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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
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
"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.
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
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
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
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
My short experience as a member of the
State Highway Commission ha convinced
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
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
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.
"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
"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
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
17.464 acre at $40 $698, 560.00
who ow-uuui oiu. vested water
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
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
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
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
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
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
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
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
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
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,
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
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'
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
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
'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-
'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
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
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
Section 1, Article IX, of Oregon:
The Legislative As
sembly ahall provide;
by law for uniform
and equal rate of as
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
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
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.
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
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
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:
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..--.
are classified as to
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
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
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
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-
Co burg, shallow well, none, pumping,
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
Springfield, mill race from Willamette
River, filtration, pumping, private corpo
Capitol, Salem Water Company's service,
filtered, pumping, private corporation.
State Hospital, drmKing water from well;
mill creek for other uses; none, pumping,
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
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?
"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
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
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
(Concluded on Pag 14.)