History of Dakota Territory, volume III, Part 22

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920
Publication date: 1915
Publisher: Chicago, Ill. : S.J. Clarke Publishing Company
Number of Pages: 1146

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The governor said that all persons in the state conceded that the assessment and revenue laws were crude and inadequate. Previous governors had referred in detail to their imperfect and ineffective nature, had discussed them and ana- lyzed them and all the legislatures thus far had failed utterly to meet the require- ments by correcting one of the greatest obstacles to the progress of the state.

"The franchises of public service corporations organized in this state and the privileges to do business and hold property in this state granted by its laws to non-resident public service corporations are of very great value, and the law prescribing a rule for assessing the property of these corporations whose property is a kind possessed of marvelous earning power, omits all reference to the value of the franchises, and in fixing values no reference is made to increased value on the part of the property of these companies lying between towns and cities, where they have depots, machine shops, enlarged grounds, sidetracks, general offices and personal property of great value. The terminal grounds and depot buildings of the Burlington & Missouri River Railroad Company and of the Chicago & Northwestern Railroad Company with rights of way in the City of Deadwood and of Lead worth many thousands of dollars, are valued under the law at the same rate per mile as one mile of single track over the open space of land in Custer or Fall River or Pennington counties. With one of the richest gold mines in the world in its midst, the average value of mineral lands in Law- rence County is only $91.66 per acre; total number of acres of mineral lands in the county is 44,770 and the total assessed valuation thereof, $3,908,235. With 2,734 miles of Western Union Telegraph lines in the state assessed by the state board at $240,000, and 20,723 miles of telephone wires in the state assessed by the same board at $780,293, and the property of the express companies assessed at $139,298, and the Pullman Company assessed at $22,500, we find all this property going entirely free of road tax because the tax levy is made upon it by the state board exclusively and no equivalent to the road tax is levied at all."

By 1907 the state had paid off its entire bonded debt, but had outstanding a floating debt of $217,101.04. These figures were published in the summer of 1907. On November 8, 1907, the floating debt was stated to be $500,643.38. There was a 3 mill levy for the fiscal year 1907-08; also a one-fourth mill levy for a twine plant at the state penitentiary, which measure had been carried at the November election, 1906. The total assessment in 1907 was $260,640,077. This included all corporate property. The state board fixed the assessable property, exclusive of corporate property, at $237,582,181. In 1908 the assessed valuation was in round numbers $268,000,000. The tax levy amounted to $1,214,933.42. In November, 1908, the state owed a total of $779,501. This debt had been incurred in anticipation of the annual tax levy of 1908.

The most conspicuous events of history in South Dakota from 1890 to 1908 were the following: The Messiah Indian war of 1890; delinquency of State Treasurer Taylor, 1895; Spanish-American war efforts of 1898; capitol removal contest of 1904; opening of Rosebud Reservation lands in 1904; construction of railway lines west of the Missouri River in 1905-06; opening of Pine Ridge Reservation lands in Tripp County in 1908.

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In his message to the Legislature of 1909 Governor Crawford made many specific recommendations for the improvements of the public service. Among his earnest requests were the following: (1) Insurance of bank deposits; (2) a tax commission for the general good of the state and particularly to compel large concerns with vast personal property interests to disclose their taxables; he declared there was too much valuable personal property in the state that wholly escaped the search of the assessor and therefore was lost to taxation; (3) in regard to the capitol building fund, he stated that 40,586 acres had been sold for $293,195.10; of this sum $110,512.82 was on hand to be applied toward the con- struction of the building; these lands were the endowment from the Government for this purpose; it was necessary, he said, to raise about $400,000 more with which to complete the building ; he suggested that in order to finance the project to completion it would be well to renew the former special appropriation of $200,000 from the general fund for two years, and to issue $100,000 of capitol building bonds, all to be repaid in the end from the sale of capitol lands; (4). to give the railway commissioners extra power and authority over express, telegraph and telephone organizations, owing to the fact that under the existing laws these organizations were not adequately controlled and were practicing various fraudu- lent operations on the public ; (5) that the Legislature should pass an indetermi- nate sentence law as had been recommended by the board of charities and cor- rections; in this connection his message was forceful and eloquent and reached the sentimental side of the question ; he pleadcd that due consideration should be extended to young convicts whose subsequent lives would, in a large measure, be determined by the treatment they received while confined by the state; (6) that young convicts should be given short terms for first offense and then be sur- rounded with uplifting influences in the penitentiary, and for good behavior be granted liberties upon pledge of reform; (7) that there should be a permanent state parole officer who should make a study of the system or law of paroling convicts and should have absolute control of their movements after the law had once been defined; (8) to regulate banks which had too many liberties in this state; (9) to increase the number of the Supreme Court to five; (10) to increase the salary of the attorney-general.

Governor Vessey's inaugural message of 1909 was a little unusual in its tone and innovations. Many of his terms were unexpected but all were received seri- ously and duly considered by the State Assembly. Many citizens were present to hear what the governor had to say. He had the courage to speak out his convictions on all questions of state government. However, neither the outgoing nor incoming governor seemed to have sufficient courage to point out and analyze and hold up for inspection, the serious difficulties that had involved several of the state institu- tions. He made many useful recommendations to the Legislature, among them being the following: (1) To carry into effect the pledges and platforms of the party having control of state affairs; (2) indeterminate sentence of convicts ; (3) restrictions of the powers and privileges of banks; (4) important amend- ments to the primary law; (5) enlargement of the office of immigration com- missioner; (6) a new road law ; (7) a revision of the insurance code; (8) severe penalties for white slavery; (9) a hospital for inebriates to be maintained by one-half of the license fees of the state; (10) two additional supreme judges.

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Many laws of South Dakota previous to 1909 were extremely deficient in several important particulars. They doubled taxation on property represented in mortgages from 1889 to 1909. Reforms had been repeatedly called for by many eminent men for years, but no change for the better had been made.

In 1909 the total state debt was $1,083,472.18. In order to meet the interest on this debt and to carry on current affairs of the state, it was necessary in 1909 to levy the full 4 mill tax permitted by the constitution. The total assessment of the state in 1909 was $321,070,665. In 1908 it was $283,696,268. There was thus a material increase from 1908 to 1909 due to the increased expenditures growing out of a larger and more expensive state government.

Governor Vessey's message in 1911 was regarded as a wise and worthy state document, somewhat brief, but was full of suggestions for thought on the part of the legislators. He pointed out where legislation was needed and lacking, and indicated how certain laws should be enforced. He stood pat on the subject of temperance and how to deal with the liquor traffic. He spoke particularly of the rapid strides made in education and declared that the educational institutions from the university down to the common schools were doing a great work for the state. He did not point out, however, in what respect any great progress or advancement had been made in the rural schools. His assertion was sweeping but was not applicable to the common school which had received very little atten- tion and had made less advance during the previous quarter of a century. He believed that to withdraw any part of the aid from the educational institutions would result in retreating the state in its highest development. He spoke of the great progress which the state had made in all its varied industries and its numer- ous departments. Education had advanced with unexpected strides and the population had increased even more than had been hoped. He noted particularly the wonderful improvement that had been made in agricultural methods during the previous two years. He asked the Legislature not to retard the state institu- tions by lack of appropriations, but at the same time recommended economy and business methods. He warmly praised the management of the state institu- tions and declared that they were never in better condition and were steadily advancing onward and upward. He suggested that part of the wages of convicts should be given to their families. He expressed the opinion that the primary law was a vital public measure and that it was still inadequate to meet the dispen- sation of justice to all factions in the political field. He thought that party interests should not be made to conflict on the ticket. He advised the Legislature to pass additional laws discouraging the sale and use of intoxicants; asked that a larger salary be paid the attorney-general; suggested better wages and enlarged powers for the state board of health; called for better roads; insisted on better farming along scientific lines; advised a liberal appropriation for the national guard; asked for an appropriation with which to build a suitable governor's mansion at the state capitol, and urged that a constitutional convention be held to revise the old organic law.

It was charged in 1911 and 1912 that Governor, Vessey during his second term continuously neglected his duties, absented himself from the capitol and devoted the most of his time to his private interests in other parts of the state.

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In March, 1912, he visited San Francisco and while there selected the site of the South Dakota Building on the grounds of the Panama-Pacific Exposition. With him was a party of prominent citizens and officials of South Dakota.

In January, 1913, Governor Vessey in his final message to the Legislature urged greater diligence and activity upon the Legislature at the commencement of the session. He pointed out that it was customary to give very little considera- tion to the bills until a week or two before adjournment, at which time it was too late to pay them proper and adequate consideration. As it was, he declared, the rush at the close of each session permitted many objectionable laws to evade scrutiny and study. This, he declared, occasioned later much unnecessary litiga- tion and expense in the courts and much annoyance and waste of time to rout out and eradicate undesirable legislation. He asked that far better care and much larger appropriations be given to the tuberculosis hospital at Custer. He recom- mended that criminals quite often should be given conditional sentences and be afforded an opportunity to assist their families. He recognized the importance of good roads and asked that additional laws for their maintenance be passed. He spoke particularly of the amendments necessary to the educational laws so that the people of the rural districts could have much better schools. He recom- mended the passage of a law empowering the governor to remove a minor official who refused or neglected to carry out his plain duty under the law, and stated that many complaints on this score came to his office. He also dwelt upon the subject of the transfer of various tracts of state land in the Black Hills.

Governor Byrne's message to the Legislature in January, 1913, was broad and sensible. While pointing out many errors and shortcomings in the management of state affairs, he praised the progress and management as a whole. He sharply criticised the federal courts, made important recommendations relative to good roads, dual boards of control and more efficient system of taxation, a so-called blue sky law and other measures. He favored giving the Richard's Primary Law a fair trial and thus agreed with the voters at the election in November. He recommended that saloons be limited in the ratio of not more than one to each 1,000 people. He gave his views also concerning prison labor, farmers' insti- tutes, inheritance tax, brewery ownership of saloons, official service and many other popular subjects of that day. He suggested greater economy in all depart- ments of the state government, and was pleased to announce that the management of the insane hospital at Yankton was excellent and that the institution was a model of its kind. He recommended that an additional hospital for the insane be built at or near Watertown owing to the great size and rapid growth of the institution and to its overcrowded condition at Yankton. There were nearly one thousand inmates in that asylum at this date. He recommended that another building for the feeble minded should be erected elsewhere and that the new institution should be called the Northern Hospital for the Insane. He noted that the deaf mute school was well conducted and in prosperous condition. This institution, he said, was growing rapidly and needed up to date improvements. The governor opposed prison contract labor because he believed that it interfered with the dignity and good repute of labor outside of that institution. He recom- mended that nearly all state educational institutions be provided with instruction in agricultural extension work. He noted that the appropriation of $1,000,000 by the International Harvester Company for special extension work in agriculture

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was a timely reproof to the various state governments and was a striking example of what the farmers really required. He urged a summer school at each of the state normal institutions and the establishment of an industrial and manual train- ing school at Aberdeen. He approved the able report of the state educational association, and agreed with the recommendation of the board of regents con- cerning the annual appropriations for the state institutions, but disagreed with the board that a special tax should be levied for the sum needed to carry on the institution. He said that this would only lead to worse confusion than before. The present arrangement of giving to each a stinted sum annually was awk- ward, cumbersome and unscientific. Under the present method the annual appropriations for the state institutions were inconsistent and unappreciated. He declared that the whole unwieldy and confusing plan of handling and managing the institutions of the state should be overhauled and regenerated. The state already had two general boards with more or less specific duties, namely: the board of regents and the board of charities and corrections, each of which con- sisted of five members. The duties of the board of regents differed much from those of the other board. The latter was permitted to purchase supplies, while the former were required to put new educational projects into execution. He suggested that the board of regents be reduced to three members, be made wholly non-partisan and non-political and be given control of both classes of institutions, educational, charitable and penal, and that the members of the board be paid sal- aries. The powers of the board of regents should be enlarged and made more definite, and they should be required to administer the educational policies and direct the instructors, etc.

The governor further said that the earnest efforts to secure satisfactory freight and passenger rates had not been successful. He said that the state should be and could be made secure in its rights and that the laws should prevent the railways from evading lawful rates for their own betterment as well as that of the state. In January, 1913, within thirteen minutes after the governor had signed the railway rate bill, the federal judge at Sioux Falls, who was sent a telegram from Pierre that the measure was a law, had signed the restraining order on the state officers not to put it into operation. The railways were doing all in their power to defeat the object of the bill, and this course of action had been in successful progress for many years, or ever since the original rate bill was passed by the Legislature in 1897. By January, 1913, no final decision of the new case, begun in 1909, had been reached. The 21/2 cent rate had been held up in the courts; various suits had been pending for from two to six years merely for the purpose of checking or preventing as long as possible the enforce- ment of the law. These actions were begun in the federal courts where the railroads wanted them, and thus the government was arrayed in apparent oppo- sition to the states. Governor Byrne insisted that the Legislature should proceed at once to remedy this mischievous and unwarrantable condition of affairs. He said, "The people do not so much complain of any specific decision by the courts as of the contemptuous way in which the railways trample on state laws and hinder the officials in the performance of their duty to enforce the laws when any decision or judgment on the merits of such laws has been ordered." He recom- mended that the railway commissioners be required, like other state officials, to

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live at the state capital, be paid salaries and be required to devote all their time to their duties.

He called attention, as every governor had done since 1889, to the well-known fact that assessment and taxation in South Dakota were both extremely defective and ineffective. He noted with emphasis that real estate and poor men bore the heaviest burden of taxation, while personal property and rich men managed in a large measure to escape the law. In this connection he remarked, "The con- stitutional provisions do not permit a perfectly scientific and equitable system of taxation." He therefore recommended the establishment of a permanent tax commission with ample powers to meet all emergencies, the commission to be wholly non-partisan and to consist of three members. He suggested that the inher- itance tax law should be amended because as it now stood it was practically useless, and insisted that it was the duty of the state authorities to carry into effect the Richard's Primary Law, which had recently been adopted by the vote of the people. He called attention to the importance of doing something in regard to the Corrupt Practice Act, referred to the evasions and abuses of the consitutional law authorizing the application of the initiative and referendum. and spoke particularly of how easily signatures to petitions could be secured by purchase. He said that it was commonly reported that in two instances in the past the referendum had been invoked against laws passed by the Legislature where money had been paid to secure signatures. He believed that corporations should be prohibted by law from using threats, either express or implied, to compel employes to vote in the interests of such organizations. He declared that the public printing was needlessly and excessively expensive, double what was fair and right, and that the work was no better. Wanton oversight and inat- tention by the authorities caused this additional expense.' He recommended the establishment of a state printing plant and bindery and a thorough revision of the laws concerning this subject, and revealed the fact that it was customary for printers to charge twice for matter set up only once for both House and Sen- ate. He asked that a bank deposit guaranty law be passed, that banks be required to give a guaranty for deposits ; that a blue sky law be enacted; that the construc- tion of good roads throughout the state be continued ; that farmers' institutes and short courses be encouraged and cared for by the Legislature and the state, and that the state fair receive adequate support from the Legislature.

He said that the 9 o'clock closing law had proved a striking success through- out the state, and recommended that a law be passed to allow one saloon to every one thousand population or less and one or more for each additional thousand population. He urged that a law should be passed preventing breweries and wholesalers from conducting retail liquor establishments; that a survey of the water resources of the state, west of the Missouri River, should be made with a view of impounding the water to be used in dry seasons or dry months, and that a liberal appropriation for the state militia be made.

At the session of the Legislature in 1915, Governor Byrne took a strong and inflexible position against certain contemplated appropriations which he believed should not be made. He said, "For the Legislature to attempt surreptitiously to defeat these actions now is inexcusable. It is your plain duty to defeat these appro- priations, and I urge it with all the vehemence in my power." He took the posi- tion that several former state treasurers had drawn from the treasury unlawfully,

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the interest on state funds which had accrued in banks where they had placed the money on deposit. The governor asked for an appropriation which he believed should be made for the prosecution of former state treasurers who had withheld this interest on state funds. But the Legislature did not see the subject in the same light that the governor did, and accordingly, notwithstanding the urgent language used by the governor, they took no action on the recommendation. They believed that they were competent to judge whether former treasurers had been slack or overreaching in their methods, and that they themselves, were competent to pass on such measures without special intimations or instructions from the state execu- tive. When the general appropriation bill came up for final consideration, early in March, 1915, Governor Byrne addressed the Legislature in a special and urgent message in which he insisted that vigorous action should be taken by the Legis- lature to push these interest suits against former state treasurers. The Legis- lature had a short time before adopted as a part of the legislative record a concurrent resolution providing that any amounts which had been lost by past state treasurers through bank failures should be allowed them as an offset against claims; that any extraordinary claims which had been forced against treasurers should also operate as an offset, and that the amount of interest which might be claimed by the state should be upon the basis of interest secured on state funds since the provision for the payment of interest to the state instead of to the treasurers had been adopted. This action had not met the approval of the gov- ernor, and hence was followed by his special message and his recommendation for the commencement of court action.

Early in March, 1915, Governor Byrne vetoed six items in the general appropriation bill, cutting out a total of $49,050 from the items covered by the Legislature. The special items which the governor vetoed were as follows: From the insurance department appropriation $17,000, on the ground that the law pro- vided that the office should exist on its receipts and appropriations; he declared this appropriation illegal; from the railroad commissioners' appropriation, $4,000; from the militia department association's appropriation, $18,000; from the clause carrying the Richard's Primary Law into effect, $8,000, which appropriation, the governor asserted, was not a valid charge against the state; from a deficiency appropriation of $1,050, on the ground that special departments must exist on their fees; from the "blue sky" provision on the ground that it was illegal; from the livestock fund for the Cottonwood Experiment Station, $1,000 appropriation, on the ground that such an experiment was not advisable at this station. At the same time the governor vetoed the bill providing that the tenure of office of county superintendents should run to June I, on the ground that unnecessary confusion would be caused thereby. He likewise vetoed the bill which attempted to change the existing public building inspection law permitting towns to have loose chairs in halls where motion pictures were shown, on the ground that such arrange- ment would make it unsafe for the public. Owing to his firm and independent attitude on these various appropriation bills the governor was subjected to severe castigation by the press and the speakers of the state. It was insisted that the constitution which said that "No money shall be paid out of the treasury except upon appropriation by law and on warrant drawn by the proper officer" left it optional for the governor and the Supreme Court to pay out without any formal- ity the money received in the miscellaneous or special fund without the interven-

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History of Dakota Territory, volume III, Part 22

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920 Publication date: 1915 Publisher: Chicago, Ill. : S.J. Clarke Publishing Company Number of Pages: 1146

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920
Publication date: 1915
Publisher: Chicago, Ill. : S.J. Clarke Publishing Company
Number of Pages: 1146