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STATE OF NEW YORK

PUBLIC PAPERS

OF

WILLIAM SULZER

GOVERNOR

w^^dk «-czr

J. B. LYON COnPANY, PRINTERS 1914

STATE OF NEW YORK

PUBLIC PAPERS

OF

WILLIAM 5ULZER

GOVERNOR

JANUARY 1 TO OCTOBER 17, 1913

ALBANY

J. B. LVON COnPANY, PRINTERS

1914

BIOGRAPHY OF GOVERNOR WILLIAM SULZER

By . Edgar L. ^I^Iurlin

William Sulzer, the forty-first Governor of New York State, was born in an old brick house on Liberty street, Elizabeth, New Jersey, on March 18, 1863. He is the second son of a family of seven children — five boys and two girls.

Lydia Sulzer, his mother, was of Dutch and Scotch- Irish ancestry. Thomas Sulzer, his father, was born in Germany, and while a student at Heidelberg Uni- versity, in 1848, joined the patriot anriy and fbught to establish constitutional government. He was captured and put in prison, but made his escape to Switzerland — thence emigrating to New York city in 1851. He married there, and the family afterward moved to Elizabeth, N. J., and subsequently bought a farm at Wheatsheaf, a suburb of the former place, where the son, William, aided in the farm work, until he went to New York to study law.

William Sulzer was educated in the country school, and graduated from a grammar school in 1877. His parents desired him to study for the ministry, but he became interested in the legal profession and entered Columbia College Law School. He also studied law with Parrish and Pendleton in New York city. In 1884 at the age of 21 years he was admitted to the practice of law at a General Term of the Supreme Court held in New York city, and at once opened a law office and began his life work as a lawyer. Early in his career he became a successful lawyer, and

[iii]

iv BiOGEAPHr OF William Sulzek

throughout his long public service has been more or less engaged in the practice of his chosen profession.

He first entered political life prominently during the Presidential campaign of 18M, which terminated in the election of Grover Cleveland as President. Mr. Sulzer upon this occasion was one of the cam- paign speakers of the DemqcEatiq National Committee. Ever since 1884 he haS: participated actively in the speaking campaigns of the Democratic Party at each successive election.

In 1889 Mr. Sulzer was elected an Assemblyman from .the fourteenth Assembly district on an inde- pendent ticket, being then only twenty-six years of age, winning the electipji by a plurality of about 800 votes, his chief platform being that the Broadway i^ailway franchise should not be granted in perpetuity to a private monopoly. He was re-elected to the As- sembly in 1890, 1891, 1892 and 1893, and each year by increased majorities.

Soon after Mr. Sulzer 's election to the Assembly he became widely known as an advocate of social, political and economic reforms, the chief among which were embodied in bills abolishing " sweat shops "; providing free lectures for working people; abolishing imprisonment for debt; providing for a Constitutional Convention ; establishing ' ' Freedom of Worship "; providing for the State care of the in- sanei; for ballot reform; for the punishment of cor- rupt election practices; abolishing corporal punish- ment in the prisons; limiting hours of labor; estab- lishing a Saturday half holiday; providing for a weekly payment of wages; establishing a woman's reformatory ; and for an epileptic colony. These bills introduced and advocated by Mr. Sulzer became laws.

B.IOGRAPHY 0.F WiLLIAM SxiLZEE V

Tke '' Freedom of Worship " bill, gave to the inmate of any State institution the, right to worship God aGCordijig to the dictates of his conscience. Up to the passage of the ' ' State Care Act ' ' a large proportion of the insane people of the State whose relatives were too poor to have them cared for in private hospitals for the insane were in: charge of local authorities. The " State Care Act " placed all the hospitals in charge of the State government and greatly improved the means taken to restore the inmates of these hospitals to health.

The title of the Saturday ' ' half -holiday ' ' act indi- cates the purpose of the measure — to give a longer period of rest for all workers. The women's reforma- tory was a much needed institution, and since it was establis.hed has finely accomplished the aims of those who suggested it. The law providing for free lec- tures for workingmen and working women has devel- oped since in New York city into its magnificent lecture and musical entertainment sys^tem, where hundreds of lectures and musical entertainments are yearly given.

Mr. Sulzer, as a member of the Assembly, also in- tFoducerd and persuaded the Legislature to pass a law for the Columbian Celebration in New York city; a law codifying the s,tatutes of the State ; a law codify- ing the laws relating, to the quarantine station; a law opening Stuyvesant Park, New York city, to the use of the people; a law opening New York's greatest art gallery, the Metropolitan Museum ., of , Art, to people on Simday; a, law providing a prevailing rate of wage for working people ; a law for a State forest park; the law for the preservation of the Adirondack forests; a law for the protection of the head waters of the Hudson river and the conservation of the

Vi BlOGEAPHY OF WiLLIAM StILZER

natural resources of New York State; a law for the completion of the State Capitol; a Constitutional amendment for the enlargement of the State's canals; a law establishing the Aquarium in New York city; a law establishing Bronx and Van Cortlandt parks in New York city; the law establishing the great New York Public Library, with funds largely contributed by Ex-Governor Samuel J. Tilden; and the law com- pelling the New York Central Railroad Company to ventilate and light the Fourth Avenue tunnel.

Entering the Assembly as one of its youngest mem- bers in 1890 he rapidly won fame, and power and in- fluence, and was one of the leaders in 18&2, the Demo- crats being in control of the body; Speaker of the Assembly in 1893 ; and leader of the minority in 1894. As Speaker of the Assembly he gave the people one of the cleanest, one of the most economical and one of the shortest sessions of the Legislature in years. He was one of the fairest and most impartial presid- ing officers in the history of the State.

In 1894 Mr. Sulzer declined a renomination to the Assembly, and was nominated for Congress by the Democratic party in the Tenth Congressional District, which then formed a part of New York county, on the ' ' East Side " — a strong Republican bailiwick. That year there was a Republican " landslide " and the Democratic party carried only five Congressional districts north of Mason and Dixon's line. Three of these were in New York city and one was Mr. Sulzer 's district. Mr. Sulzer was elected by over 800 majority, although David B. Hill, the Democratic candidate for Governor lost the district by over 11,000. Two years later Mr. Sulzer as a candidate for Congressman was the only Democrat elected in his district, which he car-

Biography of William Sxjlzek vii

ried by three times the majority he received the first time he ran. This was the year of William J.. Bryan's first campaign as a Democratic candidate for Presi- dent, and although Mr. Sulzer was a staunch sup- porter of Mr. Bryan, the latter lost the Tenth Con- gress District by over 17,000 votes while Mr, Sulzer carried it by over 2,400. Four years later Mr. Mc- Kinley running against Mr. Bryan the second time carried the Tenth Congress District by 11,000, while Mr. Sulzer was elected by over 5,000. In 1906 Mr. Sulzer carried the district by over 11,000, receiving 75 per cent, of the entire vote cast. He. is the only Democrat who has ever been able to carry the old Tenth District since Cleveland carried it for Presi- dent in 1892.

For eighteen years Mr. Sulzer was a member of Congress. In that period lie was the author of more than twenty-five distinct bills embodying progressive legislation. One law passed, provided for the raising of the battleship Maine ; a second law provided a light for the Statue of Liberty in New York harbor ; a third law increased the pay of the letter carriers of the country. One of the chief laws framed and pressed by him, created the Bureau of Corporations-^ by which the anti-trust laws have since been enforced. He was the author of and succeeded in passing a pen- sion law for the orphans and widows of the deceased soldiers and sailors of the Union army. He introduced the bill to regulate the interstate commerce railroads; the bill in behalf of victims of the disaster to the steamboat " General Slocum; " a bill to restore the merchant marine by giving preferential duties to American ships ; a bill for federal aid in the construc- tion of good national roads ; a bill to reduce the tariff,

viii Biography of William Sulzkh

especially on goods, wares and merchandise manu- factured in tihe United States and sold cheaper in foreign countries than here; a bill placing on the free list meat, wood pulp, coal, lumber and white print paper; a bill to establish postal savings banks; a bill to establish a Department of Transportation ; a bill to improve the Foreign Consular and diplomatic serv- ice; and a bill prohibiting the sailing of any ship from the United; States unless equipped with safety devices.

He introduced and secured the passage of a resolu- tion expressing sympathy with the Cuban patriots; the resolution of sympathy for the Boers in their heroic struggle to maintain their independence ; the resolution of sympathy with oppressed Russian Jews ; and the resolution abrogating the treaty with Russia, because that government refused to accept passports issued to Jewish citizens of this country. He also introduced a resolution to make October 12th, a legal holiday, to be called ' ' Columbus Day ; ' ' and he intro- duced and secured the passage of a resolution con- gratulating the people of China on the establishment of a republic.

Mr; Sulzer wielded a large influence in Congress, especially whien he became Chairman of the House Committee on Foreign Affairs. He steadily opposed any intervention in the affairs of Mexico. He stood firmly for peace, and became the eloquent champion of the rights of Latin America. He was the author of the resolution to abrogate; the Russian treaty of 1832, already referred to. It was passed by a vote of 300 to 1 — a memorial victory for the rights of American citizens.

Reisolutions, of which he was the author, provided

Biography or William Sulzbb is

for an investigation of the corrupt sale of tlie New York Custom House; started the movement for the election /pf United States Senators by the direct vote of the people ; originated the income tajc amendment to the United States Constitution; brought about the abrogation of the Bussian Treaty ; and the establish- ment of the parcels post.: ,; :

Foremo:st among the lachieyements of Mr. Sulzer's career in Congress was the passage in the House dur- ing the session of 1912 of his bill establishing a Departujent of Labor with a Secretary in the Cabinet. Smiled at as a preposterous idea tea years agOj this bill finally passed the lower House unanimously. Its passage in the Senate followed,

The signing of this Departjiaent of Labor bill was the last official act of President Taf t, and he did so on the personal appeal of Mr. Sulzer. The bill was first intrpdijeed by Mr, Sulzer in 1904, au^d was reintro- duced and advocated by him in every Congress since that time, i In support of the measure, on one occasion, he thus addressed the House of Representatives:

" My bill for a department of labor is a meritorious measure and it should be a law. It is the first bill ever introduced in Congress to create a Department of Labor. It is the first attempt to systematically classify labor in an intelligent way that has ever been presented in a bill in Congress, and its enactment into law will evidence a disposition on the part of the Crov- ernment to see to it that labor gets full recognition, the dignity of having a voice in the couneils of State, and the opportunity to have its plainja dispassionately discussed. Give labor this boon and the ' labor ques- tion ' will be reduced to the minimum.

' ' The expense of maintenance of the Department of Labor will practically be but little more than the ex-

X BiOGKAPHY OP William Sulzek

pense for the maintenance of the various bureaus at the present time. These bureaus will all be in the Department of Labor. I do not think anyone Will take exception to the bill on the ground that it is going to increase the isxpenses of the Government. A few thousand dollars in a matter of so much moment will be of little consequence. I believe that if this bill were on the statute books to-day it would be a long step toward better social, economical, and commercial con- ditions; a progressive advance along the avenues of industrial peace; that it would go far to allay jealousy, establish harmony, promote the general wel- fare, make the employer and employee better friends, prevent strikes, lockouts, blacklists, boycotts, and busi- ness paralysis, and every year save millions and millions of dollars of losses which result necessarily therefrom.

" Capital as well as labor should favor this Depart- ment of Labor, because it will go far to solve the labor problem and bring about industriah peace. For years this legislation has been advocated by the wage-earn- ers of the country. The billmeets with their appro- bation and has the' approval of the best thought in our land. It has been indorsed by some of the ablest thinkers, some of the wisest political economists, and ihany of our leading newspapers. The tiihe is ripe, it seems to me, for the creation of a Department of Labor with a secretary having a seat in the Cabinet, with all the rights and powers conferred by this bill. It will bring' labor and capital closer together, and one is dependent on the other. They should be friends — not enemies — and walk hand in hand in the march along the paths of mutual prosperity. This bill, if it- becomes a law, will go far to prevent serious labor

^loaKAPHY OF William Sulzek xi

troubles in,tlie future, do much to solve existing labor problems, and every friend of industrial peace gliquld aid in its enactment. ,;Tlie employers, of, labor, as \vell as the employees themselves, whether they belong to trades unions or nofc^, are all, so far as I,hav^ been able to ascertain, in. accord with the: principles of this progressive legislation gj^id heartily approve of this bill." , " , i.

It was not until 1912, however, that Mr. Sulzer .suc- ceeded in having the bill favorably reported, and when it came before the House it passed, \yithout a dissent- ing vote.

After Mr. Sulzer 's election as Governor he returned to Wasliington and spent about three weeks in Con- gress— partly for, the purpose 'of- urging, the passage in the Senate of his -bill creating a Department of Labor. It passed the Sena.te:the latter part of J^eb- ruary, 1913. ,

For two weeks prior to its passage friends of; the measure were in frequent communication with Gov- ernor Sulzer reporting its progress. On its passage the Governor exchanged several telegrams and letters with President Taft, urging him to give the measure his official ' approval. In the Senate the bill was slightly amended which made necessary its repassage in the House, where it was in charge of Mr.,^ulzer's friend, Congressman William B. Wilson, who has been made Secretary of Labor by President Wilson.

Mr. Sulzer 's bill provides for three assistant Secre- taries of Labor, the work of the Department being divided as follows: Manufacturing and agricultural industries; building of highways and transporta,tion industries, including the telephone and telegraph busi- ness; and the building and mercantile industries.

xii BlOGBAPHY OF WlLLIAM SxJLZEB

Bacb of the principal divisions of the Department of Labor will liave a Bureau of Statistics to collect and report at least once each year as to the conditions of labor in each of the different industries. Special attention will also be given to the collection and pub- lication of statistics regarding the unemployed.

One prime object of the new Department of Labor will be the establishment of Boards of Arbitration and Conciliation to prevent strikes, as well as to prevent labor disturbances among employees or corporations doing an interstate commerce business.

Mr. Sulzer's record in Congress is a monument to his indefatigable industry, and the enactment of pro- gressive legislation along constructive lines.

In January, 1908, Mr. Sulzer married Miss Clara Rodelheim, of Philadelphia, Pa'., and Mrs. Sulzer is as democratic and as popular with the people as her dis- tinguished husband.

Mr. Sulzer was elected Grovernor on November 5, ]912, by a plurality of 205,454, which was the largest plurality ever given in tlie State of New York for any candidate for Governor. He received 649,&59 votes as the Democratic candidate, while Job E. Hedges, Ee- publioan, received 444,105, and Oscar S. Straus, Pro- gressive, 393,163. Mr. Sulzer's large plurality was the more remarkable since Mr. Straus in his campaign declared for the reforms of which Mr. Sulzer for many years had been one of the leading advocates.

It will add to the interest of this character sketdi of William Sulzer to describe some of his habits and re- count some of his sayings which reveal him as a Gov- ernor different in many respects from any who have held office before him. During the campaign which preceded his election he made few promises as to his future policies. One of his oft repeated epigrams was

. BlOGKAPHY OF WiLiLIAM SuLZEK xiii

"An ounce of performance is worth a ton of promise." And he pointed out that his record of legislative achievement during five years at Albany and eighteen years at Washington gave the best forecast of what, principles would certainly guide him in administering the office of Governor. •' The record of the past," he said over and over again, " is the best guarantee for the future."

In many of Ms speeches he said ' ' when' I am elected Gfovernor the latch-string of the door of the executive office at Albany will always be on the outside, and it will not 'be so high but that the lowliest can reach it, and the humblest citizen of the State may come to Albany and see the Governor and be treated with as much consideration as the richest and most powerful. ' '

This promise which caused smiles of incredulity with some who did not know the man who made the promise has been carried out with a faithfulness that has resulted in practices which have destroyed many official precedents and rules of official procedure; precedents and rules which have prevailed for many years. It has been in some administrations the rule that few could see the Governor except through an appointment made with the secretary and to make such an appointment was often difficult. Only persons of distinction could get an appointment without first stating the object of their visit and many who wished to make such engagements were unable to show satis- factory evidence that they themselves or the subject of their visit, were of sufficient importance to merit a personal interview with the Chief Executive.

Since Mr. Sulzer has been Governor all this is changed. Man, woman or child, black or white, rich or poor, high or low, everyone who wants to see the Governor sees him and the richest and most powerful

Xiv BlOGBAPHY OF WiLLIAM SuLZEB

must wait and take their turn. This has caused some remonstrances to which the Governor only replies " I am a Democrat and must treat all alike."

So the Governor sees all his visitors in the large reception room of the Executive Chamber. Many have private conversations with him, seated by the side of his big desk. But there are no secret interviews in the so-called ' ' back office. ' ' This is the Governor 's work- shop where he needs only his stenographer.

There was considerable comment when on Inaugu- ration Day the customary military parade was omitted and the Governor walked from the " People 's,Hp]ise " to the Capitol to take the oath of office and deliver his inaugural address. " I wish " wrote Governor Sulzer to the Secretary of State, "that all the- ar- rangements for my inauguration to be as simple, and as economical, and as democratiq as possible." The simplicity which characterized the inaugural cere- monies has been paralleled; in many .ways in connection with the Governor's daily life. The Executive Man- sion has been rechristened " the People's House." The public was : invited to the Legislative Reception and the attendance was the largest, ever known. Albany newspapers declared that 10,000 persons were in attendance.

The rule: that the Governor must be attended when receiving visitors at the Executive Chamber by either his Military Secretary or his Private Secretary is ignored. So is the rule that on the street and at pub- lic functions one of his Secretaries shall always accom- pany him. Sometimes the Governor is accompanied and sometimes he is not. He prefers to go and come alone. Several times he, has attended public dinners in the. evening and afterward walked from the hotel where they were given to his home. The G-0,v-

Biography of William Sulzer xv

ernor always walks to and from the Capitol. His life and habits are simple in every way and democratic to the extreme.

Not only does the Governor show his democratic impulses and his disposition to keep closely in touch with the common man by meeting 'personally as many of his constituents as possible, but he keeps up a large daily correspondence with persons from all parts of the State, which makes his mail five times as volumi- nous as that of any of his predecessors, and he prizes highly not only letters of commendation, but also let- ters -which contain words of counsel or criticism re- garding public policies, appointments made, and legis- lative measures advocated.

Mr. Sulzer is progressive in his ideas ; takes a broad view of every question ; has few prejudices, and those dnly against intrenched wrongs he wants to see remedied. In his efforts for a common humanity he knows no race, no creed, and no previous condition. He is for man — that is all.

In his speech of acceptance. Governor Sulzer said : " I will go into office without a promise except my promise to all the people to serve them faithfully and honestly and to the best of my ability. I am free, without entanglements, and shall remain free. If elected I shall follow the street called straight and the Executive office will be in the Capitol. When I take the oath as Governor I shall enforce the laws fear- lessly and impartially, but with malice toward none. Those who know me best know that I stand firmly for certain fundamental principles — for liberty under law; for civil and religious freedom; for Constitu- tional government ; for the old integrities and the new humanities; for equality before the ilaw; for equal rights to all and special privileges for none; for the cause that lacks assistance; against the wrongs that

xvi BiOGEAPHY OF William Sulzee

need resistance; and for unshackled opportunity as the beacon-light of individual hope and the best guar- antee for the perpetuity of our free institutions. No influence will control me but the influence of my con- science, and my determination to do my full duty to all the people, as God gives me the light."

In his first annual message to the Legislature of 1913, Mr. Sulzer said:

" In view of the increasing expenditures in the ad- ministration of State affairs, mounting higher and higher each succeeding year, and necessarily imposing onerous burdens on our taxpayers, I recommend genu- ine retrenchment in every department of the State, to the end that expenditures be kept down to the mini- mum and taxation materially reduced.

" Unless this is done in a systematic way additional methods must be devised to raise greater revenue. I am in sympathy with the oppressed taxpayers of our State and to the best of my ability, will aid you in your efforts to lighten their burden. Nothing will gratify me more than to be able to say to the people when you adjourn that this Legislature was one of the most economical in the history of the State, and by its wisdom and economies wiped out every vestige of direct tax.

" The way to stop waste and extravagance is to retrench and economize. A cursory examination into State affairs convinces me that many expenditures can be stopped and efficiency promoted if every State officer will clean house, stop waste, and practice every economy consistent with good government and the orderly administration of public affairs.

*' Let us do our best, day in and day out, to save wherever it is possible, and make honesty, and sim- plicity, economy and efficiency, the watchwords of our administration of the people's business."

Biography of William Sulzee xvii

The Governor also said in his annual message that many worthy citizens had suggested -to . him the ad- visability of examining, through a Committee of In- quiry, into every department of the State government to ascertain where expenditures could be checked and the money of the taxpayers saved. A few days later he appointed John N. Carlisle, of Watertown; John H. Delaney, of the Borough of Brooklyn, New York; and H. Gordon Lynn, of the Borough of Manhattan, New York, a Committee of Inquiry, to examine and investigate the management and affairs of any and all departments, boards, bureaus or eommissions in the State. Thus for the first time in the history of the State a Committee of Inquiry was established. The Committee in its initial work recommended a decrease in the proposed appropriations for certain depart- ments. It followed up this action by an exhaustive consideration of the sinking funds of the State, reach- ing the, conclusion that there had been an excess of the necessary accumulations for the support of the sink- ing funds to the amount of $18,773,045.97. Comment- ing upon the report Governor Sulzer said:

' ' This huge accumulation of unnecessary moneys by thei I imposition of an inequitable tax year after year is. the result of, poor business administration of State affairs and would ultimately amount to a sum of: money in excess of the requirements of the whole amount of authorized bond issues of $234,'000',000. "

Still later the ; Committee of Inquiry stated that at every turn in their examination of State affairs they had noticed a lack qf system and method in the ad- ministration of the business of the State, a wide de- parture from anything like uniformity and an un- scientific and wasteful absence of appropriate pro- visions for the promotion of economy. With the view

xviii Biography of William Stjlzer

of remedying these evils the Committee of Inquiry proposed the creation of a Department of Efficiency and Economy ; of a State Board of Estimate ; of a State Board of Contract and Supply ; and the passage of a bill giving the State Comptroller ample powers of auditing the accounts of all State departments.

Commenting upon the bills to carry out these re- forms" Governor Sulzer said: " These bills meet my approval and will now be introduced in the Legisla- ture. They will put the administration of State affairs on a business basis, I want to do that, and these bills will do it. I trust they will promptly be passed. When they become laws it will mean the saving to the tax- payers of millions of dollars every year. ' '

In a message addressed to the Legislature early in his administration. Governor Sulzer called attention to the necessity of remedial legislation regarding stock exchanges, treating of " manipulation," " concerted movements to deceive," " short sales," " hypotheca- tion of securities," "trading against customers' orders," " usury," etc. Eleven bills were prepared by the Governor and introduced in both Houses of the Legislature to carry his recommendations into' effect.

The second week of his administration Governor Sulzer appointed a special commission to collect facts, receive suggestions and make recommendations as to changes in the Public Health Laws and their admin- istration. This special commission of eminent citizens consisted of Hermann M. Biggs, M. D., chairman; Homer Folks, secretary; John A. Kingsbury, assistant secretary; E. E. Baldwin, M. D., W. E. Milbank, M. D., Mary Adelaide Nutting, John C. Otis, M. D., and Ansley Wilcox.

" In five weeks," as Governor Sulzer said in a mes- sage to the Legislature, " the comtoission collected a

Biography' op William Sulzee xix

surprisingly large amount of authoritative informa- tion witli regard to public health work in the various parts of the State, and submitted findings and recom- mendations :of great interest for the improvement of the laws relating to health." '

At a complimentary dinner given in his honor at the celebrated Lotos Club, New York city, Saturday night, February 8, 1913, Mr. Sulzer -spoke in part, as follows :

"As many of you know, from reading the news- papers, I have been a very busy man ever since I took the oath of office as the Governor of the State. To tell the truth I have been working on an average about eighteen hours out of the twenty-four, and this is the first public dinner, or reception, or entertainment, I have been able to attend since the first day of January. Being Governor of New York is no easy job — that is if you want to be The Governor.

" The members of the Lotos Club are famous for their knowledge of literature, and are familiar, there- fore, with the advice Don Quixote gave his faithful follower on ' How to be a Governor;' and the subtle reply of that diplomatic individual when he said : ' He would rather be Sancho Panza and go to Heaven, than be a Governor and go to Hell.' Many people, I am reminded daily, take the same view concerning' the ultimate destiny of the Governor of the Empire State. All of which goes to prove that although we live in a progressive period, human nature is much the same. now as it was in the days of the gallant Knight of de la Mancha.

" Before 1 was elected I made up my mind, if Suc- cessful, to be the Governor of all the people. I am going to be. I intend to do the best I can, in my own way, according to my own light, regardless of the

XX BlOGKAPHY OP WiLLIAM SuLZEK

political future, or of personal consequences, because I know that the political future is uncertain^ and that consequences are unpi tying.

"Long ago I made a vow to the people that if I became Governor no influence would control me but the dictates of my consqience and my determination to do my duty day in and day out, as I see the right. Have no fear. I shall stick to that.

' ' I stand now where I always have stood, and where I always will standi for certain fundamental prin- ciples — for freedom of speech ; for the right of .law- ful assembly ; for the freedom of the press ; for liberty under law; for civil and religious freedom; for consti- tutional government; for equality and justice to all; for home rule; for the reserved rights of the State; for equal rights to every one, and special privileges to no one ; and for unshackled opportunity as the beacon light of individual hope, and the best guarantee for the perpetuity of our free institutions.

' ' New York is the greatest State in the Union. It should always be an exemplar of economical and . efficient and progressive administration. As its Gov- ernor I shall, in so far as I can, give the people of the State, an honest, an efficieat, an economical and a busi- nesslike administration of public affairs. I say busi- nesslike advisedly, because I assure the business men in every part of our State that they can rely on me at all times to do my utmost to promote the commercial interests of our commonwealth, il realize how impor- tant they are, and shall always be exceedingly careful to take no step that will jeopardize the financial and the commercial supremacy of the first State in the Republic.

' ' Suffice it to say that I am a friend of every business whether big or little, so long as it is legitimate, and

Biography of William Sulzer xxi

will always have its welfare in view in the administra- tion of State' affairs. To this end I shall continue to work unceasingly for quicker and better transportation agencies, and- for improved and larger terminal facilities, in order that New York shall oontiltue to receive her just share of the trade and the commerce of the country. "'

" Whenevier in doubt, it is my purpose to confide in the people, and I indulge the hope that when my official term comes to an end I shall have accomplished something to merit their approval, and to justify the confidence they have reposed in the rectitude of my intentions.

" That is all there is to it, and that is all there is to say just now. I have little vanity. I want no glory — no credit for doing my duty — no future preferment — and when the ofiSce the people gave me goes back to the people — to whom it belongs — to give to some other man^I say again, and I say advisedly — I want to retire frCm the misrepresentations and the disappoint- ments of political life — to a little farm, by the side of the road, and be the friend of man."

Mr. Sulzer is a hard worker — and puts in about sixteen hours a day toiling for the State. He resorts to no political arts or personal pretenses. He is just a plain, common, every-day plodding, good-natured citizen, sincere, square, and loyal in every fiber of his manhood. He does not command support by subtle influences, trickery, hypocrisy, self -advertising and the command of wealth, like some others, but succeeds solely through his brains, his intrepidity and his fidelity to friends and to principles. He never had a press agent. He never financed a publicity bureau. He never paid for puffs. He does his work day in and day out, year after year, quietly, modestly, confident the

Xxii BlOGKA-PHY OF WiLLIAM SULZEK

results will ultimately speak for themselves, and con- scious of the fact that the knowledge of duty well done, for duty's sake, and in the cause of freedom and righteousness and humanity, is after all the best reward and the most lasting recompense a puhlic servant can have.

Mr. Sulzer has always been a very modest man con- cerning his own achievements.: And yet the more the people know about Mr. Sulzer the better they like him. As the record of his achievements is unfolded the greater and the grander stands out the man — the plain man of the plain people — and they know him ^andthey love liim — this man who does things for the people for the intense love of doing them, and goes his way day after day happy in the consciousness that there is work to do, and that he is doing his share in Ms day and generation to make the world better and happier as the Master intended.

Grovernor Sulzer is a '' Commoner " through and through. The more you know about him — the more you see of him — the more you study him at close range — the more you like him and the more you will appre- ciate what he has done, and glory in his trials and his triumphs. He needs no eulogy. His career of struggle for higher and better things from a poor farm boy to the Grovernorship of the greatest State in the Union is an epic poem.

Mr. Sulzer is of large stature, standing over six feet in height witli a weight of 185 pounds which he carries with the grace of a trained athlete. He is abstemious; has sandy hair and steel blue eyes that look straight into yours, and read your innermost thoughts. During the war with Spain he organized a regiment of volun- teers and was elected colonel, but for political reasons it was not, called into active service. Two of his

BlOGEAPHY OF WlLiLIAM SuLZEE XXld

younger brothers — a captain and a lieutenant — died in the service of their country.

At a recent banquet of the Home Rule Conference and Municipal Government Association of New York State and the Legislative Committee of the New York State Conference of Mayors, at the Hotel Ten Eyck, Albany, N. Y., Thursday evening, March 13, 1913, Mr. Sulzer said in part :

" The sentiment back of the demand for home rule is the same sentiment that animated the patriotic fathers in their heroic striiggle for Independence. It breathes the spirit of the Declaration, and it voices the aspirations of every lover of Liberty.

' ' No man is more in favor of home rule than I am. It is a part of my political religion. I believe in local self-government for village, and for town, and for city, and for county; and I know that the people are capable of self-government. A denial of this proposi- tion is ail indictment of American intelligence and patriotism.

' ' In my message to the Legislature I said : ' Let us stand squarely for home rule and local self-govern- ment— home rule for the State — for the reserved rights of the State — against encroachments by tho central government at Washington. Home rule for the counties, and the cities, and the towns, and the village's of the State, against legislative tinkering and inva- sion. ' I stand for that. There will be no step back- ward.

" I believe in local autonomy as a fundamental right. The experience of years has taught us that many of the evils the people want remedied ; that most of the tilings the people want done; can be remedied, and can be

xxiv Biography of William Sulzeb

done, through local agencies^ without interference by the National and State Legislatures.

' ' Let me urge the people to be firm at all times for home rule; and for the rights of the people in their respective communities to govern themselves polit- ically, without legislative interference except when absolutely necessary. In the future as in the past I shall adhere to that without deviation. The people ciin count on me, as the Governor of the State, not to interfere with home rule in any locality if I can possibly avoid it. If I do interfere, directly, it must be for the general welfare, and then only in a case that rises superior to local considerations and for the good of the common weal.

" I am now, and ever have been, in accord with that fundamental principle of American statesmanship which asserts that the States in themselves are sov- ereigns, and I stand unequivocally for their reserved rights against the tendencies of centralization of the Federal Grovernment. We know that the States are divided into counties, and that each county, in so far as possible, should have the right to govern itself iu civil and political matters. For that reason, as the Gov- ernor, I am determined to recognize the rights of the counties in every part of the State through their dulj- constituted officials and their electoral machinery.

' ' Then again, the counties have within their confines, the villages, the towns, and the cities; and I want to see the greatest amount of local authority concentrated in the hands of the officials of these constituent part? of the counties of the State.

"As Thomas Jefferson well said, ' If we are directed from Washington when to sow and when to reap we sh^ll soon want bread. ' If that applies to the seat of the Federal Government in connection with the rights

BlOGRAPHV OF WllAIAM SuLZEE XXV

of the states, it applies ^\'itll greater force to the seat of the State Government in connection with the rights of the counties, the cities, the towns, and the vil- lages of the State.

" We know that in the diversification of po'^er lies the safety of the State. We cannot deliy the proposition that one generation is as capaihle as another of taking care of its own local aifairs and solving its own local probteins. Ralph Waldo Emerson said: 'AH forms of government are ridiculous except thoSe which men make for themselves. '

' ' You remember Mark Twain once said, ' when in doubt take a drink. ' My policy as Gk)vem6r is a little different — when in dotfbt I shall confide in the people. I enunciated that idea in rriy inaugural address, and have been practising it now and then as occasion arises. I know' the power of public opinion. I believe that all the people are wiser than a few of thfe pfeople. PubKc opinion is the safest guide for legislation as well as political conduct. As the Bible salys: * In a multitude of counsel there is much wisdom. " : : ' „

" Cities should be as free from interference from the State as the States should be free ftom interference by the Federal Grovemment. Municipalities should be independent in matter's df purely local concern, and they should have the right to adopt their own charter, just as the people of the State have the right to adopt their own constitution. Municipalities should have the right to call a city charter convention the saiiie as the people of the State have the right to call a constitu- tional convention.

" The trouble with the cities is not too much democrafcy but too little demoera cy. There is too muel i State control. We need Home Rule to create city democracies, like those of Athens arid'Rohle. It was

XXVI BlOGKAPHy OF WiLLIAM SULZER

freedom that inspired in these cities local patriotism such as seldom has been equalled in all the annals of the world.

" Home Rule is the demand on the part of the people to be trusted — : trusted to govern themselves. Democ- racy rather than class interest is becoming intelligent^ organized. With the growth of cities thej- are becom- ing political units of great importance to the State. The opponents of Home Rule distrust democracy, but I do not fear the people. I fear special privileges. Home rulers trust the people, their opponents fear popular control.

" It is because, of the survival of old monarchial ideas that our cities are not more independent. We proceed on the theory, that the sovereignty which grants a city charter is a power similar to that formerly wielded by kings and emperors. It is a, concession apparently that we grant to cities power to do this or that. But in a republic such as ours the sovereignty resides in the people. The electors are the so»vereigns. All just governments obtain their powers ,from the consent of the people.

"We have the highest authority for Home Rule. Thomas Jefferson bplieved that the permanency of our nation depended upon distribution of the powers of government.

"The diversification of power is necessary for the safety of the State. Home Rule is the aspiration of tho progressive spirit of our times, which demands that affairs of government shall be placed close to the people and kept there. When legislation for a com- munity is carried on at a distance remote public opin- ion fails to properly influence that legislation.

" Public hearings are efforts to overcome this evil. It is better to have our legislative body close to the

Biography of William Sulzer xxvii

community thaji to takie representatives of a com- munity long distances to meet the Legislature.

" Let our cities be kept as free from State invasion as the State is kept free from national interference. As states adopt their own constitutions so should cities adopt their own charters. The cure for the evils of democracy is more democracy."

Mr. Sulzer, without doubt, is the best vote getter to-day in the State of New York. He has always run thousands of votes ahead of his ticket. He has never been defeated. He is a man of the people and for the people.

He is a 32d degree Mason, has held all the honors in the craft, and years ago became a life member. He is a member of Lloyd Aspinall Post, G. A. E. ; the Army and Navy Union; the Eagles; the Pioneers of Alaska; thef Arctic' Brotherhood; the National-Democratic Club ; Manhattan; Club ; Press Club ; 'Masonic Club ; and other social clubs in Washington and New York city. His church aflSliations are with the Presbyterian denomination. His most profitable reading has been history, philosophy and political economy; and his advice to young men is to work hard, cultivate good habits, have a motive in life and a positive determina- tion to succeed.

Mr. Sulzer is a very busy man, but his spare hours are spent in writing a book on " Political Economy," which his friends believe will be a standard text-book on economic principles. His rugged honesty, his loyalty to liis friends, his fearles.s devotion to every duty, his fidelity to principle, his ability as a champion of the oppressed in every land and in every clime have made his name a household word among the people of America, and^f^as an apostle of freedom forever enshrined him in the hearts of humanity.

xxviii BiOGBAPHY OF William Sulzee

Grovernor Sulzer was removed from office on October 17, 1913. The verdict of the court was no sooner pro- nounced than plans were under way for a public demon- stration of affection and esteem to the deposed Gov- ernor, from the citizens of Albany. A meeting was held the same night at the Ten Eyck hotel, and ar- rangements were made for a presentation on the fol- lo-ftdng night of a loving cup, which was inscribed as follows : :

PRESENTED

TO

HON. WILLIAM SULZER

BY

THE CITIZENS OF ALBANY

IN LOVING REMEMBRANCE OF DUTIES WELL PERFORMED

A MARTYR TO THE CAUSE OF HONEST GOVERNMENT

OCTOBER 18TH, 1913.

'-}

It is estimated that at the ceremonies, at the execu- tive mansion, in connection with the presentation of this cup, between 8,000 and 10,000 persons were in attendance.

On Monday morning, Octdber 20th, a committee of citizens from the' 6th Assembly district in New York City called on Mr. Sulzer, to urge his acceptance of a nomination for Member of Assembly from that district. He accepted and was elected by a majority of almost tw"ti to one Over the candidate who received the neit highest number of votes;

Biography of William Sulzee xxix

The campaign was pronounced one of the most re- markable in the history of the State. The intense enthusiasm displayed at every meeting at which the Grovernor appeared was unparalleled. In the neighbor- hood of every meeting place the streets were choked with cheering men and women, who for blocks crowded the sidewalk, and the streets themselves, from curb to curb.

The election was regarded not only as a vindication of Governor Sulzer, and a condemnation of the court of infamy which removed him from office, but also as a vote of approval of what the Governor did and tried to do in behalf of honest government and to promote the rule of the people.

Mr. Sulzer 's candidacy did much to promote the elec- tion of John Purroy Mitchell as Mayor, for it em- phasized the issue of corrupt bossism in a most pro- nounced way. The speeches of Mr. Sulzer and those of John A. Hennessey were the central features of the campaign. The people of New York city knew bossism as an evil, rank, greedy and arrogant. It had always been reaching out for power through the control of conventions and elections, but when Governor Sulzer showed its shameless audacity in removing from a great office, one whom it could not control, he aroused the sentiment that led to the ignominious defeat of almost every Tammany candidate and Mr. Mitchell was elected mayor by a plurality of over 121,000, the largest ever given a mayoralty candidate in New York city.

I

INAUGURATION

INAUGURATION

William Sulzer was inducted into office as Governor of the State of New York at noon on January 1, 1913. The ceremonies of his assumption of office were held in the Assembly Chamber of the State Capitol in Albany. Mr. Sulzer had walked to the Capitol from the Executive Mansion in company with the Hon. John A. Dix, tlie retiring Governor of the State. The cere- monies began with prayer by the Rt. Rev. T. M. A. Burke, Bishop of the Roman Catholic diocese of Albany; who invoked Divine favor " in behalf of him whose fellow citizens had seen fit to make the Governor of this great Empire State in order that he may attain eminent success in the wise, fearless and diligent ad- ministration of the affair's of this sovereign State." Mr. Dix then welcomed Mr. Sulzer to the office of Governor. Mr. Sulzer was thereupon sworn into office by the Hon. Mitchell May, Secretary of State, who then presented him to the audience as " the Governor of -the State of New York."

Governor Sulzer addressing the audience, then said :

Fellow Citizens : — I realize to the fullest extent the solemnity of the obligation I have just taken as the Governor of New York. Conscious 6t my own limita- tions I keenly appreciate the responsibilities it entails.

Grateful to the people who have honored me with their suffrages, I enter upon the performance of the duties of the office without a promise, except my pledge to all the people to serve them faithfully and honestly

[5]

6 Public Papers of Goveenok Stjlzeb

and to the best of my ability. I am free, without en- tanglements, and shall remain free. No influence con- trols me but the dictates of my conscience and my determination to do my duty, day in and day out, as I see the right, regardless of consequences. In the future, as in the past, I will walk the street cajled straight, and without fea,r and .without favor I shall execute the laws justly a,nd impartially — ^with malice toward none.

Those who know me best know tha;t I stand firmly for cei'tain fundamental principles ^^ for freedom of speech; for the right of laAvful assembly; for the free- dom, of the press; for liberty under law; for civil, and religious freedom; for constitutional government ; ior equality and justice to, all; for, home rule, and the re- served rights of the State; for equal rights to every one, and special privileges to no. one; and for un- shackled opportunity as the beacon light of individual hope and the best guarantee for the perpetuity of our free institutions.

New York is the greatest State i-n the Union. It should always stand as an (exemplar of economical and efficient and progressive administration. As its Governor I shall, in so far as I can, give the people of the State, an honest, an efficient, an economical and a business-like administration of public affairs. I say business-like advisedly^ because I assure the business men in every, part of the ;State that they can rely on me at all times to do my utmost to promote the com- mercial interests of our commonwealth. I realize how important they are,, and shall always be exceedingly careful to take no step that will jeopardize the financial and the commercial supremacy of the first State in the Republic.

iNAUetUBATION: 7

..y Suffice it to say that I am a friend of every business, whetlier big or little, so long as it is legitimate,- and will always Jiave its welfare in view in the administra- tion of State affairs. To this end I shall work un- ceasingly for quicker and better transportation agen- cies, and for improved and larger terminal facilities, iur order that New York shall icontinue to ; receive her just share of the trade and the commerce of the country. • jj

It is my .purpose to be the Governor of all the people, and, in so far as possible, to follow in the footsteps of Silas Wright in the honesty and the simplicity of my administration; and to the best of my ability try to emulate the example of Samuel J. Tilden in my efforts for progressive reforms along constructive and con- stitutional lines. f 0^ ^«< jji Let me ask all to be patient and charitable. To avoid mistakes I must go slow. It is better to be sIoav than to be sorry.

I know that I am human, and that I shall make mis- takes in human ways. Being human I believe in the welfare of my fellow man, and whatever concerns the good of humanity appeals to me, and will ever have my constant care and earnest consideration.

Whatever I do as Governor will always be open to all and above board. I shall confide in the people, and I indulge the hope that when my official term, this day begun, comes to an end, that I shall have accomplished something to merit their approval, and to justify the confidence they have reposed in my intentions. Hence I shall promise little, but work unceasingly to secure the things now demanded by the people. They know an ounce of performance is worth a ton of promise, and they will judge my administration not by what I say now but what I do hereafter.

8 Public Papers of GoVeknor Sulzee

The hour has struck, and the task of administrative reform is mine. The cause is the cause of the State, and is worthy of the zealous efforts of any man. I grasp the opportunity the people now give me, and am resolved to shirk no responsibility; to work for the welfare of the people; to correct every existing abuse; to abolish useless offices, and wherever possible con- solidate bureaus and commissions to secure greater economy and more efficiency; to uproot official corrup- tion and to raise higher the standard of official integ- rity; to simplify the methods of orderly administra- tion; to advance the prosperity of all the people; to be ever dissatisfied with conditions that can be im- proved; to promote the common weal; to guard the honor, and protect the rights of the Empire State; and last but not least to reduce governmental expendi- tures to the minimum, and thus lessen as much as possible the heavy burdens of taxation.

II

PROCLAriATIONS

II

PROCLAMATIONS Upon the Death of Frank S. Black

.. - :i PROCLAMATION

State of New York — Executive Chambek

New York mourns tlie death of one of her most dis- tinguished citizens.

Frank S. Black who was Governor in 1897 and 1898 was a man of much intellectual and moral power. He will be recognized by future historians as a Governor who showed in all respects those qualities which entitle him to rank as a real state^mq.n.

In ea,rly life he had only those advantages which come from the possession of an indomitable will firmly set to overcome every obstacle in the pathway to success. He commenced with the lowest round and cliipbefl to the top of th,e, ladder of fame. As a boy upon his father's rock-bound farm in Maine; as a student in Lebanon Academy, wheJre he was known as an able debater ; as a student in Dartniouth College, where he won distinction as a public speaker ; as an editor of a' country weekly iii Johnstown, Fulton county; as k la^^^et in Troy, wherehe became h leader in the movement for ballot teform; as a, member of Congress, where he took an a'ctiVe position ; and as one of New York's commanding Governors he showed ability of a high order.

In his dealth our State loses a distinguished son, and our country a patriotic citizen.

In order to appropriately express in behalf of the people respect for the public services' of Frank S-

12 Public Papers of Governor Sulzer

Black, I, William Sulzer, Governor of the State of New York, request that the flags upon all public buildings, including armories and arsenals, be displayed at half- mast until and including the day of his funeral; and that the Legislature of the State and all its citizens unite in paying suitable respect to the memory of a former Governor who was true to the best traditions of the State.

Given, under my hand and the Privy Seal of the

State at the Capitol in the city of Albany,

[l. S.J this twenty-second day of Maiich in the year

of our Lord one thousand nine hundred and

thirteen.

(Sig-ned) WM. SULZER By the Governor:

Chester C. Platt

Secretary to the Governor

Disaster of Flood in States of Ohio and Indiana PROCLAMATION

State op New York — Executive Chamber

A terrible disaster of flood unparalleled for years in its destruction of hujman life and property has dev- fistated the States of Ohio and Indiana. Tho^san^ of lives and millions of dollars of property have been de- stroyed and othpj" thousands of our fellow citizens are rendered homeless and destitute. The magnitude of the calamity appeals to all and makes it imperative that aid should be rendered immediately to the sufferers.

As Governor qf the State of New York, and Presi- dent of the New York St^te Board of The American

Proclamations 13

RedtUross, I appeal to the people of the State of New Yoi'k to extend relief and render such financial help as they can to the best of their means and ability.

Cbntributions in the form of money, clothing and other essentials should be sent to Jacob H. iSchiff, Treasurer of the New York State Board of The Ameri- can Red Cross, 52 William street, New York City; or to Miss Mabel T. Boardman, Chairman of the National Board of The American Red Cross, Washington^ D. C.

Given under my hand and the Privy Seal of the

State at the Capitol in the city of Albany,

[l. s.] this twenty-sixth day of March in the year

of our Lord one thousand nine hundred and

thirteen.

( Sighed) WM. SULZBR By the Governor :

Chester C. Platt

Secretary to the Governor

Proclamation and Statement by the Governor

In Regard to Repealing the Exceptions and Limitations on Taxable Transfers, and in Relation to Franchise Tax and Credit on Account of Purchase of State Bonds

PROCLAMATION

State of New York — Executive Chamber

To All' Concerned — ■ Particularly Those Who Are Holders of, or Intend to Purchase State Bonds .

Whereas, By chapter three hundred and fifty-six, and chapter three hundred and fifty-seven of the laws of nineteen hundred and thirteen, certain alleged ex-

14 Public Papers of Govbrkob Sulzbb

emptiojis and advantages are given to certain State bonds ; and

Whereas, It has been deemed expedient in the inter- est of the G-eneral Welfare, to repea/1 such alleged ex- emptions and advantages given by said laws, at the earliest opportunity ; and

Whereas, To that end it is my purpose to call the , Legislature of the State of New York in Extraordinary Session, for the purpose, ahiong others, of repealing the said laws ; and

Whereas, Certain holders of State bonds and certain citizens about to invest in such State obliga- tions may deem the said alleged exemptions and advantages to be continuous and permanent.

Now, Thereeore, I, William Sulzer, Governor of the State of New York, to the end that all persons may have no misunderstanding regarding the force and effect of chapters three hundred and fifty-six and three hundred and fifty-seven of the Laws of nineteen hun- dred and thirteen :

I Do Hereby Proclaim that bills will be introduced at an Extraordinary Session of the Legislature, shortly to be called, to repeal said chapters ttree hun- dred and fifty-six and three hundred and fifty-seven of the Laws bf nineteen hundred and thirteen.

Given under my hand and the Privy Seal of the State, at the Capitol in the city of Albany, [l. s.] this sixth day of May, in the year of our Lord one thousand nine hundred and thir- teen.

(Signed) , WM. SULZER By the Governor :

Chester C. Platt

Secretary to the Governor

ProcjoAMations 15

Statement by Governor

May 6, 1913 J

" On April 24, 1913," said Governor Sulzer, " at the request Of tlie (acting^ State Comptroller, Mr. Walsh, and on his advice that the measures were in the interest, and to the advantage, of the finances of the State, I approved as chapters 356 and 357 of the Laws of 1913 ' an act to amend the Tax Law, in rela- tion to exceptions and limitations on taxable trans- fets;' and ' an act to amend the Tax Law, in, relation to franchise tax and credit on account of purchase of State bonds.' »■ v» ^i^.oi.

' ' On April 28, 1913, ' after a conference between Deputy State Comptroller Walsh, Mr. Lawson Purdy, chairman of the Board of Tax Commissioners of the City 'of' New York, aiid several other citizens of New York and State officials, I caused to be prepared and introduced into the Legislature, two separate bills re- pealing chapters 356 and 357 of the Laws of 1913 ; and, to assist their enactmentj'I ^ent emergency messages to both the Spnate and. the Assembly.

" The repealing measures' were introduced by Sen- ator Wagner in the Senate on April 28, 1913, and passed the Senate. -nP' Hno nrft "ii ^l iffn

' ' They were received in the Assembly, and although I was informed on Saturday afternoon that they had been passed in the 'Assembly,*- it is now established that wholly through oversight these bills fiailed of passage by the Assembly. ' ^ni'f*

"I am convinced that in order to ereate a ready and quick market for State bonds, it is :iecessary to make some change in the rate of interest which they bear and I had hoped that the Legislature, with the assistance of my emergency messages, would 'have passed the Wagner bills, introduced at my request, as

16 Public Papbbs of GoveeNob Sulzeb

well as a law permitting a higher rate of interest on State bonds, which may be issued in the future.

" Under the circumstances, it is my intention to cause the two Frawley laws to be repealed at the Special Session of the Legislature, which I intend to call at an early date.

"To that end that investors and purchasers of the State bonds may not be misguided, by reason of the fact that the Wagner repeal bills did not pass the Assembly at this session, I have prepared- and issued a proclamation to advise all concerned, and particu- larly those who may propose to invest in New York State bonds, that the provisions of chapters 356 and 357 of the Laws of 1913, will undoubtedly be repealed, and any supposed advantage accruing to these State bonds by reason of such laws will speedily be taken away. ' '

Convening the Legislature in Extraordinary Session PROCLAMATION

State of New Yoek — Executive Chamber

Pursuant to the power vested in me by section 4 of article IV of the Constitution, I hereby convene the Legislature in Extraordinary Session at the Capitol in the city of Albany on Monday, the 16th day of June, 1913, at half -past eight o 'clock, post meridian.

Given under my hand and the Privy Seal of the

State, at the Capitol in the city of Albany

[l. s.J this eighth day of May, in the year of our

Lord one thousand nine hundred and thir-

**®"- (Signed) WM. SULZER

By the Governor :

Chester C. Piatt

Secretary to the Governor

PEOCLAMATIOlUrS 17

Designating Saturday, June 14, 1913, as Flag Day

PROCLAMATION

State of New York — Executive Chamber

I, William Sulzer, Governor of the State of New York, by virtue of the authority vested in me, do hereby designate and appoint Saturday, the fourteenth day of June, of the present year, as Flag Day, and I suggest that suitable exercises be held by our patriotic citizens and by those in charge of the public schools, for the purpose of fittingly commemorating the one hundred and thirty-sixth anniversary of the adoption of the flag of the United States.

The vote of the Continental Congress, on June 14, 1777, during the first year of the existence of the United States reads thus: " Resolved that the flag of the thirteen United States be thirteen stripes alter- nate red and white on a blue field representing a new constellation. ' '

Its thirteen stripes represent the thirteen States which joined in making that declaration. The stars represent the sovereign States. The fact tJiat New York was one of these original thirteen States is the proud heritage of all her citizens, and all our people are justly proud that she is now one of the forty-eight States for whom the flag stands as the symbol of unity and of national glory.

We should ever remember that the flag of our coun- try typifies all that we are, and all that we hope to be — the greatest and the grandest Republic on earth.

In remembrance of all we owe the Flag of the Union ; in gratitude to the men who saved the Union; and in reverent thankfulness for the lives of all patriots, let

18 Public Papbks of Govekwob Sulzeb

civic pride take a higli place in this year's flag observ- ance. .,) ; ;.: : ;

Tile flag that floats over our land forever speaks of service for the common weal and signals forth our civic ideals.

Therefore I ask the people of New York, so far as may Ije practicable, to display the National emblem over their homes and places of business, on the day above appointed, and I hereby direct that the flag be displayed on all public , buildijigs in the State.

All honor to our flag which waves for all our citizens guarding "Life, liberty, and the pursuit of happiness ;" — the emblem of our united country — outshining the splendor of any republic of ancient or modern times. Given under my hand and the Privy Seal of the State at the Capitol in the city of Albany, this 12th day of June, in the year of' our [l. S.J Lord one thousand nine hundred and thir- teen, and of the Independence of the United States the one hundred and thirty-seventh. (Signed) WM. SULZEE

By the Governor:

Chester C. Platt ' _ Secretary to the Governor

Ill

PART 1

MESSAGES TO THE LEGISLATURE

Ill

MESSAGES TO THE LEGISLATURE Session Began January 1; Ended May 3'

ANNUAL MESSAGE

State of New Yobk — Executive Chamber

Albany, January 1, 1913. To THE Legislature :

In compliance with the niandate of the Constitution I communicate — by this message — the condition of the State, and hereby recommend to you such subjects as I now judge expedient and deem to be of immediate moment.

The Legislature

It is gratifying to me that jthe Legislature ha? so speedily organized, is ready for work, and that your honorable bodies are in political accord with the Executive. I indulge the hope that your session will be short, efficient, economical, beneficial to the State, and that we shall work in harmony for the best inter- ests of all the people. We are charged with the respon- sibilities, and we must meet in a patriotic way the ju,st expectations of our constituencies. The opportunity is ours, and I shall labor with you to redeem every pledge we have made, and to make this session of the Legislature memorable for fruitful results in our legislative annals.

The State

The importance of your duties cannot be over- estimated. Our State is the greatest in the Union. The people whom you represent are greater in nunaber

[21]

22 Public Papers of Governor Sulzer

than the population of our entire country a century ago, and their diversified interests a thousand times more extended and complicated. To-day our State possesses more than a twelfth part of alL the wealth of the Republic, and contains about one-tenth of the population of tlie entire country. Let us do all in our power to advance her material interests and promote her agricultural and coijamercial supremacy.

REPoiiTS OP Departments

It is my desire that this message "be as brief as is consistent with the importance of a communication of its character, and I shall supplement it at frequent intervals with further messages, making Such addi- tional recommendations as the circumstances may re- quire and the facts appear to demand. For detailed information concerning the work of the departments of the State I respectfully refer you to particular' re- ports presented to the Legislature concurrently with or shortly to follow this message. These voluminous reports have so increased in recent years that to devote to each subject matter but a brief space would enlarge this communication far beyond the purpose of my present intention. However, I doubt not you will give them, as I intend to do, the careful examination and the earnest consideration they immediately require and properly deserve.

Finances The transactions of the treasury during the fiscal year ended September i30, 1912, are summarized in the following statement:

Balance of cash on hand September 30, .1911 $20,185,392 16

Messages to the LEGisiATUEfi 23

General Fund Receipts (including trarisfers between funds). Direct State tax and special tax for

court expenses $6,326,823 13

Excise taxes 9,412,363 84

Corporation tax 10,349,164 76

Organization of corporations 472,959 81

Transfers (inheritance tax) 12,153,188 84

Stock transfers (stamp tax) 3,653,037 24

Secured debt tax 1,411,567 60

Mortgages 1,852,324 45

Motor vehicles 1,053,762 25

Other sources 3,351,214 16

Total, General Fund $50,036,406 08

Canal Fund 29,749,708 74 '

Highway Improvement Fund 8,423,897 19

Saratoga Springs Resen'ation Fund. 565,000 00

Trust Funds , 1,351,371 49

Transfers between funds 5,919,947 16

Total receipts $96,046,330 66

. ; , : . , $116,231,722 82

, . Ejtpenditures (including transfers between funds).

For the support of State government,

maintenance, construction and

betterments of institutions and

maintenance and repairs of canals

and highways $39,234,118 99

Saratoga Springs State Reservation

Fund 17,870 27

Canal Fund ." 25,824,526 89

Highway Improvement Fund 8,486,734 61

Saratoga State Reservation Fund. . . . 347,970 22 Palisades Interetate Park Debt Sink- ing Fund 100,000' 00

Trust Funds 417,617 21

Transfers between funds 5,919,947 IG

Total expenditures 80,348,785 35

Balance of cash on hand September 30, 1912 $35,882,937 47

24 Public Papers of Gqvkenok Sulzer

State Debt On September 30, 1911, the funded debt of the State

was $79,730,660 00

During the liscal year ended September 30, 1912, there were issued the following bonds : For canal construction and terminals. $25,407,000 00

For highway construction 8,000,000 00

For Saratoga Spring-s State Resen-a- tion ■ . . 565,000 00

Total $33,972,000 00

Less :

Canal bonds redeemed 4,000,000 00

29,972,000 00

Making a total funded debt of $109,702,660 00

Against which sinking funds have been provided amounting to 25,252,085 38

Leaving a net debt unprovided for on September 30, 1912, of $84,450,574 62

Sinking Funds Comparative statement of sinking funds' require- ments, showing large increase necessary to provide

for payment of increased debt :

Fiscal year ended September 30, 1912. 1913. *1914.

Canal Debt Sinking Funds $2,257,044 88 $4,442,263 33 $5,434,332 07

Highway Debt Sink- ing Funds 1,755,607 02 2,077,832 84 3.320,026 42

Palisades Interstate Park Debt Sinking Funds 126,515 97 137,787 32 137,787 32

Saratoga Springs

, State Reservation Fnnd 150,100 00 129,500 00

$4,139,227 87 $6,807,983 49 $9,022,245 81 • Estimated.

Messages to the Lbgislattjbe 25

Election by the People of Senatoes in Congress The Sixty-second Congress, in the second session, in both houses passed the following proposition to amend the Constitution of the United States, by a con- stitutional majority of two-thirds thereof, in "words following, to wit:

Joint Resolution of Congress Proposing an Amendment to Ihe Constitution Providing that Senators shall be Elected by the People of the Several States

-" Eesolved, By the Senate and House of Represen- tatives of the United States of America in Congress assembled (two-thirds of each house concurring therein). That in lieu of the first paragraph of section 3 of article 1 of the Constitution of the United States, and in lieu of so much of pa;ragraph 2 of the same sec- tion as relates to the filling of vacancies, the following be proposed as an amendment to the Constitution, which shall be valid to all intents and purposes as part of the Constitution when ratified by the Legislatures of three-fourths of the States :

' ' ' The Senate of the United States shall be com- posed of two Senators from each State, elected by the people thereof, for six years; and each Senator shall have one vote. The electors in each State shall have the qualifications requisite for electors of the most numerous branch of the State Legislatures.

" ' When vacancies happen in the representation of any State in the Senate, the executive authority of such State Shall issue writs of election to fill such va- cancies : Provided, that the Legislature of any State may empower the Executive thereof to make tempo- rary appointments until the people fill the vacancies by election as the Legislature may direct.

26 Public Papbes of Govebmob Sulzee

" ' This amendpient shall not be so oonstriued as to affect the election or term of any Senator chosen be- fore it becomes valid as part of the Constitution.' "

Its Ratification

This amendment of the Constitution of the United States should be immediately ratified. In moy opinion the people of our State are in favor of the election of United States Senators by a direct vote. I favor this change in the Federal Constitution, as I shall every other change that will restore the government in the control of the peoj)le. I want the people, in fact as well as in theory, to rule this great Eepublic and the government at all times to be responsive to their just demands.

The People Can be Teusted

The people can and ought to be trusted. They have demonstrated their ability for self-government. If the people cannot be trusted, then our governnoient is a failure, and the free institutions of the fathers doomed. We must rely on the people, and we must legislate in the interests of all the people and not for the benefit of the few.

To-day forty-eight United States Senators can pre- vent the enactment of a good law or the repeal of a bad law. This is too much power for forty-eight men to have in a free government of a hundred million of people unless they get the power directly from the people. The Uijited States Senate is the most power- ful legislative body in the world and its members should be elected by the people of the country just the same as the Representatives in Congress are elected. This is of the utmost importance to the country, be- cause when the Senate is directly responsible to the

Messages to the Legislatuee 27

people they will control it;. and. then, and not till then, will that august body respond to the will of the people.

High CoSt of Living

For more than teii years the. increasing cost of liv- ing, mounting higher ,and higher each succeeding year, has been the most immediate, the most pressing and the most universally observed fact about economic conditions in this country. While wages have re- mained practically the same the cost of the necessaries of life has grown more and more oppressive, until to- day the average man in our State^ with a family to support, has about all he can do to make both ends meet. I earnestly direct your careful consideration to this important matter concerning the people, and recommend that you^ take such action in the premises as you deem just and wise to reduce the high cost of the necessaries of life in order to make living less a struggle for physical existence.

Woman 's Sufpkage , . ,

In accordance with tile pledge made to the people in the recent campaign I recommend that th« Legislature declare in favor of submitting to the voters of the State, as soon as possible, the Woman Suffrage Con- stitutional Amendment.

Electobal Refoem

The reformation of our electoral laws is an import- ant matter, and I recommend to your favorable con- sideration amendments to existing laws, wherever ex- perience has demonstrated that changes are necessary, to improve their effective operation, to facilitate inde- pendent nominations, and to decrease the expenses of elections.

28 Public Papers of Goveknoh Svlzer

Direct Primaries

We are pledged to the principle of Direct Primaries, State-wide in their scope and character, and I urge the adoption of such amendments to. the existing primary- law as Avill simplify the procedure and make complete and more effective the Direct Primary system of the State.

GONSEEVATION

The question of the conservation of the natural re- sources of the State, and their development and utili- zation for the benefit of all the people, is a matter of vital importance to our commonwealth, and demands the most careful consideration at your hands. We should favor the preservation of our forests by intelli- gent forestry legislation. We should protect our water sheds, and utilize to the utmost our numerous rivers as they flow from the hills to the sea. This is the plain duty of the hour, and if we neglect it we invite the flood and create the desert.

As a people we have always been proud -of our abil- ity to accomplish results. We have long boasted of our magnificent heritage -of natural resources. We liave done many things to advance material civiliza- tion, and we have done them well. During the first period of development we directed our physical ener- gies and intellectual abilities toward developing the natural resources of the land. In our haste to achieve immediate results we often were wasteful of the wealth that then seemed inexhaustible. When the forests were laid waste, and the game vanished from our bor- ders ; when our lakes and rivers began to shrink, and the verdure of the prairies was parched from droughts or submerged by floods ; when the power problem be-

Messages to the Legislature 29

came more insistent, and the people demanded its iitilization, then and not until then did we turn our attention to conservation.

Value of Human Life

As we study the different phases of the problem a deeper appreciation of relative values demonstrates that the most fundamental element in true conserva- tion is the preservation of human life. If Americans would excel other nations in commerce, in manufac- ture, in science, in intellectual growth, and all other humane attainments, we must first possess a people, physically, mentally and morally fit and sound.

Any achievement that is purchased at the continued sacrifice of human life does not advance our material resources but detracts from the wealth of the State. The leaders of our civilization now realize these fun- damental truths, and the statesmen, the scientists, and the humanitarians are endeavoring more and more to protect human life, and to secure to each individual not only the right to life, but the right to decent standards of living. We have had to change old customs and repeal antiquated laws. We must now convince em- ployers that any industry that saps the vitality and destroys the initiative of the workers is detrimental to the best interests of the State and menaces the general welfare of the government.

We must try to work out practical legislation that will apply our social ideals and our views of industrial progress to secure for our men, women and children the greatest possible reserve of physical and mental force. I hold it to be self-evident that no industry has the right to sacrifice hupian life for its prpfit, but that just as each industry must reckpfl. in its cost of pro-

30 Public Papers op Goveenok Sulzeb

duction the material waste, so it should also count as a part of the cost of production the human wa:ste which it employs.

Workmen's Compensation Laws.

Many of our States have enacted wot-kmen's com- pensation or insurance laws. The production of our wealth in a large measure' is a tribute to the ability and the efficiency of the workers. It is only just then^ that those who do the work should receive an equitable share of that which they have helped to produce. No compensation is fair which does not secure to each worker at least enough to permit him, or her, decent standards of life. The workers themselves have .not always been able to secure such compensation for themselves. Particularly has this been true of women and children in whom the State should take an especial interest. To secure for these less accustomed to the competitive struggle, protection that other workers have won for themselves through organization, we should carefully consider the establishment of wage boards with authority to fix a living wage for condi- tions of work below which standards no industry should be allowed to continue its operations. Massa- chusetts has enacted such a law. Ohio recently adopted a cbnstitutional amendment authorizing the State Legislature to do the same.

Protection to Child Life

For the welfare of the State child life must be pro- tected. Not only should the child be guaranteed the right to be born equal, but it must be given the chanc6 to live, to grow, to learn, and to develop into useful and patriotic citizenship. The wofk period must not

Messages to the Legislatuke 31

be permitted to infringe on the foi*mulative and the maturing period. Compulsory edueational laws and restrictions upon child labor, properly enforced, will secure to every child of the State its rightful heritage. This development period will enhance national prog- ress and aid civilization. The niatured developed worker will bring to industry greater ability and re- sourcefulness. No business has an inalienable right to child labor. No industry has a right to rob the State of that which constitutes its greatest wealth. No commerce that depends on child labor for its suc- cess has a right to existj Let us do what we can to protect the children of; the State atid preserve their fundamental rights.

Safety Standards

Another type of legislation beneficial to the State, that aims to conserve human life and health, is that which requires the use of safety appliances and estab- lishes safety standards. Human life is infinitely more valuable than the profit of material things. The State for its own preservation has the right to demand the use of safer and more hygienic methods, even if at greater cost of productioiii to the employer. Occupa- tional diseases should be studied, and the results of careful investigation embodied in laws to safeguard the health and the lives of the workers.

Practical results of such legislation prove that these regulations are a good investment. Employers find that it pays to have healthy, vigorous, resourceful workers, who are well fed, well housed, and not -over- worked. Statistics prove that the welfare of ^ the worker is indissolubly involved in permanent indus- trial progress.

32 Public Papers of Governor Sulzer

Municipal Museums

One of the most practical and permanent aids in conservation of human resources is the establishment of municipal museums of safety and government re- search and investigation such as is carried on by the Federal Bureau of Mines. In these museums can be gathered and seen the results of the latest and best con- clusions of inventors, workmen and employers. So that those seeking information and help can secure it most quickly and with least expense. This study to safe- guard the life, body and health of the worker, is es- sential to true, scientific and industrial progress.

These brief observations are but a few of the methods by which we may conserve our human wealth. They represent, to some extent, my practical ideals. The conservation proposition in the last analysis is a problem of the prevention of the wrong and the adop- tion of the right methods. As the conceptions of our people become more fully realized, our laws will, re- flect more of humanity and the fellowship of mankind, and make for greater progress, for industrial peace, and for the better civilization.

Labor

Let us then be just to th« workers. No man can pay too high a tribute to ' ' labor. " It is the creative force of the world, the genius of accomplishment of the brain and the brawn of man, the spirit of all progress, and the milestones marking the advance of nations. Civili- zation owes everything to lalDor — to the constructive toiler, and the creative worker. Labor owes very little to civilization. Mother Earth is labor's best friend. From her forests and her fitdds, from her rooks and her rivers, the toiler has wrought all and brought forth the wonders of the world.

Messages to the Legislatube 33

I recommend legislation to so reorganize the Depart- ment of Labor that it shall have greater powers and a more comprehensive scope with additional agencies sufficient to investigate conditions, enforce th^ laws, and accomplish the greatest good for the greatest number — along practical and humanitarian lines.

Civil Sebvice

As a consistent friend of the merit system in the Civil Service it is my purpose to co-operate with you in protecting its integrity and promoting its efficiency.

Therefore, I recommend : That the State Civil Serv- ice Commission initiate constructive work along the line of standardizing promotion examinations, by in- troducing and maintaining efficiency records of all competitive employees; and request the co-operation of the heads of departments with the Civil Service Commission, in enforcing the present rules or any sup- plementary ones which the State Commission, may adopt to carry this plan into effect.

The State Civil Service Commission, in my judg- ment, should continue its efforts to bring about a more systematic administration of Civil Service laws in the cities of the second and third classes, by the adoption of a model set of rules, by uniform classifications of positions in the service of such cities, and by co-opera- tion and assistance in conducting and rating municipal examinations.

Law Eefobm

The need of reform in civil and criminal law is urgent, and I recommend the enactment of such legis- lation as will relieve the present legal system of the delays, the unnecessary expense, and the uncertainties incident to the present procedure. Vol. 1—2

34 Public Papers of Goveenoe Stilzeb

' AGEIOtTLTtrBB

We must keep the needs of the farmer evet before us. What the farmer produces is real wealth. To- day, when consumption has caught up with production, it behooves us to give attention to the land, and every kind of assistance to the tillers of the soil. Those of the cities who would return to farms must be en- couraged, and those of the farms must be aided to greater effort and larger profit. We are falling behind as an agricultural State.

To aid our farmers legislation that will secure greater production should be promoted. Let our people be provided with constructive legislation that will enable farmers to co-operate among themselves, so that farmers and city people can have the closest possible intercourse, and the products of the farm may be moved to customers with the least possible friction, at the smallest expense, and in the shortest time. We should help our farmers to secure the advantages of long loans at reasonable interest rates. The parcels post legislation just started should be further ex- tended so as to include an express post in order to make still freer the exchange of products between city and country.

Aid foe the Fabmees

Agricultural education, now in its infancy, must be fostered until agriculture is taught not only in a few colleges in the State, but in every high school in our commonwealth. Our game laws should be strength- ened to prevent thoughtless hunters from trespassing on farms during the game season unless freedom to hunt has been granted.

The State fair must be made an agricultural, an edu- cational and an industrial exposition, commissioned by

Messages to the Legislature 35

men in sympathy with its interests and capable of directing this great enterprise in all its channels. The State Agricultural Society, which has become such a splendid clearing house of farm thought, direction and publicity, should be encouraged to greater activity.

Our Department of Agriculture, one o^ the most use- ful administrative branches of the State Government, must never be allowed to become partisan in character, but held strictly to the line of agricultural promotion.

I recommend that whatever is within the power of the Legislature to do to sustain, to promote and to upbuild the agricultural resources of the Empire State, should speedily be done. I will work heartily with you, as well as the rank and file of farmers, to make the next two years the most prosperous, in an agricultural way, that this State has ever known. When the farmer is prosperous the State will flourish.

Good Eoads and Wateeways

The building and the maintenance of good roads ; the continued conservation and development of our natural resources ; and the constant improvement of our water- ways appeal to us now as they have in the past, and should have our earnest support and constant attention.

We know that good roads, like good streets,, make value of farm lands, facilitate transportation, and add habitation along them most desirable; they enhance the untold wealth to the producers and consumers of the country ; they economize time, give labor a lift and make millions in money; they sav(? wear and tear and worry and waste ; they beautify the countiy and bring it in touch with the city; they aid the social and religious and educational and the industrial progress of the people ; they make better homes and happier fire-

36 Public Papees of Goveknoe Sulzeb

sides ; they are the avenues of trade and the agencies of speedy communication; they mean the economical transportation of marketable products — the maximum burden at the minimum cost; they are the ligaments that bind the country together in thrift and industry and intelligence and patriotism; they promote social intercourse, prevent intellectual stagnation, and in- crease the happiness and prosperity of our producing masses; they contribute to the greatness of the city and the glory of the country, give employment to our idle workmen, distribute the necessaries of life — the products of the fields and the forests and the factories — encourage energy and husbandry, inculcate love for our scenic wonders, and make mankind better and happier.

In the near future I shall communicate to you some fui'ther views by way of recommendations regarding the building and maintenance of good roads, and the complete reorganization of the Department of High- ways into the Department of Q-ood Eoads, having a single responsible, experienced and competent head, with full powers to do the work required along safer and better and more comprehensive lines, in order to promote greater economy and a higher degree of efficiency in the future building and maintenance of good roads.

Home Rule

Let us stand squarely for Home Rule and local self- government — Home Rule for the State ^ — for the re- served rights of the State — against encroachments by the central government at Washington. Home Rule for the counties, and the cities, and the towns, and the villages of the State against legislative tinkering and invasion.

Messages to the Legislatuee 37

I believe in local autonomy as, a fundamental right. Long experience has taught me that many of the evils the people want remedied ; that most of the things the people want done, can be remedied and can be done through local agencies without interference by the National and State Legislatures.

Let me urge you to be firm at all times for Home Rule, and for the rights of the peppleJin,, their respec- tive communities to govern themselves politicatlyv as well as otherwise, without legislative interference ex- cept when absolutely necessary.

Taxation

In view of the increasing expenditures in the admin- istration of State affairs, mounting higher and higher each succeeding year, and necessarily imposing oner- ous burdens on our taxpayers, I recommend genuine retrenchment in every department of the State, to the end that expenditures be kept down to the minimum and taxation materially reduced.

Unless this is done in a systematic way additional methods must be devised to raise greater revenue. I am in sympathy with the oppressed taxpayers of our State and to the best of my ability will aid you in your efforts to lighten their burden. Nothing will gratify me more than to be able. to say to the people when you adjourn that this Legislature was one of the most economical in the history of the State, and by its wisdom and economies wiped out every vestige of direct tax.

The Way to Econ'Omize

The way to stop extravagance is to retrench and economize. A cursory examination into State affairs convinces me that many expenditures can be stopped

38 Public Papers of Govebnob Sxtlzeb

and efiSciency promoted if every State officer will clean house, stop waste and practice every economy con- sistent with good government and the orderly adminis- tration of public affairs.

Let us do our best, day in and day out, to save wher- ever it is possible, and make honesty and simplicity, economy and efficiency the watchwords of our admin- istration of the people's business.

Committee op Inqtjihy

Many worthy citizens have suggested to me the advisability of examining, throjigh a Committee of In- quiry, into every department of the State Government . to ascertain where expenditures can be checked and the money of the taxpayers saved, and also to recom- mend to the Legislature in this message the desirability of abolishing useless officies, consolidating wherever possible bureaus and commissions, with the sole object of more rigid economy and a greater degree of efficiency.

I recommend these wise and timely suggestions to your careful consideration, and promise to do my part to render you and the people all the aid I can to lessen the burdens of taxation.

Conclusion

The people are now looking to us to make good in the administration of State affairs. We live in a progressive age; the world is moving forward to a higher level, and mankind conscious of its power hopes for nobler things, and demands better government un- tirammeled by politicar expediency and unhampered by partisan considerations. We must be up and doing to keep pace with the best thought of the times. The

Messages to the Legislatuee 39

people hope much from us, and to merit their continued confidence and meet their just expectation it is incum- bent that we grasp the opportunity and accomplish the things desired.

(Signed) WM. SULZBE

Joint Resolution of Congress Proposing an Amendment to the Constitution Providing that Senators shall be Elected by the People of the Several States

State of New Yobk — Executive Chambeb

Albany, January 6, 1913 To the Legislatuee:

I have received from the Secretary of State, of the United States a certified copy of a resolution of Con- gress, entitled " Joint Resolution Proposing an Amend- ment to the Constitution providing that Senators shall be elected by the People of the several States, ' ' and in accoi:dance with his request I submit it to your hon- orable bodies for ratification in accordance with the expressed wishes of the people.

The amendment proposed by this joint resolution, adopted by two-thirds of both houses of Congress, is as follows :

' ' Resolved by the Senate and House of Representa- tives of the United States of America in Congress assembled (two-tjhirds of eg-ph House concurring therein), That in lieu of the first paragraph of section three of Article I of the Constitution of the United States, and in lieu of so much of paragraph two of the same section as relates to the filling of vacancies, the following be proposed as an amendment to the Con- stitution, which shall be valid to all intents and pur-

40 Public Papers of Goveknoe Sulzeb

poses as part of the Constitution when ratified by the legislatures of three-fourths of the States ;

' ' ' The Senate of the United States shall be com- posed of two Senators from each State, elected by the people thereof, for six years; and each Senator shall have one vote. The electors in each State shall have the qualifications requisite for electors of the most numerous branch of the State legislatures.

' ' ' When vacancies happen in the representation of any State in the Senate, the executive authority of such State shall issue writs of election to fill such vacancies ; Provided, That the legislature of any State may empower the executive thereof to make temporary appointments until the people fill the vacancies by elec- tion as the legislature may direct.

" ' This amendment shall not be so construed as to affect the election or term of any Senator chosen before it becomes valid as part of the Constitution. ' ' '

I indulge the hope that this amendment to the Fed- eral Constitution will be ratified without delay.

(Signed) WM. SULZER

Conservation of Natural Resources and Recommending Repeal of Charter Granted by the Legislature of 1907 to the Long Sault Development Company

State of New York — Executive Chamber

Albany, January 13, 1913 To THE Legislature :

In my recent message to your honorable body I recommended for your careful consideration, the con- servation of the natural resources of the State, and

Messages to the Legislatube 41

their development and utilization for the benefit of all the people.

We are the trustees of future generations. We must protect and preserve the rights of those who come after us. We should be true to our trust. This is the duty of the day, and the real solution of the problem of true conservation.

The State of New York, in my opinion, is now com- mitted to the policy of conserving all of its natural resources, and particularly of developing our vast water powers, so that they may be of benefit to all the people of the State.

In this connection I desire to call your official atten- tion to the unconstitutionality of a charter which was attempted to be granted by the Legislature of 1907 to the Long Sault Development Company by chapter 355 of the Laws of 1907.

Pursuant to a resolution of the Senate of this State, the Attorney-General, after careful and exhaustive con- sideration, transmitted to the Senate on January 1, 1913, in the form of an opinion, his conclusions as to the validity of the said act.

Suffice it to say that I .am fully in accord with the able opinion of the Attorney-General, which clearly demonstrates that said act is unconstitutional and void for the following reasons :

1. That the act in question contravenes section 18 of article 3 of the State Constitution, which provides that the Legislature shall not pass a private or local bill granting to any private corporation, association or individual any exclusive privilege, immunity or fran- chise whatever. This bill is private and local and grants an exclusive privilege,_as contemplated by sec- tion 18 of article 3 of the Constitution.

42 Public Papers of Goviebnob Sulzee

2. It violates section 7 of article 7 of the State Con- stitution, -which provides that the lands of the State now owned or hereafter acquired, constituting the For- est Preserve as now fixed by law shall be forever kept as wild forest lands, and shall not be leased, sold or exchanged or taken by any corporation, public or private.

The bed of the St. Lawrence river which, by the act in question, . is directed to be conveyed to the Long Sault Development Company, is owned by the State and was so owned at the time the provision of the Con- stitution was adopted, and was included within the Forest Preserve, as defined by section 100 of chap- ter 332 of the Laws of 1893, describing the lands in- cluded within the State Forest Preserve.

3. The act in question is a private bill and embraces more than one subject, and is, therefore, in violation of article 3, section 16 of the State Constitution which provides that no private or local bill which may be passfed by the Legislature shall embrace more than one subject, and that shall be expressed in its title.

4. The act is invalid as being in excess of the powers of the Legislature, in that it provides for the aliena- tion by the State to the Long Sault Development Com- pany of title to the land in the bed of the St. Lawrence river. The title of the State in those lands is a sov- ereign right, rather than a proprietary title. It. is inconsistent with that. right, which must be exercised for the benefit of the whole people, that the title to the bed of a navigable stream should be granted in fee to a private corporation.

The Attorney-General, the State Conservation Com- mission and myself are convinced that this act is void and unconstitutional, and that the appropriate action

Messages to the Lbgislatubb 43

to be taken by the Legislature at this time is to repeal the said act.

Let me say further that I am advised by the Comp- troller that certain sums of money have been paid into the State treasury by the. Long Sault Development Company, as required by certain terms of the said act. I respectfully suggest to your honorable bodies that such sums should be repaid to the Long Sault Develop- ment Company, together with interest.

In regard to any valid and legal claims which the Long Sault Development Company may have against the State of New York, by reason of the repeal by the Legislature of the said act,. I suggest that the same be referred to the Board of Claims for its determination.

Not only is said act violative of the provisions of our State Constitution, but its provisions are in other respects improvident, unwise .and indefensible, both from an industrial and an economical point of view.

The State Conservation Commission reports :

' ' The vast power available at this place constitutes one of the State's greatest natural resources.^ The advances in the art of electrical transmission makes it economically feasible to use the same throughout the State. At present it is going to waste. It is for the interest of all that this power should be developed and utilized by the people and for the people. Cheap power will enlarge the use of electricity for domestic and .commercial purposes ; stimulate industry ; increase our wealth and add to our population. Private interests should not be allowed to exploit and monopolize the same. The State should develop this power for the benefit of the ultimate consumer."

Investigations made by the engineers of the State Conservation Commission demonstrate, among other

44 Public Papers of Govebnoe Sulzer

things, that a full economic development at the Long Sanlt rapids will produce one million (1,000,000) horse- power, of which, by treaty arrangement with Canada, it is to be expected that New York will receive no less than one-half. It is hard to conceive of the vastness of five hundred thousand (500,000) horsepower, trans- muted into electrical energy. It is nearly three-quar- ters of the sum total of all the water powers now devel- oped in New York State, including that at Niagara. It is estimated to be more than sufficient to run one- third of all the industries of our State, which are now operated by steam power, exclusive of steam railways, but inclusive of electric railways. These two facts may help to show the importance of this vast power to the industrial welfare of our State.

This immense power, so valuable to our peoplie, is at a transmission distance of 340 miles from New York city, or about 40 miles nearer than Niagara' Falls. It is only 180 miles from Syracuse and about the same distance from Albany. Great strides are being made in improving mechanical contrivances for transmitting hydro-electric power under high tension, and recent inventions and improvements make it probable that in the near future such power can be carried and trans- mitted with industrial and economical efficiency over vast distances.

At present it is reported as practicable to transmit power from the Long Sault Rapids to New York city for steady, continuous loads much cheaper than such loads can now be carried with steam power. This will inevitably result in a great saving to the consumer, and be of inestimable value to the State.

In order that we secure for all our citizens the many and the lasting beneficial results of the proper develop-

Messages to the IjBoistiATUBE 45

ment of our natural resources, particularly of our now unused water powers, in accordance with our construc- tive policy in these matters, to which our State now stands committed, I respectfully recommend that chap- ter 355 of the Laws of 1907 — the Long Sault Develop- ment Company's charter — be immediately repealed.

(Signed) WM. SULZEE

Transmitting Report of Board of Statutory Consolidation, Recommending a Pian for the Simplification of Legal Procedure in the Courts of the State

State of New York — Executive Chamber

Albany, January 15, 1913 To the Legislature :

I have the honor to transmit herewith the report of Adolph J. Rodenbeck, William B. Hornblower, John G. Milburn, Adelbert Moot and Charles A. Collin, con- stituting the Board of Statutory Consolidation, recom- mending a plan for the simplification of legal pro- cedure in the courts of the State, prepared and sub- mitted in pursuance of chapter 393 of the Laws of 1912.

Over fifty years ago the State of New York revolu- tionized its system of practice and procedure in the courts by eliminating complex technicalities and simplifying the procedure so as to secure the prompt termination of legal controversies, in accordance with justice and the substantive law applicable to the facts, without delay, diminution or obstruction of justice by reason of mere technicalities of practice or procedure.

The example thus set by the State of New York was

46 Public Papers of Governor Sulzer

soon followed by other States and most English speak- ing countries, with the result of establishing, through- out the English speaking world, what has come to be known as the Reformed Procedure.

My experience as a lawyer, and my observation of the conduct of litigation in our courts, have compelled me to the conviction that, during the last thirty years, a new set of complex technicalities has grown uncon- sciously into our system of legal procedure, adding to the uncertainty, delays and expense of litigation, ob- structing the administration of justice, and causing evil results which fall most heavily upon those least able to bear them, sometimes amounting, in practical effect, to denial of justice and closing the doors of the courts against the very people whose sole reliance must be on the courts for protection against the op- pression and injustice of the wealthy and powerful. I have often, of late, had reason to believe that the State of New York has lost its leadership in the re- form of judicial procedure, and fallen behind other States in this country and even, in some respects, be- hind conservative England.

In my first message to this Legislature, I therefore recommended " the enactment of such legislation as will relieve the present legal system of the delays, the unnecessary expense, and the uncertainties incident to the present procedure. ' '

My own convictions of the necessity of a drastic re- form of our civil procedure, are confirmed and justified by this report of the Board of Statutory Consolida- tion, with its careful and thorough analysis and com- parison of the systems of procedure, now in force in this and other States and England.

As ,the result of such analysis and comparison, the Board unanimously recommends abandonment, rather

Messages to the LegiptjAtuee 47

than revision and amendment, of our present cumber- some Code of : Civil Procedure, wliieli is now over- loaded witli innumerable, and incongruous amend- ments, and from the time of itg enactment, in 1876, has never been as satisfactory as the original /Field Code of 1848.

The Board unanimously recommends, as a sub- stitute for the present I Code of Civil Procedure:

I. A Short Practice Act which would preserve in statutory form the fundamental and jurisdictional matters of procedure in the present Code, with such changes as may be necessary to adopt such provisions to present conditions.

II. Rules of Court (subject to adoption, ajjiendment and repeal by the judges), redrafted so as to preserve and regulate such minor details of practice in the present Code and Court Rules, as should be preserved in the written law, but omitting entirely minute details of practice which can be regulated much more satis- factorily, by each judge before whom such matters come up for determination, and without any danger that the judges will abuse the discretion thus reposed in them.

III. Such changes as will simplify and modernize the practice so as to secure a prompt and final deter- mination of legal controversies according to the sub- stantive rights of the parties; and to that end the fol- lowing among other changes are recommended:

(a) The court should have full power to disregard, in: the interest of justice, at any stage of the case, any mistake, irregularity or defect which does not affect the substantial rights of a party.

(b) Provision should be made, so far as practicable and constitutional, for obviating more than one trial of an issue of fact, by authorizing the court, on appeal.

48 Public Papers of Goveenoe Sulzer

to disregard errors of the court below, not affecting substantial rights, to take further proofs when deemed necessary for bringing out all the facts material to the controversy, and to render final judgment in accord- ance with the law applicable to all the facts of the case thus brought before the Appellate Court, without granting a new trial.

(c) There should be but one form of action and there should be a complete disposition of the entire controversy, by the joinder of all parties, whether jointly, severally or in the alternative, and a simple statement of all differences between them, subject to a separate trial of any issue upon order of the court.

(d) The demurrer should be abolished and all re- lief for defective pleading should be by motion.

This brief outline of the general plan and partial enumeration of its details, sufficiently demonstrate the vital importance of the questions presented by this report.

A lack of confidence in the courts is one of the greatest evils that can befall the State. No more dangerous wound can be inflicted upon the State than unjustly, and without cause, to destroy confidence in its courts of justice. By the same token, no, greater service can be rendered the State than to, remedv audi remove any just cause for distrust or lack, of" con- fidence in the equality, efficiency and righteousness of the system of administering justice in the courts.

I regret exceedingly that it will be impossible for the Board to submit to this Legislature the draft of a bill embodying its recommendations. The act of 1912 only authorizes the Board to prepare, and submit to this Legislature, a plan for the simplification of the practice in the courts, and only became a law on April fifteenth last. It is evident from the drastic character

Messages to the LEGisiiATUKB 49

of the conclusions reached by the Board, as well as from the contents of the report, that the investigations of the Board have covered a wide field of inquiry, and that its report is the result of thorough study and care- ful deliberation. The personnel of the Board is«suffi- cient guaranty that the drastic plan recommended has not been adopted hastily or unadvisedly, but repre- sents the mature judgment of conservative, experi- enced and practical lawyers, awake to the evil, and not likely to suggest ineffectual or unnecessarily drastic remedies.

Under the law, as it now stands, the work of the Board is finished. It is for this Legislature to de- termine whether the plan recommended by the Board shallbe worked out in detail, and whether the draft of a bill embodying the plan shall be submitted to the next Legislature. The work of the Board under the act of 1912 has been performed as a patriotic service, without pecuniary reward. If the plan is to be car- ried out, most of the immense mass of detail work must necessarily be done by one man, and it is understood that the chairman of the Board will devote his time largely to that portion of the work, for which he should be allowed reasonable compensation. It is understood that the other members of the Board will act chiefly in consultation in an advisory capacity, and if the Legislature charges them wi1;lj, thg responsibility, that they are willing and prefer, ijo continue the service without pecuniary compensation.

If the Legislature approves the report, it is manifest that its approval, should be expressed as promptly, as practicable, in order that the work of the Board, may be resumed, without unnecessary intermission, and completed, with the necessary care and deliberation, in time for submission to the next Legislature.

50 Public Papebs op Govbbkoe Sulzek

I recommend that the Legislature express its ap- proval of the report of the Board, by passing a bill for carrying the report into eff&ct, substantially along the lines of the draft of proposed bill annexed to the report.

(Signed) WM. SULZER

Transmitting Report of William B. Ellison, Commis° sioner Appointed by the Governor on Revision of the Standard Fire Insurance Policy of the State

State op New York — Executive Chambbk

Albany, January 20, 1913 To the Legislatueb :

I respectfully transmit herewith for the careful con- sideration of your honorable bodies, the report made to me by the Honorable William B. Ellison, as a Com- missioner, on the advisability of a complete and thorough revision of the Standard Fire Insurance Policy of this State.

Recently I wrote Mr. Ellison the following letter :

' ' State op New. Yobk ^ — Executive Chambee

Albany, January 4, 1913

Hon. William B. Ellison, 165 Broadway, Neiv Yorh City:

Dear Sib. — I have received many communications, both written and oral, which have officially directed my attention among other matters relating to fire in- surance, to the form of the Standard. Fire Insurance Policy provided by statute and now used iii this State.

It has been stated that our standard form requires

Messages to the Legislatuee 51

radical revision and improvement in order to do jus- tice between botli the insurer and the insured.

In addition, the many decisions of the courts, some conflicting with others, have produced a condition of much confusion in regard to the exact scope, meaning and effect of our Standard Fire Insurance Policy.

The State of New York and its citizens should enjoy the use of the very best form of fire policy it is possible to devise. It is apparent that legislation is necessary to make clear and definite the provisions of an ade- quate and proper form of standard policy and bring about the desired beneficial results in the interest of all the citizens of the State.

To the end that I may properly recommend appro- priate legislation in this respect, at my personal re- quest, you have, with generous action and fine public spirit, offered your services, entirely without com- pensation or other expense to the State, in collating necessary facts, receiving suggestions and making recommendations as to what changes, if any, are ex;- pedient and advisable in the laws of our State relating to this particular subject.

With your long and varied experience as a lawyer, particularly m insurance matters, I am confident that your carefully formed opinions Avill be of the greatest value and assistance to me in suggesting the necessary legislation.

I take pleasure in transmitting to you herewith your designation as my Special Commissioner for such pur- pose, and wish you to understand that it is not my intention to limit you merely to the consideration of the form of standard fire policy, but your inquiry should properly include every phase of the subject of fire insurance.

52 Public Papers of G-ovebnoh Sulzeb

I desire to commend your action in thus serving the

community as a most welcome illustration of the public

spirit of our citizens. I shall be glad to receive your

report at as early a date as you may find practicable.

I have the honor to remain,

Respectfully yours

WM. SULZER"

Accompanying said letter was the following ap- pointment :

' ' State op New Yoek — Executive Chambeb

It having been called to my official attention that changes are desirable, expedient and advisable in the laws of this State relating to fire insurance, to the end that there may be an effective and comprehensive plan adequate to the needs of those interested, I, William Sulzer, Governor, hereby designate

William B. Ellison of New York City, as a Special Commissioner, to serve without compensation or other expense to the State, for the purpose of collating facts, receiving sugges- tions and making such recommendations as may seem fitting, with regard to what changes, if any are at this time advisable in the laws of this State relating to and affecting fire insurance.

GrivEN under my hand and the Privy Seal of the

State at the Capitol in the city of Albany,

[l. s.J this fourth day of January in the year of

our Lord one thousand nine hundred and

*^^^*^^"- WM. SULZER

By the Grovernor:

Chesteb C. Platt

Secretary to the Governor "

Messages to the Legislature 53

In submitting his report Mr. Ellison writes me as follows :

"Albany, N. Y., January 16th, 1913

My Deae GrovERNOB. — I beg leave to accompany J;his with my report on the proposed revision of the stand- ard policy of fire insurance in this state.

I have confined my report to the body of the policy as originally adopted and I have not taken under con- sideration any of the ' Riders ' now in use, for the reason that several of them were adopted by agree- ment between the New York Board of Fire Under- writers and the State Department of Insurance. Under such circumstances I have not felt free, or felt that it was desirable, to interfere with matters that have had the approval of the Superintendent of In- surance. I have been impressed with the idea that such matters might be well taken up between the Su- perintendent and yourself.

I feeljjhawever, that I should say to you that many of 'the ' ripers ' now in use have been made the sub- ject .bf. very vigorous criticisms in numberless com- mumoations, oral a«d written, made to me while I had the'maiin question under consideration. ■^ JSiJee^lfthe complaints against these riders, and the way they are attached, have been productive of a great deal of discontent.

Should you later desire me to take up for further consideration questions arising under the ' riders ' to which reference has been made, I will, of course, be glad to do so.

So far, also as are concerned the many other mat- ters involved in the business of fire insurance in this

54 Public Papers of Goveenob Sulzeb

•State, to wMch reference was made on my appointment as Commissioner, I beg leave to say that I rest subject to your further directions. I remain,

Faithfully yours

WILLIAM B. ELLISON

Commissioner To Hon. William Stjlzeb

Governor of Neip. York State "

After cari^ully reading this impartial report, I be- lieve it to be my. duty, in the interest of all the people, to reconimend a revision of the present Standard Policy of Fire Insurance for the following reasons :

The present Standard F'ire Insurance 'Policy is filled with perils to the innocent insuring public, and it is now, in my opinion, beyond dispute that there should be a simplification, at least of the conditions upon which protection against fire in the way of insurance is obtainable.

The Standard Fire Insurance Policy of this State contains a mass of technical conditions and provisions that the people find most difficult to understand. In- deed, they are so fraught with technicality and am- biguity that the courts themselves, the highest courts of record in the country, constantly differ in matters of construction. This should not be difficult of remedy and the public welfare it seems to me demands that it be, remedied at once.

Of course we should not attempt to destroy any reasonable protection tha,t may be claimed for the Fire Insurance Companies, but at the same time, I contend that the rights of the insured should not be left, as is frequently the case under the present fotm of policy, to the charity of the compahy.' The provisions of the

: JIJBSSAGES TO THE LEGISLATURE 55

policy should be made so simple, so short, and so clear that the rights of both are apparent, and the interests of both are safeguarded.

The State of New York should have the best Stand- ard Fire Insurance Policy in the country. «

(Signed) WM. SULZER

Calling Attention to the Necessity of Remedial Legis- lation Regarding Stock Exchanges

State of New Y.oek — t E^xj^QWive Chambee

Albany, January 27, '1913 To the Legislature:

A matter cohcernirig the gfeiieral welfare of our State, to which I desire to call the attention of your honorable body, is the subject of remedial legislation regarding stock exchanges.

These stock exchanges, as is well known, are places where the purchase and sale of stocks, bonds and other seciirities, as distinguished from commodities, are car- ried on and transacted.

Illegitimate stock speculations result from improper, unnecessary, and fraudulent manipulations through matched orders, wash sales, pooling agreements, etc., which are no more' nor less than fictitious transactions, and affect the ptiblic by assiimiiig to Create values where none exist, or values not according to the in- trinsic worth of the securities.

The people have a vital interest in seeing to it that transactions upon, stock exchanges are conducted honestly, and with due regard to the protection of the investing public. These transactions involve such

56 . Public Papers of Govebnob Sttlzeb

great amounts, affect sucli a large number of the in- vesting public, and are so bound up witb the success of our business enterprises, that the subject is one re- quiring careful consideration by the members of the Legislature of the greatest commercial State in the Union.

Complaints of flagrant abuses led Governor Hughes, in December, 1908, to refer the subject for investiga- tion to an unofficial committee of eminent citizens of conspicuous ability, who submitted a comprehensive report thereon the following June.

In dealing with the subject this committee recognized the fact that these stock exchanges are the most im- portant markets in the world ; that their influence upon the welfare of the people of the United States cannot be overestimated; because they are the places where prices are made, and a ready market provided, for the billions of dollars of corporate securities, constituting the investments of perhaps a million individuals, and thousands of banks, savings institutions, and insur- ance companies.

The report shows that the committee was convinced that serious abuses existed. It declared that a sub- stantial part of the transactions in these stock ex- changes were virtually gambling operations; and the statements were conclusive that often prices of se- curities were grossly manipulated by speculators, causing material losses to the public and moral detri- ment to the people.

While most conservative in its recommendations, this committee, of distinguished citizens, did not hesi- tate to condemn these evils specifically, and to ad- monish the governors of the exchanges to take the necessary corrective measures, which with their ex- perience and the plenary powers conferred upon them

Messages to the Legislature 57

by their rules and constitution, they could devise more effectively, without injury to legitimate business, than any other body of men; pointing out that unless they did so the State would be compelled to intervene.

These stock exchanges are an inevitable necessity. They cannot be destroyed without doing irreparable injury to business. When properly conducted they constitute an efficient agency for promoting industrial and commercial prosperity. As at present constituted, however, they are beyond the regulative powers of any administrative department of the State.

That evils requiring immediate remedy exist is be- yond dispute. These evils are easily discovered and readily stated, but the remedies to be applied require deliberate consideration and the most delicate adjust- ment to meet the situation, so as to benefit the public at large, and at the same time not disturb economic and industrial conditions.

Recently a committee of the House of Representa- tives has taken cognizance of the conditions, as matters which concerned the whole country, and has placed on record the testimony of soine of the governors of the exchanges, and of other persons, which leaves no doubt in the minds of men of judgment that the exchanges have been either incapable, or unwilling, to devise measures that will effectively eradicate the evils.

In view of these circumstances it is now the obvious duty of the State, it seems to me, to devise the reme- dies. If the State neglects to do its plain duty, the State should find no fault if the Federal government acts in the premises.

A critical examination of the testimony adduced in the congressional investigation shows that the grossest of the evils — manipulations of prices of securities, by means of which the public is deceived and mulcted —

58 Public Papers of Govebnob Sulzeb

are not only possible under the present regulations of these excha:nges, but that they actually occur.

It is demonstrated that the members of the ex- changes are aware of these occurrences, but ignore them; manifesting a surprising indifference to the public interest; and to the reputation of the exchanges which is often besmirched by these vicious operations.

It is now conceded by some of the officials that a gambling taint is present in some of the transactions — a concession that confirms the general opinion.

It has been established as a fact by the testimony, that transactions in their nature essentially fictitious, which make manipulations possible, are carried on without serious attempts at restraint, on the pretense that they are in form in compliance with the regula- tions.

Abuses of the mechanisms, and violations of just and equitable principles of trading, are treated leniently instead of being vigorously condemned and followed by condign punishment.

The testimony further shows that in cases where members have been punished for extreme violations of the rules, it also indicates quite clearly that there are habitual evasions, undisclosed because not investi- gat-ed.

Many of the evil practices are not disclosed until the books of members who fail are examined ; but this has not led the governors to exercise their power of ex- amination prior to failures.

The men who have been entrusted with the power to regulate the operations of these exchanges have some- times displayed inexcusable laxity in their duties to the public, frequently surprising incapacity to conduct the institutions properly, and again an unwillingness to enforce the just and equitable principles of trade

Messages to the LBGisLAiruRE 59

which they profess. Since they have failed or refused to exercise the power to prevent such clearly vicious abuses, the authority of the State must be invoked to exercise that power.

Certain of the methods of business and of the opera- tions conducted upon these exchanges have been the subject of many complaints and grave criticisms. Some of those methods and practices merit' the severest con- demnation and others do not appear, upon careful ex- amination of: the facts, to be well founded.

As a matter of fact it seems to nae the necessary ma- chinery of these exchanges is often employed with im- punity by or through members to commit depredations upon the public.

These things must be stopped. An enlightened public opinion demands it. An exchange in which they occur ceases to be a legitimate market, and becomes a powerful mulcting instrument.

Suffice it for me now to call to your attention certain suggestions that have been made looking toward: inJr' mediate remedial legislation, and tP submit for your consideration other subjects with a view to essential, legislg.tive acts. i;,

Manipulation

Of the many subjects of complaint none exceeds in importance the grievances that arise from the subject of so-called stock manipulation. This manipulation is one of the matters about which there has been much public discussion. It may not be easy to define manipu- lation or to lay down pilps that will clearly distinguish between justifiable and unjustifiable transactions in securities. The bringing of a stock intp notice so that it may be a marketable security at its real value re- sulting from sales and purchases is not open to valid criticism.

60 Public Papers of Govebnor Sxjlzee

What is a subject of just criticism, however, is a con- certed movement artificially to raise, or depress, the price of a stock in order to enable those participating in the movement to realize a resulting speculative profit. Such movements in the main seem to be pro- duced by a combination of men uniting together for the purpose of raising, or depressing, the price of a security in which they have decided to institute a movement.

A law should be promptly enacted that will clearly distinguish proper transactions of purchase and sale, on the one hand, from those on the other hand that are the result of combinations designed to raise artificially, or to depress, the price of securities without regard to their true value, or to the real state of legitimate de- mand and supply.

The Power op the State

The power of the State to enact remedial legislation to cure existing evils in such business, and place it under the regulative administration of one or more of its departments is undoubted. This authority of the State is embraced within the State's sovereign power, called the ' * police power. ' '

An able characterization of the police power of a State was made by Mr. Justice Harlan in the well- known case of House v. Mayes, 219 U. S. 270, at 282, where he states :

" That the government created by the Federal Constitution is one of enumerated powers, and cannot, by any of its agencies, exercise an author- ity not granted by that instrument, either in ex- press words or by necessary implication; that a power may be implied when necessary to give

Messages to the Lbgislatube 61

effect to a power expressly granted; that while the Constitution of the United States and the laws enacted in pursuance thereof, together with any treaties made under the authority of the United States, constitutes the Supreme Law of the land, a State of the Union may exercise all such govern- mental authority as is consistent with its own con- stitution, and not in conflict with the Federal Con- stitution ; that such a power in the State, generally referred to as its police power, is not granted by or derived from the Federal Constitution but ex- ists independent of it, by reason of its never hav- ing been surrendered by the State to the General Government; that among the powers of the State, not surrendered — which power therefore remains with the State — is the power to so regulate the relative rights and duties of all vithin its juris- diction so as to guard the public morals, the public safety and the public health, as well as to promote the public convenience and the common good; and that it is with the State to devise the means to be employed to such ends, taking care always that the means devised do not go beyond the neces- sities of the case, have some real or substantial relation to the objects to be accomplished, and are not inconsistent with its own constitution or the Constitution of the United States."

In speaking of the police power, Mr. Justice Holmes, in the case of Noble State Bank v. Haskell, 219 U. S. 104, at 111, used the following language :

" It may be said in a general way that the police power extends to all the great public needs. {Can- field V. United States, 167 U. S. 518.) It may be put forth in aid of what is sanctioned by usage, or

62 Public Papees op Govbbnoe Sulzbb

held by the prevailing morality or strong and pre- ponderant opinion to be greatly and immediately necessary to the public welfare. ' '

CoNCEBTEB Movements to Deceive

It is my judgment also that where, by a combination or concerted movement, a body of men seek to give to a stock an appearance of activity that does not in fact belong to it, for example, by selling backward and for- ward among themselves blocks of a particular stock, or by selling it out through one broker and at the same time buying it back through another, there is danger that this operation may mislead or deceive outside investors, the practice should be prohibited.

If operations of this character do mislead or deceive, and do induce outside investors to purchase stock under a false impression as to the extent of the demand for it and the nature of the market for it, a statute should be placed on the books forbidding such oper- ations.

So long as transactions are not calculated or intended to mislead or deceive, and do not infringe upon the rights of others, they should not be interfered with ; but transactions that are fraudulent in their nature and amount to fraudulent schemes or devices, should be rigorously prohibited.

I urge upon you the prompt enactment of laws to end these shifty schemes, and to forbid these clever com- binations .to catch the unwary and to mislead the public.

Short Sai.es The subject of so-called " short sales " is one requir- ing your serious consideration. A contract to sell property which a man does not own at thei time, but

Messages to the Legislatuee 63

with which he can provide himself in time for the per- formance of his contract, is a general transaction throughout the various branches of business, and is not limited or peculiar to stocks or securities sold on ex- changes. It is a subject which has been very much dis- cussed by writers on financial topics, and one that has also been the subject-matter of legislation in this and other countries. As with other business transactions, it may be perverted so as to work an injury to the public. The best views seem to be that short-selling in and of itself is not a wrongful or reprehensible thing, but it is the abuse of this practice that works injury to the public.

Your efforts in the enactment of legislation should, therefore, be to draw that distinction so that what will be condemned is the perversion of a legitimate form of business to improper ends. Combinations of men through short-selling to depress a stock artificially for the purpose of buying it in to complete their short sales at an unwarrantedly low price, and thereby realize a profit which is not the result of natural prices, but of a condition fictitiously created by themselves, is the feature of the matter which is to be condemned.

Hypothecation of Secukitibs

The relation of a broker to his customer is one that is governed by the general law of the land, and is the same whether transactions on stock exchanges are involved or not. Their respective rights in securities which are bought or sold for the customer, the extent to which securities that have been bought for the cus- tomer partly on credit may be pledged by the broker for the security of the amount owing on them, and, generally, the reciprocal rights and obligations of the

64 Public Papers of Govebnob Sulzeb

broker and his principal, are matters which have been mtich considered by the courts and respecting which rules of law have been and are constantly being formu- lated.

But it has been the subject of just complaint that in the case of failures customers of the failing brokers have lost in whole or in part securities which had been purchased for theni. Such losses result from a viola- tion of the law governing the relations of broker and principal. This entire subject should receive imme- diate consideration at your hands, and all necessary modification of existing law for the protection of the investing public should be promptly made and all acts productive of such losses which are now merely a mat- ter of civil liability, should be brought under the con- demnation of the penal law.

Teading Against Customers ' Orders Legislation should be devised which will require of brokers the execution of orders given them so that, whether purchases or sales, they shall be purchases from or sales to independent persons, and so that in no case shall a broker employed to buy for his cus- tomer be the seller on his own account, or as broker of some other principal of his own without disclosure of the fact. If there are cases in which, because of the peculiarity of the stock and the dealings in it, a pur- chase cannot be made excepting through acquiring the stock of another principal of the broker, those excep- tional cases should be defined with precision.

It has been charged that there has been a practice on the part of some brokers of selling for their ovm account the same stocks that they have been ordered to buy for their customers contemporaneously with the execution of the orders on behalf of theit customers.

Messages to the Legislatuee 65

Suoli transactionsj of course, amount to a virtual buck- eting by brokers of the orders of their customers. They come within the same principles that led to the condemnation of bucket shops. They are obviously unjustifiable, and should be stringently forbidden by a clear and explicit statute on the subject.

Pkohibiting Brokers prom DpisTG Business After Their Known Insolvency

One of the most widespread causes of complaint, and one of the most morally reprehensible practices, con- sists in a broker doing business after he has become actually insolvent, or knows or has reason to believe himself to be insolvent. Cases of great hardship upon the innocent investing public are due chiefly to the fact that the broker, has received his customer's money when he knew he was insolvent. Banks are forbidden by law to receive deposits after their known insolvency. Brokers should be subjected tp a like restriction.

I, therefore, recommend an amendment to the law, with appropriate penalties for its violation, forbidding a broker to receive securities, or cash, from his cus- tomers, excepting in liquidation of, or as security for, an existing account; or to make fresh purchases or sales for his own account, after he has become insql- vent. The law should also contain a clear definition of insolvency within the ^ meaning of the act, either analogous to the insolvency provisions of the National Bankruptcy Act, or othe,rwise clearly defining such insolvency.

More Stringent Penal Provisions Affecting Bucket

Shops Under the law of New York as it is at present it is necessary to establish that both parties to an ostensible Vol. 1—3

66 Public Papbbs of Gtoveenok Sulzek

trade in securities intended that it should be settled by the mere payment of differences and not by the actual delivery of property. It follows from this state of the law that the keeper of a bucket shop may escape the penalties now imposed by the law merely by prov- ing that his customer was an innocent victim and not a consenting party to the illegal transaction. I believe the Penal Code should be amended so that it shall be necessary only to show that the bucket shop keeper intended that there should be no actual delivery of property.

False Statements

One of the most widespread of public grievances in connection with the purchase of stocks arises from false or fraudulent prospectuses, statements, or adver- tisements regarding corporate securities. tJnder our law as it now exists it is difficult to bring to justice per- sons Who, by means of false and fraudulent statements, advertisements and promises, deceive and wrong the investing public. These deceiving practices have been attacked under the Federal laws forbidding the use of the mails for fraudulent purposes.

I recommend amending the law of this State so as to make it a criminal offense to issue any statement, or publish any advertisement, as to the value of any stock, or other security, or as to the financial condition of any corporation, or company, issuing or about to issue stock or securities, where any promise or predic- tion contained in such statement, or advertisement, is known to be false or to be not fairly justified by exist- ing conditions.

USUEY

The repealing of the exemption contained in the law of New York regarding interest upon call loans of

Messages to the Legisi-ature 67

$5,000 or over, secured by collateral, has been the sub- ject of much discussion. It has been charged that this exemption in the law regarding the rate of interest had facilitated over-speculation and stock gambling operations.

But whether persons who borrow, or need to borrow, sums of money in amounts over $5,000, secured by col- lateral, for the purpose of speculation or otherwise, should be forbidden to pay more than 6 per cent, interest on their call loans, thus secured, is a serious question which! commend to your- careful considera- tion, and, after all the facts have been presented to you and the subject fully considered, should be dealt with by such remedial legislation as shall be deemed wise and in the best interests of the public welfare.

Relations Between Exchanges

Complaint has been made that the restrictions placed by certain exchanges on the right of. their members to act for the members of other exchanges, or to belong to such exchanges, result in unfair discrimination and injustice.

The existing rules and practices in this regard should be carefully considered, and if these rules, in fact, or in their actual operation, result in injustice, or in the curtailment of honest business, or in harm to the general investing public, then I recommend such remedial legislation as the facts require.

Incoepoeation of Exchanges It has been urged that the law be amended so as to require the incorporation of these stock exchanges, to the end that the authority of the State over the trans- actions upon these exchanges and the acts of their gov-

68 Public Papees of G-overnok Sulzeb

erning bodies may be directly invoked. On the other hand, it has been argued with great cogency that the power of discipline possessed by the governing bodies of these exchanges over the conduct of their members, which can now be exercised in a summary manner, would be curtailed and frustrated by delays and tech- nical obstacles which would greatly impair their just disciplinary powers, and lead to a lowering of their standards of business morality, to the ultimate detri- ment of the investing public. Whether, if appropriate legislation shall be framed and enacted into law deal- ing with the specific subjects above enumerated, the public will be adequately protected without the incor- poration of these exchanges, is a question which I sub- mit for your serious consideration.

Some of these reasons were clearly stated in the report of the Hughes ' Committee, but no definite action was taken, and no effective legislation was suggested, the committee stating substantially:

" This Committee in refraining from advising the incorporation of exchanges does so in the ex- pectation that they will in the future take full advantage of the powers conferred by voluntary organization, and will be active in preventing wrongdoing, such as has occurred in the past. Then we believe there will be no serious criticism of the fact that they are not incorporated. ' '

The members of these exchanges must realize that many of the customs and rules now controlling them are antiquated and unfitted for present-day purposes, and they should be desirous, in their own interest, of expeditiously adopting corrective measures that, when put into operation, will place the exchanges in harmony with the progressive spirit of the times. Every stock

Messages to the Legislature 69

transaction should be above board. Corporations wbose securities are bought and sold on these ex- changes should be compelled to make regular audited reports. Publicity should be the watchword. The trouble with the exchanges so far as the investing pub- lic is concerned, is lack of confidence. It can only be restored by doing business straight and on the square and in the open.

Let us go slow and not act hastily. Ill-considered legislation in regard to the purchase and sale of stocks and bonds might result in serious harm to the financial supremacy of the State, have a tendency to drive cap- ital away from New York, and might disorganize the large operations of legitimate business now centered in this State, to the detriment of its citizens and the commonwealth generally.

Great care should be taken, therefore, in the con- sideration and enactment of just laws which, if wisely drawn, will protect the investing public, promote pub- licity, safeguard the rights of the people, restore con- fidence, and facilitate our business prosperity, but which, if inconsiderately enacted, may result in a seri- ous disorganization of general business.

(Signed) WM. SULZER

On Revision of the Standard Fire Insurance Policy of the State and Urging Careful Consideration

State op New Yoek — Executive Chambeb

Albany, February 10, 1913 To THE Legislature:

On the 20th day of last month I transmitted to your honorable body the report made to me by the Hon-

70 Public Papers of Gtovebnoe Sulzeb

orable William B. Ellison, as a commissioner, on the advisability of a complete and thorough revision of the Standard Fire Insurance Policy of this State, and urged that the subject be given careful consideration. In connection with this matter I have received a com- munication from the Honorable Joseph Johnson, Fire Commissioner of the city of New York, of which the following is a copy :

' ' FiKE Depabtmbnt of the City of New Yobk

" February 5, 1913

" Hon. William Sulzer, Governor, New York State, Albany, N. T.:

' ' Your Excellency. — ^While appreciating highly the work done by your Special Commissioner, Hon. Wil- liam B. Ellison, in drafting changes in the Standard Fire Insurance Policy, I desire to call your special attention to the fact that any improvement made in the fire insurance contract under existing conditions is. only placing another weapon in the hands of dishonest persons who now resort to incendiarism.

"As I have recently compiled an elaborate report covering this subject, a copy of which I have already placed in the hands of Your Excellency, I am not mak- ing a rash statement in asserting that to compel fire insurance companies to revise their policies without, at the same time, forcing them to change their methods of supplying these policies to the public, would be liter- ally adding fuel to the flames.

" While reiterating my appreciation of Mr. Ellison's efforts, I maintain that it would be highly illogical, not to say disastrous, to place a better form of fire insur- ance policy in the hands of certain members of the pub- lic until legislation has been first enacted which will

Messages to the Legislatueb 71

change the present methods of business as conducted by the fire insurance companies in this State.

"The revision and improvement of the" Standard Policy should be subsequent to, or at least concurrent with, the alteration of the methods of fire insurance companies. These changes should compel fire insur- ance companies in this country to conform to the best precedents followed in foreign countries, where arson for insurance has been practically eliminated.

' ' I am appealing to Your Excellency, as one who has always had the interests of the great majority of the people at heart, to give your serious attention to the dangers which threaten the public from the present fire insurance situation.

' ' I am able to substantiate my estimate that 25 per cent, of our fire losses are due to incendiarism.

' ' I am able to prove by overwhelming testimony that fire insurance companies issue policies indiscrimi- nately, recklessly and wantonly.

' ' In the course of my recent investigation into incen- diarism, the Fire Department was able to obtain with- out previous inspection or even inquiry on the part of the fire insurance companies, fire insurance policies to the number of 135, covering $127,500 on household effects worth only $3.96.

' ' I am able to prove that the very companies who do this business in this city conduct their affairs abroad in a wholly different manner. None of these foreign com- panies, who do business in their own country, would have the temerity to issue policies in the indiscriminate manner in which they are scattering them broadcast throughout this city and country.

' ' In this connection, I might mention that the United States and Canada are the only two countries in the

72 Public Papers of Gtoveknok Sulzeb

world in which fire insurance companies are allowed to do business in the present loose and culpable manner.

' ' This is not a local question here in New York city, but it is widespread throughout the country, and if Your Excellency wiU give the matter your careful attention, you will find that you are dealing with a national issue. It is on these broad grounds that I am writing to you and submitting a brief summary of my conclusions in reference to this vital subject of incen- diarism, which is responsible for a large proportion of our $250,000,000 national annual fire loss.

' ' Not only is incendiarism the cause of an enormous and irretrievable loss to this city each year, but human life is involved, owing to the fact that many of the fires started by incendiaries result in deaths to citizens as well as to firemen who fall in the pursuit of their duties.

' ' Since the publication of my report on incendiarism, fires in New York city have shown a remarkable falling off, which I can only attribute to the inauguration of this crusade against arson. For instance, in January, 1912, the number of fires in Greater New York was 1,780, whereas "the fires in January, 1913, for the same district have been 1,168. Therefore there were 612 less fires in January this year than there were in January, 1912.

" Furthermore, fires in what we call ' The Fire Zone ' of New York city — the area bounded by East Ninety-sixth street. East One Hundred and Sixth street, Madison avenue and the East river — have fallen off to a remarkable extent; that is, from 42 fires in Janu- ary, 1912, to 14 fires in January, 1913, a reduction of more than 60 per cent. This is directly and solely due to the fact of the agitation against incendiarism con- ducted by the Fire Department, and ably seconded by the District Attorney's office.

Messages to, the Legislatukb • 73

" It is claimed by some of our critics that the falling off in fires is attributable to our mild weather ; as there are naturally more fires in winter than in summer. I call your attention to the fact, however, that in July last year, including the usually heavy fires of July 4, there were 1,341 fires; in June, 1,339 fires, as against 1,168 fires in January this year.

' ' In the course of preparing the report on incendia- rism, not only was it dem.onstrated that fire insurance companies grant policies without the least regard to character of assured, or inspection of risks, but it has been amply proved that these companies recklessly grant insurance policies to business firms who have had many previous fires.

' ' In this matter of business fire insurance, an analy- sis was made of 14,574 fires which occurred in G-reater New York during 1911;, and it was demonstrated be- yond question that fires in certain trades occur not only with alarming frequency, but to an extent which can only be accounted for by the fact that these trades deliberately take advantage of present fire insurance conditions.

" I might mention for Your Excellency's informa- tion, that the normal fire rate is about 30 per cent, for ' Not Ascertained ' fires ; that is, fires which, after investigation, do not reveal the causes of their origin. But in certain trades the nonasceartained fires rank as high as 78 per cent., 71 per cent;, 69 per cent., 65 per cent, and so on. Careful investigation has also re- vealed the fact that financial and trade conditions lead to insurance fires.

"Arson is frequently committed to avoid bank- ruptcy. Many concerns are in business in New York who have had more than three fires, from which they have collected insurance ; thus saving themselves from

74 Public Papers op Govebnoe Sulzeb

business failure. And yet, the ability on the part of these firms to obtain further fire insurance is unim- paired, despite the fact that many of them have had fires which can only be termed suspicious in character.

' ' Some fire insurance companies claim that they do not issue policies to certain persons who have already proved themselves to be suspicious in character. I have demonstrated, however, and it is further proved by the legislative investigation into ' Corrupt Practices and Insurance Companies other than Life ' in 1910, that insurance companies deal through brokers from whom they are willing to accept a certain amount of bad business, which they know to be risky, provided those brokers will give them a fair proportion of good business.

' ' This is a situation which amounts to criminal col- lusion on the part of the fire insurance companies.

' ' My investigators have also been able to throw light upon the operations of certain persons known as ' pub- lic adjusters.' These persons frequent all fires and by various questionable methods attempt to persuade persons holding fire insurance policies to deal with them instead of through the companies.

" The actions of dishonest public adjusters have brought disrepute upon the whole trade of public fire insurance adjusters, and I strongly recommend to Your Excellency's attention chapter V of my report dealing with this matter. Legislative enactments are required to curtail the operations of these people, and I might mention that since the expose of incendiarism, made in my report, several prominent public adjusters have been indicted by the New York grand jury, as well as certain insurance brokers who have been collabotat- ing with incendiaries in collecting insurance and ob- taining policies.

Messages to the Legislature 75

" Owing to the fact that arson is one of the most difficult crimes in which to obtain convictions — it is considered by criminal lawyers to be on a par with mnrder — it is extremely urgent that remedial legis- lation shall be introduced, which will remove the main cause of arson, that is — the ready access which in- cendiaries now have to fire insurance policies. It is these policies which supply the principal motive for arson.

' ' In the course of my report on incendiarism, corre- spondence was opened with every important fire insur- ance company abroad, and a special visit made to Ger- many in behalf of the New York Fire Department by Mr. Robert H. Mainzer ; a vast amount of information was collected from foreign fire insurance companies, all pointing to the fact that they conduct their business on far more rigid lines than do companies trading in this country.

* ' When persons desire fire insurance in London, Paris, Berlin, Edinburgh, Glasgow, Liverpool, Goth- enburg and other foreign cities, the assured themselves must not only answer numerous questions as to char- acter, financial standing and nature of risk, but the agent who secures the application must personally recommend the granting of the policy to the assured, and this agent gives his written approval to all appli- cations which pass through his hands.

' ' Foreign companies have also a method of ' black- listing ' agents who give them bad business, and by careful selection of their business they are absolutely able to prevent the crime of arson, which is so prev- alent in our country.

" Speaking of foreign cities, I might mention that where New York in 1910 had 14,405 fires, London only had 3,941 fires, while Paris had but 2,030 fire^ and

76 Public Papees of Governoe Sulzee

Berlin 2,068 fires. Greater New York has 300 fires per 100,000 inhabitants, while London for the same popu- lation has but 81 fires; Paris, 74; Berlin, 97; Vienna, 59; St. Petersburg, 55 fires.

' ' "Where European cities pay a per capita fire loss of only about 50 cents. Greater New York pays a per capita fire loss of $2.45. Some foreign cities, such as Southampton and Dresden, are as low as 12 cents per capita.

' ' Making every allowance for climatic and building conditions, the discrepancy is highly unfavorable to the American Metropolis.

' ' Where foreign applicants for fire insurance poli- cies request insurance, they must fill out proposal forms, which require them to answer questions, not only relating to their personal business and previous record, but they must state whether they ever had any previous fires in any premises occupied by them, and they must give full particulars of such fires. Any answers to questions on these proposal forms are taken as warranties under the policies, and when answered untruthfully invalidate the contract.

" Since sending out this report on incendiarism, I have received numerous letters from many insurance experts throughout the country, even presidents of fire insurance companies, highly commending the report, and also agreeing with me in my general conclusion that our present unhappy conditions in this country are entirely due to the lax methods followed by fire insurance companies here. I am glad to say that I am not alone in my conclusion.

" The only adverse criticism I have received has been from certain members of the Board of Fire Un- derwriters and from individual managers of fire in- surance companies, who have been incensed that my

Messages to the Legislature 77

investigators should have .obtained policies from their companies.

" Those who have challenged our figures have been convicted of error by confronting them with their own public utterances made previous to our exposure of lax fire insurance methods. The arguments presented by these parties have been trifling in weight and easily refuted. ., ;

' ' I feel safe in assuring Your Excellency that public opinion is entirely in our favor and that it has been thoroughly aroused.

' ' All that .is necessary now is to follow up the work inaugurated by the Fire Department, by legislation compelling changes in present methods of doing fire insurance business in this country.

" It would seem that the companies would see the error of their ways and voluntarily oft'er to make neces- sary reforms in their present methods. But from in- formation I have been aJble to gather, they appear de- termined to continue in their present course, and are displaying a supercilious contempt for public opinion. As the position which they have taken up is untenable, and is against the common good, they cannot long occupy it.

" I recognize that the duties of your important pub- lic ofiice prevent you from giving detailed . attention t» many subjects, even of extreme moment, but I feel quite sure that where a matter of actual life and death — to say nothing of vast property loss to large bodies of citizens — is involved that Your Excellency will not fail to give this particular matter the personal con- sideration it most certainly deserves. " Respectfully,

" JOS. JOHNSON

" Fire Cow.mis.tioner "

78 Public Papers of Goveenob Sulzeb

In my opinion, this is a matter of much moment con- cerning the general welfare, and it seems to me de- mands the immediate attention of the Legislature, to the end that the evils to which reference is made be remedied at the earliest possible day. Hence I renew my recommendation that the State of New York should have the best Standard Fire Insurance Policy in the country.

■'-!•! (Signed) WM. SULZER

On Promotion and Direction of Agricultural Education and Country Life Advancement

State of New York — Executive Chambek

Albany, February 17, 1913 To the Legislature:

I have the honor to transmit herewith a report re- cently made to me by the New York State Agricultural Advisory Board, organized under chapter 785 of the Laws of 1911 and having as its object the promotion and direction of agricultural education and the ad- vancement of country life.

In my annual message to the Legislature on Jan- uary 1st the recommendation was made that agricul- tural education should be fostered until agriculture is taiight not only in a few colleges in the State but in every high school in our Commonwealth and that whatever is within the power of the Legislature to do to sustain, to promote and to upbuild the agricul- tural resources of the Empire State should speedily be done.

The report of the State Agricultural Advisory Board declares that its members have adopted certain reso-

; Messages to the Legislature 79

lutions bearing upon the question of agricultural edu- cation. These resolutions are herewith submitted to your honorable bodies as of general interest to thfe people of the State and I commend them to your most friendly consideration: »

" (1) That the main effort toward the introduction of agricultural education, whether through State or local aid, be directed toward the study of agriculture and rural subjects in the public high schools.

" (2) That in addition to those institutions already authorized to train teachers of agriculture, special and adequate provisions be made for training such teach- ers at the State Normal College and in one or more Normal Schools.

" (3) That the State Department of Education give direction, at a few points distributed with reference to the leading agricultural industries, to the develop- ment of adequate teaching equipments in high schools which may serve as examples and illustrations for -the further extension of such equipment.

" (4) That the Special State Schools already estab- lished be developed toward teaching home economics and agricultural technology, the latter somewhat spe- cialized for each school. u ,

" (5) That the further deyelopmeiit of the Special State Schools, when this may safely and wisely be accomplished, shall be made with reference chiefly to the fruit and vegetable growing interests, under which policy the southeastern and western parts of the ^State would be considered by the establishment of one school in each of those sections ; and thereafter special schools of agriculture shall be established only if the people of a locality determine whether they desire a school and will take a subs]tantial part in its financial support.

" (6) That this Board favors legislation enabling

80 Public Papers of Govebwoe StfLZES

cities of the first and second class to establish public schools of agriculture either within or without the limits of said cities.

■' (7) That in schools of agriculture hereafter es- tablished, the Commissioner of Education, the Com- missioner of Agriculture and the Director of the State College of Agriculture at Cornell University, shall be ex-officio members of the Board of Trustees."' " That the following resolution be reaffirmed: " That this Board recommends to the State: ' ' The policy of the further introduction of instruc- tion in agriculture into the public schools ; and that to better accomplish this result, plans should be perfected as rapidly as possible for maintaining agricultural in- struction with large allotments ; and that an allotment be provided each school, union or high school, teach- ing a class of not less than iifteen in agriculture, and for the common district school giving an approved course in nature study."

(Signed) WM. SULZEE

Public Health

On Findings and Recommendations of Special Commis= sion Appointed by Governor to Collect Facts, Receive Suggestions and Make Recommendations as to Changes in the Public Health Law and Their Administration

State of New Yokk^ — Executive Chambbk

At,-BAi^Y, February 19, 1913 To THE Legislature:

One of the first fiuties of ihe State is to protect the life and promote the health of its citizens. There is

Messages to the Legislattjee 81

no more important subject of public administration than public health. The State comes very close home to the individual when it saves him from sickness and even from death. This, it can do, does do, and should continue to do in a much larger degree. **

Believing that large opportunities in this direction were as yet only partially utilized in this State, on January 10th last I appointed a special commission to collect facts, receive suggestions, and make recom- mendations as to changes in the public health laws and their administration. This commission of emiiient citizens consisted of Hermann M. Biggs, M. D., chair- man; Homer Folks, secretary; John A. Kingsbury, assistant secretary; E. E. Baldwin, M. D., W. E. Mil- bank, M. D., Mary Adelaide Nutting, John C. Otis, M. D., and Ansley Wilcox.

In order that needed legislation might be considered and enacted at this session, I requested the Commis- sion to report to me in part at least, by February 15th instant.

In the short period of five weeks the Commission has collected a surprisingly large amount of authoritative information with regard to public health work in the various portions of the State. At ten public hearings it has received suggestions from sixty persons. It has communicated with the health oflBcers of all towns, vil- lages and cities of the State. It has made detailed inquiries through personal representatives as to public health conditions and administration in every town and village of two counties selected as typical.

On February 15th the Commission reported to me its findings and recommendations, which I transmit herewith for your careful consideration, and which will be followed ere long by a draft of a bill we are pre- paring to carry these recommendations into effect.

82 Public Papers of Goveknoe Sulzee

There is now no well co-ordinated system of public health administration in this State. Each- town, vil- lage and city, except cities of the second class and Rochester, has its own local board of health, which is, to all intents and purposes, a law unto itself. It is manifest that although there are 1,400 towns, villages and cities in the State, there are not 1,400 different ways of dealing efficiently with each of the detailed problems of disease. A good method of controlling an outbreak of smallpox in one community is good in the others. The best methods of preventing the spread' of the infection of typhoid fever in one community are the best methods for the State as a whole. A system of isolation and quarantine in dealing with scarlet fever which works well in one city will work well in other cities. . A board of health consisting of a super- visor, justice of the peace, and other local authorities of a town is not prima facie a qualified body to define an adequate method of stamping out diphtheria.

There are many subjects as to which complete local control and direction are imperative, but in matters of public health, the interests of all parts of the State are closely interwoven. In general, the cities appear to have worked out their health problems more effect- ively than the smaller communities and rural districts. The urban death-rate, some years ago well above that of the rural and village population, has steadily fallen and is now below the rural and village rate. There appears to be no reason why the rural and village death-rate, and also the urban death-rate, should not be further greatly diminished. With all the natural advantages of rural life, there is no reason why the death-rate in the country should not be brought well below that of the city. I am convinced that by proper action, by carrying out the recommendations in this

Messages to the Legislature 83

report, this can be brought about. A reduction of two in the number of deaths per thousand of popula- tion outside of cities of the first class would mean a saving of 7,000 lives per annum. By competent sani- tary experts it is considered perfectly practicable to secure this result within a few years.

Aside from the economic value of everything which tends to conserve human life and efficiency, there are several important financial factors. It is a surprise to learn that the fees paid members of town and village boards of health last year in one county of the State amounted to $1,592.80, and in another county to some $1,200, indicating that the total amount paid by town and village taxpayers to members of local boards of health for attendance at meetings is from $70,000 to $100,000 per annum. No adequate returns for this ex- penditure are evident. The methods of quarantine in vogue in many localities involve great economic loss, amounting, possibly, I am told, to as much as half a million dollars per annum. An outbreak of smallpox in any city or village involves serious losses to its busi- ness men, most of which are clearly avoidable. It may be conservatively estimated that the saving that would result from an efficient control of preventable disease other than tuberculosis throughout the State would be not less than $10,000,000 per annum. Efficient pub- lic health administration pays. The motto of the New York City Health Department, ' ' Public health is pur- chasable. Within natural limitations, any community can determine its own death-rate, ' ' should be made the mo.tto of the State.

The Commission's report confirms my impression that there are very great opportunities for wise co- operation of local and State agencies in the protection

84 Public Papers of Governor SxjijZer

of health and the saving of life. The 14,000 deaths per annum from tuberculosis can be greatly reduced in the near future. The people have determined that tuber- culosis must be conquered. Last year's deaths from pulmonary tuberculosis were 821 fewer than the year before — 379 fewer in the city of New York, and 442 fewer outside of the city. The movement for the pre- vention of tuberculosis is under way, but it needs greater momentum. ; It is not a one-season campaign, but a war, and no one knows through how many sum- mers and winters it may last. It is our duty to prose- cute it with all vigor. The people are with the move- ment.

In St. Lawrence county last week in eight towns the people voted upon the question of taxing themselves to establish and maintain a tuberculosis hospital. The proposition was carried in every town by majorities ranging from 2 to 1, to 8 to 1.

Another thing. The loss of 7,000 babies in this State per annum must be stopped. The remedy is simple — State-wide registration of births, and in industrial cen- ters of population a sufficient number of infant welfare stations. A striking reduction in the infant mortality in New York city has accompanied the establishment of infant welfare stations. Prior to 1911, the number of deaths from diarrhoea and enteritis of infants under two years of age in New York city had been uniformly much over 5,000 — in 1910 it was 5,655. In 1911 a number of new infant welfare stations were established and the number of these deaths dropped to 4,479. In 1912, fifty-five stations were maintained by the health department of that city and the number of deaths under two years; from diarrhoea and enteritis further . declined to 3,958 — a reduction in two years of 1,697

Messages to the Le6isi;ATUbk 85

infant deaths due to these causes as a result largely of infant welfare stations. In Greater New York the people have decreed that the needless sacrifice of inno- cent infant life shall cease. The rest of the State should speedily follow this excellent example. *

It is my opinion that 1,128 deaths per annum from typhoid fever is at least 1,000 too many. Diphtheria, measles, whooping cough — the deaths from all these can be greatly diminished. Not alone by controlling these infectious diseases, but also by creating increased interest in the subject of public health, the average of physical vigor, efficiency, and productivity can be greatly increased.

Among the more important refornis which the Com- mission recommends in order to make rapid progress toward these desirable results are the following:

1. That the tenure and compensation of the State Health Commissioner be such as to secure and retain the most efficient man in the State for that service, and that he be required to devote substantially his entire time to his official duties.

2. That a Public Health Council be established with power to adopt sanitary regulations.

3. That the State Commissioner of Health exercise supervision over local health authorities and be speci- fically charged with the enforcement of the Public Health Law.

4. That the State, outside of New York city, be di- vided into at least twenty sanitary districts with . expert sanitary supervisor in each devoting full tin to health work.

5. That the duties of town and village health boards: not otherwise provided for be transferred to town boards and village boards of trustees.

86 Public Papers of Govbenob Sulzee

"6. That health officers of towiQS and villages receive an annual minimum salary equivalent to at least fifteen cents per inhabitant of the village or town.

7. That health officers of towns and villages be charged with the following duties: (a) Annual survey and a continuous supervision of their districts, (b) Examination of all school children, (c) Inspection of all school buildings and places of popular assemblage-, (d) Popular education as to public health, (e) Secur- ing full registration of communicable diseases and of. births and deaths, (f ) Enforcement of public health laws and regulations.

8. The enactment of a modern statute for birth reg- istration and other vital statistics.

9. Authority for each city, county, village .and town to employ trained nurses, as infant welfare nurses, school nurses, tuberculosis nurses, and to visit the sick.

10. That the tuberculosis law be amended so as to provide (a) for more complete reporting of cases; (b) for supervision of reported cases by trained nurses ; (c) for compulsory removal and detention- of da,ngerous cases.

11. Additional State provision for incipient, cases of pulmonary tuberculosis.

12. That a bureau of child hygiene, and a bureau of public health nursing, be added to the State Depart- ment of Health.

13. County hospitals for tuberculosis where not al- ready established.

14. Adequate laboratory facilities readily available for all health authorities.

15. Establishment of contagious disease hospitals by local authorities., and their inspection by the State Health Department.^

Messages to the Legislature 87

16. Eegulation of midwifery.

17. Reports of health officers made presumptive evi- dence of facts stated ; and such officers freed from per- sonal liability, if acting in good faith.

18. Extension of educational work of the State De- partment of Health.

19. Encouragement of courses in sanitary science in educational institutions.

The facts set forth in the Commission's, report fuUy justify these recommendations. I strongly urge that the legislation necessary to carry them into effect be enacted promptly.

The Commission calls attention to a number of other subjects having a vital relation to public health, as to which it believes action should be taken, but concerning which it has not been able in the limited time, to formu- late specific recommendations. I have therefore asked ithe Commission to continue its ,;w.ork,„an(i, to report to me at a later date upon these and, other pertinent matters., ,, ,

It is gratifying to say the Commission has served wholly without compensation and has provided for its own expenses, except for stenographic services.; The people of this State are under permanent obligations to its members for their painstaking and public-spirited services. They deserve the commendation of the people and the thanks of the State. They have done, and are doing, a great work for the general welfare. , (Signed) WM. SULZER

For report of Commission see page 605.

88 Public Papees of Goveenob Sxjlzeb

Submitting Draft of Bill to Carry into Effect the Recom- mendation of the Special Public Health Commission Appointed by the Governor

State op New York — Exectjtivb Chambee

Albany, March 11, 1913 To the Legislatuee:

In my message addressed to you on February 19th, transmitting the report of the Public Health Commis- sion appointed by me on January 10, and urging its adoption, I stated that a draft of a bill to carry these recommendations into effect would follow. I beg to submit such a draft herewith, and to earnestly urge its early and favorable consideration at your hands.

The Chief Executive of the United States, in his inaugural address, said :

' ' Nor have we studied and perfected the means by which government may be put at the service of humanity in safeguarding the health of the nation, the health of its men, and its women, and its chil- dren, as well as their rights in the struggle for existence. This is no sentimental duty. The firm basis of government is justice, not pity. These are matters of justice."

This bill is a justice-promoting measure. By its en- actment the State would perform in a more nearly ade- quate degree the imperative duty resting upon it to protect the health of its citizens. This measure, if en- acted, would place the State of New York in the front rank of those States in which the people, through their duly constituted representatives, have taken wise and far-sighted action to promote health, vigor and effi- ciency. ♦

(Signed) WM. SULZER

Messages to the Legislattjee 89

Transmitting Report of Committee of Inquiry

State or New York — JExecxjtive Chambbb

Albany, March 24, 1913^ To THE Legislatubb:

Upon my induotion into the office of Governor of this State, I found that the expenses of the administration of the government of the State had several times multi- plied during the past generation, and that the expenses had mounted to so startling a figure that an investiga- tion of the causes for such result was imperative, in order that the people of the State, who are obhged to furnish the revenue for the support of government, might be advised thereof, and in order that application of sound business and financial principles to the affairs of the State might be advanced.

In my first message to the Legislature, I invited at- tention to this most important subject; and, actuated by a desire to safeguard the rights of the people and to give them a wise and economical business administra- tion of the' State 's affairs, I availed myself of the au- thority, granted to the Governor by the executive law, to appoint a committee to conduct such investiga- tion. The report of that committee is now before me, and I herewith transmit it to the Legislature. It is so complete, concise and intelligent that an analysis of it in this message is not only unnecessary, but, in my judgment, it would be unwise for me, by such analysis, to divert attention from the report itself, which is worthy of the attentive reading and careful considera- tion of every member of the Legislature, and of the people generally throughout the State. Therefore, it seems to me wiser to submit the report of the Commit- tee of Inquiry to the Le^slature with my general

90 Public Papebs of Goveenoe Stjlzeb

recommendation that it be approved, and that the bills which are suggested be enacted into laws.

If the notion has taken lodgment in any mind that the prerogatives of the Legislature have been in the least invaded by the work of the Committee of Inquiry, a moment's reflection will dissipate that view. There has been no effort,; in any way, to interfere with the constitutional power of the Legislature; and, beyond that, the Committee of Inquiry has carefully avoided, as a reading of the report will demonstrate, any ap- pearance of the assumption ; of interference with the recognized authority of the co-ordinate branches of the State government.

Thus it will be readily appreciated that the Com- mittee of Inquiry omitted all investigation as to the legislative and judicial branches of the State govern- ment. It devoted its efforts to investigations with respect to the administration of the State's affairs for the purpose of suggesting necessary economies and recommending the promotion of efficiency in such ad- ministration. The results of its labors wUl, I have no doubt, be appreciated by the legislative branch of the State government, as it is by the Executive.

In the organization of the Committee of Inquiry, my anxious endeavor was to secure the services of wise and competent men who could be depended upon to, disinterestedly and without malice or partisanship, devote themselves to the important work committed to them. The result of the Committee 's work abundantly justifies my confidence in its membership. The re- markable industry and energy of the Committee cannot be too highly cormnended. In an all too brief period of time, it has performed extensive and arduous labors with a thoroughness that challenges favorable com-

Messages to the Legislature 91

parison with "the work of any public investigation of which I am aware.

The untiring devotion of its members to the accom- plishment of the lofty purposes of the investigation has set a standard and furnished an example of patriotic endeavor, which, it is hoped, will be emulated in the future. Its work commands the admiration of public officials, and compels the gratitude of the people of the State.

The chairman of the Committee, John N. Carlisle, is one of the leading lawyers of the State and a citizen of the true public spirit, as well as a man of the highest character and the broadest capacity. The second mem- ber of the Committee, John H. Delaney, has earned his way to recognition in the business world as a wise administrator, and has now taken his place in the public life of the State as a citizen devoted to the gen- eral welfare. The third member of the Committee, H. Gordon Lynn, has earned an enviable reputation as an accountant and a systematizer of business manage- ment. In addition to his expert knowledge, he brought to bear upon the work of the Committee his thorough acquaintance with affairs of public accounting gath- ered in the city of New York, all illuniinated by his pronounced devotion to the cause of economic, efficient and good government.

The counsel to the Committee, John T. Norton, is Deputy Attorney-Greneral, former member of : As- sembly, former Corporation Counsel of the city of Troy, honored by his party by a nomination for the office of Secretary of State, and last year endorsed by the bench and bar of this vicinity for nomination for the office of Associate Justice of the Court of Appeals. He is recognized as one of the most able and schqlarly lawyers in practice in this State.

92 Public Papees of Govebnoe Sulzee

Naturally, from their character and experience, these distinguished public servants aimed at the highest ideals, and the only regret that comes to me is that such devoted service to the people was necessarily for only so limited a period. They have done splendid work. They have saved the taxpayers millions of dol- lars. They have confirmed my confidence in their ability. They have earned the gratitude of the people of the State.

It is the recommendation of the Committee of In- quiry in its report that the great work which it has thus hastily, but with remarkable thoroughness, accom- plished, should not be a passing work of wisdom, to be read, admired, commended and then neglected.

In a somewhat similar effort to promote efficiency and economy in the administration of the Federal Gov- ernment, more than two years have been occupied by a commission at Washington. The work of the Com- mittee of Inquiry, during the brief space that has inter- vened since the beginning of this year, will not suffer by comparison with the two years' work performed at Washington.

If efficiency and economy in the administration of the State's affairs are to be furthered and made a per- manent endeavor, the work must be continued. The Committee recommends the establishment of a Depart- ment of Efficiency and Economy, and wisely supple- ments that recommendation by legislation which wUl uphold the hands of the Commissioner of Efficiency and Economy by putting into operation, for the general welfare of the people, a systematic business and financial management of the State's business and financial affairs. It is high.time the State of New York was placed on a business basis in the administration of its affairs.

Messages to the Legislature 93

If tlie Legislature will approve these reoommenda- tions, a long step forward in the interest of efficient and economic administration will be at once taken, and a permanent policy will be established which will reduce to the minimum the expenses of the administration oi the State's government; and, thus, the interests of the taxpayers throughout the State will be ' safeguarded against waste, extravagance and inefficiency.

With the interests of the people at large before our minds, it seems to me that it is the imperative duty of the le^slative and executive branches of the State government to regulate the business management of the State 's affairs upon the lines advised by the Com- mittee. I am convinced that there is no room for doubt as to the wisdom of adopting this course.

It is, therefore, without hesitation and with the full consciousness that I am performing to the extent of my constitutional authority a patriotic duty to the people of the State, that I recommend the enactment into law of these measures for the promotion of effi- ciency and economy in the administration of the State's business and financial concerns.

The legislation recommended by the Committee of Inquiry has had my most careful consideration. Its wisdom is abundantly justified in the Committee's re- port. It rests upon good reason. These progressive measures have been carefully prepared. They are in the interest of the people. They define a wise public policy. Their enactment into laws will redound to the credit of the Legislature that approves them.

The work of the Committee of Inquiry has inaugu- rated a business system for the State. The old methods of waste and extravagance, or worse, must be dis- carded. The people, demand an honest and efficient business administration of their affairs. They are

94 Public Papeks of Gtoveknoe Sulzek

entitled to nothing less. If the recommendations here- with submitted shall find place in the body of the State 's law, the great Empire State of New York will take the place, which rightly belongs to it, at the head of its sister states, furnishing to its people a wise, honest, efficient and economical administration of gov- ernment. The people of the State so demand. It is our duty, as representatives of the people, to enact this demand into law.

WM. SULZEK

For Report of Committee of Inquiry, see page 652.

Conservation of Natural Resources

Regarding the Diversion of the Waters of the Niagara River and Transmitting Letter from Attorney-Gen- eral Carmody on the Subject

State of New York — Executive Chamber

Albany, April 7, 1913. To the Legislature:

On the third instant the Attomey-G-eneral wrote me a letter regarding the diversion of the waters of the Niagara river for hydro-electric power, which is as follows :

" State op New York

' ' Office of the Attorney-General

"Albany, April 3, 1913 " To His Excellency, Governor Sulzer, Albany, N. Y.: " My Dear Governor Sulzer. — I believe that the situation in respect to the diversion and use of the

Messages to the Legislatuee 95

waters from Niagara river for hydro-electric power, as at present permitted, should receive the prompt at- tention of the Legislature of the State of New York. ' ' ' The title to the center of Niagara river, both in the bed of the stream and in the waters that pass over it, is in the State of New York, subject to such rights as individual riparian owners may have and subject also to Federal control in the interests of commerce, and for the purpose of protecting the navigability of the stream.

" I believe that Federal control under the Constitu- tion is limited to these two purposes, and that the Fed- eral government has not power to regulate the diver- sion of water for power purposes, or for any purpose other than that eipressly given it in the Federal Constitution.

" On January 11, 1909, the United States govern- ment and Great Britain entered into a treaty for the purpose of regulating the diversion of water from the Niagara river, which treaty permitted a diversion not to exceed twenty thousand cubic feet per second on the American side of the river. The Federal government, pursuant to the terms of this treaty, enacted a law known as the Burton Act, which prohibited a diversion in excess of fifteen thousand six hundred cubic feet per second, and which empowered, the Secretary of War to issue permits under the limitations of this act for the use of the waters of the river for power purposes. Pursuant to this power, the Secretary of War issued a permit to the Niagara Falls Power Company and to the Hydraulic Power Company of Niagara Falls, permit- ting the former to divert eight thousand six hundred cubic feet per second, and the latter, six thousaaad five hundred cubic feet per second ; aggregating a total of

96 Public Papbes of Govbbnob Sulzeb

fifteen thousand one hundred cubic feet per second, or five hundred cubic feet per second less than the diver- sion permitted by the Burton Act.

" The State of New York has, during the past two years vigorously opposed the principle of Federal con- trol as embodied in the Burton Act, and was repre- sented before the Committee of Foreign Affairs in Congress repeatedly in oppositioi;i to the extension of that act, which expired on March 4, 1913 ; since which time there has been no Federal control of the diversion of the waters of Niagara river, unless the permits is- sued under the Burton Act are still valid, which I do not believe.

' * An investigation of this matter was made by Col- onel Lucas, employed as consulting engineer by the Canal Board. I have his report before me, which is to the effect that since the expiration of the Burton Act the Niagara Falls Power Company has been using about ten thousand five hundred cubic feet of water per second, and the Hydraulic Power Company of Niagara Falls about nine thousand five hundred cubic feet per second, or a total diversion of twenty thousand cubic feet per second, being the total amount permitted to be diverted from the river by the treaty between this country and Great Britain.

' ' The report of Colonel Lucas as to the amount now being diverted is based upon admissions of the officers of the companies.

' ' I submit for your consideration a brief memo- randum of the facts and a discussion of the law appli- cable thereto, as I understand it.

" The Hydkaxjlic Power Company or Niagara Falls

' ' The Hydraulic Power Company takes water from

the river and conducts it by a canal fourteen by one

Messages to the Legislature • 97

hundred feet, through the city of Niagara Falls for a distance of about one mile, to its power plant, dropping the water in penstocks to the turbines below, securing a head of about two hundred and twelve feet.

' ' I believe this diversion cannot be legally made as a riparian owner. As such owner, the company may have the right to use the water in front of its property for power or other purposes. But I do not think the right, if it exists, justifies the diversion of the water from the river as it is diverted by the canal used by the company, notwithstanding the fact that the water is returned to the river below the plant of the company.

"In addition to its riparian rights, however, this company secured from the Legislature in 1896 (chap- ter 968 ) an act recognizing and confirming the right of the company to take, draw, use and lease and sell to others the waters of Niagara river for domestic, munic- ipal, manufacturing, fire and sanitary purposes, and also to develop powers therefrom for its own use ; and to lease and sell to others to use for manufacturing, heating, lighting and Other business purposes, the quantity being limited and restricted to such amounts of water as may be drawn by means of the hydraulic canal of said company; which canal is limited to a width of one hundred feet and to a depth and slope sufficient to carry at all times a maximum uniform depth of fourteen feet of water. This act, however, provides that the rights therein granted and conferred shall not impair the practical navigation of Niagara river. This act recognizes an existing right, but limits its exercise. It does not in express terms undertake to grant any right or powers to the company in addi- tion to those theretofore appurtenant and exercised as riparian owner. Vol. 1 — 4

98 . Public Papers of Governob Stjlzeb

' ' I believe, therefore, that whatever rights the com- pany now has to divert water from the Niagara river, without passing upon the validity, at this time, of the permits issued by the Secretary of War under the Burton Act, must be justified by its riparian owner- ship and not by any grant from the Legislature.

" Niagara Falls Power Company

" This company takes water from the river at a point south of the intake of the Hydraulic Company, and conducts it by a surface canal to its power plant, which lies a hundred feet, or thereabouts, east of the river, dropping the water by penstocks about one hun- dred and thirty-six feet into the turbines, whence it is discharged below the falls by a subterranean tunnel running under the city of Niagara Falls.

' ' This company has, from time to time, received from the Legislature grants which, if valid, are sufficient to authorize it to take water from the river for power purposes and to generate power in the shape of elec- tricity or otherwise. I am informed, however, that this company asserts its right to the diversion of these waters as riparian owner. The grant from the Legis- lature, chapter 513 of the Laws of 1892, limits the diversion of water to such an amount as shall be suffi- cient to produce two hundred thousand effective horse power. The act also provides that the grant thereby made, as well as any former grant, shall not be con- sidered as conferring an exclusive right, or any right to infringe upon the State Eeservation, nor the right to obstruct navigation in the Niagara river.

"As regards the company's riparian rights, I am of the- opinion that this would not justify the diversion of the water out of the bed of the river to the distance

Messages to the Legislature 99

that it is now diverted, notwithstanding the fact that it is afterward returned to the river. The company must, therefore, be prepared to justify its use of the water under the legislative grants mentioned and under the permits issued by the Secretary of War. Inasmuch as the Burton Act has expired, under which the permits of the Secretary of War have been issued, I am not prepared to say that these permits have any further validity or that any diversion of water from the river can be justified under these permits.

' ' Neither company pays the State any revenue. In this connection it is important to observe that the Canadian companies, for diversion of the water from the Canadian side of the river, pay tlie following rentals: One dollar and fifty cents for each horse power up to twenty thousand ; $1 for the next ten thou- sand horse power; 75 cents for the next ten thousand horse power ; 50 cents for every horse power thereafter.

" Recommendations

' ' I believe it to be incumbent upon the State of New York to act promptly with a view to protecting the scenic grandeur of the Niagara river and its naviga- bility. This the State may do in its sovereign right and capacity; and this the State should do in view of the fact that the Burton Act has expired and that ex- press Federal control over the diversion of waters from the river has thereby ceased.

' ' I believe it to be the duty of the State to recognize the provisions of the treaty between this country and Great Britain, which prohibits the diversion on the American side of the river exceeding twenty thousand cubic feet per second. It is, indeed, probable that the limitation should be restricted to that established by

100 Public Papers of Govebnoe Sulzee

the Federal government in the Burton Act, namely, to fifteen thousand six hundred cubic feet per second. At least, no diversion should be permitted, I believe, beyond that amount until a thorough examination of the matter indicates that the beauty of the Falls would not be impaired by a diversion of a larger quantity of water.

' ' Whether or not the companies at present using the waters of the Niagara river without compensation may be restrained from so doing, or whether or not the franchises heretofore granted by the State may be rescinded, are matters that may be attended to here- after in the courts. Legislative action, however, I believe to be imperative at this time, along the lines above suggested.

" It may not be wise for the State at this time to take any action that would advei'sely affect the prop- erty interests that have been acquired under the per- mits heretofore granted. In view of the fact, however, that these companies have received these enormous benefits without compensation, I suggest the advisa- bility of imposing a special franchise tax upon the fran- chises received, or upon the profits of the companies, until such time as the State shall have adopted a policy of dealing with the surplus waters of navigable streams.

"All of which is respectfully submitted.

"(Signed) THOMAS CAEMODY,

^^Attorney-General. ' '

This able exposition of the subject-matter by the dis- tinguished Attorney-Greneral speaks for itself, and I concur substantially in his recommendations that the Legislature should now take prompt action in the premises with the view of protecting the scenic gran-

Messages to the Legislature 101

deiir of Niagara Falls, and conserving the rights of the people of the State.

The State of New York is committed to the p-olicy of conserving all of its natural resources, and particularly of developing its vast water powers so that they can be utilized for the benefit of all the people.

(Signed) WM. SULZEE

For a Reform of the Election Laws, for a Simpler and Shorter Ballot and for Direct State=Wide Primaries

S^ate of New York — Executive Chamber

m T Albany, April 10, 1913

To THE Legislature: ' "^ '

As the legislative session is drawing to a close, I deem it my duty, in the interest of the general welfare, to again call your attention to the insistent demand of the people throughout the State for a reform of the election laws ; for a' more simple and shorter ballot ; and for direct State-wide primaries.

To that end I renew my recommendations that the ■Legislature take up these very important questions without further delay and pass bills ere the adjourn- ment far their accomplishment.

The Democratic party in convention assembled, at Syracuse, adopted the following plank as a part of its platform :

" We favor the amendment of existing election laws wherever experience has demonstrated that changes are necessary to improve their effective operation and to decrease the expense of elections ; and in particular to facilitate the making of inde- pendent nominations.

102 Public Papers of Goveknok Sulzeb

' ' We condemn the Republican Assembly of 1912 for refusing to join the Democratic Senate in pass- ing the Loomis bill which reduced the expense of elections by decreasing the number of days of reg- istration and lowering the salaries of election officials.

" The Democratic party was the first to recog- nize the demand for a State-wide direct primary and so declared in the Rochester platform of 1910 and the Democratic Legislature of 1911 despite Republican opposition enacted the first State-wide direct primary law in the history of the State. We again declare in favor of the principle of the direct primary and we pledge our Legislature to adopt such amendments to the existing laws as will sim- plify and perfect the direct primary system. ' '

The Progressive party in its convention, last fall, adopted the following plank as a part of its platform :

' ' We pledge the enactment of a real direct pri- mary law applicable to every elective office and a Presidential preference primary law. ' '

The Republican party in its convention, last year, adopted the following plank as a part of its platform : " We favor the short ballot, surrounding primary elections with the same safeguards as regular elections, the direct election of party com- mittees, the direct nomination of party candi- dates in congressional, senatorial. Assembly, county and municipal subdivisions, and the direct election of delegates to State conventions, with the right of party electors to directly express their preference for nominations for State offices if they so desire.

Messages to the Legislattjee 103

" We further advocate that the cumbersome method of nomination of independent candidates for offices by petition be simplified so that those who axe dissatisfied with the nominations made by regular political parties may have the names of their candidates placed upon the ballot in a less burdensome way."

It is thus apparent that all the political parties in our State are irrevocably committed to these salutary reforms. As a matter of fact all the members of the Legislature are bound by these pledges, and will be false to their promises unless legislation is enacted at this session for electoral reform' and a State-wide direct primary.

In my message to the Legislature at the beginning of the year I said : ' ' We are pledged to the principle of direct primary laws State-wide in their scope and character, and I urge the adoption of such amend- ments as will simplify the procedure and make com- plete and more effective the direct primary system of the State."

Believing as I do in these reforms I renew my recommendations, and unhesitatingly affirm that noth- ing will gratify me more than to be able to attach my signature to bills that will give the people of the State the best election laws and the most complete direct primary law possessed by any State in the Union.

It is my opinion that the people of the State are in favor of nominating all candidates for elective office from Governor and United States Senator down to constable. The primary law should be as simple, and as honest, and as practicable, as legislation can make it. Every safeguard now thrown around the ballot box on election day should be invoked to protect the ballot box on primary election day.

104 Public Papbbs of Governor Sulzer

The electors can rely on me to favor these changes in our election laws as I shall every other reform to restore the government of the people to the people. I have always claimed that the people cap be trusted to conduct their government, and were just as capable of nominating candidates for office as they were of electing candidates to office. In a government such as ours we must rely on the people, and we should legis- late in their interest and to promote their welfare.

I know that the people of this commonwealth, in common with the people, of our sister States, believe that if they are qualified to choose by their votes on election day governors, judges, senators and congress- men, they are also competent on primary day to nomi- nate these same officials, not some of these officials, but all of them, and I therefore urge the speedy enact- ment of legislation that will make every candidate for public office the choice of the people.

If it is wise to trust the people with the power to nominate some public officers, I am sure it is wise to trust them with the power to nominate all public offi- cers. I believe it is as wise to .trust them to nominate a Grovernor as to trust them to nominate a constable, and as wise to trust them to nominate a judge of the Court of Appeals as to trust them to nominate a jus- tice of the peace.

The people have been given this power in many other States and they have used it to bring about greatly improved conditions. Let the Empire State put itself in line with the foremost States in all the tJnion, by favoring nominations by the people, for thus only can we secure a government of the people.

While the main defect in our primary law is that w« have not made it applicable to State officers yet there are other defects that we should remedy. Primary

Messages to the Legislature 105

ballots in some districts in New York city have been from eleven to fourteen feet in length, and a law placing before an elector on primary day such a ballot as this deserves the ridicule it has receiv^. As long as Assembly districts are made the' unit of representation such ballots will be possible and I recommend that election districts instead of Assembly districts shall be made the unit of representation.

r also recommend the abolition of all committee designations; the prohibition of the party emblem on primary ballots ; the removal of the party circle from the primary ballots; the prohibition of the use of party funds at primary elections; and the establish- ment of a State committee membership of one hundred and fifty — or one for each Assembly district.

I further recommend reducing the number of names required bn a nominating certificate; the authoriza- tion of registration on primary day; and a proper limitation of the amount that may be expended by any candidate for the purpose of securing a nomination. The law should also prescribe the expenses which may be lawfully incurred in connection with candidacies for nomination, and should insure the publicity of all expenses.

The enactment of these regulations into law will, I am confident, permit the voters of the State to con- struct political organizations from the bottom up- wards, instead of permitting them to be constructed from the top downwards. The power which, controls organizations is usually the power that controls nomi- nations, and the power which controls nominations is the power which controls public officials.

How vitally important, therefore, that this power should be wielded by the many and not by the few. The changes which I advocate in our primary law are

106 Public Papers of Goveenok Sulzee

in harmony with the spirit of the times and of demo- cratic institutions. They aim to restore to the people rights and privileges which have been usurped by the few, for the benefit of invisible interests which aim to control governmental officials, to pass laws, to prevent the passage of other laws, and to violate laws with impunity. To these invisible powers I am now, always have been, and always will be opposed.

No government can be free that does not allow all its citizens to participate in the formation and execu- tion of its laws. Every other government is a form of despotism. The political history of recent years illustrates the truth that under the forms of demo- cratic government popular control may be destroyed, and corrupt influences, through political organization, establish a veritable despotism.

That popular government, under Grod, shall be res- urrected and made actual, the Legislature of this State is urged to carry forward the work of reforming our election and primary laws, so that in matters political every man shall count for one and no man shall count for more than one.

(Signed) WM. SULZER

Asking the Enactment of Legislation to Establisti a State Printing Board

' State of New Yokk — Executive Chamber To THE Legislature: Albaky, May 1, 1913

I respectfully ask that Assembly bill, introductory No. 2085, to establish a State printing board, com- prising the Attorney-General, the State Comptroller

Messages to the Legislature 107

and a superintendent of printing, be passed by the- Legislature. The bill was drawn by the Commission of Inquiry and is designed to stop the waste and over- charge, if nothing worse, in the purchase of printing and stationery for the State Departments. i

An investigation by the city of New York less than four years ago reduced the expenditure for printing and stationery supplies from $1,400,000 a year to $700,000 a year, and made for increased efficiency. The printing experts who produced this result have investigated the State's expenditures and it is upon their report that Assembly bill No. 2065 was drawn by the