The citizen. [volume] (Berea, Ky.) 1899-1958, 1906-01-11
GOVERNORS MESSAGE.
An Excellent Showing Was Made
by the State.
Kentucky Is Practically out Of Debt,
But Owing to the New Capitol and
other Expenses Incurred In
creased Revenue Is Needed.


creased Revenue Is Needed.
Frankfort, Ky, Jan. 3.-Following
is a synopsis Of Gov. Beckham's mes
sage to the general assembly:
The excellent showing made by the
state of Kentucky as set forth in the
governors message was a subject of
favorable comment and mucli felicia,
ton. The governor called the atten,
tion TO excellent results obtained In
various state institutions. The state
is practically out of debt a net amount
of $1,250,000 resulting from the col
lection OF civil war claims having
made possible the payment OF the
state debt of 81 100000 before II was
due. except $4,000, for which higher
rate was demanded than had been paid
for the other bonds. At the close of
the last fiscal year. June 80, 1905.
there was in the treasury a balance
of $437 ,343.16, but appropriations for
the new capitol and current expenses
will more than wipe this out, 80 that
legislative action for increasing reven-
ues is necessary.
Gov. Beckham said tina public was
defenseless without proper and effec-
tive state and federal regulation OF
railroads whose owners and managers
seek to earn the largest possible divi-
dends for the stockholders. He con-
unued: THE honest and prudent ad-
ministration OF such laws Is jus. az
important as the character of them.
and the demagogue who would seek to
blackmail a railroad or corporation
with the threat of hostile legislation.
or with the unjust application OF the
law. is a felon deserving of the sever
est punishment.
Must BE Restricted.
"On the other hand we must not
fiatter ourselves with the delusion that
a railroad company is a charitable or
ganization, and that without restric-
ton ii would not take every possible
legal advantage. Between these two
extremes will be found the fair, hon
est and equitable ground upon which
this grave and important question
should be settled. The power Of a rail-
road company TO levy an extortionate
rate, simply because of a lack of com
petition. or by an agreement Of com
peting line. should be restrained and
the authority to do this now rests with
our board so far as rates within this
state are concerned" In discussing
insurance he said:
The disclosure made in the past
year of the corruption and crime in
the management Of a number of the
large life insurance companies show
conclusively that the interests Of the
people who have put their savings in
them must be protected. If protected
at all by the strength and power OF
the law, and not left 10 the supposed
conscience and integrity Of the CON-
panies officers any more than a lamb
would be safely intrusted TO the con-
science or altruism of the wolf.
Reserves Are Trust Funds.
"The vast sums gathered from the
people by these companies are trust
funds. as sacred as those in the hands
Of a guardian or administrator, and
the corrupt use Of them or the appro-
priation Of them to evil purposes, by
the officials in charge of them, is none
the less embezzIement because Of the
fact that the amounts misused are so
much larger than the sums for the
theft of which men are usually put
behind prison bars.
The wasteful extravaganza OF these
trust officers, the contributions to po-
litical campaigns, the grand larceny
in the matter of exorbitant salaries.
have, II Is true, aroused universally
public indignation at such gross viola
tions Of honesty by the officers of some
Of the companies, but we must not
rely alone upon the expressions OF an
aroused public conscience, or the full.
some promises made by reorganized
company. The remedy must be found
in such just and strong enactments of
law as will reduce to a minimum the
possibility of these embezzlements
happening in the future. There should
be no disposition TO unjustly injure
these companies, or any legislation
that would prevent their doing a legit-
innate and profitable business. It
seems TO be the opinion of a great
many authorities on the subject that
the deferred dividend system is es-
sentially wrong, and that the accumu-
lation by reason of II OF large sur
plus in the hands OF the company Is
constant temptation to such extrav-
sgance and fraud as have been discov-
cred in the recent Investigation of sew
eral companies.
To Pass Laws.
Il would advise, therefore, that you
carefully examine into your power in
the premises, and that II you ind that
II would be effective, pass a law re-
curing a short period accounting Of
the surplus to the policyholders of the
company. ] would also advise that
you pass a law along practical lines.
requiring a company doing business in
the state to invest a certain portion
of its earnings in Kentucky. 1t is a
constant drain upon our money to
send out every year a large sum for
insurance and to have no part of it