Daily capital journal. (Salem, Oregon) 1903-1919, 1919-01-14
toward the accomplishment of the d

toward the accomplishment of the de-
sired end which all Of us have in mind.
If it is impossible to gain the proper
cooperation with the federal govern
ment no time should be lost in devising
such other ways and means as may
prove to be the. quickest and the surest
to bring maximum results.
Tax Limitation.
Due entirely to the exigencies Of an
unforeseen war and the accompaniment
Of the unprecedented high prices the
cost of maintenance of state institu-
tions has been greatly increased, thus
demanding expenditures much larger
than would have been required under
normal conditions. In this connection
| frankly reiterate my conscientious
conviction that the 6 per cent limite-
ton is wrong in principle, as it re-
stricts legitimate state activities in per-
iods of unusual emergencies. On the
other hand, it is really not economical
as it will inevitably result in q higher
general level of taxation than is FIRE.
quenty necessary, due to the arbitrary
pr9ctice Of adding the 6 per cent re.
gardless of merit. Taxation should be
flexible, capable of reasonable expan-
sion to meet unusual emergencies and
Of severe restriction when an increased
fund is not needed.
A capitalization Of assets is not waste
fulness; it is good business. If we are
to mine the rich ore Of undeveloped
resources we must spend at least
enough to put the shafts Of production
into operation.
State Finances.
The financial situation in Oregon is
uncertain but it is by no means nope
less and have faith in the ability of
this legislature to solve the problem,
We hsve just passed through period
marked by severe drain on the treas
ury but we have learned, as never be-
fore, how to save and conserve and do
without. Perhaps this idea Of conserva-
tion which has been stretched almost
to the point of uniqueness has become
somewhat Of habit. If so its whole
some benefits will continue, forming
what might be called blessing in dis
guise. In any event, let us be business
like and as equitable as possible in our
financing.
As g. matter of business, expediency
permit me to invite attention toward
the advisability of establishing the end
Of the fiscal year at July l rather than
January l, thus running the state ledg-
er concurrently with the books of the
federal government. Inasmuch SIS the
working out Of highway construction
programs and the prospective land set
titment arrangement between the state
and federal governments involves the
element Of financial cooperation, the
possible advantages Of the suggested
amendment are manifest.
Industrial Accident Commission.
In passing from the subject of fl
nance to cursory puryiew of the de-
departments Of state coming indirectly
within the jurisdiction Of the executive
department a ray Of bright sunshine
confronts US as we touch upon the larg-
est and most important department, the
| industrial accident commission, which
has grown amazingly since its establish
ment five years ago.
Under the law at present the state II
required to contribute one-seventh of
the funds received by the commission
from employers and employees and, to
suit this provision, an estimated contrl-
button of $6s0,000,00 has been fixed in
the 1919-l9 state budget. 1t has been
suggested and will be recommended of
fieially by the commission, / believe,
that the law be changed so that the
state be required to contribute only
enough to defray the expenses of op-
Grating the commission, which are esti-
mated st $3OO,000.00. 1t occurs to me
that the financial affairs Of the com
mission are now in such flour;shing con
dition that it would be advisable. as
well as altogether proper, to suspend
state aid n the industrial accident COM
mission fund entirely for the coming BIZ
ennium and to authorize the commission
to meet the administrative expenses
during that period from the large un-
expended surplus now lying in the fund.
Great Saving Possible.
Such a step would not only reduce the