Inaugural address of  George D. Aiken   As it appears in the  Journal  of the  JOINT ASSEMBLY  BIENNIAL SESSION  1939  Thursday, January 5, 1939. Inaugural Address  To the General Assembly and people of Vermont: Speaking  to  you  today  I  am  in  reality  making  two  addresses.  First,  as  retiring  Governor  I  should  give  an account  of  the  state  administration  of  the  last  two  years.  As  incoming  Governor,  it  is  my  duty  to  make recommendations for your consideration. I shall spend little time in looking backward. For  two  years  I  have  attempted  to  conduct  the  work  of  the  Executive  Office  in  a  manner  consistent  with Vermont tradition. At  the beginning of my administration  in  January, 1937  I announced  that  I would conduct  the affairs of  the state openly  so  that  the people might be constantly  informed of what  is going on  in  their government.  I believe the people of Vermont are as well  informed concerning  the affairs of  their government as are  the people of any state. I  also  announced  at  that  time  that  I  would  not  interfere  in  the  selection  of  employees  of  the  different departments  or  attempt  to  dictate  in  detail  the  manner  in  which  departmental  work  should  be  conducted.  This placed responsibility for the work directly upon the head of each department. I mean to continue this policy. I do not claim that the work of our state departments is perfect. In fact I know it is not, that weaknesses exist and  that  there  will  continue  to  be  weaknesses.  But  they  are  being  corrected  as  rapidly  as  we  can  do  so. Cooperation  of  the departments with  the Executive Office has been  excellent  at  all  times. This  cooperation has also been extended by most of the people of our state. I have  from  time  to  time appointed committees  some official and  some unofficial,  to assist me  in my work. Many  of  these  people  have  been  put  to much  expense  in  order  to  serve  the  state.  I have  appreciated  their work more than I can adequately express. I  suppose  we  ought  not  to  think  of  progress  in  terms  of  money.  Yet  these  are  the  terms  which  everyone seems  to  understand.  During  the  last  two  years  the  net  obligations  of  the  state  have  been  reduced  by approximately  one  and  one-half  million  dollars.  This  is  in  spite  of  the  fact  that  one-half  million  dollars authorized by the Legislature of 1937 has been expended in improving buildings; grounds and equipment of our state institutions. Before making  any  definite  recommendations  to  you,  I  wish  to  speak  briefly  of  the  work  of  several  of  the state departments. The  banking  situation  in  Vermont  has  been  unsatisfactory  for  many  years,  but  I  believe  it  has  constantly improved under the able supervision of the present Commissioner of Banking and Insurance. A general revision of  the  banking  laws  is  advisable.  However,  we  cannot  act  intelligently  in  this  direction  until  study  has  been made and adequate information is available on the subject. It may be that you will see fit to authorize a study of the situation by an interim committee which will report to the Legislature of 1941. The  Department  of  Education  has  endeavored  to  constantly  improve  the  standard  of  Vermont  schools  and has  given  continuous  attention  to  the  improving  of  teacher  training  facilities.  Progress  has  been  made particularly  in  the  fields  of  health,  in  safety  education,  and  in  vocational  and  educational  guidance  in  the  high schools in order that the students may have a better opportunity to choose their life work wisely. I believe that curriculum offerings should be further broadened so that more courses definitely related to the students’  probable  life  work  will  be  offered.  Rehabilitation  service  for  the  handicapped  has  proven  of  much value in establishing them as useful self-sustaining citizens. The Highway Department, which  has  one  of  the  biggest  jobs  of  the  state,  has  conducted  its  affairs with  its usual  efficiency. During  the  biennial  period  ending  June  30,  1938, we  have  added  approximately  one  hundred and  forty  miles  of  hard  surfaced  road,  all  paid  for.  Because  of  the  hurricane  of  September,  1938,  this  year’s program has been necessarily curtailed. Through cooperation of  town,  state and  federal governments,  the  five million dollar storm  loss  to highways will  be  repaired. While we may  have  to  curtail  our  program  of  permanent  construction  on  all  types  of  road  by approximately one-half  this year, yet  I believe  it will be unnecessary  as well  as unwise  to  incur  further bonded indebtedness because of  the September storm. New construction  in  those areas not affected by  the  flood should go forward as planned previous to the storm. The  Liquor  Control  Board  has  been  concerned  with  law  enforcement,  a  business-like  administration  and promotion of temperance through educational work. The work of this Board has been well done. The  Motor  Vehicle  Department  also  maintains  a  high  degree  of  efficiency  and  has  won  the  respect  and commendation of people from other states as well as our own. The  Planning  Board  has  devoted  its  intelligent  efforts  mainly  to  a  travel  survey  and  a  survey  of  the  water resources of the Connecticut River Basin. The Department  of  Public Health was  given  new  duties  by  the  1937  Legislature  in  being  charged with  the inspection and certification of all places in the state where food is served. This work has been well handled and has resulted in increased safety for the traveling public. The State Library Commission has greatly expanded  its beneficial work particularly  in  the smaller  towns of the state as a result of an increased appropriation in 1937. Our  Unemployment  Compensation  Commission,  with  which  the  Employment  Bureau  is  now  coordinated, has been administered in a common sense manner and has won the praise of Federal officials. Benefit payments have  been  made  as  fast  as  certified.  I  am  advised  that  some  revision  of  the  law  would  make  the  work  of  this commission less costly, its functions better understood and its operations still more efficient. Rural  electrification  has  gone  forward  rapidly  in  Vermont.  Several  hundred  miles  of  new  rural  line  have been built by private utilities in accordance with an agreement reached with the agricultural organizations of the state.  In  addition  to  this,  a  cooperative  line  is  being  constructed  to  serve  several  communities  in  northern Vermont. Vermonters may well be proud of our military units. The Vermont National Guard has attained a very high rating and will rank with the best of similar units in any state. The  1937  Legislature  authorized  the  participation  of  our  state  in  the  New  York  Worlds  Fair  in  1939  and made an appropriation of twenty-five thousand dollars to cover the costs.  A committee which was appointed in accordance with  this  legislative  authority  has  decided  to  unite with  four other New England  states  in making  a joint exhibit.  Plans are well advanced in this direction. The  Public  Works  Board  has  had  the  difficult  task  of  representing  the  state’s  interest  in  flood  control operations  in  the Winooski River Valley. As  a  result of  its experiences,  I  strongly  recommend  that  if  any more so-called  flood  control  dams  are  constructed  in  Vermont  where  power  development  is  deemed  likely  or profitable,  that  the  title  to  such  dams  should  be  held  by  the  public  for  the  benefit  of  all  our  people.  No  more entangling alliances with private utilities companies should be made. Let us now consider a few specific problems that are ahead of us, AGRICULTURE More Vermonters are directly or indirectly dependent upon agriculture for their well being than on any other activity. While  it  is  true  that  to  a  great  degree we  are  dependent  upon  national  and  international  prices  of  farm produce  for  our  prosperity,  yet  we  should  spare  no  efforts  to  help  ourselves  and  to  improve  agricultural conditions within the state to the best of our ability. All  dairy  products  shipped  out  of  Vermont  are  required  to  be  produced  in  dairies  which  meet  certain standards of healthful and clean conditions.  I believe  that we should expect all products  sold within  the  state  to be equally clean and healthful and recommend the enactment of such legislation as will tend to bring this about. The  Dairy  Investigating  Committee  authorized  by  the  Legislature  of  1937  performed  valuable  work  and reported interesting and instructive facts concerning the dairy business in Vermont. The  members  recommended  the  appointment  of  a  subsequent  committee  to  devise  ways  and  means  of profiting from the facts that had been found. I  appointed  such  a  committee  consisting  of  eight members who,  like  the  first  committee, worked  earnestly without  pay  or  without  any  expense  to  the  state  and  which  has  submitted  valuable  recommendations  to  me which will be transmitted to you later. You will  likely  be  called  upon  to  consider  the  problem  of Bangs Disease  among  our  cattle. The market  for Vermont  cattle has been  seriously  crippled by quarantines of other  states  against untested  cattle  from our  state. As a result exports are far below normal. The situation is undoubtedly critical.   Should you decide to make an appropriation in order to further the control and eradication of Bangs Disease, I recommend that the amount be rather modest and that testing be voluntary and not on a compulsory basis. The state  is  in  no  position  at  this  time  to  finance  heavily  an  immediate  program  of  eradication,  and  many  farmers cannot readily prepare them for the losses which will be inevitable. Relatively,  the  agricultural  situation  in  Vermont  is  favorable  in  comparison  to  that  of  other  states.    This situation  is  due  in  a  large  measure  to  the  extent  to  which  cooperative  activities  have  been  undertaken  by  our farmers and other groups as well. Cooperatives  of  all  kinds  in  Vermont  are  doing  business  amounting  to  over  forty  million  dollars  annually, and over  seventeen million dollars of  this  is done by marketing  as  associations. Under our  statutes, however,  it is possible to effect an organization which may be cooperative in name only. I  would  recommend  first  that  we  standardize  our  legislation  under  which  cooperatives  are  organized.  Secondly,  that  an  annual  financial  report  be  required  from  each  cooperative,  such  report  to  be  made  to  a  state department authorized to receive the same. Third, that the state be authorized to make, when requested, an audit of any cooperative organization the expense to be paid by such organization. It  has  been  found  that  Vermont  agriculture  is  too  much  dependent  on  a  single  product,  fluid  milk.    Any encouragement which this Legislature can lend to a program of diversification will be beneficial. INDUSTRIAL RELATIONS Our Department  of  Industries  as  now  constituted  is  a  division  of  the  Public  Service Commission. We  have no  Department  of  Labor.    Neither  is  our  Department  of  Industries  what  its  name  implies.    It  is,  in  effect,  a workmen’s compensation court which also has charge of a sadly inadequate factory inspection service. It is my opinion that the work of this department is of sufficient importance to warrant its being reorganized as  a  Department  of  Industrial  Relations,  having  in  its  charge  such  legislation  as  effects  Industrial  Relations, including, of course the welfare of the laboring people of the state. I have the following specific suggestions. The staff today is inadequate to enforce already existing laws, and an adequate number of factory and health inspectors  is  needed.    Provision  should  also  be  made  to  enable  this  department  to  cooperate  with  the  federal government  in  the  enforcement  of  the Wage-Hour Laws. By  doing  this  it  should,  be  possible  to  share,  the  cost of the inspection services. Labor should be represented in the management of this department. The laws relating to arbitration should be improved and strengthened. We have for many years promoted and assisted agriculture by our Department of Agriculture. It is now time that  we  expand  the  scope  of  our  Department  of  Industries  and  create  a  Department  of  Industrial  Relations  to promote and assist our Industries and the hitherto insufficiently recognized interests of those who work therein.  TRANSPORTATION Transportation is a vital problem to the people of any state, and Vermont is no exception. Changing methods have  created  a  critical  situation  in  our  economic  life.  Thirty  percent  of  the  railroads  of  the  country  are  now  in the  hands  of  the  courts.  Here  in  Vermont  the  Rutland  Railroad  presents  a  most  acute  problem  and  we  are informed  that  the  fate  of  the  line  is  hanging  in  the  balance.  It  has  been  publicly  stated  that  operations  on  this road can be continued only by greatly curtailing expenses. The  question  of  wages  cannot  immediately  concern  this  legislature  because  federal  laws  provide  the  only means for handling the wage question. We can only hope that this matter may be settled with fairness to all. A reduction in taxes has been requested.  In view of the decreased earning power of the railroads of the state I  approve  the  action  of  the  Tax  Commissioner  in  making  what  appears  to  be  a  reasonable  reduction  in  their appraisal value. Because of  the  importance of  the Rutland  road  to  the people of western  and  southern Vermont,  it may well be  that  you  will  find  special  assistance  to  this  road  advisable.  A  study  has  been  made  of  the  situation  by  an expert consultant, and you will have the benefit of his findings. I  trust  that  your  actions  in  this  matter  will  not  be  taken  hastily  and  without  the  knowledge  of  all  facts concerning this situation. In my  judgment an  independent audit of  the  railroad’s finances should be made before  final action  is  taken. If  then,  the  situation  is  found  to  be  as  critical  as  represented,  I  recommend  that  the  state  in  some  way  further reduce the tax burden on this road temporarily, as its contribution to the rehabilitation of the road. The  Rutland  Railroad  should  not  be  saved  solely  at  the  expense  of  the  taxpayers  of  Vermont  or  the employees of  the  road. The owners of  the  road should stand  their part of  the burden as well.  In  the  light of past experiences,  I  am  opposed  to  a  direct  loan  to  any  railroad  and  believe  we  should  avoid  any  program  which promises a continued drain on the state treasury. We  should  consider  the  transportation  problem  as  a  whole,  realizing  that  agriculture  and  industry  in Vermont  compete with  similar  lines  of  activity  in  other  states  and  should  not  be  placed  at  any  disadvantage  in this  respect.  We  should  use  careful  judgment  in  encouraging  progress  in  transportation  methods  and  support present methods within our means and within reason. AIR TRANSPORTATION Aviation  should  not  be  neglected  in  a  consideration  of  transportation  methods.  Northern  Vermont  in particular would profit by a more rapid means of travel to and front the great centers of population and the west. Vermont  should  lend  encouragement  to  the  promotion  of  air  transportation  for  the  time  will  come  when thousands of new families will be living in northern Vermont to enjoy all the comforts now associated with city life  and  in  addition  those  advantages  which  only  living  among  the  hills  can  give  them.  More  adequate  air service will hasten this day. STATE OFFICE BUILDING The business of the state has grown to such an extent that office space available is totally inadequate to meet our needs. Departments and divisions of departments are scattered all over Montpelier and even  in other  towns.  Large  sums  are  being  expended  for  rent  each  year.  The  business  of  the  state  cannot  be  conducted  with  full efficiency when a map or guide book is needed to locate the different divisions of a department. I  recommend  that  this assembly give due consideration  to  the necessity of providing adequate space  for our state departments.  Construction of a new building would doubtless mean that for one year we would not reduce our net obligations. But I believe that an expenditure which might amount to several hundred thousand dollars is warranted and that permanent benefits would result.   MERIT SYSTEM FOR STATE EMPLOYEES The efficiency of our state employees as a whole is high and they are not overpaid. At present the Governor is required to approve the personnel and the salaries paid employees of the various state departments. I do not believe the Governor should be required to pass upon the qualifications of each new employee. This should  be  done  by  an  independent  board.  During  my  administration  I  have  insisted  upon  each  department head’s selecting his own employees and being responsible for the work they do. I believe it possible to establish a standard of requirements and qualifications for the different jobs. I suggest that  this  legislature  authorize  the  selection  of  a  committee  to  study  the  present  situation  and  to  recommend,  if they find it feasible to put such a system into effect, how this may be done.  This  commission  should  report  back  to  this  session  of  the  legislature,  as  its  findings  might  conceivably effect the appropriations for the various departments. I  think  it  possible  to  devise  a  plan  which,  by  its  insistence  on  qualified  personnel,  will  guarantee  the efficiency  of  our  state  government  and  remove  the  appointment  of  emp1oyees  from  politics  as  far  as  possible. Partisanship,  political  pay-off  and  favoritism  have  no  place  in  sound  government.  Evidence  of  the  disastrous effects of these methods may be found in any daily newspaper. FINANCE COMMISSION For many  years Vermont  has maintained  a Department of Finance under which  the Tax Commissioner,  the Commissioner of Banking and  the Purchasing Agent have operated. The Governor has had  the option of acting as Commissioner of Finance himself. For the last two years, I have exercised this option. I have come to the conclusion that the state might well abolish the Department of Finance, leaving the heads of  the  three  divisions  under  it  responsible  directly  to  the  Governor.  The  pre-auditing  duties  of  the  Deputy Commissioner  of  Finance  might  then  be  transferred  to  the  Auditor’s  Office  along  with  the  appropriation necessary  to  permit  the Auditor  to  perform  his  duties which would  necessarily  increase.  I  believe  such  a move would promote efficiency in the handling of the state’s financial affairs.  TAXATION I believe it is my duty to inform you that the present methods of taxation may not be adequate for the future. A constant  shrinkage of  revenue  from certain erstwhile profitable  sources may necessitate  still  further changes. It  is  not  inconceivable  that  the  revenue  for  the  year  ending  next  June  30th  will  be  several  hundred  thousand dollars less than for the preceding year.  This  loss of revenue from  these sources may continue indefinitely and should be taken  into consideration  in making  appropriations.  I  feel  that  this  legislature  will,  as  other  legislatures  have  done,  find  a  way  to meet  this situation. Tax money collected and well spent is doing for us all cooperatively those things which we could not afford to do as individuals or groups. When tax money is wasted the people who pay it have a very proper complaint. BUDGET For over a century and a half, Vermont has  lived within her means. We  should not depart  from  that custom now.  Demands  for  services  of  all  kinds  are  constantly  increasing.  Taxpayers  consistently  protest.  Before  this legislature adjourns, I expect it will make provision for paying all current expenses for the next two years. WORTHY DEBTOR LAW In  1933,  Vermont  enacted  a  law  giving  small  business  men,  farmers  and  other  individuals  the  right  to temporary  receivership  such  as  is  enjoyed  by  banks,  railroads  and  other  corporations.  This  law  has  been continued by each succeeding legislature for a two year period. It has proved its worth, and I recommend that it become a part of our permanent statutes.  RECREATION The  recreational  industry  is  of  constantly  growing  importance  to  the  people  of  our  state.  This  industry should  he  given  all  proper  encouragement.  As  far  as  legislation  can  effect  it,  our  landscapes  and  scenic attractions should be preserved. Our  acquisitions  of  public  lands  should  be  within  reason,  with  care  being  taken  not  to  incur  a  permanent expense  unwarranted  by  the  benefits  received  by  our  citizens. Whenever  additions  are  made  to  state  property, we assume a permanent expense for upkeep, such as roads, maintenance of picnic grounds and taxes to towns. Private  industry  pays  the  expenses  of  government,  and  should  not  be  unduly  burdened  in  this  respect. However, there are certain areas such as in the Smugglers’ Notch and Willoughby Lake regions which ought to be under state ownership as soon as means permit. NATURAL RESOURCES It  has  come  to my  attention  that  certain  natural  resources  of  the  state  are  not  now  under  the  jurisdiction  of any department of our state government unless it be the Executive Department.  And I would recommend to you that the jurisdiction, management and control over all public natural resources and particularly those which may be  affected  by  the  development  of  electric  energy  be  given  to  the  Board  of  Conservation  and  Development  or such  other  state  agency  as  you  may  deem  proper.  There  should  be  excepted,  of  course,  all  such  as  are specifically placed under the control of other state agencies. I have also learned that there are cases of stream erosion substantially affecting the public interest and which no  state  agency  has  authority  to  remedy.  I  believe  that  the  necessary  authority  should  be  given  to  the Board  of Conservation and Development, together with a modest appropriation to carry out the work. PUBLIC WELFARE SERVICES The importance of public welfare services has grown far beyond the imagination of a few years past. Public consciousness  demands  public  effort  to  provide  opportunity,  to  promote  security  and  to  prevent  suffering.  The demand  for  these  things  has  far  outstretched  the  taxpayers'  capacity  to  pay.    Particular  emphasis  is  placed  on affording equal opportunity to youth and an equal measure of security for old age. Vermont is cooperating with all federal agencies in an effort to meet these demands. Child  welfare  services  are  now  given  largely  to  two  special  classes.  First,  to  those  children  who  are  taken from  their homes and committed by  the courts  to  the custody of  the state. One-half of  the expense of caring  for these  children  is  borne  by  the  state  and  one-half  by  the  town  from  which  they  are  committed.  The  federal government does not share in this expense. Then  there are  the children whose mothers are assisted  in caring  for  them  in  their own homes. One-third of this expense is borne by the federal government, one-sixth by the state and one-half by the towns. For  some  reason Vermont  has  an  exceptionally  high  percentage  of  committed  children with  approximately nine  hundred  entrusted  to  the  state’s  care.  Our  percentage  is  far  above  the  average  for  the  United  States,  it appears  to  me  that  it  would  be  not  only  more  humane  but  also  better  business  to  increase  the  assistance  to children in the homes of their parents or relatives and at the same time reduce the number of state wards. I  think  that  we  should  change  our  law  so  that  the  federal  government,  the  state  and  the  towns  will  share equally in the cost of aiding dependent children in their homes. There would then be less tendency to take these youngsters from their homes and commit them to the care of the state. There are now so many children under public supervision that our staff of workers is unable to reinvestigate cases  as  often  as  should  be  done.  I  believe  that  if  an  adequate  staff  were  provided  that  not  the  children themselves would receive better attention, but that the state would be relieved of the care of a sufficient number to make it worth while financially. The  Old  Age  Assistance  Department  has  been  operating  as  efficiently  as  possible  with  funds  at  its command. But you do not need to be told that these funds are inadequate to meet reasonable demands and need for  old  age  assistance. We  could  not  foresee  two  years  ago  the  tremendous  increase  in  this  need. But  it  is  also true  that  this assistance can he carried on so far as  to place an unbearable burden on the shoulders of  those who must support it. I recommend that this legislature give grave consideration to increasing the appropriation to this department to such an extent as is warranted by the needs of the beneficiaries and the ability of the state to support it. It is my opinion that our welfare work could be handled more efficiently by consolidating the case work for the  blind,  the  aged  and  the  dependent  children  now  being  carried  on  by  the  Welfare  Department  and  the  Old Age  Assistance  Department.  If  this  were  done,  it  would  reduce  the  area  covered  by  each  worker  so  that  more frequent attention could be given each recipient of assistance.   PUBLIC HEALTH A  subject  of  nation-wide  discussion  today  is  that  of  health  insurance  and  hospital  insurance.  Hospital insurance began  in Vermont, and we  the people of  the  state  recognize  full well  that  the health of our neighbors as well as of our own family is of vital importance to us. We recognize that many people who should be getting medical care or hospitalization are not now receiving it.  It  is  also  an  accepted  fact  that  much  improvement  could  be  brought  about  through  cooperative  efforts  by communities or possibly on a state wide basis. There  may  be  federal  legislation  concerning  health  insurance.  Vermont  wants  no  part  in  any  plan  which would  permit  political  selection  of  doctors  or  the  direction  of  their  activities  by  the  government. But we  ought to be  ready  to cooperate either among ourselves, with  the people of other states or with  the  federal government on any plan providing for cooperative and voluntary efforts to promote better health among our citizens. Hospitals, doctors and laymen in Vermont are all working toward this end. It may be that some plan will be devised  before  this  legislature  adjourns  that  will  appear  practicable  and  will  permit  the  broadening  of  our present sporadic efforts to a statewide basis. If such a plan is devised and legislation appears necessary to make it effective, I hope such legislation will be enacted. RELATIONS WITH OUR NEIGHBORS Friendly relations with one’s neighbors go far toward promoting prosperity and welfare. During the last two years our relations with neighboring states and with the Province of Quebec have been of a most cordial nature. I believe  this has resulted  in mutual benefits received with an  increase  in business activity and  the sustaining of public moral so necessary in these times of world wide adversity. We  have  also  cooperated  freely  with  the  federal  government  in  most  matters  and  have  found  federal officials  generally  courteous,  earnest  in  their  work,  and  desirous  of  cooperating  with  us.    With  the  desire  of certain federal officials to remodel the lives and direct the ways of our people, we have felt obliged to disagree. Nor  has  our  state  administration  felt  that  it  could  recognize  the  claim  of  the  federal  government  to  take  for itself  the  resources  belonging  to  the  people  of  our  state  without  our  consent  and  without  making  a  just recompense.  I intend to maintain this stand during the next two years. It is my earnest hope that we will continue to maintain and improve our friendly and neighborly relationship with the Dominion of Canada, our neighboring states and with the federal government. But I believe Vermonters are still able to govern themselves and that we should be ready at all times to stand shoulder to shoulder with our neighboring states, or alone, if necessary, in resisting any attempts to take from us the  right  of  self  government  or  to  put  upon  us  any  form  of  oppression  whether  that  oppression  comes  from within or without our national borders.