Daily capital journal. (Salem, Oregon) 1903-1919, 1917-01-09

heritanee tax may well be readjusted SC
that direct descendants would pay one
per cent on amounts over the $1,000 ex
emptiOn, and up to $4,000, and two pei
cent upon funds above that amount; col
lateral heirs, two per cent on all
amounts from $4,000 to $4,000, and
above that, four per cent; all other ben
efieiGries should be required to pay -four
per cent Of whatever money they re-
eeive.
In the state insurance department il
is suggested that the tax of two per
cent ON the net premium Of insurance
companies be changed to two per cent
on gross premiums.
It is calculated that the suggested
changes under these two heads will
bring to the state an additional revenue
Of 100000 annually.
Highways.
State road work embraces some of the
most important problems confronting us.
The policy of trunk highway construe-
tion already under way should not be
abandoned. Especially, sufficient funds
must be forthcoming so that the state
can meet the requirements of the Shack
elford bill and thus secure this federal
financial aid, which, during the next
five years, will amount to 81, ,S19, ,2S0.
Having ascertained that many auto
mobiles escape the property tax, it was
thought that this tax might be combined
with the license. However, such a pro.
eedure might be unconstitutional, so !
propose moderate increase in automo-
bile licenses and that the total revenue
obtained therefrom be devoted to state
road work. 1t is estimated that an
average Of at least $250,000 a year
would be available during the next five
years, making a total amount available
for roads after 1917 of approximately
$500,000 a year.
1t is further recommended that com
mission of three unsalaried members be
placed in charge Of the state highway
department. The members of the pres
ent highway commission agree, 1 be-
lieve, that their other duties are too
multitudinous to permit giving proper
attention to this important subject.
The commissioners should be appoint
ed by the governor, and one might well
be selected from each of the congres.
sional districts. This commission should
be empowered to employ highway en-
gineer, with the exclusive duty of super.
vising state road work.
Prohibition.
The people of Oregon have decisively
approved the so-called "Bone Dry y
prohibition measure and this legislature
is in duty bound to make absolutely eff
feetive the provisions and evident in
tentions of that measure. That it will
filfill its obligations to the letter, / am
confident.
So far as the governor Is office is con
cerned, it may be stated that during
the past biennium I have actively CO.
operated with local officers toward the
adequate enforcement of the prohibition
law, and have found the officers of the
various counties and cities deserve high
praise for the sincere spirit and marked
efficiency with which they have ad-
ministered the act.
There has been returned to the treas
ury by my office approximately $4,000
of the $4,000 appropriated by the last
Legislature to aid in the enforcement OF
the prohibition and other laws. To per
NIT continuance of the policy of execu-
tive aid in law administration, and espe-
eially as regards the new and more
strict prohibition measure, I am asking
for an appropriation similar to that fur
nished by the last legislature, but of
$4,000 instead of $1,000.
Penitentiary Improvement.
The outstanding needs of the peniten-
tiary are better housing facilities and
employment for prisoners. The present
buildings and equipment are antiquated
and inadequate. 1t is not advisable to
provide for new penitentiary building
just now, but small appropriation
might well be made which will enable
the warden during the next two years
to commence the erection of such o
building. The penitentiary makes it's
own brick and has an adequate labor
supply. Much of the rough construction
work could be accomplished with pris.
ON labor at minimum cost, creating
something of value to the state and at
the same time providing needed occupa-
tion to its wards.
Flax Industry.
Our laws forbid the sale of prison
made articles in competition with those
manufactured by free labor. The incep-
tion of the flax industry two years ago
was largely with view to alleviating
the condition of unemployment, result
ing from these laws. 1t has done much
toward this end, as an average of 1853
men have been given some employment
each month, while the average number
employed each working day is 72 In
all there has been paid to prisoners for
flax work 1886.
Below is brief statement showing
the financial status of the state Is flaS
experiment.:
Appropriation utilized for flax:
Permanent plant .,... .$13,713
Labor, straw, etc. :. 26,229 ---$39,94s
Value products on hand--19l6 crop:
$50 tons flax straw
10 per cent fiber, SO