e o o o l us o .0 -' r E Oregon City Enterprise. 0 !- tj i i :l. j3 r lin" IMYERXOR'S MESSAGE. Gentlemen of thr. Lcrjit'o.tivr ArnitLi : , . O In entering ujh.ii a second tern; as Chief live of the State I congratulate you. as the repmoi tativesof the people, upon t noticeable progress in our affairs und the marked diiloprnent of our resources which have distingu fled the bust rour vears of our history. No Statf hould be more Iieartily thankful for abounding Itural resources at the hand of un all-wise Prov.cc. Since your List meeting the blessings of goTi order, bcaln, generousJiarvesVi and general prosperity have pre- Vou assemble here under happy auspices to con suit for the continued prosperity and, by judicious legislation, to promote the common good of our vigorous and proud young commonwealth. It becomes n dmv to tender to you such infor mation of thf present state of public affairs as may appear uppropi-i.it): to the occasion, and to maHe such recommendations as may lw pertinent. . A detailed statement of the condition of the Chief Departments will bo laid before you by their reppe tive heads, to which I respectfully refer you for full jTsiccou'its of their workings. 1 here present a con "deiised statement of the financial condition of the State. l'liiuiie-s. The balanoe-s in the Treasury at the close of the financial vear. September 6. 1S7J, were ?172,.ryT 41, to the credit of the several funds, as follows ; General Fund (including 84,811 :V3 for ad vertised warritiits, coin S r.,.r33 91 General Fund, currency S7- W Common School Fund (principal 51,-.!,-o 'J, interest. ?1. -''$ lb;, co n 2,401 69 Common School Fund 'principal, IS, interest, $U'7" .'., currency 1 "?! 9? l'uivcrity Fund, coin M j University Fund, currency 2.d 14 Sprte Land Fund, coin 2"...Vi7 lt State and Fund, currency :i.,13 00 Five Per Cent. I". S. Lund Sale Fund, cur rency 13.30ii OS Ef l.c Jt V'und. coin 1M'2 -1 Kscheat Fund, currency - .' ' Soldiers' Bounty Fund, coin.. f.9.fl 4S Soldiers- Belief Fund, coin 14,370 Do Total balance, as above Sl72,''7 41 Kr.CKII-TS. Received since, into the Treasury, the sum of 775 oi. to the credit of the following funds: tener3 Fund (including onerwnd one- half'miiU Belief and Bounty tax), coin..51G0,C'.'r. 22 General Fund, currency 4 ST. H) Common School Fund Principal, coin 19, M 10 currency.. ;,'.; 20 Interest, coin 4o,.so; as " " currency.. 14.tlt ti7 rnivcr.-.itv Fund, coin It'.dO 51 University Fund, currency Kscheat Fund, coin 5.S10 3o State Land Fund, currency 'V-19- V-! State Land Fund, coin iSu.lUO ; Five Per Cent. U. H. 1-and Sale Fund, cur- rencv - 30 Agricultural College Fund, currency W4 n Swamp Land Fund, coin ...... o,Wu .) State Capitol p.uii.ling Ijind Fund. coin.. n 00 Tide Lund Fund, coin i.,0-J. To Total 28 ,775 01 I)blU'ILHKlK.NH. Pai'l since, out of all the funds, the sum of SG03,- m-i j-, t.- tli. debit of the following funds General Fund, coin n General Fund, currency , Legislative Fund, coin J. Penitentiary Fund, coin Judicial Fund, coin Kxcentive Fund, coin Insane Fund, coin -. Convict Fund, coin Printing Fund, coin Incidental Fund, coin Penitentiary Building Fund, coin State House Building Fund, coin Fuuitive Fund, coin Indigent Fund, coin Agricultural College Fund. coin.. Common Scliool Fund Loans, coin Common School Fund Ix.ans. currency... Common School Fund Interest (distribu- tiin and cxpen-es , coin f Common School Fund Interest '.distribu tion ). currency ; University Fund Loans, coin L'nivcriitv Fund I.oans currency 47,2m 7(5 4."i 00 24.011 W 4S.7D1 51 :y;.7'8 ri 14.S1C2 11 01. M 4 si; 4.5-tl I.S l),s::s T.i J1.JO0 KT fd.!NW 7S yn.ttiii ) :5t7 77 2..M7 4:5 77:i 15 lfi.'js; 74 5,0:!5 70 41,452 '.15 13.IW5 7S It", (-,85 (16 1, (KJ0 00 25.1 ! Kt 32,14-S 77 07 00 35,017 25 18,520 80 5,5.; 32 .m; Ckj 2, 51 24 Soldiers' Bounty Fund 'exclusive of State Hous buildinir transfer), coin Soldiers' Belief Fund, coin t State Land Fund, cuirency I a, State Lainl Fund HV.r Lock Bond I lift-rest and expenses Five Per Cent. C. S. Lund Sale Fun rency Swamp Land Fund, coin Htnte Capitol Bu'ldisg Laud Fund Ti.le Land Fund, coin Total Stk-.;5.1'J3 45 Leaving funds in the Treasury, September 14, ls7t. gU, 17S l7, to the credit of the s.jveral funds, as follows : General Fund, ( ol.i ? l.'dO 19 (ieneral Fuucl, currency 1.000 o0 Common School Fund Principal, coin 4.'isl '.'5 " " currency 2,55 S3 " " Interest, coin 5t'.l KJ " " " currency l,72t". S University Fund, currency 2.1 4 S3 Kscheat Fund, coin 7.42:i 27 Fch-at I'und, currency 1.7S5 37 Bounty Fund, cm 21.613 ?7 Belief" Fund, coin 21.054 fe' State House Building Fund, coin 10 00 State IjxihI Fund., coin 15.S50 47 State Land Fund, currency 5-1,945 98 F ive Per Cent. C S. Land Sale Fund, cur rency - 5 53 Agricultural College I-aud Fund, cur rency . 904 50 Swamp I. ami Fund, coin 51 IS State Cnpitol Building Land Fund, coin.. 04900 Tide Land Fund, coin 171 ol Total S13S.17S Lialililles of tlie Slate. 97 no.NDS. Outstanding Soldiers' Bounty Orjstandii!g Soldiers' Belief .5 20.500 00 . 20.717 00 517,247 00 LOCK BONDS. Payable out of Internal Improvement Land Fund, and Five Per Cent. Land Sales $200,000 00 WAOON" IHI.U) .VAKRANTS. 1'iiyable out of Swamp and Tide Land ami Five I it lent, l . . uwu aie Funds S T AT K W A I! II A NTS. ...S 01,550 00 Outstanding, on all accounts, payable out oi Stat,. ICeVeliue .52S7.459 00 It will he obstrved that the aecuicuiations in the Soldiers, Bounty and Belief Funds ur nearly suf t'. ient to pny off the Bounty and Belief Bonds, and that the Lock Bon. Wand the Wagon Boad Warrants ktand against resources in hand sutlicient, when available, to liquidate this doss of liabilities, so that the only liabilities puyaarte out of the revenue of the State are the outstanding State warrants. There has been an apparent large increase of out ownding warrants since my last biennial messaire. This is owing to the fact tlit nearly all the warrants drawn on the Treasury from lsOH to hs'u were sus lendcd lbrtlie reason thai they were drawn without un appropriation having first been made for their pavment, the Legislature of 1 sr.s, having adjourned without makinii the general apropriitions. The Assembly of lSToprovidc'l for the payment of n part otilv of these warrants while the balance were car no" forward to be provided for by the lust appropri ation hill. In addition to the payment ot the lace f these warrants an addition of thirty per ctnt. average increase upon their face has ha'd to be paid lor intcrt st. on account of the suspense. Agfiin.no building tax was levied for the con Ktructioii of the new Penitentiary, and the entire cost, except proceeds of convict labor, was paid by warrants on the Cieiicral Fund, which was sutlicient inlv for the current general expense, and the de votion of convict labor to this work swelled the ap propriations for the support of the prison. There were several appropriations made by the last Legislature which need not be. and should not 1 repeated. Our state Constitution limit? the in debtedness of the state to fifty thousand dollars. The provision is iw follows. Article lo. Section 7. 'The Legislative A-sembly shall not loan the credit of the State, nor in any manner create any debts or liabilities which shall singly, or in the aggregate with pre ions debts or liabilities, exceed the sum of tiltv thousand dollars, except in case of war," etc. It is contended by some that this provision refers to funded debts only, and not to the margin of out standing warrants issued for current expenses. But it appears to me that the iorm of the liability, does not vary the binding fore.- of this restriction. The aiftcregate of P.ll indebtedness against tWe State should be within b:ly thousand dollar In fact, it was the evident intention of the trf Suite Coiist'.MiUoiLlhnt the State should tree from debt. : Article?, Section 2 provides that: :rs of our . absolutely 'The Leg!.s- lative Assembly shall provide for raising revenue MUhcient to deiray lhcex-uc.s or the State for each fiscal year, and also a sutlicient sum to pay the in-tere-t on the State debt, if there te any." " Section 0, of the same article, provides that: "Whenever the expenses of any tiscal year shall exceed the in come, the Legislative Assembly shall provide for levying a tax for the ensuing fiscal year, sufficient, with other sources of in-ni,i. t pay the-deficiency as well as the estimated expense of the ensuing liscal year." These are positive mandates of our fundamental law. The Legislative Assembly is made re.-ponsible that the State be free from debt. I desire to co-operate with you to enforce these re quirements literally. The sole reason why execu tive sanction was refused to the emigration bills of two years ago was that no means was provided to meet the expenditure proposed, and that tl.e gen eral appropriations already made exceeded the rev enue, while the General Appropriation Bill could not be modified by Kxcentive action without veto. ing the whole bill at the heel of the session und dis- organizing the state Government. ou w ill there fore appreciate the eorelative duties of the Legisla tive aii.'rT'.xccutive Departments upon this subject- t he levy ter current Kvneral revenue, bv Act of October zz, jsoi. is tive mills on a dollar. The mili tary tax is a mill and a half on a dollar. But, owing to a general misapprehension of the law, four mills only L?r p-.neral Situe purposes have been collected luring the last four years and fur some time pre viously. One mill of the military tax can now be dispensed Willi, as the military fund is jiow nearly su'.lieient to pay oft the balance of out-aanV.nK Military Bonds. Beducing the military tax one mill it might be well to institute a half-mill buildinu tax to stand until all public buildings are comolete'd' and to restrict, absolutely, ull aiinrot .ri a r i.,iw r.t. building purposes to the resources of the Buildine Fund. Let the State tax he re.hir.xt t..r.. m.f and coutme the current general expenditures to the revenue arising therefrom, and let the other half mill, taken from the Military Fund, be transferred to create a Sinking Fund with winch, to liquidate the excess of outstanding warrants. A more simple, and perhaps m the end a more satisfactory plan would be to let the general taxes stand as they are for the present. Collect the live mill State tax. but confine current expenditure within a four mill revenue, until there fchali be no outstanding State warrants, then reduce the State tax one mill. Draw upon the surplus military fund for State House expenditures, as heretofore, until the Capitol can be occupied. Liquidate all military warrants, then repeal the military tax altogether. LOCK BONDS. The accumulating funds from the Internal Im provement Grant should be placed at intcrtst, and authority be given for the gradual liquidation of these bonds as the funds for their payment increase. As the faith of the State is pledged for the adminis tration of the Internal Improvement Fund so as to meet these obligations, prompt and sutlicient appro priations to meet the maturing coupons ure impera tive. PC BMC LANDS OF THF. STATE. By the act of the Legislative Assembly of October 13, 1S62. the Governor was empowered and directed tolixjate ell the lands to which the State was enti tled under the several acts of Congress making grants to the State. The condition of our public land interests, at the timeof my entrance upon the duties of the guber natorial office, four years ago, was fully set forth in my last biennial message. Since that period the work of securing the interests of the state, in these public grants, hasbteaaily progressed. INTERNAL IMPItOVEMENT CiltANT. The full amount of the Internal Improvement Grant ol tive hundred thousand acres, held under act of Congress of September 4, lsll, lias Ix-en se lected and finally approved to the State by the Sec retary of the Interior the exact quantity'so vested being 500,000.99 acres, as per final statemeM of the Commissioner of the General Land Office, U-armg date February 0, 1S74. I'NIVKRSITV LANDS. By act of Congress of February 1 1, 1459. admitting the State of Oregon into the I'nioii. seventy-tw o see tions. amounting to l'orty-six thousand and eighty acres of land, were set a'nart and reserved for the use and support of a State University. These lands have been fully selected and the quantity of 4 1,300 hi acres have been finally approved bv the Depart ment of the Interior. The limited balance w ill be approved in lh due course of ollicial business, INDEMNITY COMMON SCHOOL LANDS. The lands taken in lieu of the sixteenth and thirty-sixth sections in each township, held for common school purposes, under authority of the act of Con gress of January 7, 1S53, have been selected as fast tis the surveys have been completed in regions where the settlements have preceded the surveys. In all caseii where ihesetllementii have not reached newly surveyed lands, at the time of the surveys the sixteenth and thirty-sixth sections become vested in the State without listing, by force of the original grant for common school puroses. The amount of the Indemnity Common School Lands so far selected and approved by the General Land OMiee, is one hundred and nine thousand, seven hundred and nine ceres. The amount selected and awaiting examination for approval is tive hundred and eighty acres. These selections cannot be finally completed until all the public land of the State shall have been surveyed by the General Government, AGKICCLTC1LAL COLI.K0E LANDS. The condition of the land granted by Congress by Act of July 2, 1S02, providing lor the establish ment of Colleges in the .several States for the "bene fit of Agricultural and Mechanic Arts, was" f ull v stated in mj-last biennial message. On account of obstacles therein set forth, the lauds selected under mis grain naa not oeen approved, although they had been selected by a Commission created and authorized by the Legislative Assembly at its regu lar session in 1S0S. The special Act of Congress touching this subject: approved June 4, 172, provided, in section second thereof, "that any such selections already made by said State (Oregon; and the lists dulv filed in the proper district land office, be and the same are hereby continued, except so fur as thev may con tact with any adverse legal right existing at the passage of this Act." On examination of the lists of these lands for iinal approval by the Commissioner ol the General Land Office, thev we.e found to con tact with the Klamath Indian Reservation and that the quantity of lo,0ti acres of the same lav within said reservation. The boundaries of the reservation were not definitely known to the Com mission charged with the duty of selecting these lands, hence the conflict. The amount of 79 23-5 17 acres of this grant Ls now finally approved, and the lands have been ottered for sale pursuant to the provisions of the Legislative Act fur that purpose approved October 2S, lf72. The amount to be selected anew, alter all rejec tions for conflict, is 10,761.s:: acres. The selection of this balance has not been hastened, for the reason that lauds of a greater value than now obtainable can be listed after the public surveys have been fur ther extended. These lands have not been disposed of as rapid! v as was expected when hist ollered lor sale. It is thought by some who are well acquainted with tiie premises that the limitation of the statute providing for their disposal requiring sales to be made to acv tual settlers only, and in quantities of not more than three hundred and twenty acres to each settler, are obstructions in the way of sale. It is asserted that the lands selected are better adapted to gTazingpurposesthan to general agricul ture, and that more than a half section is necessary tor a profitable stock ranch, while those who al ready own three hundred and twenty acres of land are debarred by the statute from purchasing anv of the Agricultural College selections. it is certainly a good public policy to divide the public lands of the State into asiiianv home steads as is compatible with successful settlement. but the early disposal of these lands, in order that the funds arising therefrom may be made available for the .support of the Agricultural College. Would seem desirable. The minimum price is fixed by the act of Congress making the grant, at two dollars and fifty cents per acre. I call your attention to this sub ject, and suggest an inquiry w hether, for the pur pose oi lucmuuiug saies, a cnange in the conditions of sale prescribed bv the act of October 28. 1872. uiigm 1101 oe Huvisaoie. PfBLIC BCILDINO: LANDS. The quantity often sections, or six thousand four hundred acres of public lands, were granted to the State of Oregon by the act of Congress of F ebruary 14, 1S59, before referred to, which, in the words of the Act, were "to be selected bv the Governor of said State, in legal subdivisions, for the purpose of completing the public buildings, or for the erection of others at the seat of government, under the direc tion 01 me juegisiature tnereot. ' since voiir last session these lands have been selected and approved by the local land offices within whose jurisdiction the locations have been made, but final approval by the Iicpartment of th Interior has not vet been had. SALT SPRINGS'. The Act of Congress last before mentioned nlso contains the following provision: "That all salt springs within said State, not exceeding twelve in number, with six sections of land adjoining, or as contiguous as may be to each, shall be granted to said State for its use. the same to be selected bv the Governor thereof within one year after the admis sion of said state, and when so selected to lx; used or disposed of on such terms, conditions and regu lations as uie Legislature snaa direct. I'mviitol, that no salt spring or land, the right whereof is now vested in any individual or individuals, shall by this article be granted to said SiauV' No selections ot springs or lands liiuinc Iipmi made under this authority within the stated limit of time, on the 17th day of December, 1800, Congress passed "An Act to amend the fourth section of the Act for the admission of Oregon into the Cnion so as to extend the time for selecting Salt Springs and contiguous lands in Oregon." Bv this Act it was provided "that the time for selecting the Salt Springs and contiguous lands according to the pro visions oi tne iounn section of the Act entitled ' An Act for the admission of Oregon into the Union ' approved February 14, 1S.V.I, be extended to any time within three years tr-oin the passage of this Act. any thing in said section to the contrary notwithstand ing. This extended time expired December 17 18o.. without selections of Salt Snrin r a TO 1 ) Q lifts adjacent thereto having been made. The right to these springs and to the lands mentioned in this gram mereiore lapsea at mat period. There are several Salt Springs within thi i,ii. of superior character and of great futti.-e value, already know n, and I doubt not there are many others vet undiscovered w hich might be secured to the State if the time for selection could again be extended The entire quantity of public lands w hich would enure to the State if the springs could be acquired, would be toity-six thousand and eighty acres. This is a grant customary to be made to the new States upon their admission into the Cnion, and is of such importance that I suggest that vou mcinoralize Con gress to pass an act 1 gain extending the limit for selecting the Salt Springs and contiguous lands. SWAMP LANDS. The right of this State to fill" cu'tmin on.l flowed lands within h-r 1 granted by Act of Congress, of March l' lSiiO ex' tending to Oregon the provisions of tlie Swamp Land Act of September 23, 1S50, has not vet been iully acknowledged by the General Land Oilice. in m ins i oieiimai message the following re marks were made upon tlie condition of this c lass of lands as existing at that time nVti.tlle n?V,v'c va? lukcI1 f tllis important grant by the publ e authorities of this State until w.e -.s.s,ou oi me last legislature, at which an Act w as passed beari tig date October 'V.. 1S7(. entitled ...... .-0.1 ,.r n lumg ior tne selection and sale of the sW( K,'. 0f":au'c,l Ian,ls helonging to the State ofinVii ,' . ,i',uu,lnl lnii tne i.oard 01 moil Land t omraissi., tiers should aimoim denn- ties,:!.f'r,,iT.'. ? -ST" Practicable, to select in jKstield all t.ie lands rendered unfit for cultivation HO liuncbltloll or 01-.., H. i. i. . , . bvi T, ." -- "-'"'', Minim mis .-suite, ana 10 " 1 e return of th tn,-r... ... 1 . ... nidi- 1 . s-".nv- wniuu vvoiiuiussioiiers. ""p ursuant to this authority, deputies have been n..ru,in , who havo proceeded to the tield and 1 ln.te 1 m-o svtciui 0.1S11 icis 01 MICH lan.l a ll'y Uieined to fall within the description of said Acts of Congress, omitting under instruc 1: ... A..in the Board, all such swamn lands as are laim -d and occupied by bona fi.ic settlers, under whatever nht tht claim. The amount of swamp and overfiowoi lands 80 'leered, free from conflict, and report0'1 to tho 1Jonr' l,l to the present time is 174 9 97-100 acrcs, lists of which have been dupli cated'and dul" forwarded for filing in tlie office of the Survevor General of Oregon. ' In tiami'1'"!! the title of the State to these lands, and the condition of the grant, I found that there io 1 been a practical omission on the part of the De 1 nrtment of th Interior to execute the law s of Con 'nsT: making this grant, as far as the same related J?rZ.Zrnn rhe usual special instructions sent to ?,Sc& of other States, holding under ulelkmcacu of Congres-s. directing a segregation of t e swamp lands, had not been transmitted to the the swamp ""jS f tn;s state. Deputy United ?aurveln the held had generally made no note of he sWamp lands, but had returned all this cla of lands as arable, and the several local land offices had been accustomed to dispose ot them without reference to the title of the Mate, as public lands of the United States- subject to homestead and pre-emption settlement. L' this means consider able portions of the swamP owned by the Stte. and which are still vested 111 the State had . j: ...-4 f . tv... luioi of the I nited states. " V letter was addressed by me to the t-ecrctarv of the Interior, bearing date November 9, lb.i, caning his attention to the acts of Congress under which w e hold these lands, and to the omission of the Land DtparUaent of the United States execute the 1 .1 . - o nn .... .... ... . . herewith accompanying. ln this correspondence I have urged the General Land Department to exe cute the fcwamp Land laws of Congress in favor of Oregon, as they have been executed in faror of other states under the same laws, ami to btn-pend all action of our local land office involving adverse ' possession of these lands until the question of title could be adjusted between the State and the United states. On the part of the Secretary of the Interior and the Commissioner of the General Laud office a willingness has been indicated to enter upon the segregation of the Swamp Lands, but no work has been done in that direction by them, and no in structions have been issued, to the knowledge of the Executive, in answer to the requests contained in the corresiKindence. I can state, therefore, as the present condition of this important interest, that the acts ol Congress making the sw amp land grant to Oregon remain practically unexecuted by the Land Department of the United States. In the meantime lands unquestionably of a swampy character, are bei ng disposed of by the local land offices, thus ab sorbing the property of the State and complicating tne title to the fcuamp and overflowed lands within her borders. In relation to the right of the state to hold these lands, even without any action ot tne I nited states Land Department, and without patent. I have not the slightest doubt." Mate the last session 01 your body a leading de cision has been made by the Supreme Court of this Mate, at the case of Joseph Gaston vs Frank L. Stott involving the possession of that tract of swamp and oyerliowed land known as Wapato Lake, in Yam hill and Wuslangton counties. The court. Justice MeArthur. delivering the opinion, unanimously held that tne acts of Congress recited, created a grant tji i'l-rittt and passed a fee simple title to the State of all the sw amp and overflowed lands within her K.r,:ers; and that the State has a right to make se lections and to dispose of the lands acquired under this grant before the Issuing of the patent by tho General Government. This position has been held by the highest tribu nals of nil Uie states, entitled to this class of lands under the acts of Congress from which we derive title, and also by the Supreme Court of the United I,1,".- o ln tlle case of Kailroad Company vs Smith, . ullace, I'. S. Supreme Court Reports, page 99, the supreme . ourt of the United Suites in passing upon the etlect ot the omission of the secretary of the In terior to segregate swamp lands in Missouri, as di rected by the act of Congress of September i!S, 1H50, iLses the following pointed language: "Must the State lose the land, though clearly swampland, because that officer has neglected to do this: The right of the State did not depend on his action, but on the Act of Congress, and though the State might be embarrassed in the assertion of this right by the delay or failure of the Secretary to ascertain and make out lists of these lands the right of the States to them could not be defeated by that delay." Tlie condition of the swamp lands, within the State is the same as slated in my message of tw years ago, except that progress Los been made in segregation by State agents acting under authority of the Hoard of School 1-and Commissioners, as di rected by statute. The total amount of swamp lands w hich have been surveyed and selected by the several deputy sw amp land commissioners un der authority of the act of the Legislative Assembly of October M, 1S70, is lii',0.600.42 acres. No instructions of any character have been re ceived at the otlice of the Surveyor General of this State, customary to be issued to that office in all States entitled under the swamp land acts of Con gress. 'Ihe refusal of the General Land Office to act in the premises is now reduced to a mere technicality. The Act of Congress of September U8, 1S50, the pro visions of which were extended to this State by Uie Act of March 12, lid), provides, "That it shall be the duty of the Secretary of the Interior, as soon as may be practicable after tr.e passage of this Act, to make out an accurate list and plats of lands described as aforesaid (the swamp and overflowed lands), and transmit the same to the Governor of the State ; and, at the request of the Governor cause a patent to be issued to the State therefor." on tiic2ist day ot May, l.soo, the Coniuassioner of the lieneral Land Oilice addressed a letter to the Governor of Oregon, proposing the adoption of one or the other of two systems in segregating these lands, in the following words: "1. Whether the State would be willing to abide by the field notes of the surveys, as designating the lands, or "2. Whether, in the event of the 11011 acceptanco of these notes as the basis, the State would lurnish evidence that any lands are of the character em braced by the grant. "This is important to the State also, as by the sec ond section of tiie Act, the selections in tow nships, where the surveys have been completed, are re quired to be made within two years after the ad journment of the first legislature convened after tne passage ot the Act: and, where the surveys arc yet to bo made or completed, within two years from the adjournment of the next session, after notice to the State that tlie surveys are completed and con firmed." The Commissioner of the General Land Office, in a communication to the Governor of Oregon, dated April 2i, lt73, referring to this subject, says: "This letter was acknowledged by the Governor February 22, LS01, and information given that he had submit ted the proposition, with tlie inclosures, t the leg islature which convened second Monday in Sep tember, 1.S0O, but that the Legislature had failed to determine which of the two propositions submitted from this ofliee should be accepted." On the d day of January, 1S72, in reply to the objection, raised for the first time in a letter of the Commissioner to me, bearing date November 19, 1871, that the State had not elected which of these methods would be the more agreeable ; I stated that, by the provisions of tlie Act of our legislative Assembly, of October 2, 1570, providing tor the selection and sale of swamp and overflowed lands, "the state of Oregon has elected to make selections of sw amp and overflowed lands within her borders, by agents appointed by the State, and to furnish evidence that all lands claimed by her are of the character embraced by the grant referred to." But the General Land Oilice still refuses to pro ceed because the legislative act did not declare, in so many words, that the State did elect to select the lands by its own agents, and docs not provide for furnishing the General Land Ottico with any testimony whatever. I have not lately dis cussed this matter with the Department of the Interior, because 1 deemed further discussion of no value to the State. The acts of Congress under which w e hold the swamp lands do not require any election on the part of the State its to what method shall be adopted in the segregation. The proposi tion of the Commissioner of the General Land Oilice, contained in his letter of May 21, 1S00, to the Governor of Oregon, asking the State to elect be tween two proposed methods, which had before that time been practiced in other States in segregating swamp lands, seems to have been made out of def erence to the dignity and interests of the State to fa cilitate just and satisfactory action in the premises, rather than to clog the successful prosecution of the work. As to the Legislature of this State prescrib ing the manner of furnishing evidence to the De partment of the Interior ujion this subject, 1 do not deem it competent for a State to make rules and regulations for transacting any public business with the Departments of the United States Our legislative act of 1870 most certainly made election to select the swamp lands by agents of the State, because it provided directly that these lands should be selected in that manner, and mch agents have, been at work in the field performing this duty, from time to time, for four years. To say that the state has not so selected is to deny that a statute is the expressed will of the Legislature. 'Ihe reason which induced the Legislature to pro vide for making these selections by agents ol the State was that this important grant might bo wholly lost if left to the accidents of the general surveys. To avoid further controversy, and to meet the views of the General Land Otlice, I recommend that a joint resolution be passed specifically electing to select the swamp and overflowed lands by agents of the state, and instructing the Board of School Land Commissioners to furnish such evidence, and in such manner, of the character of these lands as the Department of the Interior shall prescribe. All the swump and ovellowed lands have been listed in duplicate, and reported in that form to the Surveyor General of Oregon, authenticated in manner km proscribed by that otlice. One of these lists hits been by him forwarded to the General Land Otlice. The magnitude of this interest is greater than at first supposed.. The southeast quarter of the State, not yet surveyed, and but very little ex plored, appears, by latest information, to be occupied be tween its mountain ranges by a succession of ridges, hills, lakes and marshes, all productive and valua ble. The securing of these lands is the more im Krtant for the reason that the residue of their pro ceeds after paying the Wagon Boad warrants is de voted to one of the most important public projects which has attracted notice in this State. I refer to the construction of the Portland, Dallea and Salt Lake ita.iiroad. TIDE LANDS. The title of the State to the tide lands upon her sea coast and rivers was first brought to public at tention in this State in my last biennial message. I then stated that " thee lands belong to the State by virtue of its sovereignty, or the right of eminent do main, independent of any title from the lieneral Government." But in the public mind these lands are confounded with the sw amp lands. Tlie titles to the two classes of property are essentially distinct and different. The former does uot depend upon a grant by Congress; the hitter does. The title to lands between the ebb and tlow of the tide has been in controversy in other States, and final adjudications by the highest tribunals have determined the right to be originally in the States. In the ease of Pollard et nl. vs Hagan. reported in 3d Howard. 212, the plaintiffs held a tract of tide land in Alabama by patent from the United States, which after contro versy, was specially confirmed by tw o several Acts of Congress. The defendant held under a deed from the State, and proved that the premises were covered bv water at common high tide. The case was ft leading one, ami was ably argued and fully considered. The Supreme Court of the United States held : "First. The shores of navigable waters and the soils under them were not granted by the Constitu tion to the United States, but were reserved to the States respectively, "Secondly. The new States have the same rights, sovereignty, and jurisdiction over this subject as the original States. "Thirdly. The right of the United States to the public lands, and tlie power of Congress to make all needful rules and regulations for the sale and dis position thereof, conferred 110 power to grant to tho plaintiffs the. land in controversy." In this case u United States patent was set aside, and two acts of Congress touching the title to the premises were declared void, and the right of the State to the tide lands, by virtue of her sovereignty, was sustained. This doctrine was recognized and enforced by the Supreme Court of California in the case of Karish vs I'oon, 40 California Reports, 33. In this casesidt marshes had been selected and approved to the State as a part of the rive hundred thousand acres granted bv Congress by Act of September 4, 1841 for Internal Improvements. The lands had been sold by the State to private parties, and had been improved at great expense, and hud been held in private possession nearly twenty years. But the Court set all the conflicting rights aside, and awarded the profertv to the custody and disposal of the Board of Tide Land Commissioners as lands held bv the State bv the original title of sovereignty. I have thus suggested the tenure by which the State holds the tide lands, in order to give a clear idea of the power of the Legislature over them, and of the propriety of distinct and complete enact ments tor their disposal. The Tide Land Act passed two vears ago is very defective. Its force is limited to land abutting or in.,.!. v nvcinjiiucui.c upon mis Riirncvnt i limit ithniiiS V . sioiuusmi mis ciate. ltas siiTte ihmnn extonieJ -o lands within the ai?d uwv iff orrui? upon the Pacific Ocean betwe 1, 1 te coiiUuent thereto, and lying t2 nheo,'k and flow of tho tide. embodvhii ,ie aet1.al) requires careful revision, Soil nno?-6 exM authority for the Board of toeSlaudS Commiss'oers to make disposal of TnE FIVE I'KR CENT FI ND. nf CAn .V V. . 0 u"uvl iio isioiis 01 me OI Congress of Felimjirv 1.1 ,,0 ,,-., gon into the Union, is fcaTi& fii ' s the 2 rf --"iS,no-1 Tasc U was statcd that ine sum Ot .424 2.. helon. n.r ,.;., bo,1 I . tof lr'lwu by tJ,e former Secretary of tht . 11 ,JL'eu instituted, on the part of the f-tate. against tli. lt.. s;,., . : on his official bonds, to recover "all moiievs on v.voui.i oi mi en that officer was in default. A nnal judgment has Wen recovered in the premises amounting to the sum of S10.55S 91. for which exe cution is row out against said sureties. It is prob able that the w hole amount Vl ill lu. i.irl inM thu ;tate Treasury. This w ill in. In,!.. tii. si,i rh-.. tvr Cent. 1- und default of 5,424 2-5. and will restore the fund complete. The accumulations into this fund will continue until sales of the public lands within the State shall cease. Ihus for the account of this fund rendered to the State, by the Leoartinent of the Interior, has in cluded the sales only made for cash. It has been urged by several States, interested in like manner as our own. that a percentage of all lands disposed of lor a consideration should be included in the account of sales. The State of Iowa has made a special effort before the Commissioner ot the Gen eral Lund Office to secure a ruling to this etlect upon existing law, but thus far without success It would appear but just, alter having x'edged to the several new states five ier cent, of "the net proceeds of sales of all the public lands within their borders, for the purpose of Internal Improvements,, that in all ca-ses where the public lands mentioned have been disposed of for a consideration to the United States, not immediately beneficial to the state, as in case of soldiers Uoi.nty Lands, Agricultural Col lege Land scrip from other States, permanent In dian Reservations and like permanent disposals of tho public domain, the tive per centum allowance should be made to the State on their minimum value. A proper presentation of this suhieet by memo rial of the Legislature to Congress might "facilitate the passage ot an act recognizing the just right of this State to be allowed live per centum of the net proceeds of all public lands disposed of within her borders wherein the State was not interested. COMMON SCHOOL FrM). Trn. Trrsn.l n.alrt Ciiiimitii GsV,,,,! 1.tiy1 ori.inri. from the sales of tlie sixteenth and thirty-sixth sec tions in eacn township ot the public lands, and from those taken in lieu thereof, had reached two years ago, the sum ot S 150.000. The sales of the Oil hi lC hi lldv of tint S; lo tik ri n I-.. ImAli t.1. .ir j I oritur 11 w. last two years, owing to the stringency of the money market during that period. But a fair progress has been had in these sales, indicating a healthy growth of the state, and steady increase in the Common School Fund. The whole fund now in tho hands 01 uie itoara 01 ?cnooi f.and commissioners and ot me iocai agents 01 tne iso&ru m tne several coun ties, amounts to the sum of Solii ti(; .jc,. In relation to the management of this fund, I re peat my recommendation Of two years ago, which T ivs IIS lOUOWS . The rtioL.nf wort- r f fli nnnrl i e.vnTlinrv tl.rt amount rif j..liwut;.-.n.il fii.io . . ; .. . . - ..tuiunuimi 1111111.1 I'r ti ou,i TC 01 V that more complete proviMon khould be made f r t ihil b..t.F 3 . -.1. 1 . 1 . .. iwiwuj anu vuumn ui iiinu.i m uie iiaiia.S OI local agents, and particularly in reference to the COlloPt.irm iinrl return rf itii.n.t f. . 1 1 .n ; .i --- s- v v I. IUIV 1 V. L 1 ' I lliritl 1 MllUOll iu the schools. Local agents should be requ red to give bonds to the Board for the safe custody of the "o"s- in uicir iiiiiKiM. ana ior 1110 iauiaui per- loriiiauce 01 ineir ollicial trusts. UNI V Kits IT Y Ff.NP. The total grant of public lands to the State for the support of a University is 4i.oso acres. Oi" this amount there have been sold by deed and bond. 10.fo5.55 acres. There consequently remain unsold. 26,17-1.45 acres. AfiUICfl.TFft.VL COI.I.KOK FIND. Tlio fim.l lii.v 1..,.,.,.. . . r . .1. . --. ....... ju.-i uiiiii 10 LUriuillllUiir iol 1:1c reason that it has been but a short time since the lands hclom'iii" to tin's fim.l ..r.. .. ...... 1 ,., , 1 General Land Oilice. There have been but 57 02 loo acres deeded and 4ni acres bonded. The fund aris ing therefrom is S1.N44 SO. LITIOANT LAW. The enactment of tln tm- f..r ilm ,,r-..i..t;... ,.r litigants, by the Legislative Assembly of INTO, has given rise to much discussion':; to the necessity and Tilf.l.ll..l.. .1. . . r... . i""i"'. 01 uie -ici. 1 nere are manifest good reasons why there should 1 authorized to publish ull legal advertisements, and in;ii uie uues 01 pui.heitttoii should be fixed bv law. I wo years ago a bill was passed regaling tin's Act, but the repealing bill w as vetoed on the ground that the original Act, requiring a s'eilic undertaking to do the litigant oublisl 1 i Hir : :nii iiiun t)n filiiw (tr such undertaking, the statute declared that the pub lisher should hold the privilege during the term of tot- n-ioiiiuiig power, neennng that this created a vested franchise for the term named. I declined to approve the bill. But the term specified in the Act having expired, the Act is now subject to repeal. roKTLASU 1-oLICE LAW. The best method of governing American cities is an unsolved problem. Great abuses have been suf fered, both in gvncral management and in the ad ministration of Police Hel.iirtiii. iits T. 1 r .... evident necessity, four years ago a law was passed .. mj i.i-Kisi.tiure reorganizing- trie 1'ollee Mepart meiit of the citv of Portland. In tl ie new svsti.iii tli. Governor of the Stale is required to npiioi.it three 1 once oiiuinssioners. w ho have full control of the subordinate organization and working of the Police force. This law is in contravention of the general principle of local self-iroverninent mid shon'd l.e changed as soon as practicable. I think the time lias arrived when the change can safely be made. Peace and good order have been maintained in Portland since the adoption of the present system. No Change should lie made without m iking tlie Po lice force responsible to some controliin-' .oitlw.rirv otherwise it w ill be ineffective and injurious to tlie citv. Governor Hoffman, of New York, who bad meat opportunities of observation, remarking u)xu the Socniiiieiii 01 me city 01 .New li.rk, said in Ins an nual message of 1S72: " No g.M.d government ctai be Secured to any ereHl rile unless i si, ,.11 ,.,,.. responsible head, in w hom'shall be vested ail execu tive iower, and to whom, as the elected representa tive of the people, all departments charged with ex ecutive duties shall bo directly and summarily re sponsible and accountable." I recommend that the Portland Poliee I.nw be so amended as to make the Mayor the responsible head of the Police system of the citv. THF. CODK. It is customary in other States, ami has been the prac'ice in this State to provide by law for a compi lation of the statutes, at least once in ten years. Such a compilation has been made in pursuance of the Act of last Assembly providing " for collecting, compiling and printing the laws of Oregon," ap proved October is.72. Upon tlie completion of tlie work by the Commissioners, and after its exam ination by the Governor and Secretary of State, and its acceptance by the Governor us required by the statute, the State Printer appeared and demanded the manuscript compilation for printing. The Act referred to required the Governor to advertise the work of printing and binding, and to lot the same to the lowest bidder, and to contract w ith such for the doing of the work. The State Printer insisted that he was entitled to do the printing, notwithstanding this provision of law. on the ground that by the 1st Section of Arti cle 12. of our State Constitution, it is provided that tlie State Printer '-shall perform all the public print ing for the State, which may be provided by law." Deeming it my province to execute the laws as I find them upon the statute book. I declined to de liver the manuscript to the Public Printer, but pro posed to advertise for the printing, as by said Act directed. At this juncture a proceeding ol manda mus was instituted by the State Printer before Asso ciate Justice (now chief Justice) ISonham, asking an order that the Governor deliver laid copy to him, the State Printer, to be printed. The Governor accepted service, and agreed to a stipulation of facts, and that the court should de termine the law. On full consideration of the sub ject, on the 'Ji'ith day of January last, the following conclusion was reached and made of record in the ease : " The court finds that the ar t of the Legislative Assembly, approved October 1J, 1S7 . entitled an act for collecting, compiling and printing the laws of Oregon, so far as the same requires the Governor to let the printing of the law s therein provided for to the lowest bidder, is in contravention of Section one of Article twelve of the Constitution of this State, and so much thereof as void. Therefore, it is ordered and adjudged by the court that the plain tiff herein is lawfully entitled to the possession of me manuscript or an auineiiticated copy thereof, of such compiled laws, for the purpose of printing the same as required by the Constitution of this State." Upon this adjudication, which was consonant with the views ot the compiling commissioners, the manuscript w as delivered to the State Printer to be printed. The binding was advertised and let to bo done by the lowest bidder, at one dollar and fifteen cents per volume; a price much lower than any public work of the kind has ever been before done in this State. The three thousand volumes required bv the Act to be printed have been completed and bound, forming a compact volume of ;i22 pages. The work was carefully executed under the pesonal sujer vision of Judge Matthew P. Bendy, one of the Com missioners, and is of intrinsic value to the State and to the legal profession. The State Printer has not allowed the publishing of any copies of this Code, except the number au thorized bv law. so that the State can derive the full benefit of the sale of the work. The cost of Code printing by theStatePrinterwill, I am informed, be about eighteen thousand dollars. The rates of sale of this work should be fixed by law at a price which will reimburse the State for the expenditure. An impression has prevailed to some extent that the decision of the court pronouncing one clause of the recited Act to be void, annuls tlie whole Act This is an error. Tlie body of the Act is as valid, and as operative, as though the condemned clause had never been inserted therein. BOARD OF SCHOOL LAND COMMISSIONERS. The lalwrs of the Board of School Land Commis sioners have been continued with ciUcicncy. This Board is constituted directly by provision of the State Constitution, and is composed of the Govern or, Secretary of State and State Treasurer, and charged with the duty of selling the School and University LfttnLs and investing the funds arising therefrom. By section six of the act of October 2s, 1868. regulating the sale of these hauls and provid ing for the management of these funds, it is enacted " that the Board of School Land Commissioners shall pay over all moneys now in their hands, or that may arise from the sale of said School and Uni versity Lands to the County Treasurers of the coun ties in which the lands are located and shall be loaned by said Treasurers." etc., etc. This section came under the adjudication of the Supreme Court of this State, at its present session, and was held by the court to be void for the reason that it was in direct conflict with section 5 of Article VIII. of the Constitution, which devolves upon the of the'er moun' derived from the five per cent, within t V Act c Board of School Land Commissioners, solely, the duties here specified to be done by County Treas urers. The Code Commissioners have arrived at the same conclusion, and have so ttated in a note to Uie text of the new Code. Anticipating such a result whenever the question should be raised, the Board has uniformly required all transactions by ('aunty Treasurers, touching these funds, to be ill the name of the Board, so that the State might not suffer for the want of proper and sufficient securities, and yet an effort has been made to carry out the letter aud spirit of this un constitutional section of said Act as near as circum stances would permit. I would recommend that an Act be passed pro viding for agents in the several counties, to be ap pointed bv the Board, who tshould act under its di rection. "Bonds should be required for the faithful performance of duties, and compensation be pro vided fyr services. This interest is too grave a one to be lightly or in- considerately disposed of. The report ofthe Board, showing specifically the amount of land sold and bonded, and the name of each purchaser, and mi nutely all its transactions for the past two years, prepared by the Clerk. Thomas 1L Caim. is'here with submitted. The Board has held monthly ses sions to hear and determine all conilicts of right be tween applicants for land, and between settlers claiming the same laud. Full records have been kept of all proceedings, as in a court of record, and duplicate originals have been preserved, in bound volumes, of all deeds executed. As the extra duties of segregating and disposing of tlie swamp lands, and of tne tide lands, as well .is other duties, have been also devolved ujmjii this Board by statute, in addition to the duties created by the Constitution, it is probably the most labori ous organization in the Stato The w ork done bv the Board of School Land Commissioners in Oregon is done in other States by Surveyor General. State Land Oilice, Board of Swamp Lau 1 Commissioners, Tide Land Commissioners, and Schoel Fund Com missioners all separate anddistinct officers, having compensation as such. It has been found necessary to emplov a Record ing Clerk of this Board, under authority of section 12 of the Act of October 2S. lsiVS, and the special provision of the law of last session making appro priation for that purpose. Vreviously to lW the members of this Board were eompen sated tor their services at tne rate of four hundred dollars per annum. The provision making this allowance was repealed at the session of that year, for the reason that the Board was in operative. All the arrearages of work have been brought upduring the post four years, together with the multiplied duties of that period, in addition to the legitimate duties of the chief offices of the State; and all without compensation as a Board. SALMON FISHEKIKS. The salmon fisheries of the Columbia river are as suming such importance that I take occasion to call your attention to the subject. The product of these fisheries was scarcely noticeable four years ago, but last year it approximated one million dollars in ex loit value, and for the season of ls.71 exceeds a million and a half. This river, bearing to the ocean a volume of water hardly less than that of the Mississippi, pure. cool, and generally unobstructed by ice in its lower ex tent at all seasons, is doubtless the best salmon pro ducing river in the world. We have been accus tomed to think that this fish product was inexhaus tible. But the river lisheries of all countries, where the laws have not intervened for their preservation have one uniform history lirst, decimation, then destruction. The rivers of the northeast coast of thc.Vmericau continent were at an early date in our history, rela tively as well supplied wich this imperial food-fish as tlie rivers of the northwest coast are now. But through want of public attention, by overjfishing and unseasonable fishing, and by the obstruction of streams with mill dams, having no fish ladders for the ascent of fish, the salmon has become almost unknown in all the rivers of New England, and totally gone from many of them. At one time the salmon frequented all the rivers of Great Britain, but have been driven out of many of them by the turbid, poison waters from the sew ers of manufacturing towns. Bv the construction of fish-ways and by stringent regulations of law limiting fishing to certain sea sons of the year, days of the week and hours of the day, in which it shall be lawful to take fish, the run of salmon, once much diminished, has of late years been increased in several of the rivers of Scotland and Ireland. The i-had of tiie Middle States, a fish which, like the salmon, makes its annual incursions from the sea, lias been lost to several rivets once filled with their roving millions. They were destroyed by reck less fishing, and cut oil' from their spawning grounds by mill dams. A lively interest is now manifested throughout the States bordering on the Atlantic sea-board, seeking by fish culture, not only to re. cover lost fisheries, but to create new ones, and to introduce species of fish valuable for food, not be fore known in those waters. In Oregon weliave, fn abundance, two of the best river fishes in the world, the salmon and the trout. To preserve these is worthy of careful legislative enactments. Salmon fishery constitutes an interest of so much importance that no action should be taken upon it without a complete knowledge of what action is demanded, and a clear conception of the public good in the premises. I therefore recommend the establishment of a fch commission to be composed of prominent and competent citizens, who w ill be w illing to serve w ithout compensation, aud who will consider the whole subject and reiort their view s upon it to the next legislative Assembly. As the Columbia river forms a common boundary betw een the State of Oregon ami Washington Terri tory, and is subject to the concurrent jurisdiction of both, tiie commission- should be authorized to cor respond with the authorities of the Territory of Washington, in order that whatever legislation may be had 0:1 the subject, may become the law of both jurisdictions. 1 lie salmon p.. is seldom frequented tlie waters 01 the upi. r Willamette river, not being able to pass the falls at Irogoii City. It was anticipated that the salmon would pass to the upper Willamette through trie canal and loeks lately con traded at those falls for the purpose f navigation, but it is ascertained that the lisii will not follow Mack water channels, and consequently w ill not present hirr-self at the gates ofthese locks. Vet the upper Willamette riv er, 011 account of its smooth and pure waters, and its milder temperature is thought by the observant to ' the best home for young fish ofall the tributa ries of tho Columbia. If the salmon could pass the fullsofthe Willamette without injury, the result would be a great b.e-siug lo the people of ihe Wil lamette Valley, as well as a great addition to the spawning grounds tributary lo the Columbia fish- t ries. The salmon readily ascend the fish-way in Scot land and 1 rcland. I would therefore suggest, that in eiio that the fi-h commission is authorized, that the Board be charged with the duty of examining whether or not a fish-way could be constructed at the falls of the Willamette at limited exense. to meet the end referred to. I LOT AO E ANU TOWAOF. ON THF. COI.fMBIA ANU W1L I.AMKTTF. RIVKKS. YourVvecial attention is called to tke necessity of more suitable and certain regulations of pilotage and towage on the Columbia and Willamette rivers. It is most inijMfrtant to our rapidly increasing c- m merce that these regulations should be jut, discrim inating and clheient. HAKltoK MASTF.I1S. The number of foreign ve-sels destined to arrive in ballast, ut the ports of Portland and Astoria, for the purpose of transporting the surplus products of this .-state, suggests tlie necessity of enactments pro viding for the regulation of these harbors, and the appointment of iiarbor-masters. No considerable compensation will be necessary. KEI'IIKSKNTATIVF. FROM CLAT.SOl" COUNTY. The people of Clatsop County have elected a Bep resentative to ihe present Assembly w ithout author ity of the last lieneral Apportionment Law. It is claimed, in this case, that the County was districted I with 'lillamook County in the election of t Repre sentative, while she whs entitled, under the rates established in the late apportionment law, to a Rep resentative alone. Justice should be done in the premises. rEMTF.NTIF.RY. I call your special attention to the interesting and lueiil report ot the Superintendent of the Peniten tiary. All the detailed workings of this institution arc set forth with care and faithfulness. Our State Prison, during the past four years, has I een brought up to a much higher standard of dis cipline and productive industry than was at first anticipated. Four years ago the State was without a tcnantable prison. The prison grounds were unim proved and undrained. Portions of the premises, having ben subject to overflow, and remaining at seasons wet, were unhealthy. The prison farm, con sisting of one hundred and fifty-seven acres, has been drained, cleared of brush and worthless trees, fenced and reduced to cultivation. A new prison has been built, complete in all its appointments, and so substantially constructed that it will stand for centuries. A water power of immense capacity has been cre ated almost wholly by the employment of prison labor, the value of which in the luture employment of mechanical prison industry can hardly bo esti mated. This water power has been so thoroughly and scientifically constructed that it is not liable to future damage by flood or time. The canal is of earthwork ot uniform grade through a clay subsoil It crosses but one depression requiring a culvert, which is passed upon an arch of masonry, the uni form earth embankments being kept tip. The old wooden prison buildiK-gs have been utilized as work shops. The efficient management of the Superintendent, m. II. atkaids, fcssq., is worthy ol high commen dation. Tho care of the health and morals of the orisoners. the success shown in securiiur to the State cheerful and productive labor, the evident progress made in reformatory discipline an prove the compe tent and 1 hi tli t u 1 public oiliccr. The subject of prison reform has a broader bear ing aud a wider interest than is generally supposed. Many become interested in its progress and hok up on the result with the single view of its effects niton the unfortunate prisoner alone. But the welfare of the State is affected in several aspects of the case. Society must receive to its bosom all discharged convicts. Io they come as persons capable of be ginning new lives and of becoming industrious citizens? Or do they come as hardened criminals, to return again to a li'fe of crime? If the former, the State gains a productive member of its body, not to be a public expense, but to assist in bearing the common burden. If the latter, the released convict again becomes a prey upon society aud his road leads back to prison", there to be a tax ujkhi the State. In leading prisons, in the older States, where special measures of reform have not yet !ecn adopt ed, the projortion of discharged convicts, who re turn to prison life, is- staled to be from 70 to 'JO per cent. During the last four years in our x.-iiitentiary the proportion of returns has not reached 4 per cent. The exact number of discharged prisoners, during that period, has been one hundred and seventy nine, and the number who, after discharge, have been convicted of crime and resentenced has been but six. The Superintendent reports but one convict now at large, by escape, since his. suiKTiittendeiicy, and that no escapes have taken place within the last two years. This is remarkable in view of tlie fact that convict labor has often been employed outride of prison bounds. To the credit of the women of Oregon I take occa sion to remark that during the Executive term of four years just elapsed, there has been but one fe male inmate of our State Prison, and that of the one hundred and thirteen convicts now in our Peniten tiary, not one is a wouiau. I join in the recommendations of the Superintend ent s report, and desire to call attention to that por tion of the report which refers to leasing convict labor. The time has arrived when action must be had upon this subject. After years of trial in the older states the sy.-tem now ado'pted in the best reg ulated prisons is that of leasing to contractors the labor of the prisoners, in numbers to suit the classes of business in which they are to be employed, at a certain per diem rate, the Mate furnishing shops for mechanical labor, with the pover, and tl main line of shafting connected with the power, tlie State reserving its control of the prisoners-, and their sup lort and discipline. No important manufacturing interest can be es tablished at the Penitentiary by contract for lalior unless there is special authority "of law for long-time contracts. The preparation of fiax for foreign shipment has been introduced as n oxpcrimeii . and has proved 11 success; so much so that the parties engaged in the business desire to engage the labor of a number of convicts on long-lease, for the prosecution of this imixjrtar.t branch of industry, for the first time in troduced into Oregon last year, at the prison. I specially commend this enterprise to your consider ation. Many other branches of manufactures mentioned in tne superintendent s report can at once be intro report d leases duced in case continue of labor be author- ized The compensation of the Superintendent is, with out doubt, low, when taking into consideration the valuable and lesponsible services performed bv him. The reports of the Penitentiary Building Commis- sioncrs, show ing the Recounts of the final comple tion of the buddings, and the expenditure of the appropriation, accompanies the Superintendent's report: also the report of the Prism chaplain. Ir. C H Hall, and of the Prison Librarian. Dr. E. It. Fiske. Those gentlemen have labored for the good of the pr soiiers devotedly and without compensa tion, in thet:u, missionary spirit, Thesuggestionsin their reports an- worthy of consideration by the As sembly. Under the care of the Prison Physician, Dr. A. M. Belt, whose report a'so accompauiVs that of the Su perintendent, the health of tho prison has been re markably good Ihe Physician says: -The pris oners have been nearly exempt from the evil effects of solitary vices that are so common in prisons. This is due largely to the excellent rules of the in stitution, securing w holesome diet and regularity of labor, exercise and rest.'' It is befitting here that I pay a tribute to the memory of one who, from the establishment of the Penitentiary at the seat of government lo the time of his death (which occurred since your last meet ing), was its voluntary chaplain, 'fhe Rev. Alvan F. Waller, one of" the earliest missionaries of Uie Methodist Episcopal Church in Oregon, for more than thirty years witnessed the progress of this new community first the colony ; then the Provisional Government; then the organization of the Territo rial form under the United States; ami. afterwards, the suite. Through all these stages of successive de velopment lie has left the impress of a strong mind and a ceaseless energy uikiu the landmarks of our pn igress. lie took the greatest interest in. and gave most valuable assistance to, tlie later ellbrts at prison re form, ln the words of the Superintendent's report, "He visited the prison through sunshine and storm alike the prisoners during health and sickness, and followed their remains to their last resting iiiace. giving them the benefits of Christian sepul ture without pay or expected earthly rew ard." lie rests well whoso work is well dwiie. HOsriTAL FOR THE INSANIt. The report of the Superintendent of the Hospital for the Insane is herewith submitted. lr. J. C. Haw thorne, the Superintenaiout. has boon connect ed with the care of the insane in this State ever since the first establishment of a state Asylum, twelve years ago. The institution during the past two years lias been conducted w ith the .same care and humane treat ment, and w ith equal success in the recovery of un fortunate sufferers from insanity. The whole num ber of patients now in the hospital is 1 .':' public, and 2 private. Of these 1 10 are males, and ."ware females. The report is full and instructive, und is worthy of careful consideration. It is but justice to the Superintendent to say that his management of this institution is a high credit to Oregon. The contract of the last four years lias expired, ami it w ill be the duty of the Legislature to make further provision for keeping our insane. In making new- engagements it will hardly be necessary to suggest that a spirit of enlightened hu manity s"hiuld assist in the disposal ot ihe subject. 'I he'report of the Visiting i'iiysiciaii. Dr. Andrew I). Ellis, replete with interesting details, is also sub mit&ed. TARPONS. As required by statute, a report of pardons granted during the biennial period just closed, together with the reatons for such pardons, is herewith furnished for the in formation of your Honorable body. A less number have L-oeii granted iu proportion to the number of prisoners than during any like period heretofore. I have sought to examine and act upon each cose presented with impartiality ami w ith an effort to execute the trust which I hold for society, with faithfulness. By a moderate exercise of the pardoning power, and by encouraging prisoners to shorten the term of their imprisonment by merit marks, under the statute, for good conduct and ex tra work, a better discipline is maintained. THE M0POC INP1AN WAR. On the first of December, ls7', the country was startled by the news that the Modoc Indians bring ing to the Klamath Indian Agency had risen in arms and fallen upon the unprotected ami uususpecting settlements on Lost river, and had, en the i'ili and oOth of November, ruthlessly murdered eighteen un offending citizens, pillaged their property, and committed their dwellings to tiames. There were no available United stales troops within succoring distance of the scattercii and dismayed neighbor hoods of the Lake Basini By telegram the Govern or was petitioned for immediate relief and protec tion. The duty of the moment seemed imperative, and orders were at once given tor the mustering of a company of mounted volunteers in Jackson coun ty, and Joint E. Ross was commissioned as Brigadier General of tho First Brigade of tlie Oregon Militia, and directed to move at once to the scene of distress, to report what force was required, and to do what humanity and the duty of the State demanded. This force reached the 'field of the massacre eight daysbwforo any other military assistance arrived, and engaged itself in burying the dead and in oilices of mercy to the sur vivors. This was the initiation of the Oregon Volunteer Service in the Modoc Indian war of 1S72 and 1S7;',, which, during the checkered fortunes of Indian hostilities in southern Oregon, during those years, employed live companies in all. At the request of the Secretary of War I made a full and detailed report of this service with its ini tiatory history, to Major General J. M. Schofield, com mand'ing the'Military Division of the Pacific, under date of February i:,"lS71, a copy of w hich is here with submitted." 1 also submit the otlieial roiorts of Major Gen John F. Miller and of Brigadier Gen. John E. Ross, of the'rcgon State Militia, touching operations in the field during this service. At the last session of Congress our delegation there procured the passage of an Act virtually assuming the expenses of the State incurred in this service; and. during the month of July last. Inspector Gen eral James A. Hardie, of the United states Army, under instructions of tlie Secretary of War. visited Oregon to examine and report upon the uceounts, engendered in the support of these volunteer troops. There are good grounds lor expecting that a la vorable report will be made. The whole amount of the first and second services, as reported to lieneral Schoheld, is Sl."0.7JS. I think it hut just that those who have mustered into military service at a time of emergency, and have furnished property forsueh service, should have the guarantee of the State for their compensation. I desire especially to present the case of the vol unteers who were promised, by their officers, and by theKxecutive the exertion "of their influence to secure to them the pay of .two dollars per day for their services. This rate of pay has been entered upon the muster rolls, it is extremely doubtful whether this rate will be allowed by Congress, though most just, under thi? circumstances. The State should make good the full pay ofthese volun teers. All honor is due to the officers ami men of this service. In the w inter months, in a mountainous district, where storms are severe, they served with out tents and often short of blankets and rations, for the reason that on so sudden emergency, such could pot be supplied.- Their services were valu able to the State and to the United States and tended srreatlv to assist ill closing the war. It is befitting that I take this occasion, thus pub licly, to acknowledge, on behalf of the state of Ore gon", the distinguished services of Brevet Major lien eral Jefferson C Davis, of the Army of the United States, for his brilliant and decisive conduct in closing the Modoc Indian war. To General Frank Wheiuon, and the officers who served under him. our acknowledgments are due ior their gallant and soldierly services from the first, and tor their gener ous conduct toward the Oregon Volunteers. A reso lution of thanks would not be inappropriate, in the premises, as the peace of our entire eastern frontier was involved in the success of the Modoc cam paigns. As to the Modoc outlaws who committed the mas sacres of the --nth ami yoth of November. ls.7'J, and who now stand indicted lor murder in Jackson county, they were taken out of tlie jurisdiction of this State bv force, unner me oireci oruer 01 in Prnsldnt oV the United States Thev are now l'n gitives from the justice of this State. As soon as the unlawful detention ceases, tney are naoie 10 oe re turned on the requisition of the Governor of Ore gon, and to be submitted to trial and punishment uccordmg to law . The claims of our citizens in Southeastern Ore gon, whose property was destroyed by the savages attire time of the "massacre, are most just. These settlers had no part 111 the cause ol the Hostilities and were all innocent of offense towa'dthe MoJocs. A memorial of the Assembly setting forth in a clear light public opinion here on tins siiojeci migni assist our representatives in Congress iu their efforts for an appropriation to cover these claims. WALLOWA VALLEY. Joseph's band of Nez Perce Indians, after having joined the general tribe of Nez Pcrces in the treaty of 1S.V), disrxjsing of all their lands except a reser vation on which they agreed to live, refused last year to abide by the terms of a subsequent stipula tion made by the tribe to retire wholly from Oregon During the Modoc war Joseph's band was on the eve of an outbreak to assert us right to the Wallowa lands formerly released by the tribe. These lands have been surveyed by the United states ami opened for settlement. Many of our citizens had settled there. As a peace measure the President of the United States made an executive order setting aside these lands as an Indian reservation. The Indian Department caused the property of the settlers to be assessed with a view to their removal. At this juncture 1 transmitted to the Secretary of the In terior a communicnti 11 reciting tlie full history of the treaties in controversy, asserting the right of this State to the jurisdiction of these lands and the rights of our citizens to their farms and proi-erty in the Wallowa regions, and gravely protesting against the steps being taken by the General Government as unauthorized by law. Senator Kelly and the late Representative Wilson had tiled their protests in the premises also. It is now indicated that the executive order of the President will not be enforced, but that the lands will be considered open for settlement. A military force has been lately stationed in the valley to pre serve peace with the Indians. This region is one of the most valuable yarts of Oregon for grazing pur pose's. A copy of my communication ou this sub- cct to the Secretary of the Interior, bearing date July "21, 1S73, is herewith submitted. STATE FRINTINO. The Constitution ha the following provision con cern ing the State Printer: "'He shall perform all the public printing for the State which may be pro vided by law. The rat-s to be paid to him for such printing shall be lixed by law, and shall neither be increased nor diminished during the term for which m he shall have been elected." You will perceive by this that you eannot legislate lyr-on the rates of printing to be done by the prestsrft State Printer during his term, but a carefully considered Printing Act for the future might be'matured and passed. I11 such an Act distinct provisions should be incor porated denning what work shall be doue by a retiring State Printer at the close of his term, and what work shall be done by the new incumbent, as this has become a subject of standing controversy under the present law. " EQUALIZATION. It is a Constitutional provision (Article 9, Section 1) that '-the Legislative Assembly shaa provide by law for a uniform and equal rate of assessment and taxation, and shall prescribe such regulations as shall secure a just valuation for taxation of all property, both real and personal. This undoubtedly contemplates a system of general equalization. There is positive public wrong, as well as unfaith fulness to the Constitution, in allowing a leading class of property like cattle to be assessed in the different counties at widely different rates, varying from Ss to S21 per head average, and railroad fines of equal value, from S:5,i to S3.000 per mile, as appeared by the tax rolls of last vear. The work of the Board of Equalization, organized under the Equalization Act of two years agchaving boon affected by a judicial decision, w as not enforc ed. The members of Uie Board have resignedj. To secure equality and justice in the u-ssessment and collection of taxes has been a troublesome mat ter in all the States. A satisfactory sjjtem is diffi cult to arrive at. Our present tax "laws lack system an. I should be reformed. The defects in forme Acts, pointed out in my hist biennial message, were not remedied by the legislation of two years ago. I herew ith lay before you the reports of the lioard of equalization which discuss the whole subject ably und fully. STATE CA TITOL. In the construction of the State Capitol, of the ap propriation of SloO.noO there has boon exj-ended the sum of S'jv 'yd. This sum has been naid in rash, a the work progressed, from moneys set aside for that purpose from the Militarv Fund There are. in the Commissioners' hands, materials ( chief. v iron, tools and necessary articles!, paid for, the "amount of Si-j-jys -in. There have been applied also, in construction of the building, convict labor, brick and other mate rials from the Penitentiary, the amount of ?-Jr.i3 SO. The cost of the work now"in jlace is SllO.s; o. The work done is within the original estimates of cost, which is very unusual in buildings of this kind. The foundation, which is massive, is of ba saltic rock, embedded in a substratum of indurated day. and laid in hydraulic cement The whole foundation, work is sulKlmined bv dooplv covered ditches, relieving it entirely from possibility of be ing affected by our rainv season. The balance of the work is in sight, and "will seak for itM-lf. both as to phm ami architectural style, which. I think, will challenge your approval. The standing walls should be carried up 10 an even line this season, and securely covered before w inter. Tlie Commissioners w ill lay before vou. with their rofort, an estimate prepared "bv tlie architects, show ing the cost of" enclosing the building and finishing so much i f it as will furnish convenient room for public occupancy, leaving the main tower, the , south w ing and tho basement storv to be completed at a future day. when the State is older and our pop- , iihiti-.m larger. Less than the sum already expend ed will accomplish this. The skill. conscientious dili gence and success of the Commissioners deserve commendation. The architects have given siiccial attention to this work, and the structure is sutlicient evidence of their architectural accomplishments'. GKoLOOY. The preliminary re)rt of the State Geologist, Professor Thomas Condon, is respectful !v .submitted to your consideration. An outline of tlie remark able features of the geologv i Oregon is here rre sented, showing our Mate to be a field not only of thedecjH-st interest to general geological science, but one w hich will -probably develop great wealth in gold, silver, iron, lead, coal and lime. It is al ready becoming apparent that the southeast quarter of Oregon, bordering 0:1 Nevada, v. inch is vet un settled, m::y prove to Ik.- as rich in mines of silver and gold as our sister Suite. I commend the sug gestions made in this report to voiir favorable notice. ACKICVLTCRAL C0LLKGE. The Agricultural College has been evidently con ducted with great effort to reach the objects of its organization. The corps of instructors is composed of gentle men of high attainments iu science and of success- ful experience as educators. I hope the Assembly will provide means lor sustaining this valuablo in stitution until the lands granted bv Congress for its support can be made available for that purpose. The reports of the President and Professors of the College are herewith laid before you. STATE I'NIVEItSITY. Pursuant to the Act of last session of the Legisla- tive Assembly, locating tlie State University at .Eu gene City, a building destined for the occupancy of this iast tutioii has been elected and inclosed, but nut finished inside. The structure is a substantial brick building, three stories high and well calcu lated for the purpose designed. The University endowment accumulating from the Congressional Land grant, will reach one hun dred thousand dollars within a few years, and I am informed that there is also a donation of property of the value of twenty-five thousand dollars more from a private citizen, contingent only uon a sue cessful and permanent oFimi&tiou of this institu; tion at Fugeiie City. 1 recommend tha- reasonable further time be given to complete this building, iu full compliance with the terms of said Act. INSTITUTIONS FOU MITES AND THE IIK1ND. The schools established for mutes and the blind have been successfully conducted. I lay before you very full ami interesting reports of the "superinten dents' and teachers of these institutions, also reports of the Board of School Land Commissioners and the Board of Kducation, giving full details of the management and tiscal accounts of the same. The Private Secretary of the Governor. Hon. Henry H. Gilfry, has. during the last two years, devoted much orsonal attention to the general interests ofthese schools, and has made all the purchases of supplies and disbursed ail the moneys in detail forthar cur rent support, free of charge" in addition to the full performance of his own ollicial duties. . COilMON schools. The suK?riutendeut :f Public Instruction will lay before you a rejxirt of his conduct of that office since its creation. p The duties of the Superintendent have been faith fully discharged, and the diilii-ulliesof organization under a new law have been overcome with a good degree of success. 'Ihe Hoard of school Land Commissioners should be enabled, w ith more certainty, to collect the in terest on the Irreducible Common School Fund, to le used iu the current supiort of schools. IMMIGRATION". I have been in receipt of valuable communica tions and papers touching the subject of immigra tion. Several plans are proposed 1or the assistance of emigrants who desire to become citizens of Ore gon. I iic state of our puolic finances will not admit ot the expenditure of a large sum of money in this inteiesi, however desirable. We need lobulation, but it will be certainly w ise to act within our re sources of revenue. A commission of emigration. consisting of prominent citizens who would serve without compensation, authorized to correspond with appointed, voluntary commissioners abroad, and to advise and direct emigrants arriving here. and to publish authentic imormatioii concerning the resources of the Stateat limited expense, might ne auvisaoie. The strongest inducements which we can offer for immigration of the best classes will be freedom from debt and low taxes. The communications anl papers referred to are herewith respecfully sub mitted. FOREIGN ATTOF.NF.Ys-. Attention has lieen called to the fact that our stat ute, providing for the admission of attorneys to practice in the courts of Oregon, permits no ono to I e admitted except he be a citizen of the United States, and of this State. As our Constitution ad mits to the privilege of suffrage, all persons of for eign birth over twenty-one years of age, who shall have declared their intention to become citizens of the United States, and shall have resided w ithin this State for one year, it appears but just that such should I e admitted to practice as attorneys in our courts, if otherwise qualified. I recommend that privilege be so extended by Legislative enactment. ADJtTAN r C.F.N EKAL. Previously to 1S70 the Adjutant lieneral was al low ed a salary of SNX per annum. The salary was regaled at the Legislative session of that year. No pav or allowance tor actual expenses are now pro vided bv law for that officer. 'olonel A. 1'. Ienni son, w ho has lately resigned the otlice of Adjutant lieneral. jerl"ormed important services, at his own 1 crsonal expense, during the late Modoc Indian hostilities. Jie petitions for reimbursements of these expenses. 1 lav the petition before you with the recommendation that these exix-nses be paid. QIARANTINE. Tlie quarantine lews have been strictly enforced. There can le no doubt that the introduction of contagion by ships from infected ports has been materially lessened. Five vessels have teen quar antined, and all suspected vessels boarded and ex amined, during the last tw o years. Our pure at mosphere is not apt to comuiuuicate contagious diseases readily. With the enforcement of good health regulations our Stale will be comparatively free from pestilence. I refer you to the accompa nying report of the Health Ofhccr at Astoria. CESSION OF LANIS TO UNITED STATES FOR LIGHT HOUSES. A communication from the Secretary of the Treas ury has lately been received by me, stating that "under the impression that the lieneral Govern ment had jurisdiction over the navigable waters within the United States ami the land covered thereby, lighthouses have from time to time been erected on submarine sites w ithin the territorial limits of the States, without procuring the cession of jurisdiction required by tho Act of Congress of May l.i, 1S20. It is now understood that the States may have jurisdiction over lands eovre6Vbv navi gable waters within their territorul limits." l The Secictary icquests. in the interests of com merce and navigation, that the Governor will rec ommend to the Legislature of this State -'The pass age of a general law ceding to the United States jurisdiction in all cases of sites of lighthouses arid, other aids to navigation, built on submerged foun dation., and w here the land under water is owned by the State, providing Tor the cession to the United States of the land also." The communication is accompanied with a firm of a bill which will be sufficient and stjiisfactory in the premises. These papers are resqiectfully sub mitted with a reeonaucnUatiom to your favorable actiou. . . . , 1 his reoucit is a recognition of the title cf the State to all lauds under navigable waters within her boundaries, which is similar in character to the right bv w hich we hold tho lands ou our sea coast lying between the ebb and flow of the tide. It is the right of sovereignty or of eminent domain ; - - 09 nnT-roT-upcv" nt? n a mpdal!1 TTT3RAPV VSr-jtr "