The Oskaloosa herald., 1907-01-17
GOV. CUMM|NS TO
THE LEGISLATURE
ANNUAL MESSAGE DELIVERED
M THIS AFTERNOON.
DEMANDsFLAT TWO CENT RATE
Railway Legislation Asked Is More
Advanced than Was Expected
Many Issues Are Freely
Discussed.

.
Discussed.
Des Moines, Jan. 14.-Goy. Cum
minis read his message to the general
assembly in joint session in the hall
Of the house at 2 p. m. today.
The document was on the whole a
conservative paper, though some OF
the recommendations were believed
to be rather advanced. The recon.
mendation for a 2-cent fare bill wers
beyond the suggestion of 2-ce7t
mileage book, and stood for fiat o
cent rate between all points In Iowa
The recommendation for reciprocal
demurrage laws and an investigation
of the freight rates charged by roafs
in the staie were expected That part
Of the message which referred to the
liability of employers attracted consid.
cradle attention. The message throughs
out was listened to with close atten-
ton and was the subject of comment
in many circles.
State Finances.
At the outset the governor took up
the question of state finances and
gave figures from the auditors re.
port from which he made the fol.
lowing recapitulation:
Cash on hand January /,
1907 ........ ........ 1871 ,826. 4O
Estimated receipts in '07
anil '06 G 720 OO0 M
Total .......... $7,511 1876 Al
Expenditures Qncluding
unpaid balances) ...... 6,594,300 10
Balance Jan /, '09....$ 917,526 40
Adding TO this the amount of the
unexpended balances will give, says
the governor, the amount that will
be available for the extraordinary ap,
preparations to be paid out in 19t.
and 1908.
The governor next referred to the
convention for the purpose of fur.
thering the calling of convention
for the amendment of the national
anu AllO lOilO" .
recommendation:
81 strongly recommend the passage
of a resolution that will be an appli-
cation to congress, under Article Z OF
the constitution of the United States,
for the calling of constitutional CON
vention to propose amendments to
the constitution
The Railroads.
From a condemnation of the lobby
lists the message naturally turned to
the railroads. On this subject the
governor devoted considerable time.
At the outset of this part of the mes
sage the statement was made that
there was no prejudice against the
legislation, but the governor said that
some of the railroads claimed the
right ''to capitalize not only present
earnings. but hopes Tor the future,
and they could not, save theoretical
ly, recognize that all persons and all
localities must be given the use OF
transportation facilities upon like
terms under like conditions" He
added that the Legislature could not
inf1ict more fatal blow upon the
people of the state than to adopt such
legislation as would deprive our rail.
roads of the opportunity to earn a
fair profit"
In Support of his 2 cent fat fare
10 tha
as mass of figures from which it was
claimed that the average net earn
ings of the raIroads in Iowa for the
past five years would pay 94S-100 per
cent upon valuation of $196,540,0OO.
The figures of the valuation were ar
/. rived at by taking the figures which
the representatives of the roads had
time and again stated to the execu.
tive council as the actual cost of the
Iowa lines, $4,000 per mile.
On the subject of freight rates the
governor said that the schedules and
classifications announced by the rail.
road commission in 1889 had not
been changed essentially during the
eighteen years WHICH nave Since III
terveaed, and he believed it to be
true that ''the present adjustment OF
rates is grossly unfair to the manu-.
facturers, farmers, stock producers
and distributors of the state"
The legislature was also recon-
mended to pass law that will fairly
and reasonably limit continuous ser.
vice of employees engaged in the
movement of railway trails."
Tax On Corporations.
With reference to corporations, the
recommendation was reiterated that
no capital stock should be allowed to
be issued until some state authority
had made examination, and until it
had been satisfactorily shown that
it had been paid for either in money
or in property at fair value. The
governor also stated his opinion that
the time had come for the imposition
~Vf an annual franchise tax.
Primary Election Law.
A. Comparatively short space was de-
voted to the discussion of a ps;mary