levied on such sub- ation of all property,jects ana in sucn man hnth rp.il nnri tiers on- ner as shall be pre al. exceDtine such oniy.scnDea Dy general for municipal, educa-Maw. Reasonable class- tional. literary. clen-!incations of the sub title, religious, or char- jects of taxation may I by the state, being part of her land grant. Itable purposes, as mayjbe provided, and spe- I A careful study of past events and th hA sneciallv exemnteu cine taxes may oe im-i recorae aiscioses: bv law. (posed. Taxes may be I 1. That had not the Federal Govern imposea on income, i ment inrougn ine creation or zoresc reserves from whatever source I withdrawn certain of Its land from entry or sources aenvea; i practically every acre or surveyea timoer such taxes may be land In this state would by this time have lelther proportional or 1 passed Into private ownership. cTaduated and pro- i 2. That tne lands now in private owner- gresslve, and reason- j ship are rapidly passing from the hands able exemptions may I of the original en try men and small holder Into the hands of a lew powerful timber operators whose aim b to control the timber supply of the united states. be provided. As a check to extravagance in state, onnntv Md municipal government some con stitutlonal limitation upon taxation should be adopted. A plan suggested, and which seems to carry iner.i r-ed f thr corporations. They also show that by any political subdivision nd !lttle over 50 per cent of this timber is iiiuae ul iMo. nn owned by a group of thirty-eight holders. say 5 per cent, and that an increase beyond southern Pacific Comoanv fthroui The timber records for the Pacific-North west show a little over 23 per cent of the privately owned timber to be In the hands the said limit must be ratified by a refer- , endum vote within the political-suoaivision concerned. Bv an act of Congress, si I aped through a few years ago, a railroad company was given : th n-HvHnire. of surrendering a large acre age ofworthless lands within the boundaries! The .Southern Pacific Company (through the O. & C. R. R. land grant now in litiga tion) claims ownership to 71 billion feet of timber In this state, and the Weyerhaeuser Timber Company owns 18.7 billion feet. At the rate of cutting which has prevailed during recent years these two holdings could supply the 46,500 sawmills in the United of the Olympic Ntnal Park In the state gtate for fou; and one-haIf years, and all lieu thereof from the public domain a like acre a ire of surveyed or unsurveyed lands. This rie-ht has been largely exercised and within the "borders of our state. Thousands of acres of magnificent timber land, unsur veyed and therefore not open to settlement or purchase by private individuals, have been taken by tne raiiroaa mrongn tne 111 ing of the said forest reserve scrip. Being unsurveved and unpatented, these lands are not listed for taxation. An endeavor should be made to locate all such selections and, if it is found that they cannot be defeated. surveys should be demanded In order that patents may issue and ths lands listed for taxation. Plea for Conservation Made. of the sawmill in Oregon, Washington and California for nearly thirty years. The acreage of the privately owned timber in this state is distributed as ionows: Acres. 1 Southern Pacific Co., 22.6&. 2.300,000 30 Other holders (averaging 66,666 each ) 19.5 z,oott,w rs Other holders (averaging 22,000 each) 16. l7c 1,650,000 80 Other holders (averaging 6.875 each) 5.3 550,000 171 Other holder (averaging 3,21$ each) 5.3 boO.OW 521 Other holder (averaging- 1,098 each) .&& 673,000 2.906 Other holders (averaging 33s each) 9.5 97,OO0 t t.h aii vmir narticniftt- attention to 13.185 Other holders (averaging 12S inianH t rnnrt recntlv Issued hv the I each) 15.3 1,682,000 rwavAn r-rtn tnrvs r i An Commission. The re- r".Dw- ,rtm tn. .,- ,-lri. a vnrM of 1 ' Total voinohi information and offers food fori The above holder v, . n ,n u-aum in rot-oat them, i residence a follows solves in the Questions which make for the Residing upon the land 3,838 yiuwu. r ,C7 iuo laiiu ............. r..--. 10,278.000 are classified as to sources. Orearon Is deeply Interested In the conser vation question. The large land holdings of the Federal Government and Its attempts tn control our undeveloped water power, through an alleged riparian ownership, make it imperative that we concern ourselves at all times In those movements which have to do with the molding of governmental ac tion along these lines. Oregon stanas ine cnampion ot a pot Non-residents Addresses unknown 3,657 3,106 Total 16,968 Private Holdings Great. It will be noted that a single holder con trols 22.5 per cent of the timber acreage; 21 holders control 42 per cent: and 106 holders control over 58 per cent. The forest reserve holding or tne federal (government frv of conservation which, while making! in this stats amount to over 13,600,000 acre. for the early development of our resources, but perhaps not to exceed one-half of this ill turow every saieguura arouna idctc i acreage carneo mercimuiauio iimwr, equality' and "uni- great birthrights of the people. Whil we' Oregon has within her borders undeveloped water power to the extent of over S.OO0.0W norsepower, or jo times tne oeveiopea pow er at Niagara Falls. We are, therefore, deeply Interested in the question as to who shall control development the state or the Nation. The question Is of particular In terest at this time, as there is a bill now before Congress authorizing the Secretary oi the Interior to lease, for power site pur poses and rights of way for pipe and trans mission lines, lands In National forests wljich control many ot our great power possibili ties. That the waters of a stream, as to their appropriation and application to a bene ficial use, are subject to state jurisdiction no one will seriously deny. In tact, state jurisdiction is recognised by the Federal Government and compliance with state laws governing the appropriation of water is Imposed as a condition precedent to the lease of Government lands to be ttsed in connection with the development of water power. The position of the advocates oe tiovernment control is well stated ty rresv dent Taft in a message to Congress In re la tlon to the conservation of our natural re sources. President Taft Quoted. The President said: "With respect to the public land which lies alonar the streams offering opportunity to convert water power into transmissible electricity, another Important phase or toe public land oueBtlon is presented. There are valuable water power sites through all the nubile land states. The opinion Is held that the transfer of sovereignty from the Federal Government to the territorial gov eminent as they became states included the water power In the rivers, except so fsr as that owned by riparian proprietors. I do not think It necessary to go into a discus ion of this somewhat mooted question of la.r. it seems to me sufficient to say that the man who owns and controls the land along the stream from which the power is to be converted and transmitted owns tana which is indispensable to the conversion and use of that power. I cannot conceive how the power in streams flowing through the public lands can be made available at all except by using the land Itself as the site for the construction of the plant by which te power Is generated and converted ana securing a rleht or way thereover lor trans mission lines. Under these conditions, if the Government owns the adjacent land- indeed. If the Government is the riparian owner It may control the use of the water power by Imposing conditions on the dis position of the land necessary in the crea tion and utilization of the water power.' Congress, through the Desert Lund Act of March 3, 1S77, declared that "the waters of all lakes, rivers and other sources of water supply upon the public lands, and not navi. gable, shall remain ar.d be held free for the appropriation and use of the public for irri gation, mining and manufacturing purposes, subject to existing rights." It is admitted by those who Insist upon Government control that such control or supervision can be exercised only through limitations imposed upon the dlsporal of power sites upon '.he public lands, for the waters or streams us to tneir appropriation and application to a beneficial use are sub ject to state jurisdiction. Ferris Act Thought Helpful. The advocates of state control contend that this is an arbitrary exercise of power upon the part of the Federal Government; that up to the point of controlling naviga tion the state is sovereign In all matters pertaining to the control of the waters within Its borders; that the Federal Gov ernment in Its ownership of public lands within the state stands as a "proprietor" and not as a "sovereign." and that In leas ing its lands for power-houso and dam sites, rights of way for pipe and transmission lines the Government Is entitled to the same consideration and - compensation, and no I more, as Is any other land owner. The bill (Ferris) now before Congress li a production of Secretary of the Interior Lane. In drafting this measure he has evidently tried, in the Interest of progress and development, to reconcile tne differ ences between the East and West upon this great subject, tie has tried to satisly tne i.ast by recognizing tne Government s rign to control, as heretofore stated, and the West by aiding development and sharing the revenues. While our water power li fully protected by our effective state laws we have an interest in the Ferris bill be cause its aim Is to remove many of those Federal obstacles which have so long stood in the way of power development. One of the greatest drawbacks to the set t lenient cf the vacant lands in many of the arid and non-Irrigated sections of the state is the lack of water for domestic purposes. Owing to the depth the settler must go in order to get water, and the great cost at tached thereto, the sinking of a well Is usually out of the question. Water1, there fore, must be hauled often many miles. Farm life cannot be made attractive under these conditions, and it is the duty of the state to meet the situation and offer some relief. Provision should be made for the drill Ing of wells at such points as will best serve communities. By thus placing adequate domestic water supply within reasonable distance, you will remove one of the most serious obstacles In the way of the early settlement and development of our dry farming sections. Little progress can be made by a settler who Is obliged to spend so much of his time on the road hauling water. No opportunity to develop our re sources and add to the happiness and pros perity ox our people should be overlooked. A reasonable expenditure in aid of these dry districts will prove a great boon to the struggling settler who is doing so much to develop the West. Water Needs Set Forth. Perhaps one of the most Important and difficult problems which municipalities are called upon to solve is that of securing an ample supply of pure mountain water. It is well known that there in a number of cities, towns and public Institutions in the Willamette Valley greatly in need of a bet ter water supply, and. while it would be out of the question for many of them to undertake single-handed the Installation of an extensive system, they could with pro priety join in a co-operative movement leading to the construction of one which would servo the needs of all. While this might be looked upon as pure ly a local problem. It should not be for gotten that there are many such matters which can only be solved through state cooperation-; that cities and towns are but units which go to mako up the state, and that whatever may be done toward their i betterment benefits the state es a whole. Having called the matter to the attention or tne Legislature or i:u, at tne last ses sion I submitted a measure giving the Stat Board power to secure water rights rights of way as might be needed by these cities and towns. Although this bin car ried no appropriation and was merely for the purpose of laying the ground work foi a great movement In the public Interest, it received only that consideration necessary to rocK it to tne deep and lasting legisla tive sleep which Knows no awakening. The State Board of Health haa made careful investigation of the water supply of the Willamette Valley cities and gives Its Indorsement to the proposed plan for co-operation. The following statement shows the existing means of water suppl for ten Willamette Valley cities and towns and tne several state and .reaerai institu tlons. showing the source of suDDly. th method of purification, the means of de livery and the class of ownership: Albany, canal from Santiam River, filtra tion, pumping, private corporation. Brownsville, Callapooia River, none, garv- uy, municipal. Co burg, shallow well, none, pumping, private. Eugene, Willamette River, filtration; ha of lime, pumping, municipal. Harneburg, well near Willamette River, none, pumping, private corporation. Jefferson, millrace from Santiam River, none, pumping, municipal. Junction City, well near Willamette river, none, pumping, private. Salem, gravel bar In Willamette River, sand filter; he of lime, pumping, private corporation. Springfield, mill race from Willamette River, filtration, pumping, private corpo ration. Capitol, Salem Water Company's service, filtered, pumping, private corporation. State Hospital, drmKing water from well; mill creek for other uses; none, pumping, state. Feeble-Mlnded Institution, shallow wells. none, pumping, state. Tuberculosis sanatorium, spring ana weii. none, pumping, state. school ror Ktma, &aiem water company s service, filtered, pumping, private corpora tion. School for Deaf, Salem water company service, fiuered, pumping, private corporation. Penitentiary, wells on Penitentiary grounds, none, pumping, stste. State Training bcnooi, .Batter spring, aiso Mill Creek, none, gravity, state. State Industrial bcnooi for uiris, wen on ground, none, pumping, state. Fair Grounds, wen on ground, ma ureev. none, pumping, state. T-nivtrs tv of Oregon, augene city water service, filtered, pumping, municipal. United states maian &cnooj, wen on scnooi grounds, none, pumping. Federal Government. Clear Lane veeiraoie rource. These cities, towns and Institutions have st nresent a total population of about n,- i 000, It is estimateu, oowsvsr, luei u wiu reach ll' '.000 in 15 years, and close te Hi.. 000 in -5 years. The State Board of Health, through Lout C Kelsey. its consulting engineer. hs chosen, Clear Lake as a source of aler supply. Perhaps nowhere can be found a better one. Clear Lko is beautifully situated near the foot of the Three blisters, in the heart of a Federal forest and ths t'ancade Mountains. Repeated examinations prove t tie waters to be of exceptional purity. The lukc is a natural reservoir mt discharge approxi mately 4m cubic feet per com! tn tha Summer season. This minimum discharge Is sufficient to supply the n'.u of a mil lion and a half population. The water could be delivered to I he clt if s hi the si Icy av about the same pressur as normally ob tains In the city of Portland. My purpose In calling this matter to our attention Is that steps may he taken tn se cure title to this wonderful reservoir and lis crystal waters that same may be lie Id tn trust for the people and put to a beneficial use when the rircumstam-rs and renditions w HI justify a co-opcratie movement along the above suggested lines. Experience has taught us the need of legislation which will protect the txpvra against the payment of excessive puma when private propvrty Is taken tor publto use. Owners are entitled to Just compensation, but not to exorbitant prices. Hmperty im supposed to he assessed at something near full cash value, and a law limiting th amount to be paid In condemnation cs to double that of the assessed valuation would save thousands of dollars for tha tax payers and at the same time Insure fair treatment to the property owner. $00,000 Fund Not rrd. The last Legislature appropriated $.A.H for the use of this office in recovering pos session and title to the old publlr leva near the foot of Jefferson street, Portland. Or. ( am pleased to report that I was able to per form the mission without the expenditure of any part of the appropriation. The small mount of expense cotiuected with the ad justment of the matter was taken care of by the City of Portland. y an act or tne last Legislature, the iov- ernor was directed to make .an Investiga tion of the claims of the stale and'sewrttl counties In and to the right of way form erly ued a a wagou road between Port land and The Dalles. While this invest I -tion was under way the rait roe J company nd counties interested amicably adjusted all differences and further action upon try part was made unnecesssry. Hut a smu il part of the appropriation provided was expended. In accordance with instructions contalnrd In Senate concurrent resolution No. 1 7. passed at the lust session of the Leslsis ture, i have examined into the law and the facts having a bearing upon certain fisn chlses granted In years past by the Leui lature and now held by the Portland tias 4 Coke Company, and my findings will h submitted in a special report. Hnt one-hslf of the expense authorised by the Emergency As a result of the lust election this stsfi will be "dry" January 1, HMtJ. For a num- ber of years after the prohibition amend ment goes Into effect, the friends of the movement will llnd they have a mm h hnrrlr tight .upon their hands than thuy hud before the vote was tiiaen. Advice to 'Ir.vsM Uitoletl. Wllllsm Allen White, of hanxHf. w ho speaks from experience, htts this to say to the people of Oregon: "The great danger to th temperance cause and the prohibition cause wm not before the election, but It Is now after thn election. You have only the opportunity to enlist: you havo not won the right. Prohibi tion will prohibit only as men and women of faith and courage put their Hvn Into ii. You Oregon people must be willing to stand jeers and insults; you must be willing to go down into your pockets and spend mnn. You must give your time and lose patron age from your business. You must have faith to see those who thought they ruuil vote in the millennium grow weary and go back to the flesh pots. "In ten years, perhaps In less time, but in ten years surely, you will have begun to win this fight, but it will tske courage and common sense and faith thst moves moun tains. The fight is not won. The time for - -cheerful fighting has just begun." If prohibition is to be made effective th "dry" amendment to our constitution mut be supplemented by such legislation as will give the Governor of the state, who Is charged with the enforcement of the law, an effective means of enforcing t he law. There are those who would crucify the caure by Imposing penalties so dratlc that ni . jury would convict. It has hepn suggested that having liquor In one's houo l mnn felony. Who serving upon a jury would vote to brand his neighbor as a felon and nd him to a felon's cell bees una a bottle of beer was found in his home? Montesquieu says: "If we examine the cause of all defiant of law, we shall see that It Is to be found in the failure to punish crime, not In the moderation of the penalty." These words are us true toils y as they were In Montesquieu's time and are worthy of your thoughtful consideration. An effect ive law carrying reasonable penalties strict ly enforced will produce result a Kxcesslv penalties will not bring us strict oiprv- nce of the law; they will bring us nothing but hung Juries, costly trials, uisguxted tax payers and revolt. Power Anked for (inventor. Section 10 of Article 5 of the Conntliut Ion provides that the Governor shall take oar that the laws he faithfully executed. Those who made this provision a part of our constitution undoubtedly assumed, and they had a right to so assume, thst t ha Legislature would promptly provide, throtish adequate laws, a means by which this man date could be fulfilled and without resort - ng to certain extraordinary remedies pro vided by the constitution. If the Governor Is to be charged with the enforcement of the law he should be fnltv provided with the means of performing that duty. Among other things, he should re given, fro from any red taps restrictions. he power to remove and appoint succrnhors to district attorneys, sheriffs and constables. whom he may find refusing or fulling to enforce the law, or otherw ise perform the uttes of their office. The Governor should he given now r to call upon the Attorney. General for assist nee In all matters pertaining to law en forcement, and to this end the hands of he said official should be strengthen"!. The Attorney General should he flwn gen era! supervision over the ofrtces of the sev eral district attoriu and the power to direct their activities wlvn the oreasloti so demands. Kuch and every dlst rlct at torney should he required to make monthly reports advising liliti fully a to the prog ress of the office. It Is well known that prompt action I had by the Federal Government In all mat ters passing through the hands of Its severs! United States Attorneys. This Is due Inrseiy to the fact that monthly reports ar mai . to the Department of Justice at Washing ton. The Attorney-Oenerai Is thus kept fully advised as to the work of his subor dinates. These reports set forth th dotitt entry made In each cas pending at the date of the last monthly report; also tha new cases and every conviction, acquittal and d lemlssal In fact, all transactions of tbe office. Graft Invited By System. Should a tike system come to prevsll In this state it will go fsr towards bringing order out of chaos, raising the standard of efficiency and promo t Ing law enforcement. as it is now, each district attorney enforce, or fails to enforce, the law In Ms own peculiar manner. This Inck of uniform H y nd system opens the way for fsvorltism and graft end throws many obstacles In the way or law enforcement. Should the aforesaid recommendations hs made the law by your honorable body, I am sure the executive office and that of the Attorney-General will be fully advised at all times as to the work of the District Attorneys, an effective means for enforcing the law will be provided, and the nec!ty for resorting to that extraordinary constitu tional remedy th militia practically elim inated. 0 Now that capital punishment has been abolished in this state, restriction should be thrown around the pardoning power In those cases where life sentences have been Imposed. It baa been suggested thst no pardon should be granted In tu h raws ex cept upon recommendation of the court which originally tried th case. Unemployment 1 not a temporary evil. but a permanent condition resulting from social maladjustment. We cannot hope for mmedlate relief. All we can do for the present la to treat .the evil with "peWfis remedies, making the best pagiMe dutribu- ion of idle labor and available industry. Decent wages should be paid and proper working conditions provided, as the prob- em is not one or cnarity. A oermite ann permanent policy should be striven for. Temporary relief In the long run only tends to aggravate the situation. Employment Agencies Rebuked. Many private employment agencies hav been guilty of abuses that have blacksned them In th public rye. Whether thfve agencies can constitutionally be abolished debatable question. 7 ne court may ot be Inclined to permit trior than refus ion, which might remove many of Hie abuses, but could hardly create efficiency. seem to me that a step in th rig tit traction would be th ostab Huh ment of a te Lmployment rtureeu, with the power It (Concluded on Pag 14.)