Inaugural address of  George H. Prouty  As it appears in the  Journal  of the  JOINT ASSEMBLY  BIENNIAL SESSION  1908 Thursday, October 8, 1908 Inaugural Message Gentlemen of the Senate and House of Representatives: You  are  convened  here  today  according  to  the  constitution  of  this  state  and  for  the  performance  of  a  most important  duty—to  enact  such  laws  as may  seem  in  your  best  judgment wise  and  proper  and  to  administer  the affairs of state in such manner as may seem to you best.  It is your duty to see that no law is passed which is not in  conformity  with  the  constitution,  and  that  no  order  shall  be  made  for  the  administration  of  the  State’s business which is not for the best welfare of the whole of the people.  It is my duty under the constitution to call your  attention  to  such matters  as  I  think  are  of  importance  in  connection with  the work  before  you.    I  know  of no  available  statistics  showing  the  last  two  years,  but  I  believe  if  such  figures  could  be  obtained  they  would show  that  the  growth  of  our  business  interests  have  been  steady;  that  the  products  of  our  farms  have  been greater,  and  that  the number of men  employed  in our  shops and  factories has materially  increased.   This would certainly  be  true  up  to  last  October.    At  that  time  you  will  recall,  we  were  enjoying  as  a  nation  the  greatest prosperity in our history, but the widespread business depression which soon followed was felt in our State to a certain  extent.    I believe, however, we  suffered  as  little  as  any  section,  and  that  a  large number of our  citizens, especially  the  farmers,  were  only  slightly  affected  by  the  hard  times.    We  may  congratulate  ourselves  to-day that in all lines of business prosperity is returning, and we may confidently anticipate in the near future a return to normal business conditions as they existed before the occurrence of this wholly unnecessary panic. During  the  last  session  of  the  Legislature  a  great  deal  of  progressive  legislation  was  passed  which  has proved  of  great  benefit  to  the  State.    Our  schools,  our  highways,  our  courts,  and  the  general  administration  of the affairs of state have been greatly  improved  thereby, and  it should be your duty  to see  that no backward step is  taken  so  far  as  these  reforms  are  concerned,  but  on  the  contrary  you  should  use  every  endeavor  to  see  that every advantage gained is retained, and such improvements made along these lines as may seem to you proper. TAXATION. For  some  time  there has been a  feeling  that  there  is something  radically wrong with our  system of  taxation, and  there  has  been  much  discussion  as  to  the  proper  remedy.    During  the  last  session  of  the  Legislature  it became apparent that something should be done to remedy the ills which exist, and after careful consideration it was  decided  that  the matter  needed  a  very  thorough  investigation  before  final  action  should  be  taken.   For  that purpose  a  commission  was  appointed  to  study  the  matter  in  all  its  phases,  and  report  to  this  Legislature  their findings  with  such  recommendations  as  they  saw  fit  to  make.    They  have  made  a  very  careful  study  of  the question  and  have  made  an  exhaustive  report,  and  that  report  should  have  your  most  careful  attention  and consideration. The question about which  there has been  the most discussion  is  that of double  taxation, but  in my  judgment the  chief  evil  is  not  double  taxation,  but  evasion  of  taxation.    To  show  the  correctness  of  this  view,  it  is  only necessary  to  call  your  attention  to  a  few  facts  as  shown  by  the  report  of  the  Commissioner  of  State  Taxes  for 1908.    That  report  shows  that  in  1900  personal  property  to  the  value  of  $40,881,676 was  returned with  offsets for  debts  owing  of  $27,177,289,  leaving  an  amount  of  personal  property  which  was  taxed  of  $13,704,387.    In 1908  there was  returned personal property  to  the value of $43,369,964, but  there were offsets    for debts owing of  $31,772,542,  leaving  $11,597,420  which  was  taxed,  $2,106,967  less  in  1908  than  in  1900,  showing conclusively that the evasion of taxation of personal property is gradually increasing; because we cannot believe that, with the general prosperity which has been experienced during the past eight years, the amount of personal property actually owned within  the  state has   decreased  in value  to  this amount.   On  the contrary we are  forced to  the conclusion  that  taxpayers have not been honest  in  their returns, but have sought  in various ways either  to decrease the amount of personal property returned or to increase the amount of offsets claimed as deductions for debts owing.  Having reached this conclusion, and believing that such a state of affairs should not be allowed to exist,  I  recommend  that  all  offsets  for  debts  owing  should  be  abolished.    I  do  this  fully  realizing  that  in  some cases  this may work hardship  and  that  in  theory  it  is not  absolutely  correct, but  I believe  in practice  that  it will come  nearer  being  just  and  equitable  to  the  whole  body  of  tax  payers  than  the  present  law.    This recommendation  is  in harmony with  that of  the commission on  taxation who  investigated  the matter  to  the best of their ability and reached this conclusion after the most thorough consideration. One of the greatest evils of the present system is the manner of its administration.  This is shown by the fact that  upon  investigation  it was  ascertained  that  only  about  three  per  cent  of  all  the  inventories  examined  by  the commission were found to be legal.  This results from several causes.  First, ignorance on the part of the listers.  Our present inventory is somewhat complicated, and only those who have had experience are fully competent to understand  just  what  is  required.  Second,  carelessness  on  their  part,  as  it  was  ascertained  that  in  thousands  of cases  no  inventory  had  been  taken  as  required  by  law,  and  in  other  cases  unsigned  and  unverified  inventories had  been  taken,  showing  such  general  laxity  in  administering  the  law  as  should  not  be  tolerated.   Third,  a  lack of uniformity in the appraisal of real estate.  Upon investigation it was shown that in some counties the average valuation was fifty per cent, while others it was seventy-five per cent, and  in still other cases  it was found  to be even higher.  Of course, so far as the raising of taxes for town or county purposes is concerned, this would make no  difference,  providing  all  the  property  in  a  certain  town or  county was  assessed on  the  same basis, but  in  the collection of  the  state  school and highway  taxes which are uniform all over  the State,  it would work a manifest wrong,  because  the  county  where  the  valuation  was  only  fifty  per  cent  would  not  be  paying  in  the  same proportion  as  that  wherein  the  valuation  was  higher.    Aside  from  this,  each  lister  makes  oath  that  he  will appraise  all  personal  and  real  property  at  its  true  value  in  money,  and  any  variation  from  this  rule  tends  to increase  laxity  in  the  enforcement  of  the  law.    All  this  strongly  suggests  that  there  should  be  created  a  central body or commission whose duty is shall be to have in charge the administration of the law, and act as a board of equalization,  thus  insuring  the greatest possible uniformity.   Such a body should hold meetings annually before April  1,  which  every  lister  should  be  compelled  to  attend  for  the  purpose  of  receiving  instruction  as  to  the administration  of  the  law.    Such  a  commission  might  also  be  empowered  to  collect  such  statistics  and information  as  would  be  of  benefit  in  further  perfecting  the  law.    I,  therefore,  recommend  that  such  a commission  be  created,  to  consist  of  three  members  of  which  the  Commissioner  of  State  Taxes  shall  be  the chairman.    I  also  recommend  that  the  present  law  taxing  intangible  property  such  as  stocks,  bonds,  and  similar evidences of debt,  except  the  stock of national banks, be  repealed and  that  a  law be  enacted  taxing  this kind of property  at  a  uniform  low  rate  throughout  the  state,  the  tax  to  be  collected  as  a  state  tax.    I  am well  aware  that this  is  another  case  that  theoretically  may  not  seem  right,  but  I  believe  that,  in  practice,  it  will  work  out  with much  better  results  than  does  the  present  law.    In  other  states  experience  has  sown  that  a  very  large  amount  of this class of property now pays  taxes which previous  to  the enactment of such a  law had never been returned  in any  form.   Money which  is  loaned at  the ordinary  rate of  interest, say  five or six per cent will not pay  the  taxes assessed  in  most  of  the  towns  in  the  state,  but  will  in  some  way  avoid  such  payment.    The  commission recommends  such  a  tax,  specifying  five  tenths of one per cent,  as  a  fair  rate.    It  is  impossible  to  say how much of    the  personal  property  now  returned  for  taxation  is  of  this  intangible  kind,  but  it  is  safe  to  say  it  is  only  a small  percentage,  and  therefore  that  the  loss  to  the  town will  be  comparatively  small, which  loss will  be much more  than  made  up  by  the  increase  resulting  from  abolishing  offsets.    Let  me  also  call  your  attention  to  the recommendations  of  the  commission  as  to  the  collection  of  taxes  on  stock  in  private  corporations;  to  their recommendation  for  the  separate  appraisal  of  buildings  and  land;  publicity  of  inventories;  and  appraisal  of exempt  real  estate.    These matters  are  all  of  importance,  and  should  have  your  consideration.    In  calling  these matters  to  your  attention,  I  have  not  tried  to  make  any  lengthy  argument,  because  that  is  done  so  very  much better  than  I could do  it by  the commission  in  their  report  that  it has seemed necessary only  to emphasize some few  things.    I  again  urge  upon  you  the  careful  study  of  this  report,  because  I  believe  it  contains  information which is invaluable to the proper consideration of this question. COURT PROCEDURE. During  the  last  session  of  the  Legislature  great  changes  were  made  in  our  system  of  courts,  and  I  believe that  such  changes  have  proven  to  be  of  great  benefit  and  should  be  continued  along  the  present  lines.    Such changes  have,  however,  resulted  in  increased  expense,  and  it  should  be  your  duty  to  decrease  this  expense, providing it can be one without interfering in any way with the proper administration of justice. With  this  end  in  view,  it  seems  to  me  that  you  may  well  consider  the  question  as  to  whether  the  former system of  referees  and masters  in  chancery  cannot  be  brought  back with  benefit.    It was  thought when  the new system  was  inaugurated  that  the  work  formerly  done  by  referees  would  be  taken  care  of  by  the  superior  court judges,  but  in  practice  it  has  been  shown  that  nearly  all  cases  are  tried  by  jury  at  the  regular  term  of  county court,  thus  causing  the  lengthening  of  the  terms  at  a  greatly  increased  expense,  the  cost  of  running  on  of  our courts  being  about  $100  a  day.    If  these  cases  could  be  tried  before  a  referee  it  would  be  at  an  expense  of probably  not more  than  $15  pre  day which would,  of  course,  be  a  great  saving.    I  call  this  to  your  attention  in order that you may consider the matter and see if it will not be wise to return to the old system. Another matter which deserves your attention  is  that  the  superior  court dockets  are  loaded with  small  cases which  come  from  either  the  justice  or  municipal  courts.    Many  of  these  cases  should  never  be  brought  to  the county court because  they are unimportant and should be determined  in  the  lower courts.    In my opinion  it will be  well  for  the  State  to  establish  a  system  of  district  courts,  giving  them  exclusive  jurisdiction  up  to  say  $300 and  in  all  petty  crimes,  with  the  right  of  appeal  on  points  of  law  only,  directly  to  the  Supreme  Court,  and providing  for  a  common  law  jury  when  demanded.    We  should  then  give  the  right  of  appeal  from  all  justice courts directly to these district courts, thus insuring a prompt determination of all the smaller cases and at a very much  less  expense  to  all  parties  than  if  you  tried  in  the  county  courts.    It  is  a  fact  of  which  you  should  take notice  that at  the present  time  in some of  the cities where municipal courts are established a very  larger portion of the business is done by a justice of the peace, thus causing the State very heavy extra expense. If  a  system was  inaugurated  such  as  I have  suggested,  I believe  it would do  away with  a very  large portion of  the  justice  business  as  now  handled  in  these  places,  but whether  this  is  done  or  not,  I  believe  you  should  in some  way  try  to  provide  for  the  trial  of  more  of  these  cases  before  the  municipal  courts  or  else  take  into consideration  the  small  amount  of  business  which  is  done  by  these  courts  and  provide  for  the  expense accordingly.  EMPLOYERS’ LIABILITY ACT. The wonderful  growth  of  the  industrial  and  transportation  business  of  this  country,  the  vast  and  constantly increasing amount of corporate wealth centralized in those activities, the great army of laborers engaged therein, and  the  startling  number  of  workmen  annually  killed  or  maimed  for  life  as  a  sacrifice  to  our  commercial prosperity,  presents  a  situation  unknown  to,  and  not  contemplated  by,  the  common  law  governing  the  relative rights and liabilities of master and servant. A  realization  of  this  fact  has  resulted  in  the  passage  by  the  Federal  Congress,  and  by  most  of  the  State Legislatures,  of  statutes  known  as  “Employers’  Liability”  acts  that  so  modify  the  rigor  of  the  common  law  of master and servant as to adapt it to the demands of justice in our changed industrial conditions. 1.        Under  the  existing  law,  if  an  employee  of  a  railroad  or  of  any  of  our  great  industrial  corporations,  is killed or  injured by  the combined negligence of himself and his employer, however gross  the negligence of  the latter may  be,  recovery  of  damages  is  barred.    In  the words  of  our Supreme Court,  if  the  employee  is  guilty  of contributory negligence “in the least degree,” there can be no recovery. The  mere  statement  of  this  proposition  demonstrates  the  injustice  of  that  feature  of  the  existing  law  as applied to our present industrial situation. 2.        Under  the  existing  law,  if  an  employee  is  killed  or  injured  by  the  negligence  of  a  fellow  servant,  no recovery  can  be  had,  unless  it  can  be  shown  that  the  employer  failed  to  exercise  reasonable  care  to  insure  the competency of the offending fellow servant. This also  is unjust  in view of our present  industrial conditions and  tends  to  induce  less vigilance on  the part of  corporations  in  the  employment  of  competent  men.    In  other  departments  of  business  an  employer  is  held responsible  for  the  acts  of  his  employee  done  within  the  scope  of  his  employment,  and  there  is  no  just  reason why  the  same  doctrine  should  not  prevail  as  between  master  and  servant  in  respect  of  the  acts  of  a  fellow servant.    Moreover,  the  existing  fellow  servant  law  affords  the  various  labor  organizations  very  reasonable ground for  insisting  that  their employer shall engage as  their fellow servants only members of  their order; for  if they  are  substantially  without  remedy  when  injured  through  the  carelessness  of  their  fellow  servants,  they should be consulted, they may well argue, as to the character and ability of those with whom they are compelled to work. An  employer’s  liability  law  should  be  passed,  applicable  to  all  corporations  organized  or  doing  business  in this State, which  shall at  least  remedy  the  two objectionable  features of  the existing  law  to which  reference has just  been  made,  and    should  provide,  First:  That  in  all  actions  by  a  servant  or  his  representative,  for  death  or injuries  resulting  from a corporation’s alleged negligence, “contributory negligence” shall not bar  recovery, but shall  go  only  in mitigation  of  damages;  any  contract  to  the  contrary  notwithstanding.   Second: That  in  all  such actions,  the  fact  that  the  injury  complained  of  resulted  from  the  carelessness  of  a  fellow  servant  shall  be  no defense; any contract to the contrary notwithstanding. PUBLIC SERVICE COMMISSION. The  law  passed  during  the  last  session  of  the  Legislature  providing  for  the  regulation  of  railroads  and  the abolishing  of  grade  crossings  has  met  with  such  universal  favor  and  has  proved  of  such  great  benefit,  that  a demand has sprung up that all public service corporation should have similar state supervision. The work  of  our  railroad  commission  has  shown what may  be  done  by wise  supervision,  backed  by  proper authority  for  the  enforcement  of  such  regulations  as  they  think  proper  to  make.    We  have  seen  many  of  our dangerous grade  crossings  abolished  and  a general  improvement  in  the  service  rendered  the public, not only  as regards safety, but also convenience.  This is as it should be.   When  any  corporation  receives  a  charter  from  this  State  or  comes  here  to  do  business,  such  a  corporation becomes a child of  the State and  the only supervision   which can be exercised over  that body being  through  the State, the State is under moral obligations to see that it carries on its business in a proper manner, subject to the right of the people.  The number of public service corporations doing business in our State is increasing rapidly, and  it  is  the part of wisdom at  this  time  to place  them under such control as shall  retain  for  the people  their  full rights. I  wish  more  especially  to  call  your  attention  to  conditions  existing  regarding  telegraph  and  telephone companies.    At  the  present  time  there  is  practically  no  competition  among  the  telegraph  companies,  the  result being  such  rates  are  charged  as  are  fixed  by  the  company.    It  should  be  the  duty  of  a  telegraph  company receiving  a  message  to  attend  to  its  prompt  delivery.    They  receive  compensation  for  doing  this,  and  this obligation  should  be  as  binding  on  them  as  any  other.    At  the  present  time  they  are  practically  a  law  unto themselves.  No one can obtain any redress except by their acquiescence or in a court of law.  I believe with the proper supervision of a commission given suitable authority, that this state of affairs could be very largely done away with, and that the service could be much improved even if the rates were maintained as at present. The  telephone companies are  in a  somewhat different position  inasmuch  as many different  companies have been  established  throughout  the  State,  resulting  in  many  cases  in  sharp  competition.    This  results  usually  in excellent service and in reasonable rates.  In other cases where there is no competition the service is not as good and  the  rates  are  higher.    In  these  days  the  trend  in  cases  like  this  is  towards  consolidation,  and  I  am  of  the opinion that this is bound to occur in many places before a very long time.  It is also my opinion that when such consolidations  take place,  they may be beneficial  to  the communities;  that one company giving  suitable  service at  a  fair  price  will  be  much  better  than  two  companies  even  though  the  cost  of  each  is  less.    For  the  above reasons  I believe  that these consolidations may be made of benefit  to  the public, but only when made under  the supervision of  the State and under such conditions as will prevent over-capitalization on which  the public must pay dividends, with the immediate result of excessive charges. I  have  spoken  particularly  of  these  two  classes  of  corporations  because  they  are  perhaps more  prominently before the public than any others at this time, but the same arguments apply to other public service corporations and should be applied to them.  For the purpose, therefore, of providing such supervision, I recommend that the name  of  the  railroad  commission  be  changed  to  that  of  Public  Service  Commission,  and  be  given  supervision over  all  public  service  corporations,  with  such  power  and  authority  as  are  now  given  this  commission  for  the supervision  and control of railroads.  This will, of course, increase the work of the commission very materially and  their  salaries  should  be  increased  in  proportion.    They  should  also  be  given  such  clerical  assistance  as  is necessary for the proper carrying on of this work.  INSURANCE DEPARTMENT. It  would  seem  as  if  the  time  had  definitely  arrived  when  the  State  Legislature  should  establish  an independent  insurance department,  taking  the duties now assigned  to  that public business  from  the Secretary of State  and  the  State  Treasurer.    All  the  older  state  of  New  England  and  the  Middle  States  have  Insurance Commissioners  and  all  have  independent  departments  on  account  of  the  enormous  detail  connected  with insurance supervision and  the  technical and  large experience  it  requires.   This  is especially  true of states within whose borders are domiciled large institutions chartered by themselves and for the careful supervision of which by themselves and for the careful supervision of which they are responsible to the rest of the world.  It is equally important  that  the  utmost  care  should  be  taken  in  the  admission  of  foreign  companies,  in  order  that  our  people may  buy  insurance  protection  of  every  nature  and  variety  safely  and  economically,  and  that  all  should  be effectively supervised at all  times under a full execution of  the  insurance  laws.   The  last report of  the Insurance Commissioners, containing nearly 1,000 pages, deals with something like 69 fire and marine companies, 26 life companies, 41  fidelity and casualty companies and some 24 orders and associations of other  type.   At  the close of  1907,  it  appeared  that  the  fire  insurance  risks  written  had  increased  from  $35,892,510  in  1885  to $78,414,273,  and  that  the  life  insurance  risks  outstanding  on  citizens  in  this  State  amounted  to  $59,931,125.  The  total  premium  received  last  year  on  Vermont  business  by  fidelity  and  casualty  companies  equaled $235,020.50, while  accident  companies  collected  $134,633.92.    In my  judgment  these  figures  and  all  that  they imply  warrant  the  definite  consideration  by  the  Legislature  of  an  insurance  department,  which  I  recommend, and  the creation of which  is  fully sustained at  the present  time by  reason of  the  large  income which  the State  is now deriving from that business. BOARD OF HEALTH. To my mind  there  is  no  work  being  done  in  the  State  which  is  of more  benefit  and  the  practical  results  of which are any greater than that performed by the Board of Health. The  exceedingly  active  and  conscientious  manner  in  which  this  work  is  carried  on  has  produced  results which are of the greatest benefit to the whole community. The  scope  of  their work  has  been  increased  from  time  to  time  until  today  it  practically  controls  all matters touching  the  public  health,  and  through  the  state  laboratory  it  is  constantly making  examination  and  rendering decisions which are of the most vital importance. This applies not only  to  the general health of  the public, but also  to a great amount of work which has been done  in criminal matters.   Without doubt  this has been a great saving  to  the State, and  the money expended has been  returned  to  us  many  times.    As  bearing  on  this  question,  let  me  call  your  attention  to  the  report  of  the Board which shows  that  figuring  the work accomplished during  the  last  twelve months on  the basis of ordinary charges  for  such work  in  private  laboratories,  it would  amount  to  $42,088. This work was  accomplished  at  the state laboratory at an expense of $12,500.  It is probably true that if the laboratory was not a state institution, we should not have had this amount of work done, but it is also true that the work was necessary and ought to have been done. It  is  impossible  to  state  the  great  benefit  which  has  been  received  from  the  enforcement  of  the  pure  food law.    I believe  this has been done as  thoroughly as possible with  the means which were provided and we ought to continue this work and increase its scope. During  the  last  session  of  the  Legislature  a  special  appropriation  of  $2,500  was  made  for  the  purpose  of enforcing the pure food law, and through the wise expenditure of this sum a great deal has been accomplished. The  condition  of  the milk  found  in many  localities  leads  us  to  believe  that  this  branch  of  supply  should  be very  closely  cared  for.    We  cannot  be  too  careful  as  to  the  quality  of  milk  which  is  provided,  especially  for children.    I  believe  you  should  provide  for  adequate  inspection  of  all  sources  of  supply  and  wherever  any question  exists  as  to  the  quality  of  the  milk  sold,  there  should  be  a  rigid  inspection  of  the  conditions  under which it is produced and provision made for its improvement. Another matter  of  great  importance  is  to  see  that  the  slaughter  houses  are  properly  inspected  and  that  they comply with the law in every respect.  For this purpose I believe that you should provide for an inspector whose duty  it  should  be  to  investigate  these matters,  either  on  complaint  or where  there  is  a  suspicion  that  conditions are  not  satisfactory.    In  many  cases  it  is  an  extremely  disagreeable  task  for  a  local  health  officer  to  undertake these matters and do his full duty, and in consequence the work is not done.  Where such cases exist, an  inspector such as  I have suggested would be able  to handle  the matter with very little difficulty. It  is  necessary  that  constant  care  be  exercised  to  prevent  the  sale  of  adulterated  articles,  and  this  matter being so important should have constant supervision. I  recommend  that  you  investigate  these  matters  with  great  care,  and  that  such  changes  in  the  law  as  are necessary  be  made.    If  larger  appropriations  are  needed  for  the  proper  carrying  on  of  the  work,  such appropriations should be provided. RENEWAL OF BONDS. By act of Congress, approved  July 2, 1862, Chapter 130,  second  session, 37th Congress, an amount of  land scrip  was  donated  by  the  National  Government  to  the  State.  The  sum  realized  from  the  sale  of  this  scrip amounted to $135,500.  Section 4 of the Act under consideration reads as follows:  “Sec. 4. And be it further enacted, That all moneys derived from the sale of the lands aforesaid by the states to which the lands are apportioned, and from the sales of land scrip hereinbefore provided for, shall be invested in  stocks  of  the  United  States,  or  of  the  States,  or  some  other  safe  stocks,  yielding  not  less  than  five  per  cent upon  the par value of  said  stocks;  and  that  the moneys  so  invested  shall  constitute  a perpetual  fund,  the  capital of which  shall  remain  forever  undiminished,  (except  so  far  as may  be  provided  in  section  fifth  of  this  act)  and the interest of which shall be inviolably appropriated by each State which may take and claim the benefit of this act,  to  the  endowment,  support  and  maintenance  of  at  least  one  college  where  the  leading  object  shall  be, without excluding other scientific and classical studies, and including military tactics, to teach such branches as are related to agriculture and the mechanic arts, in such manner as the Legislature of the States may respectively prescribe  in  order  to  promote  the  liberal  and  practical  education  of  the  industrial  classes  in  the  several  pursuits and professions in life.” In  conformity with  this  act,  the State  issued  registered  bonds  to  the  extent  of  $135,500, which mature  June 1,  1910.  It  will,  therefore,  be  your  duty  to  provide  for  a  reissue  of  these  bonds,  or  for  some  other  investment consistent with the act. ELECTION OF SENATORS IN CONGRESS. Let  me  call  your  attention  to  the  duty  which  devolves  upon  you  to  elect  a  Senator  in  Congress  to  succeed Hon. William P. Dillingham whose term expires March 4, 1909. It  is  also  my  painful  duty  to  remind  you  that  on  March  4,  1908,  occurred  the  death  of  the  Hon.  Redfield Proctor, senior Senator from this state. By this sad event Vermont lost her first citizen and the nation one of her greatest  legislators. For more  than forty-six years he gave much of his  time  to  the service of  the state or nation, and whether  as  a  soldier,  town  official,  legislator, Governor, Cabinet  officer  or  Senator,  he  always  gave  to  the public service the best that was in him. As governor he instituted reforms of which we see the effects to-day. As a  member  of  President  Harrison’s  cabinet  he  again  showed  wonderful  executive  ability,  becoming  a  great administrator  of  the  War  department,  as  well  as  one  of  the  President’s  most  trusted  advisers.  But  it  is  as “Senator Proctor” that we know him and love, him best, for during the past sixteen years he has been so close to us  as  our  counselor,  adviser  and  friend,  that  the  entire  citizenship  of  the  state  felt  it  as  a  distinct  personal  loss when  he  was  called  Home.  No  man  ever  loved  the  State  of  Vermont  more;  no  one  ever  worked  harder  for  its interests and advancement, and few, if any, ever left behind them a greater record of achievements.    “The monarch oak, the patriarch of trees, Shoots rising up  *    *    * Supreme in state  *    *    *   Senator of mighty woods.” His was a generous nature, constantly striving for the betterment of conditions in all walks of life. And when in the fullness of years, and as the culmination of the desire of a lifetime, he gave to the people of the State that splendid institution at Pittsford, where those threatened with that dread disease, tuberculosis, may learn to make a  successful  fight  for  life,  without  ostentation  and  with  no  desire  on  his  part  that  such  should  be  the  case,  he erected a monument by which he will ever be held in loving remembrance. On  March  24,  1908,  Governor  Proctor  appointed  the  Hon.  John  W.  Stewart  of  Middlebury  to  fill  the position of Senator, and  it will be your duty  to elect at  this session of  the Legislature  some one  to  serve during the  unexpired  term  ending March  4,  1911.  As  the  Nestor  of  the  upper  branch  in  Congress,  Senator  Stewart  at once took an active and influential part in all the Senate proceedings. His long public service and ripe judgment splendidly equipped him for a trying place which he has filled with lasting credit both to himself and the state, ADVERTISING VERMONT. Vermont.  I need hardly  remind you,  is  a beautiful  state. We  are proud of her  forest  clad hills  and  charming vales;  her  lovely  lakes  and  her  fertile  farms.  These  natural  resources,  furnished  by  nature’s  lavish  hand,  have made  our  State  one  of  the  fairest  spots  on  earth.  Our  streams,  in  their  winding  journeys  from  their  mountain sources to the greater river and lakes, furnish the power that is developing not only natural resources, but all the industries  that  contribute  so  largely  to  our material wealth  and  prosperity. Vermont  has  the  largest  granite  and marble quarries  in  the world and  is second  in  the United States  in  its annual output of slate. Yet  there are many mines  and  quarries  undeveloped,  only  waiting  for  enterprise  and  capital  to  transform  stone  and  metal  into evidences of material wealth. But our great natural resources have not been sufficiently exploited and the outside world knows too little of our undeveloped wealth and the scenic attractions of our State, our mountain and lake scenery being practically unknown outside our borders. We  ought,  therefore,  to  first  become  accurately  in  formed  as  to  our  natural  advantages  both  for manufacturing  purposes  and  as  a  pleasure  resort,  and  then  see  that  these  resources  are  properly  advertised  so that  visitors  coming  into  the State  from  far  and  near may  realize  the  opportunities  both  for  summer  homes  and for  the  investment  of  capital.  Our  sister  state  of  New  Hampshire,  with  no  greater  advantages  than  ours,  has taken this matter up and the results have been far reaching and most gratifying. I  recommend,  therefore,  that  provision  be  made  for  the  purpose  of  gathering  information  which  will  be  of value,  and  then  advertising  our  State  in  a  proper  manner.  I  believe  that  by  so  doing  we  shall  make  a  wise expenditure which will be returned to us many fold. TERCENTENARY The  tercentenary  of  the  discovery  of Lake Champlain  comes  in  1909  and  it  is  eminently  fitting  that  such  a notable event  in  the history of  this continent should be properly observed. The  last Legislature provided  for  the appointment of a commission  to meet with  similar boards  from our sister state of New York and  the Dominion of  Canada  and  consult  as  to  the  best  method  of  celebrating  the  discovery  of  that  intrepid  explorer,  Samuel Champlain. The  report  of  that  commission  is  before  you  and  I  trust  you will  give  it  your  earnest  attention. The  state  of New York has already made an appropriation and Vermont is expected to take similar action. I recommend that a  reasonable  amount  be  appropriated  that  such  an  important  event  in  our  history  may  never  be  forgotten  by succeeding generations.   FINANCES. It  is very gratifying  to  report  that  the  finances of  the State  are  in  a  flourishing  condition. We not only were able  to pay our running expenses during  the  last  two years but accumulated something of a surplus.  I am of  the opinion  that  this amount, or at  least a part of  it,  should be  transferred  to  the permanent  school  fund as  intended by  the present  law. The  revenues of  the State at  the present  time, and under present conditions, are sufficient  to pay  the  necessary  expenses  and  increase  the  appropriations  for  schools  and  highways.  Some  of  my recommendations call for increased appropriations for different departments, but believe they are necessary and in such cases should be provided. In these departments the business has increased to such an extent that it seems impossible  to have  the work properly done at  its present cost. But  it  is not with  such appropriations  that we are likely to go beyond what is reasonable and proper. The great danger is in making special appropriations for new matters  which  are  brought  up  from  time  to  time.  In  making  appropriation  of  this  nature  we  should  use  the greatest care. At  the present  time  it would seem  that  the revenues collected by  the State are as  large as  they can reasonably  be  expected  to  be  for  some  time  to  come  unless  new  sources  of  revenue  are  provided.  We  must therefore,  live within  our  present  income which  unless  some  unforeseen  cause  arises, we  should  be  easily  able to  do.  Let  me  again  recommend  the  closest  scrutiny  of  all  appropriations,  having  in  mind  the  most  rigid economy consistent with the proper carrying on of the business of the State. CONCLUSION. The duty which brings you  together  is  a most  important  one.   The matters which  have  been  brought  before you are of the greatest interest and it will require your best efforts to successfully solve the problems presented.  It  is  only  by  the  most  faithful  attention  to  business  of  the  session  that  you  can  perform  your  duties  within  a reasonable time and in a proper manner. I urge upon you that no time be wasted, but that you enter at once upon the  business  before  you  and  give  your  undivided  attention  to  its  accomplishment.  I  am  well  aware  that  it  is necessary  that  some  time  be  given  to  organization,  but  as  soon  as  this  is  completed  the  serious  work  of  the session should begin and should be continued until your duties are completed. A time limit for the admission of bills  will  be  fixed  by  you  and  you  should  rigidly  adhere  to  the  rule  established.  I  urge  especially  on  the committees  that  they  do  not  bring  in  bills  after  this  time  limit  shall  have  expired,  except  in  such  eases  as  shall seem  necessary  and where  an  injustice will  be  done  if  they  are  not  so  admitted. Much  legislation  of  a  doubtful character  is passed because of  the short  time  in which bills may be considered when  they are  introduced  in  this manner. The habit is a pernicious one and should not be tolerated except in very important cases. I would not in any way  suggest  cutting  short  the  time  required  for  full  consideration  of  all  bills which  are  brought  before  you but simply urge that you give strict attention to the matters presented; and by your presence help to expedite the work.  It  is  your  duty  to  be  present  at  each  session  of  your  honorable  body  and  you  should  allow  nothing  to interfere with your attendance except  such matters  as are of vital  importance. Both  the State and your  town are entitled  to your service during  the entire session and  if by your absence you  fail  to  render such service, you are withholding what is rightfully their due. The work for the session is before you and on you is laid the duty of its faithful performance. Your motto  should be, For  the Public Good Only—with  this before you,  I have no doubt as to the result. GEORGE H. PROUTY.  Montpelier, Oct. 8, 1908.