Inaugural address of  Ernest W. Gibson  As it appears in the  Journal  of the  JOINT ASSEMBLY  BIENNIAL SESSION  1947   Thursday, January 9, 1947 Inaugural Message  To the General Assembly and the People of Vermont: I  have  taken  the  oath  of  office  as  the  Governor  of  the  State  of  Vermont  with  deep  humility,  yet  with  a conviction  that  there are great  things  to be done for all of  the people of our State, and with a determination  that you and I, the Legislature and the Chief Executive, will cast the mold of a greater Vermont. A Condensed World We  live  in  a  most  extraordinary  age.  Events  so  various  and  so  important  that  they  might  crowd  and distinguish  centuries  are  compressed  in  our  times,  within  the  compass  of  a  single  life.  When  has  it  happened that history has had so much to record in the same term of years as since August, 1914. Since that date we have gone  through  two  great  World  Wars.  We  have  seen  gangster  tyrants  such  as  Mussolini  and  Hitler  come  to ignoble  death. We  have  seen  a  world  separated  by  time  and  oceans,  a  world  of  many  nations  and  many  races become one world. We have been  thrust  into an era of  tremendous speed. By  the  fastest planes one could  leave Montpelier  today  and  be  half  way  around  the  world  in  twenty-four  hours,  and  we  read  of  planes  that  will  fly faster  than  sound  itself. We  live  in  an  age where  in  a  flash  of  a  second we  can  turn  on  our  radios  and  listen  to any part of the world. Our television sets can see for hundreds of miles. Era of Scientific Advancement It  is  an  era  when  airplanes  are  so  crowded  that  faster  planes  bump  into  the  slower  ones;  an  era  when  man has learned to see through the dark or fog or clouds; an era that has seen the inventions of radio-guided, rocket-propelled missiles that can be hurled into the stratosphere and travel hundreds of miles; an era when civilization has  invented  a  destructive  force  so  great  that  man  can  now  destroy  himself.  Experts  tell  us  that  eight  atom bombs  of  the  type  dropped  on Nagoya  could  obliterate  the metropolis  of New York  and,  carefully  placed,  one hundred could  ruin  the great  industrial might of our nation. Yet our country and Russia and undoubtedly others are  trying  to harness the cosmic ray, which, physicists tell us,  if harnessed, will unleash upon  this world a force a thousand times greater than the atom bomb. Age of Conflicting Ideologies Yes,  we  are  living  in  an  extraordinary  age—an  age  in  which  there  is  now  rampant  upon  this  world  two ideologies diametrically opposed, one  to  the other;  the  ideology as proclaimed by  the Soviet Union of Socialist Republics  that  the  State  is  the  supreme  power;  that  the  individual  must  have  his  life  completely  directed  and guided  by  the  State;  that  there  is  nothing  that  counts  in  this  world  but  material  things;  that  there  is  no  life hereafter;  that  there  is  no  Supreme  Being  whom  we  term  God.  Then  there  is  our  own  philosophy  of  the supremacy of the individual, of his right to be free and happy under law, and of confidence in the belief that we were created in our Maker’s image. In these critical times, therefore, it is all-important that we who put our faith in the God-given dignity of the individual do our utmost to exemplify our faith. EDUCATION Aristotle once said, “All who have meditated on the art of governing mankind have been convinced that the fate of empires depends on the education of youth.” I am a devout follower of this philosophy, one who believes that  the  very  existence  of  civilization  as  we  know  it  depends  upon  our  youth  securing  the  very  best  education that it is in our power to give. Teacher Training and Retention There are many indications that we can do better with education in our State. Our normal schools have been running  at  less  than  one-half  their  capacity.  Few  of  our  more  talented  youngsters  desire  to  enter  the  teaching profession, and yet without good teachers the education of our children will be most seriously handicapped. We are losing each year many of the better of our experienced teachers, losing them to states nearby, states that pay their  teachers  a  living  wage.  The  number  of  teachers  teaching  on  temporary  certificates  is  increasing  rapidly each year until we have better than a quarter of our teachers teaching by virtue of this expediency, ranging from students  fresh  out  of  high  school  to  the  lady  volunteering  to  share  the  load  at  the  age  of  ninety. Our minimum salary  for  teachers  in  Vermont  is  as  low  as  any  state  in  New  England,  and  is  one  of  the  lowest  of  our northeastern states. Many of our  teachers are not earning as much as waitresses and many are forced  to work at long  evening  hours  in  other  jobs  in  order  to  make  a  living  wage  and  thus  be  in  a  position  to  continue  this honorable  and  self-sacrificial  profession.  The  attitude  of  the  public  in  regard  to  teachers  has  seemed unwholesome  toward  a  profession  that  should  be  as  respected;  yes, more  respected  than  that  of  practically  any other profession. Feeling  that  the  first  step  that  must  be  taken  to  improve  our  educational  system  was  to  make  sure  that  we meet  our  obligations  in  the  field  of  teacher  training,  I  appointed  a  committee  shortly  after  the  election  last November,  to  examine  into  our  teacher  training  facilities  and  I  asked  that  committee  to  report  to  me  in  one month.  This  committee  consisted  of  John  Hooper  of  Brattleboro,  Mrs.  Sylvia  Wright  of  Rupert,  and  H.  Dean Pearl  of  Burlington.  Dr.  Payson  Smith,  an  outstanding  educator  of  the  Department  of  Education  of  the University  of Maine,  at my  request,  agreed  to  serve  as  a  consultant.  This  committee worked  diligently  and  for long  hours.  Their  report  was  submitted  to  me  on  December  21;  parts  of  it  have  been  printed  in  the  various newspapers of this State, and I recommend it to you for your careful consideration. Expanded State Board of Education Our State Board of Education now consists of five members, one of whom is appointed each biennium for a term  of  ten  years.  I  feel  our  present  State  Board  of  Education  has worked  hard,  but without  the  support  of  the public  so  necessary  to  accomplish  the many  things  that  are  needed  to  be  done.  It’s my  opinion  that  in  this  day and age a term of ten years is too long, because times are moving so rapidly. The trend in other states is to have shorter terms for their board members, and larger boards. I recommend that this Legislature increase the number of  members  on  the  Board  of  Education,  and  give  careful  consideration  to  changing  the  lengths  of  terms  of  its members. Establishment of Teachers Colleges I also  recommend  that  the  state-owned normal  schools at Castleton and  Johnson be changed  in names  from normal  schools  to  teachers  colleges,  and  that money  be  provided  so  that  these  institutions may  be  immediately brought  into  good  physical  condition.  I  further  recommend  that  this  Legislature  make  a  careful  study  of  the needs of  these  two  institutions  for educational purposes  in  their  respective areas  to  turn  them  into efficient  top-notch  teachers  colleges. Vermont  needs  as  soon  as  possible  to  have  all  its  certified  teachers  have  four  years  of teacher training. Teachers Minimum Salary I  further  recommend  that  the  minimum  salary  for  all  teachers  in  this  State  be  raised  at  least  to  $1500  per year;  that  a  minimum  of  $1600  be  established  for  two-year  trained  teachers;  $1700  for  three-year  trained teachers; and $1800 for four-year trained teachers. I recommend that a bonus of $100 a year be paid by the State to  all  certified  teachers  who  teach  in  standard  or  superior  rural  schools.  I  recommend  that  the  State  assume  at least two-thirds of the increase of teachers’ pay due to the raising of the minimum. Temporary Teacher Training Lyndon  Institute,  which  has  been  helping  this  State  train  teachers  by  making  certain  of  its  facilities available,  might  well  explore  the  possibility  of  expanding  the  offerings  of  that  institution  to  meet  the  large demand of young men and women for education beyond the twelfth grade. The University of Vermont might well  explore  the  field of  secondary  education,  elementary  specialists  and supervisors, and graduate education for principals and superintendents. In the meantime, and while our teacher shortage continues, we are fortunate to have the cooperation of these two private institutions in training elementary teachers.  Teacher Retirement Plan Another means  of  attacking  this  very  serious  problem  of  shortage  of  trained  teachers  is  a  proper  retirement program. Such a  retirement program  is being prepared, and  I am  informed will be  submitted  to  this Legislature by  the Vermont State Teachers Retirement Association. A sound  teacher  retirement plan will prevent either  the dismissal  of  aged  teachers  without  resources,  or  the  sacrifice  of  the  best  interest  of  the  schools  in  order  to continue  the  employment  of  teachers  who  are  no  longer  capable.  To  be  wholly  effective  in  achieving  these purposes, the teacher retirement plan should provide for automatic or compulsory membership on the part of all teachers  in  the State.  It has become  to be  an  accepted principle of Social Security  that  those  to be benefited do not, in their youth, recognize the need for protection in the time of their old age or disability. The great majority of  State  Teacher  Retirement  plans  provide  for  such  compulsory  membership,  and  I  recommend  most  careful consideration of this program when it’s presented. Adequate Pupil Transportation We  have  another  very  important  situation  in  this  State  in  regard  to  education.  There  are  something  like 6,000 youngsters  in Vermont  each year who never go beyond  the eighth grade. That  is—about one-third of  the youth  of Vermont  never  go  beyond  the  eighth  grade.  Two  substantial  contributing  reasons  for  this  astonishing fact  seem  to be  that  there  is no adequate  transportation available  to  transport  these youngsters  to a  town having a  high  school,  and  the  tuition  required  by  towns with  a  high  school  is  higher  than  the  State  requires  a  town  to pay  if  it  sends  its  youngsters  to  a  high  school  in  another  town.  I  sincerely  hope  this  Legislature  will  examine into this most unwholesome situation and take corrective action so that every youngster in this State of Vermont who desires an education beyond that of the eighth grade may not be denied it. Equalization of Educational Opportunity and Costs Summarizing my  attitude  towards  public  education  in Vermont,  grounded  as  it  is  in  the  realization  that we have  a  long  way  to  go  in  a  very  short  time,  it  is  my  belief  that  our  greatest  problem  is  equalizing  educational opportunity  and  distributing  the  costs  as  equally  as  possible  among  the  towns  and  school  districts  of  the  State. For that reason, I believe that we should start now eliminating all discount on our equated pupil formula so that the  benefits  of  this  formula may  fall  on  all  towns  large  and  small  alike.  I  further  believe  that  the  formula  itself which  is  founded  in  part  on  the  grand  list  of  the  various  towns  should  be  examined  for  the  correction  of inequities caused by this uneven factor. State Relations with U.V.M. I  am  not  satisfied with  the  unsettled  status  of  the  relations  between  the  institutions  of  higher  education  and the State.  I  recommend  that  these  relations be not only  settled, but  simplified, and  that a plan be worked out  so that  the  State  would  have  full  authority  in  the  administration  of  the  College  of  Medicine  and  the  College  of Agriculture,  and  at  the  same  time  assume  full  responsibility  for  the  expense of  these  colleges. However,  a plan must be evolved so  that  the status of  these colleges  in  the corporate structure of  the University of Vermont will be definitely  fixed and at  the  same  time  a  simple  and definite  formula must be worked out  for  the participation of  the  Colleges  of Medicine  and  Agriculture  in  the  general  University  overhead.  I  am  opposed  to  any  plan  by which the State takes over the University of Vermont as a one hundred per cent State institution. I believe that it is unnecessary  and  extravagant  for  the State  to  follow  such  a  course. Any  such  course, on  the one hand, would constitute  some  degree  of  unfair  competition  with  other  educational  institutions  of  the  State,  and  on  the  other hand, it would seriously jeopardize many of the endowment funds now held by the University. PUBLIC HEALTH Years ago one of the Latin proverbs I learned went as follows: “Mens sana in corpore sano.”—a sound mind in  a  sound  body. Having  finished  the  discussion  of  producing  a  sound mind,  let  us  examine  our  public  health. The  World  War  II  record  of  the  rejections  for  physical  and  mental  reasons  of  Vermont  men  under  the  recent Selective Service Act was truly distressing. The record shows that nearly one out of every two boys of this State called  to  arms  under  the  Selective  Service  Act  were  rejected.  While  there  may  be  some  facts  which  tend  to explain or mitigate this terrible figure, still it is a very black picture. The time has come for this State to see to it health. Thorough Physical Examinations To correct the deficiencies which have shown up so glaringly as a result of World War II, I recommend that every  school  child  in  this  State  receive  at  least  once  a  year  a  careful  physical  and  dental  examination.  I  do  not mean any routine examination; I mean an examination which will X-ray  their  lungs, examine  their vital organs, their blood, and must inevitably reveal any grave defects in their physical well-being. Mobile Health Units In  the  Army  we  had  mobile  health  units,  which  were  equipped  with  modern  laboratory  equipment.  These traveled from Post to Post and in them men were given careful and thorough examinations. I feel sure that such units can be fitted to the needs of this State. They can be staffed by resident physicians recently graduated from our college of medicine and aided by our public health nurses. The expense should be borne by  the State. With these, we  can  see  to  it  that  every  youngster  has  this  careful  physical  and  dental  check-up  every  year. We  shall see  to  it  that  the  parents  or  guardians  of  the  youngsters  and  the  family  physician  will  receive  reports  of  the results of  the physical and dental examinations  that are given.  I recommend  such  legislation and appropriations as will be needed to authorize such health units. DEVELOPMENT COMMISSION If we provide an A-No. 1 education  for our children,  if we see  to  it  that  they are  in good physical condition when they leave high school, there is just one more duty that this State should owe to these youngsters, and that is  to provide  for  them  the opportunity  in  this State  to earn a good  living  for  themselves;  to provide opportunity which would entice the big majority to use their ingenuity and talents here in Vermont. The Legislature of 1945 took a forward-looking step when it created a Vermont Development Commission. However, unfortunately, this Commission  was  saddled  with  the  handling  of  the  so-called  flood  control  problem,  and  as  a  result  has  been unable to do as much for the development of this State as it otherwise could have. Small Industry for Vt. The time is now ripe for the State to secure for itself small industries that will fit our State—small industries that  will  move  into  the  small  towns  and  villages  of  our  State.  For  a  hundred  years  the  population  in  our  rural communities has been receding. Even in my memory as a youngster when I traveled the West River Valley with my  father,  I can  remember  that most of  those  towns had some  small  industry. As  time went on, great  industrial empires  arose.  These  small  industries  found  themselves  unable  to  compete with  the mass  production  of  bigger units. One by one they folded their tents and silently stole away. Decentralization of Industry Today,  however,  this  trend  of  centralization  of  industry  is  being  reversed. The  atom  bomb  of which  I  have spoken  has  caused  this.  While  the  machinery  of  peace  in  our  world  is  being  perfected,  this  nation  must  keep itself strong with an efficient Army, Navy, and Air Force, and  to keep  itself well-armed,  it must have  industrial might  back  of  it.  But,  the  big  industrial  centers  are  too  vulnerable  a  target  for  any  radio  rocket-propelled missiles  that  might  be  armed  with  the  atom  bomb.  The  very  security  of  our  nation  demands  that  our  big industries  decentralize.  And  there  can  be  no  place  in  this  country  that  is  better  suited  for  small  parts  of  these great industries than is our own State of Vermont. A number of industries have already moved to the peace and security of Vermont for other reasons as well—because of the comparable freight rates, good water supply, and electrical  power;  but  most  of  all,  because  of  the  reliability  of  the  Vermont  people—the  best  source  of  labor supply  in  the  United  States.  There  is  still  another  reason  for  industry  decentralizing  and  looking  to  Vermont; namely,  the  present  air  service  from  our  large  centers  of  population  to  the  metropolitan  areas  of  Boston  and New York, as well as the air service that is planned for the State. This brings the plants located within the State of Vermont infinitely closer to their executive offices in the metropolitan areas.    Establishment of Research Unit I  therefore  recommend  that  there be established within  the Development Commission a small  research unit, a unit which can take an inventory of the assets of all of the small communities of our State, and of the big ones too; a unit which will be able by  the accumulation of  these  facts  to determine  just what  type of small  industries any  given  community  could  best  support;  a  unit  which  could  provide  these  facts  to  the  citizens  of  these communities  so  that  they  could  themselves  decide what,  if  any,  small  industries  they would  like  to  have  come into  their  communities.  This  commission,  having  developed  this  information  and  using  the  facts  produced  by this  research unit,  should  then, using  the very best  salesmen  it can  secure, persuade  industries  to  locate up here in  the  peace,  security,  quietness,  and  beauty  of  the  Green  Mountains—remote  from  the  possibility  of  atomic devastation  and where  they will  be  able  to  enjoy  our  natural  resources  and  benefits which  have  already  caused other industries, large and small, to come to our State. Development of Recreational Facilities This State  is on  the verge of a big  recreation boom—particularly  as  far  as winter  sports  are  concerned. Our surrounding  sister  states  are  attacking  this  matter  in  a  big  way—yet  we  really  have  more  to  offer  than  they. More  than one fourth  the acreage of Vermont  is classed as Class IV  land-poor  land-not fit for agriculture. Most of  this  runs  along  the  mountainous  backbone  of  our  State—areas  that  are  little  used.  Private  capital  should  be encouraged  to  build  winter  sports  centers  on  suitable  spots,  on  the  mountainous  backbone  of  this  State.  To secure  such  enterprise,  this  State  must  co-operate  by  seeing  to  it  that  if  private  investors  are  willing  to  invest large  sums  of  money  in  building  ski  lifts,  ski  trails,  and  lodges  they  can  be  assured  of  adequate  road maintenance  during  its  winter,  of  co-operation  from  our  Forestry  Service,  yes,  cooperation  from  all  other departments  of  our  State  Government.  I  know  personally  one  group  that  would  like  to  invest  several  hundred thousand  dollars  to  develop  for  winter  sports  purposes  one  of  the most mountainous  areas  of  our  State,  where houses  are  scarce  and  the  population  scant.  This  should  be  encouraged.  We  should  develop  winter  sports  by private  enterprise  rather  than  by  having  the  State  undertake  to  finance  and  construct  such  great  developments. This program, too, should be under the Development Commission. Development Commission Challenged Whatever  can  be  done  to  stimulate  industry  in  Vermont—through  research  and  the  dissemination  of information—should  serve  as  a  constant  challenge  to  a  Development  Commission  determined  to  develop Vermont.  By  industry,  I  mean  not  only  those  institutions  that  produce  goods,  but  also  those  industrious Vermonters who open their good homes to tourists—and those enterprising people who open up the pleasures of our  lakes,  streams, and  ski-slopes  in ways  that are destined  to make Vermont a  recreation paradise  for all other Americans less fortunately blessed by geography. Your  Development  Commission  should  be  the  nerve  center  for  industry  and  industrious  Vermonters.  An artilleryman would call it the fire control center. COMMUNITY RECREATION In  contrast  to  commercial  recreation—in  which  a  state  uses  its  natural  beauty  and  resources  as  a means  of soliciting  the  patronage  of  outsiders—there  is  a  form  of  recreation  designed  to make  richer  the  lives  of  young and old in our own communities. The first is a business; the second is a public service for which the public taxes itself. Establishment of Dept. of Community Recreation During  the war years community  recreation grew  instead of  languishing  in Vermont.  It was  found  that such activity  tends  to  attract  and  keep  industry  and  its  skilled  workers;  to  raise  property  values;  lessens  crime  and delinquency;  and  builds  a  community’s  reputation  and  morale.  In  fact,  the  war  seemed  to  serve  as  a  test showing  how  necessary  this  form  of  community  recreation  in Vermont was  under  the  direction  of  the Council of Safety,  itself  a war  product.  I  believe  that  the Council  of Safety  has  served  its  purpose  and  that  it  should  be abolished.  But  I  believe  also  that  one  of  its  products,  organized  community  recreation,  should  be  based  on  a permanent basis. I therefore recommend that a Department of Community Recreation be established. Reforestation--Stream Purification We in this State must immediately give careful attention to conservation of our natural resources. Continued waste  of  our  timber  resources must  stop. Ways  and means  to  encourage  crop  timbering  and  reforestation must be found. Many of our streams and lakes are foully polluted and the purifying of these must now be undertaken. I particularly commend for your favorable consideration a sewer service charge enabling act which the Vermont Chamber of Commerce advises me will be  introduced  this session. Development of our mineral  resources must be  encouraged.  The  Conservation  Board  in  its  report  recommends  doing  away with  the  present Department  of Natural  Resources  and  the  Conservation  Board,  and  I  so  recommend.  In  its  place  I  recommend  creation  of  a Department  of  Conservation  headed  by  a  single  commissioner.  This  department  should  be  charged  with handling forests and parks, water resources, stream pollution, flood control, and mineral resources. FISH AND GAME Separate Department—Increased Fees Fish  and  game  activities  bring  a  lot  of money  and  a  lot  of  people  into  our  State. Many  of  our  own  citizens secure  health,  enjoyment,  and  happiness  by  fishing  and  hunting.  I  recommend  that  there  be  established  a separate  fish  and  game  commission  which  shall  have  authority  to  appoint  a  director.  I  also  recommend  that Legislation  be  passed  which  shall  empower  this  Fish  and  Game  Commission  to  promulgate  regulations  which fix  hunting  and  trapping  seasons,  the  catch  and  size,  the  number  and  location  of  test  waters,  posting requirements,  special  permissions  where  warranted  as  to  certain  fish  and  game  waters  or  areas,  and  controls applicable  to wildlife management  provisions.  I  believe  this  department  should  have  authority  to  employ more game  wardens  and  I  recommend  legislation  providing  for  a  guaranteed  income  for  this  department.  I  also recommend an increase in license fees. DEPARTMENT OF PUBLIC SAFETY Our  Motor  Vehicle  Department  at  the  present  time  has  entirely  too  few  personnel  to  cope  with  the  traffic that now exists.  The men work long hours with few days off.  The rate of traffic fatalities in this State has risen alarmingly  this  past  year.  This  present  force  needs  to  be  nearly  doubled.  It  also  needs  three-way  radio communication. Creation of Dept. of Public Safety Since this improvement is desperately needed, it just seems common sense to go one more step--enlarge the powers of these officers. I therefore recommend the establishment of a Department of Public Safety headed by a Commissioner. State Police If  such  a  department  is  created,  there  would  be  in  it  the  state  police,  a  small  motor  vehicle  unit,  detective force, fire marshal, and record section.  The cost of installing such a system in Vermont has been figured, and it will be very little more than will have to be expended for an enlarged and improved Motor Vehicle Department. In the Budget, which I will present, I have provided for State Police.  If such a plan is carried out, the sheriffs of course would continue to have enforcement duties as well as the authority to serve all civil process. State Police should have no  authority  to  serve  such  civil process. This State Police Force,  if garbed  in  a distinctive uniform and  if  traveling  in  a  distinctive  automobile  will  not  only  be  helpful  in  preventing  crime  and  in  protecting property damage in rural areas, but can be a great advertising medium for our State. AGRICULTURE Agriculture  is  the  very  foundation  of  our  State,  and  I  believe  more  Vermonters  are  directly  or  indirectly dependent  upon  it  for  their  well-being  than  on  any  other  activity.  Fortunately,  I  can  see  no  great  and  major problems  facing  us  as  regards  our  agriculture  and  I  congratulate  those  who  have  been  leaders  of  our  State Agriculture  that  this  appears  so.  We  shall  undoubtedly  have  to  increase  appropriations  for  our  excellent extension service so  that wages  for  these workers may be  increased. Likewise, additional appropriations should be  made  for  the  research  experimental  station,  as  it  appears  most  likely  that  Congress  will  appropriate considerable  funds,  funds  which  will  be  grant-in-aid  funds  to  be  expended  through  the  State  Experimental stations. Buildings for Agricultural College In  addition,  the  State  Agricultural  College  has  an  immediate  and  pressing  need  of  an  agricultural  science building,  a  combination  dairy  manufacturing  and  sales  plant,  and  a  home  economics  building.  I  am  sure  the construction  of  these  buildings would  place  our  State Agricultural College  on  a much more  efficient  basis  and result  in  much  long-range  good  for  the  Agriculture  of  our  State.  I  recommend  that  this  Legislature  give  this question its most serious consideration and provide for the immediate construction of these buildings. No fertile farm lands to be flooded I  have  been  greatly  disturbed  by  the  plans  that  have  been  put  forth  to  use  fertile  farm  lands  of Vermont  as flood  reservoirs  for  the  protection  of  our  sister  states  of  Connecticut  and  Massachusetts.  The  Federal Government  has  recommended  that  eleven  so-called  flood  control  dams  be  built  in  this  State.  Most  of  these dams will flood some of our fertile farm land. We do not have a great deal of fertile farm land in this State, and many  thousands  of  acres  of  fertile  farm  land  have  already  been  destroyed  by  flood,  mostly  for  hydro-electric purposes. Even  today we are having  trouble supplying  the Boston Milk market with milk. The  loss of  that milk market  to  this  State  would  be  very  damaging.  Every  time  an  acre  of  fertile  farm  land  is  destroyed,  either  for flood  control  or  hydro-electric  power  purposes,  so  many  pounds  of  Vermont  produced  milk  is  taken  from  the Boston milk market.  I  am  against  the  flooding  for  any  purpose whatsoever  of  another  single  acre  of  the  fertile farm land of this State. We should create an alternate plan of flood control consisting of dams built higher up in the  mountains  which  will  provide  a  measure  of  protection  for  our  sister  states.  If  this  is  found  to  be  more expensive,  the Congress  should  insist  that our  sister  states bear  this  additional  expense.  If  it were not  for  them, we ourselves would have no desire to have these flood control dams built. PUBLIC WELFARE Old Age Assistance—To be merged with Social Services of Public Welfare Dept. in Department of Social Service The Public Welfare Department has grown  to be a  tremendous agency.   It appears  to be more  than one man can  adequately  administer.  There  are  two  main  divisions  in  the  Public  Welfare  Department;  one  can  be designated as the Division of Social Service, the other as the Division of Institutions. In addition to the Welfare Department,  we  have  the  department  of  Old  Age  Assistance.  In  the  Old  Age  Assistance  Department  there  are many case workers who cover the same area as is covered by case workers of the Department of Public Welfare working  on  aid  for  crippled  children,  the  blind,  or  child  welfare.  The  case  loads  of  the  case  workers  of  both departments  are  extremely  heavy.  Common  sense  would  seem  to  call  for  a  joining  together  of  the  Old  Age Assistance  Department  and  the  Social  Services  now  under  the  Department  of  Public  Welfare.  I,  therefore, recommend  the  creation of  a Department of Social Service headed by  a  single director. This department would be  responsible  for  aid  for  dependent  children,  aid  for  the  blind,  old  age  assistance,  and  for  dealing  with  child welfare  services  including  the  grave  problem  of  committed  children.  It  would  include  all  social  services  now under the Public Welfare Department. Department of Institutions I also  recommend  the creation of a Department of  Institutions also under a  single director. This department would  be  charged  with  the  proper  administration,  management,  and  physical  upkeep  of  all  of  our  state institutions. Of all of our  state  institutions,  the one  that  is apparently  the most desperately  in need of additional facilities  is  the  Brandon  State  School.  I  recommend  that  this  Legislature,  after  careful  investigation,  provide everything  that  is necessary  that  there may be sufficient facilities for this institution to properly look after those it must.   More Stress on Family Life This State has a higher percentage of committed children than almost any other state. The family constitutes the fundamental unit of this country, just as a squad is the basic unit of any army. We must do all that we can in this  State  to  promote  family  life,  and  before  committing  any  child  to  the  custody  of  the  State  or  separating children  from  the  family  the need  for  such  action must  be  crystal  clear. Happy  family  life will  contribute more than any other single factor for good citizenship. I hope to see the number of children who are committed to the custody of this State cut down within the next two years, and the number of children in its custody reduced. Board of Public Welfare Eliminated If  we  create  these  two  new  departments  from  the  present  Department  of  Welfare  there  will  no  longer  be need  for  a  Board  of  Public Welfare.  The  present  Board  of  Public Welfare  has  worked  hard  and  earnestly,  and has  accomplished much  that  is  good.  Yet,  no  board  can  become  thoroughly  familiar  with  all  the  details  of  the social  services,  of  all  the  problems  of  institutions,  unless  it  devotes  nearly  all  of  its  time  to  public  welfare. Obviously no board can do that unless it’s paid a substantial salary. VETERANS Housing—State Rent Control Act Between  thirty  and  forty  thousand  young men  and women  of  this  State  have  now  returned  from  Service  in World War  II. Many  of  these Veterans  of World War  II  are  having  great  difficulty  in  securing places  in which to  live—a  place  where  there  is  a  roof  over  their  heads.  Others  are  having  difficulty  in  adjusting  themselves  to civilian  life.  It  is my hope  that  there will come a  realization by all of  the people of  the State  that  this Veterans’ problem is a citizens’ problem, the solution of which must have the full cooperation of all of our communities. I recommend  that  this  Legislature  make  an  immediate  and  careful  survey  of  the  housing  problem  of  this  State, particularly  as  it  affects  Veterans.  The  solution  of  this  housing  shortage  is  not  easy  of  accomplishment.  Yet  I hope  that  this  Legislature will  come  forward with  a  program  that will  demonstrate  to  those who  left  this  State and went  to war  that  the people of  this State will do  all  they  can  to  secure  adequate housing  facilities  for  those who,  because  they  went  into  the  Service,  now  find  themselves  homeless.  I  further  recommend  that  this Legislature adopt a State Rent Control Act of which we can avail ourselves if and when the situation requires it. Second Injury Fund Law--State Veterans Board I  recommend  further:  (1)  a  definite  formula  for  applying  Veterans’  preference  in  State  employment,  a preference  Legislative  action  has  already  granted;  (2)  enactment  of  a  second  injury  fund  law  which  would stimulate  the  interest of  employers  in hiring disabled Veterans;  (3)  amendment of  the Vermont Unemployment Compensation  Law  to  permit  payment  of  benefit  to  Veterans  before  exhaustion  of  Veteran  Readjustment allowance  benefits;  (4)  the  maintenance  of  a  strong  State  Veterans’  Board  adequately  staffed  with  sufficient funds to enable the director to provide for Veterans the maximum of service intended under the law. NATIONAL GUARD It  is  likewise  imperative  that  the State provide  every  encouragement  and help  it  can  in  the  formation of  the new National Guard combat  team  that has been allotted  to our State. The National Guard  is not only one of  the chief bulwarks of our country, but is a handy organization to have in time of turmoil and catastrophe in our own State.  Vermont  has  been  charged  with  the  duty  of  raising  a  combat  team  which  will  consist  of  a  regiment  of infantry,  a  fighter  squadron,  a  battalion  of  field  artillery,  truck  companies, medics,  and  engineers.  I  urge  every community  in  this  State  to  cooperate  to  its  fullest  extent  in  seeking  to  fill  out  the  ranks  of  this  new  National Guard organization. STATE GUARD Distinctive Emblem As one of those who served in the armed forces during World War II, I want to take this occasion to pay our respects  to  those men who gave all  their  time and effort  to create a State Guard within  the State while we were away. Just as we served our country, so they served you and us, and I hope this Legislature will authorize some little emblem that will serve as a marker of distinction for those who so loyally and sacrificially served with this Guard. DEPARTMENT OF INDUSTRIAL RELATIONS Increased Benefits Needed—Funds for Apprenticeship Council In this day of increased prices it appears that the workmen’s compensation benefits are inadequate both as to amount  and  duration  of  payments.  It  appears  that  there  should  be  an  increase  of  the  amounts  paid  and  a lengthening of the duration of the periods of payment. I recommend that when a worker is totally disabled for a period  of  four  weeks,  he  receive  compensation  beginning  with  the  first  day  of  disability;  that  an  illegally employed  child  not  only  be  covered  by  the  workmen’s  compensation  law  but  in  the  event  of  injury,  receives double  benefits;  that  the  numerical  exemption  be  lowered  to  three  employees;  that  death  benefits  be  increased and  that  the  permanent  partial  disability  payments  be  increased. And  I  further  recommend  that  this Legislature make  provision,  if  necessary,  for  funds  for  the  Vermont  apprenticeship  council  in  order  that  the  work  of supplying  our  State  industries with  properly  trained  personnel may  be  continued.  I  recommend  the  addition  of two factory inspectors for the Department of Industrial Relations and that a careful study be made of the need of covering occupational diseases by our Workmen’s Compensation Law. UNEMPLOYMENT COMPENSATION COMMISSION Employment and Unemployment problems co-equal There has been handed back  to  this State  the  administration of  the Employment Service. This  is part of  the Unemployment  Compensation  Commission  and  it  should  be  co-equal  with  that  part  dealing  with unemployment. Employment and unemployment are equal partners  in  this Commission. Just as  the Workmen’s Compensation Law needs close attention by this Legislature, so does our Unemployment Insurance Law. Broadening of Coverage I  recommend  the  broadening  of  Unemployment  Compensation  coverage  to  employers  of  four  or  more employees;  an  increase  in  the  present  weekly  benefit  amount  or  the  adoption  of  dependency  benefits supplementary  to  the  benefits  now  in  effect;  a  reduction  in  the  required  waiting  period;  modification  of  the provisions of  the act  relating  to unemployment of Veterans  to allow  the payment of benefits based upon wages earned  in  covered  employment  subsequent  to  discharge  from  Service;  and  a  change  in  the  definition  of availability  for  work  to  aid  those  unemployed  workers  who  become  ill  or  otherwise  disabled  following  their filing of initial claims. Employment Service Duty to Veterans The Employment Service must, of course,  see  to  it  that Veterans presently unemployed, either handicapped or  non-handicapped,  are  placed;  counsel  and  aid  in  readjusting  Veterans  when  placed,  and  help  them  acquire ever better positions, positions more suitable than ones they may now have. NEEDED PUBLIC BUILDINGS The following new buildings are needed by our State:  College of Agriculture (3 new buildings—estimated cost, $1,000,000)  State Library Building Annex ($600,000—rough estimate) State Office Building (Additional funds needed—$500,000 rough estimate)  State Institutions Building ($500,000 estimate) Total—$2,600,000 All  of  these  buildings  are  needed.  If  this  Legislature  decides  to  authorize  the  construction  of  them  and appropriate money for them, I recommend that such expenditures be treated as a capital investment, and, just as any  business  would  do,  I  recommend  that  we  bond  for  this  capital  investment.  This  State  has  built  firmly  and soundly  upon  the  established  policy,  “Pay  as  you  go,”  and  I  yield  to  no  one my  belief  in  the  soundness  of  this principle as a basic principle of conduct. Today  the State of Vermont can borrow money  for capital  investment for less than the hire of the money is worth. In other words, it seems good business to borrow it if we choose to make  these  capital  investments.  I  recommend  therefore  that  if  it  seems  wise  to  you  to  construct  these  needed buildings, that broad authority be given to the bonding of this State up to $2,600,000 or for such amount as you determine is the proper amount necessary for the construction of whatever buildings you authorize. War Memorial One  further  word.  If  you  decide  to  appropriate  money  for  a  new  State  office  building,  and  one  is  surely needed,  it  would  seem  that  provision  should  be  made  in  this  new  State  Office  Building  for  a  suitable  War Memorial—a  memorial  to  all  of  the  sons  and  daughters  of  Vermont  who  have  served  in  the  defense  of  our country.  It  may  be  that  an  impressive  rotunda  should  be  created  in  this  new  State  Office  Building  as  this memorial.    I merely bring  this  subject  forward  since  I  feel  this Legislature  should give  earnest  consideration  to what this State should have as a War Memorial. TRANSPORTATION Double Federal Funds Available for Highways if Matched Good  roads  are  of  fundamental  importance  to  our  State.  We  should  continue  to  hard-surface  all  of  our secondary roads and  to strive  towards  the goal of having at  least a good gravel  road  reach every  farmhouse. As you  know,  our  roads  are  largely  financed  from  three  sources—motor  vehicle  registrations,  gasoline  tax,  and federal  money.  The  new  Federal  Aid  Highway  Act  of  1944  has  doubled  the  amount  of  federal  money  which previously  was  available  to  Vermont.  The  increase  in  revenue  now  available  under  the  1944  Federal  Aid Highway  Act  will  require  the  State  to  match  $4,000,000  of  Federal  funds  in  the  next  biennial  instead  of $2,000,000 as in the past. Vermont cannot stand still—it must go ahead. The Highway Board has estimated that as of June 30, 1949,  this State will be short by $2,900,000 of  its ability  to match available Federal  funds which must be matched by  that  time  if under  the existing  law we are ever  to match  them. We cannot have  this  federal money unless we match it. Increase of Registration Fees I  recommend  that  there  be  a  small  increase  on  registration  fees  for  pleasure  cars;  that  the  maximum  gross load  limit  on  trucks  be  raised  to  50,000  pounds;  that  the  10  per  cent  tolerance  for  all  trucks  be  eliminated  and that there be a revision upward of truck registration fees. This, however, would raise but an estimated $900,000 and would  leave  us  faced with  the  necessity  of  raising  an  additional  $2,000,000  if we  are  to  take  advantage  of all possible Federal funds. I believe there are several ways of doing this. I recommend that it be done, leaving to your  judgment  the methods by which  it should be done. Such an expenditure would materially aid our highway system and particularly our farm-to-market roads. Aviation Aviation  also  has  much  promise  for  Vermont  in  the  future.  Vermont  is  being  made  more  accessible. However, airlines and private planes need more landing fields. We should encourage development of additional small  airports  by  private  capital.  It  behooves  municipalities  to  study  carefully  their  future  position  on  the  air map  and  not  fail  to  foresee  future  needs  for  airports.  Areas  in  the  interior  of  Vermont  that  are  suitable  for airports  should  be  located  and  earmarked.  The  time may  come when  the  State will  have  to  help municipalities on their air transportation problems even as it has had to help municipalities on highway problems. RURAL ELECTRIFICATION It appears  to me  that electric  rates  in  the State of Vermont as a whole are  too high. He who made  this earth in  making  Vermont  made  a  state  which  should  have  a  bountiful  supply  of  hydro-electric  power.  Such  we  do have; yet, our rates as compared to those of other states are in most instances, high. This is an age of electricity, an  age  where  farming,  industry  and  homemaking  rely  each  day  more  and  more  on  electricity.  I  recommend, therefore,  statutory  authority  for  our  Public  Service  Commission  to  initiate  investigations  on  its  own  account, and  assurance  that  this  commission  shall  have  an  adequate  technical  staff.  I  know  that  cheaper  electrical  rates will help us secure more small industries for our State. SALARIES Effective  the  first  of  January  this  year  there  went  into  effect  a  new  salary  scale  for  state  employees.  This salary scale was adopted after recommendations were made by professional consultants. Under this plan various state  positions  are  classified.  This  has  resulted,  as  it  should,  in  the  salaries  of  our  State  Employees  being substantially  increased.  This  will  result  in  certain  deputy  chiefs  of  departments  receiving  more  pay  than  the head of the department whose salary is fixed by statute. I therefore recommend a careful review and revision of the  salaries  paid  to  department  heads,  and  to  other  state  employees  and  officers  whose  salaries  are  fixed  by statute. TAXATION Elimination of Old Age Assistance Head Tax The Legislature of 1935 passed what is called an Old Age Assistance Tax. This tax is certainly misnamed. It is a head tax of $2.50 per person and becomes part of the poll tax levied in each town. In my opinion this tax is not  now  justifiable  and  I  recommend  that  it  be  abolished.  And  I  further  suggest  that  this  Legislature  carefully consider  the  wisdom  of  requiring  payment  of  the  poll  tax  as  a  requisite  for  a  right  to  vote  in  town  or  village meetings. This  tax  deters many  people  from  ever  exercising  their  right  to  vote. Yet  only  as  long  as  the  right  to vote is used by large numbers of people will this State and this country survive as a democracy. New Graduated Income Tax I have  left one of my most  important  recommendations  for  the  last.  I know  that you are wondering how we can pay for all of these things, for this tremendous sum that must be paid by the State to boost teachers’ salaries, for  these  mobile  health  units,  for  the  increased  wages  that  all  state  employees  are  to  receive,  and  for  State Police.  Yet  an  answer  to  all  this  is  relatively  simple.  It  has  been  apparent  for  many  years  that  our  income  tax law  was  inefficient  and  inequitable.  It  seems  improper  to  have  one  tax  on  earned  income  and  another  on unearned  income.  The  Commission  on  State  Government  and  Finance  has  recently  made  an  outstandingly excellent  report  in  which,  among  other  things,  it  recommends  a  graduated  income  tax.  With  this recommendation  I  am  in  most  hearty  accord.  Our  tax  structure  should  rest  on  a  firm  basis  with  these  four cornerstones: 1.  A  revenue  should  be  produced  sufficient  to  meet  the  present  and  anticipated  requisites  of Government, and provide a safety cushion against less prosperous periods. 2.  The  burden  of  taxation  should  be  distributed  as  equitably  as  is  possible.  As  stated  by  the Commission, the trend should be toward taxing earnings rather than possessions. 3. New enterprise should be encouraged by incentive tax methods. 4. The  tax  laws and accompanying  reports  should be  streamlined and  simplified. We must make it very easy for our taxpayers to comply with our rules. Individual Income Tax—Simplicity of Forms The cartoonist’s caricature of John Q. Taxpayer submerged beneath a flood of forms and calculations about March 15th of each year contains, unfortunately, a lot of very real truth. Let us extricate him from a large part of this  ordeal.  We  can  do  that  if  we  insure  that  his  efforts  to  comply  with  the  Federal  tax  law  shall  not  be duplicated in his reporting to our State. If we do this, we have a splendid opportunity to make the Vermont Tax System a model of simplicity and efficiency. For  the  most  part  our  present  tax  law  is  the  same  as  that  of  the  Federal  Government  but  streamlining  and simplification requires many changes. First, I recommend that our entire income computing method except as to taxation of interest on U. S. obligations, be amended to conform completely with the Federal Statute. At  the  same  time  that  we  use  the  Federal  Law  as  a  base,  we  should  institute  a  system  of  employers’ withholding  of  state  income  tax  on  salaries  and  wages.  The  slight  additional  record  keeping  by  employers  is overshadowed by the benefit to the majority of our taxpayers. There are great advantages in the collection at the source of this most important source of revenue. Under  this program  the vast majority of our  individual  taxpayers will need  to  file only a copy of  their State withholding receipt. That can be the basis on which the Tax Commissioner would compute the tax and issue an assessment  or  refund.  Similar  provision  may  be  made  for  those  individuals  not  subject  to  withholding.  They should be able to elect to use this optional method. Changes in our Present Law Adoption  of  the  pattern  of  the  Federal  Income  Tax  Law  would  change  our  present  law  in  some  material respects. Important changes would be: 1.  The  separate  classification  and  taxation  of  Class  A  and  Class  B  income,  which  is  generally agreed to be inequitable, would be abolished. That is recommended by the Commission. 2. Capital gains and losses allowed in the manner permitted by the Federal law would be taxed. 3.  The  present  allowance  as  a  deduction  from  net  income  of  Federal  income  tax  paid  would  be abolished.  Several  other  minor  adjustments  would  be  made.  They  are  relatively  unimportant. One  of  these—making  interest  from  Vermont  banks  no  longer  exempt—requires  a corresponding adjustment to the Bank Tax. 4.  The  credit  for  taxes  paid  by  residents  of  Vermont  to  other  states  would  be  abolished.  That provision  generally  did  not  aid  the  taxpayer.  It  merely  reduced  the  proportion  of  the individual’s  total  tax  that went  into  Vermont’s  Treasury.  The  whole method  of  handling  non-residents needs correction if we desire to play fair with our own residents. This should have our continued study. 5. The present personal exemption would be lowered from $1,000 to $500, while   the  credit  for each  dependent  would  be  increased  from  $250  to  $500.  Thus  a  married  person  with  two dependents would have an exemption of $2,000 instead of $2,500 at present.    One  effect  of  using  the  lowered  exemption  would  be  to  bring  within  the  scope  of  the  tax  many individuals presently not participating; especially should this be so if the head tax is eliminated. It has long been felt  that broadening  the  income  tax  law  to  include  the maximum number of  its  citizens would  contribute  to  the welfare  of  the  State.  Tax  filing  citizens  are  more  prone  to  take  an  active  interest,  and  participate,  in  public affairs. At  the  same  time  additional  revenue will be  secured. However,  it  is not desired nor desirable  to unduly burden those with small incomes. Proposed Rate Schedule Consequently,  I  propose  that  the  rates  of  the  individual  income  tax  begin  at  1%  on  the  first  $1,000  of income after all exemptions, and be graduated as follows: 1%  on  the    first  $1,000 of taxable income “ “ “  next  $2,000  “ 2%  “ “ “ “ 3%  “ “  .   $2,000  “ 4%  “  all above  $5,000  “ “ “  While  at  first  blush  one  would  think  that  this  increases  the  tax  burden  of  the  average  man,  such  is  not  the fact.  There will  be  a  very  few  income  tax  payers with  net  earnings  of  up  to  $5,000  per  year whose  tax will  be increased. Many of this class will be decreased. I call your attention to a table showing the comparative tax paid under  existing  law  and  under  this  recommended  law.  This  table  is  an  appendix  to  this  printed  message.  It  is estimated that the adoption of this program would result in additional revenue of $2,000,000 at least, biennially. Corporate Franchise Tax I consider the present rate of tax on corporations to be too low. It is far out of line with that of other states. I recommend  that the rate of tax be increased  to 4 per cent, and  that  there be a minimum  tax of $25. The date for filing of corporate returns should be extended an additional two months. I further recommend that the Corporate License tax be abolished. I also propose great simplification in the forms and paper work in the corporation tax. I  think  we  can  cut  the  filing  requirements  from  the  present  onerous  task  to  a  small  fraction.  I  do  not  think legislation is essential to permit that. This would result in additional revenue of $1,000,000 biennially. Unincorporated Business Tax I  recommend  to  this  Legislature  serious  consideration  of  the  adoption  of  an  Unincorporated  Business  Tax based  on  the  earnings  from  business  carried  on  in  this  state  by  associations  of  2  or  more  persons,  joint enterprises and partnerships which would be  taxable  if carried on by a corporation. A  large part of  the business activities carried on in Vermont is conducted by such unincorporated businesses both resident and non-resident, which  receive  the  benefits  and  protection  afforded  by  the  State,  but  which  do  not  in  turn  contribute  to  the General Fund. There is no valid reason for completely exempting such business earnings from their fair share of the  total  burden  of  taxation.  There  are  many  such  unincorporated  businesses  which  carry  on  activities  in Vermont  far  in  excess  of  that  carried  on  by  many  corporations.  The  owners  of  one  withdraw  their  share  of earnings  as  salaries  or  profits,  while  stockholders  withdraw  earnings  as  dividends.    In  reality  the  distinction  is artificial,  and  equity  demands  parity.  If  the  general  trend  today  is  to  make  earnings  the  source  of  revenue, exemption of one and taxation of the other form of enterprise is anomalous. Aid to Small Business To protect the small enterprise, I recommend that there be a specific exemption of $3,000, plus an allowance for  services  of  $3,000  for  each  partner,  or  proprietor,  or  20  per  cent  of  net  income,  whichever  is  smaller.  I believe  the  rate  of  tax  should  be  3  per  cent  on  business  earnings  after  the  exemption,  and  there  should  be provision  for  apportionment  for  business  carried  on  beyond  our  borders.  The  unincorporated  business  should also have the advantages of the incentive tax program discussed below. In  this  tax,  too,  I  propose  great  simplification  of  forms  used  for  filing.  I  think  we  can  reduce  the  task  to  a few minutes’ work after a business has completed its Federal returns. It is estimated that this tax would produce a revenue of over $400,000 biennially. Will Balance Budget If these amendments to the present income tax law are adopted, our budget will be amply balanced. Tax Incentive Plan I, like all who read it, was deeply disturbed by the warning implicit in the Finance Commission’s report that “Since  1840 Vermont has been  losing  a  large number of  ambitious,  resourceful,  and  energetic young people  to other  sections  of  the  U.S.,”  and  that  our  young  people  in  their  formative  years  are  imbued  with  the  slogan “Vermont is a poor State.” Need to Keep Youth in Vermont This  problem,  in  all  its  ramifications,  should  be  thoroughly  studied  by  this  Legislature.  Decisive  action should  be  taken  to  check  this  flow  of  our  life-blood,  and  indeed  to  make  Vermont  a  fountain  head  of opportunity. Long Range Program of Encouragement I  have  been  thinking  in  terms  of  a  long-range  program  of  encouragement  of  the  growth  of  industry  and enterprise  indigenous  to our State. We ought  to attract  the proper  type of companies and businesses  to domicile here. New business cannot be fostered by compulsion but may be engendered through providing a fertile soil for reaping a  rich harvest of earnings. One of  the ways  to accomplish  the objective  is  to offer an  incentive  through tax reduction or exemption over a period of years to newly established businesses. The amount of the reduction could depend on a combination of factors such as the volume of business, the size of the payroll, the number of man hours, and similar criteria. The  loss of  revenue,  if any, by  such a plan  is  secondary  to  the benefits  inherent  in optimum production and employment. With  profound  foresight  the  drafters  of  our  constitution  admonished  that  “prior  to  any  law  being made  to  raise  a  tax,  the  purpose  for which  it  is  to  be  raised  ought  to  appear  evident  to  the  Legislature  to  be  of more service to the community than the money would be if not collected.” Inheritance Tax The basic Vermont  tax on  the  transmission of property at death  is measured by  the share of  the estate going to  each  particular  beneficiary.  It  varies  according  to  the  relationship  of  the  beneficiary  to  the  decedent.  Such  a tax  produces  a  more  just  result  than  the  estate  tax  employed  by  the  Federal  Government  and  several  states levied  on  the  net  estate  without  regard  to  the  relationship  of  the  beneficiary  or  the  share  received.  While  the latter type of tax is more readily determined and collected, in this instance simplicity should yield to equity. The basic  structure  of  our  inheritance  tax  should  be  retained.  But  the  law  should  be  examined  to  assure  that  no revenue  rightfully  accruing  to  Vermont  escapes  the  tax.  The  law,  I  think  is  good.  But  I  am  disturbed  by  our administrative and reporting methods. I think they produce great waste of effort and funds. My  only  recommendation  at  this  time  is  that  the  administration  as  well  as  the  collection  of  the  tax  be centralized in the Tax Department. CONCLUSION In  a  world  that  has  changed  more  in  the  last  five  years  than  in  the  previous  twenty-five,  more  in  the  last generation  than  in  the  last  five generations,  it now behooves us  to  show  that we  can  cope with  this  change  and not be beaten by it. No  one  of  us  can  plot  the  future,  but  you  and  I  do  have  a  choice  of  the manner  in  which  we  approach  the future. We  can  approach  it  with  fear,  timidity,  and  pessimism,  or  we  can  tackle  it  with  confidence,  hope,  and courage, and I prefer the latter course. I  see  in  the  future  a  Vermont  pouring  forth  from  our  schools  boys  and  girls,  alert,  keen,  and  alive  to  the problem  of  this  State,  of  this  nation,  and  of  this  world;  youngsters  whose  minds  have  been  stimulated  and trained in the ways of thinking. I  see  a Vermont where  those  youngsters  that  pour  forth  from  these  schools will  be  physically  and mentally sound, ready to become the heads of happy families. I  see  a  Vermont  which  has  a  small  industry  in  every  small  community,  an  industry  that  will  contribute towards keeping these youngsters in this State, that will contribute to the general welfare of all the people of our State. I  see  a  Vermont  whose  rivers  and  valleys  and  lakes  are  crystal  clear  and  pure,  whose  beautiful  green mountains are a lure to happy people, there for them to relax in summer or winter. I see a Vermont of larger and more efficient farms whose owners shall earn from these farms their fair share of our total income. I  see  a Vermont where our  labor  is  free; where  there  is  peace  in  the  ranks  of  labor  and  of  employer; where the dignity and security of the working man and woman shall always be respected and protected. I see a Vermont whose  institutions for  the mentally sick,  the feeble minded, and  the  law-breakers shall ever be entertaining lower population. APPENDIX—COMPARATIVE TABLE SHOWING PRESENT TAX ON EARNED INCOME AND PROPOSED GRADUATED TAX ON ALL PERSONAL INCOME    Single Person  Married Couple  Married Couple and 1 Child  Married Couple and 2 Children $2000 Present Law Recommend Law $3000 Present Law Recommend Law $4000 Present Law Recommend Law $1000 Present Law Recommend Law     $0. $0. $0. $0. 5. *more by $2.50 0. 0. 0.     20 0. 0. 0. 20. *less by $2.50 10. *more by $5.00 5.* even 0     40. 20. 15. 10. 40.*less by $2.50 30.*more by $5.00 20.*even 10. *less by $5     60. 40. 35. 30. 65. *more by $2.50  50.*more by $5.00 40. *even 30. *less by $5     80. 60. 55. 50. 95.*more by $12.50 80.*more by $15.00 65.*more by $5.00 50. *less by $5      *Old Age Assistance: Single Person $2.50, Married Couple $5.00. Head Tax eliminated. No separate tax on unearned or Class B income. Estimated additional revenue from proposed graduated tax $2,000,000 for biennium. $5000 Present Law Recommend Law  Best of all, I see a Vermont of large and happy families. By  serving  Vermont  with  the  best  of  our  ability,  with  open  minds,  with  open  hearts,  with  courageous action,  we  can  best  serve  a  nation  which  must  find  its  place  in  the  new  family  of  nations.  Under  God  and sustained  by  the  faith  of  Him  who  pledged  His  life  for  the  betterment  of  His  fellow  men,  we,  the  chosen representatives  of  our  people,  will  strive  to  fulfill  our  duties.  This  is  our  challenge,  and  guided  by  Him  who created us, we shall meet it confidently.