Inaugural address of  Percival W. Clement  As it appears in the  Journal  of the  JOINT ASSEMBLY  BIENNIAL SESSION  1919 Friday, January 10, 1919 Inaugural Address   Mr. President and Gentlemen of the Joint Assembly: The  town  is  the  unit  of  government  in Vermont,  and  the meeting  of  the  representatives  of  towns  antedated by  many  years  of  the  formation  of  the  state  government  as  it  is  now  constituted.    A  meeting  of  the  town representatives  therefore  has  always  been  an  important  event  to  the  people  of  Vermont.    This  meeting  of  the legislature of 1919 is particularly important on account of the problems which confront us, and upon which you will be required to pass your judgment.  We  have  been  intrusted  with  the  management  of  state  affairs  for  the  coming  two  years.  I  know  that  we approach  the performance of our duties guided by  a  lofty purpose  to do our best  for  the  prosperity  of  the  state. Yet, however high may be our  ideals, however much we may hope  to  accomplish, we may  fail of  achievement unless  we  can  at  times  lay  aside  our  personal  preferences  and  act  with  the  majority.  Team  work  is  more necessary  for  specific  performance  in  legislative  action  than  anywhere  else.  If  at  times  we  find  our  individual opinion  submerged,  we  may  console  ourselves  with  the  thought  that,  by  and  large,  the  judgment  of  the legislature is better than the judgment of any one man in it. When our predecessors last met in this historic chamber, less than two years ago, we were entering upon the greatest war  the world  has  ever  known. The  history  of  the world  is  the  story  of  its wars  and we  have  not  been slow  in making history  since  that day. Even  two months ago, when we were  elected  in office,  the  slogan of  the country was  “Everything  to win  the war.’’ And  now,  so  quickly  do  armies  and  navies  shift  the  scenes  in  times of war, we face the problems of peace. Whatever the League of Nations or the League to Enforce Peace may do for  the  world  in  the  future,  of  one  thing  we  may  rest  assured:    The  horrible  memories  of  the  struggle  through which the world has just passed will deter it from entering upon another great war so long as we live. Thanks  to  the  dauntless  courage  of  our  sailors  and  soldiers,  the  victory  is  ours. All  honor  to  the  noble men and women who have stood close behind our fighters with material aid and cheery word.  We could not all be in the  firing  line, but we have been able  to pass up  the ammunition. All honor  to  those who have given  their  lives in  defense  of  their  country.  In  the  moment  of  our  victorious  rejoicing  the  thought  of  them  comes  to  us.  Their memory  will  ever  be  fresh  in  our  hearts.  Their  names  are  engraved  upon  the  pages  of  our  country’s  history.  They are immortal; for their deeds will live after them. The  legislature of 1917 provided for  the payment of a small bonus  to each enlisted soldier and sailor during the  first  year  of  his  enlistment.    That  was  during  the  period  when  the  federal  government  was  not  paying  a proper  wage.  I  see  no  good  reason  why  men  who  were  drafted  should  not  have  the  same  benefit.  The  service they performed was equal and the same. I therefore recommend that the provisions of Section 53, No. 168 of the Acts  of  1917,  be  extended  to  all  men  drafted  from  Vermont  into  the  naval  or  military  service  of  the  United States not above the rank of private. PUBLIC EDUCATION. The  laws regarding public education should be modified with regard  to  transportation and  the restoration of the  rural  school.  Our  farmers  are  entitled  to  have  adequate  school  facilities  provided  for  their  children,  and  to have  the  schoolhouse,  wherever  possible,  so  located  as  to  become  the  center  of  the  varied  interests  of  the community. The  report  of  the  State  Board  of  Education  will  show  that  during  the  past  year  $200,209.27  was  paid  for transportation.  Of  this  amount  the  state  paid  $90,477.21.  Under  proper  arrangement  a  large  proportion  of  this sum would have been available for  the repair and building of schoolhouses and for  the employment of properly qualified  teachers. The  law  should  be  so  amended  as  to make  transportation  optional with  the  school  directors, subject  to  proper  methods  of  appeal.  At  the  same  time  the  State  Board  of  Education  should  be  given responsibility  and  authority  for  cooperating  with  the  towns  in  the  planning,  repairing  and  building  of  rural schoolhouses. STATE EXPENSES. The problem of state expenses  is very serious and complex. During  the war we were  justified  in spending a large amount of money in order that Vermont should do her full part toward winning that war. Now that the war is  over we  should  give  our  attention with  the  same  diligence  to  a  reduction  of  expense  and  the  conservation  of our resources. In 1901, as shown by  the auditor’s comparative statement, state activities were less than thirty in number, and  the grand  total of state expense was  less  than $800,000. Today state activities have reached a  total of over fifty and the expense has risen to $2,250,000 per year. So within the knowledge of every member of this assembly, we have near doubled our state activities and trebled our state expense. The state has not increased in population.  There  is  no  more  taxable  property  now  than  in  1900,  although  the  valuation  for  taxation  purposes has been  increased.  In  fact,  the  reduction  in  tilled areas of  farm  land would  indicate  that  the  farm property as a whole  has  deteriorated  in  value.  How  then  have  these  additional  sums  been  raised?  The  answer  is  by  the taxation  of  banks,  railroads,  corporations  and  other  indirect  forms  of  taxation,  the  sources  of  which  have  now been thoroughly exploited. We  have  reached  our  taxing  limit  in  this  direction  and  your  predecessors,  the  legislature  of  1917,  found  it necessary  to  impose  a  state  tax  of  twenty  cents  on  the  dollar  of  the  grand  list  in  order  to meet  the  expenses  of the war and the increased cost of doing public business. The war is over, but the expenses of it are not paid, and you are not only  faced by  the same conditions, but  the  report of  the budget committee—which you have before you—indicates  that  the  continuation  of  this  direct  tax  of  twenty  cents  is  not  only  necessary,  but  if  this legislature passes any special appropriations of any kind, an increase in that state tax will be necessary. Every  administration  for  the  past  twenty  years  has  been  confronted  by  this  problem  of  increased  state expense, and various attempts have been made to consolidate state institutions, departments and activities. Your predecessors  and mine have made  some  important progress  in  that direction, but  the net  result has  always been that we  have  had  every  year more  state  activities  and  greater  expense, with  no  proportionate  gain  in  the  public convenience, or the public benefit therefrom, or the public ability to pay therefor. STATE INSTITUTIONS. A  partial  list  of  the  state’s  actual  running  institutions  supported  in  the whole  or  in  part  by  state  funds  is  of interest in this connection:  The State House and the new building for the use of the Supreme Court and the State Library. A number of state departments which have been housed outside these buildings and paying rent elsewhere. State Prison House of Correction Industrial School State Hospital Home for Feeble-Minded Vail School and Farms Randolph Agricultural School University of Vermont Norwich University Middlebury College Johnson Normal School Castleton Normal School Summer Schools Teacher Training Courses Supreme Court Probate Courts County Courts Municipal Courts Soldiers’ Home State Fair Agricultural Fairs Armories Fish Hatcheries Forest Reserves Camp Ground at Fort Ethan Allen The State of Vermont  is not  a business  corporation  and we  cannot  treat  it  as  though  it were. Nevertheless a glance  at  such  a  list  must  immediately  suggest  to  you  that  the  state  is  in  business  on  a  very  large  scale,  with most  of  the  revenue  to  be  provided  by  taxation.  Taxation, whether  direct  or  indirect,  hits  everyone whether  he owns  property  or  not.  I  believe  that  one  of  the  reasons why  the  number  of  state  institutions  and  state  activities has so continually increased is because the people do not feel indirect taxation; but they participate in it, just the same.  Everyone  bears  a  part  of  the  expense  of  maintaining  our  public  institutions  and  conducting  our  public activities  whether  he  feels  it  or  not.  You  and  I,  therefore,  are  directly  interested  whether  we  pay  directly  or indirectly. You  have  before  you  the  report  of  the  budget  committee,  which  estimates  the  expense  of  the  state  for  the coming two years at $4,857,890. After reckoning every indirect source of revenue, the available income to meet this  sum  is  but  $3,711,300.    Here  is  a  difference  between  the  expenses  of  the  state  and  the  income—so  far  as known  at  this  time—of  more  than  $1,100,000.  It  is  clear,  therefore,  that  there  must  be  a  levy  by  means  of  a direct tax to make up this deficiency. Speaking as business men, what in your opinion should be done towards a remedy of existing conditions? What can we unite upon  that will materially reduce our annual expense and still not reduce the necessary activities or impair the efficiency of the state institutions? In  addition  to what might  be  called  state  institutions  listed  above,  there  are  a  very  large  number  of more  or less permanent activities and institutions which might be listed as follows: State Highways State Military Agricultural Department Board of Education Board of Health Public Service Commission Armory Commission Board of Pharmacy Commission on Boundary Lines Commissioner of Industries (Factory Inspector) Budget Committee Fish and Game Commission Horticultural Society Maple Sugar Makers’ Association Dairymen’s Association Poultry Association Insurance Commission State Library and Free Libraries Purchasing Agent Sergeant at Arms State Geologist Topographical Survey Vermont Historical Society Investigation Water Resources Legislative Reference Bureau State Engineer Attorney General (Detective Service) Board of Charities and Probation Freeing Toll Bridges Tuberculosis Commission CONSOLIDATION. If we were conducting such enterprises upon strictly business principles and at our own personal cost, would we  have  two  state  prisons,  one  at  Rutland  and  one  at Windsor,  when  one  prison  would  amply  care  for  all  our offenders against the law? Would  we  have  two  normal  schools,  one  at  Johnson  and  one  at  Castleton  when  one  central  school  would suffice? Would  we  have  two  agricultural  schools,  one  at  Randolph  and  one  at  Lyndon,  when  either  one  of  these schools  would  care  for  all  our  pupils,  to  say  nothing  of  the  Agricultural  College  in  connection  with  the University of Vermont, maintained in part by federal aid? Would we have a school for pedagogy in Middlebury and one at the University of Vermont? Would  we  support  sixteen  municipal  courts,  fourteen  county  courts,  twenty  probate  courts  and  a  supreme court? Would  we  distribute  and  scatter  our  business  interests  over  the  entire  state,  making  it  necessary  for  our boards and officers of supervision to travel continually in order to keep in touch with them, or would we aim at concentration in some central plant? Some progress toward concentration and centralization has already been made. These  are  problems  for  you  to  consider,  and  I  am  aware  that  any  attempt  on  your  part  to  change  existing conditions will be met by opposition on the part of those who have a special or local interest in such institutions as may be affected. My purpose at this time is merely to call these conditions to your attention, not to urge upon you any legislation except such as in your wisdom would appear to you in adequate and proper remedy. ACCOUNTING. In  regard  to  accounting,  all material  for  the  use  of  the  state  should  be  purchased  upon  requisition  from  the department  requiring  the  same.  These  requisitions  should  be  made  upon  the  Board  of  Control  sufficiently  in advance  of  requirements  so  that material  can  be  purchased  to  the  best  advantage. After  being  approved  by  the Board  of  Control,  the  requisitions  should  be  handed  to  the  Purchasing  Agent,  the  material  purchased  and  the bills therefor presented to the Auditor. The Auditor should examine the bills and if found correct they should be vouchered for payment. The Auditor’s office should be an office of record with regard to appropriations made by the legislature and the amounts charged against  them  from  time  to  time.  It should also examine and certify as  to  the correctness of all  bills  against  the  state.  When  bills  are  found  to  be  correct,  they  should  be  vouchered  and  sent  to  the  State Treasurer for payment. The  Treasurer’s  office  should  keep  full  and  complete  books  showing  cash  on  hand  and  the  full  financial condition of the state every night. One  of  the  best  ways  to  provide  for  the  payment  of  bills  and  the  receipts  for  the  same  is  by  means  of  a voucher-check.    Such  voucher-checks  should  be  issued  from  the  Treasurer’s  office  and  a  full  account  thereof kept  there.  No  money  should  be  paid  out  from  the  Treasurer’s  office  except  upon  vouchers,  properly authenticated  by  the  Auditor.  It  is  not  necessary  that  money  should  be  advanced  to  the  heads  of  departments, and  this  practice  which  has  prevailed  in  the  past,  resulting  in  financial  difficulties  for  the  state,  should  be stopped. All receipts for money received for the state by departments and persons employed by the state should be covered directly into the state treasury. It would be tiresome to go into the full details of such a system of accounting, but it can be worked out with the help of expert accountants. I  believe  that  instead  of  examinations  by  the  Bank  Commissioner,  whose  duties  in  connection  with  the examination  of  state  banks  should  take  all  of  his  time,  the  state  should  have  a  certified  accountant  make examination  of  all  state  books  and  accounts  relating  to  the  receipts  and  disbursements  of money  at  least  twice every  year.   All material  in  state  institutions  and  departments  bought  and  on  hand  should  be made  a matter  of careful  inventory,  so  that  the  exact  condition  of  such  departments  and  institutions  in  relation  to  state  property could at all  times be determined by an examination.   This has already been done  in  state  institutions during  the year 1918. HIGHWAYS. The  problem  of  good  roads  is  one  that  affects  every  citizen  and  resident  in  Vermont,  and  has  a  direct influence  on  every  kind  of  business  and  every  public  and  private  activity.  Our  present  system  of  highway construction  is an outgrowth of  the  township  form of government, which, while  it  represents  the purest  form of democracy  so  far  as  internal  government  is  concerned,  is  very  difficult  to  adjust  to  the  necessities  of  highway construction, now that the automobile has brought all parts of the state close together, and the motor truck is fast taking  the  place  of  horse  drawn  vehicles  for  the  transportation  of  produce  and  other  merchandise  over  our highways. The value of  farm or manufacturing property  is measured  somewhat by  its distance  from  the market where  its  products  are  sold. A  farm which  is  located  ten miles  from  its market  center  on  a  road which  is  good and passable for a motor truck or other heavy vehicle at all seasons of the year is in fact nearer market and more accessible  than  a  farm  located  three miles  from  its market  center  upon  a  road  impassable  for  such  vehicles  six months in the year. Under  the  town  system  we  are  likely  to  have  247  different  kinds  of  roads,  owing  to  the  different  ideas  of 247  road  commissioners,  and  although  the  provisions  for  state  and  county  supervision  represent  a  decided advance,  we  are  nevertheless  faced  by  the  necessity  of  changing  our  plan  of  highway  construction  and maintenance so  that we shall have, not only better  town  roads  in our 247  towns, but continuous highways  from town  to  town  and  from  county  to  county, which may  be  traveled with  safety  and  convenience  at  all  seasons  of the year. To  this  end  it  seems desirable  for you  to  consider whether  it would not be well  to place  the  construction of certain  selected  highways  in  the  hands  of  a  state  board,  to  consist  of  the  state  highway  commissioner,  the  state engineer and the governor ex officio. We are spending in the vicinity of a million dollars a year for highway purposes, and a survey of conditions in  Vermont  during  the  months  of  October  and  November  in  the  year  1918  must  convince  any  student  of  road building  conditions  that  there  is  something  radically wrong with  our  present  plan  of  highway  construction  and maintenance  The  results  accomplished  for  the  past  ten  years  have  not  been  commensurate  with  the  heavy expenditures  which  have  been  incurred.  You  should  consider  some  radical  change  to  be  made  therein,  and whether  the  state  should  adopt  a  policy  regarding  its  highways  as  a  profitable  investment  and  not  entirely  as  a perpetual expense. I  am not  advocating  a bond  issue nor do  I  consider  it necessary  for  the  state  to borrow any  large amount of money  at  one  time.  But  it  is  a  fact  that  the  money  collected  from  automobile  licenses,  from  the  state  tax,  and from  legislative  appropriations,  is  sufficient  to  maintain  all  the  permanent  roads  of  the  state,  considerably improve  the  town  roads,  pay  the  interest  on  such  loans  as  you  may  consider  necessary  to  authorize  for permanent highway construction, and provide a sinking fund for retiring the bonds at their maturity, should you consider it wise to authorize such an issue. I do not conceive it my duty to formulate a set plan at this time. It is sufficient to say that in my judgment a comprehensive highway plan can be satisfactorily and profitably financed,  so  as  to  secure  the  construction  of  such  permanent  highways  as  you  may  designate,  incurring  no excessive burden, and I shall be glad to cooperate with you in its accomplishment. It  is seemingly superfluous  to say  that  in connection with such a plan  the same  rigid system of audit should prevail as  in all other departments of state government, and expenditures should be authorized by a  responsible state  board  other  than  the  proposed  highway  board,  or  the  existing Board  of Control,  and  no money  should  be expended  except  to  pay  for  work  actually  done,  material  actually  purchased  and  only  on  properly  approved vouchers to be paid by the state treasurer, the same as in other state expense. The  federal  government  will  undoubtedly  increase  the  amount  of  its  appropriations  available  for  road construction. And  the  State  of Vermont  should  take  advantage  of  all moneys  apportioned  to  this  state  for  such work. Of  course  any  plan  which  is  adopted  for  permanent  road  construction  will  not  obviate  continued  effort  to improve the town roads, which work is quite as necessary and important as the building of permanent roads, so-called. ECONOMY. Elsewhere  I  have  called  your  attention  to  the  remarkable  growth  of  state  institutions,  a  list  of  which indicates  that  we  have  machinery  for  conducting  a  state  as  large  as Massachusetts  or  New  York,  although  we have  a  population  less  than  the  city  of  Buffalo.  A  list  comparing  Vermont  with  cities  of  about  the  same population in the country is as follows: Assessed Valuation  Population  of Property   $233,479,647 Vermont ..........................................................................364,322..............................   590,213,183 Buffalo ............................................................................472,169..............................   265,152,603 Minneapolis.....................................................................363,454..............................   440,415,899 Washington, D.C. ............................................................366,631 .............................   244,078,013 New Orleans....................................................................371,747 ............................. You  see,  although  we  have  a  population  less  than  Buffalo  by  100,000  people,  Buffalo  has  two  and  a  half times as much grand list as we have. The State of Vermont is about on a par in population with Washington, but Washington has a grand list nearly twice as large as that of Vermont, I call  these facts  to your attention only by way of caution. There are very many activities which are good  in themselves,  and  in  the  adoption  of  which  we  might  all  of  us  concur,  provided  we  had  the  money  to  pay  for them.  But  the  same  proposition  meets  us  in  handling  business  of  the  state  that  confronts  us  every  day  of  our lives.  We in our private affairs are forced to choose what things we will have and what we will deny ourselves; not  because  we  do  not  want  and  would  not  enjoy  all  of  the  good  things  of  life,  but  because  we  have  not  the money to pay for them. It is plain that in planning all that can be done in the way of consolidating and condensing the state activities and the business of state institutions, we should also try to make them self supporting so far as possible. I am  informed  that  the State of Vermont owns 1,700 acres of  land  in connection with  these  institutions, and 15,000 acres of woodland. This acreage should produce a large part of the food, provender and at least a part of the  fuel  used  in  such  institutions.    A  beginning  has  already  been  made  in  this  direction  and  it  should  be  the business of your officers and employees in such institutions to make this policy a fixed and important part of the solution of our financial problems. BOARD OF CONTROL. Your predecessors in the legislature of 1917 passed a  law placing  the control of  the principal state activities and most of  the financial  transactions of  the state under  the supervision of a Board of Control, consisting of  the Governor,  the Auditor  of Accounts,  the Treasurer,  the Director  of  State  Institutions,  and  one  other member.  In my opinion,  this Board has done some  important work  in the way of concentrating authority and responsibility, but  the  upward  progress  of  state  expenses  has  not  been  checked,  due  perhaps  largely  to  the  war.  On  the contrary, it shows a net increase in the biennium of $1,571,390.65 and judging from the statement of the budget committee,  you  will  be  faced  by  the  necessity  of  providing  revenue  for  a  still  further  increase  unless appropriations are sharply limited and some decided action taken towards retrenchment. I believe that the Board of Control is well constituted and doing good work, but it would seem as though the farmers  of Vermont,  representing  its most  important  industry—an  industry which  is  absolutely  essential  to  the very  existence  of  the  commonwealth  and  its  people,  should  be  represented  on  this  board,  and  to  this  end  I recommend  such  changes  thereon  as will  permit  the Commissioner of Agriculture  a  seat upon  this board  and  a voice in its transactions. The  hand  of  the  federal government  rests heavily upon  all  the business of  the United States. On  account of the  war  the  people  have  suffered  this  without  complaint  and  with  the  hope  that  relief  would  come  with  the coming  of  peace.  So  far  this  is  a  hope  only,  and  there  is  apparently  no  definite  plan  for  returning  to  rightful ownership  property  which  has  been  seized  by  the  federal  government  under  the  plea  of  war  emergency.  This presents  a  matter  to  you  which  merits  your  serious  consideration.  The  railroads  and  telephone  and  telegraph companies  contributed  a  revenue  to  the  state  of  $1,182,899.44  during  the  past  biennium.  This  is  one  of  our largest  sources  of  revenue.  There  is  a  definite  program  before  Congress  for  the  federal  ownership  of  public utilities, principally the wires and the railroads. If this plan should be consummated, the state must face the loss of  this  revenue  which  would  mean  undoubtedly  a  still  higher  state  tax.  It  would  seem  to  me  proper  for  this legislature  to  go  on  record  against  further  sequestration  of  the  sources  of  state  revenue  by  the  federal government. FEDERAL AMENDMENT. The State of Vermont has already sacrificed a large revenue by its adoption of the amendment to the federal constitution which  takes over  to  the  federal government  the princely  revenue from  income  taxes, and  the end  is not yet. You will be asked at this session to pass upon another amendment to the federal constitution which not only deprives the State of Vermont of a certain revenue, but which also abrogates certain powers of self government, which  the  state  has  always  retained,  and  deprives  our  citizens  of  time-honored  rights.  While  this  matter  rests entirely with you, and not with me, I do not deem it improper at this time to remind you of the danger which lies in a too complaisant surrender of the rights and powers inherent in our sovereign state, and in our people. At  the  proper  time  I  may  make  further  suggestions  on  this  subject,  but  at  this  time  I  will  only  express  the hope that your work upon this most serious question may be well and carefully performed. There  will  also  be  some  falling  off  in  the  amount  of  the  state  tax  on  deposits  in  savings  banks  and  trust companies  which  in  the  past  biennium  represented  $1,507,849.  This  falling  off  will  be  due  to  investments  in Liberty  Bonds  and  War  Savings  Stamps,  etc.,  and  under  normal  business  conditions  will  undoubtedly  be returned in due time. You have  also before you  the  recommendations of  the Commissioner of Taxes  in which he  asks  for  certain additional  powers  in  the  way  of  supervising  the  collection  of  taxes  in  the  various  towns.  At  the  time  this recommendation  and  estimate  was  made  there  was  $230,000  in  uncollected  taxes  on  the  books  of  the  various towns  in Vermont. This proposal  to permit a closer supervision of  tax collecting methods with  the  final right  to issue  an  extent  upon  property  of  delinquent  collectors merits  your  careful  consideration.  The  state must watch its  problems  of  revenue  with  the  most  jealous  care,  for  the  reason  that  a  further  falling  off  must  undoubtedly result in increased direct taxation. WORKMEN’S COMPENSATION. In  1915  the  State  of  Vermont  undertook  to  deal  with  questions  of  Employers’  Liability  and  Workmen’s Compensation,  to which was added  in  l917  the  inspection of factories, all now coming under  the  jurisdiction of the Commissioner  of  Industries.  This  department  bears  a most  important  relation  to  our  industrial  life,  and  the desire  of  employees  coming  under  its  jurisdiction  for  a  higher  schedule  of  compensation,  in  the  case  of  death resulting  from  injury  there-under,  should  be  considered  in  connection  with  the  costs  of  compensation,  which already  fall heavily upon  the  employers of  the  state.  If  the  schedules of  compensation  are  to be  increased,  then the  legislature might  properly  consider whether  provision  should  not  be made  for  carrying  the  risks  under  this law by means of voluntary associations, organized under such plans as would permit this to be done at cost, and such  amendments  to  the  insurance  laws  should  be made  as  to  provide  therefor without  imperilling  the  industry and business interests concerned therein. You  will  give  these  suggestions  and  recommendations  such  consideration  as  they  merit.  I  on  my  part  will undertake  to  cooperate  with  you  towards  the  best  improvement  of  the  laws  under  which  we  are  to  live,  and pledge myself  to a careful and  fearless execution of  them. This  I conceive  to be my duty under  the constitution which binds us all and in the light of which our official deeds must be judged. The Governor having concluded the reading of his message, withdrew and the Joint Assembly dissolved.  FREDERICK G. FLEETWOOD, Secretary of State, Clerk.